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CIRCULAR OF THE GENERAL OFFICE OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON ISSUES CONCERNING THE JOINT ANNUAL INSPECTION ON ENTERPRISES WITH FOREIGN INVESTMENT EXAMINED AND APPROVED BY THE RELEVANT MINISTRIES AND COMMISSIONS OF THE STATE COUNCIL

The General Office of the Ministry of Foreign Trade and Economic Cooperation

Circular of the General Office of the Ministry of Foreign Trade and Economic Cooperation on Issues Concerning the Joint Annual Inspection
on Enterprises with Foreign Investment Examined and Approved by the Relevant Ministries and Commissions of the State Council

WaiJingMaoZiZi [1997] No.5

March 6, 1997

Commissions (departments, bureaus) of foreign trade and economic cooperation in all provinces, autonomous regions, municipalities
directly under the Central Government and municipalities separately listed on the State plan, Shengyang, Changchun, Harbin, Xi’an,
Chengdu, Nanjing, Wuhan, and Guangzhou, Wuhan and Shenzhen Foreign Investment Offices:

In line with the Circular on Joint Annual Inspection on Enterprises with Foreign Investment (WaiJingMaoZiFa [1996] No.773) issued
by Seven Departments of the State Council, for the purpose of facilitating the joint annual inspection on enterprises with foreign
investment approved by the departments of the State Council and established in different places, after consulting the National Foreign
Investment Steering Committee and the relevant ministries and commissions of the State Council, the relevant issues are hereby circularized
as follows:

I.

The joint annual inspection shall cover all enterprises with foreign investment examined and approved by the ministries and commissions
of the State Council, institutions directly under the State Council ,state bureaus under the administration of relevant ministries
and commissions of the State Council, China Aviation Industry Corporation, China Aerospace Industry Corporation, China Shipbuilding
Industry Corporation, China Weapon Industry Corporation, China Nuclear Industry Corporation, China Petrol-Chemical Industry Corporation,
China Non-ferrous Metal Industry Corporation and China General Logistics Department based on the company location principle. In
the joint annual inspection, the appropriate authority in charge of foreign investment examination and approval covering the area
where the enterprise locates inspects items that should be done by the foreign trade department.

II.

Please notify the enterprises concerned of the above requirements, inform other departments in the joint annual inspection and actively
coordinate with them to make the join annual inspection successful.



 
The General Office of the Ministry of Foreign Trade and Economic Cooperation
1997-03-06

 






PROVISIONAL REGULATIONS ON MANAGEMENT OF OPEN MARKET BUSINESS AND PRIMARY DEALERS

Provisional Regulations on Management of Open Market Business and Primary Dealers

     (Effective Date 1997.04.12)

CHAPTER I GENERAL PROVISIONS

CHAPTER II TRADING IN SECURITIES

CHAPTER III QUALIFICATIONS OF PRIMARY DEALERS AND VERIFICATIONS OF

THESE QUALIFICATIONS

CHAPTER IV RIGHTS AND OBLIGATIONS OF PRIMARY DEALERS

CHAPTER V ALTERATION AND TERMINATION OF THE QUALIFICATION OF

PRIMARY DEALERS

CHAPTER VI RULES ON PUNISHMENT

CHAPTER VII SUPPLEMENTARY ARTICLES

   Article 1 These Regulations have been formulated with a view to ensuring the smooth development of the open market business, safeguarding
the legitimate rights and interests of dealing parties, and promoting the steady development of China’s monetary market.

   Article 2 The open market business referred to in these Regulations means the activity of open buying and selling securities conducted
by the People’s Bank of China in order to attain the objective for its monetary policy.

   Article 3 Primary dealers in the open market business (hereinafter referred to as primary dealers) referred to in these Regulations
mean commercial banks, securities companies, and trust and investment companies which have been examined and designated
by the People’s Bank of China, and which are qualified for doing securities deals directly with the People’s Bank of China.

   Article 4 The People’s Bank of China shall take charge of examining and approving matters concerning the determination of, change
in or cancellation of the qualification of primary dealers.

   Article 5 The Open Market Business Operational Office (hereinafter referred to as the Operational Office) of the People’s Bank of
China shall take charge of the routine work of the open market business.

   Article 6 The categories of securities for trading refer to policy- oriented financial securities, fund-raising securities of the central
bank, national debts and other kinds of securities designated by the People’s Bank of China.

   Article 7 The categories of securities for trading shall include purchase, sale and counterpurchase.

   Article 8 In trading securities with the People’s Bank of China, primary dealers shall sign relevant agreements with the latter.

   Article 9 There shall be seven different time limits for counterpurchase i.e., 7 days, 14 days, 21 days, 28 days, 2 months, 3 months
and 4 months.

   Article 10 Securities trading shall normally be conducted by inviting bids, including bidding in terms of the amount and bidding in terms
of interest rates (or price bidding). Specific principles on winning bids shall be formulated by the Operational Office.

   Article 11 The liquidation of funds for securities trading shall be handled in accordance with the procedures for accounting examination
and calculation formulated by the relevant departments of the People’s Bank of China.

   Article 12 Securities registration, trust and transaction shall all be conducted with the Central National Debt Registration Settlement Co
Ltd and shall be handled in accordance with the regulations formulated by the company.

CHAPTER III QUALIFICATIONS OF PRIMARY DEALERS AND VERIFICATIONS OF THESE

   Article 13 Those applying to become primary dealers shall meet the following qualifications:

1. Commercial banks, securities companies and trust and investment companies which have been established as an independent
legal person with approval from the People’s Bank of China.

2. Abiding by state laws and decrees concerning economic affairs and finance, as well as provisions formulated by the
People’s Bank of China regarding the management of the ratio of assets to debts.

3. The registered capital of an urban cooperative bank, a securities company and a trust and investment company shall not be
less than 200 million yuan (including the amount of Renminbi converted from their foreign exchange capital).

4. The volume of securities trading by a securities company and a trust and investment company shall constitute a considerable
market share, have a relatively large agency business and qualified professionals, operate assets of fairly high quality,
be capable of making big profits, and have a perfect international managerial mechanism.

5. Having the ability and being willing to perform various obligations as specified by Article 4 of these Regulations; and

6. Other conditions prescribed by the People’s Bank of China.

   Article 14 Institutions that have been qualified as “independent primary dealers of national debts of the People’s Republic of China”
shall enjoy priority in becoming primary dealers.

   Article 15 Any agency that meets the conditions as listed in Article 13 of these Regulations may file an application for becoming a
primary dealer to the People’s Bank of China, send in an application form for the qualification for primary dealers in the
open market business, and submit the following materials:

1. A brief introduction of itself.

2. Business license (duplicate).

3. Duplicates of year-end balance sheets that have been audited by certified public accountant firm.

4. The specific department that will participate in the open market business and the composition of its staff; and

5. Other relevant data whose submission is required by the People’s Bank of China.

   Article 16 Any agency that has become a primary dealer following examination and approval shall be issued a “certificate of qualification
for primary dealers in the open market business” by the People’s Bank of China, with its name being made public.

CHAPTER IV RIGHTS AND OBLIGATIONS OF PRIMARY DEALERS

   Article 17 Primary dealers shall enjoy the following rights:

1. Direct securities trading with the People’s Bank of China.

2. Priority in obtaining information on the open market business released by the People’s Bank of China, as well as
relevant data provided by the Operational Office.

3. Conveniences and services provided by the People’s Bank of China and relevant securities registration and settlement departments
in such areas as the opening of bank accounts, fund liquidation, securities trust and settlement, and technical support.

4. Taking part in activities including joint meetings of primary dealers held regularly by the People’s Bank of China, exchanges,
symposiums and training of staff.

5. Participation in discussion of rules and systems of the People’s Bank of China concerning the open market business.

6. Mutual trading of policy financial bonds and fund accommodation funds of the central bank in line with relevant stipulations
of the People’s Bank of China.

7. Other rights granted by law.

   Article 18 Primary dealers shall have the following obligations:

1. Active participation in securities trading. Those that do not participate in trading or bidding or offer quotations
in a trading day as stipulated by the Operational Office shall promptly explain its reasons and relevant background.

2. Fulfilment of the trading tasks assigned by the People’s Bank of China in times of special needs for macro-economic controls
so as to timely pass around intensions of monetary policies. The People’s Bank of China shall give due consideration to the
interests of primary dealers when assigning mandatory trading tasks.

3. Conduction of honest trading with the People’s Bank of China and offering of reasonable market quotations.

4. Supply of information concerning the fund position, the possession of securities and trading on the secondary securities market,
as well as other relevant data.

5. Regular supply of market information and market analytical data to the Operational Office, and timely report of major incidents.
And

6. Strict performance of other obligations as specified in relevant provisions on the management of the open market business.

CHAPTER V ALTERATION AND TERMINATION OF THE QUALIFICATION OF PRIMARY

   Article 19 The People’s Bank of China shall make annual examination of the qualification of primary dealers. Such examination shall
mainly cover the following aspects:

1. Participation in the open market business.

2. Performance in the securities business in a year.

3. Changes in assets and debts as well as losses and profits in a year.

4. Observation of stipulations in these Regulations and other regulations on the management of the open market business;
and

5. Other aspects that call for examination.

The People’s Bank of China shall announce the result of these examinations.

   Article 20 Primary dealers that change their names or merge with others shall go through qualification alteration procedures with the People’s
Bank of China.

   Article 21 Those that voluntarily give up their qualification for primary dealers shall go through corresponding procedures with
the People’s Bank of China and shall not, within two years, apply to become primary dealers again.

   Article 22 Those that fail to fulfil the trading tasks assigned by the People’s Bank of China shall have their qualification as primary dealers
suspended for one year.

   Article 23 Those that involve in serious cases of collaborate manipulating of prices in securities trading shall have
their qualifications as primary dealers revoked by the the People’s Bank of China and banned from applying for becoming primary
dealers once again for two years.

   Article 24 Those that commit other acts in violation of laws and regulations shall be dealt with in accordance with relevant laws
and regulations. Moreover, the People’s Bank of China shall, depending on the seriousness of their cases, suspend their qualification
for primary dealers for one year or revoke their qualification for primary dealers.

   Article 25 The People’s Bank of China shall publish the names of those primary dealers whose qualifications have been suspended or cancelled.

   Article 26 Those whose qualification for primary dealers have been suspended or revoked shall cease to enjoy various rights granted
by relevant provisions on the open market business, but shall continue to perform the obligations that they have not performed.

   Article 27 The qualifications and corresponding rights of those primary dealers whose business licenses have been revoked
by departments in charge of them shall terminate automatically.

   Article 28 Those failing to submitted materials to higher authorities in accordance with provisions or providing fraudulent materials shall
be given a warning.

   Article 29 Those that fail to strike deals or offer quotations for three successive trading days in a year without reporting to
higher authorities shall be criticized in the form of a circular.

