INTERIM MEASURES FOR ADMINISTRATION OF CHINESE-FOREIGN JOINT VENTURE AND COOPERATIVE MEDICAL INSTITUTIONS

Decree of the Ministry of Health and the Ministry of Foreign Trade and Economic Cooperation

No.11

The Interim Measures for Administration of Chinese-foreign Joint Venture and Cooperative Medical Institutions are hereby promulgated
and shall come into force as of July 1, 2000.
Minister of the Ministry of Health: Zhang Wenkang

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

May 15,2000

Interim Measures for Administration of Chinese-foreign Joint Venture and Cooperative Medical Institutions
Chapter I General Provisions

Article 1

These Measures are formulated in accordance with the pertinent state laws and administrative regulations such as the Law of the People’s
Republic of China on Chinese-foreign Equity Joint Ventures, the Law of the People’s Republic of China on Chinese-Foreign Contractual
Joint Ventures, the Regulations for the Administration of Medical Institutions for the purpose of further catering to the needs of
reforms and opening up to the outside world, enhancing the administration of Chinese-foreign joint equity venture and cooperative
medical institutions and promoting the healthy development of the medical and health undertakings of the country.

Article 2

The term “Chinese-foreign joint venture medical institutions and Chinese-foreign cooperative medical institutions” as used for the
purpose of these Measures refers to the medical institutions established in the forms of joint venture or cooperation by foreign
medical institutions, companies, enterprises or other economic organizations (hereinafter referred to as foreign joint venturers
or foreign cooperators) with Chinese medical institutions, companies, enterprises or other economic organizations (hereinafter referred
to as Chinese joint venturers or cooperators) within the territory of China (Hong Kong, Macao and Taiwan are excluded, same below)
on the basis of the principle of equality and mutual benefit and on approval by the Chinese government.

Article 3

These Measures shall apply to applications for the establishment within the territory of China of Chinese-foreign joint venture or
cooperative medical institutions.

Article 4

Chinese-foreign joint venture medical institutions and Chinese-foreign cooperative medical institutions shall abide by the pertinent
laws, administrative regulations and rules of the state. The legitimate operational activities of Chinese-foreign joint venture and
cooperative medical institutions and the lawful rights and interests of parties thereto shall be protected by the laws of the land.

Article 5

The Ministry of Health and the Ministry of Foreign Trade and Economic Cooperation (hereinafter referred to as the MOFTEC) shall be
responsible for the administration of Chinese-foreign joint venture and cooperative medical institutions in accordance with the division
of functions between the two ministries.

The administrative departments of health (including the competent departments in charge of Chinese traditional medicine/treatment)
and the administrative departments of foreign trade and economic cooperation at and above the county level shall be responsible for
the administration of Chinese-foreign joint venture and cooperative medical institutions in their respective regions of jurisdiction
according to their respective spheres of responsibility.

Chapter II Conditions for Establishment

Article 6

Chinese-foreign joint venture and cooperative medical institutions shall be established and developed in line with the local regional
health programs and the local regional plan for the establishment of medical institutions, and be governed by the Basic Standards
for Medical Institutions formulated by the Ministry of Health.

Article 7

The Chinese and foreign parties that apply for the establishment of a Chinese-foreign joint venture medical institution or a Chinese-foreign
cooperative medical institution shall be legal persons who can independently bear their civil liabilities. The Chinese and foreign
parties to a joint venture medical institution or a cooperative medical institution shall have direct or indirect experience in medical
and health investment and management, and shall answer to one of the following requirements:

They are in a position to provide internationally advanced managerial experience in managing medical institutions, modes of management
and modes of services;

They are able to provide international cutting-edge medical technologies and equipment, and

They can complement or make up for the inadequacy of local medical service capacity, medical treatment technologies, funding and medical
facilities.

Article 8

A Chinese-foreign joint venture or cooperative medical institution which has already been established shall satisfy the following
conditions:

It has to be an independent legal person;

The total amount of investment must not fall below RMB20 million yuan;

The equity proportion or interest the Chinese party to a Chinese-foreign joint venture medical institution or a cooperative medical
institution hold therein shall not be less than 30%;

The period of the joint venture or the cooperative medical institution shall not be longer than 20 years; and

Other conditions laid down by the administrative departments of health at or above the provincial level.

Article 9

The Chinese party to a joint venture of cooperative medical institution shall obtain the approval from the corresponding competent
department of its investment therein with state-owned assets (including priced investment or as a condition for cooperation).The
assets shall, in accordance with the pertinent provisions on the administration of asset valuation, be appraised by an asset appraisal
agency recognized by the department of administration of state-owned assets before they are used as investment therein. The appraisal
result of state-owned assets which are confirmed by an administrative department of state-owned assets at or above the provincial
level may be taken as the basis of pricing the state-assets to be invested in a joint venture or cooperative medical institution.

Chapter III Examination, Approval and Registration of Establishment

Article 10

Application for the establishment of a Chinese-foreign joint venture or cooperative medical institution shall first be submitted
to an administrative department of health at the municipal level (cities at the prefecture level) and the following documentary information
shall be provided:

A written application for the establishment of a medical institution;

Project proposals signed by the legal representatives of the Chinese and foreign parties to the joint venture or cooperative medical
institution, and the feasibility study report on the establishment of the Chinese-foreign joint venture or cooperative medical institution;

The registration certificates (photocopies) of the Chinese and foreign legal representatives, the identity certificates (photocopies)
of the Chinese and foreign legal representatives and the creditworthiness certificates from their bankers and

The document of confirmation from the administrative department of state-owned assets of the appraisal report on the state-owned assets
to be used as investment therein.

The administrative department of health at the municipal level (cities at the prefecture level) shall conduct a preliminary examination
of the documents the applicants have provided, and come up with preliminary opinions in light of the regional health program and
the regional plan for the establishment of medical institutions. It shall submit its preliminary opinions together with the application
documents and the regional health program and the regional plan for the establishment of medical institutions to the administrative
department of health of the province where it is located for examination.

Article 11

The administrative department at the provincial level shall, upon completion of the examination thereof, submit the application documents
and the preliminary opinions of the municipal (city at the prefecture level) health administration department to the Ministry of
Health for examination and approval.

The administrative department of health at the provincial level shall, in submitting the above listed documents for approval, provide
the following documentary information to the Ministry of Health:

the applicants’ documents of application for the establishment;

the Plan for the Establishment of Medical Institutions promulgated upon approval by the people’s government at the municipal level
in the locality of the establishment of the medical institution, and the examination opinions of the administrative departments of
health at the provincial and municipal levels about whether the proposed establishment of the Chinese-foreign joint venture or cooperative
medical institution conforms to the local regional health program and the plan for the establishment of medical institutions;

the examination opinions of the administrative department of health at the provincial level about the establishment of the Chinese-foreign
joint venture or cooperative medical institution, which include its opinions on the name, sitting, size (number of hospital beds
and dentist chairs), subjects and items of consultation and period of operation, etc. of the proposed Chinese-foreign joint venture
or cooperative medical institution; and

other documentary information the submission of which is prescribed by the pertinent laws, administrative regulations and the Ministry
of Health.

The Ministry of Health shall, within 43 working days as of the date of acceptance, make a written decision on whether to approve or
disapprove the application.

Article 12

Applications for the establishment of Chinese-foreign joint venture or cooperative medical institutions of Chinese traditional medicine
(including Chinese-foreign joint venture or cooperative medical institutions that combine Western medicine with traditional Chinese
medicine and Chinese-foreign joint venture or cooperative medical institutions for ethnic medicine) shall be preliminarily examined
by the municipal administrative departments of health in the localities where the medical institutions are to be established and
be re-examined by the provincial administrative departments of health in the localities where they are to be established in accordance
with the requirements in Articles 10 and 11 of these Measures, and be submitted to the State Administration of Traditional Chinese
Medicine, which shall, upon completion of examination, refer same to the Ministry of Health for approval.

Article 13

The applicant shall, upon acquisition of the approval of establishment from the Ministry of Health, apply to the MOFTEC in accordance
with the relevant laws and administrative regulations, and provide the following documentary information thereto:

documents submitted on the application for the establishment of the medical institution and approval documents;

the contract and articles of association of the Chinese-foreign joint venture or cooperative medical institution signed by the legal
representatives or their authorized representatives of the Chinese and foreign parties thereto;

a name list of the members of the board of directors of the proposed Chinese-foreign joint venture or cooperative medical institution
and the letters of appointment of the members of the board of directors from the Chinese and foreign parties thereto;

the letter of notification on the advance approval of the name of the medical institution issued by the relevant department of administration
for industry and commerce; and

other documentary information which is prescribed by the relevant laws, administrative regulations and the MOFTEC.

The MOFTEC shall, within 45 working days as of the date of acceptance of the application, make a written decision on whether to approve
or disapprove the application. Once an application is approved, the applicant shall be issued with the Approval Certificate for Enterprises
with Foreign Investment.

A Chinese-foreign joint venture or cooperative medical institution the establishment of which has been approved shall, within one
month as of the date of receipt of the Approval Certificate for Enterprises with Foreign Investment issued by the MOFTEC, approach,
by dint of the approval certificate, the relevant state administrative department for industry and commerce for the execution of
the registration formalities.

Article 14

The conditions on the establishment of Chinese-foreign joint venture or cooperative medical institutions as contained in Articles
7 and 8 of these Measures may be appropriately eased with regard to the establishment of Chinese-foreign joint venture or cooperative
medical institutions in the central and western regions of China or in the areas that were liberated every early during the Chinese
revolution, areas inhabited by ethnic minorities, border areas and poor areas of the country, if the scope and contents of the medical
services to be provided by the proposed Chinese-foreign joint venture or cooperative medical institutions belong with the areas of
medical services the state encourages.

Article 15

A Chinese-foreign joint venture or cooperative medical institution the establishment of which has been approved shall, in accordance
with the provisions on the procedures and requirements concerning the practice registration of medical institutions as contained
in the Regulations on the Administration of Medical Institutions and the Implementation Rules for the Regulations on the Administration
of Medical Institutions, apply for practice registration at the administrative department of health designated by the administrative
department of health at the provincial level and for the obtainment of the Practice Permit for Medical Institutions.

The administrative departments of health at the provincial level shall, on the basis of the category and size of Chinese-foreign joint
venture or cooperative medical institutions, determine whether the applications for practice registration of Chinese-foreign joint
venture or cooperative medical institutions shall be accepted by the administrative departments of health at the provincial level
or by municipal (cities at the prefecture level) administrative departments of health.

Article 16

The naming of Chinese-foreign joint venture or cooperative medical institutions shall be guided by the provisions of the Rules of
Implementation for the Regulations on the Administration of Medical Institutions. The name of a Chinese-foreign joint venture or
cooperative medical institution shall consist of the name of the place where it is located, its post_title for identification and its
general name in that order.

Article 17

No Chinese-foreign joint venture or cooperative medical institution shall be allowed to set up subsidiaries or branches.

Chapter IV Changes, Extension and Termination

Article 18

The change of the size (number of hospital beds and dentist chairs), subjects and items of consultation, the period of joint venture
or cooperation of the Chinese-foreign medical institution already established shall, in accordance with the procedures of examination
and approval as prescribed in the provisions of Chapter III of these Measures, go through the corresponding formalities for the registration
thereof at the original registration department upon examination and approval by the original examining and approving authorities.

Changes in Chinese-foreign joint venture or cooperative medical institutions and in certain clauses of their contracts and articles
of association shall be referred by the local departments of foreign trade and economic cooperation to the MOFTEC for approval.

Article 19

Where the 20-year period of joint venture or cooperation of a Chinese-foreign joint venture or cooperative medical institution has
run out and there has arisen the need for an extension of the period of joint venture or cooperation due to extraordinary circumstances,
the parties to the Chinese-foreign joint venture or cooperative medical institution may apply for an extension thereof and they shall
submit an application for extending the period of joint venture or cooperation 90 days before the end of the period of joint venture
or cooperation. The application for an extension of the period of joint venture or cooperation shall, upon the consent through examination
by the provincial administrative department of health and the provincial department of foreign trade and economic cooperation, be
submitted to the Ministry of Health and the MOFTEC for examination and approval. The examining and approving department shall, within
45 working days as of the date of receipt of the application, make a written decision on whether to approve or disapprove the application
for extension.

Article 20

The Chinese-foreign joint venture or cooperative medical institutions whose establishment has been approved shall go through all
the procedures relating to the registration thereof within the given time limit prescribed by the examining and approving departments;
the joint venture project shall, upon approval by the examining and approving department, be cancelled if a Chinese-foreign joint
venture or cooperative medical institution has failed to complete the registration procedures within the given time limit.

