CIRCULAR OF THE STATE COUNCIL CONCERNING SEVERAL POLICIES ON CARRYING OUT THE DEVELOPMENT OF CHINA’S VAST WESTERN REGIONS

The State Council

Circular of the State Council Concerning Several Policies on Carrying out the Development of China’s Vast Western Regions

GuoFa [2000] No.33

October 26, 2000

The People’s Government of province, autonomous regions, municipalities directly under the Central Government, ministries and commissions
and institutions directly under the State Council:

Carrying out the strategy of the development of China’s vast western regions to speed up the development of the central-western regions
is an important composition of the modernization strategy of our country and is a great decision made by the central leadership of
the Party with great foresight and an overall point of view facing the new century, and it has very important economic and political
significance. In order to reflect the highlight support of the state to the western regions, the State Council has drawn up several
policies and measures for carrying out the development of China’s vast western regions. Relevant issues are hereby notified as follows:

Principles of Policy Formulation and Support Emphasis

Principles of Policy Formulation. Carrying out the development of China’s vast western regions is a grand systematic project and an
arduous historical task, the sense of urgency, and full mental preparation for lasting and tough struggle are both needed. We shall
insist on proceeding from actual conditions and working according to objective laws; be energetic and dynamic and acting according
to capabilities; focus on the present while keep the future in view; take the whole situation into account and plan accordingly,
and make scientific reasoning; carry out in steps while give prominence to the emphasis; prevent rushing headlong into mass action
and oppose extravagance and waste; never make things in chaos. Accelerate the changing of ideas, give more effort to opening to the
outside world, carry through the strategy of making the country strong through science and technology and the strategy of sustainable
development, integrate giving full play to the role of market mechanism and doing well macro-adjustment and control, combine the
self-reliance spirit of cadres and masses of people of the western regions and the support from all sides.

Key Tasks and Strategic Objectives. For the present and the years to come, the key tasks of carrying out the development of China’s
vast western regions are: speeding up the construction of infrastructure facilities; improving the protection and development of
environment; consolidating the basic status of agriculture, adjusting the structure of industry, and developing characteristic tourism;
developing undertakings of science and technology, education, culture and sanitation. To work hard for the breakthrough progress
in the construction of infrastructure facilities and environment of the western regions and to make a good beginning of the development
of the western regions in 5 to 10 years. The western regions shall be built into a new one with prosperous economy, advanced society,
stable living, united nationalities and beautiful sceneries at the middle period of the 21st century.

Key regions. The range in which policies on the development of the western are applicable includes Chongqing Municipality, Sichuan
Province, Guizhou Province, Yunnan Province, Tibet Autonomous Region, Shangxi Province, Gansu Province, Ningxia Hui Autonomous Region,
Qinghai Province, Xinjiang Uygur Autonomous Region, Inner Mongolian Autonomous Region and Guangxi Chuang Autonomous Region. Carrying
out the development of China’s vast western regions shall rely on the main arteries of traffic like the Eurasia Continental Bridge,
the Changjiang River Channel and the South-west Access to the Sea, give full play to the role of central cities, connect the units
with lines and spread the experience gained at selected units to an entire area to form characteristic interregional economic areas
of the West Longhai Lanxin Line, the Upper Reaches of the Changjiang River, and the Nan(nin)-Gui(yang)-Kun(ming)area, promote the
development of other regions and carry forward the development of China’s vast western regions step by step and with emphasis.

Policies on Increasing Financial Input

Increase Financial Input for Construction. Increase the proportion of central financial construction funds used in the western regions.
Under the condition that loans are granted according to lending principles, state policy-related bank loans and preferential loans
of international financial organizations and foreign governments shall be arranged for projects of the western regions as much as
possible. The investment in major projects of infrastructure construction of the western regions newly arranged by the state mainly
comes from central policy-related construction funds, other special construction funds, bank loans and foreign investments, no gap
of funds shall be left. The central authorities shall raise special funds for the development of the western regions by various means.
Relevant central departments shall show support to the western regions when drawing up plannings and policies of the development
of industries and arranging special funds. It is encouraged to put enterprise funds into major construction projects of the western
regions.

Give Priority to Construction Projects. Infrastructure facilities like irrigation works, traffic and energy, development and utilization
of superior resources, industrialization projects of characteristic new- and high-tech and military technologies converted to civilian
productions shall have priority in the overall layout of the western regions. Strengthen the build-up of corporate liability system,
project capital system, project bidding system, system of supervision and administration of project quality, system of supervision
and administration of project environment of the western regions, and the prophase work of construction projects.

Increase Financial Transfer Payment. Increase the scale of general transfer payment to the western regions step by step along with
the growth of central financial power. Tilt in favor of the western regions in the distribution of special aid funds for agriculture,
social security, education, science and technology, sanitation, birth control, culture and environment protection. The arrangements
of poverty-relief funds of central finance shall put stress on the western poverty-stricken areas. The central finance shall pay
most of the aid funds and cash subsidies for the food, seeds and sprouts needed for the projects of restoring forest and grassland
from cultivated land, of natural forest protection, and that of the control and treatment of sand carried out with the approval of
the state. Local financial revenue that is affected because of the implementation of projects of restoring forest and grassland from
cultivated land and natural forest protection shall get appropriate aid from central finance.

Increase Financial Credit Support. Banks shall, according to the principle of independence of commercial credit, increase credit input
to the construction of basic industries of the western regions, and put stress on supporting the construction of large and medium-sized
energy projects of railways, trunk line roads, electric power, oil and natural gas. Accelerate the evaluation and examination of
projects of loans affiliated to national debts to guarantee that the loans are in place as soon as possible according to the construction
schedule. As regard to projects of infrastructure facilities with large investment and long construction period, the term of loan
may be appropriately extended according to the project’s construction cycle and repaying ability. The State Development Bank shall
increase the proportion of newly added loans used in the western regions year by year. Expand the scope of loans granted to the projects
of infrastructure facilities, whose rights to charge or the rights to earnings are held in pledge. Increase credit support to the
development of agriculture, environment protection, superior industries, construction of small towns, technology reform of enterprises,
new- and high-tech enterprises and medium- and small-sized enterprises of the western regions. Actively provide study-assist loans
and loans for student apartments in the western regions. Loans for reconstruction of rural electric power grid and key projects of
large sums of loans for superior industries shall be specially arranged by the parent bank of agriculture banks, and direct loans
from the parent banks of various commercial banks shall also be arranged. Introduce banks of stock system to establish branch institutions
in the western regions step by step.

Policies on Improving Investment Environment

Make Efforts to Improve Soft Environment of Investment. Further the reform of state-owned enterprises of the western regions, accelerate
the establishment of the modern enterprise system, and do a good job of strategic adjustment of the state economy and reorganization
of assets of state-owned enterprises. Increase the support to state-owned enterprises of the western regions for clearing debts and
getting out of difficulty, and for reorganization and reconstruction. Strengthen the foster and build-up of commodity and element
markets of the western regions. Actively lead non-public economic sectors like individual economy and private economy of the western
regions to speed up development, and in principle, domestic enterprises of all kinds of systems of ownership are allowed to enter
all investment areas that are open to foreign businessmen according to relevant laws and regulations. Accelerate the establishment
of credit guaranty system of and service institutions for medium- and small-sized enterprises. Except the major and important projects
of the state and projects with special provisions, for all enterprises that invest equity capital or bank loans in projects of industries
encouraged and allowed by the state, the project proposals and research reports of feasibilities may be combined and submitted for
approval according to prescribed procedures, the preliminary designs and commencement reports may be free from the examination and
approval of governments, thus to simplify the procedures of the examination and approval of projects with foreign investments. Further
the conversion of governmental functions, separate governmental functions from enterprise management, reduce matters that need examination
and approval, simplify transaction procedures, intensify the sense of service, eliminate administrative monopoly, regional blockade
and protection, strengthen administration by law and protect legal rights and interests of consumers. Improve environment protection,
prevent rash and repeated construction, and close factories, mines and enterprises that produce inferior products, waste resources,
cause serious pollution and have no safe production conditions.

