2004

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON ADDITION TO NATIONAL LAWS LISTED IN APPENDIX III TO THE HONGKONG SPECIAL ADMINISTRATIVE REGION BASIC LAW

Category  SPECIAL ADMINISTRATIVE REGION Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1998-11-04 Effective Date  1998-11-04  


Decision of the Standing Committee of the National People’s Congress on Addition to National Laws Listed in Appendix III to the Basic
Law of the HongKong Special Administrative Region of the People’s Republic of China

(Adopted at 5th Meeting of the Standing Committee of the 9th National

People’s Congress on November 4, 1998)

    The 5th Meeting of the Standing Committee of the 9th National People’s
Congress hereby decides:The national law enpost_titled Law of the People’s
Republic of China on the Exclusive Economic Zone and the Continental Shelf
shall be added to Appendix III to the Basic Law of the Hongkong Special
Administrative Region of the People’s Republic of China.






HIGHER EDUCATION LAW OF THE PEOPLE’S REPUBLIC OF CHINA






The Standing Committee of the National People’s Congress

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

No.7

The Higher Education Law of the People’s Republic of China which has been adopted at the 4th Meeting of the Standing Committee of
the 9th National People’s Congress on August 29, 1998 is promulgated hereby, and shall enter into force as of January 1, 1999.

President of the People’s Republic of China Jiang Zemin

August 29, 1998

Higher Education Law of the People’s Republic of China ContentsChapter I General Provisions

Chapter II Basic System of Higher Education

Chapter III Establishment of Institutions of Higher Learning

Chapter IV Organization and Activities of Institutions of Higher Learning

Chapter V Teachers and Other Educational Workers of Institutions of Higher Learning

Chapter VI Students of Institutions of Higher Learning

Chapter VII Guarantee for Input and Conditions of Higher Education

Chapter VIII Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is enacted in accordance with the Constitution and the Education Law for the purposes of developing the cause of higher education,
implementary the strategy of reinvigorating the country through science and education and promoting the building of socialist material
civilization and spiritual civilization.

Article 2

This Law shall be applicable to engagement in activities of higher education within the territory of the People’s Republic of China.

Higher education referred to in this Law means education imparted on the basis of completion of senior secondary school education.

Article 3

The state adheres to the development of the cause of socialist higher education with Marxism-Leninism, Mao Zedong Thought and Deng
Xiaoping’s Theory as guidance following the basic principles defined by the Constitution.

Article 4

Higher education must implement the educational policy of the state, serve socialist modernization, integrate itself with production
and labor to train those educated to be builders and successors of the socialist cause with all-round development of morality, intelligence
and physique.

Article 5

The task of higher education is to train senior specialized talents with innovative spirit and practical capability, develop science,
technology and culture and promote socialist modernization.

Article 6

The state formulates higher education development planning, establishes institutions of higher learning and adopts various forms to
actively develop the cause of higher education in accordance with the requirements of economic construction and social development.

The state encourages such social forces as enterprises, institutions, societies and other social organizations and citizens in the
establishment of institutions of higher learning, participation in and rendering support for the reform and development of the cause
of higher education in accordance with law.

Article 7

The state presses ahead the reform of the higher education system and the reform of higher education teaching, optimizes the structure
of and resources allocation for higher education, improve the quality and performance of higher education in the light of the actual
conditions of different types and different tiers of institutions of higher learning and in accordance with the requirements of socialist
modernization and development of the socialist market economy.

Article 8

The state assists and supports minority nationality regions in the development of the cause of higher education and training of senior
specialized talents for minority nationalities in the light of the characteristics and requirements of minority nationalities.

Article 9

Citizens have the right to higher education according to law.

The state adopts measures to assist students of minority nationalities and students with financial difficulties to receive higher
education.

Institutions of higher learning must admit disabled students who meet the admission standards set by the state and must not refuse
to admit them for their disabilities.

Article 10

The state safeguards the freedom of scientific research, literary and artistic creations and other cultural activities in institutions
of higher learning according to law.

Scientific research, literary and artistic creations and other cultural activities in institutions of higher learning should abide
by law.

Article 11

Institutions of higher learning should be geared to the needs of society, run independently and practise democratic management in
accordance with law.

Article 12

The state encourages cooperation among institutions of higher learning, between institutions of higher learning and scientific research
institutes as well as enterprises and institutions to be mutually supplementary with each’s own advantages and improve the performance
in the employment of educational resources.

The state encourages and supports international exchanges and cooperation for the cause of higher education.

Article 13

The State Council uniformly leads and administers the cause of higher education nationwide.

People’s governments of the provinces, autonomous regions and municipalities directly under the Central Government coordinate with
unified planning the cause of higher education within their respective administrative areas, administer the training of talents mainly
for the localities and institutions of higher learning the administration of which have been authorized by the State Council.

Article 14

The department of education administration under the State Council shall take charge of the work of higher education nationwide, administer
the institutions of higher learning that mainly train talents for the whole country determined by the State Council. Other departments
concerned under the State Council shall be responsible for the related work of higher education within the scope of responsibilities
prescribed by the State Council.

Chapter II Basic System of Higher Education

Article 15

Higher education consists of curricula education and non-curricula education.

Higher education adopts the educational forms of full-time system and non-full-time system.

The state supports the adoption of broadcast, television, correspondence and other modes of distance education to impart higher education.

Article 16

Higher curricula education is divided into specialty education, undergraduate education and post graduate education.

Higher curricula education should meet the following standards for school work:

(1)

specialty education should enable students to master the basic theory and basic knowledge essential for the respective specialty and
acquire the basic skills and initial capability for the practical work of the respective specialty;

(2)

undergraduate education should enable students to systematically master the basic theory and basic knowledge necessary for the respective
discipline and specialty, master the basic skills, techniques and related know how necessary for the respective specialty and acquire
initial capability for the practical work and research work of the respective specialty; and

(3)

master’s post graduate education should enable students to master firm basic theory of the respective discipline, systematic specialty
knowledge, master corresponding skills, techniques and related know how, and acquire capabilities for the practical work and scientific
research work of the respective specialty. Doctoral post graduate education should enable students to master firm and broad basic
theory, systematic and in-depth specialty knowledge and corresponding skills and techniques, and acquire capabilities for independent
creative scientific research work and practical work of the respective discipline.

Article 17

The basic length of schooling for specialty education shall be two to three years, the basic length of schooling for undergraduate
education shall be four to five years, the basic length of schooling for master’s post graduate education shall be two to three years
and the basic length of schooling for doctoral post graduate education shall be three to four years. The length of schooling for
non-full-time higher curricula education should be adequately extended. Institutions of higher learning may adjust the length of
schooling of the respective schools in the light of actual requirements subject to the approval of the competent department of education
administration.

Article 18

Higher education shall be imparted by institutions of higher learning and other institutions of higher education.

Universities and independently established colleges(schools) mainly impart undergraduate and post graduate education. Higher specialty
institutions impart specialty education. Scientific research institutes may, subject to the approval of the department of education
administration under the State Council, undertake the task of post graduate education.

Other institutions of higher education impart non-curricula higher education.

Article 19

Graduates of senior secondary school education or those with equivalent educational level shall, upon passing the examination, be
admitted by institutions of higher learning imparting corresponding curricula education, and obtain the qualification for admission
as specialty students or undergraduate students.

Graduates of undergraduate course or those with equivalent educational level shall, upon passing the examination, be admitted by institutions
of higher learning imparting corresponding curricula education or scientific research institutes approved to undertake the task of
post graduate education and obtain the qualification for admission as master’s post graduate students.

Graduates of master’s post graduate course or those with equivalent educational level shall, upon passing the examination, be admitted
by institutions of higher learning imparting corresponding curricula education or scientific research institutes approved to undertake
the task of post graduate education and obtain the qualification for admission as doctoral post graduate students.

It shall be permissible for university graduates of specific disciplines and specialties to directly obtain the qualification for
admission as doctoral post graduate students. Specific measures shall be worked out by the department of education administration
under the State Council.

Article 20

Students receiving higher curricula education shall be issued corresponding certificates of educational background or other certificates
of studies by the institutions of higher learning or scientific research institutes approved to undertake the task of post graduate
education they have been in on the basis of the length of schooling and achievements in studies in accordance with the relevant provisions
of the state.

Students receiving non-curricula higher education shall be issued corresponding certificates of completion of studies by the institutions
of higher learning or other institutions of higher education. Certificates of completion of studies should carry length of schooling
and contents of studies.

Article 21

The state practises self-taught higher education examination system. Students having passed the examination shall be issued corresponding
certificates of educational background or other certificates of studies.

Article 22

The state practises the academic degree system. The degrees are divided into the bachelor’s degree, the master’s degree and the doctor’s
degree.

Citizens whose educational level has reached the standards for degrees set by the state through receiving higher education or self-study
may apply to degree-awarding units for corresponding degrees.

Article 23

Institutions of higher learning and other institutions of higher education should, in accordance with the requirements of society
and their own conditions for running education, undertake the work of imparting continuing education.

Chapter III Establishment of Institutions of Higher Learning

Article 24

Establishment of an institution of higher learning should conform to the state higher education development planning, accord with
state interests and public interest of society and must not take profitmaking as the object.

Article 25

The basic conditions prescribed by the Education Law should be met for the establishment of an institution of higher learning.

A university or an independently established college(school) should as well have strong teaching and scientific research staff, higher
teaching and scientific research level and corresponding scale and be in a position to impart undergraduate and above-undergraduate
education. A university must also have more than three departments of disciplines prescribed by the state as major disciplines. Specific
standards for the establishment of institutions of higher learning shall be formulated by the State Council.

Specific standards for the establishment of other institutions of higher education shall be formulated by the departments concerned
authorized by the State Council or people’s governments of the provinces, autonomous regions and municipalities directly under the
Central Government in accordance with the principles prescribed by the State Council.

Article 26

Corresponding names should be used for the establishment of institutions of higher learning in accordance with their respective tiers,
categories, departments of disciplines, scale, teaching and scientific research levels.

Article 27

Whoever applies for the establishment of an institution of higher learning should present the following materials to the organ of
examination and approval:

(1)

a report on the application for the establishment;

(2)

materials on feasibility authentication;

(3)

articles of association; and

(4)

other materials the presentation of which is required by the organ of examination and approval pursuant to the provisions of this
Law.

Article 28

Articles of association of an institution of higher learning should specify the following particulars:

(1)

name and address of the institution;

(2)

aims of establishment of the institution;

(3)

scale of the institution;

(4)

establishment of departments of disciplines;

(5)

mode of education;

(6)

internal administrative system;

(7)

sources of funds, properties and financial rules;

(8)

rights and obligations between the sponsor(s) and the institution;

(9)

procedures for the revision of articles of association; and

(10)

other matters that must be provided for by articles of association.

Article 29

Establishment of institutions of higher learning shall be subject to the examination and approval of the department of education administration
under the State Council, among them establishment of institutions of higher learning imparting specialty education may be subject
to the examination and approval of the people’s governments of the provinces, autonomous regions and municipalities directly under
the Central Government upon authorization by the State Council; establishment of other institutions of higher education shall be
subject to the examination and approval of the departments concerned authorized by the State Council or people’s governments of the
provinces, autonomous regions and municipalities directly under the Central Government. The department of education administration
under the State Council has the power to nullify the institutions of higher learning and other institutions of higher education the
establishment of which have been examined and approved not conforming to the prescribed conditions.

Evaluation and reviewing institution consisting of specialists should be employed to conduct evaluation and review for the examination
and approval of the establishment of institutions of higher learning.

Separation, amalgamation and termination of institutions of higher learning and other institutions of higher education, change in
name and category and other important matters shall be subject to the examination and approval of the original examination and approval
organ; revision of articles of association shall be submitted to the original examination and approval organ for verification and
approval.

Chapter IV Organization and Activities of Institutions of Higher Learning

Article 30

An institution of higher learning obtains the qualification of a legal entity as of the date of approval for its establishment. The
president of the institution of higher learning shall be the legal representative of the institution of higher learning.

An institution of higher learning has civil rights in accordance with law in civil activities and bears civil liability.

Article 31

Institutions of higher learning should carry out teaching, scientific research and social services centering round training talents
to guarantee that educational and teaching quality reaches standards prescribed by the state.

Article 32

Institutions of higher learning work out schemes for admission and independently regulate the percentage of admission for departments
and disciplines in accordance with the requirements and demand of society, conditions for running the institution and scale of the
institution verified by the state.

Article 33

Institutions of higher learning independently set up and adjust disciplines and specialties.

Article 34

Institutions of higher learning independently work out teaching plans, select and compile textbooks and organize activities of imparting
teaching in accordance with the requirements of teaching.

Article 35

Institutions of higher learning independently conduct scientific research, technological development and social services in the light
of their own conditions.

The state encourages cooperation in diverse forms between institutions of higher learning and enterprises, institutions, societies
and other social organizations in scientific research, technological development and extension.

The state supports those institutions of higher learning where conditions mature becoming state scientific research bases.

Article 36

Institutions of higher learning independently carry out scientific, technological and cultural exchanges and cooperation with foreign
institutions of higher learning in accordance with the relevant provisions of the state.

Article 37

Institutions of higher learning independently decide on the setting up and personnel employment of such internal organizational structures
as teaching, scientific research and administrative functional departments in the light of actual requirements and in accordance
with the principle of streamlining and efficiency; assess the positions of teachers and other specialized technical personnel, adjust
the allocation of subsidies and salary in accordance with the relevant provisions of the state.

Article 38

Institutions of higher learning independently administer and use the property provided by the sponsor(s), state financial subsidy
and properties donated and granted in accordance with law.

Institutions of higher learning must not use the property for teaching and scientific research activities for other purposes.

Article 39

The state-run institutions of higher learning practise the president responsibility system under the leadership of the grass-roots
committees of the Chinese Communist Party in institutions of higher learning. In accordance with the Constitution of the Chinese
Communist Party, the grass-roots committees of the Chinese Communist Party in institutions of higher learning exercise unified leadership
over school work and support the presidents in independently and responsibly discharging their duties, their responsibilities of
leadership are mainly as follows: to implement the line and policies of the Chinese Communist Party, adhere to the socialist orientation
of running the institutions, exercise leadership over ideological and political work and work related to morality in the institutions,
hold discussions and take decisions on the set-up of internal organizational structures and candidates for the persons-in-charge
of internal organizational structures, hold discussions and take decisions on such major matters as the reform, development and basic
administrative rules of the institutions to ensure the completion of various tasks centered round training of talents.