Chapter V Practice

Article 21

A Chinese-foreign joint venture or cooperative medical institution shall, as an independent legal person entity, be responsible for
its own profits and losses, and exercise independent accounting and independently bear its own civil liabilities.

Article 22

A Chinese-foreign joint venture or cooperative medical institution shall implement the provisions pertaining to the practice of medical
institutions as contained in the Regulations on the Administration of Medical Institutions and the Rules of Implementation for the
Regulations on the Administration of Medical Institutions.

Article 23

Chinese-foreign joint venture or cooperative medical institutions shall abide by the norms for access to medical technologies and
norms for clinical diagnostic and medical treatment, and implement the provisions on the clinical application of new technologies,
new equipment and huge-sized medical equipment.

Article 24

Medical accidents that occur in Chinese-foreign joint venture or cooperative medical institutions shall be dealt with according to
the pertinent state laws and administrative regulations.

Article 25

The employment of foreign doctors and nurses by Chinese-foreign joint venture or cooperative medical institutions shall be handled
in accordance with the relevant provisions in the Law of the People’s Republic of China on Medical Practitioners and the Measures
of the People’s Republic of China for the Administration of Nurses.

Article 26

The Chinese-foreign joint venture or cooperative medical institutions and their medical and technical personnel shall obey the assignments
from the administrative departments of health when major disasters, accidents, the eruption of epidemics or other unexpected circumstances
have taken place in China.

Article 27

Advertisements to be released by Chinese-foreign joint venture or cooperative medical institutions shall be handled in accordance
with the Advertisement Law of the People’s Republic of China and the Measures for the Administration of Medical Advertisements.

Article 28

The rates for the charges on the medical services provided by Chinese-foreign joint venture or cooperative medical institutions shall
be governed by the relevant state provisions.

Article 29

The tax policy towards Chinese-foreign joint venture or cooperative medical institutions shall be based on the relevant state provisions.

Chapter VI Supervision

Article 30

The local administrative departments of health at or above the county level shall be responsible for the day-to-day supervision of
the Chinese-foreign joint venture or cooperative medical institutions in their respective administrative areas.

The Practice Permit of Medical Institutions of Chinese-foreign joint venture or cooperative medical institutions shall be subjected
to annual inspections and be verified by the registration departments of the Chinese-foreign joint venture or cooperative medical
institutions.

Article 31

Chinese-foreign joint venture or cooperative medical institutions shall readily submit themselves to the supervision by the relevant
departments of the state in accordance with the pertinent state provisions on enterprises with foreign investment.

Article 32

Violations of the pertinent laws, administrative regulations and rules by Chinese-foreign joint venture or cooperative medical institutions
shall be investigated and dealt with by the competent departments according to law. Chinese-foreign joint venture or cooperative
medical institutions that have violated these Measures may be punished by the administrative departments of health and departments
of foreign trade and economic cooperation at or above the county level in accordance with the relevant laws, administrative regulations
and rules.

Article 33

Where local administrative departments of health and local administrative departments of foreign trade and economic cooperation have,
in contravention of the provisions of these Measures, approved, without authorization, the establishment of, and changes in Chinese-foreign
joint venture or cooperative medical institutions, responsibilities shall be pursued against those are in charge thereof.

Where parties to a Chinese-foreign joint venture or cooperative medical institution which has, in the absence of approval from the
Ministry of Health and the MOFTEC, established the institution and has conducted medical activities or has operated subjects and
items of consultation in the form of a contract, it shall be regarded as unlawful medical practice and be penalized in accordance
with the pertinent provisions as contained in the Regulations on the Administration of Medical Institutions and the Rules of Implementation
for the Regulations on the Administration of Medical Institutions.

Chapter VII Supplementary Provisions

Article 34

The joint venture or cooperative medical institutions set up in the mainland by investors from the Hong Kong Special Administrative
Region, the Macao Special Administrative Region and the Taiwan region shall be governed with reference to these Measures.

Article 35

Applications for the establishment of wholly medical institutions with foreign investment within the territory of China shall not
be approved.

Article 36

The administrative departments of health and the administrative departments of foreign trade and economic cooperation of the various
provinces, autonomous regions and municipalities directly under the Central Government may draw up specific provisions in accordance
with these Measures and in light of the actual local conditions of their respective administrative regions.

Article 37

These Measures shall be interpreted by the Ministry of Health and the Ministry of Foreign Trade and Economic Cooperation.

Article 38

These Measure shall come into in force as of July 1, 2000. Document WeiYi Zi (89) No. 3 released on February 10, 1989 and Document
Wei Jing Mao Fa (1997) No. 292 released on April 30, 1997 shall fall null and void simultaneously.

The Ministry of Health, the Ministry of Foreign Trade and Economic Cooperation
2000-05-15

CIRCULAR OF THE PEOPLE’S BANK OF CHINA, THE STATE ADMINISTRATION OF FOREIGN EXCHANGE, THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION AND THE STATE ADMINISTRATION OF TAXATION CONCERNING PRINTING AND DISTRIBUTING DETAILED RULES ON REWARDING AND PUNISHMENT CONCERNING PROVISIONAL REGULATIONS OVER EXAMINATION OF EXPORT COLLECTIONS OF FOREIGN EXCHANGE

Circular of the People’s Bank of China, the State Administration of Foreign Exchange, the Ministry of Foreign Trade and Economic Cooperation
and the State Administration of Taxation Concerning Printing and Distributing Detailed Rules on Rewarding and Punishment Concerning
Provisional Regulations over Examination of Export Collections of Foreign Exchange

YinFa [2000] No.58
February 17, 2000

All branches and operation administrative departments of the People’s Bank of China (hereinafter “PBC”); all Sub-bureaus of the State
Administration of Foreign Exchange (hereinafter “SAFE”), the Beijing and Chongqing Foreign Exchange Departments, Dalian, Qingdao,
Ningbo, Xiamen and Shenzhen Sub-bureaus; Foreign trade and economic cooperation commissions (departments, bureaus) of the various
provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State
plan, State Administration of Taxation, All foreign trade centers and related parent companies:

In order to carry out the spirit of supporting excellent enterprises and restricting enterprises which do not behave well in the document
Provisional Regulations over Examination of Export Receipts of Foreign Exchange, the People’s Bank of China, the State Administration
of Foreign Exchange, the Ministry of Foreign Trade and Economic Cooperation and the State Administration of Taxation draw together
the Detailed Rules on Rewarding and Punishment Concerning Provisional Regulations over Examination of Export Collections of Foreign
Exchange. It is hereby printed and distributed to you for implementation. On receiving this circular, it shall be transmitted to
sub-branches of PBC , sub-bureaus of SAFE ,all foreign economic and trade departments and state administrations of taxation throughout
the country in no time.

There is hereby the notification.

Attachment:
Detailed Rules on Rewarding and Punishment Concerning Provisional Regulations over Examination of Export Collections of Foreign Exchange

Article 1

For the purpose of expanding exports, supporting excellent enterprises and restricting enterprises which do not behave well in regard
to export receipts of foreign exchange, this Detailed Rules was formulated in accordance with the document Provisional Regulations
over Examination of Export Receipts of Foreign Exchange, issued by the State Administration of Foreign Exchange (SAFE) and the Ministry
of Foreign Trade and Economic Cooperation (MOFTEC).

Article 2

“Honorable Enterprises for Collection of Export Receipts of Foreign Exchange”, “Ordinary Enterprises for Collection of Export Receipts
of Foreign Exchange”, “Risky Enterprises for Collection of Export Receipts of Foreign Exchange”, and “High-risky Enterprises for
Collection of Export Receipts of Foreign Exchange”, as referred to in this Detail Rules, are foreign trade enterprises classified
in the light of criteria specified in the Provisional Regulations over Examination of Export Receipts of Foreign Exchange and of
their behaviors concerning collection of export receipts of foreign exchange during annual examination.

Article 3

In order to encourage large-scaled enterprises to export, enterprises are treated as “Honorable Enterprises for Collection of Export
Receipts of Foreign Exchange” if their annual export value reach $ 0.2 billion (Positive lists are provided by MOFTEC), ratios of
export receipts of foreign exchange are above 85%, and ratios of surrendered verification forms of export receipts are above 80%.

Article 4

“Honorable Enterprises for Collection of Export Receipts of Foreign Exchange” will be commended by SAFE and MOFTEC by means of publishing
in newspaper, and will be notified to customs, tax bureaus and banks.

Article 5

“Honorable Enterprises for Collection of Export Receipts of Foreign Exchange” will be given top-priority by MOFTEC when competing
for Foreign Trade Development Fund, International Economic Cooperation Fund, Fund for Joint Venture or Cooperation Program of Foreign
Aid, and etc., or be given preferential treatment when bidding for exportation of goods.

Article 6

Lending rates of RMB loans extended by commercial banks to “Honorable Enterprises for Collection of Export Receipts of Foreign Exchange”
are allowed be lowered up to 10% on the basis of the lending rates fixed by the People’s Bank of China (PBC).

Article 7

For “Honorable Enterprises for Collection of Export Receipts of Foreign Exchange”, the deadlines before which they must repatriate
their foreign exchange profits and other foreign exchange receipts gained from overseas investments are extended from 6 months to
one year with the approval of the head office or branches of SAFE (hereinafter as the SAFE in Brief). “Honorable Enterprises for
Collection of Export Receipts of Foreign Exchange” are exempt from guarantee deposits for repatriation of their profits.

Article 8

Annual examination over foreign exchange accounts of “Honorable Enterprises for Collection of Export Receipts of Foreign Exchange”
shall be speeded up and shifted from concentrated examination to examination one by one at real time.

Article 9

Deposit ceiling of foreign exchange settlement accounts of “Honorable Enterprises for Collection of Export Receipts of Foreign Exchange”
is raised from 15% to 30% of their current annual export and import value.

Article 10

Facilities are provided to “Honorable Enterprises for Collection of Export Receipts of Foreign Exchange” when going through procedures
of supervision and verification.

Projected date for collection of export receipts of foreign exchange is the same as the date specified in the corresponding export
contract.

Supervision and verification forms for export receipts of foreign exchange are provided according to the real needs of export enterprises.

Special windows will be set up by the SAFE to provide supervision and verification forms and to carry out supervision and verification
procedures for “Honorable Enterprises for Collection of Export Receipts of Foreign Exchange”.

Article 11

For “Honorable Enterprises for Collection of Export Receipts of Foreign Exchange” which are not included into the list of enterprises
whose imports must be examined by the SAFE to ensure their authenticity, banks are allowed to release foreign exchange to them before
rechecking the relevant declaration forms, provided that the import date showed in the declaration forms was before September 1,
1998, payments was made before imported goods were delivered, and declared import value was lower than $500,000. For importation
conducted after September 1, 1998, foreign exchange shall be released after the authenticity of the declaration forms is examined
through the Network of Import and Export Declaration Form Verification System.

Article 12

For “Honorable Enterprises for Collection of Export Receipts of Foreign Exchange” which are grouped under “Category B Enterprises”
in accordance with the document GuoShuiFa [1998] No. 95, Notification of the State Administration of Taxation (SAT) on Classifying
Enterprises into Different Categories to Conducting Export Tax Rebate or Exemption, export tax shall be rebated in the same way as
“Category B Enterprises” (“Honorable Enterprises for Collection of Export Receipts of Foreign Exchange” which are grouped under “Category
A Enterprises” are excluded from this provision).

Article 13

SAFE and MOFTEC will notify “High-risky Enterprises for Collection of Export Receipts of Foreign Exchange” to news media, and to
customs, tax bureaus and banks.

Article 14

“High-risky Enterprises for Collection of Export Receipts of Foreign Exchange” will be examined rigidly by MOFTEC when competing
for Foreign Trade Development Fund, International Economic Cooperation Fund, Fund for Joint Venture or Cooperation Program of Foreign
Aid, and etc..

Article 15

SAFE will intensify its management of issuance of supervision and verification forms and of supervision and verification procedures
to “High-risky Enterprises for Collection of Export Receipts of Foreign Exchange”.

Article 16

“Risky Enterprises for Collection of Export Receipts of Foreign Exchange” and “High-risky Enterprises for Collection of Export Receipts
of Foreign Exchange” are treated as “Category C Enterprises” when conducting export tax rebate (“Risky Enterprises for Collection
of Export Receipts of Foreign Exchange” and “High-risky Enterprises for Collection of Export Receipts of Foreign Exchange” which
are grouped under “Category D Enterprises” are treated as “Category D Enterprises” when conducting export tax rebate).

Article 17

Lending rates of RMB loans extended by commercial banks to “High-risky Enterprises for Collection of Export Receipts of Foreign Exchange”
are allowed to be raised up to 30% on the basis of the lending rates fixed by PBC.

