2006

CIRCULAR OF THE PRESS AND PUBLICATION ADMINISTRATION AND THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON ISSUES CONCERNING THE ESTABLISHMENT AND EQUIPMENT INTRODUCTION OF CHINESE-FOREIGN EQUITY JOINT VENTURES AND CHINESE-FOREIGN CONTRACTUAL JOINT VENTURES ENGAGING IN THE DUPLICATION AND PRODUCTION OF COMPACT DISKS (CDS)

The State Press and Publication, the Ministry of Foreign Trade and Economic Cooperation

Circular of the Press and Publication Administration and the Ministry of Foreign Trade and Economic Cooperation on Issues Concerning
the Establishment and Equipment Introduction of Chinese-foreign Equity Joint Ventures and Chinese-foreign Contractual Joint Ventures
Engaging in the Duplication and Production of Compact Disks (CDs)

XinChuLian [2000] No.36

November 2, 2000

Press and Publication Bureaus, relevant audiovisual product administrations and Foreign Trade and Economic Commissions (Departments,
Bureaus) of all provinces, autonomous regions and municipalities directly under the Central Government:

On June 12, 1996, The Circular for Further Strengthening the Administration of the Duplication of Compact Disks (CDs) (ZhongXuanFa
[1996] No.7) was jointly published and distributed by the Publicity Department of the CCCPC, the Press and Publication Administration,
the State Development Planning Commission, the Ministry of Foreign Trade and Economic Cooperation, the General Administration of
Customs, the State Administration for Industry and Commerce and the National Copyright Administration. On May 19, 1997, the Circular
on the Disposal of CD Production Lines of Closed Plants and Confiscated Illegal CD Production Lines was jointly published and distributed
by the Publicity Department of the CCCPC, the Press and Publication Administration, the State Development Planning Commission, the
Ministry of Foreign Trade and Economic Cooperation, the General Administration of Customs, the State Administration for Industry
and Commerce and the National Copyright Administration. The implementation of the above-mentioned circulars has exerted positive
effects for standardizing the administration of Chinese CD duplication industry and adjusting the layout structure of the industry.

With the development of CD memory technology and increasing demand on all kinds of large-storage CDs, the CD duplication and manufacturing
industry in China is currently facing excellent opportunities. To seize the opportunities, standardize the administration and promote
the development of the CD duplication and manufacturing industry, related policies and regulations are hereby reiterated and supplemented
as follows:

1.

The CD duplication and production in this circular refer to the duplication and production of Read-only CDs and Recordable CDs, and
writing of source CDs. Read-only CDs include CD-DA, VCD, Super-VCD, CD-ROM, DVD-Audio, DVD-Video, DVD-ROM and LD etc. Recordable
CDs include CD-R, CD-RW, DVD-R, DVD-RAM and MO etc. The equipment for production and duplication of CDs in this circular include
Precise Injection Molding Machine, High-pressure Injection Molding Machine and other equipment of the same tax line.

2.

In principle, no more Chinese-foreign equity and contractual joint ventures engaging in the duplication of read-only CDs are supposed
to be established. Foreign investors coming to China to establish Chinese-foreign equity and contractual joint ventures engaging
in the duplication of read-only CDs should obtain the Business License for CD Duplication from the Press and Publication Administration
and the Approval Certificate of Foreign-invested Enterprises from the Ministry of Foreign Trade and Economic Cooperation upon examination
and approval. These joint ventures should only begin their production after registration with competent administrations of industry
and commerce.

3.

Existing Chinese-foreign equity and contractual joint ventures with a sound track record and without any violation of laws may introduce
production lines for Read-only CDs upon approval.

4.

The Chinese side of a Chinese-foreign equity or contractual joint venture engaging in the duplication and production of CDs should
hold the majority of the shares or plays a dominant role. The capital contribution by the foreign side of this type of joint venture
should be no less than 25% of the registered capital. Foreign investors are encouraged to create projects for manufacturing C D duplication
and production equipment.

This circular shall enter into force on the day of issuing.



 
The State Press and Publication, the Ministry of Foreign Trade and Economic Cooperation
2000-11-02

 







CIRCULAR OF CHINA SECURITIES REGULATORY COMMISSION ON ISSUE ON THE ENTERPRISES OF DOMESTICALLY LISTED IN FOREIGN CURRENCIES (B-SHARES) LISTING THE B-SHARES WHICH NON-LISTED DOMESTICALLY

The China Securities Regulatory Commission

Circular of China Securities Regulatory Commission on Issue on the Enterprises of Domestically Listed In Foreign Currencies (B-shares)
Listing the B-shares which Non-listed Domestically

ZhengJianGongSiZi [2000] No.140

September 1, 2000

Each enterprise of B-shares:

With a view to improving further development of B-shares market, and protecting the interests of investors, hereby notify the relating
matters on listing the B-shares which non-listed domestically of the enterprises of the domestically listed in foreign currencies
(hereinafter referred to as B-shares), as follows:

As long as it has been a Chinese-foreign equity joint venture before listing, the B-shares enterprise shall consult the original enterprise
examination and approval authorities’ opinion on the matter of the negotiation of non-listed domestically listed B-shares in foreign
currencies. After approved by the original examination and approval authorities, and it shall file its application of list the non-listed
B-shares in foreign currencies to China Securities Regulatory Commission.

Examined and approved by China Securities Regulatory Commission, foreign initiator’s share of the B-shares company can be negotiated
in the B-share market in the three years right after the found of the company; foreign non-initiator’s share can be negotiated in
the B-shares market directly.