Implement Policies of Preferential Taxation. With regard to enterprises with domestic investment and enterprises with foreign investment
of industries encouraged by the state, which are established in the western regions, business income tax shall be levied upon at
the rate with 15% reduction during a certain period. With the approval of people’s governments of the provincial level, enterprises
of autonomous minority nationality areas may get reduction or exemption of business income tax regularly. With regard to the establishment
of enterprises of traffic, electric power, irrigation works, postal service and broadcasting in the western regions, business income
tax are exempted for the first two years, and half reduced for the third year. Income of agricultural specialties produced from forests
and grassland restored from cultivated land for the purpose of environment protection may be exempted from agricultural specialty
tax for 10 years. Land used for construction of national highways and provincial highways in the western regions may be exempted
from cultivated land occupancy tax according to land used for construction of railways and civil aviation. The people’s governments
of provinces, autonomous regions and municipalities directly under the Central Government shall decide on whether the land used for
construction of other highways may be exempted from cultivated land occupancy tax. With regard to the projects of industries encouraged
for domestic investment, industries encouraged for foreign investment and superior industries, when importing advanced technical
equipments for self-use within the total amount of investment, customs duty and value-added tax in the link of import may be exempted,
except those commodities prescribed by the state which shall not be exempted from tax.

Implement Preferential Policies on Land and Mineral Resources. With regard to planting forests and grassland on barren hills and wasteland,
and to restoring forests and grassland from cultivated land of the western regions, the policy of “who restores, plants or operates,
who has the right to the use of land and the ownership of the forests and grassland” shall be implemented. Various economic organizations
and individuals may apply to use barren hills and wasteland owned by the state and conduct environment protection construction like
restoring vegetation of trees and grasses. On the condition that construction investment and afforestation work have been in place,
the right to the use of state-owned land may be obtained by assignment, fees for assignment may be reduced or exempted, the right
to the use of land shall remain unchangeable for 50 years, the term may be extended based on application after expiration, and the
right to the use of land may be inherited and transferred with compensation. If it is necessary to take back the right to the use
of state-owned land because of state construction, compensation shall be given according to law. Ecological forests restored from
cultivated land that enjoy state ration allowance shall not be felled. Strictly protect the basic farmland, and realize the balance
between occupancy and restoration of cultivated land. Further improve the system of examination and approval of land used in construction,
simplify procedures, and promptly provide and protect land used in construction. Income from paid use of current land which is used
in construction of towns shall be used mainly in the infrastructure construction of the towns. Increase policy support to the research,
evaluation, exploration, development, protection and reasonable utilization of mineral resources of the western regions. Draw up
policies and measures to promote legal assignment and transfer of exploration right and exploitation right, and foster the mining
right market.

Adjust by the Mechanism of Price and Charge. Further the price reform, and further increase the proportion of market in the adjustment
of price. Set the price of “transmitting gas from west to east” and “transmitting electricity from west to east” reasonably, and
establish the mechanism of price forming in the manufacturing and marketing links of natural gas, electric power, oil and coal. Accelerate
the steps of water price reform, increase water price to a reasonable level step by step according to the requirements of water saving,
and perfect the collection and administration of charges for water resources. Strengthen unified administration of water resources
of drainage area, strictly implement the system of planned use of water and distribution of water, and promote reasonable utilization
and development of water resources. Charge system of city sewage and garbage disposal shall be carried out at large, and charges
collected shall be specially used in the disposal of sewage and garbage. Improve the pollution prevention and protection of water
resources of upper reaches of rivers and headwater areas. Operators may independently set the price of airplane tickets of inter-provincial,
provincial or regional branch lines in the western regions. Special freightage may apply to railways newly built in the western regions.
Improve general postal service and telegraphic service of the western regions.

Policies on Expanding the Opening to the Outside World and Internal Areas.

Further Expand Areas Opened to Foreign Investment. Encourage foreign businessmen to invest in infrastructure construction and resource
development like agriculture, irrigation works, ecology, traffic, energy, city planning, environment protection, mineral resources,
tourism, etc, and encourage the establishment of technology research and development centers. Expand service and trade areas of the
western regions opened to the outside world, extend experimental foreign investment units of banks, commercial retail enterprises
and foreign trade enterprises to municipalities directly under the Central Government, provincial capitals and capital cities of
autonomous regions, allow banks with foreign investment of the western regions to run RMB business step by step, allow foreign businessmen
to invest in the western regions in telecommunication, insurance, tourism, and to set up Sino-foreign equity joint accounting firms,
law firms, engineering design enterprises, railway and highway freight transport enterprises, municipal public enterprises and other
enterprises of areas promised to open. Experimental units of some areas that are to be opened are allowed to start in the western
regions before other places.

Further Widen Channels of Using Foreign Investment. Experimental units using foreign investment by BOT in the western regions shall
develop experimental units using foreign investment by TOT. Allow projects with foreign investment to launch project financing which
includes RMB. Support enterprises with foreign investment of the western regions that meet requirements to list in domestic and overseas
stock markets. Support enterprises of industries encouraged and allowed by the state of the western regions to attract foreign investment
by transferring managerial authority, selling stock equity, merger and reorganization. Actively explore ways of attracting foreign
investment like Sino-foreign equity joint industry funds and risk investment funds. Encourage enterprises with foreign investment
in China to reinvest in the western regions, and reinvestment projects the foreign investment of which exceeds 25% shall enjoy the
treatments of enterprises with foreign investment. With regard to foreign businessmen investing in infrastructure and superior industry
projects in the western regions, the limit of the proportion of foreign investment may be appropriately eased, and the proportion
of RMB loans for capital assets investment provided by domestic banks may be appropriately eased. Allow some projects of the western
regions to increase the proportion of foreign preferential loans in the total investment appropriately. When superior industries
and export-oriented projects of the western regions introduce in advanced foreign technologies and equipments, the state shall give
support in the arrangement of the quota of foreign commercial loans. Actively make efforts to give priority to projects of the western
regions in the arrangement of multilateral or bilateral capital donations.

Energetically Develop Foreign Economy and Trade. Further enlarge the power of enterprises to make decisions in foreign trade and operation,
encourage developing the export of superior products, foreign projects contracting and labor cooperation, investing and establishing
enterprises abroad especially in the neighboring countries, and ease the limit of personnel entry and exit. With regard to technologies
and equipments in urgent need for economic development of the western regions, proper consideration shall be given in import administration.
With regard to overseas tourists entering China in important tourism cities of the western regions, landing visa and other policies
of convenient entry visa shall be implemented according to situations. Carry out more preferential policies of border trade, ease
limits on matters like drawback, business scope of import and export commodities, import and export commodity quotas, license administration
and personnel entry and exit, promote the western regions and neighboring countries to open markets mutually, and promote healthy
development of economic and technological cooperation with neighboring countries and areas.

