REGULATIONS ON ADMINISTRATION OF TECHNOLOGIES THE IMPORT OF WHICH IS PROHIBITED OR RESTRICTED

The Ministry of Foreign Trade and Economic Cooperation, the State Economic and Trade Commission

Order of the Ministry of Foreign Trade and Economic Cooperation and the State Economic and Trade Commission

No.18

In accordance with the Foreign Trade Law of the P.R. China and the Regulations of the People’s Republic of China on Administration
of Import and Export of Technologies, the Regulations of the P.R. China on the Technologies the Import of Which Is Prohibited or
Restricted are hereby published, and shall enter into force as of January 1, 2002.

Minister of the Ministry of Foreign Trade and Economic Cooperation Shi Guangsheng

Director of the State Economic and Trade Commission Li Rongrong

December 28, 2001

Regulations on Administration of Technologies the Import of Which Is Prohibited or Restricted

Article 1

These regulations are formulated in accordance with the Foreign Trade Law of the People’s Republic of China and the Regulations of
the People’s Republic of China on Administration of Import and Export of Technologies in order to promote import of technologies.

Article 2

Import of technologies which fall within the Subsection of Technologies Prohibited from Import in the Catalogue of Technologies the
Import of Which Is Prohibited or Restricted (to be published separately) shall be prohibited.

Article 3

The State adopts a licensing system for the import of technologies the import of which is restricted. The importer of technologies
which fall within the Subsection of Technologies Restricted to Be Imported is in the Catalogue of Technologies the Import of Which
Are Prohibited or Restricted shall apply for licenses in accordance with these Regulations.

Article 4

MOFTEC and SETC are jointly responsible for the administration of the licensing system for the import under Article 3 above of technologies
restricted to be imported.

Article 5

The importer shall, before importing in accordance with Article 3 above technologies restricted to be imported, shall fill in the
Application Form for Import of Restricted Technologies which is attached here as Attachment I, and submit it to MOFTEC in order to
apply for a license.

Article 6

Within thirty (30) working days after receiving the Application Form, MOFTEC shall make the trade review and SETC the technical review
of the application before they decide to approve or disapprove the application.

In case the application documents are incomplete, unclear or do not conform with the requirement, the documents shall be returned
to the applicant for revision and completion. The date on which the applicant re-submits the application or hands in the final documents
shall be deemed as the date of reception of the application.

Article 7

The trade review of the application for import of restricted technologies shall include:

(1)

Review on whether the application is in conformity with the foreign trade policies of the State and on whether it will promote the
economic and technological cooperation between China and other countries;

(2)

Review on whether the application is in conformity with the international commitments binding on China.

Article 8

The technical review of the application for import of restricted technologies shall include:

(1)

Review on whether the application may jeopardize the State security or social and public interests;

(2)

Review on whether the application is detrimental to the life and health of human beings;

(3)

Review on whether the application will damage the natural environment;

(4)

Review on whether the application is in conformity with the State policies for industrial, economic and social development, conducive
to technological progression and upgrading of industrial products, and to the protection of the national rights and interests in
economic and technological development.

Article 9

If the application is approved, MOFTEC will issue a standard and uniformly numbered Proposal for Technology Import License, which
is attached here as Attachment II. The importer of technologies may enter into contracts of import of technologies upon obtaining
the Proposal for Technology Import License.

Article 10

Upon signing the contract of import of technologies, the importer shall submit the Proposal for Technology Import License, copies
of the contract and attachments and documents evidencing the legal status of the contracting parties, to MOFTEC in order to apply
for a Technology Import License.

Article 11

MOFTEC shall, upon reviewing the authenticity of the contract, decides to grant or not grant the Technology Import License within
ten (10) working days after receiving the documents listed in Article 10 above.

Article 12

The importer may, when submitting the application to MOFTEC in accordance with Article 5 of these Regulations, also submit copies
of the contract of import of technologies and its attachments which are already signed.

Within thirty (30) working days after receiving the above documents, MOFTEC shall make the trading review and SETC the technical review
of the application and decide to approve or disapprove the application for import. MOFTEC shall, within ten (10) working days after
the application is approved, review the authenticity of the contract, and decide to grant or not grant the Technology Import License.

In case the application documents are incomplete, unclear or do not conform with the requirement, the documents shall be returned
to the applicant for revision and completion. The date on which the applicant re-submits the application or hands in the final documents
shall be deemed as the date of reception of the application.

Article 13

If deciding to grant the License, MOFTEC shall issue a standard and uniformly numbered Technology Import License, which is attached
here as Attachment III. The contract of import of restricted technologies shall be effective upon the date on which the License is
issued.

Article 14

The importer of restricted technologies shall, when approaching MOFTEC to obtain the Technology Import License, log on the System
of Administration of Contracts of Import of Technologies on the website of China International E-Commerce Network (https://info.ec.com.cn),
and upload the content of the contract.

Article 15

In case an investment project needs the approval by the competent authorities and involves import of restricted technologies, the
importer of the said technologies shall, when submitting the application in accordance with Article 5 or 12 of these Regulations
to MOFTEC, also provide the approval documents of the competent authorities.

Article 16

In case revision is made to the main content of the contract of import of technologies for which a License has been obtained, the
importer is required to apply for a new License in accordance with these Regulations.

Article 17

The importer shall present the Technology Import License in order to go through the formalities at the authorities of foreign exchange,
banking, taxation and customs.

Article 18

Importers who have violated the provisions of these Regulations shall incur legal responsibilities in accordance with the Regulations
of the People’s Republic of China on Administration of Import and Export of Technologies.

Article 19

Import of special technologies for military use and national defense is not subject to these Regulations.

Article 20

These Regulations shall enter into force on January 1, 2002.

Attachment:

I. Application Form of Import of Restricted Technologies (omitted)

II. Proposal for Technology Import Licence of the People’s Republic of China

III. Technology Import Licence of the People’s Republic of China Attachment II:Proposal for Technology Import Licence of the People’s Republic of China

No:

1.Importer

2.No.of proposal for technology import license

3.Application No.

4.Exporter

5.Mode of technology import

6.Technologyitem:

Code:

7.Supplementary detail:

8.Issuing authority stamp & signature

9.Issuing date

Attachment III:Technology Import Licence of the People’s Republic of China

1.Importer

2.No.of technology import license

3.Application No.

4.No.of proposal for technology import license

5.Exporter

6.Mode of technology import

7.Technologyitem:

Code:

8.Supplementary detail:

9.Issuing authority stamp & signature

10.Issuing date