THE LEGISLATION LAW OF THE PEOPLE’S REPUBLIC OF CHINA

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON THE PREVENTION AND CONTROL OF ATMOSPHERIC POLLUTION

The Standing Committee of the National People’s Congress

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

No. 32

The Law of the People’s Republic of China on the Prevention and Control of Atmospheric Pollution, revised and adopted at the 15th
Meeting of the Standing Committee of the Ninth National People’s Congress of the People’s Republic of China on April 29, 2000, and
the revised edition is hereby promulgated and shall enter into force as of September 1, 2000.

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

April 29, 2000

Law of the People’s Republic of China on the Prevention and Control of Atmospheric Pollution ContentsChapter I General Provisions

Chapter II Supervision and Management of the Prevention and Control of Atmospheric Pollution

Chapter III Prevention and Control of Atmospheric Pollution by the Burning of Coal

Chapter IV Prevention and Control of Pollution Discharged by Motor-driven Vehicles and Vessels

Chapter V Prevention and Control of Pollution by Waste Gas, Dust and Malodorous Substances

Chapter VI Legal Liability

Chapter VII Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is formulated for the purpose of preventing and controlling atmospheric pollution, protecting and improving people’s environment
and the ecological environment, safeguarding human health, and promoting the sustainable development of economy and society.

Article 2

The State Council and the local people’s governments at various levels must incorporate the protection of the atmospheric environment
into their national economic and social development plans, make rational plans for the distribution of industrial layout, strengthen
the scientific research on the prevention and control of atmospheric pollution, adopt preventive and curative measures against atmospheric
pollution, and protect and improve the atmospheric environment.

Article 3

The State takes measures to control or gradually reduce, in a planned way, the total amount of the main atmospheric pollutants discharged
in local areas.

The local people’s governments at various levels shall be responsible for the quality of the atmospheric environment under their own
jurisdictions, making plans and taking measures to make the quality of the atmospheric environment under their own jurisdictions
meet the prescribed standard.

Article 4

The administrative department of environmental protections under the people’s governments at or above the county level shall be the
instrument conducting unified supervision and management of the prevention and control of atmospheric pollution.

The administrative departments of public security, transportation, railways and fishery at various levels shall, by performing their
respective functions, conduct supervision and management of the atmospheric pollution caused by motor-driven vehicles and vessels.

The relevant administrative departments under the people’s governments at or above the county level shall, within their respective
functions, supervise and administer the prevention and control of atmospheric pollution.

Article 5

All units and individuals shall have the obligation to protect the atmospheric environment and shall have the right to report on or
file charges against units or individuals that cause pollution to the atmospheric environment.

Article 6

The administrative department of environmental protection under the State Council shall establish national standards for atmospheric
environment quality.

The people’s governments of provinces, autonomous regions and municipalities directly under the Central Government may establish their
local standards for items not specified in the national standards for atmospheric environment quality and report the same to the
administrative department of environmental protection under the State Council for the record.

Article 7

The administrative department of environmental protection under the State Council shall, in accordance with the national standards
for atmospheric environment quality and the country’s economic and technological conditions, establish national standards for the
discharge of atmospheric pollutants.

The people’s governments of the provinces, autonomous regions and municipalities directly under the Central Government may establish
their local discharge standards for those not specified in the national standards for the discharge of atmospheric pollutants. With
regard to those already specified in the national standards for the discharge of atmospheric pollutants, they may set local standards
which are more stringent than the national standards and report the standards to the administrative department of environmental protection
under the State Council for record.

Where the local standards for the discharge of atmospheric pollutants by motor-driven vehicles and vessels established by the people’s
governments of provinces, autonomous regions and municipalities directly under the Central Government are more stringent than the
national discharge standards, they shall be subject to the approval of the State Council.

Units that discharge atmospheric pollutants in areas where the local discharge standards have been established shall observe such
local standards.

Article 8

The State adopts economic and technological policies and measures to facilitate the prevention and control of atmospheric pollution
and comprehensive utilization.

The people’s governments at various levels shall reward units or individuals that have made outstanding achievements in the prevention
and control of atmospheric pollution or in the protection and improvement of the atmospheric environment.

Article 9

The State encourages and supports the scientific and technological research into the prevention and control of atmospheric pollution,
disseminates advanced, feasible technologies for the prevention and control of atmospheric pollution; encourages and supports the
development and utilization of clean energies such as solar energy, wind energy and water energy.

The State encourages and supports the development of environmental protection industries.

Article 10

The people’s governments at various levels shall redouble their efforts in afforestation, grass-planting, urban and rural greening,
and take effective measures to do well the work of prevention and control of sand so as to improve the atmospheric environment.

Chapter II Supervision and Management of the Prevention and Control of Atmospheric Pollution

Article 11

New construction projects, expansion or reconstruction projects which discharge atmospheric pollutants shall be governed by the State
regulations concerning environmental protection for such projects.

An environmental impact statement on construction projects shall include an assessment of the atmospheric pollution the project is
likely to produce and its impact on the ecosystem, stipulate the preventive and curative measures. The statement shall be submitted,
according to the specified procedure, to the administrative department of environmental protection concerned for examination and
approval.

When a construction project is to be put into operation or to use, its facilities for the prevention of atmospheric pollution must
be checked and accepted by the administrative department of environmental protection. Construction projects that do not fulfill the
requirements specified in the State regulations concerning environmental protection for such construction projects shall not be permitted
to begin operation or to use.

Article 12

Units that discharge atmospheric pollutants must, pursuant to the provisions of the administrative department of environmental protection
under the State Council, report to the local administrative department of environmental protection its existing discharge and treatment
facilities for pollutants and the categories, quantities and concentrations of pollutants discharged under normal operation conditions
and submit to the same department relevant technical data concerning the prevention and control of atmospheric pollution.

Units that discharge pollutants as specified in the preceding paragraph shall report in due time about any substantial change in the
category, quantity or concentration of the atmospheric pollutants discharged. Their atmospheric pollutant treatment facilities must
ensure normal operations. Where the said facilities are to be dismantled or left idle, approval of the local administrative department
of environmental protection under the people’s government above the county level shall be obtained in advance.

Article 13

Where atmospheric pollutants are discharged, the concentration of the said pollutants may not exceed the standards prescribed by the
State and local authorities.

Article 14

The State implements a system of collecting fees for discharging pollutants on the basis of the categories and quantities of the atmospheric
pollutants discharged, and establishing reasonable standards for collecting the fees therefor according to the needs of strengthening
prevention and control of atmospheric pollution and the State’s economic and technological conditions.

The standards provided by the State shall be observed in the collection of fees for discharge of pollutants, the concrete measures
therefor and. State Council shall enact the implementing procedures

The fees collected for discharge of pollutants shall all be turned over to the Treasury and shall be used for the prevention and control
of atmospheric pollution as prescribed by the State Council and may not be misappropriated. The auditing authorities shall exercise
supervision through auditing according to law.

Article 15

With regard to the regions not meeting the prescribed standards for the quality of atmospheric environment and the acid rain control
areas and the sulfur dioxide pollution control areas designated as such with the approval of the State Council, the State Council
or the people’s government of provinces, autonomous regions and municipalities directly under the Central Government may delimit
them as the major areas for the total emission control air pollutants . The concrete measures for the State Council shall prescribe
the total emission control of major air pollutants.

The local people’s government concerned in the areas for the control of total emission of air pollutants shall check and approve the
total emission of major air pollutants by enterprises and institutions and issue them licenses for emission of major air pollutants.
It shall do this in accordance with the conditions and procedures provided by the State Council and in line with the principles of
openness, fairness and impartiality.

The enterprises and institutions obliged to control their total emission of air pollutants must emit their pollutants according to
the checked and approved standards for the total emission of major air pollutants and the conditions of emission provided by the
license.

Article 16

No industrial production facilities that cause environmental pollution shall be built within scenic spots or places of historical
interest, natural reserves, areas close to historical or cultural sites under protection and other places that need special protection,
as designated by the State Council or the people’s government of provinces, autonomous regions and municipalities directly under
the Central Government. Other facilities to be built in these areas must not emit air pollutants in access of the prescribed standards
for pollutant discharge. Enterprises and institutions which built before the enforcement of this Law, with facilities discharging
more pollutants than permitted by the prescribed discharge standards shall be ordered to dealt with within a period of time in accordance
with the provisions of Article 48 of this Law.

Article 17

The State Council shall, in accordance with the general plan for urban development, the target of the environment protection plan
and the quality of the urban atmospheric environment, designate some cities as key cities for the control of air pollution.

Municipalities directly under the Central Government, provincial capitals, coastal open cities and key tourist cities shall be designated
as key cities for the control of air pollution.

Where key cities for the control of air pollution do not meet the standards for the quality of the atmospheric environment, they shall
endeavor to meet such standards within the time limit prescribed by the State Council or the administrative department of environmental
protection under the State Council. The people’s government of such a city shall make plans to meet the standards within the time
limit, and may, in line with the authorization or relevant regulations of the State Council, adopt even more stringent measures to
realize such plans.