 
The China Securities Regulatory Commission
2000-09-01

 







PRODUCT QUALITY LAW OF THE PEOPLE’S REPUBLIC OF CHINA (AMENDMENT)






The Standing Committee of the National People’s Congress

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

No. 33

The Decisions of the Standing Committee of the National People’s Congress on Amending the Product Quality Law of the People’s Republic
of China adopted at the 16th meeting of the Standing Committee of the National People’s Congress on July 8, 2000, are hereby promulgated
and shall come into force as of the day of September 1, 2000.

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

July 8, 2000

Product Quality Law of the People’s Republic of China (Amendment) Contents

Chapter I General Principles

Chapter II Supervision and Control of Product Quality

Chapter III Responsibilities and Obligations of Producers and Sellers

Chapter IV Compensation for Damage

Chapter V Penalty Provisions

Chapter VI Supplementary Provisions

Chapter I General Principles

Article 1

The law has been formulated with a view to reinforcing the supervision and regulation of product quality, improving the quality of
products, clarifying the liabilities for product quality, protecting the legitimate rights and interests of consumers and safeguarding
the social and economic order.

Article 2

The law applies to all production and marketing activities within the territory of the People’s Republic of China.

Products mentioned in the law are referred to products processed and manufactured for the purpose of marketing.

This law is not applicable to construction projects. However, the construction materials, structural components and fittings and equipment
that fall within the category as provided in the previous paragraph shall be governed by this law.

Article 3

Producers and sellers shall have their own proper regulations for the management of product quality, rigorously implementing post-oriented
quality regulations, quality liabilities and relevant measures for their assessment.

Article 4

Producers and sellers are responsible for the product quality according to the provisions of the law.

Article 5

It is forbidden to forge or infringe upon quality marks such as certification marks and marks for fine quality products; it is forbidden
to forge the place of origin, forge or infringe upon the factory names, factory addresses; it is forbidden to produce or market adulterated
products or to use fake goods as genuine or sub-standard products as standard.

Article 6

The State encourages the use of scientific quality control methods and adoption of advanced science and technology by enterprises
to make their products surpass the standards set by the various trades, the State standards and even international standards in their
product quality and awards units and individuals who have made outstanding achievements in quality control and in bringing the product
quality up to the advanced international levels.

Article 7

The people’s government at all levels shall ensure the implementation of this law by incorporating the improvement of product quality
into their plans for national economy and social development, reinforcing the integrated planning and organization regarding product
quality, guiding, supervising and urging the producers and sellers to reinforce the management of product quality and improve the
quality of products, organizing relevant departments to lawfully taking measures for stopping those acts that violate this law in
the process of product production and product selling.

Article 8

The product quality supervision and administration departments of the State Council are responsible for the supervision and administration
of the quality of products of the whole country. All relevant departments of the State Council shall be responsible for the supervision
of product quality within their own functions and duties.

Local administrations for the supervision of product quality at and above the county level are responsible for the supervision of
product quality within their own administrative jurisdictions. The relevant departments of the local people’s governments at and
above the county level are responsible for the product quality within their respective functions and duties.

If there are different provisions concerning the supervision departments of product quality, such provisions shall be applied.

Article 9

The staff members of the people’s governments at all levels and other state organs may not abuse their power, neglect their duties
or misconduct to seek private interests, cover up or give loose to the acts violating this law that occurs within the locality or
within the industry, hinder or meddle with the investigation of acts violating this law that occurred in the process of the producing
or selling products.

Where any of the local people’s governments or other state organs covers up or give loose to the violations of this law that occurred
in the production or selling of products, the person who is held to be mainly responsible shall take legal liabilities.

Article 10

Any entity or individual is enpost_titled to report to the product quality supervision administrations or other relevant departments about
any of the acts violating this law.

The product quality supervision department and relevant departments shall hold all information about the reporter as confidential
and give awards to the reporter in accordance with the provisions of the province, autonomous region or municipality directly under
the Central Government.

Article 11

No entity or individual may prevent any of the qualified products produced outside of the region or trade from entering the region
or trade.

Chapter II Supervision and Control of Product Quality

Article 12

Quality of products shall pass standard examinations and no sub-standard products shall be used as standard ones.

Article 13

Industrial products which may be hazardous to the health of the people and the safety of lives and property shall conform to the State
and trade standards for ensuring the health of the human body and safety of lives and property. In absence of such State or trade
standards, the products shall conform to the minimum requirements for ensuring the health of the human body and the safety of lives
and property.

It shall be prohibited to produce or sell industrial products that do not come to the requirements and demands for physical health
and safety of body and property. The specific measures for management will be enacted by the State Council.

Article 14

The State shall institute the system for certifying quality control system of enterprises according to the quality control standards
commonly accepted internationally. Enterprises may apply voluntarily for certification of their quality control systems with the
product quality supervision and control departments under the State Council or quality certification organizations recognized by
the departments authorized by the quality supervision and control departments under the State Council. The qualified enterprises
shall be issued with the certificates for the quality control systems.

The State shall institute the system for certifying the product quality in reference to the internationally advanced product quality
standards and technical requirements. Enterprises may apply voluntarily for certification of the quality of their products with the
product quality supervision and control departments under the State Council or quality certification organizations recognized by
the departments authorized by the quality supervision and control departments under the State Council. The qualified enterprises
shall be issued with the certificates for product quality and are allowed to use quality certification marks on the products or on
the packages of their products.

