REGULATIONS OF SHANGHAI MUNICIPALITY ON ROAD TRAFFIC ADMINISTRATION

CHAPTER II PEDESTRIANS AND PASSENGERS

CHAPTER IV VEHICLE DRIVERS

CHAPTER IV ROADS AND PARKING

CHAPTER VIII HANDLING OF TRAFFIC ACCIDENTS

CHAPTER X SUPPLEMENTARY PROVISIONS

   Article 1 With a view to strengthening road traffic administration, safeguarding traffic order, ensuring the safety of road traffic
and keeping the roads unimpeded, and in accordance with the “People’s Police Law of the People’s Republic of China”, the “Regulations
of The People’s Republic of China On Road Traffic Administration” and other relevant laws and regulations, the present Regulations
are hereby formulated by considering the actual situation of the Municipality of Shanghai.

   Article 2 The present Regulations are applicable to the traffic activities and their administration within the administrative areas
of this Municipality.

   Article 3 The Municipal Public Security Bureau is in charge of the road traffic administration of this Municipality. The municipal and
district or county traffic administrative departments of public security are specifically responsible for the road traffic
administration within areas under their jurisdiction in accordance with their respective duties.

The relevant administrative departments of the municipal, district and county people’s government shall jointly do the
road traffic administration work well.

   Article 4 The Municipality implements the system of job responsibility for traffic safety in order to reduce violations of traffic regulations
and prevent traffic accidents.

Each organ, military unit, educational institution, social organization, enterprise and institution (hereinafter referred to as
“unit”) shall put the system of job responsibility for traffic safety into effect and shall strengthen the education for
traffic safety of all the personnel in the unit and tighten vehicle control.

   Article 5 Funds for traffic control equipment, for construction, maintenance and renewal of facilities for traffic safety and funds
for propagating traffic safety shall be included in the budget of the municipal, district and county people’s government.

   Article 6 Every unit and individual person shall observe traffic regulations. Traffic administrative departments of public security
and all of the traffic policemen shall be faithful in the discharge of their duties, enforce the law impartially, and strictly
and with civility.

   Article 7 May 5th of every year shall be the publicity day for no- violation of traffic regulations, no traffic accident and road traffic
safety.

CHAPTER II PEDESTRIANS AND PASSENGERS

   Article 8 Pedestrians shall walk on the following roads:

1. Pedestrian streets;

2. Sidewalks; or

3. Pedestrian overpass or underground walk-through;

Pedestrians may walk within one mete from the edge of the street or the obstacle when there are no side walks on the street or
when there is an obstacle on sidewalks blocking the passage.

Pedestrians shall walk on the pedestrian crossings and abide by traffic signals and shall not cross over the median strip for
separating fast traffic lane from slow traffic lane when they need to cross vehicle lanes.

   Article 9 Those who push motorcycles or non-motor-driven vehicles on vehicle lanes shall observe the following rules:

1. Keep closely to the edge of the right side while pushing. They shall push along the way shown by traffic signs if there are
any;

2. When they need to cross vehicle lanes, they shall push motorcycles or non-motor vehicles in the same way as the pedestrians
cross vehicle lanes; and

3. They are not allowed to push motorcycles or non-motor vehicles two or more abreast.

   Article 10 Pedestrians are forbidden to enter any expressway, overpass and other roads of no admittance. Pedestrians are forbidden to
enter traffic control areas without authorization.

   Article 11 Pedestrians shall observe the following rules:

1. They shall not wait for cars or buses on vehicle lanes;

2. They shall not litter roads from a vehicle;

3. They shall not interfere with the driver’s operation while the motor- vehicle is going;

4. They shall not get on or off a vehicle on the vehicle lane through the left-side door; and

5. They shall not get on or off a motor-vehicle before it comes to a standstill.

   Article 12 The traffic administrative departments of public security shall inspect all vehicles.

Only after having passed the inspection conducted by the departments of public security traffic control, having been registered,
and having acquired license numberplates, driving permits or licenses can vehicles be allowed to run on roads.

   Article 13 This Municipality implements a regulatory control over the distribution of vehicle numberplates.

The annual distribution of license numberplates for motor-vehicles and the method of granting shall be put forward by the Municipal
Planning Commission jointly with the Municipal Traffic Administrative Department of Public Security and other relevant
departments and shall be implemented after approved by the Municipal Government.

This Municipality exercises a strict control over approving and issuing license numberplates for pedicabs and stops approving
and issuing license numberplates for petro-driven bicycles in urban districts.

