2004

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING THE STATE OF SORTING OUT AND CONSOLIDATION OF NON-EXPERIMENTAL FOREIGN BUSINESS INVESTED COMMERCIAL ENTERPRISES

Category  FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-07-01 Effective Date  1998-07-01  


Circular of the General Office of the State Council Concerning the State of Sorting out and Consolidation of Non-experimental Foreign
Business Invested Commercial Enterprises



(July 1,1998)

    To uphold the uniformity and seriousness of the policy of experiment
of absorbing investment by foreign businesses in the commercial sector in
China, ensure sound and orderly progress of the experiment, former State
Planning Commission, former Ministry of Domestic Trade, the Ministry of Foreign Economic Relations and Trade and the State Administration
of Industry and Commerce formed, in pursuance of the spirit of the <of the General Office of the State Council Concerning the Questions Related
to Sorting out and Consolidation of Non-experimental Foreign Business
Invested Commercial Enterprises>>(Kuo Ban Fa No.[1997]26), a sorting out
and consolidation group and starting from August 1997, conducted sorting out
and consolidation of foreign business invested commercial enterprises the
establishemnt of which were approved by all localities on their own beyond
their mandate. Upon the approval of the State Council, the state of sorting
out and consolidation is hereby notified as follows:

    I.Permission has been granted to 42 foreign business invested commercial
enterprises to continue operations within the duration of joint operations
after examination and verification of the percentage of contribution made by
foreign businesses, the status of capital in place, duration of joint
operations, business scope and status of operations in accordance with
relevant state policy of absorbing foreign business investment in the
commercial sector.

    II.199 foreign business invested commercial enterprises need to make
rectifications after sorting out. Specific requirements for rectification
are:the percentage of contribution and profit-sharing of the Chinese side
in a foreign business invested commercial enterprise must be over 50%(over
40% in the midwest region), holdings of chain stores and warehouse marts
must be controlled by the Chinese side, duration of joint operations shall
not exceed 30 years(not exceeding 40 years in the midwest region) and they
shall not operate wholesale business; commercial enterprises of sole
foreign business investment shall, in accordance with the above-mentioned
standards, be transformed into Sino-foreign joint ventures or Sino-foreign
cooperative commercial enterprises. Sorting out and consolidation groups
formed in all localities should, by the end of 1998 and in pursuance of the requirements, complete rectification of the above-mentioned
enterprises
and submit reports to the State Development and Planning Commission, the
Ministry of Foreign Economic Relations and Trade, the State Administration
of Industry and Commerce and the State Administration of Domestic Trade
for examination and verification.

    III.The aforesaid enterprises permitted to continue operations after
sorting out and consolidation and the rectified enterprises found to be
in line with the requirements after examination and verification shall
have no right to operate import and export, shall not operate wholesale
business, shall not expand the business scope and scale of construction
any more, shall not open branches and extend the duration of joint operations
and shall not benefit from the policy of tax reduction and tax exemption for
import equipment and materials for own use.

    IV.With respect to the 36 foreign business invested commercial
enterprises examained and approved after the issuance of the <Circular of the General Office of the State Council Concerning the
Immediate Stoppage of Examination and Approval of Foreign Business
Invested Commercial Enterprises by Localities on their own>>(Kuo Ban Fa
Plain Code Telegram No.[1997]15), capital not injected in accordance with
the time prescribed, that have failed to pass annual inspection or failed to
take part in annual inspection, as well as those foreign business invested
commercial enterprises that fall within the scope of sorting out and
consolidation but have failed to submit a report shall be revoked the
original approval certificates by departments of foreign economic relations
and trade and departments of industry and commerce administration at the
provincial level, and formalities of nullification of registration or
revocation of business licenses completed.

    V.The State Development and Planning Commission, the Ministry of Foreign
Economic Relations and Trade, the State Administration of Industry and
Commerce and the State Administration of Domestic Trade shall jointly
issue a document notifying all localities of detailed list of the aforesaid
non-experimental foreign business invested commercial enterprises retained,
rectified and nullified(revoked), and shall be responsible for the
supervision of implementation.

    VI.Local people’s governments that arbitrarily exceeded the mandate of examination and approval of foreign
business invested commercial enterprises
in contravention of the state policy of experiment in absorbing foreign
business investment in the commercial sector and in particular the People’s
Governments of the Municipalities of Chongqing, Chengdu, Xian and Nanchang
that still approved the establishment of non-experimental foreign business
invested commercial enterprises on their own after the issuance of the
<> are meted out criticism in the circular. All localities
should learn a lesson therefrom and do the work well of successful handling
of rectification and correction and nullification (revocation) of non-
experimental foreign business invested commercial enterprises in accordance
with the requirements of this Circular.

    China will continue to implement the policy of actively, rationally and
effectively make use of foreign investment in the light of the spirit of the
15th National Congress of the Chinese Communist Party and expand the opening
up to the outsdie world in the commercial sector step by step on the basis of summing up the experiences in experiment. People’s
governments of all
localities should carry out their work in pursuance of the state policy
and the unified arrangement of the State Council and each shall not
act in its own way, be strict in the execution of orders and prohibitions
and jointly uphold the seriousness of the state policy so as to ensure that
the work of absorption of foreign business investment proceeds in a sound and
orderly way.






OFFICIAL REPLY OF THE SUPREME PEOPLE’S COURT TO THE QUESTION HOW TO LIQUIDATE A JOINT VENTURE IN THE TRIAL OF A DISPUTE CASE ARISING FROM THE CHINESE-FOREIGN JOINT VENTURE CONTRACT

the Supreme People’s Court

Announcement of the Supreme People’s Court

Fa Shi [1998] No.1

Official Reply of the Supreme People’s Court to the Question on How to Liquidate a Joint Venture in the Trial of a Dispute Case Arising
from the Chinese-Foreign Joint Venture Contract, adopted at the 950th Meeting of the Judicial Committee of the Supreme People’s Court
on December 5, 1997, is promulgated on January 15, 1998 and comes into force as of the date of its promulgation.

the Supreme People’s Court

January 15, 1998

Official Reply of the Supreme People’s Court to the Question How to Liquidate a Joint Venture in the Trial of a Dispute Case Arising
from the Chinese-Foreign Joint Venture Contract

To the Higher People’s Court of Shandong Province:

The Report on Request for Instruction to the Question How to Liquidate a Joint Venture in the Trial of a Dispute Case Arising from
the Chinese-Foreign Joint Venture Contract [(1996) Lu Jing Chu Zi No.44] has been received. After deliberation, the reply is hereby
given as follows:

The first opinion in your court’s request for instructions is agreed, i.e., where the foreign party to the Chinese-foreign equity
joint venture brings a lawsuit in the People’s Court, claiming that the joint venture be dismissed and claiming the other party’s
liabilities for breach of contract, the People’s Court shall make a judgment on such issues as the validity of the joint venture
contract, whether to terminate the joint venture contract, and the liability for breach of contract, etc.. The issue concerning the
liquidation of the joint venture shall be handled in accordance with the relevant provisions of Regulations for the Implementation
of Law of the People’s Republic of China on Chinese-foreign Equity Joint Ventures, and Measures for the Liquidation of Foreign-Invested
Enterprises. And the liquidation organized by the People’s Court has no legal basis. If a domestic limited liability company has
a similar situation, the relevant provisions of the Company Law of the People’s Republic of China shall apply.



 
the Supreme People’s Court
1998-01-15

 







CIRCULAR OF THE STATE COUNCIL CONCERNING ORGANIZATIONAL STRUCTURE

Category  STATE INSTITUTIONS Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-03-29 Effective Date  1998-03-29  


Circular of the State Council Concerning Organizational Structure



(March 29, 1998)

    People’s government of the province, autonomous region and municipality
directly under the Central Government, ministries and commissions of the State
Council, organizations directly under the State Council:

    In accordance with the Restructuring Plan for Component Departments under
the State Council adopted through deliberation at the First Session of the
Ninth National People’s Congress, and the Restructuring Plan for Organizations
Directly under the State Council, Working Organs of the State Council and
Institutions directly under the State Council approved through deliberation at
the First Plenary Meeting of the State Council, the State Council’s
organizational structure is hereby circulated as follows:

    I. General Office of the State Council of the People’s Republic of China

    II. Ministries and Commissions as Component Departments of the State
Council

    Ministry of Foreign Affairs of the People’s Republic of China

    Ministry of National Defence of the People’s Republic of China

    State Development Planning Commission of the People’s Republic of China

    State Economic and Trade Commission of the People’s Republic of China

    Ministry of Education of the People’s Republic of China

    Ministry of Science and Technology of the People’s Republic of China

    Commission of Science, Technology and Industry for National Defence of the
People’s Republic of China

    State Ethnic Affairs Commission of the People’s Republic of China

    Ministry of Public Security of the People’s Republic of China

    Ministry of State Security of the People’s Republic of China

    Ministry of Supervision of the People’s Republic of China

    Ministry of Civil Affairs of the People’s Republic of China

    Ministry of Justice of the People’s Republic of China

    Ministry of Finance of the People’s Republic of China

    Ministry of Personnel of the People’s Republic of China

    Ministry of Labour and Social Security of the People’s Republic of China

    Ministry of Land and Natural Resources of the People’s Republic of China

    Ministry of Construction of the People’s Republic of China

    Ministry of Railways of the People’s Republic of China

    Ministry of Communications of the People’s Republic of China

    Ministry of Information Industry of the People’s Republic of China

    Ministry of Water Resources of the People’s Republic of China

    Ministry of Agriculture of the People’s Republic of China

    Ministry of Foreign Trade and Economic Co-operation of the People’s
Republic of China

    Ministry of Culture of the People’s Republic of China

    Ministry of Public Health of the People’s Republic of China

    State Family Planning Commission of the People’s Republic of China

    People’s Bank of China

    Auditing Administration of the People’s Republic of China

    The Ministry of Supervision will be merged with the CPC Central Commission
for Discipline Inspection, with its organizational structure listed under the
series of the State Council and its staff belonging to the departments under
the CPC Central Committee.

    III. Organizations Directly under the State Council

    General Administration of Customs of the People’s Republic of China

    State Administration of Taxation

    State Bureau of Environment Protection

    Civil Aviation Administration of China

    State Administration of Radio, Film and Television

    State Sports Administration (merging with All-China Sports Federation but
having their respective names retained)

    State Statistical Bureau

    State Administration for Industry and Commerce

    Press and Publication Administration of China (State Copyright Bureau)

    State Forestry Bureau

    State Bureau of Quality and Technological Supervision

    State Bureau of Pharmaceutical Supervision and Administration

    State Bureau of Intellectual Property Rights

    National Tourism Administration

    State Bureau of Religious Affairs

    Counsellors’ Office under the State Council

    Bureau of Government Offices Administration under the State Council

    IV. Working Organs of the State Council

    Foreign Affairs Office of the State Council

    Office of Overseas Chinese Affairs of the State Council

    Hongkong and Macao Affairs Office of the State Council

    Legislative Affairs Office of the State Council

    Economic Restructuring Office of the State Council

    Research Office of the State Council

    V. Institutions Directly under the State Council

    Xinhua News Agency

    Chinese Academy of Sciences (Academia Sinica)

    Chinese Academy of Social Sciences

    Chinese Engineering Academy

    Development Research Centre under the State Council

    State Administrative College

    National Seismological Bureau

    National Meteorological Bureau

    Securities Supervisory and Regulatory Commission of China

    The Foreign Affairs Office of the State Council will continue to work on
behalf of the Office of the Foreign Affairs Directorate of the CPC Central
Committee and undertake specific tasks of the latter. The Taiwan Affairs
Office of the State Council and the Taiwan Affairs Office of the CPC Central
Committee will be merged into one with their respective names retained and
included into the series of the departments under the CPC Central Committee.
So do the Information Office of the State Council and the International
Communication Office of the CPC Central Committee.