Article 18

post_titles of “Honorable Enterprises for Collection of Export Receipts of Foreign Exchange”, “Ordinary Enterprises for Collection of
Export Receipts of Foreign Exchange”, “Risky Enterprises for Collection of Export Receipts of Foreign Exchange”, and “High-risky
Enterprises for Collection of Export Receipts of Foreign Exchange” will be null and void one year after being given to enterprises.

Article 19

If one enterprise is evaluated as “High-risky Enterprises for Collection of Export Receipts of Foreign Exchange” for one year or
as “Risky Enterprises for Collection of Export Receipts of Foreign Exchange” for two consecutive years, its rights to undertaking
import and export business will be suspended by MOFTEC or by any institution in charge of foreign trade and economy authorized by
MOFTEC.

Article 20

PBOC, SAFE, SAT and MOFTEC are responsible for the interpretation of this Detailed Rules.

Article 21

These Detailed Rules will enter into force as of April 1, 2000.

The People’s Bank of China, the State Administration of Foreign Exchange, the Ministry of Foreign Trade and Economic
Cooperation, the State Administration of Taxation
2000-02-17

BID INVITATION AND BIDDING LAW

Law of the People’s Republic of China on Bid Invitation and Bidding

(Adopted at the 11th Meeting of the Standing Committee of the Ninth National People’s Congress on August 30, 1999
and promulgated by Order No. 21 of the President of the People’s Republic of China on August 30, 1999)

Contents

Chapter I General Provisions

Chapter II Bid Invitation

Chapter III Bidding

Chapter IV Opening, Evaluation and Winning of Bids

Chapter V Legal Liability

Chapter VI Supplementary Provisions

Chapter I

General Provisions

Article 1 This Law is enacted in order to regulate bid invitation and bidding activities, protect the interests of the State and
the public as well as the lawful rights and interests of the parties involved in bid invitation and bidding activities, increase
economic benefits and ensure project quality.

Article 2 This Law is applicable to any bid invitation and bidding activities conducted within the territory of the People’s Republic
of China.

Article 3 The following construction projects to be undertaken within the territory of the People’s Republic of China, including
the surveying, design, construction and supervision of such projects as well as the purchase of key equipment and materials for such
projects, shall be subject to bid invitation:

(1) large infrastructure and public utility projects that concern public interests and security;

(2) projects invested completely or partly with State-owned funds or financed by the State; and

(3) projects using loans or aid funds from international organizations or governments of other countries.

The specific scope and threshold for bidding of the projects listed in the preceding paragraph shall be formulated by the development
planning department under the State Council, together with the relevant departments under the State Council, and be submitted to
the State Council for approval.

Where there are provisions in other laws or in the regulations of the State Council governing scope of other projects for which bid
invitation is required, such provisions shall be followed.

Article 4 No units or individuals may break up into parts a project for which bid invitation is required by law or try to dodge bid
invitation by any other means.

Article 5 Bid invitation and bidding activities shall be conducted in adherence to the principles of openness, fairness, impartiality
and good faith.

Article 6 Bid invitation and bidding for projects for which bid invitation is required by law shall be subject to limitations imposed
by the local authorities or departments. No units or individuals may, in violation of law, impose limitations on legal persons or
other organizations from other regions or departments or exclude them from participating in bidding or illegally interfere, by any
means, in bid invitation and bidding activities.

Article 7 All bid invitation and bidding activities and the parties involved shall be subject to supervision in accordance with law.

Relevant departments for administrative supervision shall, in accordance with law, exercise supervision over bid invitation and bidding
activities, and investigate and deal with any violations of law in such activities.

The division of specific duties and powers among the departments for administrative supervision over bid invitation and bidding activities
and the relevant departments shall be determined by the State Council.

Chapter II

Bid invitation

Article 8 A bid inviter is a legal person or other organization that, in accordance with the provisions of this Law, presents a project
for bidding and calls for bids.

Article 9 Where a project for bidding is required by relevant State regulations to undergo examination for approval, it shall do
so before obtaining approval.

A bid inviter shall have the funds needed for the project for bidding or confirmed sources of funds and the fact shall be truthfully
stated in its bid invitation documents.

Article 10 Bid invitation is classified into two categories: public invitation and invited bidding.

Public invitation means that the bid inviter, in the form of announcement for bidding, invites unspecified legal persons or other
organizations to bid.

Invited biding means that the bid inviter, in the form of written invitation, to invite specified legal persons or other organizations
to bid.

Article 11 Where a national key project determined by the development planning department under the State Council or a local key
project determined by the people’s government of a province, an autonomous region or a municipality directly under the Central Government
is not suited for public invitation, it may be subject to invited bidding with the approval of the said department and the said people’s
government respectively.

Article 12 A bid inviter shall have the right to choose, on its own, a bid invitation agency and entrust it with the handling of
the matters of bid invitation. No units or individuals may, by any means, designate a bid invitation agency for the bid inviter.

A bid inviter who has the capability of preparing documents for bid invitation and arranging for bid evaluation may handle the matters
of bid invitation on its own. No units or individuals may compel the bid inviter to entrust a bid invitation agency with the handling
of such matters.

Where a bid inviter handles, on its own, the matter of bid invitation for a project for which bid invitation is required by law,
he shall register with the relevant department for administrative supervision.

Article 13 A bid invitation agency is an intermediary organization set up in accordance with law to engage in bid invitation as an
agent and provide service in this field.

A bid invitation agency shall satisfy the following conditions:

(1) having a place and the necessary funds for serving as a bid invitation agency;

(2) having the necessary professionals to prepare documents for bid invitation and arrange for bid evaluation; and

(3) having a pool of experts in technology, economics, etc. who meet the qualifications prescribed in Paragraph 3 of Article 37 of
this Law and who can be candidates for members of a bid evaluation committee.

Article 14 The qualifications of a bid invitation agency for engineering projects shall be subject to verification by the administrative
department for construction under the State Council or the people’s government of a province, an autonomous region or a municipality
directly under the Central Government. The specific measures therefor shall be formulated by the administrative department for construction
under the State Council together with the relevant departments under the State Council. The competent departments for verifying the
qualifications of bid invitation agencies in other fields of endeavor shall be determined by the State Council.

There shall be no subordination or other relationship of interest between a bid invitation agency and an administrative organ or
any other State organ.

Article 15 A bid invitation agency shall handle the matters of bid invitation within the scope entrusted to it by the bid inviter
and shall abide by the provisions of this Law regarding the bid inviters.

Article 16 Where a bid inviter adopts public invitation, it shall make an announcement for bidding. An announcement for bidding made
for which bid invitation is required by law shall be published in newspapers, information networks or other medium as are designated
by the State.

In the announcement for bidding shall be clearly stated such particulars as the name and address of the bid inviter, the nature,
number, site and time of the projects involved and the means of obtaining the bid invitation documents.

Article 17 Where a bid inviter adopts invited bidding, it shall send written invitation to at least three specified legal persons
or other organizations that are capable of undertaking the project for bidding and have a good reputation and qualification.

In the written invitation for bidding shall be clearly stated the particulars specified in Paragraph 2 of Article 16 of this Law.

Article 18 Based on the requirements of the project for bidding, a bid inviter may, in its announcement or written invitation for
bidding, request potential bidders to provide certificates and information concerning their competence and business achievements
and examine the qualifications of the potential bidders. Where there are State regulations governing qualifications of the bidders,
such regulations shall be followed.

No bid inviter may, with unreasonable requirements, impose limitations on any potential bidder or exclude them from bidding or discriminate
against them.

Article 19 A bid inviter shall, on the basis of the characteristics and requirements of a project, prepare bid invitation documents.
Such documents shall include technical specifications of the project for bidding, criteria for examination of the bidders’ qualifications,
requirements for bid quotation, bid evaluation criteria, and other substantive requirements and terms, as well as the principal clauses
of a contract to be signed.

Where there are State regulations governing the technology and standards for the project subject to bidding, a bid inviter shall,
in accordance with such regulations, state its requirements in the bid invitation documents.

Where it is necessary to divide a project for bidding into bid lots or to fix a time limit for completion of the project, the bid
inviter shall do it reasonably and shall state it clearly in the bid invitation documents.

Article 20 In a bid invitation document no specified producer or supplier may be demanded or indicated, nor any other particulars
favoring or excluding potential bidders may be contained.

Article 21 A bid inviter may, in light of the specific conditions of a project subject to bidding, make arrangements for potential
bidders to inspect the site of the project.

Article 22 No bid inviter may disclose to others the names and number of the potential bidders who have obtained the bid invitation
documents or other information relating to bid invitation and bidding activities which may affect fair competition.

Where a bid inviter has fixed a base price for bid, it shall keep such price confidential.

Article 23 Where necessary clarifications or modifications are to be made in the bid invitation documents already issued, the bid
inviter shall notify in writing all the recipients of the documents at least 15 days prior to the deadline for submission of bid
documents set in the bid invitation documents. Such clarifications or modifications shall be a component of the bid invitation documents.

Article 24 A bid inviter shall set a reasonable period of time for bidders to prepare their bid documents; but for a project for
which bid invitation is required by law, the minimum period from the date of issuing the bid invitation documents to the deadline
for submission of bid documents by bidders shall be not less than 20 days.

Chapter III

Bidding

Article 25 A bidder is a legal person or other organization, that, in response to a bid invitation, participates in the competition.

Where individuals are allowed to participate in the bidding for a scientific research project subject to bidding in accordance with
law, the provisions of this Law on bidders shall be applicable to them.

Article 26 A bidder shall have the capability of undertaking the projects that are subject to bidding invitation. Where in relevant
State regulations or bid invitation documents there are provisions governing qualifications of bidders, a bidder shall meet such
qualifications.

Article 27 A bidder shall prepare its bid documents in compliance with the requirements set in the bid invitation documents. The
bid documents shall be prepared in response to the substantive requirements and terms specified in the bid invitation documents.

Where a project subject to bid invitation is a construction project, the bid documents shall include such information as the resume
and professional achievements of the project director and chief technicians to be assigned and the mechanical equipment to be employed
for completion of the project in question.

Article 28 A bidder shall deliver its bid documents to the place of submission prior to the deadline for submission set in the bid
invitation documents. Upon receiving the bid documents, the bid inviter shall sign for and safe-keep them but may not open them.
Where there are less than three bidders, the bid inviter shall, in accordance with this Law, invite bids anew.

The bid inviter shall refuse to accept any bid documents delivered after the deadline for submission set in the bid invitation documents.

Article 29 Prior to the deadline for submission of bid documents set in the bid invitation documents, a bidder may supplement, modify
or withdraw its bid documents already delivered and shall notify the bid inviter of the same in writing. Such supplements or modifications
shall be a component of the bid documents.

Article 30 Where a bidder, after winning the bid and on the basis of the actual conditions clearly stated in the bid invitation documents,
intends to subcontract some minor or less crucial parts of the project, shall make it clear in the bid documents.

Article 31 Two or more legal persons or other organizations may form a consortium and jointly bid in the capacity of one bidder.

Each party to the consortium shall have the necessary capability of undertaking the project subject to bidding. Where in relevant
State regulations or bid invitation documents there are provisions governing qualifications of bidders, all parties to the consortium
shall meet such qualifications. Where units of the same profession form a consortium, the qualification grade of the consortium shall
be determined on the basis of the unit at a lower qualification level.

All parties to a consortium shall sign an agreement on joint bidding, in which the tasks and responsibilities of each party are clearly
defined, and shall submit to the bid inviter the said agreement together with the bid documents. Where such a consortium wins the
bid, all parties of the consortium shall jointly sign a contract with the bid inviter and bear joint and several liability to the
bid inviter for the bid the consortium wins.

No bid inviter may compel bidders to form a consortium for joint bidding or limit competition among bidders.

Article 32 No bidder may collude with each other in the matter of their quotations or exclude others from fair competition so as
to impair the lawful rights and interests of the bid inviter or the other bidders.

No bidder may collude with the bid inviter in bidding so as to impair the interests of the State and the general public or the lawful
rights and interests of others.

Bidders are prohibited from bribing the bid inviter or members of the bid evaluation committee for the purpose of winning the bid.

Article 33 No bidder may compete for a bid at a price below cost, or to win the bid in the name of another person or by other fraudulent
means.

Chapter IV

Opening, Evaluation and Winning of Bids

Article 34 Opening of bids shall be done in public at the same time as the deadline for submission of bid documents set in the bid
invitation documents; and the place for opening the bids shall be the one predetermined in the said bid invitation documents.

Article 35 Opening of bids shall be presided over by the bid inviter, and all bidders shall be invited to participate.