Internal management system of institutions of higher learning run by social forces shall be determined in accordance with the provision
of the state concerning running of schools by social forces.

Article 40

Presidency of institutions of higher learning shall be taken up by citizens conforming to the qualifications for the office prescribed
by the Education Law. Appointment and relief from duties of presidents and vice presidents of institutions of higher learning shall
be made pursuant to the relevant provisions of the state.

Article 41

The president of an institution of higher learning shall be fully responsible for the teaching, scientific research and other administrative
work of the respective institution and exercise the following duties and powers:

(1)

to draft development planning, formulate specific rules and regulations and annual work plan and organize their implementation;

(2)

to organize teaching activities, scientific research and ideological and moral education;

(3)

to draft schemes for the setting up of internal organizations, recommend candidates for vice presidency, appoint and relieve persons-incharge
of internal organizations;

(4)

to employ and dismiss teachers and other internal workers, administer students’ school roll and give rewards or impose penalties;

(5)

to draft and implement annual fund budget proposal, protect and manage school properties and safeguard the legitimate rights and interests
of the school; and

(6)

other duties and powers provided for in the articles of association.

The president of an institution of higher learning chairs the president’s administrative meeting or the institution’s administrative
meeting and handles the relevant matters prescribed in the preceding paragraph.

Article 42

An institution of higher learning establishes an academic committee for the review of such relevant academic matters as setting up
of disciplines and specialties, proposals of teaching plan and scientific research plan, and evaluate achievements in teaching and
scientific research.

Article 43

Institutions of higher learning guarantee the participation of teaching and administrative staff in democratic management and supervision
and safeguard the legitimate rights and interests of teaching and administrative staff in accordance with law in the organizational
form of the conference of representatives of teaching and administrative staff with teachers as the main body.

Article 44

Levels of running a school and educational quality of institutions of higher learning shall be subject to the supervision of departments
of education administration and the evaluation organized by them.

Chapter V Teachers and Other Educational Workers of Institutions of Higher Learning

Article 45

Teachers and other educational workers of institutions of higher learning have the rights prescribed by law, fulfil the obligations
prescribed by law and shall be faithful to the educational cause of the people.

Article 46

Institutions of higher learning practise the teachers’ qualification system. Chinese citizens who abide by the Constitution and laws,
ardently love the educational cause, have good ideology and moral character, have an educational background of graduation of post
graduate course or graduates of regular college course and have corresponding educational and teaching capabilities may, upon confirmation
of being qualified, acquire the qualification of teachers of institutions of higher learning. Those citizens without the educational
background of graduation of post graduate course or graduates of regular college course who have acquired a specialty from study
and passed the state examination for teachers’ qualification may also, upon confirmation of being qualified, acquire the qualification
of teachers of institutions of higher learning.

Article 47

Institutions of higher learning practise the teachers’ position system. Teachers’ positions of institutions of higher learning shall
be set up in accordance with the requirements of the tasks in teaching, scientific research undertaken by the institutions. Teachers’
positions include assistant, lecturer, associate professor and professor.

Teachers of institutions of higher learning should meet the following basic conditions for acquiring the positions prescribed in the
preceding paragraph:

(1)

one who has acquired the teacher’s qualification for an institution of higher learning;

(2)

one who has a systematic mastery of the basic theory of the respective discipline;

(3)

one who has the educational and teaching capability and scientific research capability of the corresponding position; and

(4)

one who undertakes the courses and teaching task of prescribed periods of the corresponding position.

Professors and associate professors should, in addition to having the above basic conditions for taking up the position, also have
systematic and firm basic theory of the respective discipline and rich experiences in teaching and scientific research, with remarkable
achievements in teaching, theses and works reaching high level or has outstanding achievements in teaching and scientific research.

Specific conditions for taking up positions for the positions of teachers of institutions of higher learning shall be prescribed by
the State Council.

Article 48

Institutions of higher learning practise the teachers’ employment system. Teachers who have the qualification for taking up the position
upon evaluation shall be employed by institutions of higher learning in accordance with the responsibilities, conditions and terms
of office of teachers’ positions.

Employment of teachers of institutions of higher learning should abide by the principle of mutual equality and voluntarism, and an
employment contract shall be signed by the president of an institution of higher learning and the teacher who accepts the employment.

Article 49

Institutions of higher learning practise the educational staff system for administrators. Institutions of higher learning practise
the specialty technical position employment system for auxiliary teaching staff and other specialty technical staff.

Article 50

The state protects the legitimate rights and interests of teachers and other educational workers of institutions of higher learning,
takes measures to improve the working conditions and living conditions of teachers and other educational workers of institutions
of higher learning.

Article 51

Institutions of higher learning should provide facilities for teachers’ participation in training, conducting scientific research
and academic exchanges. Institutions of higher learning should check up the ideological and political performance, professional ethics,
professional level and actual achievements in work of teachers, administrators, auxiliary teaching staff and other specialized technical
personnel. Results of the check-up shall constitute the basis of employment or dismissal, promotion, rewards or penalties.

Article 52

Teachers, administrators and auxiliary teaching staff as well as other specialized technical personnel of institutions of higher learning
should do their respective work well centering around teaching and training of talents.

Chapter VI Students of Institutions of Higher Learning

Article 53

Students of institutions of higher learning should abide by laws and regulations, abide by students’ code of conduct and the institutions’
various administrative rules, respect teachers, study hard, strengthen their physique, foster ideas of patriotism, collectivism and
socialism, strive to learn Marxism-Leninism, Mao Zedong Thought and Deng Xiaoping’s Theory, have good ideological morality and master
high-level scientific and cultural knowledge and specialized skills.

The legitimate rights and interests of students of institutions of higher learning are protected by law.

Article 54

Students of institutions of higher learning should pay a tuition fee in accordance with state provisions.

Students whose families are financially difficult may apply for subsidy or reduction and exemption of the tuition fee.

Article 55

The state establishes scholarships and encourages institutions of higher learning, enterprises and institutions, societies as well
other social organizations and individuals in the establishment of scholarships of various forms in accordance with relevant state
provisions, and give rewards to students of good character and scholarship, students of the specialties prescribed by the state and
students who go to work in regions determined by the state.

The state establishes the fund and loans for work-study programs for students of institutions of higher learning, and encourages institutions
of higher learning, enterprises and institutions, societies as well as other social organizations and individuals in the establishment
of various forms of grants-in-aid to provide assistance for students whose families are financially difficult.

Students who obtain loans and grants-in-aid should fulfil corresponding obligations.

Article 56

Students of institutions of higher learning may participate in after-school social services and work-study activities, however these
must not adversely affect the completion of tasks of school work.

Institutions of higher learning should encourage and support students’ social services and work-study activities and provide guidance
and administration.

Article 57

Students of institutions of higher learning may organize students’ societies within the institutions. Students’ societies carry out
activities within the scope prescribed by regulations and shall be subject to the leadership and administration of the institutions.

Article 58

Students of institutions of higher learning who qualify in ideology and moral character, complete the prescribed courses within the
prescribed length of schooling and are up to standard in results or study and obtain corresponding credits shall be permitted to
graduate.

Article 59

Institutions of higher learning should provide employment guidance and services for graduates and students who have completed the
courses.

The state encourages graduates of institutions of higher learning to work in border regions, remote areas and difficult areas.

Chapter VII Guarantee for Input and Conditions of Higher Education

Article 60

The state establishes the system of financial allocation as the main source to be supplemented by raising funds for higher education
through various other channels to make the development of the cause of higher education to be commensurate with the level of economic
and social development.

The State Council and people’s governments of the provinces, autonomous regions and municipalities directly under the Central Government
ensure gradual increase in funds for state-run higher education pursuant to the provisions

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON THE EXCLUSIVE ECONOMIC ZONE AND THE CONTINENTAL SHELF

The Standing Committee of the National People’s Congress

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

No.6

The Law of the People’s Republic of China on the Exclusive Economic Zone and the Continental Shelf which has been adopted at the 3rd
Meeting of the Standing Committee of the Ninth National People’s Congress on June 26, 1998 is promulgated now, and shall enter into
force as of the date of promulgation.

President of the People’s Republic of China Jiang Zemin

June 26, 1998

Law of the People’s Republic of China on the Exclusive Economic Zone and the Continental Shelf

Article 1

This Law is enacted with a view to ensuring the exercise of the sovereign rights and jurisdiction over the exclusive economic zone
and the continental shelf by the People’s Republic of China and safeguarding maritime rights and interests of the State.

Article 2

The exclusive economic zone of the People’s Republic of China is the area adjacent to and beyond the territorial sea of the People’s
Republic of China, extending as far as 200 nautical miles measured from the baseline that is used for calculating the breadth of
the territorial sea.

The continental shelf of the People’s Republic of China is all natural extensions following the land territory of the State and beyond
the territorial sea of the People’s Republic of China, extending as far as the bed and subsoil of the undersea area on the outer
fringe of the continent; or extending as far as 200 nautical miles in case where it is not more than 200 nautical miles measured
from the baseline, which is used for calculating the breadth of the territorial sea, to the outer fringe of the continent.

Where the claim of the People’s Republic of China for the exclusive economic zone and the continental shelf overlaps with that of
other country adjacent or opposite in their seacoasts, a boundary shall be determined under the principle of equity and based on
the international law.

Article 3

The People’s Republic of China exercises sovereign rights for the purpose of exploring, exploiting, conserving and managing natural
resources in water areas above the seabed, in seabed and subsoil of the exclusive economic zone as well as for the purpose of other
economic activities of exploitation and exploration such as utilization of seawater, sea current and wind power to produce energy.

The People’s Republic of China exercises jurisdiction in relation to construction and exploitation of artificial islands, installations
and structures as well as maritime scientific research, protection and conservation of maritime environment in the exclusive economic
zone.

Natural resources in the exclusive economic zone mentioned in this Law include living resources and non-living resources.

Article 4

The People’s Republic of China exercises sovereign rights over its continental shelf for the purpose of exploring the continental
shelf and exploiting natural resources in the continental shelf.

The People’s Republic of China exercises jurisdiction in relation to construction and exploitation of artificial islands, installations
and structures as well as maritime scientific research, protection and conservation of maritime environment in the continental shelf.

The People’s Republic of China possesses the exclusive right to authorize and manage drilling operations in its continental shelf
for any purpose.

Natural resources in the continental shelf mentioned in this Law include minerals and other non-living resources in the seabed and
subsoil, as well as organisms of resident species that, at the fishing seasons, are immobile on or under the seabed or mobile only
by keeping their bodies clinging to the seabed or subsoil.

Article 5

Entry of any international organization, foreign organization or individual into the exclusive economic zone of the People’s Republic
of China for fishing activities must be subject to the approval of the competent authorities of the People’s Republic of China, and
must conform to the laws and regulations of the People’s Republic of China and treaties and agreements to which the People’s Republic
of China and other countries involved are signatories.

The competent authorities of the People’s Republic of China shall have the power to take all necessary measures of conservation and
management ensuring that living resources in the exclusive economic zone are protected from excessive exploitation.

Article 6

The competent authorities of the People’s Republic of China shall have the power in its exclusive economic zone to conserve and manage
the trans-boundary population, highly migrating fishes, marine mammals, anadromous spawning population orignating in rivers of the
People’s Republic of China, and downstream spawning fishes speading most of their life cycles in the water areas of the People’s
Republic of China.

The People’s Republic of China has principal interests to the anadromous spawning population orignating in its own rivers.

Article 7

Any operations of exploration and exploitation of natural resources in the exclusive economic zone and the continental shelf of the
People’s Republic of China, or any operations of drilling in the continental shelf of the People’s Republic of China for any purpose,
by any international organization, foreign organization or individual, must be subject to the approval of the competent authorities
of the People’s Republic of China, and must conform to the laws and regulations of the People’s Republic of China.

Article 8

The People’s Republic of China has the exclusive right to construct, manage and authorize to construct, operate and utilize artificial
islands, installations and structures in its exclusive economic zone and its continental shelf.

The People’s Republic of China exercises exclusive jurisdiction over artificial islands, installations and structures in its exclusive
economic zone and its continental shelf, including jurisdiction based on laws and regulations governing matters of Customs, finance,
public health and entry and exit.

The competent authorities of the People’s Republic of China has the power to set up safety belts surrounding artificial islands, installations
and structures in the exclusive economic zone and the continental shelf, and may take proper measures in such belts ensuring navigation
safety and the safety of artificial islands, installations and structures.

Article 9

Marine scientific research by any international organization, foreign organization and individual in the exclusive economic zone and
the continental shelf of the People’s Republic of China must be subject to the approval of the competent authorities of the People’s
Republic of China and must conform to the laws and regulations of the People’s Republic of China.

Article 10

The competent authorities of the People’s Republic of China has the power to take necessary measures for preventing, eliminating and
controlling pollution to marine environment and protecting and conserving marine environment of the exclusive economic zone and the
continental shelf.

Article 11

All country, provided observing the international law and laws and regulations of the People’s Republic of China, enjoy the freedom
of navigating in and flying over the exclusive economic zone of the People’s Republic of China, enjoy the freedom of laying down
submarine cables and piping in the exclusive economic zone and the continental shelf of the People’s Republic of China, and enjoy
other convinences related to the freedom above-mentioned for legal use of ocean. The route of laying down submarine cables and piping
must be subject to the consent of the competent authorities of the People’s Republic of China.

Article 12

The People’s Republic of China may, when exercising sovereign rights to explore, exploit, conserve and manage living resources in
its exclusive economic zone, take necessary measures such as boarding, search, arrest, seazure and imposition of judicial process
ensuring the observance of laws and regulations of the People’s Republic of China.

The People’s Republic of China has the power to take necessary measures against acts violating laws and regulations of the People’s
Republic of China in the exclusive economic zone and the continental shelf, investigate for legal liabilities according to law, and
may exercise the right of hot pursuit.

Article 13

Other rights of the People’s Republic of China to its exclusive economic zone and its continental shelf, which not provided for by
this Law, shall be exercised in accordance with the international law and other relevant laws and regulations of the People’s Republic
of China.

Article 14

No provisions of this Law can prejudice historical rights of the People’s Republic of China.

Article 15

The Government of the People’s Republic of China may formulate relevant provisions in accordance with this Law.

Article 16

This Law shall enter into force as of the date of promulgation.