Article 18

The administrative department of environmental protection under the State Council together with relevant departments under the State
Council may, in light of the meteorological, topographical, soil and other natural conditions, delimit the areas where acid rain
has occurred or will probably occur and areas that are seriously polluted by sulfur dioxide as acid rain control areas and sulfur
dioxide pollution control areas with the approval the State Council.

Article 19

Enterprises shall give priority to the adoption of clean production techniques that are instrumental to high efficient use of energy
and to reducing the discharge of pollutants so as to decrease the generation of atmospheric pollutants.

The State shall eliminate backward production techniques and equipment that seriously pollutes the atmospheric environment.

The competent department for comprehensive economic and trade affairs under the State Council, in conjunction with other relevant
departments under the State Council, shall publish a catalog of the techniques which seriously pollute the atmospheric environment
ones that shall be prohibited from use within a time limit. It shall also catalog the equipment which seriously pollutes the atmospheric
environment and which shall be prohibited from production, sale, import and use within a time limit.

Producers, sellers, importers or users shall stop the production, sale, importation or use of the equipment listed in the catalog
as mentioned in the preceding paragraph. This must be done within the time limit prescribed by the competent department for comprehensive
economic and trade affairs under the State Council in conjunction with the relevant departments under the State Council. People who
utilizes the production techniques listed in the catalog as mentioned in the preceding paragraph shall, within the time limit prescribed
by the competent department for comprehensive economic affairs under the State Council in conjunction with the relevant departments
under the State Council, stop the use of such techniques.

The equipment eliminated in accordance with the provisions of the preceding two paragraphs may not be transferred to another for use.

Article 20

Any unit that, as a result of an accident or any other exigency, discharges or leaks toxic or harmful gases or radioactive substances,
thereby causing or threatening to cause an accident of atmospheric pollution and jeopardize human health, must promptly take emergency
measures to prevent and control the atmospheric pollution hazards, make the situation known to such units and inhabitants as are
likely to be endangered by the atmospheric pollution hazards, report the situation to the local administrative department of environmental
protection and accept its investigation and settlement.

Under the emergency of a severe atmospheric pollution that may jeopardize human health and safety, the local people’s government shall
announce the situation to the local residents without delay and take compulsory emergency measures, including ordering the pollutant
discharging units concerned to stop the discharge of pollutants.

Article 21

The administrative department of environmental protection and other supervisory and administrative departments shall be empowered
to make on-site inspections of units under their jurisdiction that discharge pollutants. The units being inspected must truthfully
report the situation to them and provide them with the necessary information. The inspecting authorities shall have the obligation
to keep confidential the technological know-how and business secrets of the units inspected.

Article 22

The administrative department of environmental protection under the State Council shall set up a monitoring system for atmospheric
pollution, organize a monitoring network and work out unified monitoring measures.

Article 23

The administrative department of environmental protection under the people’s governments of large and medium-sized cities shall regularly
publish reports on the quality of the atmospheric environment and gradually introduce the system of forecasting the quality of atmospheric
environment.

A report on the quality of the atmospheric environment shall include such contents as the characteristics of urban atmospheric pollution,
the types of major pollutants and the extent of harm caused by the pollution.

Chapter III Prevention and Control of Atmospheric Pollution by the Burning of Coal

Article 24

The State promotes the method of dressing coal by washing for the purpose of reducing the sulfur and ash in coal, and restricts the
mining of high-sulfur or high-ash coal. If the coal mined from a newly-built coal mine is of high-sulfur or high-ash, supporting
facilities for the dressing of coal by washing shall be installed to make the sulfur and ash in coal fall within the prescribed limits.

If the coal mined from an established coal mine is of high-sulfur or high-ash, supporting facilities for the dressing of coal by washing
shall be installed within a time limit in accordance with the plan approved by the State Council.

It is prohibited to mine the coal with toxic or harmful substances, such as radioactive and arsenic, that exceed the prescribed limits.

Article 25

The relevant departments under the State Council and the local people’s governments at various levels shall adopt measures to improve
the urban energy structure and popularize the production and utilization of clean energy.

The people’s governments of the key cities for the control of air pollution may, within the regions under their respective jurisdictions,
designate areas as those prohibited from producing and consuming seriously polluting fuels prescribed by the administrative department
of environmental protection under the State Council. The units and individuals within such areas shall stop consuming such seriously
polluting fuels within the time limit prescribed by the local people’s government and shall instead consume natural gas, liquefied
petroleum gas, electricity or other clean energy.

Article 26

The State adopts economic and technical policies and measures conducive to the clean utilization of coal, encourages and supports
the consumption of fine coal of low-sulfur or low-ash, and encourages and supports the development and popularization of the technology
of coal cleaning.

Article 27

The competent department concerned under the State Council shall, pursuant to the standards for boiler discharge of atmospheric pollutants
prescribed by the state, stipulate corresponding requirements in the boiler quality standards; boilers that do not meet the prescribed
requirements shall not be permitted to be manufactured, sold or imported.

Article 28

Urban construction shall be conducted on the basis of over-all planning. In areas with coal heating, unified provision of heat sources
shall be practiced and central heating system shall be developed. In areas covered by central heating pipelines or networks, no new
coal heating boilers may be installed.

Article 29

People’s governments of large or medium-sized cities shall make plans for catering service enterprises to start the use of clean energy
such as natural gas, liquefied petroleum gas and electricity within a prescribed time limit.

Other users of domestic cooking ranges in urban areas of large or medium-sized cities not designated as areas prohibited from the
consumption of coal shall use sulfur-fixed briquette of coal as fuel or other clean energy. They shall do so within a prescribed
time limit so as to gradually eliminate the direct use of raw coal as fuel.

Article 30

Where any newly built or expanded thermal power plants and other large or medium-sized enterprise that discharge sulfur dioxide more
than the prescribed standards for pollutants discharge or the quota of total control allow, supporting facilities for desulphurization
and dust removal must be installed or other measures for controlling the discharge of sulfur dioxide or for dust removal must be
adopted.

In the acid rain control areas or sulfur dioxide pollution control areas, if an existing enterprise discharges atmospheric pollutants
more than the standards for pollutants discharge allow, the discharge of atmospheric pollutants of the enterprise shall be controlled
within a time limit. This will be in accordance with the provisions of Article 48 of this Law.

The State encourages enterprises to adopt advanced technology for desulphurization and dust removal.

Enterprises shall gradually adopt measures to control the nitrogen oxide generated by the burning of fuel.

Article 31

When coal, gangue, coal cinder, coal ashes, sandstone, lime soil or other materials is stored in densely inhabited areas, fire and
dust prevention measures must be taken in order to prevent atmospheric pollution.

Chapter IV Prevention and Control of Pollutants Discharge by Motor-driven Vehicles and Vessels

Article 32

Motor-driven vehicles and vessels shall not be permitted to discharge atmospheric pollutants in excess of the prescribed discharge
standards.

No unit or individual may manufacture, sell or import motor-driven vehicles and vessels that discharge atmospheric pollutants in excess
of the prescribed discharge standards.

Article 33

Where motor vehicles currently in use do no meet the standards for pollutants discharge by motor vehicles at the time they are manufactured,
they may not be driven on the road.

If the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government prescribe new
standards for pollutants discharge by active motor vehicles and technically transform them, it shall be subject to the approval by
the State Council.

Motor-vehicle repair units shall, in accordance with the requirements for prevention and control of atmospheric pollution and relevant
national technical regulations, carry out repairs to make the motor-vehicles meet the prescribed standards for pollutants discharge.

Article 34

The State encourages the production and consumption of motor-driven vehicles and vessels which use clean energy.

The State encourages and supports the production and consumption of superior fuel oil, and takes measures to reduce the pollution
of atmospheric environment by harmful substances in the fuel oil. Units and individuals shall, according to the time limit prescribed
by the State Council, stop the production, import and marketing of leaded gasoline.

Article 35

The administrative departments of environmental protection under the people’s governments of provinces, autonomous regions and municipalities
directly under the Central Government may authorize the annual testing of pollution by motor-vehicle’s exhaust fume in accordance
with the relevant regulations. The Central Government may authorize the units undertaking annual test of motor-vehicles whose qualifications
have been recognized by the public security authorities to conduct these tests.

The departments of communications, fishery and other competent authorities with supervisory and administrative power may authorize
the units undertaking annual test of motor-vessels whose qualifications have been recognized by the relevant authorities to conduct
annual test of pollution by motor-vessel’s exhaust fume in accordance with the relevant regulations.

The administrative departments of environmental protection under the local people’s governments at or above the county level may conduct
supervisory pick-test of the pollutants discharge by active motor-vehicles at their place of parking.

Chapter V Prevention and Control of Pollution by Waste Gas, Dust and Fetor

Article 36

Units that discharge dust into the atmosphere must adopt measures to remove such dust.

The discharge of toxic waste gas and dust into the atmosphere shall be strictly restricted. When such discharge is really necessary,
the discharged gas or dust must undergo purification treatment.

Article 37

Inflammable gas engendered during industrial production shall be recovered for utilization; if such gas is discharged into the atmosphere
due to the lack of recovery facilities for utilization, it shall undergo treatment for the prevention and control of pollution.