    The State Archives Bureau and the Central Archives will be merged into one
with their respective names retained and included into the subsidiary
institutions of departments under the CPC Central Committee.






CIRCULAR OF THE STATE COUNCIL CONCERNING THE FURTHER CONSOLIDATION AND STANDARDIZATION OF FUTURES MARKETS

Category  BANKING Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-08-01 Effective Date  1998-08-01  


Circular of the State Council Concerning the Further Consolidation and Standardization of Futures Markets



(August 1, 1998)

    In pursuance of the arrangement of the State Council, China Securities
Supervision and Control Commission(hereinafter referred to as China
Securities Commission) has stepped up the work of consolidating and
standardizing future markets. Through the efforts in the last few years,
the momentum of blind development of futures markets in China has been
effectively contained with the gradual standardization of market conduct and
strebgthening of supervision and control capability. However, there still
exist at present certain problems in the futures markets which brook no
negligence, among which the most outstanding ones are the excessive number
of futures exchanges and futures brokerage institutions and non-standardi-
zation of operations; a small number of institutions and individuals joining
hands in manipulating the markets and seeking exorbitant profits; existence
of illegal acts of engaging in overseas futures and foreign exchange trading
on margin; weakness in supervision and control forces of the supervision
and control departments and backwardness of the means of supervision and
control. With a view to strengthening the supervision and control of the
futures markets in real earnest, preventing and absolving market risks and
ensuring the smooth carrying out of the experiments of the futures markets,
the relevant questions are hereby notifed as follows in the light of the
spirit of the national conference on finance work and the unified
arrangement of the Central Committee of the Chinese Communist Party and
the State Council:

    I.Continuation in the Consolidation, Disbandment and Amalgamation of
Futures Exchanges

    (I)The existing 14 futures exchanges shall be consolidated, disbanded and
amalgamated and only 3 futures exchanged shall be retained in Shanghai,
Zhengzhou and Dalian in accordance with the principle of “continuation of the
experiment, strengthening of supervision and control, standardization
according to law and prevention of risks”. The futures exchanges retained
shall practise centralized uniform management and futures exchanges shall be
put under the direct administration of China Securities Commission, taking
the management system of stock exchanges as reference. The general manager
and deputy general manager(s) of a futures exchange shall be appointed by
China Securities Commission, and the chairman and vice chairman(chairmen) of
the board of directors shall be nominated by China Securities Commission and
elected by the board of directors.

    (II)Detailed measures of adjustment are as follows:

    1.Amalgamation in the same city. Upon appraisal of properties and
funds, Shanghai Metal Exchange, Shanghai Commodities Exchange and Shanghai
Foodgrains and Oils Commodities Exchange shall be amalgamated into Shanghai
Futures Exchange in accordance with the principle of “unified institution,
unified finance, uniform trading, uniform settlement and uniform rules”.

    2.Networking in different cities. Excluding the maintenance of Shanghai
Futures Exchange, Zhengzhou Commodities Exchange and Dalian Commodities
Exchange, other futures exchanges shall be reorganized as company-based
local trading halls or local offer halls and conduct net trading with the
above-mentioned 3 futures exchanges. Local trading halls or local offer halls
shall provide the members of futures exchanges with trading seats in
different cities and services of note issuance and shall not engage in
listing of futures categories, shall not engage in match-making in trading
and shall not handle settlement business. Local trading halls or local offer
halls shall enjoy corporate status and be committed independently to the
debtor-creditor relationship of the original futures exchanges.

    3.To achieve stable transition, the futures exchanges not to be
retained can also be reorganized by adopting various modes:first,
reorganization as futures brokerage firms; and second, reorganization
as securities management agencies where conditions mature.

    II.Cancellation of Part of Futures Trading Categories of Commodities
and Increment in the Futures Trading Guaranty Funds of Part of Commodities
Varieties

    To give full play to the functions of futures markets in the discovery
of price and hedging and to further curb over-speculation, the number of commodities futures trading varieties shall be cut down
from 35 to 12,
cancelling 23 categories. 12 commodities varieties of copper, aluminium,
soya bean, wheat, soya bean scum, green bean, natural rubber, plywood,
indica rice, beer barley, red bean and peanut kernel shall be retained.

    Increment in the futures trading guaranty funds of part of commodities
varieties. The rate of minimum trading guaranty funds shall be maintained
at the existing 5% without change for the 3 commodities varieties of copper,
aluminium and soya bean which have a better function in hedging and are
not easy to scalp, the rate of minimum trading guaranty funds for the other
9 commodities varieties shall be raised to 10%. Shanghai Futures Exchange,
Zhengzhou Commodities Exchange and Dalian Commodities Exchange shall
re-design the futures contracts and engage in listing and trading upon
the verification and approval of China Securities Commission. Henceforth,
China Securities Commission may in the light of market demand adjust the
listing varieties and fix the rate of minimum trading guaranty funds.

    III.Banning Illegal Futures Brokerage Activities, Sorting out and
Consolidating Futures Brokerage Agencies

    (I)Revocation of futures brokerage qualification of members of all
non-futures brokerage firms and no agency or individual shall engage in
futures brokerage business without the approval of China Securities
Commission. Departments of industry and commerce administration shall,
in conjunction with China Securities Commission, conduct in a serious
manner investigation and handling with respect to agencies or individuals
engaging in illegal futures brokerage business under various names and
impose a firm ban thereon.

    (II)Raise of the rate of minimum registered capital of futures brokerage
firms and promotion of amalgamation and reorganization of futures brokerage
firms to achieve scale operations. Rate of minimum registered capital of a
futures brokerage firm shall be worked out separately by China Securities
Commission.  

    (III)No futures brokerage firm shall engage in own-account futures
business operations, further sorting out and consolidation shall be carried
out with respect to agency business and standardization of all links in
trading realized so as to put risks under strict control.

    (IV)Perfection of annual inspection system, nullification of futures
brokerage firms not in keeping with the provisions, and adequate support
rendered to big-size brokerage firms with standardized operations and good
credit standing.

    IV.Strict Control over Overseas Futures Trading

    The State Council hereby reiterates once again that no agency or
individual shall, without approval, engage in overseas futures trading
on its/his/her own and no futures brokerage firm shall engage in overseas
futures business. For the small number of import and export enterprises
which have the actual requirements to exploit overseas futures markets in
hedging, China Securities Commission shall, in conjunction with the State
Economic and Trade Commission and the Ministry of Foreign Economic Relations
and Trade, carry out strict examination and verification and upon submission
to and approval by the State Council, issue overseas futures business
licences. No enterprise without obtaining the overseas futures business
licence shall engage in overseas futures trading under any pretext and
in any form. Enterprises having obtained overseas futures business licences
shall only be permitted to engage in hedging in overseas futures markets
and shall not engage in speculative trading. The State Economic and Trade
Commission and the Ministry of Foreign Economic Relations and Trade shall,
in conjunction with China Securities Commission, determine the trading
varieties and the maximum futures trading turnover in accordance with the
import and export commodities categories and actual trade volume of those
enterprises, and China Securities Commission shall designate their overseas
futures brokerage agencies and overseas futures exchanges.

    Overseas Chinese-capital agencies shall be prohibited to engage in
overseas futures trading on their own without approval, those in violation
thereof shall be investigated of the liability of the personnel involved.
The State Economic and Trade Commission and the Ministry of Foreign Economic
Relations and Trade shall carry out sorting out and consolidation of industrial and foreign trade enterprises already engaging in
overseas
futures trading and report the results of consolidation to the State
Council and despatch a copy simultaneously to China Securities Commission.

    China Securities Commission shall, in conjunction with the departments
concerned, strengthen the supervision and control over illegal overseas
futures trading. China Securities Commission shall, in conjunction with the
departments concerned, investigate and handle cases involving securities
operating agencies’ and futures brokerage agencies’ operations in overseas
futures in violation of law; the State Administration of Industry and
Commerce shall, in conjunction with the departments concerned, investigate
and handle cases involving other agencies illegally engaging in overseas
futures. Stern penalties shall be meted out to enterprises and overseas
Chinese-capital agencies engaging in overseas futures trading on their own
in violation of the afore-said provisions, persons-in-charge and persons
directly responsible of the enterprises shall be imposed the penalty from
removal from office to expulsion by their higher competent departments,
and the leadership of their higher competent departments shall be
investigated of their responsibilities; where a crime has been constituted,
the case shall be transferred to the judicial organ for the investigation
of criminal liability according to law.

    V.Acceleration of Legislation and Further Strengthening of Supervision
and Control over Futures Markets

    As futures markets are highly risky and speculative, legislation for
futures markets shall be accelerated to realize supervision and control
in accordance with law. The Legislative Affairs Office under the State
Council and China Securities Commission should make good use of time in
drafting the regulations on futures trading administration to be submitted
to the State Council for review. China Securities Commission should further
step up supervision and control over futures markets, standardize and unify
the rules of futures markets on trading, settlement and delivery. Financial
institutions, institutions, Party and government organs are strictly
prohibited to participate in futures trading, state-owned enterprises
are strictly prohibited to engage in futures trading in violation of regulations, credit funds and financial funds are strictly prohibited
to flow into futures markets in any form, and financial institutions shall
not provide financing or guaranty for futures trading. No institution shall
engage in financial futures trading without approval. Domestic financial
institutions’ foreign exchange trading in violation of regulations shall
be investigated and handled in accordance with law. Internal management of and external supervision and control over the financial
institutions
engaging in forward exchange as well as straddling, exchange rate swap and
other businesses shall be strengthened.

    As of the date of issuance of this Circular, all futures exchanges shall
stop forthwith to roll out any new contract, trading may be conducted to the
last trading day for the contracts already listed. As of January 1, 1999,
operations shall start officially in accordance with the new futures
commodities varieties and rate of trading guaranty funds. China Securities
Commission should further step up supervision and control and intensify its
efforts in law enforcement. All regions and departments should earnestly
implement the spirit of this Circular, exerting efforts in coordination and
rendering active support for China Securities Commission in doing well the
work of futures markets standardization and consolidation so as to maintain
market and social stability.






CIRCULAR CONCERNING PUBLISHING THE SECOND CATALOGUE OF FUNDS (SURCHARGES, FEES) TO BE ABOLISHED

Category  FINANCE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-05-28 Effective Date  1998-05-28  


Circular Concerning Publishing the Second Catalogue of Funds (Surcharges, Fees) to Be Abolished


APPENDIX: SECOND CATALOGUE OF FUNDS (SURCHARGES, FEES) TO BE ABOLISHED

(Approved by the State Council and promulgated by the Ministry of Finance,

the State Economy and Trade Commission, the State Development Planning
Commission, the Auditing Administration, the Ministry of Supervision and the
State Council Office for Correcting Malpractices in All Trades and Professions
on May 28, 1998)

    To implement the Decision of the Chinese Communist Party Central Committee
and the State Council on Curbing Acts of Indiscriminately Levying Fees, Fines
on Enterprises or Transferring Resources from Enterprises in various forms of
Apportionment (Document Zhongfa [1997] No. 14, hereinafter referred to as
“Decision”) and to lighten enterprises’ burden in real earnest, it has been
decided to publish the second catalogue of funds (including surcharges, fees,
the same below) to be abolished with the approval through rectification by the
State Council Inter-Ministerial Joint Meeting for Lightening Enterprises’
Burden and with the consent of the State Council leaders. We hereby circulate
some points of this matter as follows:

    1. Projects of funds to be abolished in this catalogue include those which
were constituted by relevant departments of the State Council and people’s
governments or government departments of provinces, autonomous regions and
municipalities directly under the Central Government beyond their terms of
reference but not reported for approval of the State Council or the Ministry
of Finance according to state provisions, or which are not found reasonable
and should be abolished, amounting to 147 items totally (See the Appendix for
the details).