Article 15

An supervision and inspection system based on random inspection is implemented by the state to test those products that may injure
physical health or the safety of body or property, those important industrial products that have a great bearing on the national
economy and those products that have been reported by consumers or relevant organizations as to be defective in quality. The samples
shall be randomly taken from the market or the products stored in the warehouse of the enterprise for sale. The supervision and inspection
shall be planned and organized by the product quality supervision administrations of the State Council. The local administrations
for product quality supervision on and above the county level may organize and supervise sample tests. Where there are different
provisions concerning the supervision and inspection, such provisions shall be applied.

The products supervised and inspected by the state administrations shall be not re-supervised and reinspected by the local administrations;
the products supervised and inspected by the administration on a higher level shall be not reinspected by that on a lower level.

Products may be tested according to the demand of supervision and random inspection. The quantity of samples for random sample test
shall not be bigger than that is reasonably needed, and no fees may be collected from the person under supervision and inspection.
The expenses for supervision and random inspection shall be covered in according to the provisions of the State Council.

Where the producer or seller refuses to accept the results of sample test, he may apply to the product quality supervision departments
on the higher level within 15 days from the day he receives the results for reexamination. The reexamination conclusion shall be
made by the product quality department that does the reexamination.

Article 16

No producer or seller may reject any supervision or inspection of product quality that is lawfully carried out.

Article 17

Where any product is found to be unqualified by any supervision and inspection that is carried out according to this law, the producer
or seller shall be ordered to make corrections within the time limit by the product quality supervision administration that carries
out the supervision and inspection. Where the producer or seller fails to make corrections within the time limit, he shall be publicized
by the product quality supervision administration of the people’s government on or above the provincial level; if the product quality
is still not qualified after reexamination, the producer or seller shall be ordered to suspend business for rectifications within
the time limit; if the product quality is still proved unqualified by reexamination after the period for rectifications, the business
license of the producer or seller shall be canceled.

If the products are proved to be seriously unqualified by sample test, penalty be given according to the provisions of Chapter Five
of this law.

Article 18

Product quality supervision administrations at and above the county level may exercise, when investigating acts violating this law
according to the evidence acquired concerning the act suspected of violating the law or according to reports, the following powers:

(1)

Conduct on-spot inspection over the site where the parties concerned are suspected of committing production or sale activities as
against the provisions of this law;

(2)

Inquire the legal representative, main leaders and other relevant personnel about information relevant to the suspected activities
of production and sale violating this law;

(3)

Read and copy contracts, invoices, account books and other materials connected with the parties concerned;

(4)

Close down or detain any product that they have good reason to deem as not meeting the national standards or trade standards for ensuring
physical health and the safety of body and property, any products that have other serious defects and raw subsidiary materials, wrappings,
tools directly used for production or sale of products.

The administrations at and above the county level may, when investigating activities suspected of violating this law within the functions
as stipulated by the State Council, exercise the powers as mentioned in the previous paragraph.

Article 19

Product quality testing organizations shall have the corresponding testing facilities and capabilities and shall conduct product quality
testing only after the examination and approval of the quality supervision and control departments under the people’s governments
at and above the provincial level or of the organizations they have authorized. If there are separate provisions by other laws or
administrative decrees, the relevant laws or administrative decrees shall apply.

Article 20

Social intermediary institutions engaging in the test and certification of product quality shall be established in conformity with
the law and shall not be subordinate to or have any other interest with any administrative organs or state organs.

Article 21

Product quality testing and certification institutions shall make objective and fair conclusions or certifications in accordance with
the law and relevant criteria.

Product quality certification institutions shall, in accordance with the provisions of the state, make track-up tests about the products
that have been allowed to use certification marks. If any product fails to meet the certification requirements, the institutions
shall order the producers or sellers to make mend up; if the circumstances are serious, the institutions shall repeal the qualifications
for using certification marks

Article 22

Consumers have the right to inquire about the quality problems of products with producers or sellers of the products, to complain
about product quality to the product quality supervision administrations or the administrations for industry and commerce or other
relevant departments. The relevant departments accepting complaints shall be responsible for handling the matters.

Article 23

Social organizations for protecting the rights and interests of consumers may propose to relevant departments to handle matters concerning
the complaints by consumers about product quality and give aid to consumers to sue producers whose products have caused damages.

Article 24

The product quality supervision administrations under the State Council and the people’s governments of the provinces, autonomous
regions and municipalities directly under the Central Government shall publicize regularly the quality situation of the products
that they have tested on the random basis.

Article 25

Product quality supervision administrations and other state organs as well as product quality testing institutions may not make recommendations
of the producers’ products, nor may they engage in the product management by means of supervising the production or sale of products.

Chapter III Responsibilities and Obligations of Producers and Sellers

Section 1 Responsibilities and Obligations of Producers for the Quality of Products

Article 26

Producers shall be responsible for the quality of products they produce.

Quality of products shall meet the following requirements:

(1)

Products shall be free from any irrational dangers threatening the safety of people and property. If there are State standards or
trade standards for ensuring the health of the human body and safety of lives and property, the products shall conform to such standards.

(2)

Products shall have the property they are due to have, except cases in which there are explanations about the defects of the property
of the products.

(3)

Products shall tally with the standards prescribed or specified on the packages and with the quality specified in the instructions
for use or shown in the providing samples.