The discharge into the atmosphere of converter gas, acetylene, yellow phosphoric tail gas engendered by the electric furnace process,
and organic hydrocarbon tail gas must be reported to the local administrative department of environmental protection for approval.

When the discharge of inflammable gas is really necessary because of the malfunctioning of the recovery and re-use installations,
the inflammable gas discharged shall be fully burnt, or other measures shall be taken, to reduce atmospheric pollution.

Article 38

Units that discharge sulphide-bearing gas in the process of refining petroleum, producing synthetic ammonia or coal gas, cooking fuel
coal and smelting non-ferrous metal shall be equipped with desulphurizing installations or shall adopt other measures for desulphurization.

Article 39

The discharge of gases and aerosols containing radioactive substances into the atmosphere must comply with the state provisions on
radioactivity protection and must not exceed the prescribed discharge standards.

Article 40

Units that discharge fetor into the atmosphere must take measures to prevent the pollution of neighboring residential areas.

Article 41

In densely inhabited areas and other areas that need special protection according to law, the burning of asphalt, asphalt felt, rubber,
plastics, leather, garbage and other materials that may produce toxic or harmful smoke or dust or fetor shall be prohibited.

In densely inhabited areas, the areas around the airport, the areas in the vicinity of main traffic arteries or the areas designated
by the local people’s government, it shall be prohibited to burn in the open air stalks, fallen leaves or other materials that will
cause smoke or dust pollution.

The municipal people’s government may, in light of the actual conditions, adopt measures other than those specified in the preceding
two articles to prevent and control the smoke or dust pollution.

Article 42

In the transportation, loading and unloading, and storage of substances that may diffuse toxic or harmful gases or dust, sealing or
other protective measures must be taken.

Article 43

The municipal people’s government shall take measures such as the responsibility system for afforestation, strengthening administration
of construction operation, expanding the area of the paved ground, control of the heaping up of debris and waste and using clean
transportation measures to increase the per capita possession of green land, reduce the size of bare land and surface dirt, and prevent
and control the dust pollution in the urban areas.

Units that conduct construction operation or other activities that generate dust pollution in the city’s urban areas must take measures
to prevent and control the dust pollution in accordance with the local regulations on environmental protection.

The competent administrative authorities under the State Council shall take the control of dust pollution as part of the ground for
assessment of a city’s comprehensive control of its environment.

Article 44

Business-operators in the catering services industry in urban areas must adopt measures to prevent and control the pollution caused
by lampblack to the residential environment in the neighborhood.

Article 45

The State encourages and supports the production and use of substitutes for the ozone-layer-depleting substances, and gradually reduces
the output of the ozone layer depleting substances until the termination of their production and use.

Units that produce or import ozone-layer-depleting substances must, within the time limit prescribed by the State, carry out the production
and import in accordance with the quotas approved by competent administrative authorities under the State Council.

Chapter VI Legal Liability

Article 46

Any violator of this Law shall, according to the circumstances of the case, be ordered to stop the illegal act, make rectification
within a time limit, be given a warn or be imposed upon a fine of not more than 50,000 yuan by the competent administrative department
of environmental protection or any of the supervisory and management departments as mentioned in Paragraph 2 of Article 4 for any
of the following acts:

(1)

Refusing to report or submitting a false report on items for which registration is required by the administrative department of environmental
protection under the State Council for the discharge of pollutants.

(2)

Refusing an on-site inspection by the competent administrative department of environmental protection or any of the supervisory and
management departments, or resorting to trickery and fraud during inspection;

(3)

Failing to normally operate the installations for the treatment of atmospheric pollutants by the units that discharge pollutants or
dismantling or leaving idle the installations for the treatment of atmospheric pollutants without prior approval by the administrative
department of environmental protection; or

(4)

Storing coal, coal gangue, coal cinder, coal ash, sandstone, lime soil or other materials in densely inhabited areas without taking
any measures for fire and dust prevention.

Article 47

Where the provisions of Article 11 of this Law is violated and a construction project is put into operation or to use in circumstances
where its facilities for the prevention and control of atmospheric pollution either have not been completed or have not met the requirements
specified in the state provisions concerning environmental protection for such a construction project, the administrative department
of environmental protection responsible for the examination and approval of the environmental impact statement on the construction
project shall order the suspension of its operations or use and may concurrently impose a fine of not less than 10,000 yuan but not
more than 100,000 yuan.

Article 48

Whoever, in violation of the provisions of this Law, discharges pollutants to the atmosphere in excess of the national or local discharge
standards shall make treatment thereof within a time limit, and shall also be imposed upon a fine of not less than 10,000 yuan but
not more than 100,000 yuan by the administrative department of environmental protection under the local people’s government at or
above the county level. The power to decide on the treatment within a time limit and the administrative penalty for violation of
the requirements for treatment within a time limit shall be prescribed by the State Council.

Article 49

Whoever, in violation of the provisions of Article 19 of this Law, produces, sells, imports or uses the equipment that is prohibited
to produce, sell, import or use or employs the techniques that are prohibited to employ shall be ordered to make rectification by
the competent department for comprehensive economic and trade affairs of the people’s government at or above the county level; if
the circumstan

PROVISIONS ON THE ADMINISTRATION OF INSURANCE COMPANIES

e0344220040615

The China Insurance Regulatory Commission

Provisions on the Administration of Insurance Companies

January 13,2000 ContentsChapter I General Provisions

Chapter II Insurance Institutions

Chapter III Insurance Operations

Chapter IV Terms of Insurance and Rate of Premium

Chapter V Administration and Use of Insurance Funds

Chapter VI Solvency of the Insurance Companies

Chapter VII Reinsurance

Chapter VIII Supervision and Inspection

Chapter IX Penalty Provisions

Chapter X Supplemental Provisions

Chapter I General Provisions

Article 1

These Provisions have been enacted according to the Insurance Law of the People’s Republic China (hereinafter referred to as the Insurance
Law), the Company Law of the People’s Republic of China (hereinafter referred to as the Company Law) and other relevant laws and
regulations in light of strengthening the supervision and administration of the insurance companies, maintaining the normal order
of the insurance market, protecting the lawful rights and interests of the insured and promoting the healthy development of the insurance
industry.

Article 2

The China Insurance Regulatory Commission (hereinafter referred to as CIRC) shall be the authority in charge of the commercial insurance
affairs nationwide and shall be responsible for the supervision and administration of the insurance companies according to the authorization
of the State Council.

Article 3

The insurance companies shall not be subject to the intervention of the government organizations at all levels, social institutions
or individuals in their lawful insurance activities.

Article 4

The insurance companies as mentioned in these Provisions shall refer to the commercial insurance companies of all types that have
been established and registered upon the approval of the insurance supervisory administration authority.

The branches of the insurance companies as mentioned in these Provisions shall refer to the branch companies, sub-branch companies
and business offices that have been established upon the application of the insurance companies for business operations. Unless otherwise
approved by the CIRC, the branches of the insurance companies shall not exist in any other form.

The insurance institutions as mentioned in these Provisions shall refer to the insurance companies and their branches.

Chapter II Insurance Institutions

Article 5

The establishment of insurance companies or their branches shall be subject to the approval of the CIRC.

Unless approved by the CIRC, no unit or individual shall conduct or conduct in any disguised form the commercial insurance business
within the territory of the People’s Republic of China.

Article 6

The establishment of an insurance company shall be eligible for the following principles:

observing the laws, regulations and administrative rules concerning insurance;

contributing to the stability of the insurance market and financial system;

separation of operation between the insurance business and banking and securities businesses; separation of operation between the
property insurance business and life insurance business;

rational distribution and fair competition.

Article 7

The following conditions shall be satisfied in the application for establishing an insurance company:

An insurance company that is engaged in the nationwide insurance business shall have a paid-in cash capital of not less than five
hundred million yuan RMB. An insurance company that is engaged in the insurance business within a specific region shall have a paid-in
cash capital of not less than two hundred million yuan RMB.

The high-ranking management personnel of the insurance company shall be eligible for the professional qualifications as required by
the CIRC.

An insurance company that is engaged in the nationwide life insurance business shall consist of not less than three actuaries approved
by the CIRC. An insurance company that is engaged in the regional life insurance shall consist of not less than one actuary approved
by the CIRC.

The applicant shall have business offices and facilities corresponding to the business scale and staff.

The shareholders of a stock-limited insurance company shall be business corporations or other organizations as permitted for investment
by the state; the shareholders shall be eligible for the qualifications as required by the CIRC.

Other conditions as required by the CIRC.

Article 8

The application for establishing an insurance company shall be accompanied by the following documents in triplicate:

an application for establishment;

a feasibility study report;

plans for establishment;

letter of intent of the investors for subscription of shares and background materials of the investors, including the nature of the
institution, type of organization, time of establishment, authority of approval, legal representative, registered capital, etc;

resumes and personal statements of the person responsible for the establishment, the candidates for the chairman of the board of directors
and the general manager;

other documents as required by the CIRC.

Article 9

The CIRC shall make a decision whether to approve or not to approve within six months after receiving the application. In case no
response is made in due time, the application shall be deemed as having been approved.

