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2003

MEASURES FOR ADMINISTRATION OF BORROWING INTERNATIONAL COMMERCIAL LOANS BY DOMESTIC INSTITUTIONS

19970908the People’s Bank of China

The State Administration of Foreign Exchange

Measures for Administration of Borrowing International Commercial Loans by Domestic Institutions

(Approved by the People’s Bank of China on September 8, 1997, promulgated by the State Administration of Foreign Exchange on September
24, 1997)

Chapter I General Provisions

Article 1

These Measures are formulated in accordance with the Regulations of the People’s Republic of China on Foreign Exchange Control and
other relevant provisions of the State Council for the purpose of improving the administration of the borrowing international commercial
loans

Article 2

The term “international commercial loans” mentioned in these Measures refers to funds raised and borrowed by domestic institutions
from financial institutions, enterprises, individuals or other economic organizations outside the Chinese territory or from financial
institutions with foreign investment within the Chinese territory, which are subject to contractual obligations for repayment in
foreign currency. Export credits, international financial leases, compensation trade repaid in foreign exchange, foreign exchange
deposits of institutions and individuals out of the territory (excluding foreign exchange deposits in banks which are approved to
conduct offshore banking business), project financing, financing under trade with the minimum term of 90 days and other types of
foreign exchange loans shall be regarded and administered as international commercial loans.

Article 3

The People’s Bank of China shall be the examination and approval organ of borrowing international commercial loans by domestic institutions.

The People’s Bank of China shall authorize the State Administration of Foreign Exchange and its branches offices (hereinafter referred
to as the foreign exchange bureaus) to be responsible for the examination, approval, supervision and administration of borrowing
international commercial loans by domestic institutions.

Article 4

A domestic institution must obtain approval from the foreign exchange bureau for borrowing an international commercial loan. An international
commercial loan agreement signed without the approval from the foreign exchange bureau shall be invalid. The foreign exchange bureau
shall not undertake foreign debt registration. The bank shall not open a foreign debt special account for it and the loan principals
and interests shall not be remitted abroad without authorization.

Article 5

Domestic institutions borrowing international commercial loans from foreign parties shall be restricted to:

(1)

Chinese-funded financial institutions authorized by the State Administration of Foreign Exchange to engage in foreign exchange loan
business operations;

(2)

non-financial enterprise legal persons approved by the departments authorized by the State Council.

Article 6

A financial institution borrowing an international commercial loan shall conform to the provisions of the People’s Bank of China on
the administration of the ratio of foreign exchange equity-debt of financial institutions.

Article 7

A non-financial enterprise legal person directly borrowing an international commercial loan from a foreign party shall meet the following
requirements:

(1)

having successively made profits over the previous three years, possessing an import-export business licence and engaging in an industry
encouraged by the State;

(2)

possessing a sound and complete financial management system;

(3)

for a trade-type non-financial enterprise legal person, its net assets shall account for not less than 15 per cent of its total assets;
for a non-trade-type non-financial enterprise legal person, its net assets shall account for not less than 30 per cent of its total
assets;

(4)

the sum of the international commercial loan borrowed and the surplus of the guaranty provided to a foreign party shall not exceed
50 per cent of the equivalent foreign exchange of its net assets;

(5)

the sum of the foreign exchange loan and the surplus of foreign exchange guaranty shall not exceed the foreign exchange revenue created
in the last financial year.

Article 8

A domestic institution shall borrow an international commercial loan on the basis of its own creditworthiness, and shall bear repayment
responsibility of its own accord.

Article 9

In the borrowing of an international commercial loan from a foreign party, a domestic institution shall strengthen the control of
cost. The total cost of its loan shall not exceed the total cost of a loan at the same period from a loan institution of the same
credit grading on the international financial market.

The foreign exchange bureaus shall supervise and direct the cost control in the borrowing of international commercial loans by domestic
institutions.

Article 10

A domestic institution borrowing an international commercial loan from a foreign party shall, in accordance with the provisions of
the State Administration of Foreign Exchange, submit the foreign loan statement for the previous quarter and the annual report on
the use of the international commercial loan to the foreign exchange bureau within the first ten days of each quarter.

Article 11

Foreign Exchange bureaus shall have the right to inspect the situations of the raising, using and repayment of international commercial
loans by domestic institutions. Loan institutions shall provide cooperation and submit the relevant documents and data.

Article 12

Without the approval of a foreign exchange bureau, a domestic institution shall not have the international commercial loan it has
borrowed deposited or directly paid out of the territory or converted into Renminbi for use.

Chapter II Medium-and-long-term International Commercial Loans

Article 13

The term “a medium-and-long-term international commercial loan” mentioned in these Measures refers to an international commercial
loan with a term of more than one year (not including one year), including a usance letter of credit with a term of more than one
year.

Article 14

The borrowing of a medium-and-long-term international commercial loan by a domestic institution shall be listed into the State plan
for the use of foreign capital.

Article 15

When borrowing a medium-and-long-term international commercial loan, a domestic institution shall apply to the foreign exchange bureau
by submitting all or part of the following data:

(1)

documents certifying that the borrowing is listed into the State plan for the use of foreign capital;

(2)

a document of project establishment approval for the loan;

(3)

a letter of intent on loan conditions, which shall include the name of the creditor, currency of the loan, amount, term and grace
period, interest rate, charges, early repayment intents and other financial conditions;

(4)

the source of repayment funds, repayment plan and the foreign exchange guaranty;

(5)

balance sheets in foreign exchange or Renminbi for the previous three years and other financial statements which have been verified
by a public accounting firm;

(6)

other relevant data as required by the foreign exchange bureau.

In addition to the provisions of the preceding paragraph, a branch of a financial institution borrowing a medium-and-long-term international
commercial loan from a foreign party shall also submit the relevant document of authorization from its head office (head company).

Article 16

The borrowing of an international commercial loan by a national institution resided in Beijing from a foreign party shall be directly
submitted to the State Administration of Foreign Exchange for examination and approval;

The borrowing of a loan from a foreign party by a national institution not resided in Beijing or by a local institution shall, after
being verified by the local foreign exchange bureau of the place where it is located, be submitted to the State Administration of
Foreign Exchange for examination and approval.

The branches of national and local financial institutions may make an application for approval only after they have been authorized
by their head offices (head companies).

Chapter III Short-term International Commercial Loans

Article 17

The term “a short-term international commercial loan” mentioned in these Measures refers to an international commercial loan with
a maximum term of one year (including one year), including inter-bank foreign exchange call loans, outward documentary bills, packing
loans and usance letter of credit with a term of more than 90 days but less than 365 days, etc..

Article 18

A short-term international commercial loan shall not be used for investment into long-term projects, fixed assets loans or other inappropriate
purposes.

Article 19

The foreign exchange bureaus shall implement administration of balance in respect of short-term international commercial loans borrowed
by domestic institutions.