   Article 14 A unit or an individual person that meets the conditions for applying for license numberplates may apply for the
license numberplates, driving permits or licenses from the traffic administrative department of public security
with valid certificates of vehicles in accordance with the provisions of laws and regulations of the State and this Municipality.

   Article 15 Vehicles eligible for application for vehicle license numberplates, and driving licenses and permits shall be the China-made
vehicles listed in the product catalogue of home-made vehicles published by the State and this Municipality. Imported foreign
made vehicles shall meet the requirements provided by regulations promulgated by the State.

   Article 16 This Municipality implements the third-party liability insurance for motor vehicles in accordance with the provisos of
the State law and regulations and advocates the third-party liability insurance for non-motor vehicles.

   Article 17 The traffic administrative department of public security shall inspect vehicles at regular intervals.

Those vehicles that have not been inspected at regular intervals or have been inspected but graded as unqualified by the traffic
administrative department of public securely shall not be allowed to run on roads.

Motor vehicles under one of the following conditions shall receive special inspection by public security of traffic administration.
Those motor vehicles that have not been specially inspected or have been specially inspected but graded as unqualified
shall not be allowed to run on roads:

1. Vehicles with changes in body installations, in color, or in major technical parameters;

2. Vehicles whose conditions do not tally with the State technical requirements for safe running of motor vehicles; or

3. Vehicles that have been repaired due to damage caused by major or exceptionally serious traffic accidents.

   Article 18 Those who need to have a motor vehicle refitted shall apply to the Municiple Department of Public Security and provide relevant
technical datum concerned, and are allowed to have it refitted only after examination, verification and approval.

The Municipal Department of Public Security shall participate in the expounding and proving of safety techniques and in the
appraisal of functions of new types and new models of vehicles developed in Shanghai.

   Article 19 advertisements that have been permitted to be installed on vehicle bodies shall comply with the provisions of the laws
and regulations on advertisement and shall be installed in the modes and places stipulated by the municipal Traffic Administrative
Department of Public Security.

   Article 20 A motor vehicle that need to have a transfer of owner ship, an alteration of place of registration, or to be scrapped, renovated,
alliterated, stopped using or resumed using shall comply with the relevant provisions State and municipal laws and regulations,
and the owner of the vehicle shall go to the Municipal Traffic Administrative Department of Public Security and other
relevant departments to go through the relevant procedures.

   Article 21 This Municipality shall take optimization measures for the composition of vehicle types, vehicle performance and vehicle fuel.

Any motor vehicle that meets the scrap standard in terms of a vehicle’s service life, traveling mileage, damage level, or energy
consumption, or discharging pollutant has to be scrapped.

The department that is to take up the responsibility for unified reclaiming and disintegrating of the scrapped motor-vehicles
shall be specifically appointed by the Municipal People’s Government.

   Article 22 The following acts are forbidden:

1. Installing a motor on a non-motor vehicle;

2. Assembling a vehicle with parts taken from different vehicles;

3. Replacing the vehicle’s engine, frame or chassis without permission; or

4. Using signs for special vehicles stipulated by the State without authorization.

   Article 23 Those who drive motor vehicles shall hold driving-licenses of the People’s Republic of China (here after referred to as driving-
license).

Those who drive special vehicles for the disabled with power installation or those who ride motorbikes shall
hold operation certificates of special vehicles for the disabled of Shanghai or operation certificates of motorbike
of Shanghai (hereinafter referred to as operation certificate).

   Article 24 Those who apply for trainee driving licenses shall meet the following conditions:

1. Possessing residential certificate of this Municipality;

2. In line with the age stipulated by the State that is permitted to learn to drive; and

3. Being tested to be qualified in driving adaptability.

For those who are in line with the rules of the previous section and have been passed the test on knowledge of traffic laws
and regulations by the Municipal Traffic Administrative Department of Public Security, the Municipal Traffic Administrative
Department of Public Secretly shall ratify and issue the trainee driving license within 15 days after receipt of the application
for motor-vehicles driving and other relevant certificates.

   Article 25 Those who learn to drive motor vehicles on roads shall carry on the driving practice on the roads and at the time stipulated
by the Municipal Traffic Administrative Department of Public Security.

   Article 26 Those who apply for driving trainer’s certificates of motor vehicles shall meet the following conditions:

1. Having been motor vehicle driving for over 5 years; and

2. Having caused no major traffic accidents or having not been primarily liable for any ordinary traffic accident within the latest
3 years.