    From the date of promulgation of this Circular, these projects of funds
abolished by publishing should be stopped promptly. Other projects of funds
having been worked out by localities and departments should, if they are
analogous to these abolished by publishing in this Circular, be abolished as
well with reference to the provisions of this Circular.

    2. Each locality and each department are urged according to the
requirements of the Decision to resolutely abolish projects of funds having
been abolished by publishing in this Circular, check them item by item, and
should not refuse the fulfilment on any pretext or in disguised form.
Difficulties after the abolition of projects of funds such as deficiency of
money in undertakings should be properly overcome and tackled by localities
and departments. Citizens, legal persons and other social organizations have
the right to refuse to pay funds having been abolished.

    3. The Office of the State Council Ministry-level Joint Meeting for
Lightening Enterprises’ Burden and working organs for lightening enterprises’
burden in province, autonomous region and municipality directly under the
Central Government should organize special forces in exercising inspections on
key projects of funds having been abolished. If there is any project having
not yet been abolished or stopped according to provisions, all earnings
illegally obtained therefrom must be confiscated and handed over to the
Central Treasury; besides, persons-in-charge chiefly responsible and persons
directly responsible in localities or departments concerned shall be
investigated for responsibilities according to provisions.

    4. Each locality and each department must, in strict accordance with the
provisions of the Decision of the Chinese Communist Party Central Committee
and the State Council, submit their applications for constituting funds to the
Ministry of Finance that shall examine and decide on the cases in conjunction
with relevant departments. If the fund to be constituted is important, the
case shall be reported to the State Council for approval. Without approval of
the State Council or the Ministry of Finance together with relevant
departments, no fund can be constituted.

APPENDIX: SECOND CATALOGUE OF FUNDS (SURCHARGES, FEES) TO BE ABOLISHED

                        Projects                      
Documents as Basis

                                                            of
Levying
——————————————————————————

    1. Approved by Relevant Departments

       of the State Council
——————————————————————————
(1)   Salt Industry Production and Development      Jiaqingzi No. (89)805

      Fund
——————————————————————————
(2)   Gold Exploitation Fund                        Huangjigong
No. (89)282
——————————————————————————
(3)   Fund for Maintaining Simple Reproduction      Meicaizi No. (85)12

      in Mines
——————————————————————————
(4)   Education Fund for Real Estate and            Jianjiao
No. (94)20

      Construction
——————————————————————————
(5)   Education Fund of Ministry of Radio,          Guangfajiaozi No.
(94)547

      Film and Television
——————————————————————————
(6)   Resources Comprehensive Utilization and       Jibanziyuan No. (88)148

      Exploitation Fund
——————————————————————————
(7)   Traditional Chinese Medicinal Materials       Yiyaoliancaizi No. (83)327

      Development Fund
——————————————————————————
(8)   Science and Education Fund                    Jiaocaizi
No. (87)828
——————————————————————————

    2. Approved by Governments at Provincial

       Level and Their Departments
——————————————————————————
(9)   Surcharge for Extra Consumption              
Decree Jingzheng No. (92)17
——————————————————————————
(10)  Technology Markets Development Fund           Decree Jingzheng No.
(90)38
——————————————————————————
(11)  Supplementary Fund for Building Materials     Jingzhengfa No. (89)61

      Development
——————————————————————————
(12)  Development Fee for Advertisement             Jinzhengfa
No. (94)56

      Education Undertakings
——————————————————————————
(13)  Surcharge of Construction Units from          Jincaiyu No. (88)44

      Other Localities
——————————————————————————
(14)  Gas Production and Development Fund           Jincaiqiyi NO. (90)130
——————————————————————————
(15)  Installation Fee for New Gas Fittings         Jinjiazhongzi No. (91)160
——————————————————————————
(16)  Education Prize Fund for Urban Construction   Jinjianjiaozi No. (90)605
——————————————————————————
(17)  Gold Production and Exploitation Fund         Jizheng No. (94)83
——————————————————————————
(18)  Installation Fee for Fire Fighting            Jicaizongzi
No. (96)17

      Equipment
——————————————————————————
(19)  Fund for Storing Chemical Fertilizer          Jihuagongzi No. (89)15

      in Winter
——————————————————————————
(20)  Foreign Trade Regulation Fund                
Jinzhengfa No. (91)54
——————————————————————————
(21)  Surcharge for Urban Passenger Transport       Jinjianke No. (93)84
——————————————————————————
(22)  Adjustment Fund for Labour Insurance          Neijianshizi No. (93)550
——————————————————————————
(23)  Fund for Management of Surveying and          Neijianshizi No. (94)11

      Designing of Construction Projects
——————————————————————————
(24)  Surcharge of Civil Aviation Passenger         Liaozhengfa No. (93)51

      Transport
——————————————————————————
(25)  Surcharge of Waterway Passenger and           Liaozhengfa No. (92)74

      Cargo Transport
——————————————————————————
(26)  Fund for Development in Construction          Liaojianfa No. (90)100

      Industry by Science and Technology
——————————————————————————
(27)  Fund for Building Roads and Bridges in        Jishengjiashouhanzi

      Cities                                        No.
(95)19
——————————————————————————
(28)  Gold Exploitation Fund                        Jizhengfa
No. (95)33
——————————————————————————
(29)  Reed growing Fund                            
Jijiazi No. (94)63
——————————————————————————
(30)  Fund for the First Phase of Transformation    Jishengjiamingdian

      and Reconstruction Project in the Jilin       No. (94)14

      Heat and Power Plant
——————————————————————————
(31)  Fund for Protection and Treatment of          Jijia(94) zhongzi
No. 1

      Three Lakes on the Ronghua River
——————————————————————————
(32)  Fund for Readjusting Price in Salt            Jishengjianongzi
No. (93)8

      Industry
——————————————————————————
(33)  Fund for Key Electric Power Construction      Heizhengfa No. (91)92

      Projects
——————————————————————————
(34)  Fund for Mechanization and Development        Heizhengfa No. (90)63

      through Science and Technology in Mines
——————————————————————————
(35)  Fund for Readjusting Wholesale Discount       Heicaizongzi No. (87)69
——————————————————————————
(36)  Capacity Expansion Fee for Construction       Heicaizongzi No. (94)137

      of Roads and Bridges for Motor Vehicles
——————————————————————————
(37)  Fund for Construction of Hydroelectric        Heijigong No. (93)803

      Stations
——————————————————————————
(38)  Drainage Capacity Expansion Fee              
Huzhengfa No. (87)70
——————————————————————————
(39)  Surcharge for Extra Consumption              
Hufuban No. (87)142
——————————————————————————
(40)  Adjustment Fund for Construction              Hufuban
No. (91)104

      Enterprises from Other Localities
——————————————————————————
(41)  Electricity Transmission Fund for Poverty     Suzhengfa No. (94)46

      Relief
——————————————————————————
(42)  Technological Progress Fund                  
Suzhengfu No. (88)57
——————————————————————————
(43)  Fund for Construction of Roads across         Suzhengfa No. (91)148

      the River
——————————————————————————
(44)  Zhenjiang Expressway Construction Fund        Sucaizong No. (94)214
——————————————————————————
(45)  Suzhou Local Communications Construction      Sucaizong No. (94)210

      Fund
——————————————————————————
(46)  Yixing Traffic Infrastructure Construction    Sucaizong No. (94)217

      Fund
——————————————————————————
(47)  Wuxi County Road Infrastructure              
Sucaizong No. (94)217

      Construction Fund
——————————————————————————
(48)  Baby Bearing and Breastfeeding Fund for       Sucaizong No. (94)215

      Changzhou Woman Workers
——————————————————————————
(49)  Surcharge for Local Facilities Construction   Sucaizong No. (94)215

      in Changzhou
——————————————————————————
(50)  Fund for Transformation Project of            Sucaizong
No. (94)215

      Changzhou Railway Station
——————————————————————————
(51)  Wujin County Traffic Construction Fund        Sucaizong No. (94)215
——————————————————————————
(52)  Hai’an Agricultural Development Fund          Sucaizong No. (94)219
——————————————————————————
(53)  Fund for Construction Project of Hai’an       Sucaizong No. (94)219

      Black Road Surface
——————————————————————————
(54)  Yangzhou Capital Construction Surcharge       Sucaizong No. (94)216
——————————————————————————
(55)  Xinghua City Highway Construction Fund        Sucaizong No. (94)216
——————————————————————————
(56)  Surcharge for Additional Vehicles in          Sucaizong No. (94)212

      Huaiyin
——————————————————————————
(57)  Fund for Key Communications Construction      Sucaizong No. (94)220

      Projects in Yancheng
——————————————————————————
(58)  Special Reclamation Fund                      Zhezhengfa
No. (93)251
——————————————————————————
(59)  Expressway Construction Fund                  Zhezhengban
No. (90)1
——————————————————————————
(60)  Small Hydropower Stations Construction        Zheshuizheng No. (95)100

      Fund
——————————————————————————
(61)  Adjustment Fund for Agriculture-used          Wanzhengfa No. (92)20

      Electricity
——————————————————————————
(62)  Scientific and Technological Development      Wanzhengfa No. (92)82

      Fund for Real Estate Development
——————————————————————————
(63)  Surcharge for Waterway Transport Goods        Wanjiaocai No. (92)156
——————————————————————————
(64)  Coal Exploitation Fund                        Minzheng(87)zong
No. 372
——————————————————————————
(65)  Fund for Promoting Electricity Generation     Minzheng(91)zong No. 250

      By Electricity Generation
——————————————————————————
(66)  Loan Repayment Fund for Petroleum Equipment   Minzheng(90)ban No. 46
——————————————————————————
(67)  Highway Construction Fee for Land             Minzheng(92)zong
No. 338

      Development
——————————————————————————
(68)  Local Hydropower Stations Construction Fund   Minzheng(91)zong No. 250
——————————————————————————
(69)  Tax Sources Development Fund                  Mincaishui(93)
No. 108
——————————————————————————
(70)  Electricity Price Adjustment Fund             Minzheng(88)zong
No. 65
——————————————————————————
(71)  Surcharge of Land Use for Construction        Ganfuling No. (94)39
——————————————————————————
(72)  Coal Exploitation Fund                        Ganfufa
No. (91)40
——————————————————————————
(73)  Electricity Network Transformation Fund       Ganfufa No. (87)22
——————————————————————————
(74)  Surcharge of Electricity Fee                  Gancaigongzi
No. (79)7
——————————————————————————
(75)  Small Hydropower Stations Construction Fund   Ganfutingfa No. (89)86
——————————————————————————
(76)  Construction Fee for Fire Fighting            Ganfufu
No. (96)73

      Equipment
——————————————————————————
(77)  Surcharge on Motor Vehicles                  
Ganjiafeizi No. (90)162
——————————————————————————
(78)  Aquatic Products Development Fund             Luzhengfa
No. (88)94
——————————————————————————
(79)  Urea Adjustment Fund                          Luzhengfa
No. (84)17
——————————————————————————
(80)  Surcharge for Using Electricity              
Luzhengfa No. (93)24
——————————————————————————
(81)  Scientific and Technological Development      (88)Lukejizi No. 54