   Article 30 Those that violate other provisions concerning the open market business shall be dealt with in accordance with relevant
provisions. Moreover, the People’s Bank of China shall, depending on the seriousness of their cases, impose upon them fines
ranging from 5,000 yuan to 30,000 yuan.

CHAPTER VII SUPPLEMENTARY ARTICLES

   Article 31 The People’s Bank of China shall interpret and revise these Regulations.

   Article 32 These Regulations shall take force on the date of promulgation.

    





CIRCULAR OF THE STATE COUNCIL CONCERNING MEASURES FOR TAX EXEMPTION,OFFSET AND REFUND OF EXPORT GOODS MANAGED BY PRODUCTION ENTERPRISES OR AGENCIES BY AGREEMENT

Category  CUSTOMS Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-02-25 Effective Date  1997-02-25  


Circular of the State Council Concerning Measures for Tax “Exemption,Offset and Refund” of Export Goods Managed by Production Enterprises
or Agencies by Agreement



(February 25, 1997)

    To further invigorate the state-owned large- and medium-size enterprises,
expand foreign trade and export and push ahead the agency system, the State
Council hereby decides on the measures for tax “exemption, offset and refund”
of export goods managed by production enterprises authorized to engage in
import-export operations or entrusted to foreign trade enterprises as
agencies. The relevant questions are notified as follows:

    1.Range for tax “exemption, offset and refund”. Export goods managed by
all categories of production enterprises with import-export operational rights
or entrusted to foreign trade enterprises as agencies, unless otherwise
provided for, shall all implement the measures for tax “exemption, offset
and refund”.

    Implementation of measures for tax exemption for export goods by
enterprises with foreign business investment the establishment of which was
approved before December 31, 1993 shall continue up to December 31, 1998.
Measures for tax “exemption, offset and refund” shall likewise be carried
out on expiry.

    2.”Exemption” of tax in measures for tax “exemption, offset and refund”
means goods the export of which managed by production enterprises or entrusted
to foreign trade enterprises as agencies shall be exempted from the valued
added tax in the marketing link of the production enterprises;”offset” of tax means goods the export of which managed by production
enterprises or
entrusted to foreign trade enterprises as agencies shall be exempted from
or refunded of the tax payment already made for raw materials, parts and
components offsetting the payable tax payment of goods marketed domestically;
“refund” of tax means goods the export of which managed by production
enterprises or entrusted to foreign trade enterprises as agencies account
for more than 50% of the total sales of goods of the enterprises in the
corresponding period, the amount of tax which should be offset is greater
than the payable taxation and has not been completely offset in one
quarter, the portion of tax amount which has not been completely offset
shall be refunded upon approval by the competent tax office for export
refund.

    3.In carrying out measures for tax “exemption, offset and refund”,
the refund rate prescribed in the the Reduction of the Refund Rate for Export Goods>(Guo Fa[1995] No.29)
shall continue to be implemented, and the amount of tax “exemption, offset
and refund” shall be calculated on the basis of F.O.B. price of the export
goods.

    4.These Measures enter into force as of January 1, 1997. Specific
measures for implementation shall be formulated by the Ministry of Finance and
the State Taxation Administration.

    Measures for tax “exemption, offset and refund” for goods the export of which managed by production enterprises
with import-export operational rights
or entrusted to foreign trade enterprises as agencies constitue an important
reform of export refund control measures. People’s Governments at all
levels should proceed from the overall interest of the country, strengthen
leadership and actively support this reform. All departments concerned should
closely cooperate with one another, solve the questions which emerge in the
process of implementation in a timely manner, and in the meantime earnestly
sum up experiences so as to create conditions for the gradual expansion of the scope of implementation of the measures for tax “exemption,
offset and
refund” and the further perfection of the export refund mechanism.





REGULATIONS FOR THE PROTECTION OF THE TRADITIONAL ARTS AND HANDICRAFTS

Category  INTELLECTUAL PROPERTY RIGHT Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-05-20 Effective Date  1997-05-20  


Regulations for the Protection of the Traditional Arts and Handicrafts



(Promulgated by Decree No. 217 of the State Council of the People’s

Republic of China on May 20, 1997)

    Article 1  These Regulations are formulated with a view to protecting
the traditional arts and handicrafts and promoting the prosperity and
development of the cause of the traditional arts and handicrafts.

    Article 2  The traditional arts and handicrafts referred to in these
Regulations mean varieties and techniques of handicrafts having a long
history of over one hundred years with superb craftsmanship handed down
from generations with complete technical processes, made with natural raw
materials with distinct national styles and local characteristics and
enjoying a good reputation at home and abroad.

    Article 3  The State implements the policy of protection, development
and improvement in respect of the varieties and techniques of the traditional
arts and handicrafts.

    The local People’s Governments at all levels should step up leadership
in the protection of the traditional arts and handicrafts and adopt effective
measures to support and promote the prosperity and development of the cause
of the traditional arts and handicrafts of the respective localities.

    Article 4  The department in charge of the protection of the traditional
arts and handicrafts under the State Council shall be responsible for the
protection of the traditional arts and handicrafts throughout the country.

    Article 5  The State practises the system of affirmation in respect of
the varieties and techniques of the traditional arts and handicrafts. The
varieties and techniques of the traditional arts and handicrafts in line
with the conditions stipulated in Article 2 of these Regulations shall be
affirmed as the varieties and techniques of the traditional arts and
handicrafts pursuant to the provisions of these Regulations.

    Article 6  The varieties and techniques of the traditional arts and
handicrafts shall be evaluated and examined by the evaluation and examination
board composed of specialists employed by the department in charge of the
protection of the traditional arts and handicrafts under the State Council;
the department in charge of the protection of the traditional arts and
handicrafts under the State Council shall grant affirmation and make public
announcements on the basis of the evaluation and examination conclusions of
the evaluation and examination board.

    Article 7  Enterprises and individuals engaging in the making of products
of the traditional arts and handicrafts may submit applications for the
protection of the varieties and techniques to the departments in charge of
the protection of the traditional arts and handicrafts of the local People’s
Governments at the county level, and recommendations made to the department
in charge of the protection of the traditional arts and handicrafts under
the State Council by the departments in charge of the protection of the
traditional arts and handicrafts of the People’s Governments of the provinces,
autonomous regions and municipalities directly under the Central Government
upon examination and verification.

    Article 8  Enterprises and individuals applying for the affirmation of
the varieties and techniques of the traditional arts and handicrafts should,
in compliance with the provisions of the department in charge of the
protection of the traditional arts and handicrafts under the State Council,
present complete, detailed and truthful information.

    Article 9  The State adopts the following protective measures in the
affirmation of the techniques of the traditional arts and handicrafts:

    (1)gathering, compiling and setting up of archives;

    (2)collection and storing up of excellent representative works;

    (3)determination of the classification of technical secrets and
protection of the secrets in accordance with law; and

    (4)subsidizing research and training of qualified personnel.

    Article 10  Outstanding works among varieties of the traditional arts
and handicrafts shall, upon evaluation and examination by the evaluation and
examination board composed of specialists employed by the department in
charge of the protection of the traditional arts and handicrafts under the
State Council, be named China art and handicraft treasures(hereinafter
referred to as treasures) by the department in charge of the protection
of the traditional arts and handicrafts under the State Council.

    Article 11  The State adopts the following protective measures in respect
of the treasures:

    (1)The treasures collected and purchased by the State shall be stored
by the China Arts and Handicrafts Gallery or the arts and handicrafts
galleries and museums of the provinces, autonomous regions and municipalities
directly under the Central Government.

    (2)Export of the treasures shall be prohibited. Exhibition of the
treasures abroad must be subjected to the approval of the department in
charge of the protection of the traditional arts and handicrafts under the
State Council in conjunction with the departments concerned under the
State Council.

    Article 12  Individuals meeting the following conditions and engaging
in the making of products of the traditional arts and handicrafts for a
long duration may, upon evaluation and examination of the evaluation and
examination board, be conferred the post_title of Masters of Chinese Arts and
Handicrafts by the department in charge of the protection of the traditional
arts and handicrafts under the State Council:

    (1)those with outstanding achievements and enjoying a good reputation
at home and abroad; and

    (2)those with superb craftsmanship and forming their own schools.

    Article 13   The People’s Governments at all levels and departments and
units concerned should care for and support the creations of Masters of
Arts and Handicrafts, and create good working environment and conditions
for them in accordance with the following provisions:

    (1)The unit wherein the Master of Arts and Handicrafts is employed
sets up a Master’s studio for him or her;

    (2)A Master of Arts and Handicrafts is enpost_titled to engraving his or her
name on his or her works;

    (3)To create facilities for Masters of Arts and Handicrafts to take on
apprentices and pass on the techniques; and

    (4)The retirement age of Masters of Arts and Handicrafts may be
appropriately extended in accordance with the relevant provisions of
the State.

    Article 14  Overall planning and appropriate arrangements should be
worked out by the departments concerned of the People’s Governments above
the county level in respect of natural raw materials and materials
needed especially for the making of the varieties of the traditional
arts and handicrafts.

    Article 15  The State steps up protection in accordance with law and
strictly prohibits indiscriminate mining and digging in respect of such
rare minerals as gems and jades needed especially for the making of
varieties of the traditional arts and handicrafts.

    Article 16  The State encourages local People’s Governments at all levels
to take necessary measures to tap into and salvage techiniques of the
traditional arts and handicrafts, collect masterpieces of the traditional
arts and handicrafts, train personnel in techniques of the traditional arts
and handicrafts, and subsidize scientific research in the traditional arts
and handicrafts in the light of the actual conditions of the localities.

    Article 17  For enterprises engaging in the making of varieties of arts
and handicrafts with low economic benefits but high artistic values and
facing the techniques being lost, the People’s Government at all levels
should take necessary measures to render support and assistance.

    Article 18  Enterprises engaging in the making of products of the
traditional arts and handicrafts should establish and perfect the protection
or security system for the techniques of the traditional arts and handicrafts
and strengthen in real earnest the management of the techniques of the
traditional arts and handicrafts.

    Individuals engaging in the making of traditional arts and handicrafts
products should abide by the provisions of the relevant laws and regulations
of the State and must not divulge any technical secret and other commercial
secret known in the process of making the traditional arts and handicrafts
products.

    Article 19  For units and individuals making outstanding contributions
to the cause of inheriting, protecting and developing the traditional arts
and handicrafts, the State shall give rewards.

    Article 20  Whoever in violation of the provisions of these Regulations
having committed any of the following acts shall be given administrative
punishment or administrative penalty by the department concerned pursuant
to the provisions of the relevant laws and regulations; for those which
constitute a criminal offence, criminal liabilities shall be investigated
in accordance with law:

    (1)burglary or disclosure of technical secrets of the traditional arts
and handicrafts;

    (2)illegal mining of rare mineral resources for the making of traditional
arts and handicrafts or pirating and selling of rare mineral products for the
making of traditional arts and handicrafts; and

    (3)smuggling of art treasures out of the country.