Article 20

The balance control quota applied to short-term international commercial loans of domestic institutions (hereinafter referred to as
“the short-term loan quota”) shall be verified by the foreign exchange bureaus annually.

The balance of a short-term international commercial loan borrowed by a domestic institution shall not exceed the verified quota.

Article 21

The short-term loan quota of national financial institutions and non-financial enterprise legal persons shall be verified and made
known to lower levels by the State Administration of Foreign Exchange.

The short-term loan quota of local financial institutions and non-financial enterprise legal persons shall be examined and approved
by the foreign exchange bureaus of the place where they are located within the short-term loan quota verified and made known to lower
levels by the State Administration of Foreign Exchange.

Article 22

A Chinese-funded financial institution approved by the State Administration of Foreign Exchange to engage in international account
settlement businesses shall formulate the measures for the administration of usance letter of credit which shall be submitted to
the foreign exchange bureau for verification.

A Chinese-funded financial institution shall open usance letter of credit in accordance with the measures for the administration of
usance letter of credit that have been verified by the foreign exchange bureau.

A usance letter of credit with a term of more than 90 days but less than 365 days opened by a Chinese-funded financial institution
shall not use its short-term loan quota.

Article 23

If a non-financial enterprise legal person applies to a domestic financial institution with foreign investment to open a usance letter
of credit with a term of more than 90 days but less than 365 days, it shall be use its short-term loan quota.

Article 24

When applying to the foreign exchange bureau for a short-term loan quota, a domestic institution shall submit all or part of the following
data:

(1)

an application (including such contents as fund demand, situations of its credit-worthiness, purposes of the funds, etc.);

(2)

the previous year’s balance sheets and profit and loss statements verified by a public accounting firm;

(3)

a loan commitment letter of intention issued by the credit agency;

(4)

the foreign exchange receipts and expenditures in the previous year;

(5)

other data required by the foreign exchange bureau to be submitted.

Article 25

When borrowing a short-term international commercial loan, a non-financial enterprise legal person which does not implement the administration
of short-term loan quota balance shall have it reported case by case to the foreign exchange bureau, and shall have it included in
the short-term loan quota of the place where it is located.

Chapter IV Project Financing

Article 26

The term “project financing” mentioned in these Measures refers to the method of raising foreign exchange funds out of the territory
in the name of a domestic construction project, with the debt prepayment obligation to the foreign party by the project’s own expected
income and assets. It shall possess the following natures:

(1)

The creditor has no right of recourse over any assets and income other than the construction project;

(2)

The domestic institution is not required to mortgage, pledge or pay debts by using any assets, rights and interests as well as income
other than the construction project;

(3)

The domestic institution is not required to provide any forms of financial guaranty.

Article 27

The scale of financing with a foreign party in respect of project financing shall be incorporated into the State guidelines for borrowing
international commercial loan.

Article 28

The conditions for project financing shall be competitive and shall be examined and approved or examined and verified by the State
Administration of Foreign Exchange. With regard to the conditions for financing of project financing submitted to higher levels by
local authorities, after being preliminarily examined by the local foreign exchange bureau of the places where they are located,
they shall be reported to the State Administration of Foreign Exchange for examination and approval or examination and verification.

Article 29

When reporting the conditions for project financing to the State Administration of Foreign Exchange for examination and approval or
examination and verification, the project company shall submit the following documents:

(1)

an application, which shall include the methods for project financing, amount of money, market, as well as the term and interest rate
of the loan, the various charges and other financing conditions;

(2)

the project feasibility study report or other documents approved by the State Planning Commission;

(3)

documents certifying the incorporation of this project financing into the State guidelines for international commercial loans borrowed;

(4)

a project financing agreement;

(5)

documents with a nature of guaranty related to the project financing;

(6)

other necessary documents.

Chapter V International Commercial Loans Borrowed by Oversea Braches of Domestic Institutions

Article 30

The term “an overseas branch of a Chinese-funded financial institution” (hereinafter referred to as “an overseas branch”) refers to
a non-independent legal person branch which is established overseas by a Chinese-funded financial institution in accordance with
the local laws.

Article 31

A Chinese-funded financial institution shall decide the total amount of overseas financing for each of its overseas branches in accordance
with its overseas branches’ working capital amount, equity-debt ratio, volume of business for the current year and other indexes,
and shall have them reported to the State Administration of Foreign Exchange for the record before the end of February of each year.
If an overseas branch is to raise an international commercial loan equivalent to the value of more than US $ 50 million (including
US $ 50 million) on a one-off basis, its head office (head company) shall in advance report the matter to the State Administration
of Foreign Exchange for approval.

Article 32

Any financing which an overseas branch carries out overseas shall be incorporated into the equity-debt ratio administration of its
head office (head company).

Funds raised overseas by an overseas branch shall be only used for the development of overseas business. These funds must not be repatriated
for use into China without the approval of the State Administration of Foreign Exchange.

Article 33

A non-operating working office or representative office or other institutions established overseas by a Chinese-founded enterprise
shall not undertake financing overseas.

Article 34

Where a branch or other operating institution established overseas by a Chinese-funded enterprise borrows funds overseas in the name
of its head (parent) company with the authorization of its head (parent) company, the funds shall be regarded as the overseas loans
of the head (parent) company, and the head (parent) company shall undergo the relevant application and approval procedures in the
territory in accordance with the provisions of these Measures.

Chapter VI Legal Liability

Article 35

Where a domestic institution borrows an international commercial loan without authorization or fails to carry out inflation proof
work in accordance with the provisions of Article 42 of these Measures, the foreign exchange bureau shall give a warning, circulate
a notice of criticism and impose a fine of not less than RMB100,000 yuan nor more than RMB500,000 yuan. Where a crime is constituted,
criminal liability shall be investigated in accordance with the law.

Article 36

Where a domestic institution has the international commercial loan it has borrowed deposited or directly paid out of the territory
without authorization, or has it converted into Renminbi for use without authorization and without approval, the foreign exchange
bureau shall order it to make corrections, give a waning, circulate a notice of criticism and impose a fine in Renminbi of not less
than 30 per cent nor more than five times the amount of the illegally used funds. Where a crime is constituted, criminal liability
shall be investigated in accordance with the law.

Article 37

Where the overseas branch of a domestic institution, in violation of the provisions of Articles 31, 33 or 34 of these Measures, undertake
overseas financing without authorization, the foreign exchange bureau shall give the domestic institution a warning, circulate a
notice of criticism and impose a fine of not less than RMB100,000 yuan nor more than RMB500,000 yuan.

Article 38

Where, in violation of the provisions of Article 32 of these Measures, the overseas branch of a Chinese-funded financial institution
repatriates the funds raised overseas for use in China without authorization, the foreign exchange bureau shall order it to make
corrections and shall give the domestic Chinese-funded financial institution a warning, circulate a notice of criticism and impose
a fine of not less than RMB 100,000 yuan nor more than RMB500.000 yuan.