Article 27

The marks on the products or the package of products shall be true to the fact and satisfy the following requirements:

(1)

Including a certificate of quality inspection;

(2)

Including the name of product and the name and addresses of producer in the Chinese language;

(3)

If, according to the characteristics and requirements for use, the specification, grades or the names and contents of the major ingredients
are required to be specified, they shall be specified clearly in Chinese; if it is required to inform consumers in advance, it shall
be marked on the outer package or relevant materials shall be provided to consumers in advance;

(4)

Products which have a time limit for use, the date of production or the period for safe use or the date of losing effect shall be
specified clearly in a conspicuous position of the product;

(5)

Products which may cause harm to the human body or injure the safety of body and property due to improper use shall carry warning
marks or warnings written in Chinese.

Unpacked food or other products which are hard to be packed according to the characteristics of products may not have marks attached.

Article 28

For products which are easily broken, inflammable, explosive, toxic, erosive or radioactive and products that cannot be handled upside
down in the process of storage or transportation or for which there are other special requirements, the package thereof shall meet
the corresponding requirements, carry warning marks or warnings written in Chinese or points of attention in handling in accordance
with the relevant provisions of the state.

Article 29

Producers are forbidden to produce products eliminated according to State laws or decrees.

Article 30

Producers are not allowed to fake the place of origin or fake or use the names and addresses of other producers.

Article 31

Producers are not allowed to fake or use the quality marks such as certification marks and fine quality product marks.

Article 32

Producers shall not adulterate their products or pose fake products as genuine or shoddy products as good or non-standard products
as standard.

Section 2 Responsibilities and Obligations of Sellers for the Quality of Products

Article 33

Sellers shall implement the system of examination and acceptance of goods procured, verifying the product quality certificates and
other marks.

Article 34

Sellers shall adopt measures to maintain the quality of products for sale.

Article 35

Sellers may not sell any product that has been put into disuse by order of the state and therefore the sale of which has been prohibited
or those that have lost effect or have deteriorated.

Article 36

The marks of products for sale by sellers shall conform to the provisions of Article 15 of this law.

Article 37

Sellers are not allowed to fake the place of origin or fake or use the names and addresses of other producers.

Article 38

Sellers are not allowed to fake or use quality marks such as certification marks and fine quality marks.

Article 39

Sellers are not allowed to adulterate the products for sale or pose fake ones as genuine or shoddy ones as good or sub-standard ones
as standard.

Chapter IV Compensation for Damage

Article 40

Sellers shall be responsible for repair, replacement or return and compensate for the damages done to end-users or consumers if one
of the following cases occurs:

(1)

Products do not have the property for use it should have and there is no advance explanations;

(2)

The quality of products does not conform to the standards or to the standards specified in the packages;

(3)

The quality of products does not tally with the quality specified in the instruction for use or with the quality of samples provided.

After the sellers undertake the repairs, replacement, return or compensation for damages according to the provisions of the preceding
paragraph, the sellers have the right to recover the losses from producers or suppliers if the responsibility rests with the producers
or other marketers that provide the products.

If the sellers fail to perform the duty of repairing, replacing, returning or compensating for damages as provided in the first paragraph
of this articles, the quality supervision and control departments or administrations for industry and commerce shall order them to
correct.

If there are relevant provisions in the contracts for marketing or processing between producers, marketers or between producers and
marketers, the parties to the contracts shall implement the provisions of the contracts.

Article 41

Producers shall be responsible for compensating for damages done to the person or property except the defective products themselves
(hereinafter referred to as “property of others”) due to the defects of products.

Producers shall not be held responsible if they can prove one of the following cases:

(1)

The products have not been put into circulation;

(2)

The defects are non-existent when the products are put into circulation;

(3)

The defects cannot be found at the time of circulation due to scientific and technological reasons.

Article 42

Sellers shall be responsible for compensation if the damages caused to the property of others are caused by defects resulting from
the fault on the part of sellers.

Sellers shall be responsible if they cannot identify the producers or suppliers of the defective products.

Article 43

If damages are done to the person or properties of others due to the defects of products, the victims may claim for compensation either
from the producers or sellers. If the responsibility rests with the producers and the compensation is paid by the sellers, the sellers
have the right to recover their losses from the producers. If the responsibility rests with the sellers and the compensation is paid
by the producers, the producers have the right to recover their losses.

Article 44

If bodily injury is caused by the defect of products, the party responsible shall pay for medical expenses and nursing expenses during
medical treatment, the lost income due to absence from work; if the bodily injury has resulted in disability, the party responsible
shall also be responsible for the expenses for self-supporting equipment, living allowances, compensation of the disabled person
and the living expenses necessary for those under the support of the disabled person; if death has resulted, the party responsible
shall pay for the funeral expenses, compensation and the living expenses necessary for those supported by the dead.

If the defect of product causes losses in property of the victims, the party shall be responsible for restoring or compensating for
it. If the victims sustain other major losses, the party responsible shall compensate for the losses.

Article 45

The validity period for claiming for compensation for damages due to defects of products is two years, starting from the date when
the parties concerned is notified or should have known the matter.

The right of request for compensation claim for damages done due to defects of products shall lose effect after the tenth year after
the products shall lose effect after the tenth year after the products with defects that cause damages was first delivered to the
users or consumers. However, cases in which the specified safe use period has not been exceeded are exceptions.

Article 46

Defects mentioned in the law are referred to the irrational dangers existing in the products that threaten the safety of person or
properties or products that do not conform to the standards set by the State or the specific trade if there is any.

