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2004

CONSERVING ENERGY

Law of the People’s Republic of China on Conserving Energy

     (Adopted at the 28th Meeting of the Standing Committee of the Eighth National People’s Congress on November 1, 1997)

CHAPTER I GENERAL PROVISIONS

   Article 1 This Law is formulated in order to promote energy conservation by all sectors of the society, increase the efficiency in the use
of energy and its economic results, protect the environment, ensure national economic and social development, and meet the people’s
needs in everyday life.

   Article 2 The term “energy” as used in this Law refers to coal, crude oil, natural gas, power, coke, coal gas, heat, processed oil, liquefied
petroleum gas, biomass energy and other resources from which useful energy can be derived directly or through processing or conversion.

   Article 3 The term “energy conservation” as used in this Law means: enhancing management in the use of energy; adopting measures which are
technologically feasible, economically rational, and, by reducing loss and waste at every stage from production through to consumption
of energy, environmentally and socially acceptable in order to use energy more efficiently and rationally.

   Article 4 Energy conservation is a long-term concept of strategy of the State for national economic development.

The State Council and the people’s governments of provinces, autonomous regions, and municipalities directly under the Central Government
shall strengthen their efforts in energy conservation; readjust in a rational way the industrial structure, pattern of enterprises,
product mix and pattern of energy consumption; facilitate technological progress for energy conservation; reduce energy consumption
per unit output value and per unit product; and improve the exploitation, processing, conversion, transmission and supply of energy
so as to gradually increase the utilization rate of energy and promote the development of the national economy in an energy-efficient
manner.

The State encourages the development and utilization of new and renewable resources of energy.

   Article 5 The State formulates policies and plans for energy conservation, which shall be incorporated into plans for national economic and
social development so as to ensure the rational utilization of energy resources and coordinate energy conservation with economic
development and environmental protection.

   Article 6 The State encourages and supports research and dissemination of science and technology for energy conservation and makes greater
efforts to publicize and educate the people in the importance of energy conservation, spreading scientific knowledge about energy
conservation among all the people so as to enhance their awareness of the need.

   Article 7 All organizations and individuals shall fulfill their obligation to conserve energy and have the right to report against any waste
of energy.

The people’s governments at all levels shall give rewards to any organizations or individuals that achieve outstanding successes in
energy conservation or in research or dissemination of science and technology for energy conservation.

   Article 8 The administrative department for energy conservation under the State Council shall be in charge of supervision over and administration
of the work for energy conservation throughout the country. The relevant departments under the State Council shall exercise supervision
and administration in the work within the scope of their functions and responsibilities respectively.

The administrative departments for energy conservation under the local people’s governments at or above the county level shall be
in charge of supervision over and administration of the work for energy conservation in their respective administrative areas. The
relevant departments of the local people’s governments at or above the county level shall exercise supervision and administration
in the work within the scope of their functions and responsibilities respectively.

CHAPTER II ADMINISTRATION OF ENERGY CONSERVATION

   Article 9 The State Council and the local people’s governments at all levels shall strengthen leadership in energy conservation, making plans
for, coordinating, supervising, inspecting and promoting the work of energy conservation every year.

   Article 10 The State Council and the people’s governments of provinces, autonomous regions, and municipalities directly under the Central Government
shall, according to the principle of making efforts simultaneously to conserve energy and exploit it while giving first priority
to the former, decide on the optional energy conservation and exploitation projects for investment and work out plans for such investment
on the basis of a comparative demonstration in terms of technology, economy and environment with regard to energy conservation and
exploitation.

   Article 11 The State Council and the people’s governments of provinces, autonomous regions, and municipalities directly under the Central Government
shall allocate funds for energy conservation in funds for capital construction and technical upgrading to support rational utilization
of energy and exploitation of new and renewable energy resources.

People’s governments at the municipal and county levels shall allocate funds for energy conservation according to their actual conditions
in order to support rational utilization of energy and exploitation of new and renewable energy resources.

   Article 12 Special demonstration of rational use of energy shall be included in the feasibility study reports of fixed assets projects for investment.

The fixed assets projects for investment shall be designed and constructed in conformity with the standards for rational use of energy
and for energy conservation design.

Organs authorized with the power of examining and approving construction projects according to law may not approve the construction
of projects which fail to conform to the standards for rational use of energy and for energy conservation design or accept such projects
when completed.

   Article 13 It is prohibited to construct new industrial projects that are technically outdated, highly energy-consuming, and prodigiously wasting
energy. The administrative department for energy conservation under the State Council shall, together with the other relevant departments
under the State Council, prepare a catalogue of highly energy-consuming industrial projects that are prohibited from being constructed
and shall formulate specific measures for implementation.

   Article 14 The administrative department for standardization under the State Council shall formulate the national standards for energy conservation.

In the absence of the national standards mentioned above, the relevant departments under the State Council may formulate according
to law trade standards for energy conservation and submit them to the administrative department for standardization under the State
Council for the record.

Standards for energy conservation shall be technically advanced and economically rational and be subject to continued improvement.

   Article 15 The administrative department for energy conservation under the State Council shall, together with the relevant departments under
the State Council, exercise strict supervision over the trades and professions that turn out widely used energy-using products in
large quantities and urge them to adopt energy-conserving measures, make efforts to improve product design and manufacturing technology
and gradually reduce energy consumption per unit product in respective trades and professions.

   Article 16 The administrative department for energy conservation of the people’s governments at or above the provincial level shall, together
with the relevant departments of the corresponding governments, set quotas for energy consumption per unit product for products which
consume excessive amounts of energy in the course of production.

The quota for energy consumption per unit product shall be set in a scientific and rational manner.

   Article 17 The State applies an elimination system for outdated and highly energy-consuming products and equipment.

A catalogue of highly energy-consuming products and equipment to be eliminated shall be decided on by the administrative department
for energy conservation under the State Council together with the relevant departments under the State Council and made known to
the public. The said departments shall likewise formulate specific measures for implementation.

   Article 18 Enterprises may, on a voluntary basis and in accordance with the State regulations regarding certification of product quality, apply
to the administrative department for supervision over product quality under the State Council or to the certification agencies confirmed
by the organs authorized by the said department under the State Council for certifying the quality of their energy-using products
in terms of energy conservation. After being proved qualified, the enterprises shall obtain the certificates for the quality of their
energy-using products in terms of energy conservation and have labels bearing such certificates affixed to their energy-using products
or to the packaging thereof.

   Article 19 The statistics institutions of the people’s governments at or above the county level shall, together with the relevant departments
of the corresponding governments, compile accurate statistics on energy consumption and utilization and regularly issue statistics
bulletins about energy consumption per unit product for major energy-consuming products, etc.

   Article 20 The State shall exercise strict administration of energy conservation in key energy-using units.

The following are key energy-using units:

(1) units that consume an annual total of energy equaling over 10,000 tons of standard coal each; and

(2) units that consume an annual total of energy equaling between 5,000 and 10,000 tons of standard coal each, as determined by the
relevant department under the State Council or the administrative departments for energy conservation of the people’s governments
of provinces, autonomous regions, and municipalities directly under the Central Government.

The administrative departments for energy conservation of the governments at or above the county level shall see to it that the relevant
departments exercise supervision over and conduct inspection of energy utilization in the key energy-using units, and they may entrust
units that are technically qualified with the test and measurement of energy conservation.

The administrative department for energy conservation under the State Council shall, together with the relevant departments under
the State Council, set the requirements and formulate measures for energy conservation and administration in the key energy-using
units.

CHAPTER III RATIONAL USE OF ENERGY

   Article 21 Energy-using units shall, in accordance with the principle of rational use of energy, exercise strict administration of energy conservation,
formulate and implement technical measures for energy conservation in respective units so as to reduce energy consumption.

Energy-using units shall conduct education in energy conservation and train the employees concerned for the purpose.

Employees who have not received any education or training in energy conservation shall not be allowed to operate energy-consuming
machines.

   Article 22 Energy-using units shall improve their quantitative management in respect of energy, and establish a sound system of energy consumption
statistics and of energy utilization analysis.

   Article 23 Energy-using units shall establish a responsibility system for energy conservation and grant rewards to collectives and individuals
that achieve successes in energy conservation.

   Article 24 Units that manufacture energy-consuming products shall comply with the quota set for energy consumption per unit product according
to law.

Units that use energy exceeding the quota for energy consumption per unit product to a serious extent shall be required to solve the
problem within a time limit. This shall be determined by the administrative departments for energy conservation of the people’s governments
at or above the county level within the limits of authority as prescribed by the State Council.

   Article 25 Units or individuals that manufacture or sell energy-using products or use energy-using equipment shall stop producing and selling
such products and using such equipment, which the State has formally decided to eliminate, within the time limit set by the administrative
department for energy conservation together with the relevant departments under the state Council, and they may not transfer such
equipment to any other users.

   Article 26 Units and individuals that manufacture energy-using products shall have the norm for energy consumption clearly indicated on the
labels affixed to their products or in the specifications thereof.

   Article 27 Units and individuals that manufacture energy-using products may not use labels bearing forged certificates for the quality of their
energy-conserving products or labels bearing the certificates for the quality of another’s energy-conserving products.

   Article 28 Key energy-using units shall, in accordance with the relevant regulations of the State, regularly submit reports on their utilization
of energy. These reports shall include information on energy consumption, energy efficiency, analysis of the benefits derived from
energy conservation and the measures taken for energy conservation.

   Article 29 Key energy-using units shall establish positions for administration of energy, appoint employees to such positions from among the
ones who have the expertise for and practical experience in energy conservation and who have the technical post_title at or above the
level of engineer, and report the matter to the administrative department for energy conservation and the relevant departments of
the people’s government at or above the county level for the record.

Energy administrators shall be responsible for supervision over and inspection of their own units’ utilization of energy.

   Article 30 Employees of any units as well as other rural and urban residents who use such energy as electricity, coal gas, natural gas and coal
produced by enterprises shall have the amount used measured and pay for it in accordance with State regulations. Such energy may
not be used without compensation and no payment shall be made at a lump rate.

   Article 31 Units producing and supplying energy shall provide energy to energy-using units in accordance with the provisions of laws, regulations
and contracts.

CHAPTER IV BETTERMENT OF ENERGY CONSERVATION TECHNOLOGY

   Article 32 The State encourages and supports the development of advanced technology for energy conservation, determines the priority and direction
for the endeavor, establishes and keeps improving the service system for such technology, and fosters and standardizes the market
for it.

   Article 33 The State coordinates efforts for scientific research of key energy conservation projects and demonstration projects of energy conservation
and recommends energy conservation projects for dissemination, providing guidance for enterprises, institutions and individuals to
employ advanced techniques, skills, equipment and material for energy conservation.

The State formulates preferential policies in support of projects for demonstration and dissemination of energy conservation.

   Article 34 The State encourages the introduction of advanced energy conservation technology and equipment from abroad and prohibits the introduction
of outdated energy-using technology, equipment or material from abroad.

   Article 35 The funds allocated by the State Council and the people’s governments of provinces, autonomous regions, and municipalities directly
under the Central Government for scientific research shall include funds for conserving energy, which shall be used for research
in advanced technology for energy conservation.

   Article 36 People’s governments at or above the county level shall coordinate the efforts of the relevant departments to promote, in accordance
with the State’s industrial policy and policy for energy conservation technology, scientific and rational specialized production
that meets the requirements of energy conservation.

   Article 37 In designing and constructing buildings, energy-conserving building structures, materials, appliances and products shall be employed
according to the provisions of relevant laws and administrative rules and regulations in order to improve thermal and insulating
performance and reduce energy consumption for heating, cooling and lighting purposes.

   Article 38 People’s government’s at all levels shall, in accordance with the principles of suitability to local conditions, provision of multiple
forms of energy to complement each other, comprehensive utilization and stress on benefits, enhance development of energy in rural
areas and exploit and utilize methane, solar energy, wind energy, hydro energy, geothermal energy, and other renewable and new energy
resources.

   Article 39 The State encourages the development of the following universal energy conservation technologies:

(1) promote the wide use of cogeneration of heat and power and district heating, increase the utilization rate of heat and power units,
developheat-cascading technology, combined heat, power and cooling technology and combined heat, power and coal gas technology, and
increase the efficiency of thermal energy application in an all-round way;

(2) gradually achieve more-efficient operation of electric motors, fans, pumping equipment and systems; develop adjustable speed motor
drives for energy conservation and electric-electronic power saving technology; develop, produce and disseminate the use of high-quality
and low-cost energy-efficient appliances and equipment; and increase the efficiency of electric power;

(3) develop and disseminate the use of clean coal technologies, including fluidized bed combustion, smokeless combustion, and gasification
and liquefaction, that are suited to domestic coals in order to increase coal utilization efficiency; and

(4) develop and disseminate other universal energy-efficient technologies that are proved mature and yield remarkable benefits.

   Article 40 Each trade and profession shall work out policies for energy- efficient technology for its own trade or profession, develop and disseminate
new energy-efficient technologies, techniques, equipment and materials, restrict or eliminate energy-consuming outdated technologies,
techniques, equipment and materials.

   Article 41 The administrative department for energy conservation under the State Council shall, together with the relevant departments under
the State Council, formulate both general technical norms, requirements and measures for energy conservation and specific ones for
different trades and professions, and modify them in keeping with economic growth and progress in energy conservation technology
with the aim of increasing energy utilization rate, reducing energy consumption and gradually bringing China’s energy utilization
up to the advanced international level.

CHAPTER V LEGAL RESPONSIBILITY

   Article 42 Where a highly energy-consuming industrial project, the construction of which is formally prohibited by the State, is put up in violation
of the provisions of Article 13 of this Law, the administrative department for energy conservation of the people’s government at
or above the county level shall submit its proposal to the people’s government to which it belongs that the government shall, in
line with the limits of authority as prescribed by the State Council, order suspension of production or use of the project.

   Article 43 Where an enterprise that manufactures energy-consuming products uses energy exceeding the quota set for energy consumption per unit
product, in violation of the provisions of Article 24 of this Law and to a serious extent, and fails to solve the problem or meet
the requirements within the time limit, the administrative department for energy conservation of the people’s government at or above
the county level may submit its proposal to the people’s government to which it belongs that the government shall, in line with the
limits of authority as prescribed by the State Council, order suspension of production for consolidation or closedown.

   Article 44 Where an enterprise that, in violation of the provisions of Article 25 of this Law, produces or sells energy-using products which
the State has eliminated by official order, the administrative department for supervision over product quality of the people’s government
at or above the county level shall order that it stop producing or selling such products, confiscate such products and the illegal
gains therefrom and impose a fine of not less than one time but not more than five times the illegal gains; and the administrative
department for industry and commerce of the people’s government at or above the county level may revoke its business license.

   Article 45 Where an enterprise uses, in violation of the provisions of Article 25 of this Law, energy-using equipment which the State has eliminated
by official order, the administrative department for energy conservation of the people’s government at or above the county level
shall order that it stop using such equipment and have the equipment confiscated; if the circumstances are serious, the said department
may submit its proposal to the people’s government to which it belongs that the government shall, in line with the limits of authority
as prescribed by the State Council, order suspension of operation for consolidation or close-down.