    Whoever making and selling fake or imitated works of the traditional arts
and crafts with names of Masters of China Arts and Handicrafts affixed
thereon should bear civil liabilities in accordance with law; the departments
concerned may, in accordance with the provisions of the relevant laws and
regulations, impose administrative penalties.

    Article 21  These Regulations come into force as of the date of
promulgation.



REGULATIONS ON THE MONETARY POLICY COMMISSION OF THE PEOPLE’S BANK OF CHINA

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


Regulations on the Monetary Policy Commission of the People’s Bank of  China

Chapter I  General Provisions
Chapter II  Organization
Chapter III  Rights and Obligations of Members
Chapter IV  Working Procedures
Chapter V  Supplementary Provision

(Promulgated by Decree No. 215 of the State Council of the People’s

Republic of China on April 15, 1997)
Chapter I  General Provisions

    Article 1  These Regulations are formulated in pursuance of the
provisions of the Law on the People’s Bank of China for the purpose
of being instrumental to the correct formulation of the state monetary
policy.

    Article 2  The Monetary Policy Commission is the advisory and discussion
body of the People’s Bank of China in the formulation of monetary policy.

    The Monetary Policy Commission shall be formed pursuant to these
Regulations.

    Article 3  The functions and responsibilities of the Monetary Policy
Commission are to discuss the following monetary policy matters and put
forth proposals on the basis of comprehensive analysis of the macroeconomic
situation in accordance with the macroeconomic regulatory and control goals
of the State:

    (1) formulation and adjustment of monetary policy;

    (2) monetary policy control goals within a specified period;

    (3) employment of monetary policy tools;

    (4) important measures concerning monetary policy; and

    (5) coordination between monetary policy and other macroeconomic policies.

    Article 4  The Monetary Policy Commission carries out its functions and
responsibilities through its plenary meeting.
Chapter II  Organization

    Article 5  The Monetary Policy Commission shall be composed of the
personnel of the following units:

    Governor of the People’s Bank of China;

    Two Deputy Governors of the People’s Bank of China;

    One Vice President of the State Planning Commission;

    One Vice President of the State Economic and Trade Commission;

    One Vice Minister of the Ministry of Finance;

    Director General of the State Administration of Foreign Exchange Control;

    President of China Securities Supervisory and Control Commission;

    Two Governors of commercial banks of sole state proprietorship; and

    One financial specialist.

    Adjustment in the units of which the Monetary Policy Commission is
composed shall be determined by the State Council.

    Article 6  The Governor of the People’s Bank of China, Director General
of the State Administration of Foreign Exchange Control and President of China
Securities Supervisory and Control Commission are members with automatic
qualification of the Monetary Policy Commission.

    Candidacy for other members of the Monetary Policy Commission shall be
nominated by either the People’s Bank of China or the People’s Bank of China
in consultation with the departments concerned and submitted to the State
Council for appointment.

    Article 7  The Monetary Policy Commission shall have one President and
one Vice President. The Governor of the People’s Bank of China shall be the
President; and the Vice President shall be nominated by the President.

    Article 8  Members of the Monetary Policy Commission should have the
following qualifications:

    (1) He or she should normally be under 65 years of age with citizenship
of the People’s Republic of China;

    (2) He or she should be upright and honest in performing official duties
with no law-breaking and discipline-breaking record; and

    (3) He or she should have expertise in such areas as macro-economy,
monetary matters and banking and practical experiences, and be conversant
with relevant laws, regulations and policies.

    Article 9  The financial specialist on the Monetary Policy Commission
should, in addition to meeting the qualifications prescribed in Article 8 of
these Regulations, have the following qualifications:

    (1) He or she should have senior special technical post_title with more than
ten years in financial research; and

    (2) He or she should be a non-public servant of the State and have no
position in any profit-making institution.

    Article 10  The term of office of membership of the governors of the
commercial banks with sole state proprietorship and the financial specialist
on the Monetary Policy Commission shall be two years.

    Article 11  Any member on the Monetary Policy Commission having any of
the following circumstances, the People’s Bank of China shall submit a
report to the State Council for the relief of the said member from the
membership of the Monetary Policy Commission:

    (1) He or she who submits a written application for resignation;

    (2) He or she who is no longer capable of representing the unit concerned
to serve as a member of the Monetary Policy Commission due to change in
position during the term of office; and

    (3) He or she who fails to fulfil obligations of a member or is incapable
of carrying out the duties as a member owing to various reasons.

    Article 12  Change in the membership of the Monetary Policy Commission
shall be handled in accordance with the provisions of Article 6 of these
Regulations.

    Article 13  The Monetary Policy Commission shall set up a secretariat
as the standing office of the Monetary Policy Commission.
Chapter III  Rights and Obligations of Members

    Article 14  Members of the Monetary Policy Commission have equal rights
and obligations.

    Article 15  Members of the Monetary Policy Commission enjoy the
following rights in the fulfillment of their duties and responsibilities:

    (1) to get to know the situation in financial and monetary policies;

    (2) to express views on questions discussed in the Monetary Policy
Commission; and

    (3) to put forward proposals to the Monetary Policy Commission on
monetary policy questions and have the right to vote.

    Article 16  Members of the Monetary Policy Commission should be
present at the meetings of the Monetary Policy Commission and put forth
suggestions and proposals relating to monetary policy matters.

    In case of inability of a member to be present at the meeting owing to
extraordinary circumstances, he or she should delegate a relevant person
who is conversant with the situation as his or her representative to take
part in the meeting with his or her written remarks, and the representative
has no right to vote.

    Article 17  Members of the Monetary Policy Commission should scrupulously
abide by their duties and not abuse their powers and engage in malpractices
for selfish purposes.

    Article 18  Members of the Monetary Policy Commission should keep state
secrets and commercial secrets, comply with the working rules of the
Monetary Policy Commission and shall not divulge monetary policy and
related information in contravention of provisions.

    Any member of the Monetary Policy Commission divulging state secrets and
commercial secrets in contravention of provisions shall be removed from the
membership of the Monetary Policy Commission and his or her legal
responsibilities investigated in accordance with law.

    Article 19  Any member of the Monetary Policy Commission shall not
openly object to the monetary policy formulated according to legal procedures
during his or her term of office and within one year after leaving the post.
Chapter IV  Working Procedures

    Article 20  The Monetary Policy Commission shall practise the system of
regular meetings.

    An ad hoc meeting can be held on the proposal of the President of the
Monetary Policy Commission or the joint proposal of over one third of the
members.

    Article 21  The secretariat of the Monetary Policy Commission should,
ten days before the convocation of the regular meeting of the Monetary Policy
Commission, deliver the topics of the meeting and relevant materials to all
the members; and during the meeting provide latest statistics and relevant
technical analyses to all the members.

    Article 22  The meeting of the Monetary Policy Commission can only be
held when there are over two thirds of the members present.

    The meeting of the Monetary Policy Commission shall be presided over by
the President. The meeting shall be presided over by the Vice President
on behalf of the President in case of the inability of the President to
carry out his or her duties due to unforeseen reasons.

    Article 23  Various views expressed at the meeting of the Monetary
Policy Commission should be recorded in the form of summary of minutes.

    A monetary policy motion put forward by members of the Monetary Policy
Commission shall, when passed by vote by over two thirds of the members
present at the meeting, form a proposal of the Monetary Policy Commission.

    Article 24  The People’s Bank of China should, while submitting its
report on proposal for decision of yearly money supply, interest rates,
exchange rates or other important monetary policy matters to the State
Council for approval, enclose the proposal of the Monetary Policy Commission
or the summary of minutes of its meeting as appendices.

    The People’s Bank of China should, while submitting its report on the
decision of other related matters concerning the monetary policy to the
State Council for the record, also submit the proposal of the Monetary
Policy Commission or the summary of minutes of its meeting for the record.

    Article 25  Internal working rules for the Monetary Policy Commission
shall be worked out by the Monetary Policy Commission.
Chapter V  Supplementary Provision

    Article 26  These Regulations shall come into force as of the date of
promulgation.





SUPPLEMENTARY PROVISIONS TO SEVERAL PROVISIONS CONCERNING THE INVESTMENT MADE BY THE VARIOUS PARTIES TO CHINESE-FOREIGN EQUITY JOINT VENTURES

Category  FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-09-29 Effective Date  1997-09-29  


Supplementary Provisions to Several Provisions Concerning the Investment Made by the Various Parties to Chinese-foreign Equity Joint
Ventures



(Approved by the State Council on September 2, 1997 and promulgated by

Decree No. 2 of the Ministry of Foreign Trade and Economic Cooperation and the
State Administration for Industry and Commerce on September 29, 1997)

    In order to strengthen the administration of investment contributions made
by investors of foreign investment enterprises (including those foreign
investment enterprises established by purchasing assets or stocks of internal
enterprises), these Supplementary Provisions are hereby formulated as follows
to the Several Provisions Concerning the Investment Made by the Various
Parties to Chinese-foreign Equity Joint Ventures.

    1. Any foreign investor who establishes a foreign investment enterprise by
purchasing assets or stocks of an internal enterprise(s) shall pay fully
purchasing charges within three months as of the date the business licence of
the said foreign investment enterprise is issued. If extension of payment is
required due to special circumstances, after approved by the examining and
approving authorities, more than 60% of the total amount of the purchasing
charges shall be paid within six months as of the date the business licence is
issued, and within one year the total amount shall be paid up; the
distribution of profit shall be made in proportion as the actual payment of
investment contributions. Unless the total amount of the purchasing charges
has been paid up, any holding investor may not have the enterprise’s
decision-making power, nor he may in the form of a combination statement
incorporate rights and interests or assets of the said enterprise into his
accounting statement.

    2. Investors in a Chinese-foreign equity joint venture must simultaneously
pay up their respective investment contributions according to the percentage
and deadline stipulated in the contract. If any of them cannot do so, the case
shall be reported to the original examining and approving authorities for
approval and the distribution of profit be made according to the percentage of
the actual payment of his investment contributions. With regard to the holding
(including relatively holding) investor in a Chinese-foreign equity joint
venture, before the actual payment of his investment contributions attains his
total amount of his subscribed payment, he shall not obtain the enterprise’s
decision-making power, nor he can in the form of a combination statement
incorporate rights and interests or assets of the said enterprise into his
accounting statement.

    3. Chinese-foreign contractual joint ventures and solely foreign invested
enterprises shall be handled with reference with these Provisions.





MEASURES FOR THE IMPLEMENTATION OF ADMINISTRATION OF NEGOTIABLE INSTRUMENTS

Category  BANKING Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-08-21 Effective Date  1997-10-01  


Measures for the Implementation of Administration of Negotiable Instruments



(Approved by the State Council on June 23, 1997  Promulgated by the

People’s Bank of China on August 21, 1997)

    Article 1  These Measures are formulated in pursuance of the provisions
of (hereinafter referred to as The Law of Negotiable Instruments) with a view
to enhancing the administration of negotiable instruments and maintaining
financial order.

    Article 2  These Measures shall be applicable in the administration
negotiable instruments within the territory of the People’s Republic of China.

