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2007

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON THE EXECUTION OF THE CIRCULAR CONCERNING THE RELEVANT ISSUES OF SOFTWARE EXPORTS

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on the Execution of the Circular Concerning the Relevant Issues of Software
Exports

HuiFa [2001] No.28

February 22, 2001

The sub-administrations of the State Administration of Foreign Exchange; the departments of foreign exchange administration of Beijing
and Chongqin; and the sub-administrations of Dalian, Qingdao, Ningbo, Xiamen and Shenzhen:

In order to promote the software export enterprises to export their products and earn foreign exchange income, the relevant issues
of the execution of item 7) of Article 1 of the Circular Concerning the Relevant Issues of Software Exports (WaiJingMaoJiFa [2000]
No.680 ) (hereinafter referred to as the Circular) promulgated jointly by the Ministry of Foreign Trade and Economic Cooperation,
the Ministry of Information Industry, the State Administration of Taxation, the General Administration of Customs, the State Administration
of Foreign Exchange and the State Administration of Statistics are hereby defined as follows:

1.

The domestic-funded software enterprises of self-management export (hereinafter referred to as “enterprises”) that meet the conditions
for account opening as provided by the Circular shall, when applying to the foreign exchange administrations for opening accounts
of foreign exchange settlement, provide the “Certificate of Cognizance of Software Enterprise” issued by the competent department
under the Ministry of Information Industry, apart from providing the relevant materials as provided for in the Procedures for the
Keeping of Limited Amount of Foreign Exchange Income by Domestic-funded Enterprises.

2.

When making the examination and verification of account opening of an enterprise, the foreign exchange administration shall examine
and verify whether the enterprise is in the “List of Honorable Enterprises”, and shall determine the maximum limit of the account
on the basis of 15% of the sum of cancellation after verification of export earnings in foreign exchange of last year issued by the
foreign exchange administration of the place where the enterprise is located. The sum cancelled after verification of export earnings
in foreign exchange that is used to determine the limit shall be kept together with the materials for account opening, for the purpose
of check and verification.

3.

The sub-administrations shall strictly take the sum cancelled after verification of export earnings in foreign exchange of last year
that actually occurred to the enterprise as the base, and determine the limit of the account of foreign exchange settlement according
to the prescribed proportion. The limit may not be broken without the approval of the general administration.

The sub-administrations shall transmit this Circular to their branches as soon as possible after receiving it.



 
The State Administration of Foreign Exchange
2001-02-22

 







PHARMACEUTICAL ADMINISTRATION LAW OF THE PEOPLE’S REPUBLIC OF CHINA






The Standing Committee of the National People’s Congress

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

No.45

The Pharmaceutical Administration Law of the People’s Republic of China has been revised at the Twentieth Meeting of the Standing
Committee of the Ninth National People’s Congress on February 28, 2000, and now promulgated the revised edition of the Pharmaceutical
Administration Law of the People’s Republic of China, and shall enter into force as of December 1, 2001.

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

February 28, 2001

Pharmaceutical Administration Law of the People’s Republic of China ContentsChapter I General Provisions

Chapter II Administration of Pharmaceutical Producing Enterprises

Chapter III Administration of Pharmaceutical Trading Enterprises

Chapter IV Administration of Pharmaceuticals at Medical Organizations

Chapter V Pharmaceutical Administration

Chapter VI Administration of the Packaging of Pharmaceuticals

Chapter VII Administration of the Prices and Advertising of Pharmaceuticals

Chapter VIII Supervision over Pharmaceuticals

Chapter IX Legal Responsibility

Chapter X Supplementary Provisions

Chapter I General Provisions

Article 1

This law is formulated to enhance the supervision and control of pharmaceuticals, ensure their quality, guarantee safety in medication,
and safeguard the health and legal rights and interests of the people.

Article 2

The law shall be applicable to any units or individuals engaged in research, production, trade, use, supervision and management of
pharmaceuticals within the territory of the People’s Republic of China.

Article 3

The State shall develop both modern and traditional medicines encourage their role in the prevention and treatment of diseases and
in health care.

The State shall protect the resources of wild medicinal resources and encourage the domestic cultivation of Chinese traditional medicinal
crops.

Article 4

The State shall encourage the research and production of new medicine and protect the legal rights and interests of its citizens,
natural persons and other organizations in the research and development of new medicine.