Article 39

Where a domestic institution submits false or invalid documents or other data to the foreign exchange bureau in order to fraudulently
obtain approval from the foreign exchange bureau, the foreign exchange bureau shall recover the documents of approval and impose
a punishment in accordance with the provisions of Article 35 of these Measures. Where a crime is constituted, criminal liability
shall be investigated in accordance with the law.

Article 40

Where a domestic institution fails to submit statements or data in accordance with the provision of these Measures, or refuses to
accept an inspection by and to cooperate with the foreign exchange bureau, the foreign exchange bureau shall give a warning, circulate
a notice of criticism and impose a fine of not less than RMB10,000 yuan nor more than RMB30,000 yuan.

Chapter VII Supplementary Provisions

Article 41

After signing an international commercial loan agreement, a domestic institution shall undertake foreign debt registration with the
foreign exchange bureau in accordance with the provisions on statistical monitoring of foreign debts and shall undertake repayment
procedures in accordance with relevant provisions.

Article 42

A domestic institution borrowing an international commercial loan must comply with the following principles based on the fluctuations
in international market exchange rates and interest rates and on the premise of not expanding the scale of foreign debts and not
extending the debt term in order to conscientiously minimize the foreign debt risks:

(1)

The matter shall be reported to the State Administration of Foreign Exchange for examination and approval where the amount to be borrowed
is low while the repayments are high;

(2)

A Chinese-funded financial institution that is approval to operate a foreign exchange trading business on a self-operation or agency
basis may carry out the business of preserving the value of international commercial loans in respect of its own debt or on commissions
accepted from other domestic institutions;

(3)

Where any other Chinese-funded financial institution commissions an overseas financial institution or a domestic financial institution
with foreign investment to carry out the business of preserving the value of its international commercial loan borrowed, the matter
shall be approved by the foreign exchange bureau;

(4)

An enterprise with foreign investment may itself commission an overseas financial institution or a domestic financial institution
with foreign investment to carry out the business of preserving the value of its international commercial loan borrowed.

Article 43

After a domestic institution has carried out the business of preserving the value of international commercial loan borrowed, the modification
of foreign debt registration procedures shall be undertaken in accordance with the provisions on statistical monitoring of foreign
debts.

Article 44

Provisions on the administration of foreign exchange accounts shall apply to the administration of account of international commercial
loans borrowed.

Article 45

These Measures shall apply to the borrowing of international commercial loans from the overseas branches of Chinese-funded financial
institutions by domestic institutions.

Article 46

These Measures shall apply to aircraft financial lease and international commercial loan funds which are borrowed for advance payment
on aircraft financial lease.

Article 47

The provisions of these Measures on project financing shall apply to domestic institutions which transfer overseas at fixed costs
the operating rights or rights to earnings of already established projects.

Article 48

The international commercial loans borrowed by Chinese-funded banks to engage in offshore banking operations shall be handled in accordance
with the provisions of these Measure on the administration of overseas branches.

Article 49

Foreign exchange loans which domestic institutions borrow from the offshore banking departments of Chinese-funded banks shall be regarded
and administered as international commercial loans.

Article 50

The provisions of Articles 1,2,3,8,9,10,11,12,13,17,18,35,36,37,39,40,41, 42(4), 43,44,45,46,47,49,51,52 and Chapter IV of these Measures
shall apply to enterprises with foreign investment. Other articles shall not apply to enterprises with foreign investment.

Article 51

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

Article 52

These Measures shall enter into force as of January 1, 1998. The Measures for Administration of Borrowing International Commercial
Loans by Domestic Institutions, approved on September 26, 1991 by the people’s Bank of China and promulgated by the State Administration
of Foreign Exchange, the Circular on Matters Relating to Project Financing by Domestic Institutions, promulgated on July 14, 1995
by the People’s Bank of China, the Provisions on Administration of Overseas Financing by Overseas Branches of Chinese-funded Banks
Conducting Foreign Exchange Business, promulgated on April 17, 1996 by the State Administration of Foreign Exchange, and the Circular
on Strengthening the Administration of Financing Conducted by Overseas Institutions of Chinese-funded Enterprises, promulgated on
January 16, 1997 by the State Administration of Foreign Exchange, shall be repealed simultaneously.



 
The State Administration of Foreign Exchange
1997-09-24

 






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

 






HIGHWAY LAW

Category  COMMUNICATIONS AND TRANSPORT Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  Amendment
Date of Promulgation  1997-07-03 Effective Date  1998-01-01  


Highway Law of the People’s Republic of China

Contents
Chapter I  General Provisions
Chapter II  Highway Planning
Chapter III  Highway Construction
Chapter IV  Highway Maintenance
Chapter V  Highway Administration
Chapter VI  Toll Highways
Chapter VII  Supervision and Inspection
Chapter VIII  Legal Responsibility
Chapter IX  Supplementary Provision
APPENDIX:RELEVANT ARTICLES OF PENALTIES FOR VIOLATION OF PUBLIC SECURITY

(Adopted at the 26th Session of the Standing Committee of the Eighth

National People’s Congress on July 3, 1997  Promulgated by Order No. 86
of the President of the People’s Republic of China on July 3, 1997
Effective as of January 1, 1998)(Editor’s Note: For the revised text, see
the Decision of the Standing Committee of the National People’s Congress
regarding the revisions of Highway Law promlgated by the Order 24 of the
President of the People’s Republic of China on October 31, 1999)
Contents

    Chapter I     General Provisions

    Chapter II    Highway Planning

    Chapter III   Highway Construction

    Chapter IV    Highway Maintenance

    Chapter V     Highway Administration

    Chapter VI    Toll Highways

    Chapter VII   Supervision and Inspection

    Chapter VIII  Legal Responsibility

    Chapter IX    Supplementary Provisions
Chapter I  General Provisions

    Article 1  This Law is enacted with a view to enhancing highway
construction and administration, promoting the development of highways and
meeting the requirements of socialist modernization and people’s life.

    Article 2  This Law shall be applicable in engaging in highway planning,
construction, maintenance, operation, use and administration within the
territory of the People’s Republic of China.

   The highways referred to in this Law cover highway bridges, highway
tunnels and highway ferries.

    Article 3  Development of highways should follow the principle of overall planning, rational distribution, quality assurance, assurance
of unimpeded traffic, environmental protection and laying equal stress on
construction, transformation and maintenance.

    Article 4  People’s Governments at all levels should adopt strong
measures to foster and promote highway construction. Highway construction
should be integrated into the national socio-economic development plan.

    The State encourages and guides domestic and foreign economic
organizations to invest in highway construction and operations in accordance
with law.

    Article 5  The State assists and fosters national minority regions,
remote border regions and poor regions in the development of highway
construction.

    Article 6  Highways are classified as state highways, provincial highways,
county highways and village highways in accordance with their respective
status in the highway network, and are classified as expressways, grade-one
highways, grade-two highways, grade-three highways and grade-four highways
in accordance with technical grades. Specific classification standards shall
be worked out by the department of communications under the State Council.