Article 36 Before bids are opened, the bidders or their elected representatives shall check the sealing of their bid documents, and
the sealing may also be checked and notarized by the notary agency commissioned by the bid inviter. After checking and verifying
that nothing is wrong, a staff member shall open the bids in public and read out the names of the bidders, bid prices and other main
contents in the bid documents.

All the bid documents received by the bid inviter prior to the deadline for submission as required in the bid invitation documents
shall be opened and read out in public at the time when the bids are opened.

The bid opening process shall be recorded, which shall be filed for future examination.

Article 37 The bid evaluation committee established by the bid inviter in accordance with law shall be responsible for evaluation
of the bids.

The bid evaluation committee for a project for which bid invitation is required by law shall be composed of the representatives of
the bid inviter and experts in the relevant technological, economic and other fields. The number of the committee members shall be
an odd number not less than five, among whom, the number of experts in technical, economic and other fields shall be not less than
two-third of the total.

The experts mentioned in the preceding paragraph shall have at least eight years’ experience in relevant fields with senior professional
post_titles or at an equivalent professional level, and they shall be chosen by the bid inviter from the name lists of experts provided
by relevant departments under the State Council or under the people’s governments of provinces, autonomous regions or municipalities
directly under the Central Government, or from the name lists of experts in the relevant fields contained in the pools of experts
provided by bid invitation agencies. For an ordinary project subject to bid invitation, a random choice may be made, but for a special
project, the experts may be chosen directly by the bid inviter.

No one who has a relationship of interest with a bidder may become a member of the bid evaluation committee for the related project.
Where such a person is already a member, he shall be replaced.

The name list of the members of the bid evaluation committee shall be kept confidential before the bidders who win the bid are determined.

Article 38 A bid inviter shall take necessary measures to ensure that bid evaluation is conducted in a strictly confidential manner.

No units or individuals may illegally interfere in or exert influence on the bid evaluation process or results.

Article 39 The bid evaluation committee may ask a bid inviter to make necessary clarification or explanation of the parts of the
bid invitation documents that are not clear in meaning; however, such clarification or explanation may not exceed the scope of the
documents or alter any substantive contents of the documents.

Article 40 The bid evaluation committee shall, in accordance with the evaluation criteria and methods specified in the bid invitation
documents, evaluate and compare all the bid documents, and it shall refer to the base price where there is one available. After the
bid evaluation committee has completed evaluation, it shall present a written report to the bid inviter and recommend the candidates
that are qualified for winning the bid.

The bid inviter shall, based on the written report on bid evaluation presented by the bid evaluation committee, decode on the bid
winner from among the candidates recommended by the said committee. It may also authorize the bid evaluation committee to decide
on the bid winner directly.

Where there are specific regulations formulated by the State Council on bid evaluation of special projects subject to bid invitation,
those regulations shall be followed.

Article 41 The bid offered by a winner shall satisfy one of the following requirements:

(1) it meets, to the maximum extent, all the comprehensive evaluation criteria specified in the bid invitation documents;

(2) it meets the substantive requirements specified in the bid invitation documents and offers the lowest of the bid prices evaluated;
with the exception of the bid price that is below cost.

Article 42 If after evaluation the bid evaluation committee believes that none of the bids satisfies the requirements specified in
the bid invitation documents, it may reject all of them.

Where all the bids for a project for which bid invitation is required by law are rejected, the bid inviter shall invite bids anew
in accordance with this Law.

Article 43 Before the bid winner is decided on, no bid inviter may negotiate with the bidders on such substantive matters as the
bid prices and bidding plans, etc.

Article 44 Members of the bid evaluation committee shall objectively and impartially perform their duties, comply with the code of
professional ethics and be responsible for their own evaluation opinions.

No member of the bid evaluation committee may make any private contact with the bidders, or receive or accept any money, things of
value or other favors from the bidders.

No member of the bid evaluation committee or staff member involved in bid evaluation may disclose any information concerning the
evaluation and comparison of the bid documents, the recommended candidates for winning the bid or any other information relating
to bid evaluation.

Article 45 As soon as the bid winner is decided on, the bid inviter shall notify the winner of the fact in writing and, at the same
time, inform all the unsuccessful bidders of the result.

The notification is legally binding on both the bid inviter and the bid winner. Where after the notification is sent out, the bid
inviter changes the bidding result or the bid winner gives up the bid won, it shall bear legal liability in accordance with law.

Article 46 The bid inviter and the bid winner shall, within 30 days beginning from the date the notification is sent out, sign a
written contract on the basis of bid invitation documents and the bid documents of the winner. They may not conclude any other agreement
contrary to the substantive matters of the contract.

Where in the bid invitation documents the bid winner is required to provide performance security, it shall do so.

Article 47 For a project for which bid invitation is required by law, the bid inviter shall, within 15 days beginning from the date
the bid winner is decided on, submit a written report about the bid invitation and bidding to the relevant department for administrative
supervision.

Article 48 A bid winner shall, in accordance with the provisions of the contract, fulfil its obligations and finish the project.
It may not transfer the bid won to others or break it up into parts and transfer them to others.

A bid winner may, in accordance with the provisions of the contract or with the agreement of the bid inviter, subcontract some minor
or less crucial parts of the project to others. The subcontractors shall meet the necessary qualifications and may not further subcontract
the work.

A bid winner shall be responsible to the bid inviter for the subcontracted parts, and the subcontractors shall bear joint and several
liability for the subcontracted work.

Chapter V

Legal Liability

Article 49 Any unit that, in violation of the provisions of this Law, fails to invite bids for a project subject to bid invitation,
or breaks up the project into parts, or by any other means tries to dodge bid invitation shall put it right within a time limit and
may be fined not less than 0.5 percent but not more than 1 percent of the contract value of the project; where a project, which completely
or partly uses state-owned funds is concerned, its construction or allocation of funds may be suspended. The persons who are directly
in charge and the other persons who are directly responsible shall be given sanctions in accordance with law.

Article 50 Where a bid invitation agency, in violation of the provisions of this Law, divulges confidential information and materials
relating to the bid invitation and bidding activities or colludes with the bid inviter and bidders to damage the interests of the
State and the general public or the lawful rights and interests of others, it shall be fined not less than 50,000 yuan but not more
than 250,000 yuan. The persons who are directly in charge and the other persons who are directly responsible shall be fined not less
than 5 per cent but not more than 10 per cent of the fine imposed on the agency; the illegal gains, if any, shall be confiscated.
If the circumstances are serious, the qualifications of the agency shall be suspended or revoked. If a crime is constituted, criminal
responsibility shall be pursued in accordance with law. If any losses are caused to others, liability for compensation shall be imposed
in accordance with law.

Where the bid result is affected by any of the acts mentioned in the preceding paragraph, it shall be nullified.

Article 51 Any bid inviter who, with unreasonable requirements, imposes limitations on or excludes potential bidders from bidding
or discriminates against them, compels bidders to form a consortium to bid jointly, or restrains competition among the bidders shall
be ordered to make rectification and may be fined not less than 10,000 yuan but not more than 50,000 yuan.

Article 52 Any bid inviter for a project for which bid invitation is required by law who discloses the names and number of potential
bidders who have already obtained the bid invitation documents or any other relevant information regarding bid invitation and bidding
which may affect fair competition or divulges the bid base price shall be given a disciplinary warning and may also be fined not
less than 10,000 yuan but not more than 100,000 yuan. The persons who are directly in charge and the other persons who are directly
responsible shall be given sanctions in accordance with law. If a crime is constituted, criminal responsibility shall be pursued
in accordance with law.

Where the bidding result is affected by any of the acts mentioned in the preceding paragraph, it shall be nullified.

Article 53 Where a bidder wins a bid through colluding with other bidders or with the bid inviter in matters of bidding, or through
bribing the bid inviter or members of the bid evaluation committee, the bid won shall be nullified and the bidder shall be fined
not less than 0.5 percent but not more than 1 percent of the value of the bid won. The persons who are directly in charge and the
other persons who are directly responsible shall be fined not less than 5 percent but not more than 10 per cent of the fine imposed
on the bidder. The illegal gains, if any, shall be confiscated. If the circumstances are serious, the bidder shall be disqualified
for one to two years from taking part in bidding for projects for which bid invitation is required by law and the matter shall be
made known to the general public, or its business license shall be revoked by the administrative department of industry and commerce.
If a crime is constituted, criminal responsibility shall be pursued in accordance with law. If any losses are caused to others, liability
for compensation shall be imposed in accordance with law.

Article 54 Where a bidder wins a bid by submitting the bid in the name of another person or by other fraudulent means, the bid won
shall be nullified. If losses are caused to the bid inviter, it shall bear liability for compensation in accordance with law. If
a crime is constituted, criminal responsibility shall be pursued in accordance with law.

Where a bidder for a project for which bid invitation is required by law commits any of the acts mentioned in the preceding paragraph,
which does not constitute a crime, it shall be fined not less than 0.5 percent but not more than 1 percent of the value of the bid
it wins. The persons who are directly in charge and the other persons who are directly responsible shall be fined not less than 5
percent but not more than 10 percent of the fine imposed on the bidder. The illegal gains, if any, shall be confiscated. If the circumstances
are serious, the bidder shall be disqualified for one to three years from taking part in bidding for projects for which bid invitation
is required by law and the matter shall be made known to the general public or its business license shall be revoked by the administrative
department of industry and commerce .

Article 55 Where a bid inviter for a project for which bid invitation is required by law, in violation of the provisions of this
Law , negotiates with bidders on such substantive matters as the bid prices and bidding plans, it shall be given a disciplinary warning
and the persons who are directly in charge and the other persons who are directly responsible shall be given sanctions in accordance
with law.

If any of the acts mentioned in the preceding paragraph affects the bidding result, the bid won shall be nullified.

Article 56 Where a member of the bid evaluation committee receives or accepts money, things of value or other favors from a bidder
or where a member of the bid evaluation committee or a staff member involved in bid evaluation discloses to another person any information
concerning the evaluation and comparison of bid documents, the recommended candidate for winning the bid or any other information
relating to bid evaluation, he shall be given a disciplinary warning, the money or things of value he received or accepted shall
be confiscated, and he may also be fined not less than 3,000 yuan but not more than 50,000 yuan. The said member who commits the
violation mentioned above shall be disqualified for membership of the committee and he may no longer take part in any bid evaluation
of projects for which bid invitation is required by law. If a crime is constituted, criminal responsibility shall be pursued in accordance
with law.

Article 57 Where a bid inviter decides on the bid winner from among people other than the candidates recommended by the bid evaluation
committee in accordance with law, or a bid inviter decides on the bid winner on its own after all the bids for the project for which
bid invitation is required by law have been rejected by the bid evaluation committee, the bid won shall be nullified. The bid inviter
shall be ordered to make rectification and may be fined not less than 0.5 percent but not more than 1 percent of the value of the
bid. The persons who are directly in charge and the other persons who are directly responsible shall be given sanctions in accordance
with law.

Article 58 Where a bid winner transfers the bid won to others, or breaks it up into several parts and transfers them separately to
ot

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON PRINTING AND DISTRIBUTING THE REVISED DECLARATION FORM OF THE INCOME TAX OF THE ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES

20040112

The State Administration of Taxation

Circular of the State Administration of Taxation on Printing and Distributing the Revised Declaration Form of the Income Tax of the
Enterprises with Foreign Investment and Foreign Enterprises

GuoShuiFa [2000] No.200

December 11 2000

In order to consolidate the taxation administration of the enterprises with foreign investment and foreign enterprises, the State
Administration of Taxation redesign the Annual Declaration Form of the Income Tax of the Enterprises with foreign investment and
Foreign Enterprises (A type and B type) and its attachment and the Quarter Declaration Form of the Income Tax of the Enterprises
with Foreign Investment and Foreign Enterprises (A type and B type)(see attachment [omitted]) according to the problems and modifying
suggestions of previous declaration form by the local taxation institutions and with reference of the format and content of the other
relevant income tax declaration form. Now it is distributed to you, the following is notified:

The redesigned Annual Declaration Form of the income tax of the enterprises with foreign investment and foreign enterprises (A type
and B type) should be filled in when the enterprises with foreign investment and foreign enterprises pay the income tax of 2000.
The previous Quarter Declaration Form of the income tax of the enterprises with foreign investment and foreign enterprises can be
used when the income tax of fourth quarter of 2000 by the enterprises with foreign investment. From 2001, the enterprises with foreign
investment and foreign enterprises should apply for the tax in use of new form. All the previous income tax forms except the declaration
form for clearing the income tax of enterprises with foreign investment and withholding income tax return suspend.

II.