Article 5

The pharmaceuticals supervisory and administrative departments under the State Council shall be responsible for the supervision and
control of pharmaceuticals throughout the country. Other relevant departments under the State Council shall be responsible for the
supervision and control of pharmaceuticals related to the scope of their functions.

The pharmaceutical supervisory and administrative departments of the provinces, autonomous regions and municipalities directly under
the central government shall be responsible for the supervision and control of pharmaceuticals within their administrative regions.
Other relevant departments of the provinces, autonomous regions and municipalities directly under the central government shall be
responsible for the supervision and control of pharmaceuticals related to the scope of their functions.

The pharmaceutical supervisory and administrative departments under the State Council shall cooperate with the general administrative
department of the economy under the State Council to carry out pharmaceutical development plans and industrial policies formulated
by the State.

Article 6

The pharmaceutical inspection institutions established or approved by the pharmaceutical supervisory and administrative departments
shall be charged with the work of pharmaceutical examination and approval, as well as quality inspection, in accordance with laws
and regulations.

Chapter II Administration of Pharmaceutical Producing Enterprises

Article 7

The establishment of a pharmaceutical producing enterprise must be approved by and issued a Pharmaceutical Production License by the
pharmaceutical supervisory and administrative department of the province, autonomous region, or municipality directly under the Central
government in which the enterprise is located.

The establishment shall be registered at the industry and commerce administrative department based on the Pharmaceutical Production
License, without which no pharmaceuticals shall be produced.

The Pharmaceutical Production License shall bear the scope of production and a period of validity, and upon expiration a new license
shall be issued after examination for its renewal.

The approval of the establishment of pharmaceutical producing enterprises by the pharmaceutical supervisory and administrative departments
shall be in conformity with Article 8 of this law, as well as the pharmaceutical development plan and the industrial policies formulated
by the State to avoid the instance of a repeat establishment.

Article 8

To establish a pharmaceutical producing enterprise, the following requirements must be met:

(1)

It shall be staffed with legally certified pharmaceutical technical personnel, engineering technical personnel, as well as corresponding
skilled workers.

(2)

It shall have factory premises, facilities and a sanitary environment suitable for the medicines produced.

(3)

It shall have a unit or competent personnel capable of inspecting the quality of the medicines produced, as well as necessary instruments
and equipment.

(4)

It shall have rules and regulations to ensure the quality of medicines.

Article 9

Pharmaceutical producing enterprises must organize production in accordance with the “Standards for Quality Control of Pharmaceutical
Production” formulated by the pharmaceutical supervisory and administrative departments under the State Council on the basis of this
Law. Pharmaceutical supervisory and administrative departments shall confirm whether the pharmaceutical producing enterprises have
met the requirements of the “Standards,” and shall issue certificates to those qualified ones.

The detailed implementation measures and implementation process of the “Standards for Quality Control of Pharmaceutical Production”
shall be formulated by the pharmaceutical supervisory and administrative department under the State Council.

Article 10

Except in the preparation of traditional Chinese medicines into ready-to-use forms, pharmaceuticals must be produced in accordance
with the national pharmaceutical standard and the technological procedures approved by the supervisory and administrative departments
of pharmaceuticals under the State Council, and the record of production must be complete and accurate. The changes of technological
procedure made by the pharmaceutical producing enterprises which affect the quality of the pharmaceuticals shall be examined and
approved by the original approval authorities.

The process for preparing traditional Chinese medicines into ready-to-use forms must conform to the national pharmaceutical standards,
and in the absence of such standards, the process must conform to the processing standards stipulated by the supervisory and administrative
departments of pharmaceuticals of the provinces, autonomous regions, or municipalities directly under the central government. The
processing standards stipulated by the supervisory and administrative departments of pharmaceuticals of the provinces, autonomous
regions, or municipalities directly under the central governments shall be placed on record at the pharmaceutical supervisory and
administrative department under the State Council.

Article 11

The raw and supplementary materials used for the production of pharmaceuticals must conform to the requirements for medicinal use.

Article 12

The pharmaceutical producing enterprises must conduct quality inspections on the pharmaceuticals they produce; products which do not
meet national pharmaceutical standards or are not prepared in conformity with the processing standards stipulated by the pharmaceutical
supervisory and administrative departments of the provinces, autonomous regions, or municipalities directly under the central government
shall not leave the factory.