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

 




CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON STRENGTHENING THE ISSUANCE OF PROJECT CONFIRMATION DOCUMENT

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation on Strengthening the Issuance of Project Confirmation Document

WaiJingMaoZiZongHanZi [1998] No.254

May 6, 1998

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

For further and better utilization of foreign capital, the State Council decreed that tariffs and import linkage value-added tax were
eliminated for the imported equipment of foreign investment projects encouraged by the country as of January 1, 1998. The Circular
for Adjusting Taxation Policies on Imported Equipment (GuoFa [1997] No.37) of the State Council, the Circular for Implementing Related
Issues of the Circular for Adjusting Taxation Policies on Imported Equipment of the State Council jointly issued by the State Development
Planning Commission, the State Economic and Trade Commission, the Ministry of Foreign Trade and Economic Cooperation and the General
Administration of Customs (JiGuiHua [1998] No.250), and the Supplementary Circular for Implementing Related Issues of the Circular
for Adjusting Taxation Policies on Imported Equipment (WaiJingMaoZiFa [1998] No.286) of the Ministry of Foreign Trade and Economic
Cooperation explicitly provide for the authorities to review and approve the foreign investment projects that enjoy tax-free import
of equipment and to issue the project confirmation document.

It is hereby reaffirmed that the limited-amount projects to be examined and approved as well as rendered the project confirmation
document by foreign trade and economic authorities as prescribed by related regulations, the authorized review and approval as well
as issuing authorities should be competent foreign trade and economic departments of all provinces, autonomous regions, municipalities
directly under the Central Government and municipalities separately listed on the State plan. The power should not be transferred
to a lower level. The project confirmation document should be copied to the Department of Foreign Investment of the Ministry of Foreign
Trade and Economic Cooperation within 10 days upon its issuance for file-keeping purpose.

The materials to be submitted should include the photocopy of the project confirmation document and the counterfoil of the approval
certificate.



 
The Ministry of Foreign Trade and Economic Cooperation
1998-05-06

 







CIRCULAR OF THE STATE COUNCIL CONCERNING FURTHER STRENGTHENING EPHEDRINE CONTROL

Category  PUBLIC SECURITY Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-03-11 Effective Date  1998-03-11  


Circular of the State Council Concerning Further Strengthening Ephedrine Control



(March 11, 1998)

    China is one of the major producing and exporting countries of natural
ephedrine. Ephedrine is both the raw material for medicine and the precursor
for making methamphetamine (“ice” drug). In recent years, international drug
trafficking groups have, in collusion with drug traffickers at home, smuggled
large quantities of ephedrine out of the country, or engaged in illegal
processing and manufacturing of methamphetamine at home in the name of
establishing plants with investment, joint ventures for making medicine and
production of chemicals for civilian applications and smuggled their products
or semi-products out of the country. A small number of localities and
departments provided lawless persons with an opportunity to manufacture
methamphetamine in the production and management of ephedrine in large
quantities in pursuit of economic benefits in violation of the relevant
state provisions. This state of affairs has aroused the concern of the
international community especially that of the International Anti-drug
Organization and has been detrimental to the international image of China.
The relevant questions are hereby notified as follows with a view to further
strengthening ephedrine control, preventing ephedrine from getting into
illegal channels and ensuring people’s health:

    I.People’s governments at all levels and the departments concerned
should enhance their understanding, earnestly strengthen the leadership
of ephedrine control, strictly abide by state laws and regulations and
practise the ephedrine control responsibility system. Strong measures
should be taken for the sorting out and consolidation of enterprises
producing and managing ephedrine; enterprises or units engaging in illegal
production and management of ephedrine should be firmly banned according to
law; with respect to those production and management enterprises that
caused ephedrine to get into illegal channels due to mismanagement should
be firmly nullified of their production and management qualifications and
personnel directly responsible of the departments and units concerned shall
be investigated of the legal liability according to law.

    II.The State practises the special-purpose control system with respect
to the production, management, use and export of ephedrine (including extracts
from ephedra grass and chemically synthesized, levorotatary and dextrotatory)
as well as their saline categories such as ephedrine hydrochloride, ephedrine
oxalic, ephedrine sulphate and raw products of ephedrine (including ephedrine
extracts, ephedrine extract powder and ephedra powder), ephedrine derivatives
and prescribed preparations made with ephedrine as the raw material.

    (1) Planned production of ephedrine shall be carried out at designated
points in fixed quantity.

    The designated enterprises for the production of ephedrine shall be
appointed by the state department of pharmaceutical administration and
submitted to the Office of the National Anti-drug Leading Group for the
record. No unit or individual without appointment shall engage in production
activities of ephedrine.

    The annual production plan of ephedrine shall be examined and finalized by
the state department of pharmaceutical administration. Designated production
enterprises of ephedrine shall work out production plans for the following
year (including supply plans for export) and submit them to the state
department of pharmaceutical administration for verification and approval upon
preliminary examination and consent of the departments of pharmaceutical
administration of the provinces, autonomous regions and municipalities
directly under the Central Government wherein the enterprises are located.
No designated production enterprise shall overproduce ephedrine beyond the
plan in violation of state provisions.

    No designated production enterprise of ephedrine shall expand the
production scale of ephedrine in the form of technology transfer, joint
management or establishing branch plant without the approval of the state
department of pharmaceutical administration. A designated enterprise
without production task for two years may be nullified of its designation.

    (2) Strengthening ephedrine management control.

    The State practises monopoly for the purchase and marketing of ephedrine.
The state department of pharmaceutical administration shall, in conjunction
with the department of public health, study and formulate measures for
the designated points for the supply of ephedrine and submit the same to
the Office of the National Anti-drug Leading Group for the record. No unit
or individual without appointment shall operate ephedrine business.
Pharmaceutical, medical and scientific research units that use ephedrine
can only make the purchase at the designated management enterprises of
ephedrine appointed in accordance with provisions.

    Establishing ephedrine purchase and marketing verification rules.
An application in writing shall be filed at the department of pharmaceutical
administration of a province, an autonomous region or a municipality directly
under the Central Government for the purchase of ephedrine, a certificate for
purchase and use obtained upon examination and approval and the purchase
made at the designated management enterprise of ephedrine appointed.
Certificates for ephedrine purchase and use shall be uniformly printed by
the state department of pharmaceutical administration and one certificate
shall be valid for a single use. Speculation and transfer of certificates
for ephedrine purchase and use shall be prohibited.

    Management enterprises of ephedrine are strictly prohibited to sell
ephedrine to any enterprise or individual without a certificate of purchase
and use. Use of cash shall be prohibited in the purchase and marketing
activities of ephedrine.

    (3) Strengthening ephedrine warehouse and transport control.

    Production and management enterprises of ephedrine must establish strict
warehouse rules and should set aside special-purpose stock rooms and appoint
special persons for the control thereof. A transport permit must be obtained
from the provincial public security organ for the transportation of ephedrine
under escort by designated persons. Ephedrine transport permits shall be
uniformly printed by the Ministry of Public Security and one certificate
shall be valid for a single use.

    (4) Standardizing control over ephedrine use.

    Departments of public health must enhance control over prescribed
ephedrine preparations. Prescribed ephedrine preparations can only be sold
to medical units which shall sell on the strength of doctors’ prescriptions.
All categories of pharmacies of society and private clinics are strictly
prohibited to sell prescribed ephedrine preparations.

    Units that use ephedrine and its prescribed preparations must establish
registration rules for the purchase, use and destruction thereof to strictly
prevent ephedrine and its prescribed preparations from getting into illegal
channels.

    (5) Stepping up ephedrine import-export control.

    The State practises licence control system for the export of ephedrine.
Ephedrine export enterprises and export plan shall be determined by the
Ministry of Foreign Trade and Economic Co-operation in consultation with the
state department of pharmaceutical administration. No other units or
individuals shall engage in ephedrine export business.

    An ephedrine export enterprise must, in applying for export formalities,
present the import licence issued by the government of the country, region
or the agency entrusted by the government of the country, region in which the
foreign import firm is located and the original of the contract to the
Ministry of Foreign Trade and Economic Co-operation, upon examination and
approval of the Ministry of Foreign Trade and Economic Co-operation, submit it
to the Office of the National Anti-drug Leading Group for international
verification, and upon confirmation as legal, be issued an ephedrine export
licence by the Ministry of Foreign Trade and Economic Co-operation.

    An ephedrine export enterprise shall go through the formalities for
the obtainment of the certificate of purchase and use for ephedrine export
at the state department of pharmaceutical administration along with the
ephedrine export licence issued by the Ministry of Foreign Trade and Economic
Co-operation and the afore-said materials and make the purchase at the
designated ephedrine management enterprise appointed. Certificates for
purchase and use for ephedrine export shall be uniformly printed by the
state department of pharmaceutical administration and one certificate
shall be valid for a single use.

    An ephedrine export enterprise must, within 30 days after the customs
declaration and shipment of ephedrine, present to the Ministry of Foreign
Trade and Economic Co-operation photocopies of the export licence and export
goods declaration form signed and annotated by customs. An enterprise that
has failed to effect the shipment within the validity of the licence due to
unforeseen reasons must, within 15 days after the expiry of the export
licence and the certificate of purchase and use for export, return the
afore-said certificates to the original licensing units in time. The ephedrine
not exported must not be disposed of without authorization and without the
approval of the state department of pharmaceutical administration.
Speculation and transfer of ephedrine export licences and certificates of
purchase and use for export are prohibited.

    Customs exercises supervision and control over ephedrine export and
examines the licence and issues customs clearance against the ephedrine
export licence. Ports of ephedrine export shall be designated by the
General Administration of Customs, ports not designated by the General
Administration of Customs are not allowed to export ephedrine. With respect
to passengers bringing or individuals sending by post prescribed ephedrine
preparations out of the country, customs shall make inspection and
examination and issues clearance against doctor’s special prescription
specified by the department of public health.

    No ephedrine shall be imported any more under any circumstances as of the
date of issuance of this Circular.

    III.People’s governments at all levels and the departments concerned
should assume their respective responsibilities, strengthen coordination
and cooperation in jointly and successfully carrying out ephedrine control
and sternly cracking down on illegal criminal activities of smuggling and
trafficking ephedrine in accordance with law.

    IV.Where relevant provisions previously issued by localities and
departments are inconsistent with this Circular, this Circular shall prevail.






SECURITIES LAW

Category  SECURITIES 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  1999-07-01  


Securities Law of the People’s Republic of China

Contents
Chapter I  General Provisions
Chapter II  Securities Issuance
Chapter III  Securities Trading
Chapter IV  Listed Company Acquisition
Chapter V  Securities Exchanges
Chapter VI  Security Companies
Chapter VII  Securities Registration and Settlement Agencies
Chapter VIII  Securities Trading Services Agencies
Chapter IX  Securites Industry Associations
Chapter X  Securities Supervision and Administration Institution
Chapter XI  Legal Liability
Chapter XII  Supplementary Provisions

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

National People’s Congress on December 29, 1998 and promulgated by
Order No. 12 of the President of the People’s Republic of China on
December 29, 1998)
Contents

    Chapter I  General Provisions

    Chapter II  Securities Issuance

    Chapter III  Securities Trading

       Section 1  General Rules

       Section 2  Securities Listing

       Section 3  Sustained Open Information

       Section 4  Prohibited Trading Acts

    Chapter IV  Listed Company Acquisition

    Chapter V  Securities Exchanges

    Chapter VI  Security Companies

    Chapter VII  Securities Registration and Settlement Agencies

    Chapter VIII  Securities Trading Services Agencies

    Chapter IX  Securiities Industy Associations

    Chapter X  Securities Supervision and Administration Institutions

    Chapter XI  Legal Liabiliby

    Chapter XII  Supplementary Provisions

Chapter I  General Provisions

    Article 1  This Law is enacted for purposes of standardizing acts of securities issuance and trading, protecting the legitimate
rights and
interests of investors, maintaining socioeconomic order and public interest
of society and promoting the development of the socialist market economy.

    Article 2  This Law shall be applicable to the issuance and trading of stocks, corporate bonds and other securities confirmed by
the State Council
according to law within the territory of China. Where there are no provisions
in this Law, provisions of the Company Law, and other laws and regulations
shall be applicable.

    Issuance and trading of government bonds shall be prescribed by law
or administrative regulations separately.

    Article 3  The principle of openness, fairness and justice must be
practised in operations of securities issuance and trading.

    Article 4  Parties interested in operations of securities issuance
and trading have equal legal status and should abide by the principle
of voluntariness, compensation, honesty and trustworthiness.

    Article 5  Operations of securities issuance and trading must abide by
laws and administrative regulations; acts of fraud, inside trading and
manipulation of securities trading markets shall be prohibited.

    Article 6  The securities industry and banking industry, trust business
and insurance industry shall be put under separate industry-wise management
and separate industry-wise administration. Security companies and banking,
trust and insurance business instituions shall be established separately.

    Artilce 7  The securities supervision and administration institution
under the State Council practises centralized and unified supervision and
administration of securities markets nationwide.

    The securities supervision and administration institution under the
State Council may establish representative offices which shall fulfil
the duties and responsibilities authorized.

    Article 8  Securities industry associations established according to law
shall practise self-policing administration under the prerequisite of the
exercise by the state of centralized and unified supervision and
administration over operations of securities issuance and trading.

    Artilce 9  State audit organs shall conduct audit suspervision
according to law over securities exchanges, security companies, securities
registration and settlement agencies and securities supervision and
administration institutions.
Chapter II  Securities Issuance

    Article 10  Public issuance of securities must conform to the criteria
prescribed by laws and administrative regulations, and be submitted to the
securities supervision and administration institution under the State Council
or the deparments authorized by the State Council according to law for
verification and approval or examination and approval; no unit or individual
shall, without verification and approval or examination and approval according
to law, publicly issue securities in society.

    Article 11  Public issuance of stocks must, pursuant to the conditions
prescribed in the Company Law, be submitted to the securities supervision
and administration institution under the State Council for verification and
approval. The issuer must present the application document prescribed by the
Company Law and the relevant documents prescribed by the securities
supervision and administration institution under the State Council to
the securities supervision and administration institution under the State
Council.

    Issuance of corporate bonds must, pursuant to the criteria prescribed in
the Company Law, be submitted to the department authorized by the State
Council for examination and approval. The issuer must present the applicatiion
document prescribed by the Company Law and other documents prescribed by the
department authorized by the State Council to the department authorized by
the State Council.