      Fund
——————————————————————————
(82)  Cement Price Adjustment Fund                  Lujiancaijizi
No. (92)141
——————————————————————————
(83)  Export Goods Development Fund                
Lujingmaocai No. (93)23
——————————————————————————
(84)  Overseas Enterprises Development Fund         Lujingmaocaizi No. (92)84
——————————————————————————
(85)  Cultural and Artistic Development Fund        Yuzheng No. (93)17
——————————————————————————
(86)  Gold Production and Exploitation Fund         Yuzheng No. (94)44
——————————————————————————
(87)  Fund for Exploitation of Bauxite and          Yuzheng No. (90)90

      Refractory Clay Resources
——————————————————————————
(88)  Scientific Research Development Fund          Ezhengfa No. (86)124
——————————————————————————
(89)  New Technology Development Fund for           Ecaigongfa No. (90)464

      Agriculture-used Telephone Service
——————————————————————————
(90)  Risk Fund for Materials Supply Enterprises    Ecaigongfa No. (91)676
——————————————————————————
(91)  Phosphorus Ore Exploitation Fund              Ecaigongfa
No. (90)478
——————————————————————————
(92)  Surcharge on Waterway Transport Goods         Ejiaocai No. (91)217
——————————————————————————
(93)  Surcharge on Waterway Passenger Service       Ejiazhongzi No. (94)31
——————————————————————————
(94)  Chemical Industry Safety Award Fund           Eshihua’an No. (87)16
——————————————————————————
(95)  Postal Service Construction and              
Ewujia No. (92)265

      Development Fund
——————————————————————————
(96)  Management Risk Fund                          Eyiqing(91)caijiazi
No. 31
——————————————————————————
(97)  (Local) Film Fund                            
Ewendian No. (91)143
——————————————————————————
(98)  Construction Fund                            
(94)xiangjiafeizi No. 307
——————————————————————————
(99)  Water Price Adjustment Fund                  
(94)xiangjiafeizi No. 307
——————————————————————————
(100) Coal Production Safety Fund                  
Xiangjiafeizi No. (94)4
——————————————————————————
(101) State-owned Forestry Price Fund               Xianglinji
No. (91)65
——————————————————————————
(102) Special Fund for Scenic Sites Development     Yuefu No. (94)63
————–

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING SORTING OUT AND CONSOLIDATING NON-EXPERIMENTAL COMMERCIAL ENTERPRISES WITH FOREIGN INVESTMENT

The State Council

Circular of the General Office of the State Council Concerning Sorting out and Consolidating Non-experimental Commercial Enterprises
with Foreign Investment

GuoBanFa [1998] No.98

July 1,1998

To uphold the uniformity and seriousness of the policy of experiment of absorbing investment by foreign businesses in the commercial
sector in China, ensure sound and orderly progress of the experiment, former State Planning Commission, former Ministry of Domestic
Trade, the Ministry of Foreign Economic Relations and Trade and the State Administration for Industry and Commerce formed, in pursuance
of the spirit of the “Circular of the General Office of the State Council Concerning the Questions Related to Sorting out and Consolidation
of Non-experimental Foreign Business Invested Commercial Enterprises”(GuoBanFa [1997] No.26), a sorting out and consolidation group
and starting from August 1997, conducted sorting out and consolidation of foreign business invested commercial enterprises the establishment
of which were approved by all localities on their own beyond their mandate. Upon the approval of the State Council, the state of
sorting out and consolidation is hereby notified as follows:

I.

Permission has been granted to 42 commercial enterprises with foreign investment to continue operations within the duration of joint
operations after examination and verification of the percentage of contribution made by foreign businesses, the status of capital
in place, duration of joint operations, business scope and status of operations in accordance with relevant state policy of absorbing
foreign business investment in the commercial sector.

II.

199 foreign business invested commercial enterprises need to make rectifications after sorting out. Specific requirements for rectification
are: the percentage of contribution and profit-sharing of the Chinese side in a foreign business invested commercial enterprise must
be over 50%(over 40% in the midwest region), holdings of chain stores and warehouse marts must be controlled by the Chinese side,
duration of joint operations shall not exceed 30 years(not exceeding 40 years in the Midwest region) and they shall not operate wholesale
business; commercial enterprises of sole foreign business investment shall, in accordance with the above-mentioned standards, be
transformed into Sino-foreign joint ventures or Sino-foreign cooperative commercial enterprises. Sorting out and consolidation groups
formed in all localities should, by the end of 1998 and in pursuance of the requirements, complete rectification of the above-mentioned
enterprises and submit reports to the State Development and Planning Commission, the Ministry of Foreign Economic Relations and Trade,
the State Administration for Industry and Commerce and the State Administration of Domestic Trade for examination and verification.

III.

The aforesaid enterprises permitted to continue operations after sorting out and consolidation and the rectified enterprises found
to be in line with the requirements after examination and verification shall have no right to operate import and export, shall not
operate wholesale business, shall not expand the business scope and scale of construction any more, shall not open branches and extend
the duration of joint operations and shall not benefit from the policy of tax reduction and tax exemption for import equipment and
materials for own use.

IV.

With respect to the 36 foreign business invested commercial enterprises examined and approved after the issuance of the ((Urgent Circular
of the General Office of the State Council Concerning the Immediate Stoppage of Examination and Approval of Foreign Business Invested
Commercial Enterprises by Localities on their own))(GuoBanFaMingDian [1997] No.15), capital not injected in accordance with the time
prescribed, that have failed to pass annual inspection or failed to take part in annual inspection, as well as those foreign business
invested commercial enterprises that fall within the scope of sorting out and consolidation but have failed to submit a report shall
be revoked the original approval certificates by departments of foreign economic relations and trade and departments for industry
and commerce administration at the provincial level, and formalities of nullification of registration or revocation of business licenses
completed.

V.

The State Development and Planning Commission, the Ministry of Foreign Economic Relations and Trade, the State Administration for
Industry and Commerce and the State Administration of Domestic Trade shall jointly issue a document notifying all localities of detailed
list of the aforesaid non-experimental commercial enterprises with foreign investment retained, rectified and nullified(revoked),
and shall be responsible for the supervision of implementation.

VI.

Local people’s governments that arbitrarily exceeded the mandate of examination and approval of foreign business invested commercial
enterprises in contravention of the state policy of experiment in absorbing foreign business investment in the commercial sector
and in particular the people’s governments of the municipalities of Chongqing, Chengdu, Xian and Nanchang that still approved the
establishment of non-experimental commercial enterprises with foreign investment on their own after the issuance of the ((Urgent
Notice)) are meted out criticism in the circular. All localities should learn a lesson therefrom and do the work well of successful
handling of rectification and correction and nullification (revocation) of nonexperimental commercial enterprises with foreign investment
in accordance with the requirements of this Circular.

China will continue to implement the policy of actively, rationally and effectively make use of foreign investment in the light of
the spirit of the 15th National Congress of the Chinese Communist Party and expand the opening up to the outside world in the commercial
sector step by step on the basis of summing up the experiences in experiment. People’s governments of all localities should carry
out their work in pursuance of the state policy and the unified arrangement of the State Council and each shall not act in its own
way, be strict in the execution of orders and prohibitions and jointly uphold the seriousness of the state policy so as to ensure
that the work of absorption of foreign business investment proceeds in a sound and orderly way.



 
The State Council
1998-07-01

 







REGULATIONS ON THE ADMINISTRATION OF CONSTRUCTION PROJECT ENVIRONMENTAL PROTECTION

Category  ENVIRONMENTAL PROTECTION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-11-29 Effective Date  1998-11-29  


Regulations on the Administration of Construction Project Environmental Protection

Chapter I  General Provisions
Chapter II  Environmental Impact Evaluation
Chapter III  Construction of Environmental Protection Facilities
Chapter IV  Legal Liability
Chapter V  Supplementary Provisions

(Promulgated by Decree No. 253 of the State Council of the People’s

Republic of China on November 29, 1998)
Chapter I  General Provisions

    Article 1  These Regulations are formulated with a view to preventing
construction projects from generating new pollution and damaging the
ecological environment.

    Article 2  These Regulations shall be applicable to building of construction projects having impacts on the environment within the
territory of the People’s Republic of China and other territorial sea
areas under the jurisdiction of the People’s Republic of China.

    Article 3  State standards and local standards for the discharge of pollutants must be complied with in building construction projects
that
generate pollution;requirements for aggregate control of discharge of major pollutants must be met in areas under aggregate control
of discharge
of major pollutants.

    Article 4  Industrial construction projects should adopt clean
production techniques with low energy consumption, low materials
consumption and low pollutants generation, rationally exploit natural
resources to prevent environmental pollution and ecological damage.

    Article 5  Measures must be taken in reconstruction, expansion projects
and technological transformation projects to treat original environmental
pollution and ecological damage related to the said projects.
Chapter II  Environmental Impact Evaluation

    Article 6  The state practises the construction project environmental
impact evaluation system.

   The work of construction project environmental impact evaluation shall
be undertaken by units having acquired certificates of corresponding
qualifications.

    Article 7  The state practises classified control over construction
project environmental protection in accordance with the extent of environmental impact of construction projects in pursuance of the
following provisions:

    (1)a report on environmental impact should be compiled for a construction
project that may cause major impact on the environment, giving comprehensive
and detailed evaluation of the pollution generated and environmental impact
caused by the construction project;

    (2)a statement on environmental impact should be compiled for a
construction project that may cause light impact on the environment,
giving analysis or special-purpose evaluation of the pollution generated
and environmental impact caused by the construction project; and

    (3)a registration form should be filled out and submitted for a
construction project that has slight impact on the environment and
necessitates no environmental impact evaluation.

    Catalog for the classified control of construction project environmental
protection shall be compiled and published by the competent department of environmental protection administration under the State
Council.

    Article 8  The report on construction project environmental impact should
contain the following contents:

    (1)an overview of the construction project;

    (2)current state of environment surrounding the construction project;

    (3)analysis and predictions of impacts which may be caused by the
construction project on the environment;

    (4)measures for environmental protection and their financial and
technical authentication;

    (5)environmental impact economic loss-benefit analysis;

    (6)proposals for environment monitoring of the construction project; and

    (7)conclusions of the environmental impact evaluation.

    A scheme for water and soil conservation examined and approved by the
competent department of water administration must be prepared for the
construction project involving water and soil conservation.

    Contents and formats of the construction project environmental impact
statement and environmental impact registration form shall be prescribed by
the competent department of environmental protection under the State Council.

    Article 9  A construction unit should, in the phase of construction
project feasibility study, sumbit the construction project environmental
impact report, environmental impact statement or environmental impact
registration form for approval; however, for such construction projects as
railways and communications, environmental impact report or environmental
impact statement may, prior to the completion of preliminary design, be
submitted for approval upon the consent of the competent department of environmental protection administration with authority of
examination and
approval.  

    For a construction project that necessitates no feasibility study
pursuant to relevant state provisions, the construction unit should,
prior to the start of construction of the construction project, submit
the construction project environmental impact report, environmental impact
statement or environmental impact registration form for approval; among
which where application for a business licence is required, the construction
unit should, prior to the application for business licence, submit the
construction project environmental impact report, environmental impact
statement or environmental impact registration form for approval.

    Article 10  Construction project environmental impact reports,
environmental impact statements or environmental impact registration
forms shall be submitted by construction units to competent departments of environmental protection administration with authority
of examination and
approval for examination and approval; where construction projects have
competent departments of trades, their environmental impact reports or
environmental impact statements should, upon preliminary examination of the competent departments of trades, be submitted to the
competent departments
of environmental protection administration with authority of examination and
approval for examination and approval.