Article 13

Pharmaceutical producing enterprises can accept the authorization to produce pharmaceuticals after they obtain approval from the pharmaceutical
supervisory and administrative department under the State Council or the pharmaceutical supervisory and administrative departments
of the provinces, autonomous regions, or municipalities directly under the central government authorized by the supervisory and administrative
department of pharmaceuticals under the State Council.

Chapter III Administration of Pharmaceutical Trading Enterprises

Article 14

The establishment of pharmaceutical wholesale enterprises must be sanctioned by the competent local authorities of the production
and trade of pharmaceuticals of the provinces, autonomous regions or municipalities directly under the central government, which
will issue a Pharmaceutical Trade License. The establishment of pharmaceutical retail enterprises must be sanctioned by local authorities
for the supervision and control of pharmaceuticals at or above the county level, which will issue a Pharmaceutical Trade License,
on the basis of which registration at the industry and commerce administrative departments shall be conducted. Without the Pharmaceutical
Trade License, any enterprises shall not engage in the trade of pharmaceuticals.

A Pharmaceutical Trade License shall bear a scope of trade and a period of validity, and upon expiration a new license shall be issued
after examination for its renewal.

The approval of the establishment of pharmaceutical trading enterprises by the pharmaceutical supervisory and administrative departments
shall adhere to the principle of reasonable positioning and convenience for buying of pharmaceuticals, and in addition must conform
to Article 15 of this Law.

Article 15

To establish a pharmaceutical trading enterprise, the following requirements must be met

(1)

1 It shall be staffed with legally certified pharmaceutical technical personnel.

(2)

It shall have business premises, equipment, storage facilities and a sanitary environment suitable for the pharmaceuticals in which
it trades.

(3)

It shall have a quality control organ or personnel suitable for the pharmaceuticals in which it trades.

(4)

It shall have rules and regulations to ensure the quality of the pharmaceuticals in which it trades.

Article 16

Pharmaceutical producing enterprises must trade in pharmaceuticals in accordance with the “Standards for Quality Control of Pharmaceutical
Trading” stipulated by the pharmaceutical supervisory and administrative departments under the State Council on the basis of this
Law. Pharmaceutical supervisory and administrative departments shall certify whether pharmaceutical trading enterprises meet the
requirements of the “Standards for Quality Control of Pharmaceutical Trading” in accordance with relevant regulations, and issue
certifications to qualified enterprises.

Detailed implementation measures and procedures for the “Standards for Quality Control of Pharmaceutical Trading” shall be stipulated
by the pharmaceutical supervisory and administrative departments under the State Council.

Article 17

Pharmaceutical trading enterprises must formulate and implement check and approval rules for the purchase of pharmaceuticals, and
check pharmaceutical certifications and other marks while purchasing pharmaceuticals. Pharmaceuticals that do not meet the required
standards must not be purchased.

Article 18

Pharmaceutical trading enterprises shall keep accurate and complete records of purchased pharmaceuticals. Purchasing records must
bear information on the pharmaceutical product’s generic names, types, specifications, batches, valid periods, producing enterprises,
purchasing (selling) units, purchasing (selling) quantity, purchasing and selling price, purchasing (selling) date and other contents
required by the pharmaceutical supervisory and administrative department under the State Council.

Article 19

It is imperative for pharmaceutical trading enterprises, in the sale of pharmaceuticals, to be accurate and free of mistakes, and
to provide correct directions for use, dosage and precautions. Prescriptions being dispensed must be checked. Pharmaceutical products
listed in the prescription must not be presumptuously changed or substituted. Prescriptions containing incompatible substances or
excessive dosages shall be rejected by the dispensary. If necessary, such prescriptions can be dispensed after they have been corrected
or re-signed by the doctors who wrote them.

When traditional Chinese medicinal materials are offered for sale by pharmaceutical trading enterprises, their origin must be indicated.

Article 20

Rules for storage of pharmaceuticals shall be formulated and implemented by pharmaceutical trading enterprises, which must adopt necessary
measures to facilitate cold storage and protection against freezing, moisture, insects and rodents to ensure pharmaceutical quality.

An inspection system shall be carried out for pharmaceuticals entering or leaving a warehouse

Article 21

Unless otherwise stipulated by the State, traditional Chinese medicinal materials may be marketed at urban or rural fairs.