Those who meet the conditions of the previous Section and have passed the qualification test offered by the Municipal Department
of Public Security, the Municipal Traffic Administrative Department of Public Security shall verify and grant them driving
trainer’s certificates of motor-vehicles corresponding to the vehicle model permitted to be driven within 15 days after the
test.

Those who have not been granted driving trainer’s certificates of motor vehicles are not allowed to engage in training work

   Article 27 Those who have applied for driving licenses of motor vehicles shall take examinations given by the Municipal Traffic Administrative
Department of Public Security. For those who have passed the examinations, the traffic administrative department
of public security shall approve and grant them driving licenses whining 15 days after the examinations.

   Article 28 Those motor-vehicle drivers who need to practice in accordance with the State stipulations, shall hang signs indicating
driving-practice in their vehicles during practice period.

   Article 29 Those who apply for operation certificates shall meet the following conditions:

1. Having been registered as permanent resident of this Municipality; and

2. Having reached the age of 16.

For those who meet the provisions of the previous Section, and have passed the examinations given by the district or
county traffic administrative department of public security, the district or county traffic administrative department
of public security shall approve and grant them operation certificates within 15 days after the examinations.

Those who are disabled not in lower limbs shall not be allowed to apply for operation certificates of the special vehicles for
the disabled; those whose disabled limbs have affected driving shall not be allowed to apply for operation certificates of
motorbikes.

   Article 30 This Municipality implements the totting-up system of traffic offenses for motor vehicle drivers.

The traffic administrative department of public security shall penalize the motor vehicle drivers who have violated traffic
laws and shall record one or two points according to the seriousness of the case.

Motor-vehicle drivers who have been accumutalively registered 10 points within one year shall accept education on special topics
for traffic safety; motor-vehicle drivers who have been registered 20 points shall have their driving licenses canceled.

   Article 31 Drivers shall strengthen their sense of abiding by traffic laws and regulations and accept the traffic safety education concerning
traffic laws and regulations, safe driving skills, and professional ethics of driving.

Schools of traffic safety education at different levels shall perfect their rules and regulations, make their educational
program practicable, and raise the quality of education.

   Article 32 Those motor vehicle drivers who have been involved in one of the following situations shall take driving adaptability test anew:

1. Having caused a major traffic accident with serious liability or having been more than primarily liable for an ordinary
traffic accident; or

2. Needed to be engaged in public passenger transport;

Those motor-vehicle drivers who have been involved in one of the following situations shall take driving adaptability
test at regular intervals:

1. Having been engaged in transporting dangerous articles; or

2. Having reached the age of 60 and being required to continue driving motor vehicles.

Those motor-vehicle drivers who failed in the adaptability tests shall not be allowed to be engaged in driving motor-vehicles
for public passenger transport or transport of dangerous articles. Those drivers who failed to pass the comprehensive appraisals
shall not be allowed to be engaged in driving any motor-vehicles.

   Article 33 The traffic administrative department of public security shall examine and verify the driving licenses of all drivers at regular
intervals.

Those drivers whose driving licenses have not been examined and verified within the stipulated time or have been proved to be
unqualified after examination and verification shall not be allowed to drive motor- vehicles.

   Article 34 The following acts are forbidden:

1. Forging, falsely claiming as their own, or buying and selling passes for motor vehicles;

2. Forging, or altering without authorization operation certificates, or using forged, illegally altered operation certificates,
or using operation certificates by assuming the real owners’ names;

3. Continuing to drive vehicles after their driving licenses or operation certificates have been revoked or canceled;

4. Continuing to drive vehicles beyond the valid time of the suspension certificates after their driving licenses or operation
certificates have been suspended;

5. Using mobile phones while driving vehicles;

6. Those disabled not in lower limbs driving special vehicles for the disabled; or

7. Non-nursing staff riding in special vehicles for the disabled.

CHAPTER V THE TRAFFIC OF VEHICLES

   Article 35 Each vehicle shall run in its own lane. When a vehicle runs into an obstacle and must make use of another lane, it shall let
the vehicle that is running in that another lane have priority of passing.

   Article 36 The traffic administrative department of public security may adopt various measures of balancing traffic volume, dividing the
time for different vehicles, delimiting restricted areas for the passing vehicles, and approving and issuing motor vehicle
passes in accordance with the principles of necessity, reasonableness and favoring the unimpeded flow of traffic.

The traffic administrative department of public security may set up or regulate temporary parking spaces to cope with the traffic
situation on the road and temporary parking needs in accordance with the provisions of the relevant traffic regulations. The
setting-up of temporary parking spaces shall be under strict control and shall not block the traffic.