    Article 12  The format and ways of submission of the application
document to be presented by the issuer for application for public issuance
of securities according to law shall be prescribed by the institution or
department resposnsible for verification and approval or examination and
approval accordindg to law.

    Article 13  The application document for securities issuance to be
presented by the issuer to the securities supervision and administration
institution under the State Council or the department authorized by the
State Council must be truthful, accurate and complete.

    The specialized agencies and personnel for drawing up relevant documents
for securities issuance must strictly fulfil the legal duties and
responsibilities to ensure the truthfulness, accuracy and completeness
of the documents drawn up by them.

    Article 14  An issuance examination and verification commission shall
be established under the securities supervision and administration
institution under the State Council for examination and verification
of applications for issuance of stocks in accordance with law.

    The issuance examination and verification commission shall be composed of specialized personnel of the securities
supervision and administration
institution under the State Council and specialists concerned employed
from outside the said institution and come up with views on examination
and verification and decide by vote on applications for stock issuance
in the form of ballot.

    Specific measures for the composition, tenure of office for its members
and the working procedures of the issuance examination and verification
commission shall be formulated by the securities supervision and
administration institution under the State Council and submitted to the
State Council for approval.

    Article 15  The securities supervision and administration institution
under the State Council shall, pursuant to legal conditions, be responsible
for the verification and approval of applications for stock issuance.
The procedures for verification and approval shall be open and be
subject to supervision in accordance with law.

    Personnel participating in the verification and approval of applications
for stock issuance shall not have relations of interests with issuance
application units; shall not accept present(s) of issuance application
unit(s); shall not hold stocks the issuance application of which has been
approved; and shall not come into contact with issuance application unit(s)
in private.

    Examination and approval of applications for issuance of corporate bonds
by the departments authorized by the State Council shall be processed by
referring to the provisions of the two preceding paragraphs.

    Article 16  The securities supervision and administration instituion
under the State Council or the departments authorized by the State Council
should, within 3 months starting from the date of acceptance of securities
issuance application documents, make a decision; explanations shall be made
for non-approval or non examination and approval.

    Article 17  An issuer shall, with the approval or examination and
approval of the securities issuance application, make an announcement of
the document on public issuance and raising and place the said document at
designated site(s) for public reference prior to the public issuance of the securities pursuant to the provisions of laws and administrative
regulations.

    Prior to the information on securities issuance being made public
in accordance with law, no insider shall make public or disclose the
said information.

    No issuer shall issue securities prior to the announcement of the
document on public issuance and raising.

    Article 18  The securities supervision and administration institution
under the State Council or the departments authorized by the State Council
shall, upon discovery of the decision already made on the approval or
examination and approval of securities issuance to be not in conformity
with the provisions of laws and administrative regulations, revoke the
said decision; where issuance of securities has not been initiated, the
issuance shall be suspended; where the securities have already been issued,
the securities holders may, in accordance with the issuing price with
the added calculation  of interests for deposit of the corresponding
period, ask the issuer for refund.

    Article 19  The issuer shall be responsible for himself/herself for
changes in the management and returns of the issuer after issuance of the
stocks in accordance with law; the investors shall be responsible for
himself/herself for investment risks resulting from the changes.

    Article 20  New stocks issued by a listed company should conform to
the conditions governing issuance of new stocks specified in the Company
Law, and may be raised in public in society, or allocated to original
stock-holders.

    Funds raised by a listed company from stock issuance must be used
according to the uses of the funds listed in the prospectus. Change
in fund uses listed in the prospectus must be subject to the approval
of the general meeting of shareholders. Where arbitary change in use
without rectification has occurred, or the change has taken place without
affirmation of the general meeting of shareholders, no new stocks shall
be issued.

    Article 21  Security companies should, pursuant to the provisions of laws and administrative regulations, sell issuers’ securites
for public
issuance in society. Securities sales business take the form of sale on
a commission basis or exclusive sales.

    Sale on a commission basis of securities mean the the form of underwriting
of selling of securities by security companies for issuers and returning all
the unsold securities to issuers at the conclusion of the selling period.

    Exclusive sales of securities mean the form of underwriting of total
buying in of issuers’ securities by security companies or total buying in of
the securities left over after sales by security companies themselves at the
conclusion of the selling period in accordance with agreement.

    Article 22  An issuer of securities for public issuance has the right to
choose independently an underwriting security company in accordance with law.
No security company shall solicit business of underwriting by means of unfair
competition.

    Article 23  A security company shall, in business of underwriting,
conclude an agreement on the sale on a commission basis or exclusive sales
with the issuer carrying the following particulars:

    (1)names and residences of the parties interested and names of legal
representatives;

    (2)types, quantity, amount and issuing price of the securities for
sale on a commission basis or exclusive sales;

    (3)duration for sale on a commission basis or exclusive sales and
dates of commencement and termination;

    (4)mode of payment and dates for sale on a commission basis or
exclusive sales;

    (5)charges and settlement measures for sale on a commission basis or
exclusive sales;

    (6)liability for breach of contract; and

    (7)other matters prescribed by the securities supervision and
administration institution under the State Council.

    Article 24  A security company shall, in business of underwriting,
check and verify the truthfulness, accuracy and completeness of the document
for public issuance and raising; no sales operations shall be carried out upon
uncovering of the document containing false recordings, misleading statements
or having major omissions; where sales have been under way, the sales
operations must be suspended forthwith and correction measures shall be
taken.

    Article 25  Underwriting of securities for public issuance in society
the total face value of which exceeds RMB 50 million Yuan shall be undertaken
by an underwriting syndicate. The underwriting syndicate shall be composed of the leading underwriting security company and participating
underwriting
security companies.

    Article 26  The longest duration for sale on a commission basis or
exclusive sales of securities shall not exceed 90 days.

    A security company shall, within the duration of sale on a commission
basis or exclusive sales, ensure that the securities it has undertaken for
sale on a commission basis or exclusive sales are first sold to the
subcribers, and the security company shall not retain in advance the
securities the sale on a commission basis of which has been undertaken by
the company and buy in beforehand and retain the securities undertaken by
the company for exclusive sales.

    Article 27  A security company that undertakes exclusive sales of securities shall, within 15 days at the expiration of the duration
for
exclusive sales, submit the information on exclusive sales to the securities
supervision and administration institution under the State Council for the
record.

    A security company that undertakes sales of securities on a commission
basis shall, within 15 days at the expiration of the duration for sale on a
commission basis, together with the issuer submit the imformation on the
sales of securities on a commission basis to the securities supervision and
administration institution under the State Council for the record.

    Article 28  Where stock issuance takes the form of premium issuance,
its issuing price shall be decided by the issuer and the underwriting
security company through consultation and submitted to the securities
supervision and administration institution under the State Council for
verification and approval.

    Article 29  A domestic enterprise that goes in for direct or indirect
issuance of securities overseas or listing for trading of its securities
overseas must be subject to the approval of the securities supervision and
administration institution under the State Council for approval.
Chapter III  Securities Trading

       Section 1  General Rules

    Article 30  Securities bought or sold according to law by parties
interested to securities trading must be securities issued and delivered
in accordance with law.

    No securities issued not in accordance with law shall be bought or sold.

    Article 31  Stocks, corporate bonds and other securities issued in
accordance with law restrictive provisions have been imposed by law on
their time limit for transfer shall not be bought or sold within the
restricted time limit.  

    Article 32  Stocks, corporate bonds and other securities the listing
for trading of which has been verified and approved in accordance with law
should be listed for trading at securities exchanges.

    Article 33  Listing for trading of securities at securities exchanges
should take the form of open and centralized competitive bidding.

    Centralized competitive bidding in securities trading should follow
the principle of price preference and time preference.

    Article 34  Securities bought or sold by parties interested to
securities trading may take paper form or other forms laid down by the
securities supervision and administration institution under the State Council.

    Article 35  Transactions in securities trading shall be concluded in
spot stocks.

    Article 36  Security companies shall not engage in securities trading
operations of financing or securities accomodation from clients.

    Article 37  Employees of securities exchanges, security companies and
securities registration and settlement agencies, staff members of securities
supervision and administration institutions and other personnel prohibited
from participating in stocks trading by laws and regulations shall not, within
their tenure of office or the legal time limit, hold, buy or sell stocks
directly or use an assumed name or in the name of others, nor shall they
accept stocks donated by others.

    Anyone must, at the time becoming one of the personnel listed in the
preceding paragraph, transfer the stocks originally held by him/her according
to law.

    Article 38  Securities exchanges, security companies and securities
registration and settlement agencies must maintain secrecy for the accounts
opened for their clients according to law.

    Article 39  The specialized agency and personnel for drawing up such
papers as the audit report, assets assessment report or legal advice for
stock issuance shall not, within the underwriting period of the said stocks
and within 6 months at the expiration of the time period, buy or sell the
said stocks.

    In addition to the provisions of the preceding paragraph, the specialized
agency and personnel for drawing up the audit report, assets assessment report
or legal advice for a listed company shall not, starting from the date of acceptance of entrustment of the listed company to within
5 days after the
above-mentioned documents have been made public, buy or sell the said stocks.

    Article 40  Collection of fees for securities trading must be reasonable
and items for fee collection, rates for fee collection and methods of fee
collection shall be made public.

    Items for fee collection, rates of fee collection and measures for
administration shall be uniformly determined by the departments of administration concerned under the State Council.

    Article 41  A stockholder holding 5% of the stocks issued by a
joint-stock company limited should, within 3 days starting from the date of the amount of stocks held by him/her reaching the said
percentage, report
to the company which must report to the securities supervision and
administration institution under the State Council within 3 days starting
from the date of receipt of the report; when it belongs to a listed company,
a report shall be submitted simultaneously to the securities exchanges.

    Article 42  The stockholder prescribed in the preceding Article who
sells the stocks of the said company held by him/her within 6 months after
buying in, or again buys in within 6 months of selling, the returns accrued
therefrom shall belong to the said company, and the board of directors of the company should withdraw the returns gained by the said
stockholder.
However, a security company that holds more than 5% of the stocks as a
result of the left-over stocks after sales of buying in for exclusive sales,
its sale of the said stocks shall not be subject to the time limit of 6
months.

    Where the board of directors of a company fails to implement the
provisions of the preceding paragraph, other stockholders have the right to
demand implementation by the board of directors.

    Where the board of directors of a company fails to implement the
provisions of the First Paragraph resulting in damage to the company,
the director(s) held responsible shall bear joint responsibility for
compensation in accordance with law.

       Section 2  Securities Listing

    Article 43  Application by a joint-stock company limited for listing for
trading of its stocks must be submitted to the securities supervision and
administration institution under the State Council for verification and
approval.    

    The securities supervision and administration institution under the
State Council may authorize securities exchanges to verify and approve
applications for listing of stocks pursuant to legal terms and legal
procedures.

    Article 44  The state encourages the listing for trading of corporate
stocks conforming both to the industrial policy and conditions for listing.

    Article 45  The following documents shall be presented at the time of filing an application for listing for trading with the securities
supervision
and administration institution under the State Council:

    (1)a report on listing;

    (2)the resolution of the general meeting of shareholders for the
application for listing;

    (3)articles of association of the company;

    (4)business licence of the company;

    (5)financial and accounting reports of last three years of the company
or those since the establishment of the company examined and certified by
a legal certification agency;

    (6)legal advice and a letter of reference by a security company; and

    (7)the latest prospectus.

    Article 46  An issuer shall, upon verification and approval of the
application for listing for trading of the stocks by the securities
supervision and administration institution under the State Council,
present the approval document and the relevant documents prescribed in
the preceding paragraph to securities exchanges.

    The securities exchanges shall, within 6 months starting from the date
of receipt of the documents prescribed in the preceding paragraph presented
by the issuer of the said stocks, arrange the listing for trading of the
said stocks.

    Article 47  The listed company shall, upon the consent of the securities
exchanges on the application for listing for trading of its stocks, announce
the approved relevant documents for the listing of the stocks, and place
the said documents at a designated place for public reference 5 days before
the listing for trading.

    Article 48  In addition to announcing the application document for
listing prescribed in the preceding Article, the listed company shall
also announce the following particulars:

    (1)the date of approval of trading of its stocks at securities exchanges;

    (2)list of the top ten stockholders holding maximum shares of the
company and the number of shares held by them; and

    (3)names of directors, commissioners, managers and high-level
administrators concerned and information on the stocks and bonds of the
comapany held by them.

    Article 49  For a listed company that has forfeited the listed
requirements prescribed by the Company Law, its stocks shall be suspended
for listing or terminated for listing according to law.

    Article 50  An application by a company for listing for trading of the
corporate bonds issued by it must be submitted to the securities supervision
and administration institution under the State Council for verification and
approval.

    The securities supervision and administration institution under the State
Council may authorize a securities exchange in the verification and approval
of the application for listing of corporate bonds pursuant to legal terms
and legal procedures.

    Article 51  Application by a company for listing for trading for its
corporate bonds must meet the following requirements:

    (1)the time limit of the corporate bonds shall be more than one year;

    (2)the actual issuance amount of the corporate bonds shall not be
less than RMB 50 million Yuan; and

    (3)the company still meets the legal requirements for the issuance of corporate bonds at the time of application
for listing of its bonds.

    Article 52  The following documents shall be presented at the time of filing an application for listing of corporate bonds with the
securities
supervision and administration institution under the State Council:

    (1)a report on listing;

    (2)the resolution of the board of directors on the application for
listing;

    (3)articles of association of the company;

    (4)business licence of the company;

    (5)measures for the raising of corporate bonds; and

    (6)the actual amount of issuance of corporate bonds.

    Article 53  Upon verification and approval of the application for listing
for trading of corporate bonds, their issuer should present the approval
document and the relevant documents prescribed in the preceding Article
to the securities exchanges.

    The securities exchanges should, within 3 months starting from the date
of receipt of the documents prescribed in the preceding Article which have
been presented by the said bonds issuer, arrange the listing for trading
of the said bonds.

    Article 54  The issuer should, upon consent of the application for listing
for trading of corporate bonds by the securities exchanges, announce the
report on the listing of corporate bonds, the approval document and relevant
application documents for listing 5 days before the listing for trading of the corporate bonds, and place them at a designated place
for public
reference.