   Article 46 Where a unit or individual, in violation of the provisions of Article 25 of this Law, transfers eliminated energy-using equipment
to another user, the administrative department for supervision over product quality of the people’s government at or above the county
level shall confiscate its or his illegal gains and impose a fine of not less than one time but not more than five times the illegal
gains.

   Article 47 Where a unit or individual, in violation of the provisions of Article 26 of this Law, fails to clearly indicate the norm for energy
consumption in its or his product specifications or labels, the administrative department for supervision over product quality of
the people’s government at or above the county level shall order that it or he make amends within a time limit and may impose a fine
of not more than 50,000 yuan.

Where a unit or individual, in violation of the provisions of Article 26 of this Law, indicates the norms for energy consumption,
in its or his product specifications or labels, that do not conform to the actual conditions of the products, the unit or individual
concerned shall, in addition to being punished in accordance with the provisions of the preceding paragraph, bear civil liabilities
in accordance with the provisions of relevant laws.

   Article 48 Where a unit or individual, in violation of the provisions of Article 27 of this Law, uses labels bearing forged certificates for
the quality of their energy-conserving products or labels bearing the certificates for the quality of another’s energy-conserving
products, the administrative department for supervision over product quality of the people’s government at or above the county level
shall order that it or he publicly make amends and shall confiscate its or his illegal gains and may also impose a fine of not less
than one time but not more than five times the illegal gains.

   Article 49 Any State functionary who, in the work of energy conservation, abuses his power, neglects his duty or engages in malpractices for
personal gain to such an extent as to constitute a crime shall be investigated for criminal responsibility according to law. If it
does not constitutes a crime, he shall be given administrative sanctions.

CHAPTER VI SUPPLEMENTARY PROVISIONS

   Article 50 This law shall go into force as of January 1, 1998.

    

Source:China Internet Information Center

EDITOR:Victor





LAND ADMINISTRATION LAW OF THE PEOPLE’S REPUBLIC OF CHINA




e03665

The Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No.8

Adopted at the 16th Meeting of the Standing Committee of the Sixth National People’s Congress on June 25, 1986, amended in pursuance
of the(Decision on the Amendment of the Land Administration Law of the People’s Republic of China) made at the 5th Meeting of the
Standing Committee of the Seventh National People’s Congress on December 29, 1988 and revised at the 4th Meeting of the Standing
Committee of the Ninth National People’s Congress on August 29, 1998.

The Standing Committee of the National People’s Congress

August 29, 1998

Land Administration Law of the People’s Republic of China

Chapter I General Provisions

Article 1

This Law is enacted in accordance with the Constitution with a view to strengthening land administration, safeguarding the socialist
public ownership of land, protecting and developing land resources, rationally utilizing the land, earnestly protecting the cultivated
land and promoting sustainable socio-economic development.

Article 2

The People’s Republic of China practises the socialist public ownership of land, namely ownership by the whole people and collective
ownership by the laboring masses.

Ownership by the whole people namely the ownership of state-owned land shall be exercised by the State Council on behalf of the state.

No unit or individual shall infringe on and occupy, buy and sell or illegally transfer land in other forms. Land use right may be
transferred in accordance with law.

The state may, one of necessity of public interest, requisition land collectively owned in accordance with law.

The state practises the system of paid-for use for state-owned land in accordance with law. However, appropriation of state-owned
land use right by the state within the scope prescribed by law is excluded.

Article 3

Most sparing and rational land utilization and earnest protection of cultivated land constitute China’s basic state policy. People’s
governments at all levels should take measures in overall planning, strict administration, protection and development of land resources
and curbing illegal acts of occupation of land.

Article 4

The state practises the system of land use control.

The state compiles overall planning for land utilization, provides for land uses and classifies land as farm land, land for construction
and un-utilized land. Strict restriction shall be imposed on turning farm land into land for construction, quantum of land for construction
shall be controlled and special protection provided for cultivated land.

Farm land referred to in the preceding paragraph means land used directly for agricultural production including cultivated land, forest
land, grassland, land for farmland water conservancy and water surface for cultivation and breeding; land for construction means
land for building constructions and structures including land for urban and rural residences and public facilities, land for industries
and mines, land for communications and water conservancy works, land for tourism and land for military installations; un-utilized
land means land other than farm land and land for construction.

Any unit or individual that uses land must use the land in strict accordance with the uses determined by the overall planning for
land utilization.

Article 5

The competent department of land administration under the State Council shall be uniformly responsible for the work of land administration
and supervision nationwide.

The establishment of competent departments of land administration of local people’s governments at or above the county level and their
responsibilities shall be determined by the people’s governments of the provinces, autonomous regions and municipalities directly
under the Central Government pursuant to the relevant provisions of the State Council.

Article 6

Any unit or individual has the obligation to abide by the laws and regulations on land administration and has the right to report
on or file a charge against any act violating the laws and regulations on land administration.

Article 7

Units and individuals that have made remarkable achievements in the protection and development of land resources, rational utilization
of land and conduct of related scientific research shall be rewarded by the people’s government.

Chapter II Land Ownership and Use Right

Article 8

Land in urban areas of cities belongs to the state.

Land in rural areas and suburban areas of cities excluding those belonging to the state prescribed by law belongs to peasants’ collective
ownership; house sites, land allotted for personal needs and hilly land allotted for private use belongs to peasants’ collective
ownership.

Article 9

State-owned land and land collectively owned by peasants may be determined in accordance with law to be used by units or individuals.
Units and individuals using the land have the obligation to protect, manage and rationally utilize the land.

Article 10

Peasants’ collectively-owned land that belongs to peasants’ collective ownership of a village according to law shall be managed and
administered by the village collective economic organization or villagers’ committee; the land that belongs separately to more than
two rural collective economic organizations and owned collectively by peasants shall be managed and administered by the respective
rural collective economic organizations or villagers’ teams; the land that belongs to village(township) peasants’ collective ownership
shall be managed and administered by the village(township) rural collective economic organization.

Article 11

People’s governments at the county level shall enter into registration in a register, issue certificates in confirmation of the ownership
for the land collectively owned by peasants.

People’s governments at the county level shall enter into registration in a register, issue certificates in confirmation of the land
use right for construction for land collectively owned by peasants to be used for non-agricultural construction in accordance with
law. People’s governments at or above the county level shall enter into registration in a register and issue certificates in confirmation
of the right to use for state-owned land used by units and individuals in accordance with law; among which the specific registration
and certificate-issuing organ for state-owned land used by the Party and state organs shall be determined by the State Council. Confirmation
of ownership or the right to use of forest land and grassland, confirmation of the right to use for cultivation and breeding of water
surface and beaches and shoals shall be handled pursuant to the relevant provisions of the ((Forest Law of the People’s Republic
of China)),the ((Grassland Law of the People’s Republic of China)) and the ((Fishery Law of the People’s Republic of China)).

Article 12

Whoever changes land ownership and use in accordance with law should go through formalities of change in registration of land.

Article 13

The land the ownership and the right to use of which have been registered in accordance with law is protected by law, upon which no
unit and individual shall infringe.

Article 14

Land collectively owned by peasants shall be contracted for management by members of the respective collective economic organization
for cultivation, forestry, animal husbandry and fishery production. The duration of land contracting and management shall be 30 years.
The contract issuing party and the contractor should conclude a contract agreeing on the rights and obligations of both parties.
Peasants who contract management of the land have the obligation to protect and utilize the land pursuant to the agreement in the
contract. Peasants’ right to contract land for management is protected by law.

Within the duration of land contracting and management, in the event of appropriate adjustment of land contracted among individual
contractors, it must have the consent of over two thirds of the members of the villagers’ conference or over two thirds of the villagers’
representatives, and be submitted to the competent department of agriculture administration of village(township) people’s government
and people’s government at the county level for approval.

Article 15

State-owned land may be contracted for management by units or individuals for cultivation, forestry, animal husbandry and fishery
production. Land collectively owned by peasants may be contracted and managed by units or individuals other than those in the collective
economic organization for cultivation, forestry, animal husbandry and fishery production. The contract issuing party and the contractor
should conclude a contract agreeing on the rights and obligations of both parties. The duration of land contracting and management
shall be agreed on in the contract. The units and individuals that contract the land for management have the obligation to protect
and rationally utilize the land pursuant to the use agreed on in the contract.

For land collectively owned by peasants contracted out for management by units or individuals other than those in the respective collective
economic organization, it must have the consent of over two thirds of the members of the peasants’ conference or over two thirds
of the villagers’ representatives and be submitted to the village(township) people’s government for approval.

Article 16

Disputes over land ownership and the right to use shall be resolved by the parties interested through consultation; it shall be handled
by the people’s government in the event of failure of consultation.

Disputes between units shall be handled by people’s governments at or above the county level; disputes between individuals and those
between an individual and a unit shall be handled by the village-level people’s governments or people’s governments at or above the
county level.

The party interested that refuses to obey the decision on the handling by the people’s government concerned may, within 30 days starting
from the date of receipt of the notice on the decision on handling, file a suit at a people’s court.

Neither party shall alter the status of land utilization prior to the resolution of the dispute over the land ownership and the right
to use.

Chapter III Overall Planning for Land Utilization

Article 17

People’s governments at all levels should, pursuant to the planning for national socio-economic development, requirements of territorial
treatment and resources and environment protection, land supply ability as well as the demand for land for various construction,
organize the compilation of overall planning for land utilization.

The duration of planning for overall planning for land utilization shall be determined by the State Council.

Article 18

The overall planning for land utilization at the lower level shall be compiled pursuant to the overall planning for land utilization
at the next higher level.

The quantum of land for construction in the overall planning for land utilization compiled by local people’s governments at all levels
shall not exceed the control targets determined in the overall planning for land utilization at the next higher level, and the quantum
of preserved cultivated land shall not be lower than the control targets determined by the overall planning for land utilization
at the next higher level.

The overall planning for land utilization compiled by people’s governments of the provinces, autonomous regions and municipalities
directly under the Central Government should ensure that there is no reduction in the quantum of cultivated land within their respective
administrative areas.

Article 19

The overall planning for land utilization shall be compiled in accordance with the following principles:

(1)

strict protection of basic farmland, control of occupation of farmland for non-agricultural construction;

(2)

improvement of land use rate;

(3)

overall arrangement for land for various purposes and various areas;

(4)

protection and improvement of the ecological environment, and guarantee of sustainable land use; and

(5)

balance between occupation of cultivated land and development and reclamation of cultivated land.

Article 20

The overall planning for land utilization at the county level should delimit land use zones and define land uses.

Village(township) overall planning for land utilization should delimit land use zones, determine the use of every plot of land on
the basis of the conditions for land use and an announcement to the effect shall be made.

Article 21

Overall planning for land utilization shall be examined and approved by different levels.

The overall planning for land utilization of the provinces, autonomous regions and municipalities directly under the Central Government
shall be submitted to the State Council for approval.

The overall planning for land utilization of municipalities wherein the people’s governments of the provinces and autonomous regions
are located and municipalities of a population of over one million as the municipalities designated by the State Council shall, upon
the examination and consent of the people’s governments of the provinces and autonomous regions, be submitted to the State Council
for approval.

The overall planning for land utilization other than those prescribed in the Second Paragraph and Third Paragraph of this Article
shall be submitted level by level to the people’s governments of the provinces, autonomous regions and municipalities directly under
the Central Government for approval; among which the village(township) overall planning for land utilization may be approved by the
people’s governments of municipalities and autonomous prefectures with subordinate districts with authorization by the people’s governments
at the provincial level.

The overall planning for land utilization once approved must be strictly implemented.

Article 22

The scale of land used for urban construction should meet the standards set by the state, full use of the existing land for construction
should be made, and no farmland or as less as possible farmland should be occupied.

Urban overall planning, village and township planning should be coupled with overall planning for land utilization, the scale of land
used for construction in urban overall planning, village and township planning must not exceed the scale of land used for urban,
village and township construction determined in the overall planning for land utilization.

Within urban planning zones, village and township planning zones, land used for urban, village and township construction should accord
with urban planning and village and township planning.

Article 23

Planning for integrated harnessing, development and exploitation of rivers and lakes should be coupled with overall planning for land
utilization. Within the range of administration and protection of rivers, lakes and reservoirs as well as within flood storage areas
and flood detention areas, land utilization should accord with the planning for integrated harnessing, development and exploitation
of rivers and lakes, accord with the requirements for flood passage, flood storage and discharge of water in river courses and lakes.

Article 24

People’s governments at all levels should strengthen administration of land utilization plan and practise quantum control of land
used for construction.

Annual land use plan shall be compiled pursuant to the national socio-economic development plan, state industrial policies, overall
planning for land utilization as well as the actual conditions of land used for construction and land utilization. The annual land
use plan, the procedures for the compilation, examination and approval of which are identical to those for the compilation, examination
and approval of the overall planning for land utilization, once examined, approved and transmitted to the lower levels, must be strictly
adhered to.

Article 25

People’s governments of the provinces, autonomous regions and municipalities directly under the Central Government should list the
state of implementation of the annual land use plan as content of the state of implementation of the national socio-economic development
plan and report to the people’s congresses at the corresponding level.

Article 26

Revision of the approved overall planning for land utilization must be submitted to the original approval organ for approval; no alteration
shall be made in land uses determined in the overall planning for land utilization without approval.

In case of necessity of alteration in overall planning for land utilization for land for construction of big-size energy, transport
and water conservancy infrastructure approved by the State Council, revision of the overall planning for land utilization shall be
made pursuant to the approval document of the State Council.

In case of necessity of alteration in overall planning for land utilization for land for construction of energy, transport and water
conservancy infrastructure approved by people’s governments of the provinces, autonomous regions and municipalities directly under
the Central Government, where it falls within the authority of approval for the overall planning for land utilization of people’s
governments at the provincial level, revision of the overall planning for land utilization shall be made pursuant to the approval
document of the people’s governments at the provincial level.

Article 27

The state establishes the land survey system.

The competent departments of land administration of people’s governments at and above the county level shall, in conjunction with
the departments concerned at the corresponding level, conduct land survey. Land owners or users should cooperate in the survey and
provide relevant materials.

Article 28

The competent departments of land administration of people’s governments at and above the county level shall, in conjunction with
the departments concerned at the corresponding level and in pursuance of land survey results, planned land uses and uniform standards
set by the state, evaluate the grades of land.

Article 29

The state establishes land statistics system.

The competent departments of land administration of people’s governments at and above the county level and the statistics departments
at the corresponding level jointly formulate statistical survey schemes, carry our land statistics in accordance with law and publish
land statistical information at regular intervals. Land owners or users should provide relevant information and must not make false
reports, concealments, refuse to report and delay in report.

The competent departments’ of land administration and statistics departments’ jointly published land area statistical information
constitute the basis of people’s governments at all levels for the compilation of overall planning for land utilization.

Article 30

The state establishes the national land administration information system for dynamic monitoring of the state of land utilization.

Chapter IV Cultivated Land Protection

Article 31

The state protects cultivated land and strictly controls turning cultivated land into non-cultivated land.

The state practises the system of compensation for the occupation and use of land. For the occupation and use of cultivated land for
non-agricultural construction with approval, the unit that occupies and uses cultivated land shall be responsible for the reclamation
of cultivated land equivalent to the quantity and quality of cultivated land occupied and used in accordance with the principle of
“quantity of reclaimed land being equivalent to that occupied”; where there are no conditions for reclamation or the reclaimed land
does not conform to requirements, cultivated land reclamation fee should be paid as prescribed by the provinces, autonomous regions
and municipalities directly under the Central Government, the special-purpose fund shall be used for the reclamation of new cultivated
land.