Promote Regional Cooperation and Mutual Support. On the condition that repeated constructions are prevented, the transfer of under-developed
technologies and environment pollution are forbidden, strong measures shall be taken in aspects like investment, finance, taxation,
credit, economy and trade, industry and commerce, labor and statistics to support enterprises of the east and middle regions to cooperate
in various forms in the western regions in investing and establishing enterprises, purchasing shares and becoming shareholders, purchase
and merger, and technology transfer. Under the guidance of central and local governments, mobilize all forces of society to strengthen
mutual support between east and west, further increase support to the western poverty-stricken areas and minority nationality areas,
continue to promote the “Prosper the Border Area and Enrich the People” Action. Develop various forms of regional economic cooperation
centering on the key areas of the western development

Policies on Attracting Qualified Personnel and Developing Science and Technology, and Education.

Attract and Wisely Use Qualified Personnel. Draw up policies in favor of the western regions to attract and retain qualified personnel,
and to encourage them to establish business. Along with the reform of the wages system, provide allowance for tough and remote areas,
and increase the wages level of personnel of departments and institutions of the western regions to be equal to or above the national
average level step by step. Relying on key tasks, major construction projects and important research topics, provide favorable work
and living conditions to attract domestic and foreign personnel with professional talent to devote themselves in the western development.
Reform the domiciliary control system, allow residents of other regions, who go to the western regions to make investments, run business
and take part in the development, to keep their registered permanent residences of original domiciles. For personnel who have legal
and fixed domicile in cities below the prefecture level (including cities of the prefecture level) and small towns of the western
regions, and have stable jobs or living incomes, permanent residence in the towns may be registered based on their own wills. Encourage
reasonable transfer of spare agriculture labor force and reasonable inter-regional population flow. Expand exchange of cadres between
the east and western regions. Relevant central departments, universities and colleges, and research institutions of the east regions
shall increase intellectual service and personnel support provided to the western regions. Increase the introduction of foreign talents
to the western regions. Relying on relevant central departments and coastal economically developed areas, strengthen the foster of
leaders and cadres, cadres of minority nationalities of the western regions and the training of civil servants, professional technological
personnel and enterprises managerial personnel.

Bring the Leading Role of Science and Technology into Full Play. Give more support tilting to the western regions in all kinds of
planned science and technology funds, and increase the amount of science and technology funds used in the western regions step by
step. Centering on the key tasks of the development of western regions, strengthen the build-up of science and technology capacity,
organize brainstorm projects of key technologies of commonness, speed up the spread and application of important technological achievements
and the pace of industrialization. Support the development of the industrialization of military technologies converted to civilian
productions. Support research institutions, colleges and universities of the western regions to strengthen characteristics application
research and basic research. Further the reform of science and technology system, accelerate the transformation of research institutions
engaged in application research to enterprises, strengthen the association of production, study and research, promote the close integration
of science and technology and economy. Allow and increase the proportion of development expenses drew from the sales amount by enterprises
of the western regions. Give more support of innovation funds for small- and medium-sized science and technology enterprises to projects,
which meet the requirements, of the western regions. Simplify the registration of industry and commerce, and increase the upper limit
of the proportion of stock equity, option and intellectual property in the total capital when science and technology personnel establish
science and technology enterprises in the western regions,

Increase Educational Input. Continue to carry out compulsory education projects in the poverty-stricken areas, give more support of
the state to compulsory education in the western regions, increase funds input and make efforts to speed up the realization of nine-year
compulsory education. Give support to the construction of universities and colleges of the western regions, and the universities
and colleges in the east and middle regions are encouraged to expand the scale of enrollment of the students from the western regions.
Strengthen the project of mutual support of schools of the east regions to schools of western poverty-stricken areas, and the project
of mutual support of schools of large and middle sized cities of the western regions to schools of rural depressed areas. Build up
long-distance education system in the western regions. Strengthen the education and training of grassroots cadres and peasants of
scientific, technological and cultural knowledge.

Strengthen the Construction of Cultural and Sanitary Establishments. State planned subsidies for construction of local cultural establishments,
investment for broadcasting and television establishments and cultural relics, shall tilt in favor of the western regions. Further
carry out economic policies for state cultural propaganda units to prosper literature creations. Carry forward “Village to Village”
construction of broadcasting and television establishments of natural villages, further expand the effective coverage of broadcasting
and television. Promote the development of cultural undertakings of border areas and minority nationality areas. Support the cultural
build-up and spiritual civilization build-up of the western regions. Give more support to the sanitary and birth control build-up
of the western regions, put stress on establishing and perfecting the primary health care system of rural areas.

The Office of the Development of Western Regions of the State Council shall, jointly with relevant departments, act promptly to study
and work out relevant detailed rules of the policies or opinions on implementation according to the above policies and measures,
and promulgate and put them into effect with the approval of the State Council. Governments of all levels of the western regions
shall implement unified policies on the development of China’s vast western regions according to the provisions of the state.

The above policies and measures mainly apply to the current time and 10 years (year 2001 to 2010) to come from now on, and will be
further perfected with the implementation of the strategy of the development of China’s vast western regions. All policies, measures
and the detailed rules of them prescribed shall come into force as of January 1, 2001.

The State Council
2000-10-26

OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION CONCERNING THE CREDIT OF BUSINESS INCOME TAX OF ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES PURCHASING DOMESTIC EQUIPMENT

The State Administration of Taxation

Official Reply of the State Administration of Taxation Concerning the Credit of Business Income Tax of Enterprises with Foreign Investment
and Foreign Enterprises Purchasing Domestic Equipment

GuoShuiHan [2000] No.910

November 20, 2000

The state taxation bureau of Guangdong:

The Request for a Instruction on Issues Concerning The Credit of Business Income Tax of Enterprises with Foreign Investment and Foreign
Enterprises Purchasing Domestic Equipment has been received. The reply for issues of the Implementation of the Measures for the Administration
of the Credit of Business Income Tax of Enterprises with Foreign Investment and Foreign Enterprises Purchasing Domestic Equipment
(hereafter as the Measures for the Administration) promulgated by the State Administration of Taxation commission is as follows:

According to the provisions of the Circular Concerning Issues of the Credit of Business Income Tax of Enterprises with Foreign Investment
and Foreign Enterprises Purchasing Domestic Equipment (CaiShuiZi [2000] No.49) of the Ministry of Finance and the State Administration
of Taxation, the domestic equipment that can credit the business income tax, in the decision on applicable scope of encouraged projects,
are those of investment project of encouraging type, limiting B type in the Instructive Catalogue of Industries with Foreign Investment
(not including the Non-exempted Import Goods Catalogue of Projects with Foreign Investment prescribed in GuoFa [1997] No.37) that
is set out in the Circular of the State Council Concerning the Adjustment of Policies of Taxation on Import Equipment (GuoFa [1997]
No.37). Where there are incorrect judgment or disagreement on whether the domestic facilities purchase by the enterprises are included
in the scope of investment projects stated above, the affirmation may be made after the request for an opinion of the foreign trade
and economic authorities of provincial level.

As to issues concerning “copy of tax (special for export goods) payment certificate ” that shall be provided where enterprises apply
for crediting business income tax, according to Article 10 of the Measures for the Implementation, where enterprises apply for credit
enterprise income tax, they shall provide tax (special for export goods) payment certificate. If the enterprises purchase the equipment
from the non-manufacturing departments, or with the capitals not belonging to the amount of investment, or without tax (special for
export goods) payment certificate, which may credit the business income tax according to the provisions, they may offer the purchasing
invoice of the equipment instead of tax (special for export goods) payment certificate when transacting the credit of business income
tax.