    Coastal engineering construction project environmental impact report or
environmental impact statement shall, upon the examination and verification
of the competent department of maritime administration with views attached
thereonto, be submitted to the competent department of environmental
protection administration for examination and approval.

    Competent departments of environmental protection administration should,
within 60 days starting from the date of receipt of the construction project
environmental impact report, within 30 days starting from the date of receipt
of the environmental impact statement and within 15 days starting from the
date of receipt of the environmental impact registration form, make a
decision on examination and approval and notify the construction units
in writing respectively.

    No fee whatsoever shall be collected for the preliminary examination,
examination and verification, and examination and approval of construction
project environmental impact reports, environmental impact statements or
environmental impact registration forms.

    Article 11  The competent department of environmental protection
administration under the State Council shall be responsible for the
examination and approval of the following construction project environmental
impact reports, environmental impact statements or environmental impact
registration forms:

    (1)special-nature construction projects such as nuclear facilities and
top-secret projects;

    (2)construction projects transcending the administrative areas of the
provinces, autonomous regions and municipalities directly under the Central
Government; and

    (3)construction projects subject to the examination and approval of the
State Council or the examination and approval of the departments concerned
authorized by the State Council.

    Limits of authority of examination and approval of the construction
project environmental impact reports, environmental impact statements or
environmental impact registration forms beside those provided for in the
preceding paragraph shall be prescribed by people’s governments of the
provinces, autonomous regions and municipalities directly under the
Central Government.

    Where a construction project causes trans-administrative area
environmental impact and a dispute arises between the competent departments
concerned of environmental protection administration over the conclusions of environmental impact evaluation, the environmental impact
report or
environmental impact statement shall be submitted to the joint competent
department of environmental protection administration at the next higher
level for examination and approval.

    Article 12  Where major changes take place in the nature, scale, location
or production techniques adopted of the construction project upon approval of
the construction project environmental impact report, environmental impact
statement or environmental impact registration form, the construction unit
should once again submit the construction project environmental impact report,
environmental impact statement or environmental impact registration form for
approval.

    Where a construction project starts construction on expiry of 5 years
starting from the date of approval of the construction project environmental
impact report, environmental impact statement or environmental impact
registration form, its environmental impact report, environmental impact
statement or environmental impact registration form should be submitted to
the original examination and approval organ for re-examaination and re-
verification. The original examination and approval organ should, within
10 days starting from the date of receipt of the construction project
environmental impact report, environmental impact statement or environmental
impact registration form, notify the construction unit in writing of the
views on examination and verification; failure to notify on expiry shall
be construed as approval upon examination and verification.

    Article 13  The state practises the qualificaton examination system of units engaging in the work of construction project environmental
impact
evaluation.

    Units engaging in the work of construction project environmental impact
evaluation must obtain a qualification certificate issued by the competent
department of environmental protection administration under the State Council,
engage in the work of construction project environmental impact evaluation
pursuant to the grade and scope prescribed in the qualification certificate,
and be responsible for the evaluation conclusions. The competent department
of environmental protection administration under the State Council should
publish at regular intervals the list of units engaging in the work of construction project environmental impact evaluation which
have already
been issued qualification certificates. Specific measures shall be worked
out by the competent department of environmental protection administration
under the State Council.

    Units engaging in the work of construction project environmental impact
evaluation must strictly comply with the rates for the collection of charges
prescribed by the state.

    Article 14  Construction units may adopt the form of open tender to
select the units engaging in the work of environmental impact evaluation
for environmental impact evaluation of the construction projects.

    No administrative organ shall appoint units engaging in the work of environmental impact evaluation for construction
units for environmental
impact evaluation.

    Article 15  Construction units should, in compiling the environmental
impact reports, solicit the views of the units and residents concerned of the locality wherein the construction project is located
pursuant to relevant
provisions of law.
Chapter III  Construction of Environmental Protection Facilities

    Article 16  Simultaneous design, simultaneous construction and
simultaneous going into operation with the main body project must be
realized for matching environmental protection facilities construction
which is required for the construction project.

    Article 17  The preliminary design of a construction project should,
pursuant to the requirements of environmental protection design standards,
contain compilation of a chapter on environmental protection, and ascertain
measures for the prevention and treatment of environmental pollution and
ecological damage as well as budgetary estimate for investment in the
chapter on environmental protection on the basis of the approved
construction project environmental impact report or environmental impact
statement.

    Article 18  Where trial production is required upon completion of the main body project of a construction project, its matching environmental
protection facilities built must go into simultaneous trial run with the
main body project.

    Article 19  The construction unit should, during the trial production of a construction project, monitor the operations of the environmental

protection facilities and the environmental impact of the construction
peoject.

    Article 20  The construction unit should, upon completion of a
construction project, file an application with the competent department
of environmental protection administration that examined and approved
the said construction project environmental impact report, environmental
impact statement or environmental impact registration form for acceptance
checks on completion of matching construction of environmental protection
facilities required for the said construction project.

    Acceptance checks for completion of construction of environmental
protection facilities should be conducted simultaneously with the acceptance
checks for completion of construction of the main body project. Where trial
production is required for the construction project, the construction unit
should, within 3 months starting from the date of the said construction
project going into trial production, file an application with the competent
department of environmental protection administration that examined and
approved the said construction project environmental impact report,
environmental impact statement or environmental impact registration form
for acceptance checks on completion of matching construction of environmental protection facilities required for the said construction
project.

    Article 21  For construction projects that are built in phases, go into
production or are delivered for use in phases, acceptance checks for their
corresponding environmental protection facilities should be conducted in
phases.

    Article 22  Competent departments of environmental protection
administration should, within 30 days starting from the date of receipt
of the application for acceptance checks on completion of construction of the environmental protection facilities, complete the acceptance
checks.

    Article 23  The said construction project may only formally go into
production or be delivered for use when the matching construction of the
environmental protection facilities required for the construction project
has passed acceptance checks.
Chapter IV  Legal Liability

    Article 24  Whoever commits any of the following acts in violation of the provisions of these Regulations shall be ordered by the
competent
department of environmental protection administration responsible for
the examination and approval of the construction project environmental
impact report, environmental impact statement or environmental impact
registration form to make up the formalities within a given time period;
whoever fails to make up the formalities on expiry of the given time period
and start construction without authorization shall be ordered to stop the
construction and may be imposed a fine of less than RMB 100000 Yuan:

    (1)failure to file an application for approval of the construction
project environmental impact report, environmental impact statement or
environmental impact registration form;

    (2)failure to file a new application for approval of the construction
project environmental impact report, environmental impact statement or
environmental impact registration form in the event of major changes
taking place in the nature, scale, location or production techniques
adopted of the construction project; and

    (3)failure to submit the construction project environmental impact
report, environmental impact statement or environmental impact registration
form to the original examination and approval organ for re-examination and
re-verification of the construction project that starts construction on
expiry of 5 years starting from the date of approval of the construction
project environmental impact report, environmental impact statement or
environmental impact registration form.

    Article 25  Whoever starts construction without authorization, without
the approval of the construction project environmental impact report,
environmental impact statement or environmental impact registration form
or without the consent upon re-examination and re-verification of the
original examination and approval organ shall be ordered by the competent
department of environmental protection administration responsible for the
examination and approval of the said construction project environmental
impact report, environmental impact statement or environmental impact
registration form to stop the construction, restore the original state
within the given time period, and may be imposed a fine of less than
RMB 100000 Yuan.

    Article 26  The matching environmental protection facilites built
for the construction project that goes into trial production fail to
go into trial run simultaneouly with the main body project in violation
of the provisions of these Regulations shall be ordered by the competent
department of environmental protection administration responsible for the
examination and approval of the said construction project environmental
impact report, environmental impact statement or environmental impact
registration form to make a rectification within the given time period;
whoever fails to make a rectification on expiry of the given time period
shall be ordered to stop the trial production, and may be imposed a fine of less than RMB 50000 Yuan.

    Article 27  A construction unit that fails to file an application for
acceptance checks on completion of construction of the environmental
protection facilities of a construction project having gone into trial
production for more than 3 months in violation of the provisions of these
Regulations shall be ordered by the competent department of environmental
protection administration that examined and approved the said construction
project environmental impact report, environmental impact statement or
environmental impact registration form to go through the formalities of acceptance checks on completion of the environmental protection
facilities
within the given time period; whoever fails to complete the said formalities
shall be ordered to stop the trial production and may be imposed a fine of less than RMB 50000 Yuan.

    Article 28  Where the main body project formally goes into production or
is delivered for use without the completion of construction of matching
environmental protection facilities required for the construction project,
without going through acceptance checks or without passing the acceptance
checks in violation of the provisions of these Regulations shall be ordered
by the competent department of environmental protection administration that
examined and approved the said construction project emvironmental impact
report, environmental impact statement or environmental impact registration
form to stop the production or use, and may be imposed a fine of less than
RMB 100000 Yuan.

    Article 29  Any unit engaging in the work of construction project
environmental impact evaluation that practises fraud in the work of environmental impact evaluation shall be revoked of its qualification
certificate by the competent department of environmental protection
administration under the State Council, and may concurrently be imposed
a fine of more than 100% less than 300% of the fee collected.

    Article 30  Any functionary of the competent department of environmental
protection administration who indulges in malpractices for selfish gains,
abuse of power, negligence of duty that constitute a crime shall be
investigated of the criminal liability according to law; where a crime
has not been constituted, administrative sanctions shall be imposed
according to law.
Chapter V  Supplementary Provisions

    Article 31  Environmental impact evaluation should be done in compiling
construction planning for such regional development as valley development,
development zone construction, new urban district construction and old
urban district reconstruction. Specific measures shall be worked out
separately by the competent department of environmental protection
administration under the State Council in conjunction with the competent
departments concerned under the State Council.

    Article 32  Environmental protection administration of offshore oil
prospecting and exploitation construction projects shall abide by the
provisions of the State Council concerning environmental protection
administration of offshore oil prospecting and exploitation.

    Article 33  Environmental protection administration of construction
projects of military installations shall abide by the relevant provisions
of the Central Military Commission.

    Article 34  These Regulations come into force as of the date of promulgation.






FIRE CONTROL LAW

Fire Control Law of the People’s Republic of China

     (Passed by the Second Session of the Ninth National People’s Congress on April 29, 1998)

CHAPTER ONE GENERAL RULES

   Article 1 This law is formulated in the purpose of preventing fire and reducing fire damage, safeguarding citizen’s personal security, public
property and civil assets, upholding public security and ensuring the smooth construction of the socialist modernization.

   Article 2 Fire control work shall follow the policy of devoting major efforts into prevention and combining fire prevention with fire fighting,
and shall adhere to the principle of combining the efforts of both specialized organizations and the masses and carry out responsibility
system on fire prevention and safety.

   Article 3 The State Council shall led and the people’s governments at all levels be responsible for fire control work. The people’s government
at all levels shall bring fire control work in line with the national economy and social development plan, and ensure that fire control
work fit in with the economic construction and social development.

   Article 4 The public security department of the State Council shall monitor and administer the nationwide fire control work; the public security
organs of local people’s governments above county level shall monitor and administer the fire control work within their administrative
region and the fire control institutions of public security organs of the people’s government at the same level shall be responsible
for the implementation. Fire control work for military facilities, underground parts of mines and nuclear power plant shall be monitored
and administered by their competent units.

For fire control work on forest and grassland, in case there are separate regulations, the separate regulations shall be followed.