People’s governments of the provinces, autonomous regions and municipalities directly under the Central Government should work out
cultivated land reclamation plan, supervise units that occupy and use cultivated land in the reclamation of cultivated land in accordance
with the plan or in the organization of reclamation of cultivated land in accordance with the plan and carry out acceptance checks.

Article 32

Local people’s governments at and above the county level may demand the units that occupy and use cultivated land to use the soil
of the cultivated layer of cultivated land for soil improvement of newly reclaimed cultivated land, inferior quality land or other
cultivated land.

Article 33

People’s governments of the provinces, autonomous regions and municipalities directly under the Central Government should strictly
implement the overall planning for land utilization and annual land use plan and take measures to ensure that there is no decrease
in the quantum of cultivated land within their respective administrative areas; where there is decrease in the quantum of cultivated
land, the locality shall be ordered by the State Council to organize reclamation of cultivated land the quantity and quality of which
is equivalent to those reduced within the specified time period, and the competent department of land administration under the State
Council shall in conjunction with the competent department of agriculture administration conduct acceptance checks. Individual province
or municipality directly under the Central Government whose quantum of newly reclaimed cultivated land is not adequate to compensate
the quantum of cultivated land occupied and used after land used for newly added construction for paucity of reserve land resources,
a report must be submitted to the State Council for approval for the reduction and exemption of the quantity of reclamation of cultivated
land within the respective administrative area and reclamation be carried out in another place.

Article 34

The state practises the system of protection for basic farmland. The following cultivated land shall be included in the basic farmland
protection zones in accordance with the overall planning for land utilization and strict administration exercised:

(1)

cultivated land within production bases for food grains, cotton and oils determined upon approval by the competent departments concerned
under the State Council or local people’s governments at and above the county level;

(2)

cultivated land with good water conservancy and water and soil conservation works, medium and low yield farmland the transformation
plan of which is being carried out as well as those that may be transformed;

(3)

production bases for vegetables;

(4)

experimental plots for agricultural scientific research and teaching; and

(5)

other cultivated land that should be included in basic farmland protection zones as prescribed by the State Council.

The basic farmland delimited by the provinces, autonomous regions and municipalities directly under the Central Government should
account for over eighty percent of the cultivated land within the respective administrative areas.

A basic farmland protection zone shall be delimited and demarcated with a village(township) as a unit, the delimitation of a zone
and demarcation of the boundary shall be organized and carried out by the competent department of people’s government at the county
level in conjunction with the competent department of agriculture administration at the same level.

Article 35

People’s governments at all levels should take measures to maintain irrigation and drainage works, improve soil and soil fertility,
prevent land desertification, salinization, water and soil erosion and land pollution.

Article 36

Economy in land use must be practised for non-agricultural construction, no cultivated land shall be occupied and used where barren
land can be used; no good land shall be occupied and used where inferior land can be used.

Occupation and use of cultivated land for setting up kilns, building tombs or building of houses, sand digging, quarrying, mining
and earth gathering on cultivated land without authorization shall be prohibited.

Occupation and use of basic farmland for the development of forestry and fruit industry and digging of ponds for fish breeding shall
be prohibited.

Article 37

All units and individuals shall be prohibited to let cultivated land lie idle or make it barren. The cultivated land occupied and
used for non-agricultural construction the formalities of examination and approval of which have been completed which has been left
unused within a year but may be cultivated and harvested should be recultivated by the collective or individuals that previously
cultivated the said plot of cultivated land, and cultivation may be organized by the land use unit; where construction has not been
started for over a year, idle fee should be paid in accordance with the provisions of the provinces, autonomous regions and municipalities
directly under the Central Government; where the land has not been used for two consecutive years, the people’s government at the
county level shall, subject to the approval of the original approval organ, withdraws the land use right of the land use unit without
compensation; the said plot of land previously collectively owned by peasants should be handed back to the original rural collective
economic organization for resumption of cultivation.

Idle land the land use right of which has been obtained in the form of transfer for real estate development within the range of an
urban planning zone shall be handled in pursuance of the relevant provisions of the ((Urban Real Estate Administration Law of the
People’s Republic of China)).

For a unit or an individual contracting the management of cultivated land that let the land uncultivated and lie barren, the original
contract issuing unit should terminate the contract and withdraw the cultivated land contracted.

Article 38

The state encourages units and individuals in the development of unexploited land in accordance with the overall planning for land
utilization and under the prerequisite of protection and improvement of the ecological environment, prevention of water and soil
erosion and land desertification; the land suitable to be developed into agricultural land should be developed into agricultural
land on a priority basis.

The state protects the legitimate rights and interests of developers in accordance with law.

Article 39

Reclamation of unexploited land must undergo scientific authentication and evaluation and it must be carried out within the reclaimable
areas delimited in the overall planning for land utilization upon approval in accordance with law. Reclamation of cultivated land
through destruction of forests and prairie shall be prohibited, reclaiming farmland from lakes and infringement on shoals of rivers
shall be prohibited.

The land reclaimed and land reclaimed from lakes with the destruction of the ecological environment shall, in accordance with the
overall planning for land utilization, be returned to forests, grazing and lakes in a planned way and step by step.

Article 40

Development of state-owned barren hills, barren land and barren shoals the right to use of which is undetermined for cultivation,
forestry, animal husbandry and fishery production may, subject to approval by people’s government at or above the county level, be
determined and given to development units or individuals for long-term use.

Article 41

The state encourages land arrangement. County, village(township) people’s governments should organize rural collective economic organizations
in integrated treatment of farmland, water, roads, woods and villages in accordance with the overall planning for land utilization
to improve the quality of cultivated land, increase the area of effective cultivated land and improve conditions for agricultural
production and the ecological environment.

Local people’s governments at all levels should take measures to transform the medium and low yield plots, treat idle and scattered
plots and abandoned plots.

Article 42

For destruction of land caused by damage due to digging, caving in and pressurized occupation, the land use unit and individual should,
in accordance with relevant state provisions, be responsible for the reclamation; where there are no conditions for reclamation or
reclamation does not conform to requirements, land reclamation fee should be paid to be used specifically for land reclamation. The
reclaimed land should be used for agriculture on a priority basis.

Chapter V Land for Construction

Article 43

Any unit or individual that needs to use land for construction must apply for the use of state-owned land in accordance with law;
however, use of land collectively owned by peasants by the respective collective economic organization approved in accordance with
law for the establishment of rural and township enterprises and construction of residences by villagers, or use of land collectively
owned by peasants approved in accordance with law for the construction of village(township)public facilities and non-profit undertakings
is excluded.

Application for the use of state-owned land in accordance with law referred to in the preceding paragraph includes the state-owned
land and the land that originally belonged to collective ownership by peasants and has been requisitioned by the state.

Article 44

For occupation and use of land for construction involving turning agricultural land into land for construction, formalities of examination
and approval for turning agricultural land into other uses should be completed.

Occupation and use of land involving turning agricultural land into land for construction for construction projects of roads, pipelines,
cables and big-size infrastructure approved by people’s governments of the provinces, autonomous regions and municipalities directly
under the Central Government and construction projects approved by the State Council shall be subject to the approval of the State
Council.

Turning agricultural land into land for construction for the implementation of the said planning within the scale of land for construction
for municipalities and villages and townships determined by the overall planning for land utilization shall be subject to the approval
of the organ that originally approved the overall planning for land utilization in batches in accordance with the annual land use
plan. Within the scope of agricultural land turning into other uses already approved, land for specific construction projects can
be approved by municipal and county people’s governments.

Occupation and use of land involving turning agricultural land into land for construction for construction projects other than those
prescribed in the Second Paragraph and Third Paragraph of this Article shall be subject to the approval of people’s governments of
the provinces, autonomous regions and municipalities directly under the Central Government.

Article 45

Requisition of the following land shall be subject to the approval of the State Council:

(1)

basic farmland;

(2)

cultivated land other than the basic farmland exceeding 35 hectares; and

(3)

other land exceeding 70 hectares.

Requisition of land other than those prescribed in the preceding paragraph shall be subject to the approval of people’s governments
of the provinces, autonomous regions and municipalities directly under the Central Government, and submitted to the State Council
for the record.

For the requisition of agricultural land, formalities of examination an

ORGANIC LAW OF THE VILLAGERS COMMITTEES OF THE PEOPLE’S REPUBLIC OF CHINA

Organic Law of the Villagers Committees of the People’s Republic of China

(Adopted at the 5th Meeting of the Standing Committee of the Ninth National People’s Congress on November 4, 1998
and promulgated by Order No. 9 of the President of the People’s Republic of China on November 4, 1998) 

Article 1  This Law is enacted in accordance with the Constitution with a view to ensuring self-government by the villagers
in the countryside, who will administer their own affairs according to law, developing democracy at the grassroots level in the countryside,
and promoting the building of a socialist countryside which is materially and ethically advanced. 

Article 2  The villagers committee is the primary mass organization of self-government, in which the villagers manage their
own affairs, educate themselves and serve their own needs and in which election is conducted, decision adopted, administration maintained
and supervision exercised by democratic means. 

The villagers committee shall manage the public affairs and public welfare undertakings of the village, mediate disputes among the
villagers, help maintain public order, and convey the villagers’ opinions and demands and make suggestions to the people’s government. 

Article 3  The primary organization of the Communist Party of China in the countryside shall carry out its work in accordance
with the Constitution of the Communist Party of China, playing its role as a leading nucleus; and, in accordance with the Constitution
and laws, support the villagers and ensure that they carry out self-government activities and exercise their democratic rights directly. 

Article 4  The people’s government of a township, a nationality township or a town shall guide, support and help the villagers
committees in their work, but may not interfere with the affairs that lawfully fall within the scope of the villagers self-government. 

The villagers committees, on their part, shall assist the said people’s government in its work. 

Article 5  The villagers committee shall support the villagers and assist them in their efforts to set up various forms of co-operative
and other economic undertakings in accordance with law, provide services and coordination for production in the village, and promote
the development of rural production and construction and the socialist market economy. 

The villagers committee shall respect the decision-making power of the collective economic organizations in conducting their economic
activities independently according to law, safeguard the dual operation system characterized by the combination of centralized operation
with decentralized operation on the basis of operation by households under a contract, and ensure the lawful property right and other
lawful rights and interests of the collective economic organizations, villagers, households operating under a contract, associated
households, and partnerships. 

The villagers committee shall, in accordance with the provisions of laws, administer the affairs concerning the land and other property
owned collectively by the peasants of the village and disseminate knowledge among the villagers about rational utilization of the
natural resources and protection and improvement of the ecological environment. 

Article 6  The villagers committee shall publicize the Constitution, laws, regulations and State policies among the villagers;
help them understand the importance of performing their obligation as proscribed by law and cherishing public property and encourage
them to do so; safeguard the villagers’ lawful rights and interests; develop culture and education, and disseminate scientific and
technological  knowledge among the villagers; promote unity and mutual assistance between villages; and carry out various forms
of activities for the building of advanced socialist ethics. 

Article 7  In a village where people from more than one ethnic group live, the villagers committee shall help the villagers
understand the importance of enhancing unity, mutual respect and mutual assistance among the ethnic groups and give them guidance
in this respect. 

Article 8  The villagers committee shall be established on the basis of the residential areas of the villagers and the size
of the population and on the principle of facilitating self-government by the masses. 

The establishment or dissolution of a villagers committee or a readjustment in the area governed by it shall be proposed by the people’s
government of a township, a nationality township or a town and submitted to a people’s government at the county level for approval
after it is discussed and agreed to by a villagers assembly. 

Article 9  A villagers committee shall be composed of three to seven members, including the chairman, the vice-chairman(vice-chairmen)
and the members. 

The members of a villagers committee shall include an appropriate number of women. In a village where people from more than one ethnic
group live, they shall include a member or members from the ethnic group or groups with a smaller population. 

Members of a villagers committee shall not be divorced from production but may be provided with appropriate subsidies, where necessary. 

Article 10  A villagers committee may, on the basis of the residential areas of the villagers, establish a number of villagers
groups, the leaders of which shall be elected at the meetings of the groups. 

Article 11  The chairman, vice-chairman (vice-chairmen) and members of a villagers committee shall be elected directly by the
villagers. No organization or individual may designate, appoint or replace any member of a villagers committee. 

The term of office for a villagers committee is three years; a new committee shall be elected at the expiration of the three years
without delay. Members of a villagers committee may continue to hold office when reelected. 

Article 12  Any villager who has reached the age of 18 shall have the right to elect and stand for election, regardless of his
ethnic status, race, sex, occupation, family background, religious belief, education, property status and length of residence, with
the exception of persons who have been deprived of political rights in accordance with law. 

The name list of the villagers who have the right to elect and stand for election shall be made public 20 days prior to the date
of election. 

Article 13  Election of a villagers committee shall be presided over by a villagers electoral committee. Members of the electoral
committee shall be elected by a villagers assembly or by all the villagers groups. 

Article 14  For election of a villagers committee, the villagers who have the right to elect in the village shall nominate candidates
directly. The number of candidates shall be greater than the number of persons to be elected. 

The election of a villagers committee shall be valid if more than half of the villagers who have the right to elect cast their votes;
a candidate shall be elected only if he wins more than half of the votes cast by the villagers. 

The election shall be by secret ballot and open vote-counting; the outcome of the election shall be announced on the spot. During
election, booths shall be installed for voters to write their ballots in private. 

Specific electoral measures shall be prescribed by the standing committees of the people’s congresses of provinces, autonomous regions
and municipalities directly under the Central Government. 

Article 15  If a person, by threatening, bribing, forging ballots or other illegitimate means, interferes with the villagers
in the exercise of their rights to elect and to stand for election, thus disrupting the election of a villagers committee, the villagers
shall have the right to report against him to the people’s congress, the people’s government of the township, nationality township
or town, or to the standing committee of the people’s congress and the people’s government at the county level or the competent department
under the latter, which shall be responsible for investigating the matter and handling it in accordance with law. If a person is
elected by threatening, bribing, forging ballots or other illegitimate means, his election shall be invalid. 

Article 16  A group of at least one-fifth of the villagers who have the right to elect in the village may propose the removal
from office of members of the villagers committee. In the proposal, the reasons for the removal shall be stated. The member of the
villagers committee proposed to be removed from office shall have the right to present a statement in his own defence. The villagers
committee shall convene a villagers assembly without delay, at which the proposal for the removal shall be voted. The removal from
office of a member of the villagers committee shall be adopted by a simple majority vote of the villagers who have the right to elect. 

Article 17  A villagers assembly shall be composed of villagers at or above the age of 18 in a village. 

The villagers assembly shall be convened with a simple majority participation of the villagers at or above the age of 18 or with
the participation of the representatives from at least two-thirds of the households in the village, and every decision shall be adopted
by a simple majority vote of the villagers present. When necessary, representatives of the enterprises, institutions and mass organizations
located in the village may be invited to attend the villagers assembly without the right to vote. 

Article 18  The villagers committee shall be responsible to the villagers assembly and report on its work to the latter. The
villagers assembly shall deliberate on the work report of the villagers committee every year and appraise the performance of its
members. 