    Article 3  The People’s Bank of China is the department of administration
of negotiable instruments.

    Administration of negotiable instruments should abide by the provisions
of The Law of Negotiable Instruments and these Measures as well as relevant
laws and regulations and must not harm the legitimate rights and interests
of parties to a bill.

    Article 4  Parties to a bill should engage in bill activities, exercise
bill rights and fulfil bill obligations in accordance with law.

    Article 5  Parties to a bill should use bills on uniform format
prescribed by the People’s Bank of China.

    Article 6  The makers of bills of bank exchange shall be banks handling
the business of bills of bank exchange approved by the People’s Bank of China.

    Article 7  The makers of bankers’ orders shall be banks handling the
business of bankers’ orders approved by the People’s Bank of China.

    Article 8  The makers of commercial bills of exchange shall be enterprises
and other organizations other than the banks.

    The makers of commercial bills of exchange applying to banks for the
handling of acceptance of bills of exchange must meet the following
qualifications:

    (1)opening of deposit account in banks of acceptance;

    (2)enjoying good credibility and having reliable source of capital for
the payment of the amount of the bills of exchange.

    Article 9  Accepting banks of commercial bills of exchange must have
the following qualifications:

    (1)having true relations of authority to pay with the makers;

    (2)having reliable capital for the payment of the amount of the bills
of exchange.

    Article 10  The bearers of commercial bills of exchange applying to
banks for discount on check must have the following qualifications:

    (1)opening of deposit account in banks;

    (2)having true trading relations and creditor-debtor relations with the
makers and prior endorsers.

    Article 11  The makers of checks shall be enterprises, other
organizations and individuals with opening of check deposit accounts in banks
handling check deposit business, urban credit cooperatives and rural credit
cooperatives approved by the People’s Bank of China.

    Article 12  The “guarantor” referred to in the Law of Negotiable
Instruments means the legal person, other organizations or individuals
with repayment ability of debts in negotiable instruments.

    Branches and functional departments of state organs, non-profit
institutions, societies and corporate enterprises must not serve as
guarantors; unless it is otherwise provided for by law.

    Article 13  The signature and seal of the maker of the bank money order
and the signature and seal of the bank accepting commercial bills of exchange
shall be the special-purpose seal of the bank plus the signature or the
affixed seal of its legal representative or his or her authorized agent.

    The signature and seal of the maker on bank check shall be the special-
purpose seal of the bank for bank check plus the signature or the affixed
seal of its legal representative or his or her authorized agent.

    Special-purpose seals for bank money order and special-purpose seals for
bank check must be subjected to the approval of the People’s Bank of China.

    Article 14  The signature and seal of the maker on commercial bills of exchange shall be the special-purpose financial seal of the
unit or official
seal plus the signature or the affixed seal of its legal representative or
his or her authorized agent.

    Article 15  The signature and seal of the maker on the checks shall be
the special-purpose financial seal or official seal plus the signature or
the affixed seal of its legal representative or his or her authorized agent
which are in line with the signature and seal left in advance by the unit
at the bank when the maker is the unit; they shall be the signature or the
affixed seal in line with those left in advance by the said individual at
the bank when the maker is an individual.

    Article 16  The “proper name” referred to in the Law of Negotiable
Instruments means the name on the identity card in keeping with laws,
regulations as well as the relevant provisions of the State.

    Article 17  The bills shall be null and void when the signature and
seal of the maker on the bills are not in line with the provisions of the
Law of Negotiable Instruments and these Measures; their signatures and seals
shall be null and void when the signatures and seals of the endorser,
acceptor and guarantor on the bills are not in line with the provisions
of the Law of Negotiable Instruments and these Measures, however, they
shall not affect the efficacy of other signatures and seals on the bills.

    Article 18  The “paying agent” referred to in the Law of Negotiable
Instruments means the bank, urban credit cooperative and rural credit
cooperative which makes the payment of the amount on the bills as entrusted
by the payer.

    Article 19  The loser of bills can, pursuant to the provisions of the
Law of Negotiable Instruments, report to the payer or the paying agent in
time the loss of checks for stoppage of payment for loss of bills of exchange which can be reported for stoppage of payment as provided
for
by the Law of Negotiable Instruments.

    The loser of bills should fill in the report-loss-and-stop-payment note,
affix his or her signature and seal when notifying the payer or the paying
agent of the loss of the bills for stoppage of payment. The report-loss-
and-stop-payment note should carry the following particulars:

    (1)time and cause(s) of the loss of bills;

    (2)types, numbers and amount of bills, date(s) of making, date(s) of payment, name of the payer and name
of the payee; and

    (3)name of the person reporting the loss and requesting stoppage of payment, business site or residence as
well as ways of contact.

    Article 20  The payer or paying agent should immediately suspend
payment on receipt of the report-loss-and-stop-payment note. Within twelve
days starting from the date of the receipt of the report-loss-and-stop-
payment note when the payer or paying agent does not receive the stop-payment
note from the people’s court, the report-loss-and-stop-payment note shall be
null and void as of the thirteenth day.

    Article 21  The payer or paying agent who has already made payment to
the bearer according to law before the receipt of the report-loss-and-stop-
payment note shall no longer accept the report of loss and stop payment.

    Article 22   Banks, urban credit cooperatives and rural credit
cooperatives can reach an agreement with the applicants on the use of encrypted code for payment on checks as terms for the payment
of the
amount on the checks when the applicants applying for the opening of
check deposit accounts.    

    Article 23  The guarantor should, pursuant to the provisions of the
Law of Negotiable Instruments, carry particulars of guarantee on the bills
or their allonge. The guarantor who provides guarantee for the maker, the
payer and the acceptor should carry particulars of guarantee on the front
side of the bills; the guarantor who provides endorser guarantee should
carry particulars of guarantee on the back of the bills or on their allonge.

    Article 24  No unit or individual shall freeze amount on bills which
are transferred after endoresement according to law; unless it is otherwise
provided for by law.

    Article 25  The “signature for receipt” referred to in Article 55 of the
Law of Negotiable Instruments means the signature and seal of the bearer on
the front side of the bill which indicates the bearer has already obtained
the payment.

    Article 26  The date of the bearer presenting the bill to the bank
shall be the date of presenting payment when presenting payment to the
payer through the remitting bank or through the clearing system.

    Article 27  The “refusal of certification” referred to in Article 62
of the Law of Negotiable Instruments should include the following particulars:

    (1)types of bills and the principal particulars carried thereon the
acceptance and payment of which have been refused;

    (2)the factual basis and legal basis for the refusal of acceptance and
payment;

    (3)time of refusal of acceptance and payment; and

    (4)signatures and seals of the accepter and payer of refusal.

    The “note of dishonor” referred to in Article 62 of the Law of Negotiable
Instruments should contain the following particulars:

    (1)types of bills dishonored;

    (2)the factual basis and legal basis of dishonor;

    (3)time of dishonor; and

    (4)signature and seal of the person returning the bills.

    Article 28  The “other relevant certifications” referred to in Article 63
of the Law of Negotiable Instruments mean:

    (1)certification of death of the accepter and payer issued by a hospital
or a unit concerned;

    (2)certification of absconding of the accepter and payer issued by a
judicial organ; and

    (3)documents with validity of refusal of certification issued by a
notarial office.

    Article 29  The “interest rate” prescribed in section (2) of paragraph
one of Article 70 and in section (2) of paragraph one of Article 71 of the
Law of Negotiable Instruments means the interest rate for floating fund
loans fixed by the People’s Bank of China.

    Article 30  Whoever having any of the acts listed in Article 103 of the
Law of Negotiable Instruments which is slight in circumstances and does not
constitute a crime shall be penalized by public security organs according to
law.

    Article 31  Issuance of dud checks or issuance of checks the signature
and seal thereon are not in line with those left in advance not with the
purpose of gaining money and belongings by cheating shall be imposed a
fine of 5% of the amount at face value but not less than RMB 1000 Yuan
by the People’s Bank of China; the bearer has the right to ask the maker
for 2%  compensation of the amount on the check.

    Article 32  Staff members of financial institutions who accept, make
payment, guarantee or discount to bills which are in contravention of the
provisions of the Law of Negotiable Instruments and these Measures due to
negligence of duties in bill business, the persons-in-charge directly
responsible and other persons directly responsible shall be meted out
punishments of warning, recording of a demerit, removal or expulsion;
those causing heavy losses and constituting a criminal offence shall be
investigated of their criminal liabilities.

    Article 33  The payers of bills who deliberately suppress bills or
defer payment for bills payable at sight or mature bills shall be imposed
a 0.7%. fine of the amount of the bills every day within the period of suppression of bills and deferred payment by the People’s
Bank of China;
the persons-in-charge directly responsible and other persons directly
responsible shall be meted out punishments of warning, recording of a
demerit, removal or expulsion.

    Article 34  Whoever print bills without authorization in violation of the provisions of the People’s Bank of China shall be directed
to make
corrections by the People’s Bank of China and be imposed a fine of more than
RMB 10000 Yuan and less than RMB 200000 Yuan; for those with serious offences,
the People’s Bank of China is empowered to submit a request to the
department concerned for the revocation of their business licences.

    Article 35  Formats, order of triplicate, colors, specifications and
anti-forgery technical requirements and printing of bills shall be prescribed
by the People’s Bank of China.

    In determining the formats of bills, the People’s Bank of China may add
languages of the minority nationalities or foreign languages, taking into
account the actual requirements of the minority nationalities regions and
foreign embassies and consulates in China.

    Article 36  These Measures shall come into force as of October 1, 1997.





REGULATIONS GOVERNING PERFORMANCES FOR BUSINESS

Category  CULTURE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-08-11 Effective Date  1997-10-01  


Regulations Governing Performances for Business

Chapter I  General Provisions
Chapter II  Examination and Approval of Performing Units and Individual
Chapter III  Control over Performing Activities for Business
Chapter IV  Penalty Provisions
Chapter V  Supplementary Provisions

(Adopted at the 61st Executive Meeting of the State Council on August 1,

1997, and promulgated by Decree No.229 of the State Council of the People’s
Republic of China on August 11, 1997)
Chapter I  General Provisions

    Article 1  These Regulations are formulated for the purpose of enhancing
control over performances for business, bringing about the flourishing of
the cause of socialist art and literature, satisfying the requirements of
the people in cultural life and promoting the building of socialist spiritual
civilization.

    Article 2  These Regulations shall be observed in engaging in performing
activities for business and in the exercise of supervision and control over
performing activities for business within the territory of the People’s
Republic of China.

    Art performing troupes, sites for performances and brokerage agencies for
performances (hereinafter referred to as performing units for business) as
well as individual performers may engage in all types of performing activities
for business only upon acquisition of a licence of performances for business
pursuant to the provisions of these Regulations.

    Article 3  Performances for business must adhere to the orientation of
serving the people and socialism, persist in putting social benefits first,
carry forward fine national culture, and enrich and improve people’s
spiritual life.