   Article 5 Any unit and individual shall have the obligation of keeping fire control safety, protecting fire control facilities, preventing
fire disaster and reporting fire alarm. Any unit and adult shall have the obligation to take part in organized fire fighting work.

   Article 6 The people’s government at all levels shall carry out regular fire control propaganda and education and strengthen citizens’ awareness
on fire control.

Administrative department on education and labor shall put fire control knowledge into teaching and training.

Competent departments in journalism, publishing, broadcasting, movie and television sector shall have the obligation to conduct propaganda
and education on fire control safety.

   Article 7 Units and individuals who make prominent contribution or achievements in fire control work shall be awarded.

CHAPTER TWO FIRE PREVENTION

   Article 8 Urban people’s governments shall bring the fire control plan into the overall urban planning, including fire control safety layout,
fire control station, fire control communication, fire truck passageway and fire control equipment, etc, and take the charge of organizing
relevant departments for its implementation. In case public fire control facilities and equipage are insufficient or do not fit in
with actual demand, efforts should be made on expansion, rebuilding, allocation and purchase or technical reform.

Science research and promotion on fire control work should be reiterated and advanced fire control technology and equipage should
be adopted.

   Article 9 Existing factories and warehouses and specialized depots and wharves for production, storage, loading and unloading of inflammable
and explosive dangerous goods, shall be established at urban border area or independent safety zone. Filling and loading stations,
supply stations and pressure regulating stations for inflammable and explosive gas and liquid shall be set up in an appropriate location
and shall conform to the requirements on prevention of fire and explosion.

For existing factories and warehouses and specialized depots and wharves for production, storage, loading and unloading of inflammable
and explosive dangerous goods, and filling and loading stations, supply stations and pressure regulating stations for inflammable
and explosive gas and liquid, in case they do not conform to the regulations of this article, relevant units shall adopt measures
to give a solution within a time limit.

   Article 10 For construction project conducting fire control design in accordance with requirements of the State Technical Standards on Fire
Control for Engineering Construction, the design unit shall conduct the design in accordance with requirements of the State Technical
Standards on Fire Control for Engineering Construction; the construction unit shall submit the drawings of fire control design for
the construction project and relevant materials to relevant public security fire control institution for review and approval; for
project not going through review and approval formalities or considered unqualified after the review and examination, the competent
construction administrative department shall not issue the license for construction and the construction unit shall not carry out
the construction.

For fire control design for construction project approved by relevant public security fire control institution, in case the design
needs changes, it shall be submitted to the previous public security fire control institution granting the approval for examination
and approval; without approval, no unit or individual shall be allowed to make the changes.

Upon the completion of a construction project containing a fire control design conducted in accordance with requirements of the State
Technical Standards on Fire Control for Engineering Construction, the project must go through acceptance check on fire control by
relevant public security fire control institutions; project without going through the acceptance check or considered unqualified
after the acceptance check shall not be put into use.

   Article 11 The fire proof performance of constructional elements and construction materials must conform to the state standards or industrial
standards.

The indoor fittings and decoration of public places using inflammable and flame retardant materials in accordance with requirements
of the State Technical Standards on Fire Control for Engineering Construction, shall choose materials passing qualification check
by inspection institution designated in accordance with regulations of the Product Quality Law.

   Article 12 Song and dance hall, cinema, hotel, restaurant, commercial center and market fair where the public gather, before putting into use
or starting business, shall be reported to local public security fire control institutions and can only be put into use or start
business after passing the acceptance check on fire control safety.

   Article 13 For mass activities with fire danger, such as large gatherings, fireworks evening party and lantern party, the host unit shall formulate
preproposal on fire fighting and emergency evacuation and put into effect relevant fire control security measures, and report to
public security fire control institutions which will conduct fire control security check. The activities can only be held when qualification
check is granted.

   Article 14 State organs, organizations, enterprises and institutions shall perform the following duties on fire control security:

(I) Formulate fire control safety system and operation rules on fire control safety;

(II) Exercise fire prevention safety responsibility system, appoint person-in-charge for fire control safety of the unit and various
departments and posts under the unit;

(III) Conduct fire control propaganda and education on employees in light of the characteristics of the unit,

(IV) Organize fire prevention inspection and remove hidden danger in time;

(V) Allocate and purchase fire control facilities and devices, set up fire control safety marks in accordance with relevant state
regulations, and organize regular inspection and maintenance to ensure a perfect and effective condition of fire control facilities
and device;

(VI) Ensure that evacuation passageway and safety exit are unblocked and set up evacuation marks on fire control safety conforming
to the state regulations.

The administrative unit of residential areas shall perform duties and responsibilities on fire control safety in accordance with regulations
of this article and do a good job on fire control safety in the residential areas.

   Article 15 Rooms within the same building of workshop or warehouse shall not be used as dormitory. In case rooms in a building with workshop
or warehouse have already been used as dormitory, the problem shall be solved within a time limit. Those who indeed have difficulties
for the time being, shall take necessary fire control safety measures and can only continue to use the dormitory after acquiring
approval from public security fire control institutions.

   Article 16 For units with higher risk of fire disaster and units that may cause major casualties and deaths or heavy loss of assets in case
of fire disaster, the public security fire control institutions of local people’s governments above county level shall select these
units as key units on fire control safety of their administrative region and file with the people’s government of the same level
for reference.

Key units on fire control safety shall, in addition to performing the duties and responsibilities as stipulated in Article 14 of this
law, perform the following duties and responsibilities on fire control safety:

(I) Set up file system on fire prevention, locate critical parts for fire control safety, set up fire prevention marks and exercise
strict administration;

(II) Exercise daily fire prevention patrol and set up patrol record;

(III) Conduct fire control safety training on employees;

(IV) Formulate pre-proposal on fire fighting and emergency evacuation and organize regular fire drill.

   Article 17 Any unit and individual engaged in production, storage, transportation, sales or use and destroy of inflammable and explosive dangerous
goods, must execute relevant state regulations on fire control safety.

Units producing inflammable and explosive dangerous goods shall attach instruction book with datas such as the ignition point, flash
point and explosion limit of the product, and give points of attention for fire and explosion prevention. Inflammable and explosive
dangerous goods with independent packing shall be attached with a tag of dangerous goods.

Those who enter places where inflammable and explosive dangerous goods are produced and stored, must execute the state regulations
on fire control safety. It is prohibited to carry kindling into places where inflammable and explosive dangerous goods are produced
and stored. It is prohibited to illegally carry inflammable and explosive dangerous goods into public places or on public transportation
means.

The management of warehouses storing inflammable goods must be in execution of relevant state regulations on fire control safety.

   Article 18 It is prohibited to use naked light in places with fire and explosion danger; in case naked light operation is required for special
reasons, examination and approval formalities shall be handled in accordance with relevant regulations. Operators shall follow the
regulations on fire control safety and adopt corresponding measures on fire control safety.

Operators conducting operation with fire danger like electrical welding and gas welding or operators for automatic fire control system,
must hold relevant certificates and strictly observe operation rules on fire control safety.

   Article 19 The quality of fire control products must conform to the state standards or industrial standards. It is prohibited to produce, sell
or use fire control products without passing qualification check by the inspection organ designated in accordance with regulations
of the Product Quality Law.

It is prohibited to use complementary fire control parts, extinguishant, maintenance and fire control facilities and devices not conforming
to the state standards or industrial standards.

Public security fire control institutions and their staff shall not specify sales units and brands of fire control products in the
capacity of their functions.

   Article 20 The quality of electrical products and gas utensils must conform to the state standards or industrial standard. The installation,
use and design and laying of circuit and pipes must conform to relevant technical regulations on fire control.

   Article 21 Any unit or individual shall not damage or arbitrarily use, dismantle and stop using fire control facilities and devices, and shall
not bury and occupy hydrant, occupy fire prevention space and block fire control passageway.

Public utility units or urban construction units, when building road and cutting off power, water supply and communication lines that
may affect fire brigade in fire fighting and rescue work, must inform local public security fire control institutions in advance.

   Article 22 During farm products harvest seasons and fire prevention period of forest and grassland, major holidays and frequent fire disaster
seasons, local people’s government at all levels shall organize and carry out fire control propaganda and education according to
the specific situations, adopt fire prevention measures and conduct fire control safety inspection.

   Article 23 Villagers committee and neighborhood committee shall organize the masses to carry out fire control work, formulate fire prevention
safety convention and conduct fire control safety inspection. The township people’s governments and urban neighborhood offices shall
give guidance and supervision.

   Article 24 Public security fire control institutions shall monitor and conduct inspection on state organs, organizations, enterprises and institutions
in terms of their observance of fire control laws and regulations. For key units for fire control safety, regular monitoring and
inspection shall be conducted.

Working staff of public security fire control institutions, when

conducting supervision and inspection, shall produce certificates.

Public security fire control institutions, when conducting fire control examination and approval and acceptance check, shall not collect
fees.

   Article 25 Public security fire control institutions, when finding out hidden fire danger, shall inform relevant units or individuals in time
to take measures and order to remove the hidden danger within a time limit.

CHAPTER THREE FIRE CONTROL ORGANIZATIONS

   Article 26 The people’s government at all levels shall, in accordance with the requirement of economic and social development, set up fire control
organizations in multi forms, strengthen construction of fire control organizations and the abilities on fire fighting.

   Article 27 Urban people’s governments shall, in accordance with the standards on fire control station construction, set up public security fire
brigade, full time fire brigade to undertake fire fighting and rescue work.

Township people’s governments may, in accordance with the requirements of economic development and fire control work, set up full
time and voluntary fire brigades to undertake fire fighting and rescue work.

Public security fire brigades, except guaranteeing to carry out fire fighting and rescue work as stipulated in this law, should also
do rescue and relief work of other disasters or accidents.

   Article 28 The following units shall set up full time fire brigades to undertake fire fighting and rescue work.

(I) Nuclear power plant, large power plant, civil airports and large wharves;

(II) Large enterprises producing and storing inflammable and explosive dangerous goods;

(III) Large warehouses and bases storing inflammable important goods;

(IV) Other large enterprises other than those listed in Item (I) (II) (III), but with high risk of fire disaster and are far from
local public security fire brigades.

   Article 29 The establishment of full time fire brigade shall conform to relevant regulations of the state and be submitted to fire control institutions
of public security organs of the people’s government at provincial level.

   Article 30 State organs, organizations, enterprises and institutions as well as towns and villages may set up obligatory fire brigade consisting
of working staff or villager based on need.

   Article 31 Public security fire control institutions shall give business guidance to full time and obligatory fire brigades, and shall have
the right to direct and muster full time fire brigade for fire fighting and rescue work.

CHAPTER FOUR FIRE FIGHTING AND RESCUE

   Article 32 Any one who discover a fire shall immediately report to the police. Any unit and individual shall provide convenience for fire alarm
reporting gratis and shall not obstruct the reporting. It is strictly prohibited to make false reporting of fire.

In case a fire occurs in a public place, the on site working staff of the public place shall have the obligation to organize and guide
the evacuation of on-site masses.

Units suffering fire disaster shall immediately organize fire fighting and rescue work. Neighboring units shall provide support.

Fire brigades, upon receiving fire reporting, must rush to fire site immediately to rescue people under mishap, eliminate dangerous
case and extinguish fire.