The villagers assembly shall be convened by the villagers committee. When proposed by one-tenth of the villagers, the villagers assembly
shall be convened. 

Article 19  When the following matters that involve the interests of the villagers arise, the villagers committee shall refer
them to the villagers assembly for decision through discussion before dealing with them: 

(1) measures for pooling funds for the township, and the percentage of the funds raised by the village to be retained and used by
it; 

(2) the number of persons who enjoy subsidies for work delayed and the rates for such subsidies; 

(3) use of the profits gained by the collective economic organizations of the village; 

(4) proposals for raising funds for running schools, building roads and managing other public welfare undertakings in the village; 

(5) decision on projects to be launched by the collective economic organizations of the village and the contracts proposed for the
projects as well as contracts proposed for building public welfare undertakings in the village; 

(6) villagers’ proposals for operation under a contract; 

(7) proposals for the use of house sites; and 

(8) other matters that involve the interests of the villagers and on which the villagers assembly considers it necessary to make
decisions through discussion. 

Article 20  A villagers assembly may formulate and revise the villagers charter of self-government, rules and regulations for
the village and villagers pledges, and submit them to the people’s government of the township, nationality township or town for the
record. 

No villagers charter of self-government, rules and regulations for the village, villagers pledges or matters decided through discussion
by a villagers assembly or by representatives of  villagers may contravene the Constitution, laws, regulations, or State policies,
or contain such contents as infringing upon villagers’ rights of the person, their democratic rights or lawful property rights. 

Article 21  In a village with a larger population or with the inhabitants scattered here and there, villagers representatives
may be elected, and the villagers committee shall convene a meeting of the villagers representatives to decide on matters through
discussion with the authorization of the villagers assembly. One villagers representative shall be elected by every five to fifteen
households, or a certain number of villagers representatives shall be elected by all the villagers groups. 

Article 22  The villagers committee shall apply the system of open administration of village affairs. 

The villagers committee shall accept supervision by the villagers through publicizing the following matters without delay, of which
the matters involving financial affairs shall be publicized every six months at least: 

(1) matters decided on through discussion by the villagers assembly as provided for in Article 19 of this Law, and  implementation
of the decisions; 

(2) plans for implementing the State policy for family planning; 

(3) handing out of relief funds and goods; and 

(4) collection of charges for the supply of water and electricity, and other matters that involve the interests of the villagers
and that all the villagers are concerned about. 

The villagers committee shall guarantee the truthfulness of what is publicized and subject itself to inquiry by the villagers. 

Where a villagers committee fails to publicize the matters as is required to without delay or if the matters it publicizes are not
true to facts, the villagers shall have the right to report the matter to the people’s government of the township, nationality township
or town or the people’s government at the county level and the competent departments under it, which shall be responsible for investigation
and verification and order that the matters be publicized; where unlawful acts are verified through investigation, the members concerned
shall bear the responsibility according to law. 

Article 23  The villagers committee and its members shall observe the Constitution, laws, regulations and State policies, and
they shall be impartial in handling affairs, honest in performing their duties and warmhearted in serving the villagers. 

Article 24  In making decisions, a villagers committee shall apply the principle whereby the minority is subordinate to the
majority. 

In its work the villagers committee shall adhere to the mass line, give full play to democracy, carefully heed dissenting opinions,
and unremittingly exercise persuasion; it may not resort to coercion, commandism or retaliation. 

Article 25  A villagers committee shall, when necessary, establish sub-committees for people’s mediation, public security, public
health, etc. Members of the villagers committee may concurrently be members of the sub-committees. The villagers committee of a village
with a small population may dispense with the sub-committees; instead, members of the villagers committee shall have a division of
responsibilities with respect to people’s mediation, public security, public health, etc. 

Article 26  A villagers committee shall assist the relevant departments in giving ideological education and help to and exercising
supervision over the villagers who have been deprived of political rights in accordance with law. 

Article 27 Members of government departments, public organizations, units of the armed forces, and enterprises and institutions owned
by the whole people, who are located in the countryside, shall not join organizations of the villagers committees; members of collectively-owned
entities that are not run by the villages may choose not to join the organizations of the villagers committees. However, all of them
shall abide by the rules and regulations for the villages and the villagers pledges related to them. When the villagers committees,
villagers assemblies or villagers representatives of the villages, where these units are located, discuss and deal with problems
related to the units, they shall solve the problems through consultation with them. 

Article 28  The local people’s congresses at all levels and the standing committees of the local people’s congresses at or above
the county level shall see that this Law is implemented within their administrative regions and guarantee that the villagers exercise
their right of self-government in accordance with law. 

Article 29  The standing committees of the people’s congresses of provinces, autonomous regions and municipalities directly
under the Central Government may, in accordance with this Law and in light of the conditions in their own administrative regions,
formulate measures for the implementation of this Law. 

Article 30  This Law shall go into effect as of the date of promulgation. The Organic Law of the Villagers Committees of the
People’s Republic of China (for Trial Implementation) shall be annulled at the same time.

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



LAW ON LICENSED DOCTORS OF THE PEOPLE’S REPUBLIC OF CHINA

Law on Licensed Doctors of the People’s Republic of China

(Adopted at the 3rd Meeting of the Standing Committee of the Ninth National People’s Congress on June 26, 1998 and
promulgated by Order No. 5of the President of the People’s Republic of China on June 26, 1998) 

Contents 

Chapter I    General Provisions 

Chapter II   Examination and Registration 

Chapter III  Regulations Regarding the Practice of Medicine 

Chapter IV   Assessment and Training 

Chapter V    Legal Responsibility 

Chapter VI   Supplementary Provisions 

Chapter I 

General Provisions 

Article 1  This Law is enacted for the purpose of raising the level of the doctors in general, improving their professional
ethics and caliber, safeguarding their lawful rights and interests and protecting the people’s health. 

Article 2  This Law shall apply to medical workers who have, in accordance with the law, obtained the licenses of qualified
doctors or qualified assistant doctors and registered and are employed in medical treatment, disease-prevention or healthcare institutions. 

“The Doctors” referred to in this Law include licensed doctors and licensed assistant doctors . 

Article 3  Doctors shall observe good professional ethics and possess proficiency in medical work, display the spirit of humanitarianism
and perform the sacred duties of preventing and curing diseases, healing the wounded and rescuing the dying and protecting the people’s
health. 

Everybody in the community shall show respect for doctors. Every doctor shall fulfill his duties according to law and be protected
by law. 

Article 4  The administrative department for public health under the State Council shall be in charge of the affairs of doctors
throughout the country. 

The administrative departments for public health of the local people’s governments at or above the county level shall be in charge
of the affairs of doctors within their own administrative regions. 

Article 5  The State shall reward the doctors who have made contributions to medical treatment, disease-prevention or health
care . 

Article 6  technical post_titles for doctors in the field of medicine shall be assessed and conferred in accordance with the relevant
State regulations and so shall doctors be appointed to positions commensurate with their technical post_titles. 

Article 7  Doctors may form or join doctors’ associations. 

Chapter II 

Examination and Registration 

Article 8  The State applies the system of examination to determine the qualifications of doctors. The system consists of examinations
to determine the qualifications of licensed doctors and examinations to determine the qualifications of licensed assistant doctors. 

Measures for the uniform examinations determine the qualifications of doctors shall be formulated by the administrative department
for public health under the State Council. Such examinations shall be arranged by the administrative departments for public health
of the people’s governments at or above the provincial level. 

Article 9  Whoever meets one of the following requirements may take the examinations for the qualifications of a licensed doctor: 

(1) having, at least, graduated from the faculty of medicine of a university and, under the guidance of a licensed doctor, worked
on probation for at least one year in a medical treatment, disease-prevention or healthcare institution; or 

(2) after obtaining the license for an assistant doctor, having reached the level of a graduate from the faculty of medicine of a
university and worked for at least two years in a medical treatment, disease-prevention or healthcare institution; or having reached
the level of a graduate from the specialty of medicine of a polytechnic school and worked for at least five years in a medical treatment,
disease-prevention or healthcare institution. 

Article 10  Anyone who has reached the level of a graduate from the faculty of medicine of a university or a polytechnic school
and, under the guidance of a licensed doctor, worked on probation for at least one year in a medical treatment, disease-prevention
or healthcare institution, may take the examinations for the qualifications of an assistant doctor. 

Article 11  Anyone who in the way of apprenticeship, has studied traditional Chinese medicine for three years or, through years
of practice in this field, proves to have mastered specialized knowledge of this field, has passed the examinations conducted by
an organization specialized in traditional Chinese medicine or by a medical treatment, disease-prevention or healthcare institutions
that is recognized as such by the administrative department for public health of a local government at or above the county level,
and is recommended by such an organization or institution, may take the examinations for the qualifications of a licensed doctor
or a licensed assistant doctor. The contents of and measures for such examinations shall be specified by the administrative department
for public health under the State Council separately. 

Article 12  Anyone who has passed the examinations for the qualifications of a licensed doctor or a licensed assistant doctor
shall be certified as such. 

Article 13  The State applies the system of registration for licensed doctors. 

A certified doctor may apply for registration to the administrative department for public health of the local people’s government
at or above the county level. 

With the exception of the cases as provided for in Article 15 of this Law, the administrative department for public health that is
in charge of dealing with such application shall, within 30 days from the date of receiving the application, allow the applicant
to register and grant the applicant a doctor’s license which is exclusively printed by the administrative department for public health
under the State Council. 

The medical treatment, disease-prevention and healthcare institutions may go through the registration procedure for all the doctors
working for them. 

Article 14  Doctors, upon registration, may work for medical treatment, disease-prevention or healthcare institutions at the
places, for the types of job and within the scopes of business as registered and engage in medical treatment, disease-prevention
or healthcare in such institutions. 

No one may work as a doctor without a doctor’s license obtained through registration. 

Article 15  No one who is found in one of the following cases shall be registered: 

(1) having limited capacity for civil conduct; 

(2) having applied for registration before the expiration of two years beginning from the date when his punishment has been executed
to the date when application for registration is made; 

(3) having been imposed on administrative penalty with his doctor’s license revoked and less than two years beginning from the date
when the penalty decide on to the date when application for registration is made; or 

(4) Any other cases which, according to the regulations of the administrative department for public health under the State Council,
considered unsuited for conducting medical treatment, disease-prevention or healthcare. 

Where the administrative department for public health that deals with application for registration finds that an application does
not meet the requirements and thus refuses to allow the applicant to register, it shall, within 30 days from the date of receiving
the application, the applicant of the matter in writing and state the reasons why. If the applicant has any objections, he may, within
15 days from the date receiving the notification, apply for a review or bring a suit to a People’s Court according to law. 

Article 16  Where a registered doctor is found in any of the following cases, the medical treatment, disease-prevention or healthcare
institutions where he is working shall, within 30 days, report the matter to the administrative department for public health that
allowed him to register, and the said department shall revoke the registration and withdraw the doctor’s license: 

(1) being dead or being announced missing; 

(2) being imposed on a criminal penalty; 

(3) being imposed on administrative penalty which calls for the revocation of the doctor’s license; 

(4) having failed in the reexaminations taken at the expiration of suspension of the practice of medicine which is imposed according
to the provisions in Article 31 of this Law; 

(5  having stopped working as a doctor for at least two years; or 

(6) Any other case which, according to the regulations of the administrative department for public health under the State Council,
is considered unsuited for conducting medical treatment, disease-prevention or healthcare. 

Any party who has objections to the revocation of his registration may, within 15 days from the date receiving the notification of
the revocation, apply for a review or bring a suit to a People’s Court according to law. 

Article 17  Where a doctor wishes to change to the registered items such as the place, the type of job and the scope of business,
he shall, according to the provisions in Article 13 of this Law, go to the administrative department for public health that allowed
him to register to complete the formalities for the change. 

Article 18  When a doctor who has stopped doing medical work for at least two years or who is no longer in any of the cases
as prescribed in Article 15 of this Law applies to take up the job again, he shall take the examinations conducted by the institutions
specified in Article 31 of this Law and, after passing the examinations, reregister according to the provisions in Article 13 of
this Law. 

Article 19  Any licensed doctor who wishes to apply for self-employment need to have register and have worked for at least five
years in a medical treatment, disease-prevention or healthcare institution and to go through the formalities of examination and approval
according to relevant State regulations; he may not practise medicine on his own without such approval. 

The administrative departments for public health of the local people’s governments at or above the county level shall, according
to the regulations of the administrative department for public health under the State Council, constantly supervise and inspect the
doctors who practise medicine on their own and, when such doctors are found to be in any of the cases as prescribed in Article 16
of this Law, the said department shall immediately revoke their registration and withdraw their license. 

Article 20  The administrative departments for public health of the local people’s governments at or above the county level
shall publicize the name lists of the doctors who are allowed to register and those whose registration is revoked and submit the
name lists to the administrative departments for public health of the people’s governments at the provincial level, which shall report
to the administrative department for public health under the State Council for the record. 

Chapter III 

Regulations Regarding the Practice of Medicine 

Article 21  Doctors shall enjoy the following rights in their practice of medicine : 

(1) within the registered scope of business, to examine and diagnose diseases, conduct disease investigation, give medical treatment
and provide relevant medical document verification, and adopt medical treatment, disease-prevention and healthcare; 

(2) according to the standards set by the administrative department for public health under the State Council, to be provided with
the basic medical facilities needed to do their specific medical work; 

(3) to engage in medical research and academic exchange and join specialized academic organizations; 

(4) to receive professional training and follow-up education in medicine; 

(5) to be protected from offences against dignity and safety of the person in the course of their work ; 

(6) to receive their pay and other allowances and enjoy the welfare benefits according to State regulations; and 

(7) to give comments and suggestions about medical treatment, disease-prevention or healthcare in the institutions they work and
about the work of the administrative departments for public health and, in accordance with law, participate in the democratic management
of the said institution. 

Article 22  Doctors shall perform the following obligations in their practice of medicine: 

(1) abiding by laws and regulations and observing rules for technical operation; 

(2) devoting themselves to the profession, following professional ethics, fulfilling their duties as doctors and serving the patients
conscientiously; 

(3) caring for, loving and respecting the patients and preserving their privacy; 

(4) endeavoring to gain professional proficiency, update their knowledge and improve their technical standards; and 

(5) disseminating the knowledge of public health and healthcare and educating the patients in ways of keeping fit. 

Article 23  When taking medical, preventive or healthcare measures and when signing relevant medical document verification,
doctors shall conduct diagnosis and investigation themselves and fill out the medical files without delay as required by regulations;
no doctor may conceal, forge or destroy any medical files or the relevant data. 

No doctor may provide any medical document verification beyond the scope of his business or irrelevant to the type of his job. 

Article 24  Doctors shall take immediate measures to treat emergency patients; no doctor may refuse to give emergency treatment
to such patients. 

Article 25  Doctors shall administer such medicines and use such disinfectants and medical apparatus as are approved by the
State departments concerned. 

With the exception of legitimate diagnosis and treatment, any use of anaethetics, medical toxicant or psychiatric or radioactive
medicines is prohibited. 

Article 26  Doctors shall tell the patients or their relatives the truth about the patients’ condition while avoiding any bad
effect on the patients. 