The annual and quarter declaration forms of the Income Tax of the Enterprises with Foreign Investment and Foreign Enterprises classify
two types: A and B. A type is applied to the enterprises with foreign investment and foreign enterprises that can provide the complete
and accurate cost warrants and can compute the income tax. B type is applied to the enterprises with foreign investment and foreign
enterprises that pay the tax by way of the ratified profit rate or the income by conversion of expenditure.

III.

The emendatory declaration forms can be printed by the taxation institution of province and municipality separately listed on the
State plan according to the format made by the State Administration of Taxation. The institutions pay attention to collect the suggestion
of the taxpayers during implement and report the feedback to the State Administration of Taxation in order to emend and perfect the
forms uniformly.

The State Administration of Taxation
2000-12-11

INTERIM MEASURES ON EXAMINATION, APPROVAL AND ADMINISTRATION OF RAILWAY FREIGHT TRANSPORT INDUSTRY INVESTED BY FOREIGNERS

The Ministry of Railway, the Ministry of Foreign Trade and Economic Cooperation

Decree of the Ministry of Railway, Ministry of Foreign Trade and Economic Cooperation

No.4

Interim Measures on Examination, Approval and Administration of Railway Freight Transport Industry Invested by Foreigners are hereby
promulgated, and shall enter into force as of the date of promulgation.

Minister of the Ministry of Railway: Fu Zhihuan

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

August 29, 2000

Interim Measures on Examination, Approval and Administration of Railway Freight Transport Industry Invested by Foreigners

Article 1

These Measures are formulated in accordance with the Law of the People’s Republic of China on Chinese-foreign Equity Joint Ventures,
the Law of the People’s Republic of China on Chinese-foreign Contractual Joint Ventures as well as laws and regulations concerning
the railway industry for the purposes of pushing the railway freight transport industry opening to the outside world, promoting the
development of the railway freight transport industry and protecting the investors’ legitimate rights and interests.

Article 2

These Measures are applicable to the establishment of Chinese-foreign railway freight transport companies by foreign investors in
the form of join venture (including such two types as equity joint venture and contractual joint venture).

Article 3

The Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of China (hereinafter referred to as the MOFTEC) and
the Ministry of Railway of the People’s Republic of China (hereinafter referred to as the Ministry of Railway) are responsible for
the examination and approval of Chinese-foreign cooperative railway freight transport companies.

Article 4

The State shall protect the legitimate rights and interests of the Chinese-foreign cooperative railway freight transport companies
according to law. The Chinese-foreign cooperative railway freight transport companies operating railway freight transport business
must abide by the laws, regulations of the People’s Republic of China and other relevant rules and shall not impair the social public
interests in China and the legitimate rights and interests of the existing railway transport enterprises. The Chinese-foreign cooperative
railway freight transport companies shall accept the supervision and administration by the Ministry of Railway and other relevant
departments of the State.

Article 5

To establish a Chinese-foreign cooperative railway freight transport company, the main foreign investor shall be a freight transport
company which has engaged in freight transport business for more than 10 years and had strong capital capacity and good business
achievements. The main Chinese investor shall be a railway transport company which has engaged in freight transport business for
more than 10 years. Within the period stipulated by the Chinese government, the Chinese party’s investment proportion shall not be
less than 51%.

Article 6

A Chinese-foreign cooperative railway freight transport company to be established shall meet the following requirements:

(1)

having freight wagons and other means of delivery adaptable to its business scale, and having necessary places and facilities for
handling railway freight transport business;

(2)

having a stable source of freight;

(3)

having necessary professional technicians and managers to operate the business;

(4)

the amount of the registered capital shall satisfy the business need and the minimum not less than $25 million.

Article 7

To establish a Chinese-foreign cooperative railway freight transport company, the applicant (the main Chinese investor used as an
example, the same below) shall submit the following documents:

(1)

an application letter and a project proposal;

(2)

a feasibility study report;

(3)

a Chinese-foreign joint venture contract and articles of association;

(4)

the applicant’s legal certifying document and its creditworthiness certifying document;

(5)

a power of attorney of the legal representative of the Chinese-foreign cooperative railway freight transport company and a name list
of the members of the board of directors as well as their resumes;

(6)

other documents required by the MOFTEC and the Ministry of Railway.

Article 8

The application to establish a Chinese-foreign cooperative railway freight transport company shall be handled in accordance the following
procedures:

(1)

The applicant shall submit all the documents stipulated in Article 7 of these Measures to the Ministry of Railway. The Ministry of
Railway shall make a decision of approval or disapproval within two months as of the date of receipt of all the documents. For a
project with investment scale of $30 million or above, the Ministry of Railway shall transmit it to the State Development Planning
Commission for examination, approval and establishment of the project. Where, upon examination, the establishment requirements of
a Chinese-foreign cooperative railway freight transport company has been met and the establishment of the project approved, the Railway
Freight Transport Business License shall be issued by the Ministry of Railway.

(2)

The applicant shall, through the Ministry of Railway, transmit the Chinese-foreign joint venture contract and articles of association
to the MOFTEC for examination and approval. The applicant shall manage the Approval Certificate of Foreign Invested Enterprises with
the MOFTEC based on the approval document.

(3)

The applicant shall, within the prescribed period, undertake the enterprise registration with the administrative department for industry
and commerce in accordance with relevant provisions concerning registration of companies based on the Railway Freight Transport Business
License and the Approval Certificate of Foreign Invested Enterprises.

(4)

Where a Chinese-foreign cooperative railway freight transport company needs to establish branches domestically, abroad and in HongKong
or Macao region, it shall report this matter to the Ministry of Railway and the MOFTEC for approval.

Article 9

The Ministry of Railway shall examine and approve the establishment of projects and issue Railway Freight Transport Business Licenses
based on the circumstances of railway transport capacity and the development needs of the railway transport market.

Article 10

The term of operation of a Chinese-foreign cooperative railway freight transport company shall be agreed in the contract by both Chinese
and foreign parties and generally shall not exceed 20 years. The term of operation of a Chinese-foreign cooperative railway freight
transport company which make contributions to build or purchase railway lines and station installations may extend appropriately.

Where both Chinese and foreign parties agree to continue operation after the term of operation expires, the matter shall be reported
to the original examining and approving authority for approval.

Article 11

After a Chinese-foreign cooperative railway freight transport company is established, the amendment of the joint venture contract
and articles of association shall be transmitted to the MOFTEC for approval through the Ministry of Railway.

Article 12

Chinese-foreign cooperative railway freight transport companies will engage in transport of bulk cargo, frozen and chilled food, tinned
fluid and gas, container cargo and other cargo by its self-owned and leased freight wagons, but the transport concerning China’s
State security and on which there are other separate provisions in laws and administrative regulations is excluded.

Chinese-foreign cooperative railway freight transport companies engaging in transport of dangerous cargo and other related business
shall conform to laws, regulations and relevant provisions of the People’s Republic of China.

Article 13

Chinese-foreign cooperative railway freight transport companies will mainly engage in railway freight transport business in the following
ways:

(1)

to use its self-owned and leased wagons and other means of delivery, rent locomotives, station installations and line passing capacity
from other railway transport enterprises to engage in railway freight transport;

(2)

to use its self-owned locomotives and other means of delivery, rent station installations and line passing capacity from other railway
transport enterprises to engage in railway freight transport;

(3)

to use its self-owned locomotives and other means of delivery, through making contributions to build or purchase railway lines, terminal
lines and station installations, to engage in railway freight transport on its self-owned lines or lines of other railway transport
enterprises.

Article 14

Chinese-foreign cooperative railway freight transport companies shall deal with the relationship of associate transactions and competition
in the same industry with other railway transport enterprises based on the principle of market economy. Where the associated enterprises
provide products and services mutually, the contract shall be signed based on the principle of equality, mutual benefit, cost compensation
and reasonable profit.

Article 15

The State calls for combined transport conducted by Chinese-foreign cooperative railway freight transport companies and other transport
enterprises as well as among Chinese-foreign cooperative railway freight transport companies. The parties conducting combined transport
shall sign contracts of combined transport to clearly define all parties’ rights and obligations based on the principle of fairness,
reasonableness, equality and mutual benefit.

Article 16

Chinese-foreign cooperative railway freight transport companies must strictly abide by the various provisions of the Ministry of Railway
of the People’s Republic of China concerning the safety of railway transport and the transportation equipment and installations must
conform to the State standards or industry standards of the People’s Republic of China.

Chinese-foreign cooperative railway freight transport companies must accept the safety supervision from the Ministry of Railway and
its authorized safety supervision institutions.

Article 17

Chinese-foreign cooperative railway freight transport companies engaging in freight transport must be subject to the uniform control
of nationwide railroad networks.

Article 18

The price of freight transport conducted by Chinese-foreign cooperative railway freight transport companies and the administration
measures thereof shall implement the tariff policy of the State railway.

Article 19

Chinese-foreign cooperative railway freight transport companies shall pay taxes and fees in accordance with the laws and regulations
of the People’s Republic of China.

Article 20

Chinese-foreign cooperative railway freight transport companies shall submit statistics materials to relevant departments according
to law.

Article 21

The format of the major transportation vouchers and bills used by Chinese-foreign cooperative railway freight transport companies
shall be submitted to the Ministry of Railway for checking and filing for the record.

Article 22

Chinese-foreign cooperative railway freight transport companies shall submit a report on the last year’s transport business operations
to the MOFTEC and the Ministry of Railway by the end of April each year. The main contents include:

(1)

the specific transportation routes and products carried;

(2)

the total number of the employees and the number of Chinese employees;

(3)

the circumstances concerning such aspects as freight transport volume (10 thousand ton, 10 thousand ton/kilometer), the amount of
containers carried, the transport income, locomotives used as well as the line infrastructure;

(4)

the total business amount, the amount of profit and the taxes paid in the current year;

(5)

other materials stipulated by the MOFTEC and the Ministry of Railway.

Article 23

Chinese-foreign cooperative railway freight transport companies must operate railway freight transport business according to law.
Whoever violates the provisions of laws, regulations and rules may be given a warning or an order to stop business for rectification
by the Ministry of Railway; where the circumstances are serious, the Railway Freight Transport Business License shall be cancelled
and the qualification for operating freight transport business be removed.

Article 24

The establishment of cooperative railway freight transport companies in other provinces, autonomous regions and municipalities directly
under the Central Government in China by investors from China Hongkong Special Administrative Region, Macao Special Administrative
Region and Taiwan region shall be handled with reference to these Measures.

Article 25

The MOFTEC and the Ministry of Railway are responsible for the interpretation of these Measures.

Article 26

These Measures are applicable to the present system on administration of railway transport and shall enter into force as of the date
of promulgation.

The Ministry of Railway, the Ministry of Foreign Trade and Economic Cooperation
2000-08-29

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION CONCERNING THE ADJUSTMENT OF RELEVANT REGULATIONS ON IMPORT AND EXPORT BUSINESS QUALIFICATIONS

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation Concerning the Adjustment of Relevant Regulations on Import and
Export Business Qualifications

WaiJingMaoFaZhanShenHanZi [2000] No.2691

November 2, 2000

Foreign Trade and Economic Commissions (Bureaus, Departments) of all provinces, autonomous regions, municipalities directly under
central government, municipalities separately listed on the State plan and Zhuhai, Shantou Special Economic Zones, the Foreign Trade
and Economic Bureau of the Production and Construction Corps of Xinjiang Autonomous Region, the Foreign Trade and Economic Commissions
(Bureaus) of Harbin, Changchun, Shenyang, Xi’an, Chengdu, Nanjing, Wuhan and Guangzhou:

To further standardize the administration of import and export(hereinafter “imp/exp”)qualifications, accelerate the entry of qualified
enterprises into the international market and support the reform of state-owned foreign trade enterprises, the Ministry has modified
relevant existing regulations concerning the administration of imp/exp qualifications. Relevant issues are notified as follows:

All kinds of domestically-funded enterprises (excluding enterprises that supply or sell commercial materials) that apply for imp/exp
qualifications in the field of circulation, shall fill in the Application Form of Import and Export Qualifications and the attachment
forms (see the attachment) according to the regulations.

The Foreign Trade and Economic Commissions (Bureaus, Departments) of all provinces, autonomous regions, municipalities directly under
central government, municipalities separately listed on the State plan and Zhuhai, Shantou Special Economic Zones, the Foreign Trade
and Economic Bureau of the Production and Construction Corps of Xinjiang Autonomous Region, the Foreign Trade and Economic Commissions
(Bureaus) of Harbin, Changchun, Shenyang, Xi’an, Chengdu, Nanjing, Wuhan and Guangzhou (hereinafter referred to as “authorized issuing
agency”), or the enterprises managed by the Central Enterprise Working Committee (hereinafter referred to as “CEWC”) are responsible
for the examination of the authenticity and completeness of the application materials submitted by the enterprises, and stamp on
the Application Form of Import and Export Qualifications. Reports from submitted by the authorized issuing agencies and CEWC to us
shall be brief. Except as required by the regulations or by us, no extra reports or materials need to be submitted.