Article 47

If civil disputes occur from product quality, the parties concerned may settle their disputes through consultation or mediation. If
any party concerned refuses to settle the disputes through consultation or mediation or consultation and mediation fail to settle
the disputes, parties concerned may, according to their agreement, apply for arbitration with arbitration organizations. If the parties
concerned fail to reach agreement on arbitration or if the arbitration becomes void, the cases may be brought before the people’s
courts.

Article 48

Arbitration organizations or the people’s courts may entrust the product quality supervision and control organizations provided for
in Article 11 of this law to test the quality of products concerned.

Chapter V Penalty Provisions

Article 49

An enterprise producing products that do not conform to the state standard or the specific trade standard for ensuring physical health
and the safety of human body and property shall be ordered to stop production and sale; the products illegally produced and sold
shall be confiscated; a fine less than three times the value of the products illegally produced or sold shall be imposed upon the
producer or seller; where there are illegal proceeds, such proceeds shall be confiscated; if the circumstances are serious, the business
license shall be revoked. If the case is serious enough to constitute a crime, criminal responsibility shall be investigated.

Article 50

If a producer or a seller is found adulterating their products or posing fake ones as genuine, inferior ones as superior or sub-standard
ones as standard, it shall be ordered to stop production or selling; the products illegally produced or sold shall be confiscated
and a fine of more than 50% but less than three times the value of the products illegally produced or sold shall be imposed; where
there are illegal proceeds, such proceeds shall be confiscated; if the circumstances are serious, the business license shall be revoked;
if the case is serious enough to constitute a crime, criminal responsibilities shall be investigated.

Article 51

If an enterprise produces products clearly provided as being eliminated by the State, it shall be ordered to stop production and its
products and illegal proceeds shall be confiscated and a fine amounting to over one time and less than five times the total amount
of proceeds shall be imposed and, if necessary, the production license may be revoked.

Article 52

Any person selling products that have lost effect or deteriorated shall be ordered to stop the selling and the products for sale shall
be confiscated and be fined an amount of less than two times the value of the products for illegal sale; where any illegal proceeds
have occurred, such proceeds shall be confiscated; if the circumstances are serious, the business license shall be revoked. If the
case is serious enough to constitute a crime, criminal responsibility shall be investigated.

Article 53

If a producer or a seller is found to have fabricated the place of origin, fabricated or used without authorization the names and
addresses of other producers, fabricated or used without authorization quality marks such as certification marks, it shall be ordered
to make corrections and be fined an amount of not more than the total value of the products illegal produced or sold with the products
illegally produced or sold being confiscated; if any illegal proceeds have occurred, such proceeds shall be confiscated; if the circumstances
are serious, the business license shall be revoked.

Article 54

If the product marks of a producer do not conform to the provisions of Article 27 of this law, the producer shall be ordered to make
corrections; If the product marks on the packages of products do not conform to the provisions of Article 27 (4) (5) and the case
is serious enough, the producer or seller shall be ordered to stop the production or selling and be fined an amount of not more than
30% of the value of the products illegally produced or sold; if any illegal proceeds have occurred, such shall be confiscated.

Article 55

If the seller that sells the products which are prohibited from selling as provided in articles 49 to 53 of this law have sufficient
evidence to prove that he does not know that the products had been prohibited from selling and truthfully reveals the source of products,
he may be punished in a lenient way or be given a lesser punishment.

Article 56

Any person who rejects lawful product quality supervision and inspection shall be given a warning and be ordered to make corrections;
if he refuses to make corrections, he shall be ordered to suspend business for rectifications; if the circumstances are extremely
serious, the business license shall be revoked.

Article 57

Any product quality test institution or certification institution fabricates inspection results or issues false certificates shall
be ordered to make corrections, and a fine of not less than 50,000 Yuan but not more than 100,000 Yuan shall be imposed upon the
institution while a fine of not less than 10,000 Yuan but not more than 50,000 Yuan be imposed upon the person-in-charge who is held
to be directly responsible and other personnel who are held to be directly responsible; if any illegal proceeds have occurred, such
proceeds shall be confiscated; if the circumstances are serious, the institution shall be disqualified for inspection and certification;
if the case is so serious as to have constituted a crime, criminal liability shall be investigated.

Any product quality test institution or product quality certification institution that produces unreal results that has led to losses
shall be held responsible for making compensations; if the losses are great, they may be disqualified for testing and certification.

Where any product quality certification institution violates the provisions of article 21 (2) of this law by failing to demanding
those producers or sellers whose product does not come up to the requirements of certifications yet use certification marks on their
products to make corrections or failing to revoke their qualifications for using certification marks shall undertake joint and several
liabilities with the producers or sellers of the products; if the circumstances are serious, they shall be disqualified for certification.

Article 58

Where public organizations or public intermediary organizations makes promises or warranties concerning the quality of a product which,
however, does not meet the requirements for such promises or warranties and which causes losses to consumers, they shall take several
and joint liabilities with the producers and sellers.

Article 59

If the producer or seller falsely publicizes the quality of a product in advertisements so that consumers are cheated or mislead,
he shall take legal liabilities according to the Advertising Law of the People’s Republic of China.

Article 60

The subsidiary materials, packages, tools used by produced for producing those products as mentioned in articles 49 and 51 of this
law or for producing inferior products in the name of superior products shall be confiscated.

Article 61

If any one clearly knows or should have known that a product is prohibited from production and selling by this law but still facilitates
the transportation, safekeeping, storage, etc. or supplies the production technique for producing inferior products in the name of
superior ones, all the proceeds incurred from the transportation, safekeeping, storage or supply of production techniques for producing
inferior products in the name of superior ones shall be confiscated and be fined an amount of not less than 50% but not more than
3 times of the illegal proceeds; if the case is so serious as to have constituted a crime, criminal liabilities shall be investigated.