The State Administration of Taxation
2000-11-20

CIRCULAR OF STATE ADMINISTRATION OF TAXATION CONCERNING THE ISSUE OF HANDLING THE TAXATION OF ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES ENGAGED IN CONSULTING BUSINESSES

The State Administration of Taxation

Circular of State Administration of Taxation Concerning the Issue of Handling the Taxation of Enterprises with Foreign Investment
and Foreign Enterprises Engaged in Consulting Businesses

GuoShuiFa [2000] No.82

May 12, 2000

In recent years, numerous accounting, auditing, consulting and law firms outside of China (hereinafter collectively cited as “Consulting
Enterprises Outside of China”) have entered into China to engage in businesses such as taxation, accounting, auditing, law, consultation,
etc. (hereinafter referred to as “Consulting Businesses”). Some of them have established enterprises with foreign investment which
are specially engaged in Consulting Businesses in China. Others have set up their agencies in China. Depending on the particularities
of the businesses, some Consulting Enterprises Outside China participated in consulting activities within China; some directly sent
their staff to conduct business in China, and others did so jointly with enterprises with foreign investment and agencies within
China. In order to regulate the taxation administration, we now pronounce as follows with regard to the issue of handling the taxation
on the income derived by the enterprises with foreign investment, agencies and consulting enterprises which are engaged in Consulting
Businesses within China:

The issue of handling the taxation on the income of enterprises with investment and agencies within China derived from Consulting
Businesses:

The income, acquired by enterprises with investment and agencies through signing contracts (including the contracts signed by agencies
on behalf of its head office and the business performed actually by agencies) with clients and providing them with services in the
form of Consulting Businesses, shall be fully regarded as the income of enterprises with foreign investment and agencies, and they
should report and pay business tax and enterprise income tax at the places where their establishments are located.

The issue of handling the taxation on the income acquired by Consulting Enterprises Outside China for solely providing clients with
the services of Consulting Businesses:

The income acquired by Consulting Enterprises Outside China through solely signing contract with clients and providing them with the
services of Consulting Businesses, the said enterprises shall report and pay business tax and enterprise income tax with respect
to the entire income, provided that all the provided service occurs within China. In case the provided service occurs within China
as well as outside China, the corresponding income shall be divided into income within China and income outside China on the basis
of the place where the service occurs, and they shall report and pay tax with respect to the income acquired through providing service
within China. Generally, the business income that is derived from the said Consulting Businesses and is provided to clients within
China shall be divided as that within China and shall be no less than 60% of the total income.

If all the consulting service provided to clients is outside China, the corresponding income will not be taxed in China.

The issue of handling the taxation on the income acquired by Consulting Enterprises Outside China and enterprises with foreign investment
or agencies within China through jointly providing the services of Consulting Businesses to clients:

The income, acquired by Consulting Enterprises Outside China and enterprises with foreign investment or agencies within China through
jointly signing the contracts with clients and providing them with Consulting Businesses together, shall be firstly divided into
the respective income of the enterprises outside China and that within China according to the work load or reasonable proportions
stipulated in the contracts. Enterprises with foreign investment or agencies within China shall report and pay business tax and enterprise
income tax with respect to their delegated income. If Consulting Enterprises Outside China and their affiliated enterprises or agencies
within China jointly provide the services of Consulting Businesses to clients in China, the proportion of income delegated as theirs
shall be no less than 60% of the total income of the business.

The income, which is derived from the said Consulting Businesses in which enterprises outside China also sent staff to participate
and is delegated as their income, shall be defined as their business income within China according to the place where the service
occurs, and shall be no less than 50%. The said enterprises shall report and pay business tax and enterprises income tax in accordance
with relevant regulations.

The taxable business income within China acquired by Consulting Enterprises Outside China stated in Article 1 and 2 herein, shall
be incorporated into the income of their agencies and be taxed, provided that the said enterprises outside China and their agencies
within China jointly provided the business. If the Consulting Enterprises Outside China have no agencies within China, or they do
not jointly provide the business in spite of having agencies within China, it shall be deemed that the said enterprises have places
of business within China, and the taxpayer shall withhold the tax payment.

In case that the above-mentioned provisions involve Consulting Businesses, which are conducted by consulting enterprises from those
countries, or the Hong Kong Special Administration Region, which have signed agreements or arrangements of avoidance of double taxation
with China, it shall be determined whether or not they constitute permanent organizations according to the stipulations regarding
permanent organization provided in said agreements or arrangements. Those that constitute permanent organizations shall be taxed
on the enterprises income according to the said circular.

The said circular shall come into effect as of June 1, 2000. Matters which have been handled prior to the execution of the said circular
will not be adjusted again; those which have not been handled or whose relevant contracts have not expired shall be carried out according
to the said circular.

The State Administration of Taxation
2000-05-12

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION (MOFTEC) ON CANCELLATION OF THE EXAMINATION AND APPROVAL FOR THE ESTABLISHMENT OF BRANCHES OF INTERNATIONAL FORWARDERS IN ALREADY APPROVED OPERATING AREAS

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) on Cancellation of the Examination and Approval for the
Establishment of Branches of International Forwarders in already Approved Operating Areas

WaiJingMaoFaZhanYunHanZi [2000] No.3303

November 21, 2000

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; Shenzhen Bureau of Transportation:

To simplify the procedures of examination and approval and to accelerate the network building of international forwarders, MOFTEC
decides to replace the examination and approval system for the establishment of branches of international forwarders (hereinafter
referred to as forwarders) in already approved operating areas with a registration system as of today. It is hereby noticed as follows:

Forwarders should fully comply with the provisions in Article 10 and 18 of the Rules for the Implementation of the People’s Republic
of China for the Administration of International Forwarders (Interim) when establishing their branches in already approved operating
areas.

Enterprises establishing their branches in already approved operating areas without any increase in their registered capital may claim
their Approval Certificate of the People’s Republic of China for the Establishment of Branches of International Forwarders at MOFTEC
against the following documents.

(1)

registration form for the establishment of branches of international forwarders (with official seals of international forwarders)
(Attachment I);

(2)

original approval certificate (original and a copy);

(3)

business license (photocopy);

(4)

decision of the board of directors or the shareholders’ meeting;

(5)

resumes of the leader and key employees of the branch

(6)

testimonial of fixed place operation

Such additional documents should be provided in case there is an increase in registered capital and all investors increase their capital
contribution by the original proportion:

(1)

capital verification report

(2)

agreement on amendments to the corporate statute

The forwarders should also renew their Approval Certificate of the People’s Republic of China for the Establishment of International
Forwarders.

In case there is an increase in registered capital and the increase is not based on the original investment proportion, the forwarder
should first apply for alteration of stock equity.

The forwarder should register with competent local foreign trade and economic authorities with its Approval Certificate of the People’s
Republic of China for the Establishment of Branches of International Forwarders.

Forwarders establishing branches outside the approved operating areas should still be handled in compliance with related existing
provisions.

Forwarders referred to in this circular do not include international forwarders with foreign investment .

Attachment IRelated Articles of the Rules for the Implementation of the People’s Republic of China for the Administration of International Forwarders
(Interim)

Article 10 : Each international forwarder should increase its registered capital by 500,000 RMB accordingly when applying for the
establishment of a branch. If the registered capital already exceeds the minimum requirement in the Regulations (5 million RMB for
ocean transportation, 3 million RMB for air transportation and 2 million RMB for land transportation and express delivery), the surplus
part may be regarded as an extra capital contributed for the establishment of the branch.

Article 18 : The forwarder may apply for the establishment of a subsidiary or a branch after one year of operation since the establishment
of the forwarder. The scope of business of the subsidiary or branch should not go beyond that of its parent company or head company.