    Article 55  Any company that has any of the following circumstances
following the listing for trading of its corporate bonds, the listing for
trading of its corporate bonds shall be temporarily suspended according to
the decision of the securities supervision and administration institution
under the State Council:

    (1)the company has committed major illegal acts;

    (2)a major change has taken place in the company that does not conform to
the listing requirements for corporate

DECISION OF THE STATE COUNCIL ON SETTING UP BASIC MEDICAL INSURANCE SYSTEM FOR STAFF MEMBERS AND WORKERS IN CITIES AND TOWNS

Category  PUBLIC HEALTH AND MEDICINE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-12-14 Effective Date  1998-12-14  


The Decision of the State Council on Setting up Basic Medical Insurance System for Staff Members and Workers in Cities and Towns



(December 14, 1998)

    It is an objective requirement and an important guarantee for setting up
the system
of socialist market economy to speed up the reform of medical
insurance system and guarantee basic medicare for staff members and workers.
On the basis of summing-up in earnest of experiences in experiment in medical
insurance system reform at different localities in recent years, the State
Council has made a decision that the reform of medical insurance system for
staff members and workers in cities and towns shall be carried out nationwide.

    1.Task and Principle of Reform

    The main task of medical insurance system reform is to set up the staff
members’ and workers’ basic medical insurance system in cities and towns, that
is to conform to the system of socialist market economy and set up social
medical insurance system to ensure staff members’ and workers basic medical
requirements according to the bearable abilities of finance, enterprises and
individuals.

    The principle of setting up the basic medical insurance system for staff
members and workers in cities and towns is: basic medical insurance level
should fit in with the development level of productive forces in the primary
stage of socialism; all employer units and their staff members and workers in
cities and towns should join basic medical insurance and possession
jurisdiction shall be put into practice; basic medical insurance fee should
be borne jointly by employer units and staff members and workers; combination
in unified planning of society with individual accounta for basic medical
insurance funds shall be practised.

    2.Coverage and Mode of Payment  

    All employer units in cities and towns, including enterprises(state-owned
enterprises, collective enterprises, enterprises with foreign investment,
privates ventures and so on), government organs, institutions, social
organizations, people-run non-enterprise units and their staff members
and workers should join basic medical insurance. It shall be decided by the
people’s governments of provinces, autonomous regions and municipalities
directly under the Central Government whether rural and township enterprises
and their staff members and workers and owners of urban and township
individual economic organizations and their employees join basic medical
insurance.

    In principle, basic medical insurance takes the administrative areas
above prefectural level as the overall planning units (including prefectures,
municipalities, autonomous prefectures and leagues) and counties
(municipalities) can also be the overall planning units. The three
municipalities directly under the Central Government of Beijing, Tianjin
and Shanghai shall, in principle, carry out overall planning citywide
(hereinafter referred to as overall planning areas for abbreviation).
All employer units and their staff mmembers and workers have to join the
basic medical insurance in their local overall planning areas in accordance
with the principle of possession jurisdiction, and carry out the unified
policy, and practise unified raising, use and management of basic
medical insurance funds. The enterprises that extend across regions and
have greater mobility in production, such as railways, electric power and
oceangoing transport, and their staff members and workers can join basic
medical insurance in other overall planning areas in relatively
centralized ways.

    The basic medical insurance fee should be jointly paid by employer
units and staff members and workers. The rate of payment by units should be
controlled at approximately 6 percent of staff members’ and workers’ total
wages. The rate of payment by staff members and workers should be generally
controlled at 2 percent of individual wage. The rate of payment by employer
units and their staff members and workers can be correspondingly adjusted
with the development of economy.

    3.Establishment of the Overall Planning Funds of Basic Medical Insurance
and Individual Accounts

    The overall planning funds of basic medical insurance and individual
accounts should be set up.  The basic medical insurance funds should be
composed of overall planning funds and individual accounts. The basic medical
insurance fee paid by staff members and workers should be totally brought into
the individual accounts. The basic medical insurance fee paid by employer
units shall be divided into two parts: one part is used to set up overall
planning funds, the other is put under individual accounts. The proportion
put under individual accounts should generally be approximately 30 percent of
that paid by employer units. The specific percentage should be decided by the
overall planning areas in accordance with such factors as the scope pf
payment for individual accounts and the age of staff members and workers.

    The respective range of payment from overall planning funds and individual
accounts should be delimited, separate accounting conducted, and no mutual
diversion shall be allowed. The threshold standard and ceiling for
payment from overall planning funds should be defined and the threshold
payment standard shall be, in principle, controlled at approximately 10
percent of the local staff members’ and workers’ yearly average wages. The
ceiling for payment shall be controlled in principle at the level of approximately four times of local staff members’ and workers’
yearly average
wages. Medical expenses below the threshold standard for payment should be
paid from individual accounts or by individuals themselves. Medical expenses
above threshold standard for payment or below the ceiling for payment should
be mainly paid from overall planning funds, a certain percentage should be
borne by individuals. Medical expenses over the celing for payment can be
solved through commercial medical insurance and other channels.  The specific
threshold standard for payment and the ceiling for payment from overall
planning funds and the proportion of the medical expenses above threshold
standard for payment and below the ceiling for payment borne by individuals
should be decided by the overall planning areas according to the principle of
determining expenditure by revenue and balancing revenue and expenditure.

    4.Amplifying the Mechanism of Management and Supervision of Basic
Medical Insurance Funds

    Basic medical insurance funds shall be brought into specified financial
accounts for management and the special-purpose funds shall be used for the
special purpose, and no diversion shall be allowed.

    The bodies handling social insurance shall be in charge of the raising,
management and payment of basic medical insurance funds and should establish
and amplify budgeting aand final accounting rules, financial and accounting
rules and internal auditing rules. The operating expenses of the bodies
handling social insurance should not be drawn from the funds and it should
be solved through financial budgets at different levels.

    The methods of figuring interest of banks for basic medical insurance
funds are: the portion raised in the current year shall be computed in
accordance with the interest rate of current deposit; the principal and
interest of funds settled and transferred from the preceding year shall be
computed in accordance with the deposit interest of banks of lump-sum deposit
and lump-sum withdrawal for the three-month period; the sedimented funds
deposited into specified social security financial accounts shall be
computed in the light of the savings deposit interest of small deposits for
lump-sum withdrawal for the three-year period, and it should not be lower than
the level of interest rate of the said grade. The principal and interest in
individual accounts belong to the individuals and may be settled and
transferred for use and inheritance.

    Labor security and financial departments at different levels should
strengthen supervision and management of the basic medical insurance funds.  
Auditing departments should audit the revenue and expenditure and management
of bodies handling social insurance at regular intervals. Supervisory
organizations for medical insurance funds should be set up in overall
planning areas with the participation of representatives from the
government departments concerned, representatives from employer units,
representatives from medical institutions, representatives from trade unions
and relevant experts, and social supervision should be strengthened over
basic medical insurance funds.

    5.Strengthening Medical Service Management

    The scope and standards of services of basic medical insurance should be
defined. The Ministry of Labor Security shall, in conjunction with such
departments concerned as the Ministry of Public Health and the Ministry of
Finance, formulate the scope and standards of basic medical services, and the
measures for the settlement of medical expenses, compile the drug catalogue of national basic medical insurance, items of medical
treatment, standards of
medical service facilities and corresponding control measures. The departments
of labor security administration of provinces, autonomous regions and
municipalities directly under the Central Government shall, in conjunction
with the departments concerned, formulate the corresponding standards and
measures for implementation of the respective areas pursuant to the
stipulations of the state.

    Management of designated medical institutions(including hospitals of
traditional Chinese medicine) and designated drug stores shall be exercised
for basic medical insurance. The Ministry of Labor Security shall, in
conjunction with such departments concerned as the Ministry of Public Health
and the Ministry of Finance, formulate the measures for the examination and
finalization of qualifications for designated medical institutions and
designated drug stores. The bodies handling social insurance should, in
accordance with the principle of simultaneous development of Chinese and
Western medicine, taking account of both grass-roots, specialized and
comprehensive medical institutions and facilitating the staff members and
workers in seeking medical advice, take charge of defining designated
medical institutions and designated drug stores and conclude contracts
with designated medical institutions and designated drug stores to define
their respective responsibilities, rights and obligations. Competitive
mechanisms should be introduced when designated medical institutions and
designated drug stores are defined. Staff members and workers can choose
a certain number of designated medical institutions for seeking medical
advice and buying medicine, and can also buy medicine with prescriptions at a
certain number of designated drug stores. The State Administration of Drug
Supervision shall, in conjunction with the departments concerned, formulate
the measures for handling accidents of drug purchase at designated
drug stores.

    All localities should carry out the spirit of the Decision of the Central
Committee of the Communist Party of China and the State Council on Public
Health Reform and Development” ( Zhong Fa[1997] No. 3), and take vigorous
action to press ahead the reform of medical and public health system, and
enable the masses to have better medical service with less input of funds
and promote sound development of the cause of medicine and public health.  
The system that medical service and medicine are computed and managed
separately should be set up, and the competitive mechanisms of medical
service and circulation of medicine should be formed, and medical expenses
are controlled at a reasonable level; internal management of medical
institutions and drugstores should be strengthened, acts of medical services
standardized, number of staff reduced and benefit increased, and  
medical cost reduced; price of medical service should be straightened out,
and on the basis of carrying out the separate accounting and management of
medical service and medicine, reducing the proportion of the revenue of
medicine making up the total revenue of medical service, the price of medical
technical services should be reasonably enhanced; and professional and
technical training and the education on professional ethics should be stepped
up to improve medical service personnels’ quality and quality of service; the
distribution of medical institutions should be adjusted rationally, and
allocation of medical and public health resources optimized, and community
health services developed actively, and items of basic medical service in
community health service integrated into the scope of basic medical insurance.
The Ministry of Public Health shall, in conjunction with the departments
concerned, formulate the scheme of reform of medical institutions and the
relevant policy of the development of community health service. The State
Economic and Trade Commission and other departments should cooperate with each
other in earnest to do a good job of the reform of the system of circulation
of medicine.

    6.Appropriate Resolution of the Benefits of Medical Treatment for the
Personnel Concerned

    There shall be no change in the benefits of medical treatment for
honorary retirees and veteran red armymen, and medical funds shall be solved
through the original channel of funds, if there is difficulty in payment
indeed, the people’s government at the same level should help to solve.
The measures for the management of medical services for honorary retirees
and veteran red armymen should be formulated by the people’s governments of
provinces, autonomous regions and municipalities directly under the Central
Government.

    There shall be no change in the benefits for medical treatment for
disabled revolutionary armymen above Grade II Class B, the medical expenses
shall be solved through the original channel of funds and administered by
bodies handling social insurance under separate ledgers. The inadequate
portion for the payment of medical expenses should be solved by local people’s
governments.

    Retirees shall join basic medical insurance, they do not pay the
basic medical insurance premiums. The proportion of the amount
of money charged into individual accounts of retirees and the medical
expenses borne by individuals will be given appropriate preferential
consideration.

    Public servants of the state shall, on the basis of joining the basic
medical insurance, enjoy the policy of medical subsidy. Specific measures
shall be formulated separately.

    In order not to reduce the present medical consumption level for staff
members and workers in a number of specific industries and trades, and on the
basis of joining basic medical insurance, as an interim measure, it should be
allowed to set up enterprises’ additional medical insurance. Enterprises’
additional medical insurance funds within 4 percent of total wages should be
paid from staff’s welfare funds. To the portion that the welfare funds are
inadequate to pay should be listed into cost upon verification and approval
by financial departments at the same levels.

    Basic medical insurance premiums of laid-off workers of state-owned
enterprises, including both premiums paid by units and individuals should be
paid by re-employment service centers according to the base number of 60
percent of local staff members’ and workers’ average wages in the preceding
year.

    7.Strengthening Organization and Leadership

    The reform of the medical insurance system is of strong policy nature,
and it involves vast staff members’ and workers’ vital interests and it is
of vital importance to the development of the national economy and social
stability. The people’s governments at all levels should strengthen earnestly
their leadership, seek consensus of opinion, enhance awareness, and do
publicity and political and ideological work well, and make vast staff
members and workers and all walks of life of society actively support and
join the reform. All localities should, pursuant to the task, principle and
requirements of the establishment of the system of basic medcial insurance
for staff members and workers in cities and towns and in the light of actual
local conditions, meticulously implement through organization, and ensure the
stable transition from the old system to the new one.

    The work to set up the staff members’ and workers’ basic medical insurance
system in cities and towns shall be launched at the beginning of 1999 and
completed at the end of same year.  The people’s governments of provinces,
autonomous regions and municipalities directly under the Central Government
should formulate the overall planning of medical insurance system reform
according to the requirement of this Decision, and submit it to the Ministry
of Labor Security for the record. The overall planning areas should formulate
plans for the implementation of basic medical insurance according to the
requirement of the planning, and implement them upon examaination and approval
by the people’s governments of provinces, autonomous regions and
municipalities directly under the Central Government after submission.

    The Ministry of Labor Security should strengthen guidance and inspection
of the work of setting up staff members’ and workers’ medical insurance system
in cities and towns, and study and solve the problems emerging in the work in
time. The departments concerned such as the departments of finance, public
health and drug supervision and administration should participate actively in
it, coordinate closely with one another, and make joint efforts to ensure the
smooth progress of the work of the reform of staff members’ and workers’ basic
medical insurance system in cities and towns.      






CIRCULAR OF MOFTEC ON PRINTING AND DISTRIBUTING PROVISIONAL REGULATIONS CONCERNING ADMINISTRATIVE PENALTIES ON FOREIGN TRADE ENTERPRISES EVADING FOREIGN EXCHANGE AND ENGAGING IN ARBITRAGE

The Ministry of Foreign Trade and Economic Cooperation

Circular of MOFTEC on Printing and Distributing Provisional Regulations Concerning Administrative Penalties on Foreign Trade Enterprises
Evading Foreign Exchange and Engaging in Arbitrage

JiJingMaoJiCaiFa [1998] No.713

October 9, 1998

Foreign trade and economic commissions (departments, bureaus) of provinces, autonomous regions, municipalities directly under the
Central Government and municipalities separately listed on the State plan (including Foreign Trade Development Bureau of Shengzhen),
Foreign Trade Centers, Companies Directly under Commissions and Ministries:

In order to crack down on such illegal acts as evading foreign exchange and engaging in arbitrage and maintain a normal order of financial
and foreign exchange administration and import and export administration, Provisional Regulations of MOFTEC concerning Administrative
Penalty on Foreign Trade Enterprises Evading Foreign Exchange and Engaging in Arbitrage are laid down in accordance with the Circular
of the State Council on Strengthening Control of Foreign Exchange and Foreign Debt and Launching Inspection on Foreign Exchange and
Foreign Debt. Now it is printed and distributed to you. Please enforce them earnestly and do a good job of publicity. These provisional
regulations shall enter into force from October 1, 1998. Attachment:Provisional Regulations of MOFTEC Concerning Administrative Penalties on Foreign Trade Enterprises Evading Foreign Exchange and Engaging
in Arbitrage

Article 1

In order to crack down on such illegal acts as evading foreign exchange and engaging in arbitrage, these regulations are laid down
in accordance with the Administrative Law of P.R.C, the Foreign Trade Law of P.R.C and the Administrative Measure of Foreign Exchange
of P.R.C and other relevant laws.