Pharmaceuticals other than traditional Chinese medicinal materials may not be sold at urban or rural fairs, but those retail enterprises
which have the Pharmaceutical Trade License may set up stalls at urban or rural fairs to sell pharmaceuticals other than traditional
Chinese medicinal materials within prescribed areas. Detailed measures shall be stipulated by the State Council.

Chapter IV Administration of Pharmaceuticals at Medical Organizations

Article 22

Medical organizations must be staffed with legally certified pharmaceutical technical personnel. Non-pharmaceutical technical personnel
may not be directly engaged in the technical work of the pharmacy.

Article 23

To make medicinal preparations, a medical organization must be examined and approved by the administrative departments of health of
the provinces, autonomous regions, or municipalities directly under the central government where the organization is located , and
approved and issued a Dispensing Permit for Medical Organizations by the pharmaceutical supervisory and administrative departments
of the provinces, autonomous regions or municipalities directly under the central government. No medicinal preparations shall be
made without a Dispensing Permit for Medical Organizations.

The Dispensing Permit for Medical Organizations shall bear a period of validity, and upon expiration a new license shall be issued
after examination for its renewal.

Article 24

Medical organizations that make medicinal preparations must have facilities, a managerial system, inspection instruments, and a sanitary
environment to ensure quality.

Article 25

The medicinal preparations made by medical organizations shall be of the kinds that supply the clinical needs of the units themselves
but have not been supplied on the market, and must not be made until the approval of the pharmaceutical supervisory and administrative
departments of the provinces, autonomous regions and municipalities directly under the central government where the units are located.
The quality of the medicinal preparations made by medical organizations must be inspected in accordance with relevant regulations.
Those preparations conforming to standard can be used as the doctor prescribes. Under special circumstances, with approval from the
pharmaceutical supervisory and administrative departments of the central government or of the provinces, autonomous regions and municipalities
directly under the central government, the medicinal preparations made by medical organizations can be shared among appointed medical
organizations.

Medicinal preparations made by medical organizations may not be sold on the market.

Article 26

When purchasing pharmaceuticals, medical organizations must formulate and implement a system of quality inspection and check the certificates
and other marks of pharmaceuticals. Those pharmaceuticals that do not meet the requirements of relevant regulations shall not be
purchased and used.

Article 27

Prescriptions being dispensed by the dispensers of medical organizations must be checked. Pharmaceuticals listed in prescriptions
must not be presumptuously changed or substituted. Prescriptions containing incompatible substances or excessive dosages shall be
rejected by the dispensary. If necessary, such prescriptions can be dispensed after they have been corrected or re-signed by the
doctors who wrote them.

Article 28

Rules for storage of pharmaceuticals shall be formulated and implemented by medical organizations, which must adopt necessary measures
to facilitate cold storage and protection against cold, moisture, insects and rodents to ensure the quality of pharmaceuticals.

Chapter V Pharmaceutical Administration

Article 29

When producing a new medicine, it is necessary to submit information about the methods of production, quality indices, pharmacological
and toxicological testing results, and other related materials and sales as required by the pharmaceutical supervisory and administrative
department of the State Council, only after whose approval can clinical tests be carried out. Certifying measures for clinical test
units shall be jointly formulated by the pharmaceutical supervisory and administrative department under the State Council and the
administrative department of health under the State Council.

A new medicine which has completed its clinical tests and been approved after appraisal shall be issued a certificate of new medicine
by the pharmaceutical supervisory and administrative department under the State Council.

Article 30

The pharmaceutical non-clinical safety appraisal and research units and the clinical test units must respectively carry out the quality
control standard for pharmaceutical non-clinical research and the quality control standard for pharmaceutical clinical test.

The quality control standard for pharmaceutical non-clinical research and the quality control standard for pharmaceutical clinical
test shall be formulated by the department appointed by the State Council.

Article 31

A new medicine or medicine standardized by the State can be put into production only after the pharmaceutical supervisory and administrative
department under the State Council has approved it and issued a registered document of approval. However, this does not apply to
the production of traditional Chinese medicinal herbs and traditional Chinese medicine prepared in ready-to-use forms that are not
controlled under a registered document of approval. For those traditional Chinese medicinal herbs and traditional Chinese medicines
prepared in ready-to-use forms that are controlled with registered document of approval, the pharmaceutical supervisory and administrative
department under the State Council and the administrative department of traditional Chinese medicines under the State Council shall
jointly formulate their type catalogue.