Appendix I: Registration Form for the Establishment of Branches of International Forwarders in already Approved Operating Areas (omitted)

The Ministry of Foreign Trade and Economic Cooperation
2000-12-21

EXTRADITION LAW

Extradition Law of the People’s Republic of China

(Adopted at the 19th Meeting of the Standing Committee of the Ninth National People’s Congress on December 28, 2000
and promulgated by Order No. 42 of the President of the People’s Republic of China on December 28, 2000)

Contents

Chapter I General Provisions

Chapter II Request Made to the People’s Republic of China for Extradition

Section 1 Conditions for Extradition

Section 2 Submission of the Request for Extradition

Section 3 Examination of the Request for Extradition

Section 4 Compulsory Measures for Extradition

Section 5 Execution of Extradition

Section 6 Postponed and Temporary Extradition

Section 7 Transit for Extradition

Chapter III Request Made to Foreign States for Extradition

Chapter IV Supplementary Provisions

Chapter I

General Provisions

Article 1 This Law is enacted for the purpose of ensuring normal extradition, strengthening international cooperation in punishing
crimes, protecting the lawful rights and interests of individuals and organizations, safeguarding national interests and maintaining
public order.

Article 2 This Law is applicable to extradition conducted between the People’s Republic of China and foreign states.

Article 3 The People’s Republic of China cooperates with foreign states in extradition on the basis of equality and reciprocity.

No cooperation in extradition may impair the sovereignty, security or public interests of the People’s Republic of China.

Article 4 The People’s Republic of China and foreign states shall communicate with each other through diplomatic channels for
extradition. The Ministry of Foreign Affairs of the People’s Republic of China is designated as the communicating authority for extradition.

Where in an extradition treaty there are special provisions to govern the communicating authority, the provisions there shall prevail.

Article 5 In handling cases of extradition, compulsory measures including detention, arrest and residential surveillance may, depending
on the circumstances, be taken against the person sought.

Article 6 The terms used in this Law are defined as follows:

(1) “the person sought” refers to the person for whom a request for grant of extradition is made by a requesting state;

(2) “the person extradited” refers to the person extradited from the requested state to the requesting state;

(3) “extradition treaty” refers to a treaty on extradition, which is concluded between the People’s Republic of China and a foreign
state or to which both the People’s Republic of China and a foreign state are parties, or any other treaty which contains provisions
in respect of extradition.

Chapter II

Request Made to the People’s Republic of China for Extradition

Section 1

Conditions for Extradition

Article 7 Request for extradition made by a foreign state to the People’s Republic of China may be granted only when it meets
the following conditions:

(1) the conduct indicated in the request for extradition constitutes an offence according to the laws of both the People’s Republic
of China and the Requesting State; and

(2) where the request for extradition is made for the purpose of instituting criminal proceedings, the offence indicated in the request
for extradition is, under the laws of both the People’s Republic of China and the Requesting State, punishable by a fixed term of
imprisonment for one year or more or by any other heavier criminal penalty; where the request for extradition is made for the purpose
of executing a criminal penalty, the period of sentence that remains to be served by the person sought is at least six months at
the time when the request is made.

If the request for extradition concerns miscellaneous offences which conform to the provisions of Subparagraph (1) of the preceding
paragraph, as long as one of the offences conforms to the provisions of Subparagraph (2) of the preceding paragraph, extradition
may be granted for all of those offences.

Article 8 The request for extradition made by a foreign state to the People’s Republic of China shall be rejected if:

(1) the person sought is a national of the People’s Republic of China under the laws of the People’s Republic of China;

(2) at the time the request is received, the judicial organ of the People’s Republic of China has rendered an effective judgement
or terminated the criminal proceedings in respect of the offence indicated in the request for extradition;

(3) the request for extradition is made for a political offence, or the People’s Republic of China has granted asylum to the person
sought;

(4) the person sought is one against whom penal proceedings instituted or punishment may be executed for reasons of that person’s
race, religion, nationality, sex, political opinion or personal status, or that person may, for any of those reasons, be subjected
to unfair treatment in judicial proceedings;

(5) the offence indicated in the request for extradition is a purely military offence under the laws of the People’s Republic of
China or the laws of the Requesting State;

(6) the person sought is, under the laws of the People’s Republic of China or the laws of the Requesting State, immune from criminal
responsibility because, at the time the request is received, the limitation period for prosecuting the offence expires or the person
is pardoned, or for other reasons;

(7) the person sought has been or will probably be subjected to torture or other cruel, inhuman or humiliating treatment or punishment
in the Requesting State;

(8) the request for extradition is made by the Requesting State on the basis of a judgement rendered by default, unless the Requesting
State undertakes that the person sought has the opportunity to have the case retried under conditions of his presence.

Article 9 The request for extradition made by a foreign state to the People’s Republic of China may be rejected if:

(1) the People’s Republic of China has criminal jurisprudence over the offence indicated in the request and criminal proceedings
are being instituted against the person or preparations are being made for such proceedings; or

(2) extradition is incompatible with humanitarian considerations in view of the age, health or other conditions of the person sought.

Section 2

Submission of the Request for Extradition

Article 10 The request for extradition made by the Requesting State shall be submitted to the Ministry of Foreign Affairs of
the People’s Republic of China.

Article 11 The Requesting State shall present a letter of request for extradition which shall specify:

(1) the name of the requesting authority;

(2) the name, sex, age, nationality, category and number of identification documents, occupation, characteristics of appearance,
domicile and residence of the person sought and other information that may help to identify and search for the person;

(3) facts of the offence, including the time, place, conduct and outcome of the offence; and

(4) legal provisions on adjudgement, measurement of penalty and prescription for prosecution.

Article 12 A letter of request for extradition submitted by the Requesting State shall be accompanied by:

(1) where extradition is requested for the purpose of instituting criminal proceedings, a copy of the warrant of arrest or other
document with the same effect; where extradition is requested for the purpose of executing criminal punishment, a copy of legally
effective written judgment or verdict, and where part of punishment has already been executed, a statement to such an effect; and

(2) the necessary evidence of the offence or evidentiary material.

The Requesting State shall provide the photographs and fingerprints of the person sought and other material in its control which
may help to identify that person.

Article 13 The letter of request for extradition and other relevant documents submitted by the Requesting State in accordance
with the provisions of this Section shall be officially signed or sealed by the competent authority of the Requesting State and be
accompanied by translations in Chinese or other languages agreed to by the Ministry of Foreign Affairs of the People’s Republic of
China.

Article 14 The Requesting State shall make the following assurances when requesting extradition:

(1) no criminal responsibility shall be investigated against the person in respect of the offences committed before his surrender
except for which extradition is granted, nor shall that person be re-extradited to a third state, unless consented by the People’s
Republic of China, or unless that person has not left the Requesting State within 30 days from the date the proceedings in respect
of the offence for which extradition is requested are terminated, or the person completes his sentence or is released before the
sentence expires, or after leaving the country the person has returned of his own free will; and

(2) where after submitting the request for extradition, the Requesting State withdraws or waives it, or it is a mistake for the Requesting
State to submit such a request, the Requesting State shall bear the responsibility for the harm thus done to the person.

Article 15 Where there is no extradition treaty to go by, the Requesting State shall make a reciprocity assurance.

Section 3

Examination of the Request for Extradition

Article 16 Upon receiving the request for extradition from the Requesting State, the Ministry of Foreign Affairs shall examine
whether the letter of request for extradition and the accompanying documents and material conform to the provisions of Section 2
in Chapter II of this Law and the provisions of extradition treaties.

The Higher People’s Court designated by the Supreme People’s Court shall examine whether the request for extradition made by the
Requesting State conforms to the provisions of this Law and of extradition treaties regarding conditions for extradition and render
a decision on it. The decision made by the Higher People’s Court is subject to review by the Supreme People’s Court.

Article 17 Where two or more states request extradition of the same person for the same or different conducts, the order of
priority of the request for extradition shall be determined upon considering the factors such as the time when those requests for
extradition are received by the People’s Republic of China and the fact whether there are extradition treaties between the People’s
Republic of China and the Requesting States to go by.