The existing conditions and regulations for imp/exp qualifications are adjusted as follows:

(1)

The imp/exp companies set up and held by manufacturing enterprises shall be handled according to the business scope of foreign trade
circulating companies. The business scope shall be: engaging in or acting as agent for the import and export of various commodities
and technology (except for those commodities and technologies designated by the state to be dealt in by specific companies or prohibited
from import and export. No special catalogue of import and export commodities is attached.)

When the manufacturing companies have set up import and export companies, the Ministry will not be responsible for the cancellation
of import and export managerial right of the original manufacturing enterprises; where the original manufacturing enterprises no
longer engage in the import and export business, the managerial right shall be revoked by the authorized issuing agency at the place
where the enterprises locate. The originally approved import and export companies set up by the manufacturing enterprise shall go
through the procedures for expanding business scope in the authorized issuing agency. In the light of local conditions, and with
the original approval documents of MOFTEC concerning the establishment of the imp/exp companies, the authorized issuing agency may
handle the procedures individually or collectively in the next annual examination.

(2)

Where the enterprises affiliated to the CEWC apply for imp/exp right, or the CEWC set up foreign trade circulating companies in other
localities, the following rules shall be complied with:

The applicant shall be one controlled by CEWC or a company controlled by the affiliate of a CEWC enterprise;

The registered fund standard of the applicant shall be identical with that of the local foreign trade circulating companies, i.e.,
the registered fund shall be RMB5,000,000 (RMB3,000,000 for the companies in the middle west areas);

Generally, only one imp/exp company is permitted to be set up by the CEWC in one city, except in the place where the CEWC enterprise
is located.

(3)

The total amount of the foreign companies approved by the special economic zones will not be appraised again. While the registered
fund of the applicant shall be examined after the total amount control is cancelled, i.e., the registered fund shall not be less
than RMB3,000,000. For the foreign trade companies set up in the Pudong District of Shanghai, the conditions of registered fund shall
be handled pursuant to the afore-mentioned standard and the examination conditions for the export achievement of the original parent
companies are canceled. Where foreign trade companies approved by the special economic zones and those in the Pudong District of
Shanghai deal in imp/exp business outside of the special economic zones or Shanghai, they shall comply with relevant conditions and
report to MOFTEC for approval.

(4)

The original cities directly under the planning of the provincial capitals are authorized to handle the registration procedures of
imp/exp right for the publicly-owned manufacturing enterprises (including new and high-tech enterprises and scientific research institutes).

(5)

The enterprises applying for the qualifications of contracting foreign projects may apply for qualification of imp/exp simultaneously,
if the conditions (such as registered fund, investment ratio) of imp/exp qualifications are satisfied. Having obtained the qualification
of contracting foreign projects, the enterprises may apply for imp/exp qualifications according to the regulations.

The existing regulations concerning name alteration, form alteration and other issues of the imp/exp enterprises are adjusted as follows:

(1)

The name alteration of a foreign trade enterprise need not be reported to the Ministry for approval or examination. The authorized
issuing agency shall deal with alteration of the “imp/exp enterprise qualification certificate”. Where any local enterprise set up
by CEWC alter its name, the authorized issuing agency shall deal with the alteration of “imp/exp enterprise qualification certificate
” based on the application documents for name alteration of the CEWC. Besides the afore-mentioned regulations, the foreign trade
enterprises shall go through the name alteration procedures of “operation license of overseas projects contracting and labor cooperation”
in the Cooperation Department of the Ministry.

(2)

Where any imp/exp enterprise (including central and local enterprises) restructures the system and change the share structure, if
the public ownership remains the principal part (with the state-owned or collective economy accounting for over 50%) and the main
shareholders remain unchanged, the Ministry will not handle the examination and approval procedures of the imp/exp managerial power.

(3)

Where the CEWC and the affiliate enterprises (affiliates or those controlled by the affiliates) alter the governing authorities or
subordination relationship (e.g. transferring to the local governments or to the other enterprises), the Ministry will not handle
the examination or approval procedures. The enterprise shall go through the alteration procedures of “imp/exp enterprise qualification
certificate” in the authorized issuing agency according to the regulations concerning changes in state assets or share structure.
While the alteration of governing authorities, subordination relationship and the transferring of managerial power of the enterprises
for contracting overseas project and labor shall report to the Ministry for approval.

(4)

Where any publicly-owned manufacturing enterprise or scientific research institute transfers the imp/exp management right to their
affiliate or controlling enterprises, the authorized issuing agency in the enterprises’ location shall go through the procedures.
Where any manufacturing enterprise that has obtained self-operation imp/exp right upon the approval of the Ministry before the end
of 1998, applies, due to restructuring, to transfer the operation right to the manufacturing enterprises newly established after
the restructuring, the registered fund of such new enterprises will not be specifically required and the operation right shall be
transferred according to the above regulations.

(5)

While going through the procedures of name alteration, transfer, cancellation and the like, the enterprises shall return the original
‘imp/exp enterprise qualification certificate ” to the authorized issuing agency in the enterprises’ location. The authorized issuing
agency shall process the code alteration or cancellation for the imp/exp enterprises within 20 working days and transmit the data
to the Ministry (China International Electronic Commerce Center) via network. The authorized issuing agencies shall report the situation
of enterprise alteration to the Ministry for record every quarter.

(6)

The transfer of imp/exp qualifications for enterprises in circulating field shall still be handled by the Ministry.

(7)

While establishing non-legal person branch companies, the foreign trade circuiting companies shall be directly registered in the industry
and commerce administrations without reporting to the Ministry for approval.

Hereby is the notification.

Attachment:

1.Application Form for Imp/exp Qualification(omitted)

2.Statement Form of Special Materials Confirmed by Authorities of Industry and Commerce, Taxation, Statistics and Foreign Trade Enterprise(omitted)

The Ministry of Foreign Trade and Economic Cooperation
2000-11-02

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON ISSUES CONCERNING STANDARD RULES GOVERNING THE ISSUANCE OF IMPORT CERTIFICATES TO ENTERPRISES WITH FOREIGN INVESTMENT

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation on Issues concerning Standard Rules Governing the Issuance of Import
Certificates to Enterprises with Foreign Investment

WaiJingMaoZiTongJinHanZi [2000] No.498

July 7, 2000

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

In order to standardize procedures for issuing import quota and commodity registration certificates to enterprises with foreign investment,
and to prevent such phenomena from happening as fraudulently buying and selling import certificates disturbing the import administration
of enterprises with foreign investment, the circular concerning relevant issues on standard rules governing the issuance of import
certificates to enterprises with foreign investment is hereby given as follows:

The import certificates referred to in the Circular include “The Import Quota Certificates of Enterprises with Foreign Investment”,
“The Import Registration Certificate of Specified Commodities of Enterprises with Foreign Investment” and “The Import Quota Certificates
for Processing Trade of Enterprises with Foreign Investment”.

Item 2, “Import Applicant” in the import certificate must be the same company as in Item 3, ” Import Agent”, which must be an enterprise
with foreign investment within the jurisdiction of the certificate issuing authority.

Item 10, ” Modes of Trade” in the import certificate must be confirmed as “import by equity joint ventures”, “import by contractual
joint ventures” or “import by foreign-capital enterprises”.

Imported cars as the investment of , or for own-use by enterprises with foreign investment shall be imported through the nearest designated
ports (Tianjin, Shanghai, Guangzhou, Manzhouli) according to relevant provisions. The “Port of Arrival” in the import certificate
is confined to the designated ports. In principle, it is not allowed to grant approval to importing cars through a far-away port.
The special circumstances must be approved by the Ministry of Foreign Trade and Economic Cooperation.

Governmental departments in charge of foreign trade and foreign investment and authorized import permit issuing departments must carefully
implement all provisions of this Circular.

The Ministry of Foreign Trade and Economic Cooperation
2000-07-07

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE MODIFICATION FOR THE CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON CONTROLLING THE RANGE OF USE THE VALUE-ADDED TAX INVOICE STRICTLY

Circular of the State Administration of Taxation on the Modification for the Circular of the State Administration of Taxation on Controlling
the Range of Use the Value-added Tax Invoice Strictly

GuoShuiFa [2000] No.75
May 8, 2000

It is reported recently from some areas that the relevant regulations of Circular on the Controlling the Range of Use of the Added-value
Tax Special Invoice by the State Administration of Taxation (GuoShuiFa [1995] No.85 ) have not met the need of the present usage
of the added-value invoice. Through study, the original notice is revised as follows now:

With regards to the strict control of the range of use of the special invoice, the special invoice should not be drawn for the enterprises
with the undertaking of the retail sales of consumer goods such as cigarette, alcohol, food, clothing, shoes and caps and cosmetics
(excluding the special-purpose parts of labor protection). If the buyers ask for the added-value invoice, the seller of goods that
sell the large-scale machinery electronic equipment, such as machinery, locomotive, automobile, steamer, boiler, etc can draw the
special added-value invoice.

The circular enter into force on January 1, 2000.

The State Administration of Taxation
2000-05-08

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION CONCERNING THE ISSUE OF TAX CREDIT FOR BUSINESS INCOME TAX FOR HOMEMADE EQUIPMENT PURCHASED BY ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES

The Ministry of Finance, the State Administration of Taxation

Circular of the Ministry of Finance and the State Administration of Taxation Concerning the Issue of Tax Credit for Business Income
Tax for Homemade Equipment Purchased by Enterprises with Foreign Investment and Foreign Enterprises

CaiShuiZi [2000] No.49

January 14,2000

The finance departments (bureaus), the state taxation bureaus and local taxation bureaus of all the provinces, autonomous regions,
municipalities directly under the Central Government and municipalities separately listed on the State plan:

The Circular of the Ministry of Finance and the State Administration of Taxation concerning the Issue of Tax Credit for Enterprise
Income Tax for Homemade Equipment Purchased by Enterprises with Foreign Investment, is issued as follows to carry out the spirit
of the relevant regulations stipulated by the Central Committee of the Communist Party of China and the State Council, enlarge the
introduction of foreign investment, and encourage enterprises with foreign investment and foreign enterprises to use homemade equipments:

With regard to the homemade equipment purchased within investment amount by the enterprises with foreign investment established within
the territory boundaries of the PRC, if they fall under the Encouraged Category and Restricted B Category listed in the Directive
Category of the Industries of Enterprises with Foreign Investment stipulated in the Circular of the State Council concerning the
Adjustment of Taxation Policies for Imported Equipments (GuoFa [1997] No.37), 40 percent of the investment for the homemade equipment
purchases shall be refundable from the increased part of their enterprise income taxes of the purchasing year over those of the year
before.

The methods shall be applicable to the foreign enterprises that have set up organizations or offices for manufacture or business operation
within the territory boundaries of China.

If the above enterprises’ purchases of homemade equipments outside their investment total are for the purpose of improving existing
equipments, manufacturing techniques and conditions with advanced and suitable new technologies, craftwork, equipments and materials
to increase economic benefit, improve product quality, increase product varieties, designs and colors, promote product upgrading,
enlarge export, decrease cost, save energies, enhance comprehensive resource utilizations and waste control and ensure labor protection
and safety, 40 percent of their investment for homemade equipment purchases may also be creditable from their increased enterprise
income taxes of the purchasing year over those of the year before.

The homemade equipments for tax credit refer to those manufactured by homemade enterprises for production (including necessary test
and inspection for production), excluding those imported directly from abroad and those manufactured for processing and compensation
trades.

The allowable tax credit of an enterprise with foreign investment or foreign enterprise shall not exceed its newly increased enterprise
income tax of the purchasing year over that of the year before. If the amount of newly increased enterprise income tax is not sufficient
for tax credit, the remaining part of investment outside tax credit shall be refundable from the newly increased tax of the next
year over that of the year before the purchasing year. However, the period for continuous tax credit shall not exceed five years.

Enterprises with foreign investment and foreign enterprises eligible for unified enterprise income tax reduction and exemption policies
stipulated in tax laws adopted by the Standing Committee of the National People’s Congress and laws and regulations promulgated by
the National People’s Congress and the State Council can moderately extend the duration of continuous deduction. The maximum duration
of continuous deduction, however, should not exceed 7 years.

When enterprises with foreign investment and foreign enterprises apply for tax credit for their homemade equipment purchases, they
shall provide the taxation administration in charge of tax credit with valid certificates and materials including invoices for homemade
equipment purchases.

The amount of value added tax refunded in accordance with regulations to enterprises with foreign investment and foreign enterprises
for their homemade equipment purchases shall not be calculated into the prices of the equipments.