Pharmaceutical producing enterprises can produce medicine only after obtaining the registered document of approval.

Article 32

Pharmaceuticals must meet the pharmaceutical standards of the State. Article 10 (2) of this Law shall be applied to traditional Chinese
medicines prepared in ready-to-use forms.

The “Pharmacopoeia of the People’s Republic of China” and the pharmaceutical standards promulgated by the pharmaceutical supervisory
and administrative department under the State Council shall be the State pharmaceutical standards.

The Pharmacopoeia Committee organized by the pharmaceutical supervisory and administrative department under the State Council shall
be responsible for the formulation and revision of the State pharmaceutical standards. The pharmaceutical inspection institutions
of the pharmaceutical supervisory and administrative department under the State Council shall be responsible for the designation
of State standard and contrastive pharmaceuticals.

Article 33

The pharmaceutical supervisory and administrative department under the State Council may organize pharmaceutical, medicinal and other
technological personnel to carry out examination and evaluation of new medicines, and to reevaluate medicines already placed into
production.

Article 34

Pharmaceutical producing enterprises, pharmaceutical trading enterprises and medical organizations must purchase pharmaceuticals from
the qualified enterprises with the certificates for production and trade of pharmaceuticals. However, this does not apply to the
purchase of the traditional Chinese medicinal herbs which are not controlled under the registered document of approval.

Article 35

For narcotics, psychotropic substances, toxic drugs for medicinal use, and radioactive drugs, the State Council shall formulate administrative
measures to carry out special control.

Article 36

The State Council shall formulate detailed measures to carry out a protection system for the categorization of traditional Chinese
medicines.

Article 37

The State Council shall formulate detailed measures to carry out a classified control system for prescription pharmaceuticals and
non-prescription pharmaceuticals.

Article 38

Import of medicines whose curative effects are uncertain or poor, or which produce adverse reactions or have other harmful effects
on people’s health shall be prohibited.

Article 39

The import of medicines must go through examinations organized by the pharmaceutical supervisory and administrative department under
the State Council. Those confirmed to conform to quality standards to be safe and effective can be approved to be imported and shall
be issued a registered certificate for import.

Medicines to be imported in small quantities for urgent clinical needs by medical organizations or for personal use shall go through
import formalities according to relevant regulations of the State.

Article 40

Pharmaceuticals must be imported through the ports which allow the import of pharmaceuticals, and the pharmaceutical import enterprise
shall submit a report to the pharmaceutical supervisory and administrative department of the place where the port is located. Customs
shall rely on the Import Pharmaceuticals Customs Form issued by the pharmaceutical supervisory and administrative department to proceed.
Those without the Import Pharmaceuticals Customs Form shall not be permitted to pass through customs.

The pharmaceutical supervisory and administrative department of the place where the port is located shall notify the pharmaceutical
inspection institution to carry out selective examinations and inspections on the imported pharmaceuticals according to the regulations
stipulated by the pharmaceutical supervisory and administrative department under the State Council, and to collect inspection fees
according to Article 41 (2) of this Law.

The nomination of the ports allowable for import of pharmaceuticals shall be jointly conducted by the pharmaceutical supervisory and
administrative department under the State Council and the Customs Headquarters, and be reported to the State Council for approval.

Article 41

The pharmaceutical supervisory and administrative department under the State Council shall appoint inspection institutions to carry
out inspections before the sale and import of the following pharmaceuticals. Those having not passed the inspection shall not be
allowed to be sold or imported.

(1)

Bio-products prescribed by the pharmaceutical supervisory and administrative department of the State Council.

(2)

Pharmaceuticals to be sold for the first time in China.

(3)

Other pharmaceuticals prescribed by the State Council.

The inspection fee and charge standards for the above-mentioned pharmaceuticals shall be jointly checked, ratified and promulgated
by the financial department under the State Council and the competent authority of price control under the State Council. The measures
for the collection of inspection fees shall be jointly formulated by the financial department under the State Council and the pharmaceutical
supervisory and administrative department under the State Council.

Article 42

The pharmaceutical supervisory and administrative department under the State Council shall organize investigations on medicines which
have been approved for production or import. It shall revoke the registered documents of approval or the registered certificate of
import if it discovers that the curative effects of the medicines are uncertain or poor, that they produce serious adverse reactions,
or that for other reasons they are harmful to people’s health.