Article 62

Where any business operator of the services industry uses any of the products which are prohibited by articles 49 to 52 of this law
from selling into management services shall be ordered to stop using; if he clearly knows or should have known that the products
he is using is prohibited f

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION CONCERNING ISSUING THE STANDARD OF THE PEOPLE’S REPUBLIC OF CHINA ON IMPORT AND EXPORT COMPANY CODE

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation Concerning Issuing the Standard of the People’s Republic of China
on Import and Export Company Code

WaiJingMaoJiFa [2000] No.18

January 14, 2000

Commissions (departments, bureaus) of Foreign Trade and Economic Cooperation in various provinces, autonomous regions, municipalities
directly under the Central Government and municipalities separately listed on the State plan, units directly under the Ministry of
Foreign Trade and Economic Cooperation, chambers of commerce, associations and learned societies:

The Standard of the People’s Republic of China on Import and Export Company Code is hereby distributed to you for implementation.

This standard with the code number WM1-1999 is a compulsory trade standard, which comes into force on January 1, 2000. It is promulgated
and administered by the Ministry of Foreign Trade and Economic Cooperation. The quota and license administration bureau of the Ministry
of Foreign Trade and Economic Cooperation is responsible for its interpretation. The China Standard Press takes charge of its publication.

 
The Ministry of Foreign Trade and Economic Cooperation
2000-01-14

 




REPLY OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON ISSUES CONCERNING THE FOREIGN EXCHANGE ADMINISTRATION OF FOREIGN REINVESTMENT IN RMB

The State Administration of Foreign Exchange

Reply of the State Administration of Foreign Exchange on Issues Concerning the Foreign Exchange Administration of Foreign Reinvestment
in RMB

HuiFu [2000] No.129

May 10, 2000

Nanjing Foreign Exchange Administrative:

Your Letter for Instructions on Reinvestment in China by the Foreign Investor of Ashland (Nanjing) Chemical Co., Ltd. with Its Net
Assets upon Liquidation (NanHuiFa [2000] No.1) and the Letter for Instructions on Reinvestment in China by the Foreign Party of Nanjiang
Sanyi Feed Additive Co., Ltd. with its Net Assets upon Liquidation (NanHuiFa [2000] No.5) have been received. After deliberation
and consultation with the Ministry of Foreign Trade and Economic Cooperation (see the Attachment), our reply on issues concerning
foreign exchange administration is as follows:

1.

Foreign investors who reinvest in China with RMB denominated capital from the liquidation, stock equity transfer or advance investment
recovery of the respective enterprises they invest in shall enjoy the same policy treatment as those reinvest in foreign currencies.
The relevant local foreign exchange administrative bureau may examine such reinvestments on a case-by-case basis and grant its approval
upon satisfaction of the following principles:

a.

The foreign investor can be proved to have legally withdrawn its investment from the foreign invested enterprise it originally invested
in (such proof can be obtained through examination of the documents of the original enterprise such as replies from authorities of
foreign trade and economy, contracts, regulations, and capital verification reports).

b.

The RMB capital to be invested is indeed the legal income of the foreign party generated through liquidation, stock equity transfer
or advance investment recovery, and such liquidation, stock equity transfer or advance investment recovery has been conducted following
the relevant procedures. (Examination shall be conducted on such materials as listed in the operational rules laid down by our administration
on liquidation, stock equity transfer and advance investment recovery).

c.

The foreign investor is at the same time the shareholder of the enterprise with reinvestment and is indeed liable for providing capital
to the enterprise. (The verification can be conducted by examining such documents of the enterprise with reinvestment as replies
of relevant authorities of foreign trade and economy, approval certificates, contracts, regulations, and capital verification reports).

The relevant local bureaus may issue the Certificate for Providing RMB Denominated Capital to the foreign investor upon completion
of verification according to the above principles; because no tax rebate is involved, the source of the RMB denominated capital shall
be pointed out in the Certificate with a view to avoid confusion with reinvestment with RMB denominated profits.

2.

Problems confronted during the implementation process shall be timely reported to the State Administration.

This is the reply.

Attachment:Comments of the Ministry of Foreign Trade and Economic Cooperation

April 4, 2000

The Department of Capital Account Transaction Administration of the State Administration of Foreign Exchange:

Your “Letter on Issues Concerning Reinvestment by Foreign Investors in China with RMB Denominated Capital Generated from Liquidation,
Stock Equity Transfer and Advance Investment Recovery” has been received. After consultation with the Department of Treaty and Law
of MOFTEC, we now reply as follows:

The Circular on Issues Concerning Investment by Foreign Investors in RMB (WaiJingMaoZiZongHanZi [1998] No.492) of our ministry is
still valid. At present, investment by foreign investors with RMB denominated non-profit capital is still not allowed in principle.
Foreign investors who reinvest with RMB denominated capital gained legally from the liquidation, stock equity transfer and advance
investment recovery of the respective enterprises they invested in shall enjoy the same policy treatment as those reinvest in foreign
currencies.

The above comments are for your reference only.



 
The State Administration of Foreign Exchange
2000-05-10

 







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

The State Administration of Taxation

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

GuoShuiFa [2000] No.82

May 12, 2000

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

1.

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

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

2.

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

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

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

3.

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

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

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

4.

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

5.

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

6.