Article 2

Evading foreign exchange and enganing in arbitrage acts in the regulations refer to those acts listed in the Administrative Measure
of Foreign Exchange of P.R.C and ratified by administrative authorities of foreign exchange.

(1)

Evading foreign exchange acts are the following:

Depositing foreign exchange abroad without authorization, violating the State stipulation; not selling foreign exchange to appointed
foreign exchange banks in accordance with the State stipulation; remitting foreign exchange abroad or carrying it abroad in violation
of the State stipulation; carrying or remitting foreign currency certificaties and securites abroad without authorization of administrative
authorities of foreign exchange and other acts of evading foreign exchange.

(2)

Arbitrage acts are the following:

Paying for goods by RMB or products instead of by foreign exchange in violation of the State stipulations; paying by RMB for expenses
of others who give foreign exchange in turn; investing with RMB or goods and materials purchased in China by overseas investors without
authorization of administrative authorities of foreign exchange; purchasing foreign exchange by cheating from appointed foreign exchange
banks with false or invalid certificates, contracts, documents and other illegal acts of arbitrage.

Article 3

Foreign trade enterprises in these regulations refer to foreign trade corporations (including joint ventures of foreign trade), import
and export producting enterprises and scientific research institutions, business and material supply enterprises with managerial
authority of import and export, enterprises with foreign investment, overseas projects contracting enterprises, processing trade
enterprises, border trade enterprises and tourism trade enterprises.

Article 4

Administrative penalties on foreign trade enterprises evading foreign exchange and engaging in arbitrage are the following:

Giving disciplinary warning, suspending or canceling managerial authority of foreign trade and so on.

Article 5

Foreign trade enterprises decided by administrative authorities of foreign exchange that they are involved in evading foreign exchange
or engaging in arbitrage, will be punished in accordance with these provisional regulations.

Article 6

MOFTEC or foreign trade administrative organizations authorized by MOFTEC at provincial level shall impose the following administrative
penalties in consideration of seriousness of the circumstances of the basis of administrative penalties imposed by administrative
authorities of foreign exchange in accordance with law.

(1)

suspending managerial authority of foreign trade for three months on enterprises involving arbitrage value below US $ 500 thousand,
to enterprises with foreign investment among them, notifying the Customs of suspending their import right for three months.

(2)

suspending managerial authority of foreign trade for six months on enterprises involving arbitrage value over US $ 500 thousand (including
US $ 500 thousand) and less than US $ 1 million, for enterprises with foreign investment among them, notifying the Customs of suspending
their import right for six months.

(3)

canceling managerial authority on enterprises involving arbitrage value over US $ 1 million (including US $ 1 million), for enterprises
with foreign investment among them, notifying the Customs of ceasing their business.

Article 7

For foreign trade enterprises which make loss for our country because their operations in agency import business are not in compliance
with normal trade procedures or their inattentive management lends to being cheated into arbitrage, MOFTEC and foreign trade administrative
organizations authorized by MOFTEC at provincial level shall impose the following administrative penalties on them:

(1)

warning and being put on a circular of criticism on enterprises involving loss value below US $ 1 million.

(2)

suspending managerial authority of foreign trade for three months on enterprises involving loss value over US $ 1 million (including
US $ 1 million) and less than US $ 3 million.

(3)

suspending managerial authority of foreign trade for six months on enterprises involving loss value over US $ 3 million (including
US $ 3 million) and less than US $ 5 million.

(4)

canceling managerial authority of foreign trade on enterprises involving loss value over US $ 5 million (including US $ 5 million)

Article 8

MOFTEC or foreign trade administrative organizations authorized by MOFTEC at provincial level shall impose the following administrative
penalties on enterprises evading foreign exchange in consideration of seriousness of the circumstances on the basis of administrative
penalties imposed by administration authorities of foreign exchange in accordance with law.

(1)

warning and being put on a circular of critcism on enterprises involving value of evasion of foreign exchange below US $ 1 million.

(2)

suspending managerial authority of foreign trade or of individual commodities, individual practices for three months on enterprises
involving value of evasion of foreign exchange over US $ 1 million (including US $ 1 million) and less than US $ 3 million. For enterprises
with foreign investment among them, notifying the Customs of suspending their export right or that of individual commodities, individual
business export right for three months.

(3)

suspending managerial authority of foreign trade or of individual commodities, individual practices for six months on enterprises
involving value of evasion of foreign exchange over US $ 3 million (including US $ 3 million) and less than US $ 5 million. To enterprises
with foreign investment among them, notifying the Customs of suspending their export right or that of individual commodities, individual
business export right for three months.

(4)

canceling managerial authority of foreign trade on enterprises involving value of evasion of foreign exchange over US $ 5 million,
to enterprises with foreign investment among them, notifying the Customs of ceasing their business. Before the Customs resume handling
their import and export, when enterprises export their products, they still shall carry out commitments in accordance with the ratio
stipulated by the contract and solution. They can export through foreign trade agency.

Article 9

MOFTEC or foreign trade administrative organizations authorized by MOFTEC at provincial level shall impose disciplinary warning on
enterprises whose cancellation after verification of import and export can not reach the ratio stipulated by administrative authorities
of foreign exchange and notify them. Penalty of suspending managerial authority of foreign trade or of individual commodities, individual
practices for three months shall be imposed on enterprises whose ratios of cancellation and verification of export income in terms
of foreign exchange do not reach 50%. To enterprises with foreign investment among them, the Customs shall be notified of suspending
their export right or that of individual commodities, individual practices for three months.

Article 10

To parties involving in evading foreign exchange and engaging in arbitrage and persons in charge of enterprises, administrative organizations
shall impose penalties on them from demerits to discharging them from public employment according to seriousness of the circumstances.
Any person who commits crime shall be prosecuted, according to law, by the judicial organs in respect of criminal responsibility.

Article 11

Before MOFTEC or foreign trade administrative organizations authorized by MOFTEC at provincial level decide upon penalty of suspending
or canceling managerial authority of foreign trade on enterprises evading foreign exchange and engaging in arbitrage, they shall
imform enterprises that enterprises have right to ask for hearing. MOFTEC or foreign trade administrative organizations authorized
by MOFTEC shall hold hearing for enterprises asking for hearing. After hearing is over, MOFTEC or foreign trade administrative organizations
authorized by MOFTEC shall resolve whether administrative penalty will be given or not in accordance with the relevant law, decree
and conditions of hearing.

Article 12

MOFTEC or foreign trade administrative organizations authorized by MOFTEC shall distribute resolve notice of penalty to enterprises
and send it to administrative authorities of foreign exchange within 3 workdays after the decision of administrative penalty is made;
if distribution is impossible, please distribute through announcement.

Article 13

If enterprises disagreement with administrative penalty decision, they can apply for administrative reconsideration to Administrative
Review Commission of MOFTEC in accordance with Administrative Review Measure, or take administrative proceedings in accordance with
Administrative Procedure.

Article 14

The right to interpret these Provisions resides in MOFTEC.

Article 15

These provisions shall go into effect on October 1, 1998.

Attachment: Interpretation of the Supreme People’s Court on Matters of Specific Application of Law for Cases of Purchasing Foreign
Exchange by Cheating and Trading Foreign Exchange Illegally (omitted)



 
The Ministry of Foreign Trade and Economic Cooperation
1998-10-09

 







AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF BARBADOS CONCERNING THE ENCOURAGEMENT AND RECIPROCAL PROTECTION OF INVESTMENTS

AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF BARBADOS CONCERNING THE ENCOURAGEMENT AND
RECIPROCAL PROTECTION OF INVESTMENTS

The Government of the People’s Republic of China and the Government of Barbados (hereinafter referred to as the Contracting Parties).

Desiring to create favourable conditions for greater investment by investors in the territories of the Contracting Parties;

Recognising that the reciprocal encouragement, promotion and protection of such investments will be conducive to the stimulation of
individual business initiative and will increase prosperity in both States;

Desiring to intensify the economic co-operation of both States on the basis of equality and mutual benefit;

Hereby agree as follows:

Article 1

Definitions

For the purposes of this Agreement:

1.

The term “investment” means every kind of asset invested by investors of one Contracting Party in accordance with the laws and regulations
of the other Contracting Party in the territory of the latter, and in particular, though not exclusively, includes:

(a)

movable and immovable property and any other property rights such as mortgages, liens and pledges;

(b)

shares, stocks, debentures and any other kind of participation in companies;

(c)

claims to money or to any other performance under contract having an economic value;

(d)

intellectual property rights, goodwill, technical processes and know-how; and

(e)

concessions conferred by law or under contract, including concessions to search for or exploit natural resources.

2.

The term “investors” means

(a)

in respect of the People’s Republic of China:

(i)

natural persons who have the nationality of the People’s Republic of China in accordance with its laws;

(ii) economic entities established in accordance with the laws of the People’s Republic of China and domiciled in the territory of
the People’s Republic of China;

(b)

in respect of Barbados:

(i)

natural persons who have the nationality of Barbados in accordance with its laws; or

(ii)any enterprise incorporated or duly constituted in accordance with the applicable laws of Barbados and domiciled in the territory
of Barbados.

Who makes an investment in the territory of the other Contracting Party.

3.

The term “domiciled”

(a)

in the People’s Republic of China means having the economic entities effectively managed and controlled in that territory; and

(b)

in Barbados means having the enterprise effectively managed and controlled in that territory

4.

The term “local administrative review procedure” means the administrative procedures through which an investor of a Contracting Party
may obtain a local administrative remedy in the territory of the other Contracting party.

5.

The term “returns” means the amounts yielded by investments such as profits, dividends, interest, royalties or other legitimate income.

Article 2

Promotion of Investments

1.

Each Contracting Party shall encourage investors of the other Contracting Party to make investments in its territory and admit such
investments in accordance with its laws and regulations.

2.

Each Contracting Party shall grant assistance in and provide facilities for obtaining visas and work permits to nationals of the other
Contracting Party to or in the territory of the former in connection with activities associated with such investments.

Article 3

Protection of Investments

1.

Investments and activities associated with investments of investors of either Contracting Party shall be accorded fair and equitable
treatment and shall enjoy protection in the territory of the other Contracting Party.

2.

The treatment and protection referred to in paragraph 1 of this Article shall not be less favorable than that accorded to investments
and activities associated with such investments of investors of a Third State.

3.

The treatment and protection as mentioned in paragraph 1 and 2 of this Article shall not include preferential treatment accorded by
the other Contracting Party to investments of investors of a Third State based on customs union, free trade zone, economic union,
agreement relating to avoidance of double taxation or for facilitating frontier trade.

Article 4

Expropriation

1.

Neither Contracting Party shall expropriate, nationalize or take similar measures (hereinafter referred to as “expropriation”) against
investments of investors of the other Contracting Party in its territory unless the expropriation is done:

(a)

in the public interests;

(b)

in accordance with domestic legal procedure.

(c)

without discrimination;

(d)

against compensation;

2.

The compensation mentioned in paragraph 1 (d) of this Article shall be equivalent to the market value of the expropriated investments
immediately before the expropriation or impending expropriation became public knowledge. Where the market value cannot be readily
ascertained, the compensation shall be determined in accordance with generally recognized principles of valuation taking into account,
inter alia, the capital invested, depreciation, capital already repatriated, replacement value and other relevant factors. The compensation
shall include interest at a current commercial lending rate applicable to the currency in which the investment was originally made
from the date of expropriation until the date of payment, shall be made without unreasonable delay, be effectively realizable and
be freely transferable.

3.

Any investor affected by the expropriation shall have a right under the law of the Contracting Party making the expropriation, to
prompt review by a judicial or other independent authority of that Contracting Party, of his or its case and of the valuation of
his or its investment in accordance with the principles set out in paragraph 2 of this Article.

4.

Where a Contracting Party expropriates the assets of a company which was incorporated or constituted under the law in force in any
part of its own territory, and in which investors of other Contracting Party own shares, it shall ensure that the provisions of paragraphs
1 to 3 of this Article are applied to the extent necessary to guarantee reasonable compensation in respect of their investments to
such investors of the other Contracting Party who are owners of those shares.

Article 5

Compensation for Losses

Investors of one Contracting Party who suffer losses in respect of their investments in the territory of the other Contracting Party
owing to war, state of national emergency, insurrection, riot or other similar event, shall be accorded by the latter Contracting
Party, if it takes relevant measures, treatment no less favourable than that accorded to investors of any Third State.

Article 6

Guarantee

1.

Each Contracting Party shall, subject to its laws and regulations, guarantee investors of the other Contracting Party the transfer
of investments and returns held in its territory, including:

(a)

profits, dividends, interest and other legitimate income;

(b)

amounts from total or partial liquidation of investments;

(c)

payments made pursuant to a loan agreement in connection with investment;

(d)

royalties paid in respect of matters referred to in paragraph 1 (d) of Article 1 ;

(e)

payments for technical assistance or technical service and management fees;

(f)

payments in connection with projects on contract;

(g)

earnings of nationals of the other Contracting Party who work in connection with an investment in its territory.

2.

The transfers mentioned above shall be made at the prevailing exchange rate of the Contracting party accepting the investment on the
date of transfer.

Article 7

Principle of Subrogation

Where one Contracting Party or its Agency has granted any financial guarantee against non-commercial risks in regard to an investment
by an investor in the territory of the other Contracting Party, the latter shall recognize the transfer of the rights or claims of
the investor to the former Contracting Party or its Agency by virtue of the Principle of Subrogation when payment has been made under
this guarantee by the former Contracting Party or its Agency.