If the application is not approved, the applicant shall not submit similar applications with one year.

Article 10

In the event an application is approved for establishing an insurance company, the establishment shall be completed within six months.
If the establishment fails to be completed within the time limit, the original approval becomes void automatically. The time limit
for establishment may be extended for six month upon the application of the person responsible for the establishment and the approval
of the CIRC.

The preparatory organization shall not, during the period of establishment, be engaged in any insurance business.

Article 11

After the completion of the establishment, the insurance company may file an application for start of business, subject to the submission
of the following documents in triplicate to the CIRC:

an application for start of business;

a certification of assessment of capital issued by an assessment organization approved by the CIRC and a duplicate of the original
documents of entry into account of registered capital;

resumes of the persons to be employed as executive officers, and an introduction of the setup of the departments of the company and
the composition of staff;

certification of ownership or land use right to the business ground or office;

articles of incorporation (draft);

a three-year plan of management and scheme of reinsurance;

the terms of insurance and rate of premium for the type of insurance to be engaged in;

a report on the configuration of computer facilities and software;

other materials as required by the CIRC.

Article 12

The insurance company may, according to the demand of business, apply for the establishment of branches. The branches shall take the
form of a subsidiary company, (central) branch company, or business office.

The head business office of the insurance company shall be responsible for the administration of the branch companies and business
offices of the place where the company is located. No subsidiary companies shall be established in the place where the head business
office is situated.

Article 13

If an insurance company, which is established with the minimum registered capital as prescribed in item 1 of article 7 , is a national
company, it may apply for establishing not more than three subsidiary companies; if it is a regional company, it may apply for establishing
not more than two subsidiary companies. Moreover, an additional registered capital of not less than 50 million yuan shall be added
to the registered capital for each application of establishing a subsidiary company or a branch on the provincial level.

If the registered capital of the applicant has reached the requirement as prescribed in the previous paragraph, it may not make corresponding
additions of registered capital.

Where a national company has a registered capital of not less than 1.5 billion yuan, and a regional company has a registered capital
of not less than 500 million yuan, and if they are adequately solvent, they may establish branch organizations without addition of
registered capital.

Article 14

The application for establishing branch organizations of an insurance company shall be filed by the head office.

Article 15

An insurance company applying for the establishment of a branch organization shall satisfy the following conditions:

the establishment shall be contributory to the development of the local insurance market;

the business of the head office shall have been in operation for not less than one year, and the registered capital shall be eligible
for the requirement as mentioned in Article 13 of these Provisions;

the insurance company shall have sound regulatory rules, be in normal operation and adequately solvent;

the insurance company shall have no record of serious violation of laws and regulations, and the organization by whom a branch organization
is to be established shall have passed the annual examination;

the insurance company shall have the executive personnel that are eligible for the requirements of the CIRC;

the organization previously approved has been established and has been in smooth operation;

other conditions as required by the CIRC.

Article 16

An insurance company, when applying for the establishment of a branch organization, shall submit a formal application. The application
shall include the scope of business, a three-year plan for development and a market analysis, the persons to be responsible for the
establishment, a plan for the computer facilities and the planned site of business, etc.

Article 17

The CIRC shall determine the approval of the application for establishing branch organizations according to the demand of market development
and the specific conditions of the insurance company such as the premium income, solvency, business management, internal regulation,
the number and distribution of existing branch organizations, etc.

Article 18

The CIRC shall decide to approve or disapprove the application within three month after its receipt. Failure to respond within the
due time shall be deemed as approval.

If the application is denied, the insurance company shall not file similar applications within six months.

If the application is approved, the applicant insurance company shall start on the preparatory work of the branch organization. The
time for the establishment shall not exceed six month; if the establishment is not completed within the specified time, the original
approval becomes void automatically. The time for the establishment may be extended for three months, subject to the application
of the applicant insurance company and the approval of the CIRC.

Article 19

The insurance company shall, after the establishment of the branch organization, submit an application to the CIRC for start of business
and for a License for Engagement in Insurance Business.

The application for start of business shall include the completion of establishment, the scope of business, the leaders of the branch
organization, the site for business and relevant certifications, computer facilities, setup of internal departments, staff and personnel,
etc.

Article 20

Alterations concerning the following items of the insurance company shall be subject to the approval of the CIRC:

amendment of the articles of incorporation;

change of address;

increase or decrease of registered capital;

assignment of shares;

change of type of organization;

readjustment of scope of business;

change of company post_title;

split or merger;

other alterations that need approval of the CIRC.

Article 21

The possession of shares by an individual shareholder of a joint stock insurance company limited (including its related companies
or on behalf of others) exceeding 10% of the registered capital shall be subject to the approval of the CIRC.

Article 22

The decisions of the board of directors of the insurance company shall be submitted, within fifteen days after the close of the meeting,
to the CIRC for record.

Article 23

The alterations of the branch organizations of an insurance company concerning the items as mentioned below shall be subject to the
approval of the CIRC:

withdrawal or merger of organization;

change of post_title of organization;

readjustment of scope of business;

change of site for business;

other alterations that need the approval of the CIRC.

Article 24

The examination and administration of the credentials of the executive officers of the insurance company shall be conducted in accordance
with the relevant provisions of the CIRC.

Article 25

The insurance company shall set up a special customer service agency or a department responsible for consultation and complaints,
and shall publicize the telephone numbers for complaint.

Article 26

The joint stock insurance company shall, in the process of issuing new shares to the public, abide by the Company Law of the People’s
Republic of China and relevant provisions concerning the supervision and regulation of securities. If any of the following occurs,
the company shall not issue new shares to the public:

the company has gross violations against the laws and regulations during the last three years;

the previous issue of shares has not been fully subscribed and an elapse of two years has not passed;

The issue of new shares to be subscribed fully by the existing shareholders, the transfer of profit into new shares and the distribution
of common reserve fund in the form of new shares shall not be subject to the restraint as mentioned in the previous paragraph;

Article 27

The insurance license is the legitimate certification of engagement of the insurance institutions in the insurance business. The insurance
license may be classified into the Corporate License for Insurance Institution and the License for Engagement in the Insurance Business.
The Corporate License for Insurance Institution shall be the credential for the insurance company to be engaged in the insurance
business, while the License for Engagement in the Insurance Business shall be the credential for the branch organizations of the
insurance company to be engaged in the insurance business.

Article 28

A Corporate License for Insurance Institution shall be issued by the CIRC to the insurance company that has obtained the approval
for establishment, while a License for Engagement in the Insurance Business shall be issued by the CIRC to the branch organization
of the insurance company that has obtained approval for establishment. The insurance company or its branch organizations shall not
start business until it has gone through registration proceedings with the Administration for Industry and Commerce by submitting
the approval and license issued by the CIRC and has obtained the license for business.

The insurance institution shall, in the process of making alterations upon the approval, submit the authentic copy and its counterpart
of the licenses and relevant approval to the CIRC for change of licenses.

Article 29

The CIRC shall be responsible for the design, printing, issuance, withholding, cancellation and revocation of the license for insurance.
No other units or individuals shall design, withhold, cancel or revoke the license for insurance.

Article 30

The insurance institution and its branch organizations shall place the authentic copy of the insurance licenses in an eye- catching
position of the site for business and shall put the counterpart of the licenses under lock and key for further examination.

Article 31

The insurance licenses shall be changed every three years. In the event that a license is missing, the insurance institution shall,
within fifteen days starting from the day of its knowledge, publish a statement for nullification on the newspapers designated by
the CIRC and file an application to the original issuing authority for reinsurance.

Article 32

The insurance institution shall not counterfeit, alter, rent, lend, transfer or sell the insurance license.

Article 33

The CIRC shall charge a fee from the insurance institutions applying for the issuance or change of insurance licenses.

Article 34

The insurance company shall obtain the approval of the CIRC for the establishment of solely-funded companies or joint venture companies
or branch organizations overseas.

Article 35

The insurance company shall, when withdrawing an overseas insurance institution as mentioned in Article 34 , apply to the CIRC for
approval. In the event of the revocation of the insurance license or the bankruptcy of an overseas insurance institution, the insurance
company shall report to the CIRC for record.

Article 36

The insurance may set up representative offices upon the approval of the CIRC. The representative offices shall be responsible for
the consultation, liaison and coordination of relevant business of the insurance company, but shall not engage in the insurance business
operation.

The insurance company shall obtain the approval of the CIRC for the establishment of representative offices overseas.

Article 37

In the event the insurance is dissolved, withdrawn or declared bankrupt according to law, the liquidating group shall notify the creditors
within ten days after its formation and shall make a public announcement in the newspapers designated by the CIRC for at least three
times.