    Article 4  The State encourages and supports performances of fine
national arts, encourages and supports performances for rural areas,
teenagers and children.

    Article 5  The State prohibits and bans illegal performing activities,
and safeguards the legitimate rights and interests of performing units and
performers.

    Article 6  The administrative department of culture under the State
Council shall be responsible for the work related to the control of
performances for business nationwide. The department of public security
and the department of industry and commerce administration under the State
Council shall exercise control over performing activities according to law
pursuant to the division of their respective duties and responsibilities.

    Administrative departments of culture of local people’s governments at
or above the county level shall be responsible for the work related to the
control of performances for business within their respective administrative
areas. The departments of public security and departments of industry and
commerce administration of local people’s governments at or above the county
level shall exercise control over performing activities for business within
their respective administrative areas according to law pursuant to the
division of their respective duties and responsibilities.

    Article 7  The State gives rewards to units and individuals having made
outstanding contributions to the cause of performing arts.
Chapter II  Examination and Approval of Performing Units and Individual
Performers

    Article 8  The administrative department of culture under the State
Council shall be responsible for the formulation of the overall plan for
performing units nationwide; administrative departments of culture of people’s
governments of the provinces, autonomous regions and municipalities directly
under the Central Government should, pursuant to the overall state plan,
determine the aggregate, distribution and structure of performing units
within their respective administrative areas.

    Article 9  Establishment of an art performing troupe should fulfil the
following qualifications:

    (1) having a unit name, an organization and a constitution;

    (2) having performers and staff members with performing skills;

    (3) having a fixed address and instruments and equipment commensurate
with the requirement of performances; and

    (4) having funds commensurate with its size.

    In addition to the qualifications prescribed in the preceding paragraph,
examination and approval of establishment of art performing troupes should
also conform to the plan of the aggregate, distribution and structure of
art performing troupes.

    Article 10  For application for the establishment of an art performing
troupe for business, an application should be filed with the administrative
department of culture of the people’s government at or above the county level
pursuant to the authority of examination and approval prescribed by the State;
that which has been approved upon examination and verification shall obtain
a “licence for performances for business”.

    The unit having obtained the “licence for performances for business”
should apply to the department of industry and commerce administration for
registration on the strength of the licence and may engage in performing
activities for business only upon obtaining a business licence; however,
art performing troupes whose funds are verified and allocated by the
State are exceptions.

    Article 11  Establishment of a site for performances for business should
fulfil the following qualifications:

    (1) having a unit name, an organization and a constitution;

    (2) having a building suitable for performances, necessary instruments and
equipment and appropriate specialized managers;

    (3) with security facilities and hygiene conditions conforming to
prescribed state standards; and

    (4) having necessary funds.

    Article 12  For application for the establishment of a site for
performances for business, an application should be filed with the
administrative department of culture of the people’s government at or above
the county level pursuant to the authority of examination and approval
prescribed by the State; that which has been approved upon examination
and verification shall obtain a “licence for performances for business”.

    The unit having obtained the “licence for performances for business”
should apply to the public security organ for security examination and
approval and to the administrative department of health for the acquisition
of a “hygiene licence” on the strength of the licence, and apply to the
department of industry and commerce administration for registration on the
strength of the licence, and may engage in performing activities for
business at the said site for performances only upon acquisition of a
business licence.

    Article 13  Establishment a brokerage agency for performances should
fulfil the following qualifications:

    (1) having a unit name, an organization and a constitution;

    (2) having competent business departments;

    (3) having employees with corresponding professional levels;

    (4) having a fixed address and business scope; and

    (5) having funds commensurate with its size.

    Article 14  For application for the establishment of a brokerage agency
for performances, an application should be filed with the administrative
department of culture of the people’s government at or above the provincial
level pursuant to the authority of examination and approval prescribed by the
State; that which has been approved upon examination and verification shall
obtain a “licence for performances for business”.

    The unit having obtained the “licence for performances for business”
should apply to the department of industry and commerce administration for
registration on the strength of the licence, and may go into business only
upon acquisition of a business licence.

    Article 15  Performing units for business should have qualifications of
a legal person and acquire the qualifications of a legal person upon
registration after verification and approval according to law and undertake
civil responsibilities independently with all its corporate property.

    Article 16  The State prohibits the establishment of art performing
troupes, sites for performances and brokerage agencies for performances
operated by Sino-foreign joint ventures, Sino-foreign cooperative ventures
and foreign capital.

    The State permits the reconstruction and new construction of sites for
performances for business with external funds; however, external contributors
shall not take part in operations and management. Specific measures shall be
worked out separately.

    Article 17  Individual performers engaging in performing activities for
business should file an application with the administrative department of
culture of the people’s government at or above the county level of the
locality wherein he/she resides pursuant to the authority of examination
and approval prescribed by the State on the strength of personal ID cards
and the certification of the neighborhood office or the village or
township people’s government of the place of domicile; he/she who has been
approved upon examination and verification shall obtain a “licence for
performances for business”.

    Article 18  Administrative departments of culture of people’s governments
at or above the county level should make a decision on the approval or
non-approval within 60 days starting from the date of receipt of an
application for the establishment of a performing unit.

    Article 19  For change in name, residence, leading person-in-charge or
legal representative by an art performing troupe, or a site for performances,
or a brokerage agency for performances for business, or change in business
scope by a brokerage agency for performances, an application should be filed
with the original licensing organ for going through the formalities of change
in registration.

    A performing unit or an individual performer for business not engaging in
performing activities without any justifiable reason in one year shall have
the “licence for performances for business” nullified by the original
licensing organ.
Chapter III  Control over Performing Activities for Business

    Article 20  The State encourages and supports art performing troupes and
individual performers to go into the midst of the common people and exert
their efforts to create and perform fine programs with unity of ideological
content and artistic content which are highly attractive and have strong
appeal and are welcomed by broad masses of people.

    Article 21  The State encourages and supports performing units and
individual performers for business to present free performing activities
to the common people, rural areas and industrial and mining enterprises on a
regular basis.

    Article 22  The State prohibits holding of performing activities
containing the following contents:

    (1) that which endangers state security, honour and social stability;

    (2) that which instigates nationality separation, infringes on minority
nationality customs and habits and disrupts solidarity of nationalities;

    (3) that propagates obscenity, pornography and superstition or plays up
violence;

    (4) that which performs in ways that are terror-striking, cruel or
ruin performers’ health;

    (5) that which attracts audience with physical defects or display of
physical deformities; and

    (6) other contents prohibited under provisions of laws and regulations.

    Article 23  An art performing troupe for business may organize on its own
performing activities for business of the unit itself, or may organize
performing activities for business in association with other art performing
troupes.

    Any unit should obtain the consent of the employer unit in employing
personnel of an art performing troupe to take part in performances of the
unit.

    Article 24  Holding of combined performances for business should be
sponsored by a brokerage agency for performances.

    Combined performances for business referred to in the preceding paragraph
mean temporary combination of performances for business in addition to
the independent performances of an art performing troupe or combined
performances.

    Article 25  For sponsorship of combined performances by a brokerage
agency for performances, a submission shall be made to the department which
issued the “licence for performances for business” for examination and
approval 20 days prior to the date of performance; for holding of
performances in provinces, autonomous regions and municipalities directly
under the Central Government outside the locality wherein the brokerage
agency for performances is located, a submission should be concurrently
made to the relevant administrative department of culture of the people’s
government at or above the county level of the locality wherein the
performances are to be held for examination and approval.

    Article 26  An individual performer may take part in performing activities
for business sponsored by an art performing troupe for business or by a
brokerage agency for performances, but must not hold performing activities
for business on his/her own.

    Article 27  For holding of national performing activities for business or
holding of performing activities for business enpost_titled with such words as
“China”, “Chinese” or “National”, a submission should be made to the
administrative department of culture under the State Council for examination
and approval.

    Article 28  Sponsorship of evaluation and award-giving activities for
cultural and artistic performances shall be handled pursuant to the relevant
state provisions.

    Article 29  Invitations to art performing troupes or individuals from the
Hong Kong Special Administrative Region and the regions of Macau and Taiwan
as well as foreign countries for performances for business shall be handled
by brokerage agencies for performances for foreign-related performance
businesses; the sponsor unit should make a submission to the administrative
department of culture under the State Council for examination and approval
30 days prior to the date of performance, and it may sign a formal contract
only upon approval; unless it is provided for otherwise by the State.

    An art performing troupe or an individual performer for business
leaving the country for performances for business should make a submission
to the administrative department of culture under the State Council for
approval pursuant to relevant state provisions.

    Article 30  An art performing troupe or a brokerage agency for
performances for business sponsoring performances for business should sign
a performance contract with the site of performances, units and individuals
participating in combined performances should sign performance contracts
with the brokerage agency for performances. The performance contract shall
carry the following particulars:

    (1) time of performance and number of performances;

    (2) place of performance;

    (3) leading performers and program contents;

    (4) ticketing arrangement of the performance;

    (5) mode of final settlement of the revenue and expenditure of the
performance; and

    (6) other matters that require to be carried.

    Article 31 Parties signing the performance contract should strictly
implement the agreement in the performance contract. A violator of the
agreement in the performance contract should bear responsibility for the
violation according to law.

    Causing losses to the audience due to violation of the agreement in
the performance contract should give compensation according to law.

    Article 32  For holding of performing activities for business by occupying
a park, or a square, or a street, or a guest house, or a hotel, or a stadium
(indoor stadium) or other sites for non-business performances, a submission
should be made to the administrative department of culture, the public
security organ and other departments concerned of local people’s government
of the locality for approval.

    Article 33  On-the-job performers of art performing troupes for business
or teachers and students of specialized art colleges and schools participating
in performing activities outside their own units shall be subject to the
consent of the unit he/she is in. Specific measures shall be worked out by the
administrative department of culture under the State Council.

    Article 34  For necessity of change in sponsor unit or holding unit, or
art performing troupe or leading performers, time, place and number of
performance and main contents of program of performance of
a performing activity for business upon approval, a separate report should
be submitted pursuant to the provisions of this Chapter for approval.

    Article 35  Sites for performances for business shall not provide services
in site for art performing troupes or individual performers without a “licence
for performances for business” and performing activities for business without
approval.

    While holding performances for business, the number of audience a site
for performance accommodates shall not exceed the maximum number of persons
allowed. The site for performance should be responsible for the maintenance
of order during performance and ensure the safety of the audience.

    Article 36  Art performing troupes or individual performers for business
shall not suspend performance without any justification or deceive audience
with such falsified means as feigned singing or passing oneself off as others.

    Contents of advertisements for performances for business must be true and
lawful, and must not mislead or deceive audience.

    Contents of advertisements for performances for business should be subject
to the verification and approval of the examination and approval department of
the performing activities.

    Article 37  The ticket price of performances for business and rate for
site rent for the site for performances for business shall observe state
provisions concerning price control.

    Article 38  Income accrued from performances by performers shall be taxed
according to law.