    Construction of new highways should meet the requirements of technical
grades. Measures should be taken to gradually transform those previously
built highways outside the grades which fail to meet the requirements of the lowest technical grade into highways meeting the requirements
of technical grades.

    Article 7  Highways are under state protection. No unit or individual
shall destroy, damage or illegally occupy highways, land for highways and
ancillary facilities of highways.

    Every unit and individual have the obligation to care for highways, land
for highways and ancillary facilities of highways, have the right to report
and charge acts of destruction and damage of highways, land for highways,
ancillary facilities of highways and acts affecting highway safety.

    Article 8  The department of communications under the State Council
is in charge of the work related to highways throughout the country.

    The departments of communications of local People’s Governments above
the county level are in charge of the work related to highways within their
respective administrative areas; however, the duties and responsibilities of the departments of communications of local People’s
Governments above the
county level in the administration and supervision of state highways and
provincial highways shall be determined by the People’s Governments of the
provinces, autonomous regions and municipalities directly under the Central
Government.

    Village, national minority village and township People’s Governments
are responsibile for the construction and maintenance of village highways
within their respective administrative areas.

    The departments of communications of local People’s Governemnts above
the county level may decide that agencies of highway administration shall
perform their duties and responsibilities in highway administration in
accordance with the provisions of this Law.

    Article 9  All units and individuals shall be prohibited to establish
posts, collect toll, impose fines and intercept vehicles on highways.

    Article 10  The State encourages sci-tech research in the work related
to highways and shall give rewards to units and individuals that have
scored outstanding achievements in highway sci-tech research and applications.

    Article 11  Provisions for special-purpose highways in this Law apply to
special-purpose highways.

    Special-purpose highways mean the roads built, maintained and managed by
enterprises or other units which provide transport services exclusively or
mainly for those enterprises or units.
Chapter II  Highway Planning

    Article 12  Highway planning should be made in accordance with the
requirements of the national socio-economic development and national defense
buildup and in coordination with urban construction development planning and
development planning of other modes of communications and transport.

    Article 13  Land use planning for highway construction should be in line
with overall land use planning, and land used for construction of the year
should be integrated into annual land use plan for construction.

    Article 14  State highway planning shall be made by the department of communications under the State Council in conjunction with
the departments
concerned under the State Council and in consultation with the provinces,
autonomous regions and municipalities directly under the Central Government
along the state highways and shall be submitted to the State Council for
approval.

    Provincial highway planning shall be made by the departments of communications of the People’s Governments
of the provinces, autonomous
regions and municipalities directly under the Central Government in
conjunction with the departments concerned at the same level and in
consultation with the People’s Governments at the next lower level along
the provincial highways and shall be submitted to the People’s Governments
of the provinces, autonomous regions and municipalities under the Central
Governments for approval and submitted to the department of communications
under the State Council for the record.

    County highway planning shall be made by the departments of communications
of the People’s Governments at the county level in conjunction with the
departments concerned at the same level and shall be submitted to the
People’s Governments at the next higher level for approval upon examination
and finalization by the People’s Governments at the same level.

    Village highway planning shall be made by the village, national minority
village and township People’s Governments with the assistance of the
departments of communications of the People’s Governments at the county
level and shall be submitted to the People’s Governments at the county
level for approval.

    County highway and village highway planning approved as prescribed in
the third Paragraph and the fourth Paragraph should be submitted to the
departments of communications of the People’s Governments at the next
higher level of the approval organs for the record.

    Provincial highway planning should be in coordination with state highway
planning. County highway planning should be in coordination with provincial
highway planning. Village highway planning should be in coordination with
county highway planning.

    Article 15  Special-purpose highway planning shall be made by units
in charge of the special-purpose highways and shall be submitted to the
departments of communications of the People’s Governments above the county
level for examination and verification upon examination and finalization by
the competent departments at the next higher level.

    Special-purpose highway planning should be in coordination with highway
planning. Upon discovery of incoordination between special-purpose highway
planning and state highway, provincial highway, county highway and village
highway planning, the departments of communications of the People’s
Governments above the county level should put forth suggestions for revisions,
and the competent departments and units of the special-purpose highways
should make corresponding revisions.

    Article 16  Partial adjustments in state highway planning shall be
decided upon by the organs which originally made the plans. For state highway
planning which requires major revisions, the organs which originally made
the plans shall put forth schemes for revision to be submitted to the State
Council for approval.

    For approved provincial highway, county highway and village highway
planning that require revisions, the organs which originally made the plans
shall put forth schemes for revision to be submitted to the original approval
organs for approval.

    Article 17  Naming and numbering of state highways shall be determined
by the department of communications under the State Council; naming and
numbering of provincial highways, county highways and village highways
shall be determined by the departments of communications of the People’s
Governments of the provinces, autonomous regions and municipalities directly
under the Central Government in accordance with the relevant provisions of
the department of communications under the State Council.

    Article 18  In planning and building of new villages, townships and
development zones, the prescribed distance from the highways should be kept
and constructions should be avoided corresponding to either side of the
highways in order not to turn highways into streets and affect highway
operational safety and unimpeded traffic.

    Article 19  The State encourages the use of special-purpose highways
for public transport of society. The special-purpose highways when used
mainly for public transport of society, the competent unit of the special-
purpose highways or the sides concerned shall submit applications and the
special-purpose highway can be reclassified as provincial highway, county
highway or village highway with the consent of the competent unit of the
special-purpose highway and the approval of the department of communications
of the People’s Governments of the provinces, autonomous regions and
municipalities directly under the Central Government.
Chapter III  Highway Construction

    Article 20  Departments of communications of the People’s Governments
above the county level should, pursuant to their duties and responsibilities,
maintain order in highway construction and enhance supervision and
administration in highway construction.

    Article 21  For the purpose of raising funds for highway construction
in addition to financial appropriations by People’s Governments at all
levels, decisions may be made to collect funds for highway construction
in accordance with law or the relevant provisions of the State Council;
and loans may also be sought from domestic and foreign financial institutions
or foreign governments in accordance with law.

    The State encourages investment by domestic and foreign economic
organizations in highway construction. Highway development and operating
companies may raise funds by issuing stocks and company bonds in accordance
with the provisions of laws and regulations.

    Revenue accrued from transfer of highway toll collection right in
accordance with the provisions of this Law must be used for highway
construction.

    Raising funds from enterprises and individuals for highway construction
must be based on requirements and possibilities, the principle of voluntarism
must be adhered to and there shall be no forcible apportionment, and must be
in line with the relevant provisions of the State Council.

    Funds for highway construction may also be raised in other ways which
are in line with the provisions of law or the State Council.

    Article 22  Highway construction should proceed in accordance with the
procedures of capital construction prescribed by the State and the relevant
provisions.