Article 38

The insurance company shall file an application with the CIRC for dissolution in accordance with the articles of incorporation or
the decision of the shareholders meeting, and submit the following documents in triplicate:

an application for dissolution;

the decision of the shareholders’ meeting;

liquidation procedure;

plan for the arrangement of credits and debts;

the organization of the liquidating group and its leader;

plan for the distribution of assets;

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON SOME TAX ISSUE CONCERNING EXPORT BY FOREIGN-INVESTED INVESTMENT COMPANIES

The Administration of State Taxation

Circular of the State Administration of Taxation on Some Tax Issue Concerning Export by Foreign-invested Investment Companies

GuoShuiFa [2000] No.202

December 8, 2000

The Administration of State Taxation of every province, autonomous region, municipality directly under the Central Government and
municipality separately listed on the State plan:

Article 3 of ‘Circular of the State Administration of Taxation Concerning Taxation of Goods Exported by Foreign-Invested Enterprises'(GuoShuiFa
[1996] No.123 ) and Article 3 of ‘Supplementary Circular of the Ministry of Finance and the State Administration of Taxation Regarding
Several Problems Concerning Exported Goods'(CaiShuiZi [1997] No.014) provide: Goods collected and exported by foreign-invested enterprises
with the approval of the provincial-level department in charge of foreign trade and economic cooperation shall be exempt from tax
without drawbacks; foreign-invested investment companies established with the approval of the Ministry of Foreign Trade and Economic
Cooperation may have drawbacks when acting as an agent in exporting goods produced by their invested enterprises. Recently however,
some localities have raised such question such as whether or not foreign-invested investment companies may have drawbacks if they
collect and export goods approved within their business scope, for which the following provisions are given after considerations:

From January 1, 2000, foreign-invested investment companies established with the approval of the Ministry of Foreign Trade and Economic
Cooperation may have drawbacks according to the present relevant provisions concerning goods collected and exported by export enterprises,
if they, within their scope of approved business, collect and export goods involving neither export quota nor export license, and
they present the following certificates:

(1)

subsidiary ledger of sales of the exported goods;

(2)

the special invoice of value added tax on the exported goods (the part for tax payment offsetting)

(3)

customs declaration for the exported goods (the part of export drawbacks)

(4)

verification writing off document for export proceeds; and

(5)

tax payment form (specially for exported goods) or separation certificate of tax payment for exported goods.

The tax payment form referred to in Item (5) shall be handled in accordance with Article 12 of ‘Circular of the Ministry of Finance
and the State Administration of Taxation for Resuming the Use of the Tax Payment Form Specially for Value Added Tax on Exported Goods'(CaiShuiZi
[1996] No.8 and CaiShuiZi [1997] No.14).

The Administration of State Taxation
2000-12-08

FOREIGN-CAPITAL ENTERPRISES LAW

Law of the People’s Republic of China on Foreign-Capital Enterprises



	(Adopted at the Fourth Session of the Sixth National People’s Congress on April 12, 1986 and promulgated by Order No.39 of the President of the People’s Republic of China on April 12, 1986; amended according to the Decision on Revision of the Law of the People’s Republic of China on Foreign-Capital Enterprises adopted at the 18th Meeting of the Standing Committee of the Ninth National People’s Congress on October 31, 2000) Article 1 With a view to expanding economic cooperation and technological exchange with foreign countries and promoting the development of China’s national economy, the People’s Republic of China permits foreign enterprises, other foreign economic organizations and individuals (hereinafter collectively referred to as “foreign investors”) to set up enterprises with foreign capital in China and protects the lawful rights and interests of such enterprises. Article 2 As mentioned in this Law, “enterprises with foreign capital” refers to those enterprises established in China by foreign investors, exclusively with their own capital, in accordance with relevant Chinese laws. The term does not include branches set up in China by foreign enterprises and other foreign economic organizations. Article 3 Enterprises with foreign capital shall be established in such a manner as to help the development of China’s national economy. The State may encourage the establishment of foreign-capital enterprises that are export-oriented or technologically advanced. Regulations shall be formulated by the State Council regarding the lines of business which the State forbids enterprises with foreign capital to engage in or on which it places certain restrictions. Article 4 The investments of a foreign investor in China, the profits it earns and its other lawful rights and interests are protected by Chinese law. Enterprises with foreign capital shall abide by Chinese laws and regulations and may not engage in any activities detrimental to China’s public interests. Article 5 The State does not nationalize or requisition any enterprise with foreign capital. However, under special circumstances when public interests require, enterprises with foreign capital may be requisitioned through legal procedures and appropriate compensation shall be made. Article 6 The application to establish an enterprise with foreign capital shall be submitted for examination and approval to the department under the State Council which is in charge of foreign economic relations and trade, or to an institution authorized by the State Council. The authorities in charge of examination and approval shall, within 90 days from the date they receives such application, decide whether or not to grant approval. Article 7 When the application for the establishment of an enterprise with foreign capital is approved, the foreign investor shall, within 30 days from the date of receiving the certificate of approval, apply to the administrative department for industry and commerce for registration in order to obtain a business licence. The date of issue of the business licence of foreign-capital enterprise shall be the date of its establishment. Article 8 An enterprise with foreign capital which meets the conditions for being considered a legal person under Chinese law shall acquire the status of a Chinese legal person in accordance with law. Article 9 An enterprise with foreign capital shall make investments in China within the period approved by the authorities in charge of examination and approval. If it fails to do so, the administrative departments for industry and commerce shall have the power to cancel its business licence. The administrative department for industry and commerce shall inspect and supervise the investment situation of an enterprise with foreign capital. Article 10 In the event of separation, merger or other major change, an enterprise with foreign capital shall report the matter to and seek approval from the authorities in charge of examination and approval, and register the change with the administrative department for industry and commerce. Article 11 Enterprises with foreign capital shall conduct their operation and management in accordance with the approved articles of association and shall be free from any interference. Article 12 When employing Chinese workers and staff, an enterprise with foreign capital shall conclude contracts with them according to law, in which matters concerning employment, dismissal, remuneration, welfare benefits, occupational protection and labour insurance shall be clearly prescribed. Article 13 Workers and staff of enterprises with foreign capital may organize trade unions in accordance with law, in order to conduct trade union activities and protect their lawful rights and interests. The said enterprises shall provide the necessary conditions for the activities of the trade unions in their respective enterprises. Article 14 An enterprise with foreign capital shall set up account books in China, conduct independent accounting, submit the fiscal reports and statements as required and accept supervision by the financial and tax authorities. If an enterprise with foreign capital refuses to maintain account books in China, the financial and tax authorities may impose a fine on it, and the administrative department for industry and commerce may order it to suspend operation or may revoke its business licence. Article 15 A foreign-capital enterprise may, in adherence to the principles of fairness and rationality, purchase on both the Chinese and the world market the raw and semi-processed materials, fuels and other materials it needs within the approved scope of operation. Article 16 Enterprises with foreign capital shall apply to insurance companies in China for such kinds of insurance coverage as are needed. Article 17 Enterprises with foreign capital shall pay taxes in accordance with relevant State regulations for tax payment, and may enjoy preferential treatment for reduction of or exemption from taxes. An enterprise with foreign capital that reinvests its profits in China after paying the income tax may, in accordance with relevant State regulations, apply for refund of a part of the income tax already paid on the reinvested amount. Article 18 An enterprise with foreign capital shall handle its foreign exchange transactions in accordance with the State regulations on foreign exchange control. An enterprise with foreign capital shall open an account with the Bank of China or with a bank designated by the State authority exercising foreign exchange control. Article 19 The foreign investor may remit abroad the profits that are lawfully earned from an enterprise with its investment, as well as other lawful earnings and any funds remaining after the enterprise is liquidated. Wages, salaries and other legitimate income earned by foreign employees in an enterprise with foreign capital may be remitted abroad after the payment of individual income tax in accordance with law. Article 20 With respect to the period of operation of an enterprise with foreign capital, the foreign investor shall report to and secure approval from the authorities in charge of examination and approval. For an extension of the period of operation, an application shall be submitted to the said authorities 180 days before the expiration of the period. The authorities in charge of examination and approval shall, within 30 days from the date of receiving such application, decide whether or not to grant the extension. Article 21 When terminating its operation, an enterprise with foreign capital shall promptly issue a public notice and proceed with liquidation in accordance with legal procedure. Pending the completion of liquidation, a foreign investor may not dispose of the assets of the enterprise except for the purpose of liquidation. Article 22 At the termination of operation, the enterprise with foreign capital shall cancel its registration with the administrative department for industry and commerce and hand in its business licence for cancellation. Article 23 The department under the State Council which is in charge of foreign economic relations and trade shall, in accordance with this Law, formulate rules for its implementation, which shall go into effect after being submitted to and approved by the State Council. Article 24 This Law shall go into effect as of the date of its promulgation.