Article 18 Where the Ministry of Foreign Affairs, after examination, believes that the request for extradition submitted by
the Requesting State does not conform to the provisions of Section 2 in Chapter II of this Law or the provisions of extradition treaties,
it may ask the Requesting State to furnish supplementary material within 30 days. The time limit may be extended for 15 days at the
request of the Requesting State.

If the Requesting State fails to provide supplementary material within the time limit mentioned above, the Ministry of Foreign Affairs
shall terminate the extradition case. The Requesting State may make a fresh request for extradition of the person for the same offence.

Article 19 Where the Ministry of Foreign Affairs, after examination, believes that the request for extradition submitted by
the Requesting State conforms to the provisions of Section 2 in Chapter II of this Law and the provisions of extradition treaties,
it shall transmit the letter of request for extradition and the accompanying documents and material to the Supreme People’s Court
and the Supreme People’s Procuratorate.

Article 20 Where the person sought is detained for extradition before a foreign state makes a formal request for extradition,
the Supreme People’s Court shall, without delay, transmit the letter of request for extradition and the accompanying documents and
material it has received to the Higher People’s Court concerned for examination.

Where the said person is not detained for extradition before a foreign state makes a formal request for extradition, the Supreme
People’s Court shall, after receiving the letter of request for extradition and the accompanying documents and material, notify the
Ministry of Public Security to search for the person. Once finding the person, the public security organ shall, in light of the circumstances,
subject that person to detention or residential surveillance for extradition and the Ministry of Public Security shall notify the
Supreme People’s Court of the fact. Upon receiving the notification of the Ministry of Public Security, the Supreme People’s Court
shall, without delay, transmit the letter of request for extradition and the accompanying documents and material to the Higher People’s
Court concerned for examination.

Where, after searching, the public security organ is certain that the person sought is not in the territory of the People’s Republic
of China or it cannot find the person, the Ministry of Public Security shall, without delay, notify the Supreme People’s Court of
the fact. The latter shall, immediately after receiving the notification of the Ministry of Public Security, notify the Ministry
of Foreign Affairs of the results of the search, and the Ministry of Foreign Affairs shall notify the Requesting State of the same.

Article 21 Where the Supreme People’s Procuratorate, after examination, believes that the offence indicated in the request
for extradition or other offences committed by the person sought are subject to prosecution by a Chinese Judicial organ, although
criminal proceedings have not yet been instituted, it shall, within one month from the date the letter of request for extradition
and the accompanying documents and material are received, notify the Supreme People’s Court the Ministry of Foreign Affairs respectively
of its opinions to institute criminal proceedings.

Article 22 The Higher People’s Court shall, in accordance with the relevant provisions of this Law and of extradition treaties
regarding conditions for extradition, examine the request for extradition made by the Requesting State, which shall be conducted
by a collegial panel composed of three judges.

Article 23 When examining an extradition case, the Higher People’s Court shall hear the pleadings of the person sought and
the opinions of the Chinese lawyers entrusted by the person. The Higher People’s Court shall, within 10 days from the date it receives
the letter of request for extradition transmitted by the Supreme People’s Court, serve a copy of the letter to the person. The person
shall submit his opinions within 30 days from the date he receives the copy.

Article 24 After examination, the Higher Peoples’ Court shall:

(1) where the request for extradition made by the Requesting State is regarded as being in conformity with the provisions of this
Law and of extradition treaties, render a decision that the request meets the conditions for extradition. Where the person whose
extradition requested falls under the category for postponed extradition according to Article 42 of this Law, it shall be so specified
in the decision; or

(2) where the request for extradition made by the Requesting State is regarded not as being in conformity with the provisions
of this Law and of extradition treaties, render a decision that no extradition shall be granted.

Upon request by the Requesting State, the Higher People’s Court may, on condition that other proceedings being conducted in the territory
of the People’s Republic of China are not hindered and the lawful rights and interests of any third party in the territory of the
People’s Republic of China are not impaired, decided to transfer the property related to the case, while rendering the decision that
the request meets he conditions for extradition.

Article 25 After making the decision that the request meets the conditions for extradition or the decision that no extradition
shall be granted, the Higher People’s Court shall have it read to the person sought and, within seven days from the date it makes
the decision, submit the decision and the relevant material to the Supreme People’s Court for review.

Where the person sought refuses to accept the decision made by the Higher People’s Court that the request meets the conditions for
extradition, he and the Chinese lawyers entrusted by him may, within 10 days from the date the People’s Court has the decision read
to the person, submit their opinions to the Supreme People’s Court.

Article 26 The Supreme People’s Court shall review the decision made by the Higher People’s Court and shall do the following
respectively:

(1) where it believes that the decision made by the Higher People’s Court conforms to the provisions of this Law and of extradition
treaties, it shall approve it; and

(2) where it believes that the decision made by the Higher People’s Court does not conform to the provisions of this Law and of extradition
treaties, it may quash it and send the case back to the People’s Court which has originally reviewed it for fresh review, or modify
the decision directly.

Article 27 In the course of examination, the People’s Court may, when necessary, request through the Ministry of Foreign Affairs
that the Requesting State provide supplementary material within 30 days.

Article 28 After making the decision of approval or modification, the Supreme People’s Court shall, within seven days from
the date it makes the decision, transmit the letter of decision to the Ministry of Foreign Affairs and, at the same time, serve it
on the person sought.

After approving the decision or making the decision that no extradition shall be granted, the Supreme People’s Court shall immediately
notify the public security organ to terminate the compulsory measures against the person sought.

Article 29 After receiving the decision made by the Supreme People’s Court that no extradition shall be granted, the Ministry
of Foreign Affairs shall, without delay, notify the Requesting State of the same.

Upon receiving the decision made by the Supreme People’s Court that the request meets the conditions for extradition, the Ministry
of Foreign Affairs shall submit the decision to the State Council for which to decide whether to grant extradition.

Where the State Council decides not to grant extradition, the Ministry of Foreign Affairs shall, without delay, notify the Requesting
State of the same. The People’s Court shall immediately notify the public security organ to terminate the compulsory measures against
the person sought.

Section 4

Compulsory Measures for Extradition

Article 30 Where before making a formal request for extradition, a foreign state applies, under urgent circumstances, for keeping
in custody the person sought, the public security organ may detain the said person for extradition upon request by the foreign
state.

The request mentioned in the preceding paragraph shall be submitted through diplomatic channels or to the Ministry of Public Security
in written form and shall contain the following:

(1) the contents provided for in Articles 11 and 14 of this Law;

(2) statement of availability of the material provided for in Subparagraph (1), Article 12 of this Law; and

(3) statement that a formal request for extradition is to be made soon.

If the request is submitted through diplomatic channels, the Ministry of Foreign Affairs shall, without delay, transmit it to the
Ministry of Public Security. If the request is submitted to the Ministry of Public Security, the Ministry of Public Security shall
impart to the Ministry of Foreign Affairs information about the request.

Article 31 When the public security organ, in accordance with the provisions of Article 30 of this Law, takes measures to detain
the person for extradition, as requested, if the request is submitted to the Ministry of Pubic Security, the Ministry of Public Security
shall, without delay, notify the Requesting State of the fact; if the request is submitted through diplomatic channels, the Ministry
of Public Security shall notify the Ministry of Foreign Affairs of the fact an the latter shall, without delay, notify the Requesting
State of the same. When doing the notification through the above-mentioned channels, the time limit for submitting a formal request
for extradition shall be informed at the same time if the person has been detained for extradition as requested.