    Article 23  Highway construction projects should, pursuant to the
relevant provisions of the State, practise corporate responsibility system,
tender and bidding system and engineering supervision system.

    Article 24  Highway construction units should, in accordance with
the characteristics and technical requirements of highway construction
projects, select survey and design unit, construction unit and engineering
supervision unit with corresponding qualifications, and pursuant to the
provisions of relevant laws, rules and regulations and requirements of highway engineering technical standards, sign separate contracts
clearly
defining the rights and obligations of both sides.

    Feasibility study units, survey and design units, construction units
and engineering supervision units undertaking highway construction projects
must hold certifications of qualifications and quality prescribed by the
State.

    Article 25  Construction of highway construction projects must be
submitted to departments of communications of People’s Governments above
the county level for approval in accordance with the provisions of the
department of communications under the State Council.

    Article 26  Highway construction must conform to highway engineering
technical standards.

    Design units, construction units and engineering supervision units
undertaking highway construction projects should, pursuant to the relevant
provisions of the State, establish sound quality assurance system, practise
job responsibility system and carry out design, construction and supervision
in accordance with the relevant laws, rules and regulations as well as the
requirements of highway engineering technical standards and agreement in
the contracts to ensure the quality of highway engineering.

    Article 27  Land use for highway construction shall be processed
pursuant to the provisions of the relevant laws and regulations.

    Highway construction should implement the principle of earnestly
protecting cultivated land and economy in land use.

    Article 28  For requirements to use the state-owned barren mountains,
wasteland or requirements to dig sand, quarry and collect soil on the
state-owned barren mountains, wasteland, flood land and beach for highway
construction, when the formalities are completed pursuant to the provisions
of the relevant laws and regulations, no unit or individual shall obstruct
or illegally collect fees.

    Article 29  Local People’s Governments at all levels should render
support and assistance in highway construction land use and shifting of inhabitants according to law.

    Article 30  Design and construction of highway construction projects
should comply with the requirements for the protection of the environment,
protection of cultural relics and ancient sites and prevention of soil and
water loss in accordance with law.

    Highway construction projects in highway planning implementing national
defense requirements should carry out construction in strict accordance with
the plans to ensure the communications requirements of national defense.

    Article 31  When highway construction affects the normal use of railways,
water conservancy projects, electric and postal and telecommunications
facilities, the highway construction unit should seek the consent of the
departments concerned in advance; when highway construction causes damage
to the facilities concerned, the highway construction unit should repair
and restore the same in accordance with the technical standards not lower
than the original technical standards of the facilities, or give
corresponding financial compensation.

    Article 32  Construction units should install clear construction signs
and safety signs at either end of the construction sector of the road when
engaged in highway reconstruction. Signs should be installed at the
diversion entrance when vehicles are required to divert; temporary road
must be built to ensure the passage of vehicles and pedestrians when
impossible to divert.

    Article 33  Acceptance checks should be carried out in accordance with
the relevant provisions of the State upon completion of highway construction
projects and highway repair and restoration projects; those projects without
going through acceptance checks or those failing to pass acceptance checks
must not be handed over for use.

    Clear signs should be installed and lines marked on completed highways
in accordance with the provisions of the department of communications under
the State Council.

    Article 34  Local People’s Governments above the county level should
determine the land for highway use no less than one meter from the outer
fringe of the side trenchs(water trenches, slope-protection path at the
foot of slope, the same hereinafter) on either side of the highway.
Chapter IV  Highway Maintenance

    Article 35  Agencies of highway administration should conduct highway
maintenance in accordance with the technical specifications and operational
procedures prescribed by the department of communications under the State
Council to ensure the highways are constantly in a good technical state.

    Article 36  Highway maintenance expenses shall come from collection of fuel surcharge. Units and individuals in possession of vehicles
should pay
fuel surcharge in accordance with the relevant provisions of the State when
purchasing fuel. When fuel surcharge is levied and collected, no highway
maintenance fee should be levied and collected. Specific measures and steps
for implementation shall be formulated by the State Council.

    Pending the implementation of the measures for the levying and collection
of fuel surcharge, the existing measures for the levying and collection of highway maintenance fees shall still be in force. Highway
maintenance fee
must be used in highway maintenance and reconstruction. Departments of communications shall issue highway-maintenance-fee-received
sign to units
and individuals in possession of vehicles having paid highway maintenance
fee; highway-maintenance-fee-received sign should be placed in a visible
place in the vehicle. Vehicles without the highway-maintenance-fee-received
sign must not run on highways.      

    Article 37  People’s Governments at the county level and the village
level should render support and assistance in sand digging, quarrying,
soil collection and water collection required for highway maintenance.

    Article 38  People’s Governments at the county level and the village
level should, within the scope of rural obligatory labor and in accordance
with the relevant provisions of the State, organize rural inhabitants on
either side of highways in fulfilling the obligations of providing services
for highway construction and maintenance.

    Article 39  To ensure the personal safety of highway maintenance
personnel, highway maintenance personnel should wear uniforms eith safety
signs on them when engaging in maintenance operations; visible operations
signs should be installed on highway operations vehicles when employing
vehicles in maintenance operations.

    Under the prerequisite of not adversely affecting the passage of passing
vehicles, highway maintenance vehicles in operation shall be subjected to
the restrictions of highway road signs and the marked lines in their route
and direction of driving; passing vehicles should pay attention to avoid
or yield to highway maintenance vehicles and personnel.

    When construction of highway maintenance project affects the passage of vehicles and pedestrians, construction
units should handle the matter in
accordance with the provisions of Article 32 of this Law.

    Article 40  Agencies of highway administration should repair and restore
in time the state highways and the provincial highways the traffic of which is
suspended due to serious natural disasters; when agencies of highway
administration find it difficult to repair and restore them in time, local
People’s Governments above the county level should organize the organs,
societies, enterprises, institutions and rural and township inhabitants
of the locality in time in emergency repair, and may request local army
units for support to resume the traffic as quickly as possible.

    Article 41  Agencies of highway administration shall be responsible for
the soil and water conservation of the slopes and wasteland within the range
of land for highway use.

    Article 42  Planting of trees along highways shall be organized and
carried out by agencies of highway administration in accordance with highway
engineering technical standards.

    Trees on land for highway use must not be felled at will; for those trees
which need to be felled for renewal, formalities for examination and approval
in accordance with the provisions of the Republic of China> should be completed upon the consent of the department
of communications of the local People’s Government above the county level
and the task of supplementary planting for renewal fulfilled.
Chapter V  Highway Administration

    Article 43  Local People’s Governments at all levels should take measures
to step up highway protection.

    Departments of communications of local People’s Governments above the
county level should conscientiously perform their duties and responsibilities,
conduct the work of highway protection successfully according to law and
strive to adopt scientific management methods and advanced technical means
to improve highway management level, gradually perfect highway services
facilities and ensure that highways are in perfect condition, safe and
unimpeded in traffic.