The traffic administrative department of public security shall report to the Municipal People’s Government for approval and
shall issue an announcement 10 days before the implementation of such major measures as closing arterial roads, organizing
regional one-way traffic network and pedestrians-only streets. But special and emergent cases are excepted.

   Article 37 The following vehicles are forbidden to run on roads:

1. Animal-driven carts, wheelbarrows, and jinn rickshaws;

2. Caterpillar motor-vehicles;

3. Motor pedicabs;

4. Motor vehicles towing full trailers; or

5. Other prohibited vehicles stipulated by the Municipal People’s Government.

Motorbikes with suburban numberplates are forbidden to run on roads in urban areas.

Tractors are not allowed to run in downtown areas and at the time and road sections closed to traffic as stipulated by
the municipal department of public security traffic administration.

   Article 38 The traffic administrative department of public security shall check and ratify traveling routes and stops in accordance
with the principles of public passenger transport vehicles having priority, making things convenient for city residents and
making things orderly and safe, and shall give an answer within 30 days after receiving the application for establishing
new routes and setting up new stops.

Buses, trams and trolley buses, buses for special routes, long-distance buses, and commuter passenger vehicles shall run or stop
according to ratified routes and stops.

Vehicles for transporting building garbage and project waste residues and excavated earth shall run according to the ratified
routes and time.

   Article 39 Those motor vehicles that are faced with traffic jams on the road ahead shall go in proper order and shall not stop on pedestrian
crossings or on the No-Parking-Line of the road when they need to wait for passing through.

   Article 40 Non-motor-vehicles shall not run on motor-vehicle lanes when they are running on roads with median strips separating motor-vehicle
lanes from non-motor-vehicle lanes.

Non-motor vehicles shall not run on motor-vehicle lanes when they are running on roads which divisional lines separating motor-vehicle
lanes from non-motor-vehicle lanes. But the following circumstances are excepted: when vehicles temporarily stop on non-motor-vehide
lanes; when there are obstacles on non-motor-vehide lanes; and when the road surface of the lane has been damaged and the non-motor
vehicle has to make use of the nearby motor-vehicle lane.

Non-motor vehicles are forbidden to stop beyond the divisional line and the halt line at the crossroads.

Vehicles are forbidden to run or stop willfully on side pavements.

   Article 41 Overpasses are specially meant for motor-vehicles and the following vehicles are forbidden to pass through:

1. Non-motor vehicles;

2. Light motorcycles and two-wheeled motorcycles;

3. Storage battery cars and special wheeled machine vehicles;

4. Tractors;

5. Vehicles hanging signs of test run and coach driving;

6. Vehicles towing construction machinery;

7. Articulated buses, vehicles with trailers, and freight vehicles loading over 8 tons;

8. Motor vehicles with the designed top speed below 60 km. per hour; or

9. Other motor vehicles stipulated by the Municipal People’s Government.

   Article 42 Lanes of overpasses are divided into fast lanes and slow lanes. When the road ahead is clear of obstructions, vehicles shall
run according to the speed signs shown along the lane.

   Article 43 Vehicles running on the overpasses are not allowed to shift lanes willfully.

Those vehicles that are running on the overpasses and need to shift lanes shall not shift two lanes at one time and shall
not affect other vehicles’ normal running.

   Article 44 Vehicles that are to run on the overpass shall be kept in good conditions and shall not break down for lack of electricity,
water, and peter, and shall not stop willfully. For those vehicles that cannot go on running because of breakdowns, the drivers
shall move them to the right side, install warning signs according to the rules, and report the breakdown in time.

   Article 45 The development programmer and construction of urban roads shall meet the needs of road traffic development and enhance
road capacity. The municipal, district and county people’s government shall organize departments of public works, city
planning and the traffic administrative department of public security to draw up the development programmer and construction
plan of urban roads and to put the programmer and plan into effect according to the overall plan of this Municipality.

The detailed plan of roads shall be submitted to the Municipal Traffic Administrative Department of Public Security for advice
and shall be reported to the Municipal People’s Government for decision if difference in opinion occurs.

   Article 46 The department of road construction shall take the needs of road traffic and administration into consideration in designing
roads and shall let the traffic administrative department of public security examine, verify and approve the scheme of organizing
traffic and designs of installations for traffic safety and intersection canalization. The traffic administrative department
of public security shall participate in check and acceptance when the road construction is completed.