Article 8

Disputes Concerning Interpretation or Application of Agreement

1.

Any dispute between the Contracting Parties concerning the interpretation or application of this Agreement shall, as far as possible,
be settled by consultation through the diplomatic channel.

2.

If a dispute cannot thus be settled within six months, it shall, upon the request of either Contracting Party, be submitted to an
arbitral tribunal.

3.

The arbitral tribunal shall comprise three arbitrators. Within two months from the date on which either Contracting party receives
written notice of a request for arbitration from the other Contracting Party, each Contracting Party shall appoint one arbitrator.
The two arbitrators shall, within a further period of two months, together select a third arbitrator who is a national of a Third
State which has diplomatic relations with both Contracting parties. The third arbitrator shall be appointed by the two Contracting
Parties as Chairman of the arbitral tribunal.

4.

If the arbitral tribunal has not been constituted within four months from the date of the receipt of the written notice for arbitration,
either Contracting Party may, in the absence of any other agreement, invite the President of the International Court of Justice to
appoint the arbitrator(s) who has or have not yet been appointed. If the President of the Court is a national of either Contracting
Party or is otherwise prevented from discharging the said function, the next most senior member of the International Court of Justice
who is not a national of either Contracting Party, shall be invited to make the necessary appointments.

5.

The arbitral tribunal shall determine its own procedure. The tribunal shall reach its decision in accordance with the provisions of
this Agreement and the principles of international law recognised by both Contracting Parties.

6.

The tribunal shall reach its decision by a majority of votes. The decision shall be final and binding on both Contracting Parties.
The tribunal shall, upon the request of either Contracting Party, explain the reasons for its decision.

7.

Each Contracting Party shall bear the costs of its appointed arbitrator and of its representation in arbitral proceedings. The relevant
costs of the Chairman and the tribunal shall be borne in equal parts by the Contracting Parties.

Article 9

Settlement of Investment Disputes

1.

Any dispute concerning an investment between an investor of one Contracting Party and the other Contracting party shall, as far as
possible, be settled amicably through negotiations between the investor and the other Contracting Party.

2.

If any dispute referred to in paragraph 1 of this Article cannot be settled within six months following the date on which the written
notification of the dispute has been received by one party from the other party to the dispute, the investor shall have the right
to choose to submit the dispute for resolution by international arbitration to one of the following for a:

(a)

the International Centre for Settlement of Investment Disputes (ICSID) under the Convention on the Settlement of Investment Disputes
between States and Nationals of Other States done at Washington, March 18 1965; or

(b)

an arbitral tribunal to be set up under the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL).
The appointing authority under the said rules shall be the Secretary-General of ICSID;

3.

Notwithstanding paragraph 2, the Contracting Party may require the investor to exhaust the local administrative review procedure before
the submission of the dispute to international arbitration. The provision of this paragraph shall not apply if the investor has resorted
to the procedure specified in paragraph 10 of this Article.

4.

The arbitral tribunal referred to in paragraph 2(b) of this Article shall, with respect to the procedure, follow the Arbitration Rules
of UNCITRAL.

5.

Any arbitration under paragraph 2 shall be held in a State that is a party to the United Nations Convention on Recognition and Enforcement
of Foreign Arbitral Awards, done at New York, June 10, 1958.

6.

The arbitral tribunal shall decide the issues in dispute in accordance with the provisions of this Agreement, the law of the Contracting
Party accepting the investment and applicable rules of international law.

7.

Any arbitral awards rendered pursuant to this Article shall be final and binding on the parties to the dispute. Each Contracting Party
shall carry out without delay the provisions of the award and provide in its territory for the enforcement of the award.

8.

In any proceeding involving an investment dispute, a Contracting party shall not assert as a defence, counterclaim, right of set-off
or for any other reason that indemnification or other compensation for all or part of the alleged damages has been received or will
be received pursuant to an insurance or guarantee contract; but the Contracting Party may require written consent that the insurer
or guarantor who has paid or will pay the compensation to the investor agrees that the investor exercise the right of claim for compensation
under the procedure specified by the provisions of this Article.

9.

Each party to the dispute shall bear the cost of its appointed member of the tribunal and of its representation in the proceedings.
The cost of the appointed Chairman and the remaining costs shall be borne in equal parts by the parties to the dispute.

10.

The investors of each Contracting Party shall have a right of access to the competent courts of the other Contracting Party for exercising
adjudicatory authority in any dispute. If the investor has resorted to the procedure specified in this paragraph, paragraph 2 of
this Article shall not apply, unless the court refers the matter to international arbitration.

Article 10

Application of Other Rules

If the treatment to be accorded by one Contracting Party in accordance with its laws and regulations to investments or activities
associated with such investments of investors of the other Contracting Party is more favourable than the treatment provided for in
this Agreement, the more favourable treatment shall be applicable.

Article 11

Application of Agreement

This Agreement shall apply to investments, which are made prior to or after its entry into force by investors of either Contracting
Party in accordance with the laws and regulations of the other Contracting Party in the territory of the latter.

Article 12

Meetings

1.

The representatives of the Contracting Parties shall hold meetings if the circumstances so warrant, for the purpose of:

(a)

reviewing the implementation of this Agreement;

(b)

exchanging information about legal matters and investment opportunities;

(c)

resolving disputes arising out of investments;

(d)

forwarding proposals on promotion of investment; and

(e)

studying other issues in connection with investments.

2.

Where the Contracting Parties agree to consultation on any matters referred to in paragraph 1 of this Article, the other Contracting
Party shall give prompt response and the consultation shall be held in a mutually agreed location.

Article 13

Entry into Force

1.

This Agreement shall enter into force on the first day of the following month after the date on which both Contracting Parties have
notified each other in writing that their respective internal legal procedures have been fulfilled, and shall remain in force for
a period of ten years.

2.

This Agreement shall continue in force if either Contracting Party fails to give a written notice to the other Contracting Party to
terminate this Agreement one year before the expiration specified in paragraph 1 of this Article.

3.

After the expiration of the initial ten year period, either Contracting Party may at any time thereafter terminate this Agreement
by giving at least one year’s written notice to the other Contracting Party.

4.

With respect to investments made prior to the date of termination of this Agreement, the provisions of Articles 1 to 12 shall continue
to be effective for a further period of ten years from such date of termination.

In witness whereof, the duly authorized representatives of their respective Governments have signed this Agreement.

Done in duplicate at Bridgetown on the 20th day of July, 1998 in the Chinese and English languages, both texts being equally authentic

Qian Qichen￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿Owen S.Arthur

Vice-Premier of the State Council￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿Prime Minister

For the Government of￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿For the Government of

The People’s Republic of China￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿Barbados



 
The Government of the People’s Republic of China
1998-07-20

 







REGULATIONS ON EXPORT CONTROL OF NUCLEAR DUAL-USE ITEMS AND RELATED TECHNOLOGIES

Category  FOREIGN TRADE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-06-10 Effective Date  1998-06-10  


Regulations of the People’s Republic of China on Export Control of Nuclear Dual-Use Items and Related Technologies


Annex: THE NUCLEAR DUAL-USE ITEMS AND RELATED TECHNOLOGIES EXPORT
1.INDUSTRIAL EQUIPMENT
2.MATERIALS
3. URANIUM ISOTOPE SEPARATION EQUIPMENT AND COMPONENTS (Other Than
4.HEAVY WATER PRODUCTION PLANT RELATED EQUIPMENT (Other than the Nuclear
5. IMPLOSION SYSTEMS DEVELOPMENT EQUIPNFENT
6. EXPLOSIVES AND RELATED EQUIPMENT
7. NUCLEAR TESTING EQUIPMENT AND COMPONENTS
8. OTHER
Notes:

(Adopted at the Fourth Executive Meeting of the State Council on June

1, 1998, promulgated by Decree No.245 of the State Council of the People’s
Republic of China on June 10, 1998, and effective as of the date of
promulgation)

    Article 1  These Regulations are formulated for the purpose of
strengthening the export control of nuclear dual-use items and related
technologies, preventing proliferation of nuclear weapons, promoting
international cooperation in peaceful utilization of nuclear energy, and
safeguarding the State security and social and public interests.

    Article 2  The export of nuclear dual-use items and related technologies
referred to in these Regulations mean the export for trade, gifts to and
exhibitions in foreign countries and regions, as well as scientific and
technological cooperation with and assistance to foreign countries and
regions that involve equipment, materials and related technologies outlined
in the Nuclear Dual-Use Items and Related Technologies Export Control
List (hereinafter referred to as the Control List) attached to these
Regulations.

    Article 3  The State shall tightly control the export of nuclear dual-use
items and related technologies, and strictly perform its international
obligations with regard to non-proliferation of nuclear weapons.

    Article 4  The export of nuclear dual-use items and related technologies
shall comply with the provisions of  relevant laws and administrative
regulations of the State as well as these Regulations, and may not jeopardize
the State security or social and public interests.

    Article 5  The State shall practice a licensing control system for the
export of nuclear dual-use items and related technologies.

    Article 6  The following principles shall be observed in licensing the
export of nuclear dual-use items and related technologies:

    (1) The receiving party shall guarantee against using for nuclear
explosion purposes the China-supplied nuclear dual-use items and related
technologies;

    (2) The receiving party shall guarantee against using China-supplied
nuclear dual-use items and related technologies in nuclear facilities which
are not subject to safeguard of and supervision from the International Atomic
Energy Agency;

    (3)The receiving party shall guarantee against transferring, without
permit of the Chinese Government, China-supplied nuclear dual-use items and
related technologies to a third party.

    Article 7  Those engaging in the export of nuclear dual-use items and
related technologies shall register themselves with the Ministry of Foreign
Trade and Economic Cooperation. Without such registration, no enterprise or
individual may engage in the export of nuclear dual-use items and related
technologies. The specific measures for such registration shall be formulated
by the Ministry of Foreign Trade and Economic Cooperation.

    Article 8  Anyone who intends to export nuclear dual-use items and
related technologies outlined in the Control List shall apply to the Ministry
of Foreign Trade and Economic Cooperation, fill in the export application
form for nuclear dual-use items and related technologies (hereinafter
referred to as the export application form) and submit the following
documents:

    (1)identification of the applicant’s legal representative, principal
managers and persons in charge;

    (2)a copy of the contract or agreement;

    (3)technological specifications of the nuclear dual-use items and related
technologies;

    (4)the certificate of the end-user;

    (5)the guarantee documents provided for in Article 6 of these Regulations;

    (6)other documents required by the Ministry of Foreign Trade and Economic
Cooperation.

    Article 9  Where the nuclear dual-use items and related technologies to
be exported are for exhibition or for Chinese party’s own use abroad and will
be re-imported thereafter within a specified time limit, the related
documents provided for in Article 8 of these Regulations may be exempted
from being submitted after examination and approval by the Ministry of
Foreign Trade and Economic Cooperation when making the application.

    Article 10  The applicant shall truthfully fill in the export application
form.

    The export application form shall be uniformly produced by the Ministry
of Foreign Trade and Economic Cooperation.

    Article 11  Upon receiving the export application form and the documents
provided for in Article 8 of these Regulations, the Ministry of Foreign Trade
and Economic Cooperation shall, within 45 working days, examine and approve
or disapprove the application jointly with the State atomic energy authority
or jointly with the State atomic energy authority and consulting with the
relevant departments of the State Council, or with the Ministry of Foreign
Affairs if the case involves the foreign policy.

    Article 12  Where the export  of nuclear dual-use items and related
technologies  has important impact on the State security, social and public
interests or foreign policy, the Ministry of Foreign Trade and Economic
Cooperation shall submit it to the State Council for approval.

    Those submissions to the State Council for approval shall not be subject
to the limitation of time period stipulated in Article 11 of these Regulations.

    Article 13  When an export application of nuclear dual-use items and
related technologies is approved after examination, the Ministry of Foreign
Trade and Economic Cooperation shall issue an export license for nuclear
dual-use items and related technologies  (hereinafter referred  to as the
export license), and notify the Customs in writing.

    Article 14  An export license holder who intends to change the nuclear
dual-use items and related technologies originally applied for export shall
turn in the original export license and file a new application and obtain
a new export license according to the provisions of these Regulations.

    Article 15  When exporting nuclear dual-use items and related
technologies, the exporter shall submit the export license to the Customs,
complete the Customs procedures and be subjected to the Customs control in
accordance with the provisions of the Customs Law.

    Article 16  Where the receiving party contravenes the guarantees made
according to the provisions of Article 6 of these Regulations or where
a danger of nuclear proliferation appears, the Ministry of Foreign Trade
and Economic Cooperation shall, after consulting with the Ministry of Foreign
Affairs and the State atomic energy authority, suspend or revoke the export
license already granted and notify the Customs in writing for execution.

    Article 17  Upon approval of the State Council, the Ministry of Foreign
Trade and Economic Cooperation may,  jointly with the relevant departments
of the State Council,  temporarily decide to exercise export control on
specific nuclear dual-use items and related technologies other than those
outlined in the Control List according to the provisions of these Regulations.

    The export of specific nuclear dual-use items and related technologies
provided for in the preceding paragraph shall be licensed according to the
provisions of these Regulations.

    Article 18  Anyone who, in violation of the provisions of these
Regulations, exports nuclear dual-use items and related technologies, shall
be investigated for his criminal liability according to law if a crime is
constituted, or punished according to the relevant provisions of the Foreign
Trade Law and the Customs Law if a crime is not constituted.

    Article 19  Anyone who counterfeits, alters, sells or buys the export
license shall be investigated for his legal liability according to law.

    Article 20  Any State functionary exercising control over the export of
nuclear dual-use items and related technologies who neglects his duty, seeks
personal interests or commits illegalities for personal gains or by
fraudulent means or abuses his power, shall be investigated for his criminal
liability according to law if a crime is constituted, or be given an
administrative sanction according to law if a crime is not constituted.

    Article 21  In light of real situation, the Ministry of Foreign Trade and
Economic Cooperation, jointly with the State atomic energy authority and
relevant departments of the State Council, may adjust the Control List and
submit it to the State Council for approval before implementation.

    Article 22  Where an international treaty that the People’s Republic of
China has concluded or acceded to contains provisions different from those
of these Regulations, the provisions of the international treaty shall apply,
unless the provisions are those on which the People’s Republic of China has
declared reservations.

    Article 23  These Regulations shall enter into force as of the date of
promulgation.