    Article 44  No unit or individual shall occupy and dig highways without
authorization.

    For necessities to occupy, dig highways or reroute highways because of construction of railways, airports,
power stations, telecommunications
facilities, water conservancy projects and other construction projects,
the construction units should obtain the consent of the departments of communications concerned in advance; for those affecting communications
safety, consent has also to be obtained from the public security organs
concerned. For occupation, digging of highways or rerouting of highways,
the construction units should repair, restore, reconstruct the sector of the highway according to the technical standards not lower
than the
original technical standards or give corresponding financial compensation.

    Article 45  Construction of bridges or aqueducts or erection and laying
of wires or pipes and other facilities over or across highways, as well as
erection or laying of wires or pipes and cables and other facilities should
obtain the consent of the department of communications concerned in advance,
and for those affecting communications safety, consent has also to be obtained
from the public security organ concerned; the facilities to be constructed,
erected or laid should comply with the requirements of highway engineering
technical standards. For those causing damage to highways, compensation
should be given according to the extent of the damage.

    Article 46  No unit or individual shall set up stalls or sales points,
pile up goods, dump garbage, put up obstacles, dig trenches to draw water or
use the side trenches of highways to drain sewage or engage in other
activities damaging, polluting highways and affecting unimpeded traffic of highways.

    Article 47  No sand digging, quarrying, soil collection, waste dumping,
nor explosion operations and other activities endangering the safety of highways, highway bridges, highway tunnels and highway ferries
shall be
conducted within the range of 200 meters around big- and medium-size
highway bridges and ferries, within the range of 100 meters above highway
tunnels and from tunnel entrances as well as within a certain distance
within either side of highways.

    For construction of dykes and dams, shrinkage or expansion of river beds
necessitated by rushing to deal with an emergency or flood prevention
within the range of the preceding paragraph, submission of report should be
made in advance to the departments of communications of People’s Governments
of the provinces, autonomous regions and municipalities directly under the
Central Government for approval in conjunction with the departments of water
administration, and effective measures taken to protect the security of the
highways, highway bridges, highway tunnels and highway ferries in question.

    Article 48  Except for agricultural machinery which need to drive for
a short distance on highways for local field operations, no iron-wheel
vehicles, tracked vehicles and other machinery which may damage highway
surface shall drive on highways. Those vehicles which have the actual
requirements to be driven on highways, approval has to be obtained from
department of communications of local People’s Government above the county
level, effective protective measures taken and they are driven at the time
and on the route designated by public security organs. Those causing damage
to highways should pay compensation according to the extent of damage.

    Article 49  The axle-load quality of vehicles running on highways
should conform to the requirements of highway engineering technical
standards.

    Article 50  Vehicles exceeding the standards of restrictions in weight,
height, width and length for highways, highway bridges, highway tunnels or
motor vehicle ferries must not run on highways, highway bridges or in
highway tunnels with restricted standards, and must not use motor vehicle
ferries. The vehicles exceeding the standards of restrictions for highways
or highway bridges which actually need to run thereon must be submitted to
the approval of departments of communications of local People’s Governments
above the county level, and effective protective measures taken in accordance
with requirements; those affecting traffic safety should also be subjected to
the approval of public

INTERIM MEASURES FOR THE ADMINISTRATION OF SECURITIES AND FUTURES INVESTMENT CONSULTANCY

Category  SECURITIES Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-12-25 Effective Date  1998-04-01  


Interim Measures for the Administration of Securities and Futures Investment Consultancy

Chapter I  General Provisions
Chapter II  Securities and Futures Investment Consultancy Agencies
Chapter III  Securities and Futures Investment Consultants
Chapter IV  Securities and Futures Investment Consultancy Business
Chapter V  Penalty Provisions
Chapter VI  Supplementary Provision

(Approved by the State Council on November 30, 1997 and promulgated by

the Securities Commission under the State Council on December 25, 1997)
Chapter I  General Provisions

    Article 1  These Measures are formulated with a view to strengthening
the administration of securities and futures investment consultancy activities
and safeguarding the lawful rights and interests of investors and public
interest of society.

    Article 2  These Measures must be complied with in engaging in securities
and futures investment consultancy business within the territory of the
People’s Republic of China.

    The securities and futures investment consultancy referred to in these
Measures means the activities of the agencies and their consultants engaging
in the securities and futures consultancy business in providing direct or
indirect paid-for consultancy services for securities and futures investors
or clients with securities and futures analyses, forecasts or proposals and
other services in the following forms:

    (1)to accept the entrustment of an investor or client and provide
securities and futures investment consultancy services;

    (2)to hold seminars, lectures and analysis meetings on securities and
futures investment consultancy;

    (3)to publish articles, commentaries and reports on securities and
futures investment consultancy in newspapers and periodicals, and to provide
securities and futures investment consultancy services through such mass
media as radio stations, television stations and others;

    (4)to provide securities and futures investment consultancy services
through telephone, fax, computer networks and other telecommunications
systems; and

    (5)other forms authenticated by the China Securities Supervisory and
Control Commission(hereinafter referred to as CSSCC).

    Article 3  A business permit must be obtained from CSSCC in pursuance of the provisions of these Measures for engaging in securities
and futures
consultancy business. No institution or individual shall engage in securities
and futures investment consultancy business in the forms listed in Article 2
of these Measures without the permission of CSSCC.

    Securities operations agencies, futures brokerage firms and their staff
should comply with the provisions of these Measures in engaging in securities
and futures investment consultancy business beyond the respective scope of
those agencies.

    Article 4  Relevant provisions of relevant laws, regulations, rules and
CSSCC must be complied with and the principle of objectiveness, fairness,
honesty and good faith must be adhered to in engaging in securities and
futures investment consultancy.

    Article 5  CSSCC and its authorized local securities and futures
supervisory and control departments(hereinafter referred to as local
securities control offices(securities commissions) shall be responsible
for the supervision and control of securities and futures investment
consultancy business and be responsible for the implementation of these
Measures.
Chapter II  Securities and Futures Investment Consultancy Agencies

    Article 6  The following qualifications shall be met for application for
the operational qualifications of an agency for securities and futures
investment consultancy:

    (1)for an agency engaging in either securities or futures investment
consultancy business respectively, there are over five full-time persons with
employment qualifications for securities and futures investment consultancy;
for an agency engaging in securities and futures investment consultancy
business simultaneously, there are over ten full-time persons with employment
qualifications for securities and futures investment consultancy; among
its high-ranking managerial personnel, there must be at least one person with
employment qualifications for securities or futures investment consultancy;

    (2)has a registered capital of over RMB one million Yuan;

    (3)has a fixed business site and telecommunications and other information
transmission facilities commesurate with the business;

    (4)has a company constitution;

    (5)has sound internal management rules; and

    (6)has other qualifications required by CSSCC.

    Article 7  Securities operations agencies and futures brokerage firms
should conform to the qualifications provided for in Article 6 of these
Measures before they may apply for engagement in securities and futures
investment consultancy business beyond the respective scope of those agencies.