   Article 47 When pipelines and streamers are installed stretching across a road, the edge of the lower part of these objects shall be
at a distance of no less than 520cm from the road surface. When objects stretching over the side pavement from the buildings
along the road, the edge of the lower part of these objects shall be at a distance of no less than 250cm from the road surface,
and the edge of the object shall be at a distance of no less than 20cm from the vehicle traffic lane.

   Article 48 The following acts that have occupied and used roads in such a manner so as to jeopardize traffic safety or disturb traffic order
are forbidden:

1. Dumping building garbage and project waste residues and excavated earth;

2. Setting up spots to clean or maintain motor vehicles; or

3. Installing marks and signs containing traffic instructions without authorization.

   Article 49 The traffic administrative department of public security shall install traffic signal lights, signs and line markings to meet
the needs of road traffic administration and the requirements for convenient recognition according to law and shall restore
and renew these damaged or incomplete traffic installations in time.

   Article 50 Traffic distributing centers such as the newly-built, or reconstructed, or extended railway stations, harbors, airports
underground railway and light railway stations with big flows of passengers, and newly-built public buildings and residential
buildings shall be equipped supplementary or additionally with parking lots (or garages) by the construction units according
to relevant laws and regulations. The reconstructed or extended public buildings, or residential buildings shall
also be supplementary or additionally equipped with parking lots (or garages) according to relevant laws and regulations.
Those units that have actual difficulties in providing sufficient parking spaces as required by relevant laws and regulations,
shall obtain the assent from the relevant department of administration and the traffic administrative department of public
security, and shall pay the cost for the construction of parking lots (or garages) that are deficient.

Parking lots (or garages) shall be designed, constructed and put into use simultaneously with the principal part of the project.

   Article 51 The traffic designs of parking lots (or garages) shall tally with the installation standards for parking lots (or garages) stipulated
by the State and this Municipality. The number of parking spaces, the position of the entrances and exits the installation
of traffic signs and line markings shall be examined, verified and approved by the traffic administrative department
of public security.

When the contraction of the parking lots (or garages) is completed, the construction units shall apply to the traffic administrative
department of public security that has originally verified and approved the project for checking and acceptance of the number
of parking spaces, the position for entrances and exits, the installation of traffic signs and line markings. After they
are checked and accepted, they may be made available to users. If they have not been checked or have been checked but not
accepted, they are not allowed to be made available to users.

Social parking lots (or garages) and parking lots (or garages) attached to public buildings shall be open to the vehicles of the
whole society.

   Article 52 When there is a change in the use of the parking lots (or garages), approval of the administrative departments of planning
and construction and the assent of the traffic administrative department of public security shall be obtained, and new parking
spaces shall be built to make up the deficiency of parking spaces, or an amount equivalent to 130% of the construction cost
of the deficient number of parking spaces shall be paid.

The deficient construction cost shall be collected by the municipal administrative department of construction and it shall
be specifically used for building social parking lots (or garages), and shall not be diverted to other purposes.

   Article 53 The traffic administrative department of public security has the power to tow away following motor vehicles by compulsory means:

1. Those parked in violation of traffic regulations;

2. Those unable to run due to traffic accident; or

3. Those unable to run due to breakdowns and impeding road traffic.

CHAPTER VII PROPAGANDA AND EDUCATION FOR TRAFFIC SAFETY

   Article 54 Under the leadership of the people’s government at the same level, the traffic administrative department of public security conducts
propaganda and education for traffic safety, and perform the following duties:

1. Formulating and implementing examination and verification of responsibility and objective for traffic safety and measures
of rewards and penalties;

2. Guiding and supervising various units in implementing the system of responsibility for traffic safety;

3. Organizing competitions for traffic safety and activities of appraisal through comparison; and

4. Carrying out other activities of propaganda and education for traffic safety.

   Article 55 A unit shall clearly appoint persons to specially take charge of the work of traffic safety and perform the following duties:

1. Organizing people to formulate its own system of traffic safety, implementing responsibilities and objectives for traffic
safety and taking preventive measures;

2. Organizing the study of knowledge about traffic safety;

3. Organizing the inspections of vehicle safety, so as to guarantee the safety of vehicles, and to remove in time a hidden peril
of an accident.

   Article 56 A unit shall launch activities of propaganda and education for traffic safety among staff members.

Middle schools and primary schools shall carry out educational activities on special topics of traffic safety taking
content of knowledge of traffic safety as content.

   Article 57 Departments of the press publication broadcast, film, television, culture, and education, and mass organizations such as
trade unions, the women’s federation, and the Communist Youth

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