Doctor who wishes to conduct any experimental clinical treatment shall obtain approval of the hospital authorities and consent of
the patient himself or his relatives. 

Article 27  No doctor may, by taking advantage of his position, demand or illegally take money or things of value from the patients
or seek any other illegitimate benefits. 

Article 28  In case of natural calamities, epidemics, sudden accidents resulting in heavy casualties or other emergencies that
seriously endanger people’s lives or health, doctors shall accept the assignments of the administrative departments for public health
of the people’s governments at or above the county level. 

Article 29  Where a doctor causes a medical accident or discovers an epidemic, he shall, without delay, report to the institution
where he works or to an administrative department for public health, as required by relevant regulations. 

Where a doctor discovers that a patient is involved in an incident of injury or dies unnaturally, he shall report to the department
concerned, as required by relevant regulations. 

Article 30  Licensed assistant doctors shall, under the direction of licensed doctors, do the types of job, as registered in
a medical treatment, disease-prevention or healthcare institutions. 

Licensed assistant doctors who work in the medical treatment, disease-prevention or healthcare institutions of townships, nationality
townships or towns may, in light of the specific medical conditions and needs, independently conduct ordinary practice of medicine. 

Chapter IV 

Assessment and Training 

Article 31  Institutions or organizations that are entrusted by administrative departments for public health of the people’s
government at or above the county level shall, in conformity with standards for the practice of doctors, assess the professional
levels, achievements and professional ethics of the doctors at regular intervals. 

The said institution or organization shall submit the results of the assessment to the administrative departments for public health
that are in charge of registration for the record. 

Any doctor who is considered unqualified, shall be ordered by the administrative department for public health of the people’s government
at or above the county level to suspend the practice of medicine for three months to six months and receive training and follow-up
medical education. At the expiration of the suspension, he shall be reassessed, and if he is considered qualified, he shall be permitted
to resume the practice; otherwise, his registration shall be revoked and the doctor’s license withdrawn by the said department. 

Article 32  The administrative department for public health of the people’s government at or above the county level shall be
responsible for guiding, inspecting and supervising the assessment of doctors. 

Article 33  Doctors who have one of the following achievements to their credit shall be commended or rewarded by the administrative
department for public health of the people’s government at or above the county level: 

(1) observing good professional ethics and having performed outstanding deeds in the practice of medicine; 

(2) having made major breakthroughs in and outstanding contributions to medical techniques; 

(3) being distinguished in healing the wounded, rescuing the dying, and giving emergency treatment to patients during natural calamities,
epidemics, sudden accidents resulting in heavy casualties or other emergencies which seriously endanger people’s lives or health; 

(4) having worked hard for a long time in grass-roots units in outlying or poverty-stricken areas or minority nationality regions
where conditions are tough; or 

(5) other achievements for which, according to the regulations of the administrative department for public health under the State
Council, they should be commended or rewarded. 

Article 34  The administrative departments for public health of the people’s governments at or above the county level shall
formulate training programs for doctors to train them in various forms and to provide them with the conditions for follow-up education
in medicine. 

The administrative departments for public health of the people’s governments at or above the county level shall take vigorous measures
to train the medical workers who are engaged in medical treatment, disease prevention or healthcare in rural areas or minority nationality
regions. 

Article 35  Medical treatment, disease-prevention or healthcare institutions shall, in accordance with regulations and plans,
ensure the doctors of their own institutions to receive training and follow-up education in medicine. 

Medical or public health institutions which are entrusted by the administrative departments for public health of the people’s governments
at or above the county level to assess doctors shall provide or create the conditions for doctors to receive training or follow-up
education in medicine. 

Chapter V 

Legal Responsibility 

Article 36  Where a person obtains the doctor’s license by illegitimate means, the administrative department for health that
granted the license shall revoke it; and the persons who are directly in charge and the other persons who are directly responsible
shall be given administrative sanctions according to law. 

Article 37  Any doctor who, in violation of the provisions in this Law, commits one of the following acts in the practice of
medicine, shall be given a disciplinary warning or ordered to suspend the practice for not less than six months but not more than
one year by the administrative department for public health of the people’s government at or above the county level; if the circumstances
are serious, his license for medical practice shall be revoked; if such act constitutes a crime, he shall be investigated for criminal
responsibility: 

(1) causing serious consequences by violating the administrative rules and regulations for public health or the rules for technical
operation; 

(2) causing serious consequences by neglecting his duties and delaying the rescue, diagnosis and treatment of an emergency case; 

(3) causing a medical accident by neglecting his duties; 

(4) signing any document verification concerning diagnosis, treatment, epidemiology, birth or death without personally conducting
the diagnosis, examination or investigation; 

(5) concealing, forging or destroying without authorization any medical files or the relevant data; 

(6) administering such medicines or using such disinfectants or medical apparatus as have not been approved; 

(7) using anaethetics, medical toxicants, or psychiatric or radioactive medicines in violation of regulations; 

(8) carrying out experimental clinical treatment without the consent of the patient or his relatives; 

(9) causing serious consequences by divulging the patients’ privacy; 

(10) by taking advantage of his position, demanding or illegally taking money or things of value from the patients or seeking other
illegitimate benefits. 

(11) failing to accept the assignment of the administrative department for public health under the circumstances of natural calamities,
epidemics, sudden accidents resulting in heavy casualties or other emergencies which seriously endanger people’s lives or health;
or 

(12) failing to report, as required by regulations, when causing a medical accident or discovering an epidemic, a patient who is
involved in an incident of injury or an unnatural death. 

Article 38  Where a doctor causes an accident in medical treatment, disease prevention or healthcare, the case shall be handled
in accordance with law or relevant State regulations. 

Article 39  Where persons set up medical institutions for the practice of medicine without permission or non-doctors practise
medicine, the administrative department for public health of the people’s government at or above the county level shall have such
acts banned and their unlawful gains and their medicines and apparatus confiscated, and shall also fine them not more than 100,000
yuan; it shall revoke the doctor’s license; if harm is done to patients, they shall bear the liability according to law; and if the
act constitutes a crime, the perpetrator shall be investigated for criminal responsibility according to law. 

Article 40  Where a person hinders a doctor from conducting practice according to law, humiliates, slanders, intimidates or
beats up a doctor, infringes on a doctor’s personal freedom or interferes with a doctor’s normal work of life, he shall be penalized
in accordance with the provisions prescribed in the Regulations on Administrative Penalties for Public Security; if the act constitutes
a crime, he shall be investigated for criminal responsibility in accordance with law. 

Article 41  Where a medical treatment, disease-prevention or healthcare institution fails to fulfill its duty of reporting the
cases according to the provisions prescribed in Article 16 of this Law, thus causing serious consequences, it shall be given a disciplinary
warning by the administrative department for public health of the people’s government at or above the county level; and the persons
who are in charge of the administrative affairs of the institution shall be given administrative sanctions by the said department
according to law. 

Article 42  Any member of the administrative department for public health or of a medical treatment, disease-prevention or healthcare
institution who, in violation of the relevant provisions of this law, practises fraud, neglects his duty, abuses his power or engages
in malpractice for personal gain which is not serious enough to constitute a crime, shall be given administrative sanctions according
to law; if the act constitutes a crime, he shall be investigated for criminal responsibility. 

Chapter VI 

Supplementary Provisions 

Article 43  Where a person, prior to the date of promulgation of this Law, obtained a technical post_title in accordance with relevant
State regulations, in the profession of medicine and a position in the profession, the matter shall be submitted by the institution
where he works to the administrative department for public health of the people’s government at or above the county level for confirmation
before the person is granted the doctor’s certificate. All the medical workers who are engaged in medical treatment, disease-prevention
or healthcare in a medical treatment, disease-prevention or healthcare institution shall, in conformity with the requirements prescribed
in this Law, together be examined and reported by the institution where they work to the administrative department for public health
of the people’s government at or above the county level for registration and the issue of doctor’s licenses. Specific measures shall
be formulated by the administrative department for public health together with the personnel administrative department under the
Sate Council. 

Article 44  This Law shall apply to doctors who work in family-planning service institutions. 

Article 45  Any rural doctor who provides villagers with disease-prevention, healthcare or ordinary medical service in a rural
medical and health institution and meets the relevant provisions prescribed in this Law may obtain the doctor’s certificate or the
assistant doctor’ s certificate in accordance with law. With regard to rural doctors have not obtained the doctor’s certificates
or the assistant doctor’ s certificates as prescribed in this Law, the State Council shall formulate administrative measures separately. 

Article 46  Measures for the application of this Law among doctors in the military shall be formulated by the State Council
and the Central Military Commission in accordance with the principles of this Law. 

Article 47  Persons from abroad who wish to take the examinations for the doctor’s certificates, get registered, engage in the
practice of medicine or impart clinical instruction or conduct clinical research in the territory of China shall apply in accordance
with relevant State regulations. 

Article 48  This Law shall go into effect as of May 1st, 1999.

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






CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION CONCERNING STRENGTHENING THE ADMINISTRATION OF THE EXAMINATION AND APPROVAL OF ENTERPRISES WITH FOREIGN INVESTMENT

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation Concerning Strengthening the Administration of the Examination
and Approval of Enterprises with Foreign Investment

WaiJingMaoZiZongHanZi [1998] No.260

May 7,1998

Commissions (departments, bureaus) of foreign trade and economic cooperation of all provinces, autonomous regions, municipalities
directly under the Central Government and municipalities separately listed on the State plan:

After the 15th CPC Congress and the 9th National People’s Congress, each new local government has been paying much attention to foreign
capital utilization and has adopted, in varying degrees, certain measures to improve the level of foreign capital utilization and
the investment climate, including simplifying the examination and approval procedures, shortening the time for examination and approval
and promoting “one-stop service”, etc., which all turn out to be quite effective. However, there are a rare number of local authorities
that act against state laws and regulations by canceling the examination and approval of enterprises with foreign investment. This
not only impairs the solemnity of the state laws on foreign capital utilization but also leaves the rights and interests of both
Chinese and foreign investors unprotected because unapproved contracts and statutes of enterprises with foreign investment are considered
invalid. Furthermore, a series of legal issues are left unsolved as a result of this, which confuses the state administration on
foreign capital utilization. To safeguard the solemnity of the state laws and the uniformity of law enforcement in China, the circular
for strengthening the administration of the examination and approval of enterprises with foreign investment by rule of law are hereby
given as follows:

1.

The Law on Chinese-foreign Equity Joint Ventures, the Law on Chinese-foreign Contractual Joint Ventures and the Law on Foreign-capital
Enterprises are laws passed by the National People’s Congress and no local authority at any level should have the right to set contradictory
provisions without authorization. Each should strictly abide by the state laws and regulations and conduct examination and approval
of the enterprises with foreign investment as well as their contracts and statutes (including amendments to these contracts and statutes)
in accordance with the existing examination and approval procedures.

2.

The CPC central committee and the State Council have recently circulated the Opinions for Further Opening-up and Enhancement of Foreign
Capital Utilization (ZhongFa [1998] No.6). Authorities at various levels should carefully study it and comprehend its spirit to ensure
the actual implementation of the state policy on foreign capital utilization.

3.

Faithfully implement each provision of the above-mentioned document ZhongFa [1998] No.6. Local governments at various levels should
improve their work efficiency and reduce layers of management to ensure openness and transparency. The measure of one open window
is encouraged to provide standardized and convenient services of high quality. The governments should also improve the modalities
and simplify the procedures of examination and approval of foreign-capital projects in combination of their further efforts in deepening
the reform of the investment capital system. On the other hand, all authorities at various levels should promote uniform leadership
and coordination on foreign capital utilization and faithfully implement the policies and guidelines of the CPC Central Committee
and the State Council on foreign capital utilization so as to keep in tune and ensure the rule of law. To ensure the uniformity and
faithful observance of the state laws and regulations, all local authorities should have no right to formulate regional and industrial
policies without proper authorization.



 
The Ministry of Foreign Trade and Economic Cooperation
1998-05-07

 






CIRCULAR OF THE STATE COUNCIL CONCERNING STRENGTHENING TAX ADMINISTRATION BY LAW AND REAFFIRMING TAXATION POWERS

Category  TAXATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-03-12 Effective Date  1998-03-12  


Circular of the State Council Concerning Strengthening Tax Administration by Law and Reaffirming Taxation Powers



(March 12, 1998)

    The reform of the tax systems in 1994, which, as a result, further
strengthened the legal systems of taxation, laid down stringent provisions on
tax reduction and exemption and defined taxation powers, has proven to be
positive for the state to exercise macro-control, implement industrial
policies, bring about fair competition between enterprises, promote
restructuring in enterprises and increase financial revenue. However, there
are still so many problems in performing tax policies by a number of
localities and departments. For instance, some make adaptive provisions of
state tax policies without authorization and grant tax reduction or exemption
beyond their powers; some wantonly allow taxpayers to defer or to be behind
with tax payment; some contract for tax collection; and some impose excessive
taxes. These problems are seriously disturbing the normal fiscal order and
impairing the consolidation and perfection of the fiscal system. In order to
safeguard the solemnity and dignity of laws and regulations of taxation
(hereinafter referred to as “tax laws”), reinforce tax administration by law
and enforce taxation powers, this Circular is hereby issued as follows:

    1. State tax laws and provisions regarding taxation powers should be
enforced strictly. The legislative powers in respect of central taxes, common
taxes and local taxes shall be centralized by the central authorities. Each
locality and each department should collect taxes by law, handle financial
affairs by law, and should not institute or interpreter tax policies beyond
their powers, neither they may exceed their terms of reference to grant tax
reduction and exemption, nor allow deferment of tax payment, nor exempt
somebody from taxes that have been overdue. Except for animal slaughtering
taxes, banquet taxes and animal husbandry taxes of which administrative powers
have been expressly transferred to the local authorities, the central
authorities shall centralize the administrative powers of all other kinds of
taxes. Local governments shall not make changes, adjustments or adaptive
provisions in respect of tax laws and tax policies beyond their terms of
reference prescribed expressly by tax laws. With regard to problems in tax
policies, all localities may put forward their views for adjustment and
improvement and report them to the State Council or the departments of the
State Council in charge of financial affairs. However, no locality may act on
their own authorities pending the decision of the State Council.

    2. Minority autonomous areas shall have their tax policies in conformity
with those of the whole country. Governments of minority autonomous areas
shall impose strict restrictions upon the scopes and amounts of tax reduction
or exemption when instituting their preferential tax policies as authorized by
state laws or regulations, and shall not grant their approval of tax reduction
or exemption beyond their terms of reference. Governments of the autonomous
regions directly under the Central Government shall submit preferential tax
policies instituted by them according to their terms of reference to the
departments of the State Council in charge of financial affairs for the
record. Those violating the provisions of state tax laws shall be put right by
the department in charge of financial affairs with authorization of the State
Council.

    3. Tax administration by law should be persisted in and importance be
attached to the administration of tax reduction and exemption. Tax reduction
and exemption must be executed according to the provisions of tax laws. Any
prescriptions regarding tax reduction or exemption beyond provisions of tax
laws or taxation powers shall be annulled without delay. Even the reduction or
exemption of local taxes shall be handled according to the terms of reference
granted by the central authorities. No body may institute his own rules and
act on his own authority. Once tax reduction or exemption without approval is
found, the taxpayer involved shall pay off taxes in full and the person
responsible and the person in charge shall be investigated for their
responsibilities.