    Article 39  Revenue from performances at charity shows for donation
shall, excluding the necessary expenditure for costs, be paid to the unit
accepting the donation in full, the sponsor unit and performers (staff
members) must not take remuneration out of it. For organization of
performances for donation for social welfare, a report shall be submitted to
the administrative department of culture at the same level for examination and
approval upon verification and approval of the department of civil affairs of
the local people’s government at or above the county level of the locality.
Chapter IV  Penalty Provisions

    Article 40  Establishment of a performing unit for business on one’s own
without approval, or engagement in performances for business without
acquisition of a licence for performances for business in violation of the
provisions of these Regulations shall be banned by the administrative
department of culture, with the illegal income confiscated and be
concurrently imposed a fine more than three times and less than five times of
the illegal income; where there is no illegal income, a fine less than RMB
5,000 Yuan may concurrently be imposed.

    Article 41  For performances containing contents prohibited under
Article 22 of these Regulations in violation of the provisions of these
Regulations, the administrative department of culture shall direct the
offender to stop the performing activities, confiscate the illegal income;
where the circumstances are serious, the original licensing organ
shall direct the offender to suspend operations for consolidation or revoke
the “licence for performances for business”; violations of provisions of
public security administration shall be subject to penalties for public
security violations by the public security organ; where the offence
constitutes a crime, criminal responsibility shall be investigated
according to law.

    Article 42  For sponsorship of combined performances on one’s own or
invitation on one’s own of art performing troupes or individuals from
the Hong Kong Special Administrative Region and the regions of Macau and
Taiwan as well as foreign countries for performances for business in
violation of the provisions of these Regulations, the administrative
department of culture shall direct the offender to stop performing activities,
confiscate the illegal income of the units or individuals participating in
the performances; confiscate the illegal income of the organizer(s) and
concurrently impose a fine more than five times and less then ten times of
the illegal income; where there is no illegal income, a fine more than RMB
5,000 Yuan and less than RMB 20,000 Yuan shall be imposed; where the
circumstances are serious, the original licensing organ shall direct
the offender to suspend operations for consolidation or revoke the “licence
for performances for business”.

    Article 43  For suspension of performances without any justification or
practice of fraud and engagement in deceptive performances by such means as
feigned singing or passing oneself off as somebody else in violation of the
provisions of these Regulations, the administrative department of culture
shall issue a criticism of the performer himself/herself in a circular,
confiscate the illegal income and concurrently impose a fine more than
twice and less than five times of the illegal income; where there is no
illegal income, a fine less than RMB 5,000 Yuan may be imposed; where the
circumstances are serious, the offender shall be banned from taking
part in performing activities for business for one year.

    Article 44  For reception on one’s own by a site for performances for
business of art performing troupes for business, performances organized by
a brokerage agency without a “licence for performances for business”, or of
performing activities for business without approval in violation of the
provisions of these Regulations, the administrative department of culture
shall direct it to stop the performing activities, confiscate the illegal
income, and concurrently impose a fine more than three times and less than
five times of the illegal income; where the circumstances are serious, the
original licensing organ shall direct it to suspend operations for
consolidation or revoke the “licence for performances for business”.

    Article 45  For a site for performances for business causing disorder
during performances or a safety accident in violation of the provisions of
these Regulations, the administrative department of culture shall direct it
to amend and give it a warning; where the circumstances are serious, the
original licensing organ shall direct it to suspend operations for
consolidation or revoke the “licence for performances for business”; for
violations of the provisions of public security administration, the
public security organ shall impose penalties for public security violations
according to law; where the offence constitutes a crime, criminal
responsibility shall be investigated according to law.

    Article 46  For embezzlement of revenue from charity performances in
violation of the provisions of these Regulation, the administrative
department of culture shall, in conjunction with the department of civil
affairs, direct the holding unit to hand over the illegal income to the
unit accepting the donation and impose a fine more than three times and less
than five times of the illegal income; where the circumstances are serious,
the original licensing organ shall direct it to suspend operations for
consolidation or revoke the “licence for performances for business”;
where the offence constitutes a crime, criminal responsibility shall be
investigated according to law.

    Article 47  For an art performing troupe or a brokerage agency for
performances for business employing on its own members without gaining advance
consent of their employer units or individuals without obtaining a “licence
for performances for business” in violation of the provisions of these
Regulations to participate in performing activities for business, the
administrative department of culture shall administer a warning, and
concurrently impose a fine of more than RMB 500 Yuan and less than RMB
5,000 Yuan; for a unit subject to more than three cumulative administrative
penalties, the original licensing organ shall revoke its “licence for
performances for business”.

    Article 48  For an individual participating in performances for business
on one’s own without the consent of the employer unit in violation of the
provisions of these Regulations, the administrative department of culture
shall direct the person in question to stop performing activities, confiscate
the illegal income, impose a fine of more than 100% and less than 300% of the
illegal income and impose administrative sanctions according to law.

    Article 49  For an individual performer holding on one’s own performances
for business in violation of the provisions of these Regulations, the
administrative department of culture shall direct the person in question to
stop performing activities, confiscate the illegal income, and concurrently
impose a fine of more than RMB 5,000 Yuan and less than RMB 10,000 Yuan;
where the circumstances are serious, the original licensing organ shall
revoke the “licence for performances for business”.

    Article 50  For leasing or transfer of a “licence for performances for
business” in violation of the provisions of these Regulations, the
administrative department of culture shall direct the violator to stop
the illegal activities, confiscate the illegal income, and impose a
fine of more than three times and less than five times of the illegal income;
where there is no illegal income, a fine of less than RMB 5,000 Yuan may
concurrently be imposed; where the circumstances are serious, the
original licensing organ shall revoke the “licence for performances for
business”.

    Article 51  Performances infringing on the copyright of others shall be
dealt with pursuant to the provisions of the Copyright Law of the People’s
Republic of China.

    Violations of state laws and regulations governing industry and commerce,
taxation and public health administration shall be penalized by the
departments of administration concerned according to law.

    Article 52  Administrative departments of culture and their functionaries
infringing on the legitimate rights and interests of art performing troupes
or individual performers, sites for performances and brokerage agencies for
performances or abusing their power, neglecting their duties, indulging in
self-seeking misconduct, taking part in or covering up illegal performing
activities in violation of the provisions of laws and regulations constituting
a criminal offence shall be investigated of the criminal responsibilities
according to law; where the offence does not constitute a crime,
administrative sanctions shall be imposed according to law.
Chapter V  Supplementary Provisions

    Article 53&nb

FLOOD CONTROL LAW

Category  AGRICULTURE, FORESTRY AND METEOROLOGY Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1997-08-29 Effective Date  1998-01-01  


Flood Control Law of the People’s Republic of China

Contents
Chapter I  General Provisions
Chapter II  Flood Control Planning
Chapter III  Control and Prevention
Chapter IV  Administration of Flood Control Areas and Flood Control Works
Chapter V  Flood Control and Flood Fighting
Chapter VI  Guarantee Measures
Chapter VII  Legal Liability
Chapter VIII  Supplementary Provision

(Adopted at the 27th Meeting of the Standing Committee of the Eighth

National People’s Congress on August 29, 1997, and promulgated by Order
No. 88 of the President of the People’s Republic of China on August 29, 1997)
Contents

    Chapter I  General Provisions

    Chapter II  Flood Control Planning

    Chapter III  Control and Prevention

    Chapter IV  Administration of Flood Control Areas and Flood Control Works

    Chapter V  Flood Control and Flood Fighting

    Chapter VI  Guarantee Measures

    Chapter VII  Legal Liability

    Chapter VIII  Supplementary Provision
Chapter I  General Provisions

    Article 1  This Law is enacted with a view to preventing and controlling
flood, taking precautions against and alleviating calamities by
flood and waterlogging, maintaining the safety of people’s lives and
property, and safeguarding the smooth progress of the socialist modernization
construction.

    Article 2  The work for flood control shall observe the principles of
unified planning, overall consideration, focusing on prevention, integrated
measures for treatment and subordinating local interests to general interests.

    Article 3  The construction of flood control works should be incorporated
into the national economic and social development plan.

    Flood control funds shall be raised according to the principle of
combining government input with rational payment by beneficiaries.

    Article 4  The exploration and protection of water resources should be
subject to the overall arrangements for flood control and observe the
principle of combining the promotion of advantages with the elimination of
disadvantages.

    The control of rivers and lakes and the construction of flood control
works should conform to the comprehensive plans for river basins and be
integrated with the comprehensive exploration of water resources in river
basins.

    The comprehensive plans referred to in this Law mean those for the
exploration of water resources and the prevention and control of water
disasters.

    Article 5  The work for flood control shall be carried out in the light of
river basins or administrative areas and according to a system by which
unified planning shall be implemented at different levels and consideration
given to the administration of river basins as well as the administration of
administrative areas.

    Article 6  All units and individuals shall have the obligations to protect
flood control works and to take part in flood control and flood fighting
according to law.

    Article 7  People’s governments at all levels should intensify the unified
leadership over the work for flood control, organize departments and units
concerned, mobilize social forces, depend on scientific and technological
progress, harness rivers and lakes in a planned way and take measures to
enforce the construction of flood control works in order to consolidate and
enhance flood control capacity.

    People’s governments at all levels should organize departments and units
concerned and mobilize social forces to ensure flood control and flood
fighting and reconstruction and relief work after flood or waterlogging
calamities.

    People’s governments at all levels should lend support to flood storage
and detention areas and provide compensations and aids according to the state
provisions after flood storing and detaining.

    Article 8  The water conservancy administrative department under the State
Council shall, under the leadership of the State Council, be responsible
for routine duties of organization, coordination, supervision and guidance for
flood control nationwide. River basins administrative agencies set up by the
water conservancy administrative department under the State Council for major
rivers and lakes as designated by the state shall perform duties of
coordination, supervision and administration of flood control within their
jurisdiction as provided for by laws and administrative regulations and
authorized by the water conservancy administrative department under the State
Council.

    The construction administrative department and other relevant departments
under the State Council shall, under the leadership of the State Council, be
responsible for relevant work of flood control within their scope of powers
and duties.

    Water conservancy administrative departments under local people’s
governments at or above the county level shall, under the leadership of the
people’s governments at the same level, be responsible for routine duties of
organization, coordination, supervision and guidance for flood control within
their respective administrative areas. Construction administrative departments
and other relevant administrative departments under local people’s governments
at or above the county level shall, under the leadership of the people’s
governments at the same level, be responsible for relevant work of flood
control within their scope of powers and duties.
Chapter II  Flood Control Planning

    Article 9  Flood control planning refers to the overall arrangement for
the prevention and control of flood and waterlogging calamities in a
certain river basin, river course or region, including river basin flood
control planning for major rivers and lakes designated by the state, flood
control planning of other rivers, river courses and lakes as well as regional
flood control planning.

    Flood control planning should be subject to the comprehensive planning of
a certain river basin or region. Regional flood control planning should be
subject to the flood control planning for a certain river basin.

    Flood control planning constitutes the basis for the control of
rivers and lakes and the construction of flood control works.