The medicines whose registered documents of approval or registered certificate of import have been revoked shall not be allowed to
be produced, imported, sold or used. Those which have already been produced or imported shall be destroyed or disposed of under the
supervision of the local pharmaceutical supervisory and administrative departments.

Article 43

A pharmaceutical reserve system shall be carried out by the State.

In case of serious disasters, plagues and other sudden emergencies, the department prescribed by the State Council can requisite the
pharmaceuticals of enterprises to deal with such emergencies.

Article 44

The State Council shall have the power to restrict or prohibit the export of the pharmaceuticals which are in short supply in the
domestic market.

Article 45

Import or export licenses issued by the pharmaceutical supervisory and administrative department under the State Council are required
for the import or export of narcotics and psychotropic substances falling within the restricted scope prescribed by the State.

Article 46

Newly discovered domestic medicinal plants or medicinal plants introduced from abroad may be sold only after they have been examined
and approved by the pharmaceutical supervisory and administrative department under the State Council.

Article 47

Measures for controlling medicinal materials traditionally used by local people in certain regions shall be jointly formulated by
the pharmaceutical supervisory and administrative department under the State Council and the administrative department of traditional
Chinese medicines under the State Council.

Article 48

The production (including preparation, which also applies to the following) and sale of fake medicines are prohibited. A fake medicine
has any one of the following characteristics:

(1)

Its components are different from those prescribed by state pharmaceutical standards.

(2)

A non-medical substance is passed off as a medicine, or one medicine is passed off as another.

A medicine shall be handled as fake medicine in any of the following cases:

(1)

Where the use of the medicine has been prohibited by the pharmaceutical supervisory and administrative department under the State
Council;

(2)

Where the medicine is produced and imported without an approval dictated according to this Law, or the medicine is sold without being
inspected as dictated according to this Law;

(3)

Where the medicine has deteriorated; or

(4)

Where the medicine has been contaminated;

(5)

Where the medicine has been produced with pharmaceutical materials without obtaining the dictated registration document of approval
for the materials.

(6)

Where the indications or the functions marked on the labels of the pharmaceuticals do not fall within the prescribed scope.

Article 49

It is prohibited to produce and sell medicines of inferior quality, referring to the medicines whose components do not conform in
quantity to that required by State pharmaceutical standards. A medicine shall be handled as medicine of inferior quality in any of
the following cases:

(1)

An expiry date is not indicated or is altered; or

(2)

A registration number is not indicated or is altered; or

(3)

The medicine has passed its expiration date; or

(4)

The packages and containers which have direct contact with pharmaceuticals have not obtained approval; or

(5)

The medicine has been added presumptuously with color or preservative additives, spice, disguising odor or supplementary materials;
or

(6)

The medicine fails to meet the prescribed standards in other respects.

Article 50

The names of the pharmaceuticals listed in the State pharmaceutical standards are the generic names of the pharmaceuticals. Those
names that have become the generic names of pharmaceuticals shall not be used as trademarks of pharmaceuticals.

Article 51

Personnel in pharmaceutical producing or trading enterprises and in medical organizations who have direct contact with medicines must
undergo an annual medical examination. Persons who have contracted contagious diseases or any other disease which may contaminate
the medicine shall not be allowed to engage in any work which has direct contact with pharmaceuticals.

Chapter VI Administration on Pharmaceutical Packaging

Article 52

The pharmaceutical packaging materials and containers which have direct contact with pharmaceuticals must meet the requirements of
medicinal use, conform with the standards of protecting people’s health and safety, and obtain the approval of the pharmaceutical
supervisory and administrative departments at the same time as the approval of the pharmaceutical product.

Pharmaceutical producing enterprises shall use the packaging materials and containers which have direct contact with the pharmaceuticals
only after they have obtained approval for them.

The pharmaceutical supervisory and administrative departments shall stop the use of those unqualified packaging materials and containers
which have direct contact with the pharmaceuticals.

Article 53

Packaging must meet the specific quality requirements of the pharmaceuticals and facilitate their storage, transportation and medical
use.

Traditional Chinese medicinal materials must be packaged before transportation. There must appear on the package the name of the medicine,
place of production, date, name of the consignor, and an indication showing that the quality of the medicine meets standards.