    Other agencies engaging in consultancy businesses that conform to the
qualifications provided for in Article 6 of these Measures may apply for
concurrent operations of securities and futures investment consultancy
business.

    Article 8  An agency applying for operational qualifications for
securities and futures investment consultancy shall follow the following
procedures of examination and approval:

    (1)An applicant shall file an application at the local securities control
office(securities commission) of the locality authorized by CSSCC(where the
local securities control office(securities commission) is not authorized by
CSSCC, an applicant shall apply directly to CSSCC, same hereinafter), the
local securities control office(securities commission) puts forth preliminary
remarks on the examination upon agreement after examination and verification;

    (2)the local securities control office(securities commission) shall
submit the application papers agreed upon to CSSCC, and CSSCC shall issue a
business permit to the applicant upon examination and approval and despatch
a copy of the approval document to the local securities control office
(securities commission); and

    (3)CSSCC shall release to society the information on the applicants who
have obtained the business permits in the form of announcements.

    Article 9  An agency applying for operational qualifications for
securities and futures investment consultancy should present the following
documents:

    (1)an application form uniformly printed by CSSCC;

    (2)articles of associaation of the company;

    (3)business license of the legal entity;

    (4)list of high-ranking managerial personnel and professional staff
engaging in securities and futures investment consultancy of the agency and
their educational background, work experiences and certificates of employment
qualifications;

    (5)the mode of investment  consultancy business and rules and regulations
for internal management;

    (6)certificate for the business site, address for correspondence,
telephone number(s) and fax number(s) of the agnecy;

    (7)a capital certification report provided by a certified accountant; and

    (8)other documents the presentation of which is required by CSSCC.

    Article 10  A report on the changes shall be submitted to the local
securities control office(securities commission) within five working days
starting from the date of occurence of the changes when changes occur in the
business mode, business site, main person-in-charge and professional staff
with employment qualifications for securities and futures investment
consultancy and go through the formalities for the changes.

    Article 11  Securities and futures investment consultancy agencies should
apply to local securities control offices(securities commissions) for annual
inspection between January 1 and April 30 every year. The following documents
should be presented in going through the annual inspection:

    (1)an application report for annual inspection;

    (2)Annual business report; and

    (3)financial accounting statements audited by a certified accountant.

    Local securities control offices(securities commissions) should, within
20 working days starting from the date of receipt of the documents listed in
the preceding paragraph, put forth remarks of examination and verification
on the annual inspection applications; those agreed to upon examination and
verification shall be submitted to CSSCC for examination and approval.

    A securities and futures investment consultancy agency that fails to
present the annual inspection report on expiry of the specified time period
or fails to pass the annual inspection upon examination and verification
must not continue to engage in securities and futures investment consultancy
business.
Chapter III  Securities and Futures Investment Consultants

    Article 12  A person who engages in securities and futures investment
consultancy business must obtain the employment qualifications for securities
and futures investment consultancy and join an agency with operational
qualifications for securities and futures investment consultancy before he/she
may engage in securities and futures investment consultancy.

    Any person who has no emplyment qualifications for securities and
futures investment consultancy or who has the employment qualifications for
securities and futures investment consultancy however has not worked in a
securities and futures investment consultancy agency must not engage in
securities and futures investment consultancy business.

    Article 13  A securities and futures investment consultant who applies
to obtain employment qualifications for securities and futures investment
consultancy must have the following qualifications:

    (1)has the nationality of the People’s Republic of China;

    (2)has full ability for civil acts;

    (3)with moral integrity, honesty and has good professional ethics;

    (4)has not been subjected to criminal peanlty or severe administrative
sanctions relating to securities and futures business;

    (5)has an educational background of regular college course and above;

    (6)has more than two years of experience in securities business in the
case of a securities investment consultant, and has more than two years of
experience in futures business in the case of a futures investment consultant;

    (7)has passed the qualification examination for securities and futures
employees uniformly organized by CSSCC; and

    (8)other qualaifications prescribed by CSSCC.

    Article 14  A securities and futures investment consultant who applies
to obtain the employment qualifications for securities and futures investment
consultancy shall follow the following procedures for examination and
approval:

    (1)An applicant shall file an application at the local securities control
office(securities commission) of the locality authorized by CSSCC(where the
local securities control office(securities commission) is not authorized by
CSSCC, the applicant shall apply to CSSCC direct, same hereinafter), the
local securities control office(securities commission) shall put forth
remarks on the preliminary examination upon agreement after examination and
verification; and

    (2)the application papers agreed to upon examaination and verification by
the local securities control office(securities commisssion) shall be submitted
to CSSCC, CSSCC shall issue a certificate of qualification to the applicant
upon examination and approval and despatch a copy of the approval document to
the local securities control office(securities commission).

    Article 15  A securities and futures investment consultant who applies to
obtain employment qualifications for securities and futures investment
consultancy should present the following documents:

    (1)an application form uniformly printed by CSSCC;

    (2)the identity card;

    (3)the diploma(s);

    (4)report card of the qualification examaination for securities and
futures emplyees;

    (5)materials explaining past behavior issued by the employer unit or
the subdistrict office of the place of domicile; and

    (6)other materials required to be submitted by CSSCC.

    Article 16  When a securities and futures investment consultant who has
obtained the employment qualifications applies for business operations,
the securities and futures investment consultancy agency he/she joins
shall file an application at the local securities control office(securities
commission) of the locality wherein the agency is located, the application
shall be submitted to CSSCC for examination and approval upon consent of the local securities control office(securities commission)
after examination
and verification; whoever is approved for business operations shall be
issued a business license by CSSCC.

    Article 17  A securities and futures investment consultant with the
acquisition of the employment qualifications should go through annual
inspection for business operations simultaneously at the time of annual
inspection of the securities and futures investment consultancy agency he/she
has joined. A securities and futures investment consultant with the
acquisition of the employment qualifications who however has no business
operations in a securities and futures investment consultancy agency,
his/her employment qualifications will automatically become invalid at
the expiration of 18 months from the date of the acquisition.

    Article 18  No securities and futures investment consultant shall
concurrently engage in business operations in two or more than two securities
and futures investment consultancy agencies.
Chapter IV  Securities and Futures Investment Consultancy Business
Administration

    Article 19  A securities and futures investment consultancy agency and
its investment consultants should provide securities and futures investment
consultancy services for investors or clients with the acknowledged attitude
of the trade: discretion, honesty, diligence and fulfilment of responsibility.

    Articlw 20  A securities and futures investment consultancy agency and
its investment consultants should use the relevant information and materials
completely, objectively and accurately to provide investment analyses,
forecasts and proposals to investors or clients, and must not quote or
alter relevant information and materials out of context; sources and
copyright owners shall be annotated in quoting relevant information and
materials.