    Article 10  Flood control planning for major rivers and lakes designated
by the state shall, in accordance with comprehensive river basin planning for
these rivers and lakes, be formulated by the water conservancy administrative
department under the State Council in conjunction with other relevant
departments and the people’s government(s) of the province(s), autonomous
region(s) and municipality(s) concerned directly under the Central Government,
and submitted to the State Council for approval.

    Flood control planning for other rivers, river courses and lakes or
regional flood control planning shall, separately in accordance with
comprehensive river basin planning and comprehensive regional planning, be
formulated by water conservancy administrative departments under local
people’s governments at or above the county level in conjunction with other
relevant departments or regions, submitted to the people’s governments at the
same level for approval and then submitted to the water conservancy
administrative departments under the people’s governments at the next higher
level for the record. Flood control planning for rivers, river courses or
lakes involving two or more provinces, autonomous regions and municipalities
directly under the Central Government shall be drafted by the administrative
agency for the relevant river basin in conjunction with the water conservancy
administrative departments and other relevant departments under the people’s
government(s) of the province(s), autonomous region(s) and municipality(s)
directly under the Central Government wherein the river, river course or lake
drains water and, after the people’s government(s) of the province(s),
autonomous region(s) and municipality(s) involved directly under the Central
Government examines it and comes up with comments, be submitted to the water
conservancy administrative department under the State Council for approval.

    Urban flood control planning shall, in accordance with the river basin
flood control planning and the regional flood control planning of the people’s
government at the next higher level, be formulated by the water conservancy
administrative department, the construction administrative department and
other relevant administrative departments under the people’s government of a
city which shall organize those administrative departments in the formulation
of the planning, and be included into the overall urban planning subject to
approval through the examination and approval procedures stipulated by the
State Council.

    Amendment to flood control planning should be subject to the approval from
the original approval organ.

    Article 11  The formulation of flood control planning should, following
the principle of ensuring key projects and considering others at the same
time, and integrating flood control with drought fighting, engineering
measures with non-engineering measures, take full account of the flood-drought
law, the relation of the upper and lower reaches and of both banks of a river,
and the requirements for flood control in the national economy, and be
coordinated with the national land planning and the overall land use planning
as well.

    Flood control planning should include the protected objects, aims and
tasks of flood control, flood control measures and action plans, delimit the
flooded area, the flood storage and detention area and the flood control
protected area, and determine the principle for use of the flood storage and
detention area.

    Article 12  Local people’s governments at or above the county level in
coastal areas which are threatened by storm tides should include the
prevention of storm tides into the flood control planning within their
respective areas, strengthen the construction of systems of anti-storm tides
works including sea walls (sea dykes), tidewater gates and coastal
shelter-forest, and supervise the design and construction of buildings and
constructions that should meet the requirements for the prevention of storm
tides.

    Article 13  Local people’s governments at or above the county level in
areas where mountain torrents may trigger landslides, collapses and mud-rock
flows and in other area where mountain torrents frequently occur should
organize the departments in charge of geological and mineral administration,
water conservancy administrative departments and other relevant departments to
conduct a general investigation on hidden dangers of landslides, collapses and
mud-rock flows, to delimit zones for focal control, and to take prevention and
control measures.

    Distribution of cities, towns and other inhabited areas as well as
factories, mines and trunk lines of railways and highways should avert the
threat of mountain torrents; for those having been built in places
threatened by mountain torrents, precautions should be taken.

    Article 14  Local people’s governments concerned in areas liable to
waterlogging such as plains, depressions, river networks and embankment areas,
valleys and basins should formulate planning for elimination and control of
waterlogging, organize relevant departments and units to take corresponding
control measures, improve drainage systems, develop types and varieties of
waterlogging-enduring crops and take integrated measures for controlling
flood and waterlogging, drought, saline and alkaline land.

    People’s governments of cities and towns should strengthen the
administration and construction of waterlogging drainage piping systems and
pumping stations in urban areas.

    Article 15  The water conservancy administrative department under the
State Council should, in conjunction with the relevant departments and the
people’s governments concerned of provinces, autonomous regions and
municipalities directly under the Central Government, formulate the planning
for controlling estuaries in the Yangtze River, Yellow River, Pearl River,
Liao River, Huai River and Hai River.

    Reclaiming land from seawaters in estuaries mentioned in the preceding
paragraph should conform to the planning for controlling estuaries.

    Article 16  Land to be used for realignment of river courses as planned in
flood control planning and land to be used for dykes in planned construction
projects may be delimited as planned reserve zones upon verification by the
land administrative department and the water conservancy administrative
department in conjunction with the involved areas, and submitted for approval
of the people’s government at or above the county level within the scope of
powers authorized by the State Council. If land within the planned reserve
zones involves that to be used in other projects, the land administrative
department and the water conservancy administrative department should consult
with departments concerned for verification of land.

    The planned reserve zones should be announced upon delimitation according
to the provisions of the preceding paragraph.

    No industrial or mining facilities not related to flood control may be
constructed within the planned reserve zones. If special circumstances exist
under which it is really necessary for state industrial and mining projects to
occupy land within the planned reserve zones mentioned in the preceding
paragraph, approval should be obtained according to the procedures set by the
state for capital construction and consultations should be made with the
relevant water conservancy administrative department.

    Land to be used for expanding or exploring man-made floodwater drainage
channels as determined in flood control planning may be delimited as planned
reserve zones to which the provisions in the preceding paragraph shall apply
upon verification by the land administrative department and the water
conservancy administrative department of the people’s government at or above
the provincial level in conjunction with other relevant departments and
regions and submitted for approval of the people’s government at or above the
provincial level within the scope of powers authorized by the State Council.

    Article 17  Construction of flood control works or other hydraulic works
and hydropower stations in rivers and lakes should conform to the requirements
of flood control planning. Reservoirs should keep adequate storage capacity
for flood control according to the requirements of flood control planning.

    When the feasibility study report for flood control works or other
hydraulic works and hydropower stations stipulated in the preceding paragraph
is submitted for approval pursuant to the procedures set by the state for
capital construction, a consent document for planning issued by the relevant
water conservancy administrative department which conforms to the requirements
of flood control planning should be enclosed as an appendix.
Chapter III  Control and Prevention

    Article 18  For the prevention and control of flood in rivers,
attention should be paid to flood storage as well as to flood discharge. The
smooth drainage of floodwater should be ensured by giving full play to flood
drainage capacity of river courses and flood redistribution and storage
functions of reservoirs, depressions and lakes, intensifying the protection of
river courses and taking measures to remove and dredge silt at regular
intervals in line with local conditions.

    For the prevention and control of flood in rivers, measures
should be taken to protect and expand the coverage of forest, grass and other
vegetation in river basins, conserve water resources and intensify the
comprehensive control of water and soil conservation in river basins.

    Article 19  In the realigning of river courses and building up
construction projects for leading the river direction or protecting
embankments, full consideration should be given to the relations between the
lower and upper reaches and between both sides of a river and the planned
realigning and leading line be followed. The direction of a river shall not be
changed at will.

    Planned realigning and leading lines for major rivers designated by the
state shall be worked out by river basin administrative agencies and submitted
to the water conservancy administrative department under the State Council for
approval.

    Planned realigning and leading lines for other rivers or river courses
shall be worked out by water conservancy administrative departments under
local people’s governments at or above the county level and submitted to the
people’s governments at the same level for approval. Planned realigning and
leading lines of rivers or river courses involving two or more provinces,
autonomous regions and municipalities directly under the Central Government
and of boundary river courses of provinces, autonomous regions and
municipalities directly under the Central Government shall, under the
leadership of river basin administrative agencies concerned, be worked out by
water conservancy administrative departments under the people’s governments of
provinces, autonomous regions and municipalities directly under the Central
Government of involved rivers or river courses and, after the people’s
governments concerned examine the proposed lines and come up with comments,
submitted to the water conservancy administrative department under the State
Council for approval.

    Article 20  Where the realignment of river courses or lakes involves
navigable waterways, full consideration should be given to the requirements
for navigation and views solicited in advance from the administrative
departments for transportation. The realignment of navigable waterways should
conform to the safety requirements for flood control in rivers and lakes and
views solicited in advance from the water conservancy administrative
departments.

    The realignment of river courses in rivers which are suitable for bamboo
and log rafting or in fishery water areas should take into account the needs
for bamboo and log water transportation and fishery development and views
should be sought in advance from the administrative departments for forestry
and fishery. The bamboo and log rafting in river courses should not affect the
safety of flood passage and flood control works.

    Article 21  The control of rivers and lakes shall follow the principle of
unified control in line with water systems combined with control at different
levels in order to strength the protection and ensure the smooth passage.

    Main courses of major rivers and lakes designated by the state, major
river courses and lakes involving two or more provinces, autonomous regions
or municipalities directly under the Central Government, boundary rivers and
lakes of provinces, autonomous regions or municipalities directly under the
Central Government as well as river courses and lakes which serve as national
boundaries (borderlines) shall, according to the designation of the water
conservancy administrative department under the State Council, be under the
control of river basin administrative agencies and water conservancy
administrative departments under the people’s governments of provinces,
autonomous regions and municipalities directly under the Central Government in
the place where rivers and lakes are drained. Other river courses and lakes
shall, according to the designation of the water conservancy administrative
department under the State Council or its authorized agencies, be under the
control of water conservancy administrative departments under local people’s
governments at or above the county level.

    The scope of control for any river course or lake with embankments shall
include the water area, sandbanks, beaches, the flood passage area, the
embankments and dyke protections between the embankments on both sides. The
scope of control for any river course or lake without embankments shall
include the water area, sandbanks, beaches and the flood passage area between
the all-time high flood levels or the designed flood levels.

    The scope of river courses and lakes under direct control of river basin
administrative agencies shall be delimited by river basin administrative
agencies in conjunction with local people’s governments concerned at or above
the county level in accordance with the provisions of the preceding paragraph.
The scope of control for other river courses and lakes shall be delimited by
local people’s governments concerned at or above the county level in
accordance with the provisions of the preceding paragraph.

    Article 22  The use of land and shore lines within the scope of control
for any river course or lake should conform to the requirements for flood
discharge and water flow.

    Within the scope of control for any river course or lake it is prohibited
to construct buildings or structures impeding flood discharge, dump garbage
and waste residues or engage in activities affecting the stability of river
flows, harming the safety of banks and embankments or other activities
impeding flood discharge in river courses.

    It is prohibited to plant trees or long-stalk crops impeding flood
discharge in river courses used for flood discharge.

    Restrictions of speed should be imposed in river courses where navigation
of ships may endanger the safety of embankments. Marks for speed restrictions
shall be set up upon the consultation between administrative departments for
transportation and water conservancy.

    Article 23  Enclosing a lake for cultivation is prohibited. Those
reclaimed lakes should be put in order according to the standards set by the
state for flood control and restored from farmland in a planned way.