    4. Further steps shall be taken to strengthen the administration of tax
collection. Tax authorities at various levels must exactly perform the
functions as prescribed in state tax laws and shall collect taxes according to
law in order to get taxes in full. Contracting for tax collection in various
forms shall be prohibited. Failure to pay taxes in full or tax exemption in
the form of deferring tax payment shall not be allowed. Exemptions granted to
taxpayers from their arrears of taxes on some pretexts shall be strictly
prohibited. Arrears of taxes that have been exempted shall be returned to the
treasure within a fixed time limit. Tax authorities at various levels must
strictly comply with the procedures and time limits provided for by tax laws
when examining and approving applications of taxpayers for deferment of tax
payment, and shall not wantonly extend the prescribed time limits for
deferment of tax payment. Imposition of excessive taxes shall be resolutely
banned and apportioning taxes equally according to the number of people or
land areas shall be prohibited.

    5. People’s governments and tax authorities at all levels shall
conscientiously implement the prescriptions of the State Council regarding the
system of tax distribution and hand over revenue in strict accordance with the
levels of treasures. If anyone hands over central revenue as local revenue to
local treasure by mixing up intentionally the levels of treasures, the
offender and the leader in charge shall, in addition to returning all the
revenue that has been seized, be investigated for their responsibility.

    6. Legal systems for taxation should be strengthened and the dignity of
state tax laws be safeguarded. Financial and taxation departments shall
establish and perfect their internal supervision and discipline systems and
take vigorous action to ensure the supervision and inspection of tax
policies. Auditing departments shall strengthen the auditing over the
implementation of tax policies and perfect necessary working systems. Problems
found in the inspection and auditing shall be resolved in time in order to
ensure the proper implementation of tax policies and stop up loopholes that
cause losses of revenue from taxes. Leading officials of people’s governments
at all levels and all departments shall firmly keep in mind the sense of
legality of taxation, proceed from the consideration of maintaining the
interest of the whole country and the normal fiscal order, further strengthen
the leadership over the fiscal work, lend support to financial departments in
organizing financial revenue and intensify the administration of tax
collection in order to create a favourable environment for establishing the
socialist market economic system.

    As from the date of the issuance of this Circular, each locality and each
department should make an overall inspection and rectification of the
implementation of tax policies within their own jurisdiction. Violations of
state tax laws and tax policies shall be corrected without delay. Each
locality and each department shall submit a report on the inspection and
rectification to the State Council before the end of September and, at the
same time, transfer a copy each to the Ministry of Finance and the State
Administration of Taxation.





PROVISIONS ON SEVERAL ISSUES CONCERNING REGISTRATION ADMINISTRATION OF COMPANIES

The State Administration for Industry and Commerce

Provisions on Several Issues Concerning Registration Administration of Companies

Decree [1998] No.83 of the State Administration for Industry and Commerce

January 7, 1998

Article 1

These Provisions are formulated in accordance with the Company Law of the people’s Republic of China (hereinafter referred to as the
Company Law) and the Regulations of the People’s Republic of China Governing the Registration of Companies (hereinafter referred
to as the Regulations Governing the Registration of Companies) for the purpose of standardizing the registration administration of
companies.

Article 2

The establishment of a company shall conform to the requirements and procedures as stipulated in the Company Law and the Regulations
Governing the Registration of Companies. Where the establishment does not conform to the requirements and procedures as stipulated
in the Company Law and the Regulations Governing the Registration of Companies, it cannot be registered as a limited liability company
or a joint stock limited company, nor may it be named as a “company”.

The registration of enterprises other than companies (hereinafter referred to as non-company enterprises) shall be administered in
accordance with the Regulations of the People’s Republic of China on Administration of the Registration of Enterprise Legal Persons
(hereinafter referred to as the Regulations on Administration of the Registration of Enterprise Legal Persons).

Article 3

Company registration authorities shall be the State Administration for Industry and Commerce and administrative departments for industry
and commerce of provinces (including autonomous regions and municipalities directly under the Central Government, the same below),
cities (including autonomous prefectures, the same below) and counties. The administrative departments for industry and commerce
of prefectures, leagues and districts under the jurisdiction of large or medium-sized cities, and the administrative departments
(sub-departments) for industry and commerce of bonded areas or development zones established with the approval of the people’s governments
at various levels shall have no authorities in company registration and shall not have a company registered.

A company that has its domicile located in a district under the jurisdiction of a municipality directly under the Central Government
shall, except that which shall be registered by the State Administration for Industry and Commerce, be registered by the administrative
departments for industry and commerce of the municipality directly under the Central Government.

The jurisdiction of company registration of the administrative departments for industry and commerce of cities and counties shall,
by referring to the principles of dividing the jurisdiction of company registration between the State Administration for Industry
and Commerce and the administrative departments for industry and commerce of provinces as stipulated in the Regulations Governing
the Registration of Companies, be formulated in details by the administrative departments for industry and commerce of provinces
based on the actual circumstances of these provinces.

Article 4

An administrative department for industry and commerce of a bonded area or a development zone, as well as a sub-department that is
reorganized from an administrative department for industry and commerce of a district under the jurisdiction of a city in accordance
with the Document No.[1994] 67 issued by the General Office of the State Council, may be authorized in writing by an administrative
department for industry and commerce of a city to verify and approve the registration of a limited liability company, and to verify
and issue a business license of enterprise legal person affixed with the stamp of the administrative department for industry and
commerce of the city.

Article 5

To establish a company, except as otherwise provided by the laws and administrative regulations of the State, the shareholders shall
directly make an application for registration to a company registration authority.

As stipulated in the Interim Regulations on Procedures for Formulation of Administrative Regulations promulgated by the State Council,
administrative regulation is a general term for various types of regulations on politics, economy, education, science and technology,
culture and foreign affairs, etc. that are formulated, on the basis of the Constitution and laws, by the State Council in accordance
with the provisions of these Regulations for the purpose of directing and administering administrative work of the State. The tide
for an administrative regulation may be regulations, provisions or measures.

Special examination and approval by the competent departments in charge of the relevant industries as stipulated in local regulations,
departmental rules, local rules and other normative documents shall not be taken as prerequisite requirements for company registration.

Article 6

Where laws or administrative regulations stipulate that the establishment of a company shall be examined and approved or where any
of the items of an company’s business scopes must, as stipulated by laws or administrative regulations, be examined and approved,
except those that shall be examined and approved by the State Council or the relevant departments of the State Council, the approval
shall be obtained according to law from the examination and approval organ of the place where the company is located. For a joint
stock limited company established with the approval of the people’s government of a province, its establishment approval document
thereof shall be affixed with the stamp of the people’s government of the province.

Article 7

To apply to establish a wholly State-owned company, approval documents of an authorized investment institution or a department authorized
by the State Council or the people’s government of a province shall be submitted to the company registration authority. An authorized
investment institution or a department authorized by the people’s government below the province level shall handle the matter in
accordance with the provisions of the State Council.

Article 8

To establish a company, the applicant shall apply for pre-approval of a company name to a registration authority that has the jurisdiction
over verification of name.

Where the industry shown in the pre-approved company name is not approved by the department concerned, the company name shall be re-verified
by the original name verification authority, or the applicant shall reapply for pre-approval of a company name.

Article 9

A “limited liability company” may be referred to as a “limited company” for short.

A company shall not be referred to as a “corporation” or a “group company”. Where a company meets the requirements for an enterprise
group, its core enterprise may be registered as a “group limited company”, “group limited liability company” or “group joint stock
limited company”.

Article 10

A statutory capital verification institution that has the right to produce a capital verification certificate shall be a public accounting
firm or an audit firm registered by an administrative department for industry and commerce. For a company into which State-owned
assets are contributed as shares, the property registration of State-owned assets shall not be a document that must be submitted
for company registration.

Article 11

Where the amount of capital contributions in the form of high and new technology achievements exceeds 20 per cent of the registered
capital of a limited company, they shall be confirmed by a State or provincial administrative department of science and technology,
and appraised and evaluated by a legally registered appraisal institution.

Where a shareholder makes its capital contributions in the form of land-use right, he shall obtain the approval from an approving
department concerned, and shall undertake the procedures for property transfer in accordance with the relevant provisions of the
State.

Article 12

Where the contents of the articles of association of a company violate the provisions of the laws or administrative regulations of
the State, the company registration authority shall require the applicant to make amends. Where the applicant refuses to make such
amends, the application for company registration shall be rejected.

Article 13

The enterprise type of companies shall be classified into limited liability company and joint stock limited company. Wholly State-owned
companies shall belong to limited liability company, and the enterprise type thereof shall be “limited liability company (wholly
State-owned) “. The enterprise type of listed joint stock limited company shall be “joint stock limited company (listed)”.

Article 14

The establishment of a subsidiary shall conform to the requirements and procedures as stipulated in the Company Law and the Regulations
Governing the Registration of Companies. Except that a State-authorized investment company may invest to establish a sole-investor
subsidiary (i.e. wholly State-owned subsidiary), no company may establish a sole-investor subsidiary.

A company shall not establish any non-company enterprise legal persons, and shall not make investments as shares to any non-company
enterprises, except for those companies restructured from non-company enterprises or those companies that merger non-company enterprises
and standardize them as branches or subsidiaries in accordance with the Company Law.

Article 15

For an operating unit established by a company but not qualified as an enterprise legal person, the word “branch” may not be include
in its name, but it shall undertake registration according to the procedures for branch registration.

The business scope of a branch shall not go beyond that of a company. Where a branch engages in any items that shall be subject to
approval as stipulated by laws or administrative regulations, the matter shall be reported to the relevant departments of the State
for approval.

Article 16

A company shall be issued with a Business License for Enterprise Legal Person and a Business License in 1994 version and a non-company
enterprise shall be issued with a Business License for Enterprise Legal Person and a Business License in 1989 version. The stamp
affixed to the business license shall be the official stamp of the registration authority, and shall not be replaced by the stamp
specially used for registration.

Article 17

Where a State organ legal person, an association legal person, or an institution legal person acts as a shareholder or sponsor of
a company, the matter shall be governed in accordance with the relevant provisions of the State.

An institution operated as an enterprise shall undertake enterprise legal person registration, and then it may make investments as
shares in the name of enterprise legal person.

A “share-holding meeting of staff members” or any other similar organization that has already undertaken registration for association
legal person may become a shareholder of a company.

Article 18

Where, in rural areas, a collective economic organization performs the functions of collective economic administration, the rural
collective economic organization shall be act as an investing entity; Where there in no a collective economic organization, the functions
of collective economic administration are performed by a villagers committee as a substitute, the villagers committee, as an investing
entity, may make investments to establish a company. Where a villagers committee intends to make investments to establish a company,
the villagers committee shall make a resolution on this matter.

Article 19

A urban residents committee with investing capability may invest to establish a company.

Article 20

Where an enterprise with foreign investment becomes a shareholder, it shall conform to the relevant laws, administrative regulations
and policies. The relevant specific provisions shall refer to the Several Provisions of the State Administration for Industry and
Commerce on Registration Administration of Enterprises with Foreign Investment Becoming Company Shareholders or Sponsors.

Where the Chinese investor obtains the whole share ownership of an enterprise as a result of a change of share ownership of an enterprise
with foreign investment, when applying for modification of registration, the enterprise shall submit the relevant documents to the
registration authority in accordance with the requirements of establishment registration for the type of enterprise to which it intends
to change. After the verification of the registration authority, the Business License for Enterprise Legal Persons of the People’s
Republic of China shall be handed in for cancellation, and a Business License for Enterprise Legal Persons shall be issued as a replacement.

Article 21

No public accounting firms, audit firms, law firms and assets assessment authorities shall, as investing entities, invest into other
industries to establish companies.

Article 22

Legal persons may jointly invest to establish companies and shall not be subject to the restrictions of existence or inexistence of
property rights.

Article 23

Where family members jointly invest to establish a limited liability company, they shall take their self-owned properties as registered
capital, and shall respectively bear their corresponding liabilities, and when undertaking registration, a written certification
or agreement on partition of properties shall be submitted.

Article 24

A legal representative of an enterprise legal person shall not become a shareholder of the limited liability company established with
the investment made by the enterprise in which he holds a post.

Article 25

Except as otherwise provided by laws or administrative regulations, the investment ratio of a shareholder of a limited liability company
shall, in principle, not be subject to any restrictions; however, where laws are obviously sidestepped with the result of establishing
a sole-investor company in a disguised form, the company registration authority shall not grant the registration.

Article 26

The director or manager of a company shall not concurrently serve as the director or manager of a company in the same industry that
has no investment relationship with the company in which he holds a post.

Article 27

A person other than a shareholder may be elected or engaged as the director or manager.

Article 28

A limited liability company with a small number of shareholders or in a small size shall not have a board of directors, which shall
be stipulated by the articles of association of the company.

Article 29

When a joint stock limited company is to be established, the “Financial Auditing Report on Preparing for the Establishment of a Company”
submitted to the company registration authority shall be the auditing report on the expenditures for the establishment of the company
submitted by the sponsor and adopted upon deliberation by the inaugural meeting of the company.

Article 30

When an announcement concerning the registration of establishment, modification or cancellation of a company is to be published, it
shall be clearly stated that the basis on which the company is registered is the Company Law and the Regulations Governing the Registration
of Companies.

Article 31

After the term of business of a company has expired, where the term needs to be extended or the business needs to be terminated, modification
of registration or cancellation of registration shall be undertaken. Where the term of business is exceeded but no modification of
registration or cancellation of registration is undertaken, the company shall be punished in accordance with Article 63 and Article
66 of the Regulations Governing the Registration of Companies respectively.

Article 32

Where a company establishes a branch without authorization, it shall be ordered to make corrections; where there any illegal earnings,
a fine of not more than three times the illegal earnings shall be imposed, but the maximum of the fine shall not exceed 30,000 yuan;
where there are no illegal earnings, a fine of not more than 10,000 yuan shall be imposed.

Article 33

Where a branch violates the regulations on administration of company registration, if there are any illegal earnings, a fine of not
more than three times the illegal earnings shall be imposed, but the maximum of the fine shall not exceed 30,000 yuan; where there
are no illegal earnings, a fine of not more than 10,000 yuan shall be imposed. Where the business license of a branch is forged,
altered, leased, lent or transferred, or the business license of a branch is not placed in an eye-catching position at its domicile,
it shall be punished in accordance with the provisions of Article 69 and Article 70 of the Regulations Governing the Registration
of Companies respectively.

Article 34

Where the registration is cancelled or the business license is revoked in accordance with the provisions of Articles 58 and 59 of
the Regulations Governing the Registration of Companies, the company shall have no qualifications for a legal person from the beginning.

Article 35

These Provisions shall enter into force as of February 1, 1998. The Opinions on Certain Issues Concerning the Implementation of the
Regulations of the People’s Republic of China Governing the Registration of Companies (Gongshangqizi [1994] No. 185) and the Reply
and Opinions on Several Specific Issues Concerning Administration of the Registration of Companies (Gongshangqizi [1995] No.303)
promulgated by the State Administration for Industry and Commerce shall be nullified simultaneously.