    Article 21  A securities and futures investment consultancy agency and
its investment consultants must not provide investment analyses, forecasts
or proposals to investors or clients on the basis of false information,
market rumors or inside information.

    Article 22  When publishing articles, reports or views on investment
consultancy in newspapers, periodicals, radio stations, television stations
or other media, a securities and futures investment consultant must annotate
the name of the securities and futures investment consultancy agency in which
he/she is employed and the true name of the individual and make full
explanation on investment risks. A securities and futures investment
consultancy agency must annotate the name and address of the agency, the
telephone number(s) for contact and the name(s) of the contact in providing
securities and futures investment consultancy faxes to investors or clients.

    Article 23  A securities and futures investment consultancy agency
should apply to the local securities control office(securities commission)
for the record in co-sponsorship or assisting in sponsorship of a page or
a program on securities and futures investment consultancy with newspapers,
periodicals, radio stations and television stations or in business cooperation
with departments of telecommunications services. Materials for the record
include contents of cooperation, time of beginning and termination,
layout of a printed sheet or time band of the program, the person-in-charge of the project, etc, and affix the seals of the units
of the two sides.

    Article 24  No securities and futures investment consultancy agency and
its investment consultants shall engage in the following activities:

    (1)engaging in securities and futures buying and selling as an agent of investors;

    (2)making commitments on returns on securities and futures investment to
investors;

    (3)agreement with investors on the sharing of returns or losses of the
investment;

    (4)buying and selling of stocks for himself/herself and securities with
the nature and function of stocks and futures;

    (5)manipulating the market or engaging in inside trading by exploiting
the consultancy services in collaboration with others; and

    (6)other fraudulent acts in securities and futures prohibited by
laws, rules and regulations.

    Article 25  The investment analyses, forecasts or proposals on the same
question provided to different clients by a securities and futures investment
consultancy should be consistent.

    A securities operations agency with self-managed businesses should be
consistent in providing consultancy suggestions on the same question to the
public of society and its self-managed department and must not mislead
the public of society out of requirements for profit-gaining of its self-
managed businesses in engaging in securities investment consultancy
business beyond the scope of the agency.

    Article 26  Securities and futures information briefs, newsflash and
trends compiled and issued by a securities operations agency or futures
brokerage firm for the internal use of the agency and the information systems
shall be restricted to use within the agency only and must not be provided
to the public of society through any channel.

    The underwriter or the person who recommends the listing and their
subordinate securities investment consultancy agencies of the company whose
public issuance of shares approved by CSSCC must not publish in mass media
its report on the analysis of investment value written for clients.

    Article 27  CSSCC and local securities control offices(securities
commissions) have the power to conduct inspection over the business activities
of securities and futures investment concultancy agencies and investment
consultants, the securities and futures investment consultancy agencies and
their investment consultants to be inspected should cooperate and not
interfere and obstruct.

    CSSCC and local securities control offices(securities commissions) and
their functionaries should pay attention to the protection of the business
secrets involved in the process of business inspection.

    Article 28  Securities and futures investment consultancy agencies
should put the investment consultancy materials they provide to investors
or public of society in safekeeping for two years starting from the date
of provision.

    Article 29  Local securities control offices(securities commissions)
shall, on the basis of the complaints or reports of investors or public of society, have the power to demand the securities and futures
investment
consultancy agencies and their investment consultants to explain the
situation and provide relevant materials.

    Article 30  Any unit or individual that uncovers the acts of securities
and futures investment consultancy agencies, investment consultants or other
agencies and individuals in violation of the provisions of these Measures
may lodge a complaint or make a report to local securities control offices
(securities commissions).

    Article 31  Local securities control offices(securities commissions)
should establish a case and investigate the acts in violation of the
provisions of these Measures and submit a report on the results of investigation to CSSCC for the record.
Chapter V  Penalty Provisions

    Article 32  Whoever engages in the securities and futures investment
consultancy business provided for in Article 2 of these Measures on one’s
own without the permission of CSSCC shall be ordered to suspend the business
by the local securities control office(securities commission), and
confisticated of the illegal gains and imposed a fine of the amount less
than the equivalent value of the illegal gains.

    Article 33  Any securities and futures investment consultancy agency
that commits any of the following acts shall be imposed a fine of more than
RMB 10,000 Yuan less than RMB 50,000 Yuan by the the local securities control
office(securities commission); where the circumstances are serious, the
local securities control office(securities commission) should submit a
report to CSSCC, and CSSCC shall impose a penalty of suspension or revocation
of its business qualifications:

    (1)there are false statements or major omissions in the documents and
materials submitted to CSSCC;

    (2)failure to fulfil the obligations of reporting and annual inspection
in accordance with the provisions of these Measures;

    (3)failure to go through the formalities for the changes in the relevant
information of the agency which have taken place in accordance with the
provisions of these Measures;

    (4)securities and futures investment consultants of the agency having
been subjected to administrative sanctions by the securities supervisory
and control department for violation of the provisions of these Measures; and

    (5)interfering with or obstructing the inspection and investigation of the local securities control office(securities
commission) or concealing and
destroying evidences.

    Article 34  Any securities and futures investment consultancy agency that
violates the provisions of Articles 18, 19, 20, 21, 22, 23, 24, 25 and 28
shall be penalized on one count or be concurrently administered a warning,
confisticated of the illegal gains and imposed a fine of more than RMB
10,000 Yuan less than RMB 100,000 Yuan; where the circumstances are serious,
the local securities control office(securities commission) should submit a
report to CSSCC and CSSCC shall impose a penalty of suspension or
nullification of the business qualification; where a crime has been
constituted, criminal liability shall be investigated according to law.

    Article 35  Any securities operations agency or futures brokerage firm
that violates the provisions of Article 26 of these Measures shall be ordered
by the local securities control office(securities commission) to make a
rectification and concurrently administered a warning or imposed a fine of
more than RMB 10,000 Yuan less than RMB 50,000 Yuan.

    Article 36  Any securities and futures investment consultant that
violates the provisions of Articles 18, 19, 20, 21, 22 and 24 of these
Measures or fails to fulfil the obligations of reporting to and annual
inspection by the competent securities department in pursuance of the
provisions of these Measures shall be penalized on one count or concurrently
administered a warning, confisticated of the illegal gains and imposed a
fine of more than RMB 10,000 Yuan less than RMB 30,000 Yuan; where the
circumstances are serious, the local securities control office(securities
commission) shall submit a report to CSSCC which shall impose a penalty of suspension or nullification of its business qualification;
where a crime
has been constituted, criminal liability shall be investigated according to
law.

    Article 37  Any functionary of CSSCC or local securities control offices
(securities commissions) that neglects the duty, abuses power, indulges in
self-seeking misconduct constituting a crime shall be investigated of the
criminal liability; where a crime has not been constituted, administrative
sanctions shall be imposed according to law.
Chapter VI  Supplementary Provision

    Article 38  These Measures shall enter into force as of April 1, 1998.





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CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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