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING SEVERAL ISSUES IN THE IMPLEMENTATION OF LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON INCOME TAX OF ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES

The State Administration of Taxation

Circular of the State Administration of Taxation Concerning Several Issues in the Implementation of Law of the People’s Republic of
China on Income Tax of Enterprises with Foreign Investment and Foreign Enterprises

GuoShuiFa [2000] No.152

August 21, 2000

National taxation bureaus of all provinces, autonomous regions, municipalitie directly under the Central Government and municipalities
separately listed on the State plan, Local Taxation Bureaus of Guangdong Province and Hainan Province and Local Taxation Bureau of
Shenzhen:

Based on relevant provisions in the Law of the People’s Republic of China on Income Tax of Enterprises with Foreign Investment and
Foreign Enterprises (hereinafter referred to as “the tax law”) and its implementing rules, several issues concerning the implementation
hereof are notified as follows:

The application for enjoyment of tax break

If any enterprise with foreign investment or foreign enterprise is enpost_titled to periodical tax break under the tax law and its implementing
rules, it shall apply to local taxation authorities for confirmation thereof after entering into formal operation. After receipt
of the application, the competent taxation authority shall examine the documentation filed by the enterprise and shall issue a document
to confirm that the enterprise is enpost_titled to the preferential treatment hereof if such enterprise may enjoy the periodical tax break
for meeting the requirements as prescribed in the tax law and implementing rules. The competent taxation authority shall examine
relevant documentations filed by the enterprise when it begin to enjoy the periodical tax break in the profit-making year according
to Circular of the State Administration of Taxation on How to Enjoy the Tax Preference by Enterprises with Foreign Investment Simultaneously
Engaged in Production and Non-production Business (GuoShuiFa [1994] No.209). If, after the annual examination at the end of the year,
the income for production of such enterprise is found not in accordance with the requirements stipulated in GuoShuiFa [1994] No.209,
the taxation authority shall notify the enterprise to pay the income tax calculated on the basis applicable tax rate.

The handling the annual loss before the advance payment of quarterage of income tax

Any enterprise with foreign investment or foreign enterprise shall firstly make up the loss occurred in previous year before the
advance payment of quarterage of income tax according to the tax law. If there is remaining sum thereafter, then the enterprise shall
pay in advance the quarterage of income tax according to applicable tax rate.

The balancing of profits and losses

where income tax is declared by the branches in consolidation Where an enterprise with foreign investment or a foreign enterprise
collectively or consolidatedly pays the income tax of their branches or business organizations within China, it shall firstly use
the profits of the branches or business organizations with the same tax rate to make up the losses occurred therein; in case no profits
thereof, it may use the profits of the bodies under the tax rate similar to that of the branch or business organization that suffers
a loss to make up the losses.

The said circular shall become effective as of July 1, 2000.

The State Administration of Taxation
2000-08-21

LEGISLATION LAW

Legislation Law of the People’s Republic of China

(Adopted at the third Session of the Ninth National People’s Congress on March 15, 2000 and promulgated by Order
No. 31 of the President of the People’s Republic of China on March 15, 2000)

Contents

Chapter I General Provisions

Chapter II Laws

Section 1 Limits of Legislative Power

Section 2 Legislation Procedures for the National People’s Congress

Section 3 Legislation Procedures for the Standing Committee of the National People’s Congress

Section 4 Legal Interpretation

Section 5 Other Provisions

Chapter III Administrative Regulations

Chapter IV Local Regulations, Autonomous Regulations, Separate Regulations and Rules

Section 1 Local Regulations, Autonomous Regulations and Separate Regulations

Section 2 Rules

Chapter V Application and Record

Chapter VI Supplementary Provisions

Chapter I

General Provisions

Article 1 This Law is enacted in accordance with the Constitution with a view to standardizing legislation, establishing a
sound legislative system of the State, establishing and improving the socialist legal system with Chinese characteristics, safeguarding
and developing socialist democracy, promoting the government of the country according to law and building a socialist country under
the rule of law.

Article 2 This Law shall be applicable to the enactment, revision and nullification of laws, administrative regulations, local
regulations, autonomous regulations and separate regulations.

The rules of the departments under the State Council and of the local governments shall be formulated, revised and nullified in accordance
with the relevant provisions of this Law.

Article 3 Laws shall be made in compliance with the basic principles laid down in the Constitution, principles of taking economic
development as the central task, adhering to the socialist road and the people’s democratic dictatorship, upholding leadership by
the Communist Party of China, upholding Marxism-Leninism, Mao Zetong Thought and Deng Xiaoping theory and persevering in reform and
in opening to the outside world.

Article 4 Laws shall be made in accordance with the statutory limits of power and procedures, on the basis of the overall interests
of the State and for the purpose of safeguarding the uniformity and dignity of the socialist legal system.

Article 5 Laws shall be made in order to embody the will of the people, enhance socialist democracy and guarantee that the
people participate in legislative activities through various channels.

Article 6 Law shall be made by proceeding from reality and scientifically and rationally prescribing the rights and duties
of citizens, legal persons and other organizations, and the powers and responsibilities of State organs.

Chapter II

Laws

Section 1

Limits of Legislative Power

Article 7 The National People’s Congress and its Standing Committee exercise the legislative power of the State.

The National People’s Congress enacts and amends basic laws governing criminal offences, civil affairs, the State organs and other
matters.

The Standing Committee of the National People’s Congress enacts and amends laws other than the ones to be enacted by the National
People’s Congress, and when the National People’s Congress is not in session, partially supplements and amends laws enacted by the
National People’s Congress, but not in contradiction to the basic principles of such laws.

Article 8 The following affairs shall only be governed by law:

(1) affairs concerning State sovereignty;

(2) formation, organization, and the functions and powers of the people’s congresses, the people’s governments, the people’s courts
and the people’s procuratorates at all levels;

(3) the system of regional national autonomy, the system of special administrative region, the system of self-government among people
at the grassroots level;

(4) criminal offences and their punishment;

(5) mandatory measures and penalties involving deprivation of citizens of their political rights or restriction of the freedom of
their person;

(6) requisition of non-State-owned property;

(7) basic civil system;

(8) basic economic system and basic systems of finance, taxation, customs, banking and foreign trade;

(9) systems of litigation and arbitration; and

(10) other affairs on which laws must be made by the National People’s Congress or its Standing Committee.

Article 9 If laws have not been enacted on the affairs specified in Article 8 of this Law, the National People’s Congress or
its Standing Committee has the power to make a decision to authorize the State Council to formulate, according to actual needs, administrative
regulations first on part of those affairs, except for the affairs concerning criminal offences and their punishment, mandatory measures
and penalties involving deprivation of citizens of their political rights or restriction of the freedom of their person, and the
judicial system.

Article 10 In a decision on authorization, the purpose and scope of the authorization shall be clearly defined.

The authorization organ shall exercise the power strictly in compliance with the authorized purpose and scope.

The authorized organ may not impart the authorized power to any other organs.

Article 11 After the administrative regulations on an affair formulated under authorization have been tested in parctice
and when the conditions are ripe for making a law on the affair, the National People’s Congress or its Standing Committee shall make
a law on it in a timely manner. As soon as the law is made, the authorization with regard to that matter shall be terminated accordingly.

Section 2

Legislation Procedures for the National People’s Congress

Article 12 The Presidium of the National People’s Congress may submit to the National People’s Congress legislative bills,
which shall be deliberated by the session of the National People’s Congress.

The Standing Committee of the National People’s Congress, the State Council, the Central Military Commission, the Supreme People’s
Court, the Supreme People’s Procuratorate and the special committees of the National People’s Congress may submit to the National
People’s Congress legislative bills, which shall be put on the agenda of a session by decision of the Presidium.

Article 13 A delegation or a group of thirty or more deputies may submit a legislative bill to the National People’s Congress.
The Presidium shall decide whether or not to put it on the agenda of the session, or shall refer do so after referring the bill to
a relevant special committee for deliberation and for making a proposal as to whether to put it on the agenda.

When the special committee holds a meeting to deliberate the bill, it may invite the sponsoring person to attend the meeting and
express opinions.

Article 14 A legislative bill to be submitted to the National People’s Congress may be submitted first to the Standing Committee
when the National People’s Congress is not in session, and after the Standing Committee has deliberated on it at its meetings
in accordance with the procedures stipulated in Section 3 of Chapter II of this Law and decides to submit it to the National People’s
Congress for deliberation, the Standing Committee or the sponsor shall make explanations to a plenary meeting of the session.

Article 15 When the Standing Committee decides to submit a legislative bill to a session of the National People’s Congress
for deliberation, it shall distribute the draft bill to the deputies one month before the session is convoked.

Article 16 The legislative bill that has been placed on the agenda of a session of the National People’s Congress shall be
deliberated on by all the delegations after the explanation made by the sponsor has been heard at a plenary meeting of the session.

When the delegations are deliberating on a legislative bill, the sponsor shall send people to listen to their opinions and answer
inquiries.

When the delegations are deliberating on a legislative bill, the relevant organ or organization shall, at the request of the delegations,
send people to give briefings therefor.

Article 17 The legislative bill that has been placed on the agenda of a session of the National People’s Congress shall be
deliberated by the relevant special committee which shall submit its deliberated opinions to the Presidium, and the opinions shall
also be printed and distributed at the session.

Article 18 The legislative bill that has been placed on the agenda of a session of the National People’s Congress shall be
subject to a unified deliberation by its Law Committee on the basis of the deliberated opinions of the various delegations and the
relevant special committee. The Law Committee shall submit to the Presidium a report on the result of its deliberation and a revised
draft law; major dissenting views shall be stated in the report. After examination and approval by the Presidium, the report and
the draft law shall be printed and distributed at the session.