 
The State Administration for Industry and Commerce
1998-01-07

 






DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON THE PUNISHMENT OF CRIMES OF PURCHASE OF FOREIGN CURRENCIES BY DECEITFUL MEANS, FOREIGN EXCHANGE EVASION AND ILLEGAL BUYING AND SELLING OF FOREIGN CURRENCIES

Category  BANKNING Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1998-12-29 Effective Date  1998-12-29  


Decision of the Standing Committee of the National People’s Congress on the Punishment of Crimes of Purchase of Foreign Currencies
by Deceitful Means, Foreign Exchange Evasion and Illegal Buying and Selling of Foreign Currencies



(Adopted at the 6th Meeting of the Standing Committe of the 9th

National People’s Congress on December 29, 1998 and promulgated by
Order No. 14 of the President of the People’s Republic of China on
December 29, 1998)

    For purposes of punishing the criminal acts of purchase of foreign
currencies by deceitful means, foreign exchange evasion and illegal buying
and selling of foreign currencies and maintaining the order of state
foreign exchange control, the following supplementary revisions are
made in the Criminal Law:

    I.Whoever has any of the following circumstances, purchases foreign
currency of a relatively big amount by deceitful means shall be meted out
a set term of imprisonment of less than 5 years or labor under detention,
and imposed a fine of more than 5% less than 30% of the amount of
foreign currency purchased by deceitful means; where it constitutes
a great amount or has other serious circumstances, a set term of imprisonment of more than 5 years less than 10 years shall be imposed
and a fine of more than 5% less than 30% of the amount of foreign
currency purchased by deceitful means shall be imposed; where it
constitutes an extremely great amount or has other extremely serious
circumstances, a set term of imprisonment of more than 10 years or
life imprisonment shall be imposed, and a fine of more than 5% less
than 30% of the amount of foreign currency purchased by deceitful means
shall be concurrently imposed or properties confisticated:

    (1)whoever uses such vouchers and documents as forged or altered customs
declaration form(s) and import certificate(s) issued by the customs and
foreign exchange control department’s approval decument(s);

    (2)whoever makes repetitive uses of such vouchers and documents as
declaration form(s) and import certificate(s) issued by the customs and
foreign exchange control department’s approval document(s); and

    (3)whoever purchases foreign currency by deceitful means in other forms.

    Whoever forges or alters such vouchers and documents as declaration
form(s) and import certificate(s) issued by the customs and foreign
exchange control department’s approval document(s) and uses it(them) in
the purchase of foreign currency by deceitful means shall be imposed heavy
penalty pursuant to the provisions of the preceding paragraph.

    Whoever provides the RMB capital knowingly for the purchase of foreign
currency by deceitful means shall be dealt with as an accomplice.

    In the case of any unit that commits crimes of the three preceding
paragraphs, the unit shall be imposed a fine pursuant to the provisions
of the First Paragraph, and its person-in-charge directly responsible
and other persons directly responsible shall be sentenced to a set term of imprisonment of less than 5 years or labor under detention;
where it
constitutes a great amount and has other serious circumstances, a set term
of imprisonment of more than 5 years less than 10 years shall be imposed;
where it constitutes an extremely great amount and has other extremely
serious circumstances, a set term of imprisonment of more than 10 years or
life imprisonment shall be imposed.

    II.Whoever buys or sells such vouchers and documents as forged or
altered customs declaration forms, import certificates issued by the
customs and foreign exchange control department’s approval documents
shall be convicted of the crime and imposed a penalty pursuant to the
provisions of Article 280 of the Criminal Law.

    III.Article 190 of the Criminal Law shall be revised to read as:
Any company, enterprise or other unit that deposits foreign currency
overseas without authorization, or illegally transfers the in-country
foreign currency overseas that constitutes a great amount in violation
of state provisions, the unit shall be imposed a fine of more than 5%
less than 30% of the amount of foreign exchange evasion, and its person-
in-charge directly responsible and other persons directly responsible
shall be sentenced to a set term of imprisonment of less than 5 years or
labor under detention; where it constitutes a great amount and has other
serious circumstances, the unit shall be imposed a fine of more than 5%
less than 30% of the amount of foreign exchange evasion, and its person-
in-charge directly responsible and other persons directly responsible
shall be imposed a set term of imprisonment of more than 5 years.

    IV.Whoever illegally buys or sells foreign currency outside trading
sites designated by the state disrupting market order and having serious
circumstances shall be convicted of the crime and imposed a penalty pursuant
to the provisions of Article 225 of the Criminal Law.

   Any unit that commits the crime of the preceding paragraph shall be
imposed a penalty pursuant to the provisions of Article 231 of the Criminal
Law.

    V.Staff members of the customs, foreign exchange control departments
as well as financial institutions, companies, enterprises or other units
engaging in foreign trade business operations who in collaboration with
the persons of acts of foreign currency purchase by deceitful means or
foreign exchange evasion, provide them with the relevant vouchers for
foreign currency purchase or other facilities, or sell foreign currency
or effect payment of foreign currency while fully aware that the vouchers
are forged or altered, shall be convicted as accomplices and imposed
heavy penalties in pursuance of this Decision.

    VI.Staff members of the customs and foreign exchange control departments
who are seriously irresponsible causing purchase of foreign currency by
deceitful means or foreign exchange evasion in a great amount resulting
in great losses of state interests shall be convicted of the crime and
imposed penalties pursuant to the provisions of Article 397 of the Criminal
Law.

    VII.Staff members of financial institutions, companies and enterprises
engaging in foreign trade business operations who are seriously irresponsible
causing purchase of foreign currency by deceitful means or foreign exchange
evasion in a great amount resulting in great losses of state interests shall
be convicted of the crime and imposed penalties pursuant to the provisions
of Article 167 of the Criminal Law.

    VIII.The properties and fines recovered retrospectively and confisticated
according to law for committing crimes prescribed in this Decision shall all
be handed over to the state treasury.

    IX.This Decision shall enter into force as of the date of promulgation.





LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON MEDICAL PRACTITIONERS

The Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No.5

The Law of the People’s Republic of China on Medical Practitioners which has been adopted at the 3rd Meeting of the Standing Committee
of the Ninth National People’s Congress on June 26, 1998 is now promulgated, and shall enter into force as of May 1, 1999.

President of the People’s Republic of China: Jiang Zemin

June 26, 1999

Law of the People’s Republic of China on Medical Practitioners ContentsChapter I General Provisions

Chapter II Examination and Registration

Chapter III Practising Rules

Chapter IV Evaluation and Training

Chapter V Legal Liability

Chapter VI Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is enacted for the purpose of strengthening a contingent of doctors, improving occupational morals and professional skills
of doctors, safeguarding legitimate rights and interests of doctors, and protecting the people’s health.

Article 2

This Law is applicable to professional medical workers who are qualified as medical practitioners or assistant medical practitioners
according to law and registered to practise medicine in institutions of medical treatment, prevention or health care.

“Doctors” referred to in this Law include medical practitioners and assistant medical practitioners.

Article 3

Doctors should possess good occupational morals and professional medical knowledge, practise humanitarianism, and perform the sacred
duties of preventing and treating diseases, healing the wounded and rescuing the dying and protecting the people’s health.

The whole society should respect doctors. Doctors are protected by law in performing duties according to law.

Article 4

The administrative department of health under the State Council shall be responsible for the work for doctors throughout the country.

Administrative departments of health under local people’s governments at or above the county level shall be responsible for the work
for doctors within their respective administrative regions.

Article 5

The state rewards doctors who have made contributions to medical treatment, prevention of diseases and health care.

Article 6

Medical professional and technical post_titles of doctors and the appraisal and appointment of medical professional and technical posts
for doctors shall be handled according to relevant state provisions.

Article 7

Doctors may organize and join the doctors’ association according to law.

Chapter II Examination and Registration

Article 8

The state practises an examination system for the qualifications of doctors. The examination for the qualifications of doctors shall
be composed of the examination for the qualifications of medical practitioners and the examination for the qualifications of assistant
medical practitioners.

Measures for the unified examination for the qualifications of doctors shall be worked out by the administrative department of health
under the State Council. The examination for the qualifications of doctors shall be organized by administrative departments of health
under people’s governments at or above the provincial level.

Article 9

Anyone who satisfies any of the following conditions may participate in the examination for the qualifications of medical practitioners:

(1)

Anyone who has received at least regular medical college education in an institution of higher learning, and has, under the supervision
of a medical practitioner, served at least one year on probation in an institution of medical treatment, prevention or health care;
or

(2)

On the strength of the practising certificate of assistant medical practitioners, anyone who has received junior college medical training
in an institution of higher learning and has served at least two years in an institution of medical treatment, prevention or health
care; or has received medical training in a secondary training school and has served at least five years in an institution of medical
treatment, prevention or health care.

Article 10

Anyone who has received junior college medical training in an institution of higher learning or received medical training in a secondary
training school and has, under the supervision of a medical practitioner, served at least one year on probation in an institution
of medical treatment, prevention or health care, may participate in the examination for the qualifications of assistant medical practitioners.

Article 11

Anyone who has studied traditional medicine under a teacher for at least three years or has really acquired specialized knowledge
of medicine in his many years’ career, if he is recommended upon examination by an organization of traditional medicine profession
or an institution of medical treatment, prevention or health care which shall be designated by the administrative department of health
under the people’s government at or above the county level, may participate in the examination for the qualifications of medical
practitioners or the examination for the qualifications of assistant medical practitioners. The examination contents and form shall
be separately fixed by the administrative department of health under the State Council.

Article 12

Examinees who pass the examination for the qualifications of doctors shall be awarded the qualifications of medical practitioners
or assistant medical practitioners.

Article 13

The state practises a registration system for doctors to practise medicine.

Anyone who has been awarded the qualifications as a doctor may apply to the administrative department of health under the local people’s
government at or above the county level for registration.

Except under the circumstances prescribed in Article 15 of this Law, the administrative department of health accepting the application
should grant registration within 30 days from the date of receiving the application and issue the practising certificate of doctors
uniformly printed by the administrative department of health under the State Council.

Institutions of medical treatment, prevention or health care may go through registration procedures for all of their own doctors.

Article 14

Doctors may, upon registration, work in institutions of medical treatment, prevention or health care according to the registered place,
category and scope of business to engage in relevant services of medical treatment, prevention or health care.

Anyone who fails to be registered as a doctor and obtain the practising certificate shall not practise medicine.

Article 15

Under any of the following circumstances, registration shall not be granted:

(1)

where a person has not full capacity for civil conduct;

(2)

where, for a person having been sentenced to criminal punishment, it is not more than two years from the date of the end of the punishment
to the date of applying for registration;

(3)

where, for a person having been imposed administrative punishment by which his practising certificate of doctors was revoked, it is
not more than two years from the date of the decision on the punishment to the date of applying for registration; or

(4)

where other circumstances unsuitable for services of medical treatment, prevention or health care exist as prescribed by the administrative
department of health under the State Council.

If registration is not granted to the applicant who fails to satisfy the conditions, the administrative department of health accepting
the application should notify the applicant in writing within 30 days from the date of receiving the application and explain the
reasons for this decision. Any applicant who has an objection to this decision may apply for reconsideration or bring a lawsuit before
a people’s court according to law within 15 days from the date of receiving the notice.

Article 16

Under any of the following circumstances, the institution of medical treatment, prevention or health care to which a doctor obtaining
registration belongs should, within 30 days, report the circumstance to the administrative department of health granting the registration.
The administrative department of health should cancel the registration and withdraw the practising certificate of doctors.

(1)

where the doctor dies or is declared as missing;

(2)

where the doctor is sentenced to criminal punishment;

(3)

where the doctor is imposed administrative punishment by which his practising certificate of doctors is revoked;

(4)

where the doctor fails again in a new evaluation upon expiration of the period of time during which his practice is suspended according
to the provisions of Article 31 of this Law;

(5)

where the doctor has ceased his practice for at least two years; or

(6)

under other circumstances unsuitable for services of medical treatment, prevention and health care as prescribed by the administrative
department of health under the State Council.

The person who has an objection to the cancellation of his registration may apply for reconsideration or bring a lawsuit before a
people’s court within 15 days from the date of receiving the notice of the cancellation of registration.

Article 17

Any doctor who intends to change his registration of the place, category or scope of business should go through the procedure for
the change of registration at the administrative department of health granting the registration according to the provisions of Article
13 of this Law.

Article 18

Where anyone has ceased his practice of medicine for more than two years or the circumstance prescribed in Article 15 of this Law
has disappeared, if he intends to apply for resumption of his practice, he should succeed in the evaluation by the institution prescribed
in Article 31 of this Law and renew his registration according to the provisions of Article 13 of this Law.

Article 19

Any medical practitioner who intends to apply for opening his practice individually must, upon registration, practise medicine in
an institution of medical treatment, prevention or health care for at least five years and go through examination and approval procedures
according to relevant state provisions; without approval, no one may open his practice.

Administrative departments of health under local people’s governments at or above the county level should make supervisions and inspections
of individual doctors at regular intervals as required by the administrative department of health under the State Council and should
cancel registration in time and withdraw the practising certificates of doctors upon discovery of the circumstances prescribed in
Article 16 of this Law.

Article 20

Administrative departments of health under local people’s governments at or above the county level should announce to the public the
name lists of persons whose registration has been granted or cancelled. Administrative departments of health under provincial people’s
governments should collect these lists and report the combined lists to the administrative department of health under the State Council
for the record.

Chapter III Practising Rules

Article 21

A doctor enjoys the following rights in practising medicine:

(1)

within the registered scope of business, making medical diagnosis, diseases examination and medical prescription, providing the relevant
medical certifications and selecting reasonable plans for medical treatment, prevention or health care;

(2)

obtaining medical instruments and necessary conditions commensurate with his practice of medicine according to the standards set by
the administrative department of health under the State Council;

(3)

engaging in medical research and academic exchanges and joining professional learned societies;

(4)

participating in professional training and receiving continued medical education;

(5)

protecting the personal dignity and the personal security from encroachment in practising medicine;

(6)

earning wages, remuneration and subsidies and enjoying the welfare set by the state; and

(7)

putting forward opinions and proposals for the work of his own institution of medical treatment, prevention or health care and the
work of the administrative department of health and participating in the democratic management of his own institution according to
law.

Article 22

A doctor shall perform the following obligations in practising medicine:

(1)

observing laws and regulations and following the technical and operating rules;

(2)

cultivating the sense of responsibility in the work, following professional disciplines, performing a doctor’s duties and serving
patients conscientiously;

(3)

caring for, loving and respecting patients and guarding patients’ privacy;

(4)

endeavouring to gain professional proficiency, updating knowledge and increasing professional and technical competence; and

(5)

disseminating hygienic and health care knowledge and instructing patients in health care.

Article 23

Doctors adopting measures of medical treatment, prevention or health care or signing the relevant medical certificates must make diagnosis
and examination in person and work out medical documents in time according to provisions, and shall not conceal, forge or destroy
medical documents and relevant materials.

Doctors shall not work out medical documents irrelevant to their own scopes of business or not consistent with their own categories
of business.

Article 24

Doctors should adopt emergency measures to examine and treat patients who are suffering from acute diseases or dangerously ill and
shall not refuse to give emergency treatment.

Article 25

Doctors should use medicines, disinfectants and medical instruments the use of which has been approved by the relevant departments
of the state.

Narcotics, toxic drugs for medical use, psychotropic substances and radioactive drugs shall not be used except for proper diagnosis
and treatment.