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



 
The State Administration of Taxation
2000-05-12

 







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

The Ministry of Foreign Trade and Economic Cooperation

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

WaiJingMaoFaZhanYunHanZi [2000] No.3303

November 21, 2000

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

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

1.

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

2.

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

(1)

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

(2)

original approval certificate (original and a copy);

(3)

business license (photocopy);

(4)

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

(5)

resumes of the leader and key employees of the branch

(6)

testimonial of fixed place operation

3.

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

(1)

capital verification report

(2)

agreement on amendments to the corporate statute

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

4.

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

5.

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

6.

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

7.

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

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

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

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

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



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

 







EXTRADITION LAW

Extradition Law of the People’s Republic of China

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

Contents 

Chapter I     General Provisions 

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

  Section 1   Conditions for Extradition 

  Section 2   Submission of the Request for Extradition 

  Section 3   Examination of the Request for Extradition 

  Section 4   Compulsory Measures for Extradition 

  Section 5   Execution of Extradition 

  Section 6   Postponed and Temporary Extradition 

  Section 7   Transit for Extradition 

Chapter III   Request Made to Foreign States for Extradition 

Chapter IV    Supplementary Provisions 

Chapter I 

General Provisions 

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

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

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

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

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

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

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

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

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

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

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

 

Chapter II 

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

Section 1 

Conditions for Extradition 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Section 2 

Submission of the Request for Extradition 

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

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

(1)  the name of the requesting authority; 

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

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

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

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

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

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

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

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

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

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

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

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

Section 3 

Examination of the Request for Extradition 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Section 4 

Compulsory Measures for Extradition 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Section 5 

Execution of Extradition 

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

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

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

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

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

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

Section 6 

Postponed and Temporary Extradition 

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

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

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

Section 7 

Transit for Extradition 

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

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

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

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

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

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

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

Chapter III 

Request Made to Foreign States for Extradition 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    

MOFTEC P.R.C.

EDITOR:Victor






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

The China Insurance Regulatory Commission

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

BaoJianFa [2000] No.144

August 4, 2000

Chapter I General Provisions

Article 1

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

Article 2

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

Article 3

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

Article 4

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

Article 5

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

Chapter II Administration on the Agency Qualifications

Article 6

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

Article 7

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

(1)

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

(2)

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

(3)

having a fixed business premises;

(4)

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

Article 8

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

(1)

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

(2)

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

(3)

a duplicate of the “Organization Code Certificate”;

(4)

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

(5)

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

(6)

other documents required by CIRC.

Article 9

CIRC shall issue a “License for Concurrent-Business Insurance Agency” to each entity that is checked and approved to have obtained
the qualification for concurrent-business insurance agency.

Article 10

The validity period for the “License for Concurrent-Business Insurance Agency” shall be three years, and a concurrent-business insurance
agent shall apply to go through the procedures for change of the license two months before the expiration of the validity period.

Article 11

Where a concurrent-business insurance agent needs to modify any content of the “License for Concurrent-Business Insurance Agency”
due to the change of its name or scope of its major business, it shall, within three months, apply to CIRC to go through the modification
procedures.

Article 12

Where a concurrent-business insurance agent is no longer to be qualified for concurrent-business insurance agency due to merger, cancellation
or dissolution, etc., it shall return the “License for Concurrent-Business Insurance Agency” to CIRC within one month.

Chapter III Administration of Agency Relationships

Article 13

An insurance company may only set up the concurrent-business insurance agency relationship with an entity that has obtained the “License
for Concurrent-Business Insurance Agency”, and authorize such an entity to carry out the business of insurance agency.

Article 14

An insurance company shall, when setting up the insurance agency relationship with a concurrent-business insurance agent, report to
CIRC for record, and shall submit the following documents:

(1)

a registration form for the concurrent-business insurance agency relationship (in triplet);

(2)

a duplicate of the “License for Concurrent-Business Insurance Agency”;

(3)

a computer data disk for applying for the insurance agency relationship. Where CIRC does not raise any objection within ten working
days of receipt of the documents for record, the insurance agency contract shall become effective, and the insurance agency relationship
is therefore set up.

Article 15

After the insurance agency relationship is set up, the insurance company shall issue a “Power of Attorney for Concurrent-Business
Insurance Agency” to the concurrent-business insurance agent. The production of the “Power of Attorney for Concurrent-Business Insurance
Agency” shall be centrally supervised by the CIRC.

Article 16

An insurance company shall, when terminating the insurance agency relationship with a concurrent-business insurance agent, take back
the “Power of Attorney for Concurrent-Business Insurance Agency”, fill out the “Registration Form for Concurrent-Business Insurance
Agency Relationship” and report the termination to the CIRC for record in a timely fashion.

Article 17

A concurrent-business insurance agent may only undertake the insurance business on behalf of one insurance company, and the scope
of the undertaken business shall be limited to the undertaken insurance category specified in the “License for Concurrent-Business
Insurance Agency”.

Article 18

A concurrent-business insurance agent shall place its “License for Concurrent-Business Insurance Agency” and “Power of Attorney for
Concurrent-Business Insurance Agency” at an obvious location of its business premise.

Chapter IV Administration of Practicing of Business

Article 19

An insurance company shall, when setting up the agency relationship with a concurrent-business agent, be responsible for determining
that the concurrent-business agent:

(1)

has the “License for Concurrent-Business Insurance Agency”; and

(2)

has no agency relationship with any other insurance company.