If, within 30 days after the public security organ takes the measure of detention for extradition, the Ministry of Foreign Affairs
receives no formal request for extradition from the foreign state, the public security organ shall terminate the detention for extradition.
At the request of the foreign state, the time limit may be extended for 15 days.

Where the detention for extradition is terminated in accordance with the provisions in the second paragraph of this Article, the
Requesting State may make a formal request for extradition of that person for the same offence afterwards.

Article 32 After receiving the letter of request for extradition and the accompanying documents and material, the Higher People’s
Court shall, without delay, make a decision to arrest the person for extradition, where normal extradition may be impeded if such
a measure is not taken. Where the measure of arrest for extradition is not taken against the person sought, a decision for residential
surveillance shall be made without delay.

Article 33 Detention for extradition, arrest for extradition and residential surveillance for extradition shall be executed by the
public security organs.

Article 34 The organ that takes a compulsory measure for extradition shall, within 24 hours after measure is taken, interrogate
the person against whom the compulsory measure for extradition is taken.

The person against whom a compulsory measure for extradition is taken may, beginning from the date the compulsory measure is taken,
employ Chinese lawyers for legal assistance. When executing the compulsory measure for extradition, the public security organ shall
inform that person of the above-mentioned right his is enpost_titled to.

Article 35 Where the person sought, who should otherwise be arrested for extradition, is seriously ill or is a woman who is
pregnant or is breast-feeding her own baby, residential surveillance may be taken against him or her.

Article 36 After making the decision to grant the extradition, the State Council shall, without delay, notify the Supreme People’s
Court of the decision. If the person sought is not arrested for extradition, the People’s Court shall immediately make a decision
to arrest that person for extradition.

Article 37 If the foreign state withdraws or waives the request for extradition, the compulsory measure taken against the person
sought shall be terminated immediately.

Section 5

Execution of Extradition

Article 38 Extradition shall be executed by the public security organs. Where the State Council decides to grant extradition,
the Ministry of Foreign Affairs shall, without delay, notify the Ministry of Public Security of the decision, and notify the Requesting
State to consult with the Ministry of Public Security for arrangements with regard to the time, place, manners for surrender of the
person sought and other matters related to execution of the extradition.

Article 39 Where extradition is to be executed in accordance with the provisions of Article 38 of this Law, the public security
organ shall, in accordance with the decision of the People’s Court, transfer the property related to the case to the Requesting State.

When extradition cannot be executed for reasons of death or escape of the person sought or for other reasons, the property mentioned
above may, all the same, be transferred to the Requesting State.

Article 40 Where, within 15 days from the date agreed on for surrender, the Requesting State does not take over the person
sought, it shall be regarded as waiving the request for extradition of its own accord. The public security organ shall immediately
release the person, and the Ministry of Foreign Affairs may refuse to accept any fresh request by the Requesting State for extradition
of the person for the same offence.

Where, for reasons beyond its control, the Requesting State fails to take over the person sought within the above-mentioned time
limit, it may request an extension of the time limit for not more than 30 days, or seek to negotiate for fresh arrangements for surrender
in accordance with the provisions of Article 38 of this Law.

Article 41 Where the person under extradition escapes back to the People’s Republic of China before criminal proceedings are
terminated or his sentence is served in the Requesting State, that person may be re-extradited upon a fresh request for extradition
made the Requesting State in respect of the same offence and the Requesting State need not submit the documents and material provided
for in Section 2 of this Chapter.

Section 6

Postponed and Temporary Extradition

Article 42 Where the judicial organ of the People’s Republic of China is, for other reasons, conducting criminal proceedings
or executing criminal punishment against the person sought, the State Council may decide to postpone the extradition while approving
it.

Article 43 If postponed extradition may seriously impede the criminal proceedings in the Requesting State, the person sought
may be extradited temporarily upon the request of the Requesting State on condition that the criminal proceedings being conducted
in the territory of the People’s Republic of China are not hindered and the Requesting State undertakes to send back that person
unconditionally and immediately after concluding the relevant proceedings.

The decision on temporary extradition shall be made by the State Council after obtaining consent of the Supreme People’s Court or
the Supreme People’s Procuratorate, as the case may be.

Section 7

Transit for Extradition

Article 44 Where extradition between foreign states involves transit through the territory of the People’s Republic of China,
the foreign states shall, in accordance with the relevant provisions of Article 4 and Section 2 of this Chapter of this Law, make
a request for such transit.

The preceding paragraph is not applicable where air transport is used for transit and no landing in the territory of the People’s
Republic of China is scheduled. In the event of an unscheduled landing, a request for transit shall be submitted in accordance with
the provisions of the preceding paragraph.

Article 45 The Ministry of Foreign Affairs shall, in accordance with the relevant provisions of this Law, examine the request
for transit made by a foreign state, and make a decision on whether to permit it or not.

The decision to permit transit or to refuse transit shall be notified to the Requesting State by the Ministry of Foreign Affairs
through the same channels as the ones through which the request is received.

After making the decision to permit transit, the Ministry of Foreign Affairs shall, without delay, notify the Ministry of Public
Security of the same. The Ministry of Public Security shall decide on such matters as the time, place and manners for the transit.

Article 46 The public security organ in the place of transit shall supervise or assist in the execution of transit for extradition.

The public security organ may provide a temporary place for custody upon the request of the Requesting State.

Chapter III

Request Made to Foreign States for Extradition

Article 47 When requesting a foreign state to grant extradition or transit for extradition, the adjudicative organ, procuratorate
organ, public security organ, state security organ or prison administration organ responsible for handling the case concerned in
a province, autonomous region and municipality directly under the Central Government shall submit its written opinions accompanied
by relevant documents and material with certified correct translation respectively to the Supreme People’s Court, the Supreme People’s
Procuratorate, the Ministry of Public Security, the Ministry of State Security and the Ministry of Justice. After the Supreme People’s
Court, the Supreme People’s Procuratorate, the Ministry of Public Security, the Ministry of State Security and the Ministry of Justice
have, respectively in conjunction with the Ministry of Foreign Affairs, reviewed the opinions and approved to make the request, the
request shall be submitted to the foreign state through the Ministry of Foreign Affairs.

Article 48 Under urgent circumstances, before a formal request for extradition is made, the request to take compulsory measures
against the person concerned may be submitted to the foreign state through diplomatic channels or other channels consented by the
Requested State.

Article 49 The instruments, documents and material required for request for extradition, for transit for extradition, or for
taking compulsory measures shall be submitted in accordance with the provisions of extradition treaties, or where there are no such
treaties or no such provisions in such treaties to go by, the provisions of Sections 2, 4 and 7 of this Chapter may be applied mutatis
mutandis, or where the Requested State raises specific requirements, those requirements may be complied with on condition that the
basic principles contained in the laws of the People’s Republic of China are not violated.