Article 19 With regard to a legislative bill that has been placed on the agenda of a session of the National People’s Congress,
the executive chairmen of the Presidium may, when necessary, convene a meeting of the heads of the various delegations to hear and
discuss the deliberated opinions of the delegations on major questions in the legislative bill, and report the result of the discussion
and the opinions expressed to the Presidium.

The executive chairmen of the Presidium may also convene a meeting of the interested deputies recommended by the delegations to discuss
the major, special questions in the legislative bill, and report the result of the discussion and the opinions expressed to the Presidium.

Article 20 With regard to a legislative bill that has been placed on the agenda of a session of the National People’s Congress,
if the sponsor requests its withdrawal before it is put to vote, he shall state the reasons, and deliberation of the bill at the
session shall terminate as soon as the Presidium has accepted the request and reported the matter to the session.

Article 21 Where important questions raised during the deliberation on a legislative bill call for further study, the Congress
may, by decision of a plenary meeting according to a proposal made by the Presidium, authorize the Standing Committee to further
deliberate on the bill on the basis of deputies’ opinions, to make a decision and to give a report on the decision to the next session
of the National People’s Congress; or the Standing Committee may be authorized to further deliberate on the bill on the basis of
deputies’ opinions, to work out a revision proposal and to submit it to the next session of the National People’s Congress for deliberation
and decision.

Article 22 After a revised draft of the legislative bill has been deliberated on by the various delegations, the Law Committee
shall revise revised draft according to the deliberated opinions of the delegations and prepare a draft for vote, the Presidium shall
submit it for vote to a plenary meeting of the session, and the draft shall be subject to adoption by a simple majority of all the
deputies.

Article 23 A law adopted by the National People’s Congress shall be promulgated by Order of the President signed by the President
of the People’s Republic of China.

Section 3

Legislation Procedures for the Standing Committee of the

National People’s Congress

Article 24 The Council of Chairmen may submit legislative bills to a meeting of the Standing Committee for deliberation.

The State Council, the Central Military Commission, the Supreme People’s Court, the Supreme People’s Procuratorate or a special committee
of the National People’s Congress may submit a legislative bill to the Standing Committee, and the Council of Chairmen shall decide
whether to put it on the agenda of a meeting of the Standing Committee or to refer it first to the relevant special committee for
deliberation before deciding whether to put it on the agenda of a meeting of the Standing Committee in light of the report submitted
by the relevant special committee. If the Council of Chairmen believes that the legislative bill contains major questions calling
for further study, it may advise the sponsor of the bill to revise and improve the bill before submitting it to the Standing Committee.

Article 25 Ten or more of the members of the Standing Committee may jointly submit a legislative bill to the Standing Committee,
and the Council of Chairmen shall decide whether to put it on the agenda of a meeting of the Standing Committee, or to refer it first
to the relevant special committee for deliberation before deciding whether to put it on the agenda of a meeting of the Standing Committee
in light of the suggestions as to whether to put it on the agenda submitted by the relevant special committee. If the Council of
Chairmen decides not to put the legislative bill on the agenda of a meeting of the Standing Committee, it shall report the matter
to a meeting of the Standing Committee or give an explanation to the sponsor.

When a special committee holds a meeting to deliberate on a bill, the sponsor may be invited to attend the meeting and express opinions.

Article 26 When a legislative bill is placed on the agenda of a meeting of the Standing Committee, its draft shall, except
under special circumstances, be delivered to the component members of the Standing Committee seven days before the meeting.

Article 27 As a rule, a legislative bill placed on the agenda of a meeting of the Standing Committee shall be put to vote after
deliberations at three meetings of the Standing Committee.

When the Standing Committee is to deliberate on a legislative bill for the first time, it shall hear the explanation made by the
sponsor at a plenary meeting, and then preliminary deliberation shall be conducted at group meetings.

When the Standing Committee is to deliberate on a legislative bill for the second time, it shall hear the report made by the Law
Committee on the revision of the draft and the main problems thereof at a plenary meeting, and then further deliberation shall be
conducted at group meetings.

When the Standing Committee is to deliberate on a legislative bill for the third time, it shall hear the report made by the Law Committee
on the result of its deliberation on the draft at a plenary meeting, and then the revised draft of the legislative b8ill be deliberated
on at group meetings.

When the Standing Committee is to deliberate on a legislative bill, it may, according to needs, convene joint group meetings or plenary
meetings to discuss the main questions contained in the draft.

Article 28 If the various quarters have a consensus in the main on a legislative bill placed on the agenda of a meeting of
the Standing Committee, the bill may be put to vote after deliberation at two meetings of the Standing Committee; if the various
quarters have a consensus in the main on a legislative bill concerning partial amendment of a law, the bill may be put to vote after
deliberated at one meeting only.

Article 29 When group meetings of the Standing Committee are held to deliberate on a legislative bill, the sponsor shall send
people to listen to opinions and answer inquires.

When group meetings of the Standing Committee are held to deliberate on a legislative bill, the relevant organ or organization shall,
at the request of any group, send people to give briefings thereof.

Article 30 The legislative bill placed on the agenda of a meeting of the Standing Committee shall be deliberated by the relevant
special committee, which shall offer its opinions after deliberation and have them printed and distributed at the Standing Committee
meeting.

When a special committee holds a meeting to deliberate on a legislative bill, members of other relevant special committees may be
invited to attend the meeting and express opinions.

Article 31 With regard to a legislative bill placed on the agenda of a Standing Committee meeting, the Law Committee shall
conduct a unified deliberation on the basis of the opinions expressed by members of the Standing Committee and relevant special committees
after deliberation as well as the opinions offered by the various quarters, work out a revision report or a report on the result
of its deliberation and a revised draft of the legislative bill, and state the major dissenting view in either of the two reports.
It shall give feedback to the relevant special committees if their deliberated opinions of importance are not accepted.

When the Law Committee holds a meeting to deliberate on a legislative bill, members of other relevant special committees may be invited
to attend the meeting and express opinions.

Article 32 When a special committee is to deliberate on a legislative bill, it shall hold a plenary meeting and may, in light
of need, request the relevant organ or organization to send the leading members concerned to make explanation.

Article 33 Where the special committees disagree on major questions contained in a draft law, the matter shall be reported
to the Council of Chairmen.

Article 34 With regard to a legislative bill placed on the agenda of a Standing Committee meeting, the Law Committee, the relevant
special committee and the working offices of the Standing Committee shall listen to opinions of the various quarters by holding forums,
seminars, hearings, etc.

The working offices of the Standing Committee shall send copies of the draft law to the relevant organs, organizations and specialists
to solicit their opinions and then sort out the opinions and submit them to the Law Committee and the relevant special committee
and, where necessary, print and distribute them at a meeting of the Standing Committee.

Article 35 With regard to a legislative bill placed on the agenda of a Standing Committee meeting, it may, by decision of the
Council of Chairmen, be published for soliciting opinions. Opinions gathered from the organs, organizations and citizens shall be
sent to the working offices of the Standing Committee.

Article 36 With regard to a legislative bill placed on the agenda of a meeting of the Standing Committee, its working offices
shall collect and sort out the deliberated opinions from group meetings and the opinions offered by the various quarters as well
as other relevant information, and then send them to the Law Committee and the relevant special committee and, where necessary, print
and distribute them at a meeting of the Standing Committee.

Article 37 With regard to a legislative bill placed on the agenda of a meeting of the Standing Committee, if the sponsor requests
its withdrawal before it is put to vote, he shall state the reasons, and deliberation of the bill at the meeting shall terminate
as soon as the Council of Chairmen has accepted the request and reported the matter to the Standing Committee.

Article 38 Where a legislative bill has been deliberated on by the Standing Committee at three meetings and there are still
major questions calling for further study, the Council of Chairmen may propose, provided with the consent of a joint group meeting
or a plenary meeting, not to put the bill to vote for the time being, and refer it to the Law Committee and the relevant committee
for further deliberation.

Article 39 Where the deliberation of a legislative bill has been laid aside for two full years owing to significant disagreement
among the various quarters on the necessity and feasibility of making the bill into a law, or where a legislative bill that has been
proposed not to be put to vote for the time being has failed to be placed again on the agenda of a meeting of the Standing Committee
for deliberation within two years, the Council of Chairmen shall report the matter to the Standing Committee and deliberation on
the said bill shall terminate.

Article 40 After the revised draft of a law has been deliberated by the Standing Committee at its meeting, the Law Committee
shall further revise it on the basis of the deliberated opinions of the members of the Standing Committee before preparing a draft
for vote; then, the Council of Chairmen shall request the Standing Committee to put the draft to vote at a plenary meeting, and the
draft shall be subject to adoption by a simple majority of the total membership of the Standing Committee.

Article 41 A law adopted by the Standing Committee shall be promulgated by Order of the President signed by the president of
the People’s Republic of China.

Section 4

Legal Interpretation

Article 42 The power of legal interpretation belongs to the Standing Committee of the National People’s Congress.

A law shall be interpreted by the Standing Committee of the National People’s Congress if:

(1) the specific meaning of a provision needs to be further defined; or

(2) after its enactment, new developments make it necessary to define the basis on which to apply the law.