Article 20

An insurance company shall guarantee that each of its concurrent-business agents:

(1)

hold the “Power of Attorney for Concurrent-Business Insurance Agency”;

(2)

undertake the insurance within the category permitted by the “License for Concurrent-Business Insurance Agency”;

(3)

have received corresponding professional trainings.

Article 21

A concurrent-business insurance agent may only undertake the insurance business inside its main business premise, and shall not separately
set up agency offices outside its business premises.

Article 22

A concurrent-business insurance agent shall not have any of the following acts when it engages in the business of insurance agency:

(1)

to, without authorization, modify the insurance clauses, or raise or lower the insurance premium;

(2)

to, by taking advantage of administrative power or of duty or occupational conveniences, force or entice a insurer to purchase the
designated insurance policy;

(3)

to, by unfair means, force, entice or limit a insurer or insured to take out insurance policies or change the insurer ;

(4)

to collude with the insurer, the insured or the beneficiary to deceive the insurer ;

(5)

to make incorrect or misleading propaganda to other insurance institutions or insurance agency institutions;

(6)

to undertake the business of a re-insurance agency;

(7)

to misappropriate or embezzle the insurance premium;

(8)

to concurrently engage in the business of insurance brokerage;

(9)

other acts ascertained by the CIRC to have damaged the benefits of the insurer, the insurer or the insured.

Article 23

A concurrent-business insurance agent’s taking out policies of its own property insurance or life insurance from an insurance company
shall be regarded as if the insurance company directly underwrites the insurance business, and the concurrent-business insurance
agent shall not draw any agency commission.

Article 24

The agency period in a concurrent-business insurance agency contract shall be limited to the validity period of the “License for Concurrent-business
Insurance Agency” held by concurrent-business insurance agent at the time of conclusion of the contract.

Article 25

A concurrent-business insurance agency contract shall clearly state such contents as the category of the undertaken insurance, scope
of authorization, rate of commission, payment method and the time limit for transfer of premium, etc..

Article 26

A concurrent-business insurance agent shall, in accordance with the concurrent-business insurance agency contract, settle the premium
with and deliver the relevant documents to the insurance company in time. The time for the settlement of the premium shall be no
more than one month, and the premium shall not be used to deduct the agency commission.

Article 27

A concurrent-business insurance agent shall set up an independent premium income account and shall conduct separate accounting for
the business of concurrent-business insurance agency.

Article 28

A concurrent-business insurance agent shall set up account books for its business, which shall clearly state item by item such contents
as the item number of the insurance policy, category of the undertaken insurance, insurance amount, insurance premium, agency commission,
etc..

Article 29

An insurance company shall not pay the agency commission to a concurrent-business insurance agent by means of direct deduction with
premium or by cash.

Article 30

An insurance company shall not, without being approved by CIRC, entrust a concurrent-business insurance agent to issue the insurance
policies.

Article 31

An insurance company shall set up a registration book of concurrent-business insurance agency contracts, shall establish and improve
the archives of concurrent-business insurance agents, and shall set up account books for the agency business by regarding each concurrent-business
insurance agent to be a unit.

Article 32

An insurance company shall formulate a uniform text of concurrent-business insurance agency contracts and shall submit it to CIRC
for record.

Article 33

An insurance company shall hold regular trainings for the concurrent-business insurance agents, and the time for each concurrent-business
insurance agent to receive trainings in each year shall be no less than 60 hours.

Article 34

The measures for the payment and deposition of the guarantee bond of concurrent-business insurance agent shall be separately stipulated.

Chapter V Penalty Provisions

Article 35

Whoever violates these Measures by illegally engaging in the business of insurance agency without obtaining the “License for Concurrent-Business
Insurance Agency” and the “Power of Attorney for Concurrent-Business Insurance Agency” shall be punished in accordance with Article
142 of the “Insurance Law of the People’s Republic of China”.

Article 36

Any concurrent-business insurance agent who violates these Measures by deceiving the insurer, the insured or the beneficiary in the
business of insurance agency shall be punished in accordance with Article 133 of the “Insurance Law of the People’s Republic of
China”.

Article 37

Where a concurrent-business insurance agent violates Article 17 , 21, 22, or 23 of these Measures, it shall be ordered by CIRC to
make a correction, and a warning or a fine of no less than 10,000 Yuan but no more than 50,000 Yuan shall be imposed; if the case
is serious, its “License for Concurrent-Business Insurance Agency” shall be revoked. If its act constitutes a crime, it shall be
investigated for criminal liabilities in accordance with the law.

Article 38

Where an insurance company violates Article 13 , 19, 20, 29 or 30 of these Measures, it shall be ordered by the CIRC to make a correction,
and a fine of no less than 10,000 Yuan but no more than 100,000 Yuan shall be imposed; if the case is serious, it shall be ordered
by the CIRC to dismiss and replace the relevant liable person(s) or to cease its business for rectification, or the relevant main
liable person’s qualification for holding the post as a senior manager shall be cancelled.

Chapter VI Supplementary Provisions

Article 39

CIRC shall be responsible for the interpretation and amendment of these Measures.

Article 40

Where any provision relating to the original administration of concurrent-business insurance agents is inconsistent with these Measures,
these Measures shall prevail.

Article 41

These Measures shall enter into force as of the date of their promulgation.



 
The China Insurance Regulatory Commission
2000-08-04

 







CONSTITUTION ACT, 1982 – page 22

NOTES (1) The enacting clause was repealed by the Statute Law Revision Act, 1893, 56-57 Vict., c. 14 (U.K.). It read as...