The depreciation amount of homemade equipments with tax credit shall be calculated on the basis of the original prices of the equipments,
and deducted in accordance with regulations concerned at the calculation of taxable income amount.

If enterprises with foreign investment and foreign enterprises rent or transfer their homemade equipments that have enjoyed tax credit
within 5 years from the purchase date, they shall repay the enterprise income tax that have enjoyed tax credit at the time of the
equipments’ rent or transfer.

The Methods shall enter into force as of July 1, 1999. The State Administration of Taxation shall formulate detailed operational measures
separately.

The Ministry of Finance, the State Administration of Taxation
2000-01-14

THE JUDICIAL INTERPRETATION OF THE SUPREME PEOPLE’S COURT ON SOME ISSUES REGARDING THE APPLICATION OF THE GUARANTEE LAW OF THE PEOPLE’S REPUBLIC OF CHINA

the Supreme People’s Court

Announcement of the Supreme People’s Court of the People’s Republic of China

Fa Shi [2000] No. 44

The Judicial Interpretation of the Supreme People’s Court on Some Issues Regarding the Application of the Guarantee Law of the People’s
Republic of China, which has been adopted by the Judicial Committee of the Supreme People’s Court at its No.1133 Conference on September
29, 2000, is hereby promulgated and shall come into force as of December 13, 2000.

the Supreme People’s Court

December 8, 2000

The Judicial Interpretation of the Supreme People’s Court on Some Issues Regarding the Application of the Guarantee Law of the People’s
Republic of China

(Adopted by the Judicial Committee of the Supreme People’s Court at its No.1133 Conference on September 29, 2000)

For the purpose of ensuring the correct application of the Guarantee Law of the People’s Republic of China (hereinafter referred to
as “the Guarantee Law”), based on the judicial practice and experience, the following interpretations have been made concerning the
application of laws while the people’s courts are handling the guarantee disputes .

Part I

Interpretation of General Principles

Article 1

A guarantee created by the parties for the creditor’s rights arising from civil relations may be considered valid if it conforms to
the forms stipulated in the Guarantee law and does not violate any compulsory provision in laws and regulations.

Article 2

Counter-guarantee provider may be the debtor or some other parties.

The form of counter-guarantee may be mortgage or pledge offered by the debtor, or guarantee, mortgage or pledge offered by some other
parties.

Article 3

Where any state organ or any institution, social organization for the public good violates laws to provide guarantee, the guarantee
contract shall be invalid. And it shall be punished pursuant to Article 5 (2) of the Guarantee Law if any loss is caused to the
creditors.

Article 4

Where any director or manager violates Article 60 of the Company Law of the People’s Republic of China to provide guarantee for the
debt of the company’s shareholders or other persons, the guarantee contract shall be invalid. The debtor and the guarantee provider
shall bear joint compensation liability for creditor’s loss unless the creditor knows or should know about the fact.

Article 5

Where a guarantee is created with the property that is prohibited by laws and regulations from circulating, or is not transferable,
the guarantee contract shall be invalid.

Where a guarantee is created with the property restricted by laws and regulations from circulating, the people’s court shall dispose
of the property to realize the creditor’s rights in accordance with relevant laws and regulations.

Article 6

The foreign guarantee contract shall be invalid under any of the following circumstances:

1. a foreign guarantee is provided without the approval or registration by relevant competent departments;

2. the guarantee is provided to domestic creditors for oversea organs without approval or registration by relevant competent departments;

3. the guarantee is offered to secure the registered capital of a foreign-invested enterprise or the foreign party’s external debt
of its investment in a foreign-invested enterprise;

4. a foreign exchange guarantee is provided by a financial organ whose business scope does not include foreign exchange guarantees,
or by a non-financial enterprise legal person without foreign exchange income;

5. the guarantee provider will not bear any responsibility if the principal contract is altered or the creditor transfers the right
of a foreign guarantee contract without consent of the guarantee provider or approval of relevant competent departments, unless it
is otherwise provided by in laws and regulations.

Article 7

The guarantee provider and the debtor shall assume joint compensation liability for the creditor’s loss on the condition that the
principal contract is valid while the guarantee contract is invalid and the creditor is not in fault. If the creditor and the guarantee
provider are both in fault, the civil liability that the guarantee provider should assume shall not exceed half of that that the
debtor can’t pay off.

Article 8

If the guarantee contract is invalid due to the invalidity of the principal contract and the guarantee provider is not in fault, he
shall not assume any civil obligation. If the guarantee provider is in fault, he shall bear not more than one third of the obligation
that can’t be fulfilled by the debtor.

Article 9

The guarantee provider may have recourse against the debtor after assuming compensation liability to the creditor in the case of invalid
guarantee contract.

The guarantee provider may also require the counter-guarantee provider in fault to bear the liability within the compensation scope.

The guarantee provider may bring a lawsuit against the debtor or the counter-guarantee provider on the basis of the fact that the
compensation has been made.

Article 10

After termination of the principal contract, the guarantee provider shall still be liable to the debtor for the latter’s civil obligation
unless it is otherwise stipulated by the guarantee contract.

Article 11

The act of concluding a guarantee contract by the legal representative or person in charge of a judicial person or other organizations
beyond their purview of authorization shall be valid, except when the counter party knows or should know about such fact.

Article 12

The period of guarantee agreed upon by the parties or required by registration departments shall not have legal binding force on the
continuity of the guarantee.

Within two years after the limitation of action for a creditor’s secured right expires, the people’s court shall support the creditor’s
exercise of his guarantee right.

Part II

Interpretation of Guarantee

Article 13

Where a guarantee contract reads that the guarantee provider shall fulfill the non-monetary obligation and the guarantee provider
fails to do so actually, he shall compensate the creditor for the consequent loss.

Article 14

Where any legal person, any other organization or natural person without complete solvency concludes any guarantee contract as a guarantee
provider, and then pleads to be exempted from guarantee liability for their lack of solvency, such pleadings shall not be supported
by the people’s court.

Article 15

Other organizations provided in Article 7 of Guarantee law mainly include:

1. independently-invested and partnership enterprises, which have legally registered and drawn business licenses;

2. jointly-operated enterprises with legal registration and business licenses;

3. Sino-foreign cooperative joint ventures with legal registration and business licenses;

4. social organizations approved and registered by civil administration departments;

5. enterprises owned by townships, subdistricts and villages with legal registration and business licenses;

Article 16

The guarantee contracts concluded by operating institutions or social organizations as the guarantee providers shall be deemed as
valid, if there is no reason for invalidity of the contract.

Article 17

Where the guarantee is provided for by a branch of an enterprise legal person without authorization in written form by such legal
person, the guarantee contract shall be invalid. And the consequent loss of the creditor shall be compensated for according to Article
5 (2) of the Guarantee Law.

When providing guarantee with written authorization by the enterprise legal person, if the scope of authorization is not clear, the
branch of the enterprise legal person shall assume the whole liabilities for the debt agreed upon in the guarantee contract.

If the guarantee liability exceeds the amount of the property of the branch, the enterprise legal person shall assume the civil obligation.

Where the guarantee provided by the branch becomes invalid and the branch shall assume the compensation liability, the compensation
shall be made with the property under the administration of the branch. If the enterprise legal person is in fault, Article 29 of
the Guarantee Law shall apply.

Article 18

If the guarantee is offered by function departments of an enterprise legal person, the guarantee contract shall be invalid. The creditor
shall bear consequent loss if he knows or should know that the guarantee provider is a functional department of an enterprise legal
person.

If the creditor is not aware that the guarantee provider is a functional department of an enterprise legal person, the consequent
loss may be dealt with according to Article 5 (2) and Article 29 of the Guarantee Law.

Article 19

Where two or more guarantee providers secure the same debt simultaneously or respectively but the guarantee providers and the creditor
have not agreed on the guarantee shares, such guarantee shall be deemed as joint guarantee.

Where the joint guarantee providers antagonize the creditor with their internal agreement of guarantee shares, such defense shall
not be supported by the people’s court.

Article 20

If the debtor of a joint guarantee fails to fulfill his liability upon the termination of term for performance as written in the principal
contract, the creditor may require the debtor to fulfill his liability or require any of the guarantee providers to bear the entire
guarantee responsibility.

After undertaking the guarantee responsibility, the joint guarantee providers may divide the portion that is unrecoverable from the
debtor according to the proportions agreed upon internally. If no such proportions are agreed upon, this portion shall be divided
equally.

Article 21

The joint guarantee providers by shares shall be enpost_titled to claim repayment from the debtor within the purview of responsibly guarantee
after fulfilling their own shares of guarantee liabilities as agreed upon in the guarantee contract.

Article 22

Where the creditor accepts, without objection, a written guarantee that is unilaterally provided by a third party, the guarantee contract
shall be regarded as valid.

Where the guarantee provider signs or stamps on the principal contract without guarantee items in it as a guarantee provider, the
guarantee contract shall be regarded as valid.

Article 23

After confirming the uncertain creditor’s rights in a contract of a guarantee up to a maximum amount, the guarantee provider shall
assume responsibility within the maximum amount for the continuous obligations arising in a specific period.

Article 24

Where the general guarantee provider offers authentic information to the creditor concerning the debtor’s property that is eligible
for execution at the expiration of term for obligation performance in a principal contract, but the creditor gives up or neglects
the right and causes the failure of execution on this property, the guarantee provider may require the court to exempt him from guarantee
liability within the actual value scope of the above property.

Article 25

The major difficulties for the creditor to require the debtor to perform the liabilities stipulated in Section A of Article 17 (3)
include: unknown whereabouts, emigration of the debtor or no property of the debtor to be executed.

Article 26

Where the third party guarantees for the creditor to supervise the special purpose of a special fund, he will be free from liabilities
after performance of the above obligation. If the third party defaults and results in capital loss, he shall bear supplementary compensation
responsibility for the lost capital.

Article 27

Where the guarantee provider assures the debtor’s registered capital and the debtor’s actual investment does not accord with the registered
capital, or the debtor withdraws and transfers the registered capital, the guarantee provider shall assume the joint guarantee liability
within the scope of the insufficient capital or transferred capital.

Article 28

When the creditor lawfully transfers his principal rights of a creditor to a third party during the period of guarantee, the guarantee
rights of a creditor shall be transferred simultaneously and the guarantee provider shall fulfill his guarantee liability for the
transferee in the original scope of the guarantee. The guarantee provider shall be exempted from guarantee responsibilities if it
is agreed by the guarantee provider and the creditor that the guarantee is provided only to specific creditor or the credit is not
transferable.

Article 29

Where the creditor allows the debtor to transfer part of his debt without written consent of the guarantee provider during the period
of guarantee, the guarantee provider will not bear any liability for that transferred part of the debt, while he is still responsible
for the remaining part of the debt.

Article 30

Where during the term of guarantee, the creditor and the debtor alter the quantity, price, kind of currency, interest rate and etc.
in the principal contract without consent of the guarantee provider, and reduces the debtor’s obligation, the guarantee provider
shall still bear the guarantee liability in the altered contract; if the alteration increases the debtor’s obligation, the guarantee
provider will not be liable for the increased part.

If the creditor and debtor alter the performance duration of the principal contract without written consent of the guarantee provider,
the guarantee duration shall remain unchanged or shall be the statutory duration.

The guarantee provider shall still bear the guarantee liability if the creditor and debtor agree to alter content of principal contract
but have not performed accordingly.

Article 31

The term of guarantee shall not be suspended, discontinued or extended under any circumstances.

Article 32

The guarantee term stipulated in a guarantee contract, which is earlier than or the same as the performance term of the principal
debt, shall be deemed as not stipulated. The guarantee term shall be six months as of the expiration date of the term for performance
of the principal obligation.

If It will be considered as an unclear provision if the guarantee contract stipulates that the guarantee provider shall bear the guarantee
liability until the principal amount and interest for the principal debt have been paid. The guarantee term shall be two years as
of the expiration date of the term for performance of the principal obligation.

Article 33

Where there is no stipulation or no clear stipulation in the principal contract concerning the performance term of the principal debt,
the term of guarantee shall be calculated as of the expiration date of the grace period for the debtor to fulfill his obligation.

Article 34

Where the creditor of a general guarantee lodges a complaint or applies for arbitration against the debtor before the expiration of
the guarantee term, the limitation of action for the guarantee contract shall be calculated from the effective date of verdict or
arbitration award.

When the creditor of a joint liability guarantee requires the guarantee provider to assume liability before the expiration date of
the guarantee term, the limitation of action for the guarantee contract shall be calculated from the date of the creditor’s requirement.

Article 35

Where the guarantee provider assumes guarantee liability or provides guarantee for the debt that has exceeded the limitation of action,
and makes deraignment on the basis that such liability has exceeded the limitation of action, the people’s court shall not support
him.