Article 54

Packages of pharmaceuticals must be labeled and include directions for use in accordance with the regulations.

The label or directions must indicate the generic name of the medicine, components, specifications, the producer, registration number,
batch number of the product, production date, expiry date, indications or major functions, directions for use, dosage, restrictions,
adverse reactions and precautions.

Special indications must be printed as required on the labels of narcotics, psychotropic substances, toxic drugs for medical use,
radioactive drugs, medicines for external use and non-prescriptive pharmaceuticals.

Chapter VII Administration of the Prices and Advertising of Pharmaceuticals

Article 55

For pharmaceuticals controlled by the fixed and directive pricing system of the government, the competent authority of pricing of
the government shall fix and adjust the price with reason in conformity with the principles for fixing prices as prescribed by the
Price Law of the PRC and according to the considerations of societal average costs, market supply and demand, and the level of societal
tolerance to achieve acco

REGIONAL NATIONAL AUTONOMY LAW

Law of the People’s Republic of China on Regional National Autonomy










(Adopted at the Second Session of the Sixth National People’s Congress on May 31, 1984 and promulgated by Order No.13
of the President of the People’s Republic of China on May 31, 1984; amended in accordance with the Decision on the Amending the Law
of the People’s Republic of China on Regional National Autonomy made at the 20th Meeting of the Standing Committee of the Ninth National
People’s Congress on February 28, 2001) 

 

Contents 

Preface 

Chapter I   General Provisions 

Chapter II  Establishment of National Autonomous Areas and the Structure of the Organs of Self-Government 

Chapter III The Power of Autonomy of the Organs of Self-Government 

Chapter IV  The People’s Courts and People’s Procuratorates of National Autonomous Areas 

Chapter V   Relations Among Nationalities Within a National Autonomous Area 

Chapter VI  Responsibilities of State Organs at Higher Levels 

Chapter VII Supplementary Provisions 

 

Preface 

The People’s Republic of China is a unitary multinational State created jointly by the people of all its nationalities.  Regional
national autonomy is the basic policy adopted by the Communist Party of China for the solution of the national question in China
through its application of Marxism-Leninism; it is a basic political system of the State. 

Regional national autonomy means that the minority nationalities, under unified State leadership, practise regional autonomy in areas
where they live in concentrated communities and set up organs of self-government for the exercise of the power of autonomy. 
Regional national autonomy embodies the State’s full respect for and guarantee of the right of the minority nationalities to administer
their internal affairs and its adherence to the principle of equality, unity and common prosperity for all the nationalities. 

Regional national autonomy has played an enormous role in giving full play to the initiative of all the nationalities as masters
of the country, in developing among them a socialist relationship of equality, unity and mutual assistance, in consolidating the
unification of the country and in promoting socialist construction in the national autonomous areas and the rest of the country. 
In the years to come, continued efforts shall be made to uphold and improve the system of regional national autonomy, so that it
will play a greater role in the country’s socialist modernization drive. 

It has been proven by practice that adherence to regional national autonomy requires that the national autonomous areas be given
effective guarantees for implementing State laws and policies in the light of existing local conditions; that large numbers of cadres
at various levels and specialized personnel and skilled workers of various professions and trades be trained from among the minority
nationalities; that the national autonomous areas strive to promote local socialist construction in the spirit of self-reliance and
hard work and contribute to the nation’s construction as a whole; and that the State strive to help the national autonomous areas
speed up their economic and cultural development in accordance with the plans for national economic and social development. 
In the effort to maintain the unity of the nationalities, both big-nation chauvinism, mainly Han chauvinism, and local national chauvinism
must be opposed. 

Under the leadership of the Communist Party of China and the guidance of Marxism-Leninism, Mao Zedong Thought and Deng Xiaoping Theory,
the people of various nationalities in the autonomous areas shall, together with the people of the whole country, adhere to the people’s
democratic dictatorship and to the policy of reform and opening to the outside world, march along the road of constructing socialism
with Chinese characteristics, concentrate their efforts on the socialist modernization drive, develop the socialist market economy,
foster the development of socialist democracy and the socialist legal system, enhance socialist cultural and ideological progress,
speed up the economic and cultural development of the national autonomous areas, work towards their unity and prosperity and strive
for the common prosperity of all the nationalities and for the transformation of China into a prosperous, powerful, democratic and
culturally advanced socialist country. 