    Enclosing river courses for cultivation is prohibited. If enclosure is
really necessary, scientific authentication should be carried out and on
confirmation by the water conservancy administrative department that there is
no impediment of flood discharge and water flow, submitted to the people’s
government at or above the provincial level for approval.

    Article 24  Local people’s governments should in a planned way organize
residents to move out of river courses for passage of floodwater.

    Article 25  Administrative agencies for rivers and lakes shall organize
the planting and maintenance of protective trees along banks and embankments.
Protective trees along banks and embankments shall not be felled without
authorization. If anyone intends to fell them, he must obtain the consent from
administrative agencies for river courses and lakes, go through the
formalities for a felling licence and complete the task of regeneration and
planting of trees as required.

    Article 26  For those bridges, approaches, wharves and other engineering
structures across a river which seriously intercept or block water, the water
conservancy administrative department concerned may, according to the flood
control standards, report to the people’s government at or above the county
level that will, within the scope of powers provided by the State Council,
order the construction unit to rebuild or dismantle them within a time limit.

    Article 27  The construction of bridges, wharves, roads, ferries,
pipelines, cables and engineering structures for tapping or draining water
which need to cut across rivers, through rivers or embankments, or to stand
on rivers should conform to flood control standards, shore lines planning,
navigation requirements and other technical requirements, and shall not
endanger the safety of embankments, affect the stability of river conditions
or impede the smooth passage of floodwater. Before the feasibility study
report of the involved project is to be submitted for approval according to
the procedures set by the state for capital construction, the engineering
construction scheme included in the report should be subjected to the
examination and approval of the relevant water conservancy administrative
department in accordance with the requirements for flood control as
mentioned above.

    If engineering structures mentioned in the preceding paragraph need to
occupy land within the scope of control for any river course or lake, or to
cut across the space over any river course or lake, or to go through
riverbeds, the construction unit should subject the position and border of
the engineering structures to the examination and approval of the relevant
water conservancy administrative department before completing the formalities
for starting the projects according to law. In the arrangement for the
construction project, the position and border should be followed as approved
by the water conservancy administrative department.

    Article 28  The water conservancy administrative department shall have the
right to inspect engineering structures constructed according to the
provisions of this Law within the scope of control for river courses or lakes.
When the water conservancy administrative department exercises inspection, the
inspected should truthfully provide the information and materials concerned.

    The acceptance of engineering structures mentioned in the preceding
paragraph upon completion should be taken part in by the water conservancy
administrative department.
Chapter IV  Administration of Flood Control Areas and Flood Control Works

    Article 29  A flood control area means an area where floodwater is
likely to inundate, which is classified as a flooded area, a flood storage
and detention area or a flood control protected area.

    A flooded area means an area to which floodwater reaches without the
protection of works.

    A flood storage and detention area means a depression or a lake from
outside embankments including flood-diversion mouths for temporarily storing
floodwater.

    A flood control protected area means an area protected by flood control
works according to flood control standards.

    The scope of a flooded area, a flood storage and detention area or a flood
control protected area shall be delimited in the flood control planning or
the flood prevention scheme, reported to the people’s government at or above
the provincial level according to the scope of powers provided for by the
State Council and if approved, announced to the public.

    Article 30  People’s governments at all levels should, according to flood
control planning, exercise administration of the use of land within different
flood control areas.

    Article 31  Local people’s governments at all levels should strengthen
leadership over the safety and construction work within flood control areas
and organize relevant departments and units to conduct flood control education
among units and residents within flood control areas, to popularize flood
control know-how and to enhance their awareness of flood control. They should,
according to flood control planning and flood prevention schemes, establish
and perfect the flood control system as well as systems for hydrology,
meteorology, communications, early warning and monitoring of flood and
waterlogging in order to improve the capability for flood control. They should
organize units and residents within flood control areas to actively take part
in flood control work and take measures for flood control and flood evasion
in the light of local conditions.

    Article 32  People’s gov

RULES OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION FOR ENTERPRISES WITH FOREIGN INVESTMENT ON THE IMPLEMENTATION OF THE MEASURES ON THE ADMINISTRATION OF CODES FOR IMPORT AND EXPORT ENTERPRISES OF THE PEOPLE’S REPUBLIC OF CHINA

The Ministry of Foreign Trade and Economic Cooperation

Rules of the Ministry of Foreign Trade and Economic Cooperation for Enterprises with Foreign Investment on the Implementation of the
Measures on the Administration of Codes for Import and Export Enterprises of the People’s Republic of China

WaiJingMaoBanFaZi [1997] No.498

August 25, 1997

Article 1

These rules for implementation (hereinafter referred to as “the Rules”) are hereby formulated in compliance with Article 13 of “Measures
on the Administration of Codes for Import and Export Enterprises of the People’s Republic of China” (hereinafter referred to as “the
Measures on Administration”).

Article 2

“Import and export enterprises” in the Measures on Administration refers to various enterprises with legal person status and permitted
by the State to engage in foreign trade and economic cooperation. The Rules are only applicable to enterprises with foreign investment
among them (including the Chinese-foreign equity joint ventures, the Chinese-foreign contractual joint ventures, the foreign-capital
enterprises and stock companies with foreign investment).

Article 3

All the enterprises with foreign investment established by law shall, in accordance with relevant provisions of the Rules, obtain
the codes for im/ex enterprises of the People’s Republic of China (hereinafter referred to as “the codes for im/ex enterprises”).

Article 4

Departments with written Approval Certificate for Enterprises with Foreign Investment by MOFTEC and the Approval Certificates for
Enterprises with Investments of Taiwan, Hong Kong, Macao and overseas Chinese (hereinafter referred to totally as “the approval certificates”),
shall be the departments in charge of the codes for im/ex enterprises of local enterprises with foreign investment, the administrative
competence is not allowed to be transferred to any of the levels below. The administrative departments of the issuing of the approval
certificates must be capable of being net-linked with MOFTEC’s foreign investment statistics network and the issuing administration
network of the approval certificates, must be capable of inputting relevant information accurately, timely and completely as well
as having corresponding administrative measures. MOFTEC shall separately formulate verification rules for the qualification of the
administrative departments which issue the approval certificates.

Article 5

The sole codes for im/ex enterprises are applicable to the State’s macro-management over foreign trade and economic cooperation, foreign
trade operations of enterprises with foreign investment and electronic data interchange in international trade.

Article 6

The codes for im/ex enterprises have thirteen-digit numerals, the structure is as follows:

The first to the fourth digits are codes for the administrative regions in which the registrations of im/ex enterprises are made,
using “the Codes for the Administrative Regions of the People’s Republic of China” (GB/T2260-1995). Among them, the first and second
digits are codes for the provinces, autonomous regions or municipalitie directly under the Central Government in which the registrations
of the im/ex enterprises are made; the third and fourth digits are codes for cities (districts) under provinces (autonomous regions),
only used by special economic zones and cities under direct central planning (including 8 provincial capitals which were originally
municipalities separately listed on the State plan), other cities (districts) under provinces (autonomous regions) totally write
“00”.

The fifth to thirteenth digits are “Codes for the State Organizations and Units” of the im/ex enterprises checked and issued by the
State Bureau of Technical Supervision or its authorized organizations, adopting “Compiling Norms of the Codes for the State Organizations
and Units” (GB/T11714 – 1995).

Article 7

The codes for im/ex enterprises of foreign investment are issued by the examination and approval authorities (i.e. the administrative
departments of foreign trade and economic cooperation) which approve the establishments of enterprises with foreign investment. The
codes for im/ex enterprises shall be added to the contents of the approval certificates which are printed by MOFTEC. The administrative
departments of foreign trade and economic cooperation shall issue the codes for im/ex enterprises together with the approval certificates,
no other ways of issuing the codes for im/ex enterprises to enterprises with foreign investment shall be taken.

Article 8

New edition of the approval certificate is put into use on January 1, 1998. From January 1, 1998 to April 30, 1998, all the enterprises
with foreign investment established by law shall change their approval certificates with the new editions. The on-going approval
certificates shall be invalid on and after May 1, 1998.

Article 9

From January 1, 1998 to April 30, 1998, the enterprises with foreign investment established by law before January 1, 1997 and regarded
as qualified in the joint annual inspection performed by seven ministries and commissions under the State Council shall, providing
with the “Codes for the State Organizations and Units” issued by the State Bureau of Technical Supervision or its authorized organizations,
apply to the issuing organizations of the approval certificates for the new editions and get the codes for im/ex enterprises simultaneously.

Article 10

All the enterprises with foreign investment established by law during the year of 1997 shall, providing with the “Codes for the State
Organizations and Units” issued by the State Bureau of Technical Supervision or its authorized organizations, apply to the issuing
organizations of the approval certificates for the new editions and get the codes for im/ex enterprises simultaneously.

Article 11

Starting from January 1, 1998, all the enterprises with foreign investment established by law shall, providing with the approval documents
on the establishment given by the examination and approval authorities, apply to the State Bureau of Technical Supervision or its
authorized organizations for the “Codes for the State Organizations and Units”. Then these enterprises shall, providing with the
“Codes for the State Organizations and Units”, apply to the issuing organizations for the approval certificates, and mean-while,
get the codes for im/e enterprises.

Article 12

The codes for im/ex enterprises are the only codes for enterprises with foreign investment. The administrative departments of enterprises
with foreign investment at all levels shall use the codes for im/ex enterprises while going through business formalities concerning
im/ex quotas, im/ex licences, export bidding and capital increasing, business scope enlarging, share transfering, etc.

Article 13

Enterprises with foreign investment of which the places of registration are changed (i.e. “the codes for the administrative regions
of the People’s Republic of China” mentioned in Article 6 of the Rules are changed), while applying for the changing of the approval
certificates, must apply for new codes for im/ex enterprises.

Article 14

According to Article 9 of the Measures on Administration, MOFTEC shall set up the annual examination system of the codes for im/ex
enterprises. The annual examination of the codes for im/ex enterprises of enterprises with foreign investment shall be conducted
in combination with the joint annual inspection performed by seven ministries and commissions under the State Council including MOFTEC.
The enterprises with foreign investment shall, in accordance with the requirements of “Notice Concerning the Implementation of Joint
Annual Inspection to Enterprises with Foreign Investment” promulgated jointly by the above seven ministries and commissions, apply
for the annual examination on time. For those exceeding the time of application or failing to pass the joint examination, their codes
for im/ex enterprises shall be suspended from use or cancelled by the administrative departments.

Article 15

For enterprises with foreign investment which terminate operation as a result of cancellation of approval certificates, revocation
of business licences, suspension of operation, termination of operation due to time limit, declaration of bankruptcy or other reasons
according to laws, their codes for im/ex enterprises shall be suspended or cancelled as well.

Article 16

Enterprises with investments from Taiwan, Hong Kong, Macao and overseas Chinese shall act basing on these Rules.

Article 17

The Rules shall be interpreted by MOFTEC.

Article 18

The Rules shall enter into force as of the date of promulgation.



 
The Ministry of Foreign Trade and Economic Cooperation
1997-08-25

 






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

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