Annex: THE NUCLEAR DUAL-USE ITEMS AND RELATED TECHNOLOGIES EXPORT
CONTROL LIST
1.INDUSTRIAL EQUIPMENT

    1.1. Flow-forming machines and spin-forming machines capable of
flow-forming functions, and mandrels, as follows, and specially designed
software therefor:

    (a) (i) Having three or more rollers (active or guiding); and

        (ii) According to the manufacturer’s technical specification can be
equipped with “numerical control” units or a computer control;

    (b) Rotor-forming mandrels designed to form cylindrical rotors of inside
diameter between 75 mm (3 in.) and 400 mm (16 in.).

    Note: This entry includes machines which have only a single roller
designed to deform metal plus two auxiliary rollers which support the
mandrel, but do not participate directly in the deformation process.

    1.2.”Numerical control” units, “numerical controlled” machine tools, and
specially designed “software” as follows:

    (a) Note : For “Numerical control” units controlled by its associated
software, see section (c)(2).

    (b) Machine tools, as follows, for removing or cutting metals, ceramics,
or composites, which, according to the manufacturer’s technical
specifications, can be equipped with electronic devices for simultaneous
“contouring control” in two or more axes:

    (1) Machine tools for turning, that have “positioning accuracies” with
all compensations available less (better) than 0.006 mm along any linear
axis (overall positioning) for machines capable of machining diameters
greater than 35 mm.

    Note: Bar machines (Swissturn), limited to machining only bar feed thru.
are excluded if maximum bar diameter is equal to or less than 42 mm and there
is no capability of mounting chucks. Machines may have drilling and/or
milling capabilities for machining parts with diameters less than 42 mm.

    (2) Machine tools for milling, having any of the following
characteristics:

    (a) “Positioning accuracies” with all compensations available are less
(better) than 0.006 mm along any linear axis (overall positioning); or

    (b) Two or more contouring rotary axes.

    Note: This does not control milling machines having the following
characteristics:

    (a) X-axis travel greater than 2 m; and

    (b) Overall “positioning accuracy” on the x-axis more (worse) than
0.030 mm.

    (3) Machine tools for grinding, having any of the following
characteristics:

    (a) “Positioning accuracies” with all compensations available are less
(better) than 0.004 mm along any linear axis (overall positioning); or

    (b) Having two or more contouring rotary axes.

    Note: The following grinding machines are excluded:

    (a) Cylindrical external, internal, and external-internal grinding
machines having all the following characteristics:

    (1) Limited to cylindrical grinding

    (2) A Maximum workpiece outside diameter or length of 150 mm

    (3) Not more than two axes that can be coordinated simultaneously for
“contouring control”; and

    (4) No contouring axis

    (b) Jig grinders with axes limited to x, y, c, and a, where c axis is
used to  maintain the grinding wheel normal to the work surface, and the
a axis is configured to grind barrel cams.

    (c) Tool or cutter grinding, machines with “software” specially designed
for the production of tools or cutters; or

    (d) Crankshaft or camshaft grinding machines.

    (4) Non-wire type Electrical Discharge Machines (EDM) that have two or
more contouring rotary axes and that can be coordinated simultaneously for
“contouring control”.

    Note: Guaranteed “Positioning accuracy” levels instead of individual test
protocols may be used for each machine tool model using the agreed ISO test
procedure.

    Technical Notes:

    1. Not counted in the total number of contouring rotary axes are
secondary parallel contouring rotary axes the center line of which is
parallel to the primary rotary axis.

    2. Rotary axes do not necessarily have to rotate over 360 degrees. A
rotary axis can be driven by a linear device, e.g., a screw or
a rack-and-pinion.

    (c) “Software”

    (1) “Software” specially designed or modified for the “development”,
“production”, or “use” of equipment controlled by subcategories (a) or
(b) above.

    (2) “Software” for any combination of electronic devices or system
enabling such device(s) to function as a “numerical control” unit capable of
controlling 5 or more interpolating axes that can be coordinated
simultaneously for “contouring control”.

    Note 1: – “Software” is controlled whether exported separately or
residing in a “numerical control” unit or any electronic device or system.

    Note 2: – “Software” specially designed or modified by the manufacturers
of the control unit or machine tool to operate an uncontrolled machine tool
is not controlled.

    1.3. Dimensional inspection machines, devices, or systems, as follows,
specially designed software therefor.

    (a) Computer controlled or numerically controlled dimensional inspection
machines having both of the following characteristics:

    (1) two or more axes; and

    (2) a one-dimensional length “measurement uncertainty” equal to or less
(better) than (1.25+ L/1000) m/1000000 tested with a probe of an “accuracy”
of less (better) than 0.2 m/1000000 (L is the measured length in millimeters);

    (b) Linear and angular displacement measuring devices, as follows:

    (1) linear measuring instruments having any of the following
characteristics:

    (i) non-contact type measuring systems with a “resolution” equal to or
less (better) than 0.2 m/1000000 within a measuring range up to 0.2 mm;

    (ii) linear variable differential transformer (LVDT) systems having both
of the following characteristics:

    (A) “linearity” equal to or less (better) than 0.1% within a measuring
range up to 5 mm; and

    (B) drift equal to or less (better) than 0.1% per day at a standard
ambient test room temperature +-1K; or

    (iii) measuring systems that have both of the following characteristics:

    (A) contain a “laser”, and

    (B) maintain for at least 12 hours, over a temperature range of +-1K
around a standard temperature and a standard pressure:

    1) a “resolution” over their full scale of 0.1 m/1000000 or better; and

    2) with a “measurement uncertainty” equal to or less (better) than
(0.2+L/2000) m/1000000 (L is the measured length in millimeters);

    except measuring interferometer systems, without closed or open loop
feedback. containing a “laser” to measure slide movement errors of machine
tools, dimensional inspection machines, or similar equipment;

    (2) angular measuring instruments having an “angular position deviation”
equal to or less (better) than 0.00025′;

    Note: The sub-item (b) (2) of this item does not control optical
instruments, such as autocollimators, using collimated light to detect
angular displacement of a mirror.

    (c) Systems for simultaneously linear-angular inspection of hemishells,
having both of the following characteristics:

    (1) “measurement uncertainty” along any linear axis equal to or less
(better) than 3.5 m/1000000 per 1 mm; and

    (2) “angular position deviation” equal to or less than 0.02′.

    Note: Specially designed software for the systems described in paragraph
(c) of this item includes software for simultaneous measurements of wall
thickness and contour.

    Technical Notes:

    1. “Measurement uncertainty”

    — The characteristic parameter which specifies in what range around the
output value the correct value of the measurable variable lies with
a confidence level of 95%. It includes the uncorrected systematic deviations,
the uncorrected backlash, and the random deviations.

    2. “Resolution”

    — The least increment of a measuring device; on digital instruments, the
least significant bit.

    3. “Linearity”

    –(Usually measured in terms of non linearity) is the maximum deviation
of the actual characteristic (average of upscale and downscale readings),
positive or negative from a straight line so positioned as to equalize and
minimize the maximum deviations.

    4. “Angular position deviation”

    — The maximum difference between angular position and the actual, very
accurately measured angular position after the workpiece mount of the table
has been turned out of its initial position.

    1.4. Vacuum or controlled environment (inert gas) induction furnaces
capable of operation above 850 centigrade and having induction coils 600 mm
(24 in.) or less in diameter, and designed for power inputs of 5 kW or more;
and power supplies specially designed therefor with a specified power output
of 5 kW or more.

    Technical Note: This entry does not control furnaces designed for the
processing of semiconductor wafers.

    1.5.”Isostatic presses” capable of achieving a maximum working pressure
of 69 MPa or greater having a chamber cavity with an inside diameter in
excess of 152 mm and specially designed dies, molds, controls or “specially
designed software” therefor.

    Technical Notes:  

    (1) The inside chamber dimension is that of the chamber in which both the
working temperature and the working pressure are achieved and does not
include fixtures. That dimension will be the smaller of either the inside
diameter of the pressure chamber or the inside diameter of the insulated
furnace chamber, depending on which of the two chambers is located inside
the other.

    (2) “Isostatic Presses”

    — Equipment capable of pressurizing a closed cavity through various
media (gas, liquid, solid particles, etc.) to create equal pressure in all
directions within the cavity upon a workpiece or material.

    1.6.”Robots” or “end-effectors” having either of the following
characteristics; and “specially designed software” or specially designed
controllers therefor:

    (a) Specially designed to comply with national safety standards
applicable to handling high explosives (for example, meeting electrical code
ratings for high explosives); or

    (b) Specially designed or rated as radiation hardened to withstand
greater than 5 x 10^4 grays (Silicon) (5 x 10^6 rad (Silicon)) without
operational degradation.

    Technical Notes:

    (1) “Robot”

    A manipulation mechanism, which may be of the continuous path or of the
point-to-point variety, may use “sensors,” and has all of the following
characteristics:

    (a) is multifunctional;

    (b) is capable of positioning or orienting material, parts, tools, or
special devices through variable movements in three -dimensional space;

    (c) incorporates three or more closed or open loop servo-devices which
may include stepping motors; and

    (d) has “user-accessible programmability” by means of teach/playback
method or by means of an electronic computer which may be a programmable
logic controlled, i.e. without mechanical intervention.

    N.B.

    The above definition does not include the following devices:

    (a) Manipulation mechanisms which are only manually/teleoperator
controllable;

    (b) Fixed sequence manipulation mechanisms which are automated moving
devices operating according to mechanically fixed programmed motions. The
program is mechanically limited by fixed stops, such as pins or cams. The
sequence of motions and the selection of paths or angles are not variable or
changeable by mechanical, electronic, or electrical means;

    (c) Mechanically controlled variable sequence manipulation mechanisms
which are automated moving devices operating according to mechanically fixed
programmed motions. The program is mechanically limited by fixed, but
adjustable, stops such as pins or cams. The sequence of motions and the
selection of paths or angles are variable within the fixed program pattern.
Variations or modifications of the program pattern (e.g., changes of pins or
exchanges of cams) in one or more motion axes are accomplished only through
mechanical operations;

    (d) Non-servo-controlled variable sequence manipulation mechanisms which
are automated moving devices, operating according to mechanically fixed
programmed motions. The program is variable but the sequence proceeds only by
the binary signal from mechanically fixed electrical binary devices or
adjustable stops;

    (e) Stacker cranes defined as Cartesian coordinate manipulator systems
manufactured as an integral part of a vertical array of storage bins and
designed to access the contents of those bins for storage or retrieval.

    (2) “End-effectors”

    “End-effectors” include grippers, “active tooling units,” and any other
tooling that is attached to the baseplate on the end of a “robot” manipulator
arm.

    (3) The definition in (a) above is not designed to control robots
specially designed for nonnuclear industrial applications such as automobile
paint-spraying booths.

    1.7.Vibration test systems, equipment, components and software therefor,
as follows:

    (a) Electrodynamic vibration test systems, employing feedback or closed
loop control techniques and incorporating a digital controller, capable of
vibrating at 10 g RMS or more between 20 Hz and 2000 Hz and imparting forces
of 50 kN (11,250 lbs) measured ‘bare table’, or greater;

    (b) Digital controllers, combined with “specially designed software” for
vibration testing, with a real-time bandwidth greater than 5 kHz and being
designed for use with the systems controlled in a. above;

    (c) Vibration thrusters (shaker units), with or without associated
amplifiers, capable of imparting a force of 50 kN (11,250 lbs),
measured ‘bare table’, or greater, which are usable for the systems
controlled in a. above;

    (d) Test piece support structures and electronic units designed to
combine multiple shaker units into a complete shaker system capable of
providing an effective combined force of 50 kN, measured ‘bare table’, or
greater, which are usable for the systems controlled in a. above;

    (e) “Specially designed software” for use with the systems controlled
in a. above or for the electronic units controlled in d. above.

    1.8.Vacuum and controlled atmosphere metallurgical melting and casting
furnaces as follows; and specially configured computer control and monitoring
systems and “specially designed software” therefor:

    (a)Arc remelt and casting furnaces with consumable electrode capacities
between 1000 cm^3 and 20,000 cm^3 and capable of operating with melting
temperatures above 1700 centigrade;

    (b)Electron beam melting and plasma atomization and melting furnaces with
a power of 50 kW or greater and capable of operating with melting
temperatures above 1200 centigrade.
2.MATERIALS

    2.1. Aluminum alloys capable of an ultimate tensile strength of 460 Mpa
(0.46 x 10^9 N/m^2 ) or more at 293 K (20 centigrade), in the form of tubes or
cylindrical solid forms (including forgings) with an outside diameter of more
than 75 mm (3 in.).

    Technical Note: The phrase “capable of” encompasses aluminum alloys
before or after heat treatment.

    2.2. Beryllium metal, alloys containing more than 50% beryllium by
weight, beryllium compounds, and manufactures thereof, except:

    (a) Metal windows for X-ray machines, or for bore-hole logging devices;

    (b) Oxide shapes in fabricated or semi-fabricated forms specially
designed for electronic component parts or as substrates for electronic
circuits;

    (c) Beryl (silicate of beryllium and aluminum) in the form of emeralds
or aquamarines.

    Technical Note: This entry includes waste and scrap containing beryllium
as defined above.

    2.3.High-purity (99.99% or greater) bismuth with very low silver
content (less than 10 parts per million).

    2.4.Boron and boron compounds, mixtures, and loaded materials in which
the boron- 10 isotope is more than 20% by weight of the total boron content.

    2.5.Calcium (high purity) containing both less than 1000 parts per
million by weight of metallic impurities other than magnesium and less than
10 parts per million of boron.

    2.6.Chlorine Trifluoride (CIF3).

    2.7.Crucibles made of materials resistant to liquid actinide metals,
as follows:

    (a) Crucibles with a volume of between 150 ml and 8 liters and made of
or coated with any of the following materials having a purity of 98% or
greater:

    (i) Calcium fluoride (CaF2)

    (ii) Calcium zirconate (metazirconate) (CaZrO3)

    (iii) Cerium sulfide (Ce2S3 )

    (iv) Erbium oxide (erbia) (Er2O3)

    (v) Hafnium oxide (hafnia) (HfO2)

    (vi) Magnesium oxide (MgO)

    (vii) Nitrided niobium-titanium-tungsten alloy (approximately 50% Nb,
30% Ti, 20% W)

    (viii) Yttrium oxide (yttria) (Y2O3 )

    (ix) Zirconium oxide (zirconia) (ZrO2)

    (

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...