   Article 33 Public security fire control institutions, when making unified organization and direction of on site fire fighting and rescue, the
chief commander shall have the right to determine the following matters in accordance with the requirements of fire fighting and
rescue work:

(I) Use of various water sources;

(II) Cut off transmission of power, inflammable gas and liquid, and restrict the use of fire and power;

(III) Delimit warning zone and exercise local transportation control;

(IV) Make use of neighboring constructions and related facilities;

(V) Dismantle or damage neighboring constructions and structures of fire site so as to prevent fire spreading;

(VI) Muster relevant units of water and power supply, medical and rescue and transportation to assist the fire fighting and rescue
work.

For ultra large fire disaster, relevant local people’s government shall organize relevant personnel and assemble necessary goods to
support the fire fighting.

   Article 34 Public security fire control institutions, when conducting relief and rescue work of other disasters or accidents other than fire
disaster, shall carry out the task under unified direction of relevant local people’s government.

   Article 35 Fire trucks and fire boats, when rushing for fire fighting and rescue work or relief and rescue task for other disaster and accidents,
shall not be restricted by its driving speed, driving route,

driving direction and traffic signals; other vehicles, ships and pedestrians must make way and shall not conduct overtaking. Traffic
commander shall guarantee the fast and smooth passing of fire trucks and fire boats.

   Article 36 Fire truck, fire boats and fire control devices, equipage and facilities shall not be used for purposes other than fire fighting
and rescue work.

   Article 37 Fire brigades shall not charge any fee for fire fighting and rescue work from units and individuals suffering fire disaster.

Full time fire brigade and obligatory fire brigade shall be compensated for fuel, extinguishant and device and equipage used in taking
part of fire fighting and rescue for other units.

   Article 38 Personnel suffering injury, cripple and death as a result of taking part of fire fighting and rescue work, shall be given medical
treatment and compensation.

   Article 39 After a fire is extinguished, public security fire control institutions shall, based on need, have the right to seal up fire site,
be responsible for investigation, identify fire cause, check and ratify fire losses and find out responsibilities of fire disasters.

For ultra large fire disasters, in case the State Council or the people’s government at provincial level consider it necessary, an
investigation can be organized.

After a fire is extinguished, fire breaking units shall protect fire site in accordance with requirements of public security fire
control institutions, accept investigation on the accident and provide accurate facts on the fire disaster.

CHAPTER FIVE LEGAL RESPONSIBILITIES

   Article 40 Any one who violates the rules of this law and has one of the following conducts, shall be ordered to make corrections within a time
limit; those who do not make the corrections after the time limit, shall be ordered to stop construction, stop use of things concerned
or stop production or business, and may be punished with penalty simultaneously:

(I) Those who start construction when the fire control design of the construction projects have not be reviewed and approved or be
considered disqualified after the review and examination by relevant public security fire control institutions.

(II) Those who make arbitrary use of a completed construction project which should conduct fire control design in accordance with
law but has not passed or fail to pass the fire control acceptance check;

(III) Those who arbitrarily make use of or start business in places where the public gather without going through fire control safety
check or fail to pass the qualification check;

(IV) Units with conduct of this article shall be punished in accordance with rules of this article and the person in charge with direct
responsibility or other personnel with direct responsibility shall be given warning or penalty.

   Article 41 Those who, in violation of this law, arbitrarily hold mass activities like large gatherings, fireworks evening party, lantern party
with risk of fire disaster, shall be ordered to make corrections by public security fire control institutions; those who can not
make the corrections, shall be ordered to suspend the activities and may be imposed with penalty.

(V) Units with the conduct of this article shall be punished in accordance with the rules of this article, and the person in charge
with direct responsibility or other personnel with direct responsibility shall be given disciplinary warning or penalty.

   Article 42 Those who, in violation of this law, arbitrarily lower technical standards on fire control in construction, us construction parts
and materials not conforming the state standards or industrial standards or disqualified fitting and decoration materials during
construction, shall be ordered to make corrections within a time limit; those who do not make the corrections within the time limit,
shall be ordered to stop construction, and can be imposed with penalty simultaneously.

Units with the conduct of this article, shall be punished in accordance with rules of this article; and the person in charge with
direct responsibility or other personnel with direct responsibility shall be given disciplinary warning or penalty.

   Article 43 State organs, organizations, enterprises and institutions who violates rules of this law and do not perform responsibilities or fire
control safety, shall be ordered to make corrections within a time limit; for units who do not make the corrections within the time
limit, the person in charge with direct responsibility or other personnel with direct responsibility shall be given administrative
sanction or disciplinary warning.

Operational places with one of the following conducts shall be ordered to make corrections within a time limit; those who do not make
the corrections within the time limit, shall be ordered to stop production and business, and can be imposed with penalty simultaneously;
the person in charge with direct responsibility or other personnel with direct responsibility shall be imposed with penalty:

(I) Those who do not remove fire danger in time;

(II) Those who do not, in accordance with relevant regulations of the state, allocate and purchase fire control facilities and devices;

(III) Those who do not guarantee the evacuation passageway and safety exist unblocked.

Those who use rooms in a building with workshop or warehouse as dormitory shall be punished in accordance with rules of Article 2.

   Article 44 Those who, in violation the rules of this law, produce and sell fire control products that have not passed qualification check by
inspection institutions designated in accordance with rules of the Product Quality Law, shall be ordered to stop illegal action,
and be confiscated with product and illegal income, and be strictly punished in accordance with the rules of the Product Quality
Law.

Those units engaged in maintenance and check and test of fire control facilities and devices, carry out maintenance and check and
test in violation of rules on fire control technology, shall be ordered to make corrections within a time limit and can be imposed
with penalty simultaneously; and the person in charge with direct responsibility or other personnel with direct responsibility shall
be given disciplinary: warning or penalty.

   Article 45 In case the installation of electrical appliances and gas utensils or the laying of circuits and pipelines do not conform to the
rules of fire control technology, the person in charge shall be ordered to make corrections within a time limit; those who do not
make the corrections within the time limit, shall be ordered to stop the use.

   Article 46 Those who, in violation the rules of this law, produce, store, transport, sell or use, destroy inflammable and explosive dangerous
goods, shall be ordered to stop illegal activities, and can be given disciplinary warning, penalty or disciplinary warning or penalty.

Those units with the conduct of this article, shall be ordered to stop illegal activities, and can be given disciplinary warning or
penalty, and the person in charge with direct responsibility or other personnel with direct responsibility shall be punished in accordance
with rules of this article.

   Article 47 Those who, in violation the rules of this law, have one of the following conducts, shall be given disciplinary warning or penalty,
or detention less than 15 days:

(I) Those who, in violation the rules of this law, enter places where inflammable and explosive dangerous goods are produced and stored;

(II) Those who, in violation law, use naked light in operation or who, in violation of prohibition, smoke, use naked light in places
with fire and explosion danger.

(III) Those who obstruct fire alarm reporting or make false report on fire disaster;

(IV) Those who deliberately obstruct fire truck and fire boasts from rushing to fire site or who disturb the order of fire site;

(V) Those who refuse to obey the command of fire site commander and influence fire fighting and rescue work;

(VI) Those whose blunder causes fire but has not resulted in heavy losses.

   Article 48 Those who violates the rules of this law and have one of the following conducts, shall be given disciplinary warning or penalty:

(I) Those who instigate or force others to conduct operation at risk in violation the rules on fire control safety, but have not cause
serious results;

(II) Those who bury, occupy fire hydrant or occupy fire prevention space, block fire control passageway, or damage and arbitrarily
use, dismantle and stop use fire control facilities and devices;

(III) Those who do not remove serious fire danger after being informed by public security fire control institutions;

Units with the conduct of this article shall be punished in accordance with rules of this article; and the person in charge with direct
responsibility or other personnel with direct responsibility shall be disciplinary warning or penalty.

Those who have the conduct listed in item 2 of Clause 1, shall be further ordered to make restoration or compensate the losses within
a time limit; for those who do not make the restoration after the time limit, a forcible execution will be carried out on the dismantle
or cleaning up at the expense of the person(s) with illegal conduct.

   Article 49 On site working staff of public places, in case of a fire, do not perform the obligation of organizing and guiding the evacuation
of the on site masses, and cause casualty and death, but do not constitute a criminal charge, shall be punished with detention less
than 15 days.

   Article 50 For those who, after a fire is extinguished, deliberately destroy the fire site or make a simulated scene in the purpose of concealing
and covering up fire causes and shirking their responsibility, but do not constitute a criminal charge, shall be given disciplinary
warning or penalty and the person in charge with direct responsibility or other personnel with direct responsibility shall be punished
in accordance with this article.

   Article 51 The punishment on conducts violating the rules of this law shall be decided by public security fire control institutions; punishment
of detention shall be decided by public security organs in accordance with rules of penal clauses on public order administration.

   Article 52 The working staff of public security fire control institutions, in case of abusing their authority, ignoring their duty and playing
favoritism and committing irregularities, and having one of the following conducts, causing loss to the benefit of the state and
people, but having not constituted a criminal charge, shall be given administrative sanction in accordance with law:

(I) Those who pass the examination and approval and acceptance check to fire control design and construction projects that do not
conform to the state technical standards on fire control for construction projects;

(II) Those who deliberately delay in giving and do not give examination and approval and acceptance check to fire control design and
construction projects that shall be given examination and approval and acceptance check in accordance with law.

(III) Those who do not inform relevant units or individual to make corrections when finding hidden danger of fire.

(IV) Those who, in the capacity of their function, specify sales units or brands of fire control products or specify construction
units of fire control facilities.

(V) Other conducts involving abusing authority, dereliction of duty and playing favoritism and committing irregularities.

   Article 53 Those who violate this law and commit a criminal offence will be pu

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING MAINTAINING CONTACT WITH COMPANIES BY MINISTRIES AND COMMISSIONS

Category  STATE INSTITUTIONS Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-03-29 Effective Date  1998-03-29  


Circular of the General Office of the State Council Concerning Maintaining Contact With Companies by Ministries and Commissions

(March 29, 1998)

    People’s government of the province, autonomous region and municipality
directly under the Central Government, ministries and commissions of the State
Council, organizations directly under the State Council:

    For the convenience of large state-owned enterprises and companies to
contact the government, persistence of the principle of separating government
functions from enterprise management, the companies with which ministries and
commissions are responsible for maintaining contact are hereby circulated as
follows:

    State Electric Power Company, with which State Economic and Trade
Commission responsible for maintaining contact;

    China National Offshore Oil Corporation (CNOOC), with which State Economic
and Trade Commission responsible for maintaining contact;

    China National Nonferrous Metals Corporation, with which State Economic
and Trade Commission responsible for maintaining contact;

    China International Trust and Investment Corporation (CITIC), with which
the People’s Bank of China responsible for maintaining contact;

    China Everbright Holding Co., Ltd., with which the People’s Bank of China
responsible for maintaining contact.






OFFICIAL REPLY OF THE STATE COUNCIL CONCERNING ACID RAIN CONTROL AREAS AND SULPHUR DIOXIDE POLLUTION CONTROL AREAS

Category  ENVIRONMENTAL PROTECTION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-01-12 Effective Date  1998-01-12  


Official Reply of the State Council Concerning Acid Rain Control Areas and Sulphur Dioxide Pollution Control Areas


Appendix I: Acid Rain Control Areas
Appendix II: Sulphur Dioxide Pollution Control Areas

(January 12, 1998)

    State Bureau of Environmental Protection:

    We have received the Request of your Bureau for Approval of the Plan for
Delimiting Acid Rain Control Areas and Sulphur Dioxide Pollution Control Areas
(Huanfa [1997] No. 634). Our reply is hereby sent to you as follows:

    1. We have approved the Plan for Delimiting Acid Rain Control Areas and
Sulphur Dioxide Pollution Control Areas in principle and Your Bureau can
promulgate the plan. We also approve the delimitation of acid rain control
areas and sulphur dioxide pollution control areas (Hereinafter referred to
“the two types of control areas”. See the appendices for the details).