Article 36

In general guarantees, the limitation of action for guarantee debts will intermit when that of principal debts does. In joint liability
guarantees, the limitation of action for guarantee debts will not intermit when that of the principal debts does.

In both general and joint liability guarantees, the limitation of action for guarantee debts will pause when that of the principal
debts does.

Article 37

Where there is no stipulation or no clear stipulation concerning the guarantee term in the contract of guarantee up to a maximum amount,
and the term for the guarantee provider to pay debts is written in the contract, the guarantee term shall be six months from the
expiration date of the term for the guarantee provider to pay the debts. If the term for payment of debts is not stipulated in the
contract, the guarantee term shall be six months from the termination of the guarantee up to the maximum amount, or six months from
the date of the creditor’s receiving of the guarantee provider’s written notice on terminating the guarantee contract.

Article 38

Where the same right of a creditor are assured by both a guarantee and a property guarantee of a third party, the creditor may require
the guarantee provider or such third party to perform obligation. Where there is no stipulation or no clear stipulation by the parties
concerning the scope of guarantee or property guarantee, the guarantee provider who has fulfilled the liability may have recourse
against the debtor or have the right to require the other guarantee providers to answer for their shares.

Where the same right of a creditor is assured by both a guarantee and property guarantee, and the guarantee contract of property is
proved invalid or rescinded, or the property is lost due to force majeure and no substitute is available, the guarantee provider
shall still assume liability as stipulated by contract or by law.

Where the creditor fails to exercise the property guarantee after expiration of the performance term for principal contract, which
thus results in depreciation, damage or loss of the guarantee property, the creditor shall be deemed to give up part or entire of
the property guarantee . The guarantee provider will be mitigated or exempted from the guarantee liability for the rights are given
up by such creditor.

Article 39

Where the parties of the principal contract agree to repay an old loan with a new loan, the guarantee provider will not bear civil
liability except when he knows or should know about this.

The above provision shall not apply where the same guarantee provider secures these two loans.

Article 40

Where the debtor of principal contract makes the guarantee provider to provide guarantee contrary to his will by means of fraud, intimidation
or the like, and the creditor knows or should know about such fact, Article 30 of Guarantee Law shall apply.

Article 41

Where the debtor and the guarantee provider concludes principal and guarantee contracts by jointly cheating the creditor, the creditor
may request the people’s court to remove such contracts. The guarantee provider and debtor shall bear joint liability for the creditor’s
consequent loss.

Article 42

Where the people’s court decides that the guarantee provider shall assume guarantee liability or compensation liability, it shall
specify in the verdict that the guarantee provider is enpost_titled to have the rights in Article 31 of the Guarantee Law. If the right
of recourse of the guarantee provider is not clearly defined in the verdict, the guarantee provider has to bring another lawsuit
on the basis of his compensation.

The limitation of action for the guarantee provider to recover from the debtor shall be calculated from the date when the guarantee
provider assumes liability to the creditor.

Article 43

Where the guarantee provider assumes liability independently and his actual payment exceeds the principal obligation, the guarantee
provider may only have recourse against the debtor within the scope of the principal obligation.

Article 44

When the court accepts the bankruptcy application of a debtor during the term of guarantee, the creditor may either declare his claim
to the people’s court or make a claim to the guarantee provider .

The guarantee provider shall still assume guarantee liability for the portion unpaid in the bankruptcy procedure after the creditor
has declared his claim. The creditor shall require the guarantee provider to perform his obligations within six months from the termination
of the bankruptcy procedure.

Article 45

Where the creditor knows or should know about the debtor’s bankruptcy but fails to declare a claim or notify the guarantee provider,
which thus causes the guarantee provider’s inability to claim recourse in advance, the guarantee provider will be exempted from obligation
within the scope (for the amount) that may be paid in the bankruptcy distribution.

Article 46

Where the creditor has not declared his creditor’s rights after the court accepts the debtor’s bankruptcy case, the joint guarantee
providers shall declare their creditor’s rights as one body for recourse in advance.

Part III

Interpretation of Mortgage

Article 47

Where the parties have registered the mortgaged property of a house or other buildings that have been approved according to law but
not built, or still under construction, such mortgage may be considered valid by the people’s court.

Article 48

Mortgage on buildings, which is determined by legal procedure as violating laws or regulations, shall be invalid.

Article 49

Mortgage on a property without ownership certificate may be considered valid if the ownership certificate is available or the register
procedure is handled before termination of court debate in the first instance.

The parties that fail to register the mortgaged property may not counterwork against a third party.

Article 50

Where a mortgage is made on all the properties stipulated in Article 34 (1) of the Guarantee Law, the scope of the mortgaged property
shall be determined by the registration. The value of the mortgaged property shall be made certain upon the realization of hypothec.

Article 51

Where the guaranteed creditor’s rights exceed the value of the mortgaged property, there will not be priority of payment for the exceeding
portion.

Article 52

Where the parties make mortgages on crops and the usufruct of the undetached land simultaneously, the mortgage on the usufruct of
land shall be invalid.

Article 53

Where institutions and social organizations for the public good such as schools, kindergartens, hospitals, etc., for their own debts,
make mortgages on properties other than the educational, medical and other facilities for public good, such mortgage may be considered
valid by the court.

Article 54

Mortgage made by a co-owner by shares on his own share of common property shall be valid. Where the common owner makes a mortgage
on the jointly owned property without consent of other owners, such mortgage shall be invalid. Where the other common owners know
or should know about such mortgage and do not object it, such act will be deemed as consent and the mortgage shall be valid.

Article 55

The procedures of property preservation and execution such as sealing up, detaining, etc. taken to the mortgaged property shall not
influence the effect of the mortgage.

Article 56

Where there are no stipulations or no clear stipulations in mortgage contract concerning the category of the main creditor’s rights
guaranteed and the mortgaged property, and can not be supplemented or determined by the principal contract and mortgage contract,
the mortgage shall be deemed as not created.

Where after concluding the mortgage contract that will take effect after registration stipulated by law, the mortgagor refuses to
go through such procedure according to the principle of good faith, the mortgagor shall compensate the creditor for consequent loss.

Article 57

Where the parties stipulate in mortgage contract that the ownership of mortgaged property will be transferred to the creditor if the
creditor has not received full payment upon the expiration date of performance, such provision shall be invalid and shall not have
effect on other provisions of the contract.

Where a mortgagee has not received full payment at the expiration of the term for performance of obligations, he may negotiate with
the mortgagor to obtain the mortgaged property by converting its value. If the interests of later mortgagees in sequence or other
creditors are damaged thereof, the people’s court may adopt stipulations of Articles 74 and 75 in Contract Law.

Article 58

Where the parties register the mortgaged property at different registration departments in the same day, the order shall be deemed
as the same.

Where the continuous registrations are made due to the reasons by the registration department, the first day to register the mortgaged
property shall be seen as the registration date of mortgage and shall be the basis to determine the order of hypothec.

Article 59

Where the parties can not register the mortgaged property due to the reasons by the registration department and the mortgagor provides
the right certificate to the creditor, the creditor shall have priority right of payment for the property. However, without registering
the mortgaged property, the parties cannot counterwork against a third party.

Article 60

Where a mortgage is made on real property listed in Article 42 (2) of Guarantee Law, and there are no stipulations by governments
at county level or above concerning registration departments, if the parities register the mortgage at administration departments
of land or real estate, the people’s court may confirm effectiveness of such registration.

Article 61

Where the content of the mortgage registration is inconsistent with that of the mortgage contract, the former shall prevail.

Article 62

Where the mortgaged property is owned by a third party due to attaching, mixing or processing, the mortgage shall affect the compensation;
where the mortgagor becomes the owner of the attachment, mixture or processed articles, the mortgage will affect such attachment,
mixture or processed articles; where a third party jointly owns the attachment, mixture or processed articles with the owner of mortgaged
property, the mortgage will affect the share enjoyed by the mortgagor.

Article 63

Where a property is accessory of the mortgaged property prior to the mortgage enactment, the mortgage shall have effect on such accessory.
Where the mortgaged property and its accessory are independently owned by two or more persons, the mortgage shall not have effect
on the accessory.

Article 64

Where a mortgaged property is detained by a people’s court due to the debtor’s failure to perform his obligation at the expiration
of the term for such performance, as of the date of detaining, the natural and statutory fruits of the mortgaged property obtained
by the mortgagee shall be paid in the following order:

1. expenses for obtaining fruits;

2. interest for principal creditor’s rights;

3. principal creditor’s rights.

Article 65

Where the mortgagor makes mortgage on a leased property, after realization of the hypothec, the lease contract shall still be binding
on the consignee of such property within the validity period of the lease contract.

Article 66

Where the mortgagor leases a mortgaged property, the leasing contract will not be binding on the consignee after realization of the
hypothec.

Where when leasing the mortgaged property, the mortgagor fails to notify the leasee in written form about the fact, the mortgagor
shall compensate the leasee’s loss arising thereof; if notified by the mortgagor in written form, the leasee shall bear the loss
individually if any damage arises thereof.

Article 67

During the duration of hypothec, if the mortgagor transfers the mortgaged property without notifying the mortgagee or the consignee,
the mortgagee can still exercise his hypothec on condition that the mortgaged property has been registered; the consignee who has
obtained the ownership of the property may pay all the debts in the debtor’s place to extinguish the hypothec. After payment, the
consignee is enpost_titled to have recourse against the mortgagor.

If the mortgaged property has not been registered, the mortgagee is not enpost_titled to counterwork against the consignee. Any consequent
loss of the mortgagee shall be assumed by the mortgagor.

Article 68

The hypothec shall not be influenced if the mortgaged property is inherited or donated.

Article 69

Where one creditor has several general creditors and at the time of payment for obligation the debtor maliciously colludes with one
of the creditors to mortgage all or part of his property to the creditor, which results in the loss of capability of the creditor
to fulfill other debts and the damage to the legitimate rights and interests of other creditors, the injured creditors may request
the people’s court to withdraw such mortgage.

Article 70

When the act of a mortgagor may depreciate a mortgaged property, and the mortgagor refuses to restore the original condition or provide
guarantee, the mortgagee may require the debtor to perform his liability or require to exercise the hypothec in advance.

Article 71

Prior to full payment of the principal creditor’s rights, the mortgagee may exercise his hypothec on the whole of the mortgaged property.

When the mortgaged property is divided or partially transferred, the mortgagee may exercise his hypothec on the divided or transferred
mortgaged property.

Article 72

If the principal creditor’s rights are divided or partially transferred, every creditor may exercise his share of hypothec.

If the principal debt is divided or partially transferred, the mortgagor still can guarantee the obligation of several debtors s with
his mortgaged property. However, if the mortgage is provided by a third party and the creditor allows the debtor to transfer the
debt without written consent of the mortgagor, the mortgagor will not be liable for such portion of the obligation.

Article 73

Where the prices from converting into money, auctioning or selling of the mortgaged property are lower than the stipulated value when
the hypothec is created, payment shall be made according to the actual value of the proceeds. The debtor shall answer for the shortfall.

Article 74

When there is no stipulation of the parties on payment, the prices from converting into money, auctioning and sell

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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

INTERIM MEASURES FOR ADMINISTRATION OF CHINESE-FOREIGN JOINT VENTURE AND COOPERATIVE MEDICAL INSTITUTIONS

BID INVITATION AND BIDDING LAW

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON PRINTING AND DISTRIBUTING THE REVISED DECLARATION FORM OF THE INCOME TAX OF THE ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES

INTERIM MEASURES ON EXAMINATION, APPROVAL AND ADMINISTRATION OF RAILWAY FREIGHT TRANSPORT INDUSTRY INVESTED BY FOREIGNERS

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION CONCERNING THE ADJUSTMENT OF RELEVANT REGULATIONS ON IMPORT AND EXPORT BUSINESS QUALIFICATIONS

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON ISSUES CONCERNING STANDARD RULES GOVERNING THE ISSUANCE OF IMPORT CERTIFICATES TO ENTERPRISES WITH FOREIGN INVESTMENT

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE MODIFICATION FOR THE CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON CONTROLLING THE RANGE OF USE THE VALUE-ADDED TAX INVOICE STRICTLY

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION CONCERNING THE ISSUE OF TAX CREDIT FOR BUSINESS INCOME TAX FOR HOMEMADE EQUIPMENT PURCHASED BY ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES

THE JUDICIAL INTERPRETATION OF THE SUPREME PEOPLE’S COURT ON SOME ISSUES REGARDING THE APPLICATION OF THE GUARANTEE LAW OF THE PEOPLE’S REPUBLIC OF CHINA

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

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