Article 43 The State Council, the Central Military Commission, the Supreme People’s Court, the Supreme People’s Procuratorate,
a special committee of the National People’s Congress and the standing committee of the people’s congress of a province, autonomous
region or municipality directly under the Central Government may request the Standing Committee of the National People’s Congress
to give legal interpretation.

Article 44 The working offices of the Standing Committee shall study and work out a draft for the legal interpretation, which
shall be put on the agenda of the Standing Committee meeting by decision of the Council of Chairmen.

Article 45 After a draft for legal interpretation has been deliberated by the Standing Committee at its meeting, the Law Committee
shall, on the basis of the deliberated opinions of members of the Standing Committee, deliberate on the draft and revise it before
working out a draft legal interpretation for vote.

Article 46 The draft legal interpretation for vote shall be subject to adoption by a simple majority of the total membership
of the Standing Committee and be promulgated by the Standing Committee in an announcement.

Article 47 The legal interpretation adopted by the Standing Committee of the National People’s Congress has the same effect
as the laws enacted by it.

Section 5

Other Provisions

Article 48 When a legislative bill is submitted, a version of the draft law, its explanation and other necessary information
shall be provided at the same time. The explanation on the draft law shall cover the necessity of its enactment and its main contents.

Article 49 With regard to a legislative bill submitted to the National People’s Congress or its Standing Committee, the sponsor
has the right to withdraw it before it is put on the agenda of a Congress session or Committee meeting.

Article 50 With regard to a legislative bill that has failed to pass the vote at a plenary meeting of the National People’s
Congress or its Standing Committee, if the sponsor still considers it necessary to enact the proposed law, he may submit the bill
anew in accordance with the statutory procedures, and the Presidium or the Council of Chairmen shall decide whether to put it on
the agenda of a session of the Congress or a meeting of the Standing Committee; for a bill that has failed to be adopted by the National
People’s Congress, the case shall be referred to the National People’s Congress for deliberation and decision.

Article 51 In a law, the time for its entry into effect shall be clearly stipulated.

Article 52 In an Order of the President signed for promulgating a law, the organ that enacts the law, the date of its adoption
and the time for its entry into effect shall be clearly stated.

Once a law is promulgated upon signing, it shall be published in the Bulletin of the Standing Committee of the National People’s
Congress and in the newspapers with a nationwide distribution.

The text of a law published in the Bulletin of the Standing Committee shall be the standard text.

Article 53 The procedures for revising or nullifying a law shall be governed by the relevant provisions in this Chapter.

Where only part of the articles of a law are revised or nullified, the new text of the law must be promulgated.

Article 54 According to the need of the contents, a law may consists of parts, chapters, sections, articles, paragraphs, subparagraphs
and items.

The sequence of the different parts, chapters, sections and articles shall be marked in the order of Chinese numerals, the sequence
of the paragraphs shall not be marked, that of subparagraphs shall be marked in the order of bracketed Chinese numerals and that
of items marked with Arabic numerals.

In the note to the post_title of a law, the organ that enacts the law and the date of adoption shall be clearly stated.

Article 55 The working offices of the Standing Committee of the National People’s Congress may reply, after study, to any legal
inquiries regarding specific questions and shall report thereon to the Standing Committee for the record.

Chapter III

Administrative Regulations

Article 56 The State Council shall, in accordance with the Constitution and laws, formulate administrative regulations.

The administrative regulations may be formulated to govern the following matters:

(1) matters requiring the formulation of administrative regulations in order to implement the provisions of law; and

(2) matters within the administrative functions and powers of the State Council as provided for in Article 89 of the Constitution.

When the administrative regulations governing an affair which has been formulated first by the State Council under authorization
decided on by the National People’s Congress or its Standing Committee, an affair on which the National People’s Congress or its
Standing Committee is responsible to make a law, have been tested in practice and when the conditions are ripe for making a law on
the affair, the State Council shall, in a timely manner, request the National People’s Congress or its Standing Committee to make
the law.

Article 57 The drafting of administrative regulations shall be arranged by the State Council. Where a relevant department under
the State Council considers it necessary to formulate administrative regulations to govern a matter, it shall apply to the State
Council for including the matter in its legislation list.

Article 58 In drafting administrative regulations, opinions from relevant organs, organizations and citizens shall be widely
listened to, and forums, seminars, hearings, etc. may be held for the purpose.

Article 59 When the drafting of the administrative regulations is completed, the drafting unit shall submit the draft, its
explanation, differing opinions from the various quarters on major questions in the draft and other relevant information to the legislative
affairs department under the State Council for examination.

The legislative affairs department under the State Council shall submit an examination report and a revised draft to the State Council
and in its examination report explain the major questions in the draft.

Article 60 The decision-making procedures for administrative regulations shall comply with the relevant provisions in the Organic
Law of the State Council of the People’s Republic of China.

Article 61 Administrative regulations shall be promulgated by Order of the State Council signed by the Premier of the State
Council.

Article 62 After promulgation upon signing, the administrative regulations shall immediately be published in the Bulletin of
the State Council and in newspapers with a nationwide distribution.

The text of the administrative regulations published in the Bulletin of the State Council shall be the standard text.

Chapter IV

Local Regulations, Autonomous Regulations,

Separate Regulations, and Rules

Section 1

Local Regulations, Autonomous Regulations and

Separate Regulations

Article 63 The people’s congresses or their standing committees of the provinces, autonomous regions and municipalities directly
under the Central Government may, in light of the specific conditions and actual needs of their respective administrative areas,
formulate local regulations, provided that such regulations do not contradict the Constitution, the laws and the administrative regulations.

The people’s congresses or their standing committees of the comparatively larger cities may, in light of the specific local conditions
and actual needs, formulate local regulations, provided that they do not contradict the Constitution, the laws, the administrative
regulations and the local regulations of their respective provinces or autonomous regions, and they shall submit the regulations
to the standing committees of the people’s congresses of the provinces or autonomous regions for approval before implementation.
The standing committees of the people’s congresses of the provinces or autonomous regions shall examine the legality of such local
regulations which are submitted for approval, and shall approve them within four months if they do not contradict the Constitution,
the laws, the administrative regulations, and the local regulations of their respective provinces or autonomous regions.

When the standing committee of the people’s congress of a province or autonomous region examines the local regulations of a comparatively
larger city submitted for approval, it shall make a decision to

INTERPRETATION BY THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE SECOND PARAGRAPH OF ARTICLE 93 OF THE CRIMINAL LAW

Interpretation by the Standing Committee of the National People’s Congress Regarding the Second Paragraph of Article 93 of the Criminal Law of the People’s Republic of China



	(Adopted at the 15th Meeting of the Standing Committee of the Ninth National People’s Congress on April 29, 2000) When the Standing Committee of the National People’s Congress discussed whether members of a villagers committee or of other rural organizations at the grassroots level engaging in certain work may be regarded as “the other persons who perform public service according to law” as provided for in the second paragraph of Article 93 of the Criminal Law, it made the following explanations: The members of the a villagers committee or of other rural organizations at the grassroots level who are engaged in the following administrative work shall be regarded as “the other persons who perform public service according to law” as provided for in the second paragraph of Article 93 of the Criminal Law: (1) administration of funds or materials allocated for disaster relief, emergency rescue, flood prevention and control, special care for disabled servicemen and the families of revolutionary martyrs and servicemen, aid to the poor, migration and social relief; (2) administration of funds or materials donated for public welfare; (3) management and administration of State-owned land; (4) administration of compensation for requisitioned land; (5) withholding and tax payment affairs; (6) administration of birth control, household register and conscription; and (7) assisting the people’s governments in such other administrative work. When the members of a villagers committee or of other rural organizations at the grassroots level perform the public service provided in the preceding paragraph, if they illegally take possession of public property, misappropriate public funds, extort money or property from another person or illegally accept another person’s money or property and thus committed a crime, they shall be punished according to the provisions of Articles 382 and 383 on the crime of embezzlement, provisions of Article 384 on the crime of misappropriating public funds, and provisions of Articles 385 and 386 on the crime of accepting bribes in the Criminal Law. This Interpretation is hereby announced.

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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

OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION CONCERNING LEVYING CORPORATE INCOME TAX ON INTEREST INCOME GENERATED BY FOREIGN BANKS FROM CHINA

PROTECTION OF THE RIGHTS AND INTERESTS OF RETURNED OVERSEAS CHINESE AND THE FAMILY MEMBERS OF OVERSEAS CHINESE LAW

THE LEGISLATION LAW OF THE PEOPLE’S REPUBLIC OF CHINA

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON THE PREVENTION AND CONTROL OF ATMOSPHERIC POLLUTION

PROVISIONS ON THE ADMINISTRATION OF INSURANCE COMPANIES

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON SOME TAX ISSUE CONCERNING EXPORT BY FOREIGN-INVESTED INVESTMENT COMPANIES

FOREIGN-CAPITAL ENTERPRISES LAW

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING SEVERAL ISSUES IN THE IMPLEMENTATION OF LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON INCOME TAX OF ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES

LEGISLATION LAW

INTERPRETATION BY THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE SECOND PARAGRAPH OF ARTICLE 93 OF THE CRIMINAL LAW

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