    2. The objectives of the two types of control areas: By the year 2000, the
industrial pollution sources discharging sulphur dioxide will have attained
the standard for discharging sulphur dioxide and a system for controlling the
total amount of discharged sulphur dioxide will have been practised; in
municipalities directly under the Central Government, capital cities of
provinces, cities as special economic zones, open coastal cities and major
tourist cities which are polluted by sulphur dioxide, the density of sulphur
dioxide in the environment air will have attained the national environmental
quality standards and the worsening of acid rain in the acid rain control
areas will have been alleviated. By the year 2010, the total amount of
discharged sulphur dioxide shall be controlled under the level of sulphur
dioxide discharged in 2000; the density of sulphur dioxide in the environment
air in cities shall have reached the national environmental quality standards
and sections of the acid rain control areas in which the precipitation has pH
value below 4.5 shall be obviously decreased by comparing with those in 2000.

    3. It is prohibited to establish new mines with the coal bed having above
three percent sulphur contents. Those having already been established with the
coal bed having above three percent sulphur contents shall be step by step
ordered to cut down the output, suspend the production or close up. For the
construction or transformation of coal mines with above 1.5 percent sulphur
contents, coal washing facilities shall be set up correspondingly. Existing
coal mines shall be according to planning fitted with coal washing facilities
by stages and in groups. The sulphur contents of fuel coal and fuel heavy oil
in cities shall conform to the prescriptions of the local people’s governments
of cities.

    4. Construction of any new coal-burning thermal power plant in urban areas
and suburbs of large or medium-sized cities is prohibited except for those
heat and power plants generating power by producing heat. For the construction
and transformation of power plants with fuel coal having above one percent
sulphur contents, desulphurization equipment shall be set up correspondingly.
Existing power plants with fuel coal having above one percent sulphur contents
shall take measures to reduce the discharge of sulphur dioxide before the year
2000, and shall be fitted with desulphurization equipment by stages and in
groups or take other similarly effective measures to reduce the discharge of
sulphur dioxide before the year 2010. Enterprises engaged in chemical
industry, metallurgical industry, building materials industry, nonferrous
metal industry and other industries causing serious pollution must be fitted
with technical facilities for treatment of waste gas or take other measures to
reduce the discharge of waste gas.

    5. At the time of readjusting the industrial structure and the structure
of products, great effort shall be made to carry out cleaning production,
strengthen technological transformation, promote the saving and comprehensive
utilization of resources and lower the level of discharged sulphur dioxide in
real earnest.

    6. The collection, administration and use of fees for discharging sulphur
dioxide shall be conducted conscientiously as required by the Reply of the
State Council Concerning Expanding Experiments of Collecting Fees for
Discharging Sulphur Dioxide (Guohan [1996] No. 24). Special funds for major
pollutant-discharging units to treat sulphur dioxide pollution shall not be
less than 90 percent of the discharge fees.

    7. Local people’s governments concerned and departments concerned in
charge of electric power and coal shall, in accordance with the requirement of
this Reply, work out relevant planning and plans and take effective measures
in order to realize objectives and requirements of the two types of control
areas. Your Bureau should ensure the guidance over the prevention and control
of pollution in the two types of control areas and strengthen the
environmental monitoring, supervision and inspection.

Appendix I: Acid Rain Control Areas



Provinces, Autonomous
Regions and                          
Scopes of Control Zones
Municipalities               (Impoverished Counties to Which
the State Gives
Directly under the                 Special Support
Are Exceptions)
Central Government

Shanghai Municipality   Shanghai Municipality

Jiangsu Province        Nanjing City, Yangzhou City, Nantong City, Zhenjiang

                        City,
Changzhou City, Wuxi City, Suzhou City, Taizhou

                        City

Zhejiang Province       Hangzhou City, Ningbo City, Wenzhou City (urban

                        districts
and Ruian City, Yongjia County, Cangnan

                        County),
Jiaxing City, Huzhou City, Shaoxing City,

                        Jinhua
City, Quzhou City (urban districts and

                        Jiangshan
City, Qu County, Longyou County), Taizhou

                        City

Anhui Province          Wuhu City, Tongling City, Maanshan City, Huangshan

                        City,
Caohu Prefecture, Xuancheng Prefecture

Fujian Province         Fuzhou City, Xiamen City, Sanming City, Quanzhou City,

                        Zhangzhou
City, Longyan City

Jiangxi Province        Nanchang City, Pingxiang City, Jiujiang City, Yingtan

                        City,
Fuzhou Prefecture, Ji’an City, Ganzhou City

Hubei Province          Wuhan City, Huangshi City, Jingzhou City, Yichang

                        City,
Jingmen City, Ezhou City, Qianjiang City,

                        Xianning
Prefecture

Hunan Province          Changsha City, Zhuzhou City, Xiangtan City, Hengyang

                        City,
Yueyang City, Changde City, Zhangjiajie City,

                        Chenzhou
City, Yiyang City, Loudi Prefecture, Huaihua

                        City,
Jishou City

Guangdong Province      Guangzhou City, Shenzhen City, Zhuhai City, Shantou

                        City,
Shaoguan City, Huizhou City, Shanwei City,

                        Dongguan
City, Zhongshan City, Jiangmen City, Foshan

                        City,
Zhanjiang City, Zhaoqing City, Yunfu City,

                        Qingyuan
City, Chaozhou City, Jieyang City

Guangxi Zhuang          Nanning City, Liuzhou City, Guilin City, Wuzhou City,
Autonomous Region       Yulin City, Guigang City, Nanning Prefecture (Shanglin

                        County,
Chongzuo County, Binyang County, Heng County),

                        Liuzhou
Prefecture (Heshan County, Laibin County,

                        Luzhai
County), Guilin Prefecture (Lingchuan County,

                        Quanzhou
County, Xing’an County, Lipu County, Yongfu

                        County),
Hezhou Prefecture (Hezhou City, Zhongshan

                        County),
Hechi Prefecture (Hechi City, Yizhou City)

Chongqing Municipality  Yuzhong District, Jiangbei District, Shapingba

                        District,
Nan’an District, Jiulongpo District, Dadukou

                        District,
Yubei District, Beibei District, Banan

                        District
as well as Wansheng District, Shuangqiao

                        District,
Fuling District, Yongchuan City, Hechuan

                        City,
Jiangjin City, Changshou County, Rongchang

                        County,
Dazu County, Qijiang County, Bishan County,

                        Tongliang
County, Tongnan County

Sichuan Province        Chengdu City, Zigong City, Panzhihua City, Luzhou

                        City,
Deyang City, Mianyang City, Suining City,

                        Neijiang
City, Leshan City, Nanchong City, Yibin City,

                        Guang’an
Prefecture, Meishan Prefecture

Guizhou Province        Guiyang City, Zunyi City, Anshun Prefecture, Xingyi

                        City,
Kaili City, Duyun City

Yunnan Province         Kunming City, Qujing City, Yuxi City, Zhaotong City,

                        Gejiu
City, Kaiyuan City, Chuxiong City



Appendix II: Sulphur Dioxide Pollution Control Areas



Provinces, Autonomous
Regions and                          
Scopes of Control Zones
Municipalities               (Impoverished Counties to Which
the State Gives
Directly under the                 Special Support
Are Exceptions)
Central Government

Beijing Municipality    Dongcheng District, Xicheng District, Xuanwu District,

                        Chongwen
District, Chaoyang District, Haidian

                        District,
Fengtai District, Shijingshan District as

                        well
as Mentougou District, Tongzhou District,

                        Fangshan
District, Changping County and Daxing County

Tianjin Municipality    Urban districts

Hebei Province          Urban districts of Shijiazhuang City, and Xinji City,

                        Gaocheng
City, Jinzhou City, Xinle City, Luquan City

                        Urban
districts of Handan City, and Wu’an City

                        Urban
districts of Xingtai City, and Nangong City,

                        Shahe
City

                        Urban
districts of Baoding City, and Zhuozhou City,

                        Dingzhou
City, Anguo City, Gaobeidian City

                        Urban
districts of Zhangjiakou City

                        Urban
districts of Chengde City

                        Urban
districts of Tangshan City, and Zunhua City,

                        Fengnan
City

                        Urban
districts of Hengshui City

Shanxi Province         Urban districts of Taiyuan City, and Gujiao City

                        Urban
districts of Datong City

                        Urban
districts of Yangquan City

                        Urban
districts of Shuozhou City

                        Xinzhou
City

                        Yuci
City

                        Linfen
City

                        Yuncheng
City

Inner Mongolia          Urban districts of Huhhot City
Autonomous Region       Urban districts of Baotou City, and Shiguai Mining

                        District,
Tumote Right Banner

                        Urban
districts of Wuhai City

                        Urban
districts of Chifeng City

Liaoning Province       Urban districts of Shenyang City, and Xinmin City

                        Urban
districts of Dalian City

                        Urban
districts of Anshan City, and Haicheng City

                        Urban
districts of Fushun City

                        Urban
districts of Benxi City

                        Urban
districts of Jinzhou City, and Linghai City

                        Urban
districts of Huludao City, and Xingcheng City

                        Urban
districts of Fuxin City

                        Urban
districts of Liaoyang City

Jilin Province          Urban districts of Jilin City, and Huadian City,

                        Jiaohe
City, Shulan City

                        Urban
districts of Siping City, and Gongzhuling City

                        Urban
districts of Tonghua City, and Meihekou City,

                        Ji’an
City

                        Yanji
City

Jiangsu Province        Urban districts of Xuzhou City, and Pizhou City, Xinyi

                        City

Shandong Province       Urban districts of Jinan City, and Zhangqiu City

                        Urban
districts of Qingdao City, and Jiaonan City,

                        Jiaozhou
City, Laixi City

                        Urban
districts of Zibo City

                        Urban
districts of Zaozhuang City, and Tengzhou City

                        Urban
districts of Weifang City, and Qingzhou City,

                        Gaomi
City, Changyi City

                        Urban
districts of Yantai City, and Longkou City,

                        Laiyang
City, Laizhou City, Zhaoyuan City, Haiyang City

                        Urban
districts of Jining City, and Qufu City, Yanzhou

                        City,
Zoucheng City

                        Urban
districts of Tai’an City, and Xintai City,

                        Feicheng
City

                        Urban
districts of Laiwu City

                        Urban
districts of Dezhou City, and Leling City,

                        Yucheng
City

Henan Province          Urban districts of Zhengzhou City, and Gongyi City

                        Urban
districts of Luoyang City, and Yanshi City,

                        Mengjin
County

                        Urban
districts of Jiaozuo City, and Qinyang City,

                        Mengzhou
City, Xiuwu County, Wen County, Wuzhi County,

                        Bo’ai
County

                        Urban
districts of Anyang City, and Linzhou City

                        Urban
districts of Sanmenxia City, and Yima City,

                        Lingbao
City

                        Urban
districts of Jiyuan City

Shaanxi Province        Urban districts of Xi’an City

                        Urban
districts of Tongchuan City

                        Urban
districts of Weinan City, and Hancheng City,

                        Huayin
City

                        Shangzhou
City

Gansu Province          Urban districts of Lanzhou City

                        Urban
districts of Jinchang City

                        Urban
districts of Baiyin City

                        Zhangye
City

Ningxia Hui             Urban districts of Yinchuan City
Autonomous Region       Urban districts of Shizuishan City

Xinjiang Uygur          Urban districts of Urumqi City
Autonomous Region








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...