Article 26

Doctors should truthfully explain the patients’ conditions to the patients and their family members provided that attention is paid
to avoid an adverse effect on the patients.

Doctors should obtain the approval of the hospitals and the consent of the patients themselves or their family members for experimental
clinic treatment.

Article 27

Doctors shall not take advantage of their positions to extort or illegally accept the patients’ property or seek other illegitimate
gains.

Article 28

In the event of a natural disaster, the spreading of an infectious disease, an unexpected heavy casualty or other emergencies seriously
threatening the people’s lives and health, doctors should accept assignments by order of the administrative department of health
under the people’s government at or above the county level.

Article 29

Doctors causing an accident in medical treatment or discovering the epidemic situation of infectious diseases should timely report
the case to their own institutions or to the administrative department of health according to relevant provisions.

Doctors discovering suspected involvement of their patients in a case of injury or discovering an unnatural death of their patients
should report the case to the competent authorities according to relevant provisions.

Article 30

Assistant medical practitioners should, under the supervision of medical practitioners, practise medicine according to the categories
of business in institutions of medical treatment, prevention or health care.

Assistant medical practitioners who work in institutions of medical treatment, prevention or health care of townships, nationality
townships or towns may, in the light of the conditions and needs of medical treatment, engage in general practice of medicine on
their own.

Chapter IV Evaluation and Training

Article 31

Institutions or organizations entrusted by the administrative department of health under the people’s government at or above the county
level should make evaluation of doctors at regular intervals in respect of their professional skills, achievements in work and occupational
morals in accordance with practising standards of doctors.

Evaluation institutions should report evaluation results of doctors to the administrative department of health granting registration
for the record.

The administrative department of health under the people’s government at or above the county level may order doctors who fail in evaluation
to suspend their practice of medicine for three to six months and to accept training and continued medical education. Up expiration
of the period of time for the suspending of practice, a new evaluation shall be made. Those who succeed in the new evaluation shall
be permitted to resume their practice of medicine. If anyone fails in the evaluation, the administrative department of health under
the people’s government at or above the county level shall cancel his registration and withdraw his practising certificate of doctors.

Article 32

The administrative department of health under the people’s government at or above the county level shall be responsible for guiding,
inspecting and supervising evaluation of doctors.

Article 33

Under any of the following circumstances, the administrative department of health under the people’s government at or above the county
level should commend or give awards to the doctors.

(1)

where a doctor shows noble character and has made outstanding achievements in his practice of medicine;

(2)

where a doctor has made an important breakout in medical professional skills and thereby made remarkable contributions;

(3)

where a doctor has behaved exceedingly well to heal the wounded and rescue the dying, make diagnosis and give emergency treatment
at the time of the occurrence of a natural disaster, the spreading of an infectious disease, the occurrence of an unexpected heavy
casualty or other emergencies seriously threatening the people’s lives and health;

(4)

where a doctor has worked hard for a long time in a grass-roots unit with poor conditions of a remote and impoverished region or a
minority nationality region; or

(5)

under other circumstances where commendation or awards should be given as prescribed by the administrative department of health under
the State Council.

Article 34

The administrative department of health under the people’s government at or above the county level should work out plans for training
of doctors, train doctors in various forms and provide conditions for doctors to receive continued medical education.

The administrative department of health under the people’s government at or above the county level should adopt effective measures
to train medical workers who are engaged in services of medical treatment, prevention or health care in rural areas and minority
nationality regions.

Article 35

Institutions of medical treatment, prevention or health care should guarantee training and continued medical education of their own
doctors according to provisions and planning.

Medical and health institutions entrusted by the administrative department of health under the people’s government at or above the
county level to undertake the evaluation of doctors should provide and create conditions for training and continued medical education
of doctors.

Chapter V Legal Liability

Article 36

If anyone obtains the practising certificate for doctors by unjustified means, the administrative department of health issuing the
practising certificate shall revoke the practising certificate. The person in charge directly responsible and other persons directly
responsible shall be imposed disciplinary sanctions according to law.

Article 37

If any doctor commits any of the following acts in practice of medicine in violation of the provisions of this Law, the administrative
department of health under the people’s government at or above the county level shall give him a warning or order him to suspend
his practice of medicine for not less than six months and not more than one year. If the circumstances are serious, the practising
certificate shall be revoked. If a crime has been constituted, criminal liability shall be investigated according to law.

(1)

violating administrative regulations and rules of health or technical and operating rules and thereby causing severe consequences;

(2)

due to negligence of duty, delaying diagnosis and emergency treatment of a patient who is suffering from an acute disease or dangerously
ill and thereby causing severe consequences;

(3)

causing an accident in medical treatment;

(4)

without diagnosis and examination personally, signing certifications of diagnosis, medical treatment and epidemiology or certifications
regarding birth or death;

(5)

concealing, forging or destroying without authorization medical documents and other relevant materials;

(6)

using medicines, disinfectants and medical instruments the use of which has not been approved;

(7)

in violation of provisions, using narcotics, toxic drugs for medical use, psychotropic substances and radioactive drugs;

(8)

without the consent of a patient or his family members, giving experimental clinic treatment to the patient;

(9)

divulging the privacy of a patient and thereby causing severe consequences;

(10)

taking advantage of the position to illegally accept patients’ property or seek other illegitimate gains;

(11)

refusing to accept assignments by the administrative department of health at the time of the occurrence of a natural disaster, the
spreading of an infectious disease, the occurrence of an unexpected heavy casualty or other emergencies seriously threatening the
people’s lives and health; or

(12)

failing to report to the competent authorities according to provisions when causing an accident in medical treatment or discovering
the epidemic situation of infectious diseases, suspected involvement of a patient in a case of injury or an unnatural death of a
patient.

Article 38

Doctors causing accidents in medical treatment, prevention or health care shall be handled according to law or relevant state provisions.

Article 39

Establishing a medical institution for practice of medicine without approval or opening practice of medicine by an unqualified doctor
shall be banned by the administrative department of health under the people’s government at or above the county level; the illegal
gains and medicines and instruments involved in the case shall be confiscated, a fine of not more than RMB 100,000 yuan imposed and,
if there is any doctor involved, the practising certificate of doctors revoked; if harm occurs to the patient, the person who causes
the harm shall bear the responsibility of compensation according to law; if a crime has been constituted, criminal liability shall
be investigated according to law.

Article 40

Anyone who obstructs a doctor from his legal practice of medicine, insults, slanders, threats or strikes a doctor, or encroaches on
the personal freedom of a doctor, or interferes in normal work and life of a doctor shall be penalized according to the provisions
of the Regulations on Administrative Penalties for Public Security; if a crime has been constituted, criminal liability shall be
investigated according to law.

Article 41

If any institution of medical treatment, prevention or health care fails to perform its duty of reporting according to the provisions
of Article 16 of this Law and thereby causes severe consequences, the administrative department of health under the people’s government
at or above the county level shall give it a warning and impose disciplinary sanctions upon the person in charge of this institution
according to law.

Article 42

Personnel of the administrative department of health or of any institution of medical treatment, prevention or health care who, in
violation of relevant provisions of this Law, practise fraud, neglect duties, abuse powers or engage in malpractice for their personal
gains, if the act has not constituted a crime, shall be imposed disciplinary sanctions according to law; if the act has constituted
a crime, the offender shall be investigated for criminal liability according to law.

Chapter VI Supplementary Provisions

Article 43

With respect to those who obtained technical post_titles and technical posts in medicine according to relevant state provisions before
the date of promulgation of this Law, the institutions to which they belong shall report the case to the administrative department
of health under the people’s government at or above the county level for ratification and then the qualifications as doctors shall
be granted respectively to them. If they are medical workers engaging in services of medical treatment, prevention or health care
in institutions of medical treatment, prevention or health care, the institutions to which they belong shall report the case as a
whole upon rectification to the administrative department of health under the people’s government at or above the county level and
registration shall be granted and the practising certificates of doctors shall be issued to them in line with the conditions as prescribed
in this Law . Detailed measures shall be worked out by the administrative department of health under the State Council in conjunction
with the administrative department of personnel under the State Council.

Article 44

This Law is applicable to doctors in technical service centres for birth control.

Article 45

Village doctors who provide for villagers services of prevention, health care or general medical treatment in medical and health institutions
of rural areas may, if they are in conformity with relevant provisions of this Law, be granted the qualifications of medical practitioners
or assistant medical practitioners according to law. Measures for the administration of village doctors who have not yet qualified
as medical practitioners or assistant medical practitioners as required by this Law shall be formulated separately by the State Council.

Article 46

Measures for the implementation of this Law by doctors in the Army shall be formulated by the State Council and the Central Military
Commission according to the principles of this Law.

Article 47

Applications of persons from overseas for participating in examinations for doctors, registration as doctors, practising medicine,
or engaging in activities of clinic teaching by demonstration, clinic research within the territory of China shall be handled according
to relevant state provisions.

Article 48

This Law enter into force as of May 1, 1999.



 
The Standing Committee of the National People’s Congress
1998-06-26

 






CIRCULAR OF THE PEOPLE’S BANK OF CHINA AND THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON RELEVANT ISSUES GOVERNING THE PROHIBITION OF PURCHASE OF FOREIGN EXCHANGE FOR ADVANCE REDEMPTION OF LOAN

The People’s Bank of China, the State Administration of Foreign Exchange

Circular of the People’s Bank of China and the State Administration of Foreign Exchange on Relevant Issues Governing the Prohibition
of Purchase of Foreign Exchange for Advance Redemption of Loan

YinChuan [1998] No.50

August 20, 1998

Branches the People’s Bank of China in all provinces, autonomous regions, and municipalities directly under the Central Government,
and in Shenzhen Economic Zone; Branches of the State Administration of Foreign Exchange in all provinces, autonomous regions, and
municipalities directly under the Central Government, and in Shenzhen Economic Zone; Industrial and Commercial Bank of China,Agricultural
Bank of China,China Construction Bank,China investment Bank, Bank of Communication,CITIC Industrial Bank,China Everbright Bank,China
Huaxia Bank,China Minsheng Banking Corp., Guangdong Development Bank, Shenzhen Development Bank,China Merchants Bank, Fujian Xinye
Bank, Shanghai Pudong Development Bank:

Because the issue that foreign exchange are purchased for advance redemption of loan is more and more serious, we hereby reiterate
the relevant policies concerning the foreign exchange control as follows and demand you to implement them according the requirements
hereof:

I

SAFE shall strengthen their control over the registration of foreign debts and the repayment of loan and interests.

1.

In handling the registration of foreign debts for the debtor, State Administration of Foreign exchange and its branches (hereafter
referred to as “SAFE”) shall earnestly and strictly examine and check the borrowing agreement presented by debtor. In the event that
the maturity of borrowing is less than half a year, it is demanded that the written opinion letter concerning the authenticity and
the borrowing of the usage of borrowed fund confirmed by the accounting firm shall be submitted by debtor.

In handling the registration of foreign debts for enterprises with foreign investment, SAFE shall require them to submit the investment
contract, the capital verification report written by accounting firm and the legal letter concerning the borrowing contract written
by law firm; shall require their registered capital to be fully provided according to the stipulations of the contract; shall ensure
that the accumulated amount of the long-and-medium term foreign debts borrowed externally shall not exceed the balance between the
total investment and the registered capital approved by the governmental agencies concerned; shall ensure that the interest rate
of the externally borrowed fund shall not be higher in principle than the level of interest rate of the same kind borrowing in the
international financial market. If the enterprises don’t meet the above-mentioned requirements, the SAFE can refuse to register the
foreign debts for them.

2.

In case that the debtor hasn’t make the drawing in compliance with the stipulations of the contract after the registration of foreign
debts, the Registration Certificate of Foreign debts issued by SAFE will automatically become invalid after 3 months since the issuing
day.

3.

In reapplying for the registration certificate of foreign debts by debtor, SAFE shall first punish them according to relevant laws
and regulations concerning the foreign exchange control because they haven’t gone through the registration of foreign debts in compliance
with relevant regulations and make the foreign debts registered, at the same time shall require debtor to provide the capital verification
report concerning the borrowed fund written by the accounting firm and the legal written letter of the borrowing contract written
by the law firm.

4.

SAFE shall exercise strict control over the advance redemption of foreign debts, that of entrusting loan(s) in foreign exchange and
that of proprietary loan in foreign exchange. In the event that there is no clause of advance redemption of foreign debts in the
borrowing contract, the advance the payments is not allowed; if there is the clause of advance repayment, it can be repaid with their
own foreign exchange only after the examination and approval by SAFE.

It is prohibited to purchase foreign exchange with Renminbi for the advance redemption of foreign debts, entrusting loan(s) in foreign
exchange and proprietary loan in foreign exchange.

5.

When debtor files application with SAFE for repayment of the loan and interest, they shall be required to present the notice of entry
into account from the bank of deposit concerned where the special loan account is opened. Only after the confirmation of the provision
of debt funds can the SAFE issue the “approval document concerning the repayment of loan and interest”. In case of purchase of foreign
exchange with Renminbi for repayment of foreign debts, that of entrusting loan(s) in foreign exchange and that of proprietary loan
in foreign exchange, debtor shall present such documents as the reconciliation sheet from the bank of deposit of all the foreign
exchange accounts and the Registration certificate of enterprises with foreign investment etc; if they have foreign exchange themselves,
SAFE shall demand them to make the redemption with their own foreign exchange.

6.

SAFE shall strengthen their control over the repayment of foreign exchange loan extended by domestic Chinese-capital financial institutions.
In case that the repaid amount with purchased foreign exchange exceeds US $ 1,000,000 (inclusive of US $ 1,000,000), follow-up investigation
must be carried out. For the violation of the relevant provisions by purchasing foreign exchange to make advance redemption of loan,
they shall be severely handled in compliance with relevant provisions of the Regulations on the Foreign exchange Control of People’s
Republic of China.

7.

The branches of State Administration of Foreign exchange shall make an investigation into the registration of foreign debts and their
repayment in 1998 and shall report to their next higher agency in charge immediately in case of major circumstances.

II

The banks shall strictly control the usage of the Renminbi loan to prevent clients from purchasing foreign exchange to repay loans
in advance.

1.

The Renminbi loan extended by the banks to domestic entities shall be confined to the production and can’t be used to purchase foreign
exchange to repay loan.

2.

The banks are not allowed to extend Renminbi loan to domestic institutions with foreign financial institutions or foreign entities
as the loan guarantor.

3.

In compliance with relevant laws, regulations and this Circular, every the bank shall make a self-check into the repayment of foreign
debts, that of entrusting loan(s) in foreign exchange and that of proprietary loan in foreign exchange handled prior to July 31 1998
and submit the self-check report to State Administration of Foreign exchange before September 20 1998.

This Circular shall come into effect as of the issuing day. Branches of the People’s Bank of China and the State Administration of
Foreign Exchange should transmit the Circular to the branches and sub-branches, the local Chinese-capital banks and foreign-capital
banks and the relevant units after receiving it. Each designated Chinese-capital banks of foreign exchange should transmit this Circular
to the branches and sub-branches right now. If some problems happen during the process of implementation, please report to the State
Administration of Foreign Exchange in time.



 
The People’s Bank of China, the State Administration of Foreign Exchange
1998-08-20

 






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CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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