Article 50 Where the Requested State grants extradition with strings attached, the Ministry of Foreign Affairs may, on behalf
of the Government of the People’s Republic of China, make assurance on con

RESOLUTION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON CONTINUED DISSEMINATION OF AND EDUCATION IN THE LEGAL SYSTEM

Resolution of the Standing Committee of the National People’s Congress on Continued Dissemination of and Education in the Legal System

Dissemination of and education in the legal system, which began in 1986, has been going on for ten years and has played a positive
role in enhancing the whole nation’s understanding of the legal system, promoting the development of socialist democracy and the
socialist legal system and ensuring success in reform and the open policy and progress of the socialist modernization drive. In order
to meet the need of building and improving the system of a socialist market economy and promoting fulfillment of the Ninth Five-Year
Plan for national economic and social development and attainment of the Outline of the Long-Range Objectives through the Year 2010,
the Standing Committee of the National People’s Congress believes that it is necessary to implement a third five-year plan (1996-2000)
for dissemination of and education in the legal system among citizens. The purpose is, through continued and deepened dissemination
of and education in the legal system, focusing on the Constitution, the basic laws and the knowledge of laws governing the socialist
market economy, to further enhance all citizens’ conception of the legal system and their awareness of the importance of laws, help
cadres at all levels steadily raise their level and increase their ability of handling matters and administering affairs in accordance
with law, see to it that acts mut be compatible with the existing laws, laws must be enforced strictly and any violation of law must
be investigated, and push forward the process of administering State affairs according to law and building the country under a socialist
legal system. Hence, the Standing Committee has adopted the resolution as follows:

1. All citizens who are able to do so should receive publicity of and education in the legal system and carefully study the Constitution
and acquire knowledge of the relevant laws, so that they will be able to understand the laws, observe them and protect the lawful
rights and interests of the State, the collective and the individual in accordance with law.

2. Leading cadres at all levels, senior leading cardres in particular, should take the lead in studying the Constitution and acquiring
knowledge of the laws, abiding by the Constitution and laws and handling matters strictly in accordance with law, so that they will
make policy decisions and administer affairs according to law.

Cadre schools of all types and at all levels should make education in the legal system a required course. When examining or appraising
their cadres, all departments and local authorities should see whether they have acquired the necessary knowledge of laws and whether
they can handle matters strictly in accordance with law, which should be made one of the major qualifications.

3. Law-enforcing officers of judicial organs and administrative law- enforcing organs should, according to need of their work, receive
training in the knowledge of laws, proficiently master and apply the laws and rules and regulations as required by their own jobs,
enhance their own understanding of laws and perform their duties in accordance with law, so that they can administer affairs according
to law and execute justice impartially.

4. Managers and administers of enterprises and institutions should make mastery of the knowledge of the laws governing the socialist
market economy a necessary qualification and study the relevant laws, rules and regulations in connection with the actual conditions
of their own enterprise or institution, so that they can manage or administer affairs strictly in accordance with law, conscientiously
observe market order and safeguard public interests.

5. Teenagers should acquire the necessary knowledge of laws. Universities, colleges, secondary schools (including the secondary
technical schools) and primary schools should all offer education in the legal system. Organizations at the grassroots level should
pay attention to education in the general knowledge of laws among teenagers in society at large.

6. Vivid dissemination of and education in the legal system should be conducted in different forms to suit the different characteristics
of people and stress should be placed on actual results. Departments of culture, the press, publishing, radio, television and film
should give full play to the important role of the mass media and actively disseminate and conduct education in the legal system.

7. Dissemination of and education in the legal system should be conducted in connection with the application of the system and the
actual economic and social development and with the aim of promoting the lawful management of all undertakings. Lawful administration
of the affairs of a village, town, county, city or province and lawful management of different trades and departments should be promoted
with the high aim of administering State affairs according to law in mind.

8. Implementation of the third five-year plan for disseminating and conducting education in the legal system among citizens and its
continued and deepened dissemination and education are the common obligation of the society as a whole and must be accomplished under
the leadership of the Chinese Communist Party and by mobilizing and relying on all sectors of the society. All State organs and armed
forces, all political parties and public organizations, and all enterprises and institutions should conscientiously disseminate and
conduct education in the legal system among citizens working in there. The standing committees of the people’s congresses and the
people’s governments at all levels should exercise firm leadership and supervision over the implementation of the plan and this Resolution
and take effective measures to carry out the work steadily as a regular practice and make it a rule, so that studying and applying
laws and handling matters in accordance with law will become a social conduct throughout the society and a good legal environment
will be created for reform and the open policy and for the socialist modernization drive.

MOFTEC P.R.C.

EDITOR:Victor

CIRCULAR OF THE CHINA INSURANCE REGULATORY COMMISSION ON THE INTERIM MEASURES ON THE ADMINISTRATION OF CONCURRENT-BUSINESS INSURANCE AGENCY

The China Insurance Regulatory Commission

Circular of the China Insurance Regulatory Commission on the Interim Measures on the Administration of Concurrent-business Insurance
Agency

BaoJianFa [2000] No.144

August 4, 2000

Chapter I General Provisions

Article 1

These Measures are enacted in accordance with the “Insurance Law of the People’s Republic of China” in order to strengthen the administration
of concurrent-business insurance agents, regulate the acts of concurrent-business insurance agencies, maintain the order of the insurance
market, and promote the healthy development of the insurance industry.

Article 2

Concurrent-business insurance agents shall refer to the entities which are entrusted by the insurers to handle insurance business
on behalf of the latter at the time of engaging in their own business.

Article 3

Concurrent-business insurance agents shall, when engaging in the business of insurance, abide by the relevant laws and regulations
of the State and administrative rules, and shall comply with the principles of volunteerism, honesty and credibility.

Article 4

The legal liabilities occurred from a concurrent-business insurance agent’s agency of insurance business within the scope of the insurer’s
authorization shall be borne by the insurer.

Article 5

No party or governmental organization or its functional department, public institution or social organization shall engage in the
business of insurance agency.

Chapter II Administration on the Agency Qualifications

Article 6

The application for the qualification of concurrent-business insurance agent and the modification of relevant contents shall be reported
by the principal insurance company to China Insurance Regulatory Commission (hereinafter referred to as “CIRC”) for approval.

Article 7

Whoever applies for the qualification for concurrent-business insurance agency shall meet the following conditions:

(1)

having the business license checked and issued by the administrative organ of industry and commerce;

(2)

having the source of a certain scale of business of insurance agency directly relating to its major business;

(3)

having a fixed business premises;

(4)

having the conveniences to directly undertake the agency of insurance business in its business premises.

Article 8

Whoever applies for the qualification for concurrent-business insurance agency shall submit the following documents to CIRC:

(1)

an application form for the qualification to be a concurrent-business insurance agent (in triplet);

(2)

a duplicate of the copy of industrial and commercial business license;

(3)

a duplicate of the “Organization Code Certificate”;

(4)

a computer data disk for applying for the qualification to be a concurrent-business insurance agent;

(5)

a duplicate of the principal insurance company’s “License for Operating Insurance Business”;

(6)

2006

CIRCULAR OF THE GENERAL ADMINISTRATION OF CUSTOMS AND THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION CONCERNING NECESSARY CERTIFICATES...

OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION ON GRANTING THE REFUND FOR THE EXPORT BEET PULPS

CIRCULAR OF THE STATE COUNCIL CONCERNING SEVERAL POLICIES ON CARRYING OUT THE DEVELOPMENT OF CHINA’S VAST WESTERN REGIONS

OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION CONCERNING THE CREDIT OF BUSINESS INCOME TAX OF ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES PURCHASING DOMESTIC EQUIPMENT

CIRCULAR OF STATE ADMINISTRATION OF TAXATION CONCERNING THE ISSUE OF HANDLING THE TAXATION OF ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES ENGAGED IN CONSULTING BUSINESSES

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION (MOFTEC) ON CANCELLATION OF THE EXAMINATION AND APPROVAL FOR THE ESTABLISHMENT OF BRANCHES OF INTERNATIONAL FORWARDERS IN ALREADY APPROVED OPERATING AREAS

EXTRADITION LAW

RESOLUTION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON CONTINUED DISSEMINATION OF AND EDUCATION IN THE LEGAL SYSTEM

CIRCULAR OF THE CHINA INSURANCE REGULATORY COMMISSION ON THE INTERIM MEASURES ON THE ADMINISTRATION OF CONCURRENT-BUSINESS INSURANCE AGENCY

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