The “Law of the People’s Republic of China on Regional National Autonomy” is the basic law for the implementation of the system of
regional national autonomy prescribed in the Constitution. 

 

Chapter I 

General Provisions 

Article 1  The Law of the People’s Republic of China on Regional National Autonomy is formulated in accordance with the Constitution
of the People’s Republic of China. 

Article 2 -Regional autonomy shall be practiced in areas where minority nationalities live in concentrated communities. 

National autonomous areas shall be classified into autonomous regions, autonomous prefectures and autonomous counties. 

All national autonomous areas are integral parts of the People’s Republic of China. 

Article 3 Organs of self-government shall be established in national autonomous areas as local organs of the State power at a particular
level. 

The organs of self-government of national autonomous areas shall apply the principle of democratic centralism. 

Article 4 The organs of self-government of national autonomous areas shall exercise the functions and powers of local organs of the
State as specified in Section 5 of Chapter III of the Constitution.  At the same time, they shall exercise the power of autonomy
within the limits of their authority as prescribed by the Constitution, by this Law and other laws, and implement the laws and policies
of the State in the light of existing local conditions. 

The organs of self-government of autonomous prefectures shall exercise the functions and powers of local State organs over cities
divided into districts and cities with counties under their jurisdiction and, at the same time, exercise the power of autonomy. 

Article 5 The organs of self-government of national autonomous areas must uphold the unity of the country and guarantee that the
Constitution and other laws are observed and implemented in these areas. 

Article 6 The organs of self-government of national autonomous areas shall lead the people of the various nationalities in a concentrated
effort to promote socialist modernization. 

On the principle of not contravening the Constitution and the laws, the organs of self-government of national autonomous areas shall
have the power to adopt special policies and flexible measures in the light of local conditions to speed up the economic and cultural
development of these areas. 

Under the guidance of State plans and on the basis of actual conditions, the organs of self-government of national autonomous areas
shall steadily increase labor productivity and economic results, develop social productive forces and gradually raise the material
living standards of the people of the various nationalities. 

The organs of self-government of national autonomous areas shall inherit and carry forward the fine traditions of national cultures,
build a socialist society with an advanced culture and ideology and with national characteristics, and steadily raise the socialist
consciousness and scientific and cultural levels of the people of the various nationalities. 

Article 7 The organs of self-government of national autonomous areas shall place the interests of the State as a whole above anything
else and make positive efforts to fulfill the tasks assigned by State organs at higher levels. 

Article 8 State organs at higher levels shall guarantee the exercise of the power of autonomy by the organs of self-government of
national autonomous areas and shall, in accordance with the characteristics and needs of these areas, strive to help them speed up
their socialist construction. 

Article 9 State organs at higher levels and the organs of self-government of national autonomous areas shall uphold and develop the
socialist relationship of equality, unity and mutual assistance among all of China’s nationalities.  Discrimination against
and oppression of any nationality shall be prohibited; any act that undermines the unity of the nationalities or instigates national
division shall also be prohibited. 

Article 10 The organs of self-government of national autonomous areas shall guarantee the freedom of the nationalities in these areas
to use and develop their own spoken and written languages and their freedom to preserve or reform their own folkways and customs. 

Article 11 The organs of self-government of national autonomous areas shall guarantee the freedom of religious belief to citizens
of the various nationalities. 

No State organ, public organization or individual may compel citizens to believe in, or not to believe in, any religion, nor may
they discriminate against citizens who believe in, or do not believe in, any religion. 

The State shall protect normal religious activities. 

No one may make use of religion to engage in activities that disrupt public order, impair the health of citizens or interfere with
the educational system of the State. 

Religious bodies and religious affairs shall not be subject to any foreign domination. 

Chapter II 

Establishment of National Autonomous Areas 

and the Structure of the Organs of Self-government 

Article 12 Autonomous areas may be established where one or more minority nationalities live in concentrated communities, in the
light of local conditions such as the relationship among the various nationalities and the level of economic development, and with
due consideration for historical background. 

Within a national autonomous area, appropriate autonomous areas or nationality townships may be established where other minority
nationalities live in concentrated communities. 

Some residential areas and towns of the Han nationality or other nationalities may be included in a national autonomous area in consideration
of actual local conditions. 

Article 13 With the exception of special cases, the name of a national autonomous area shall be composed of the name of the locality
and the name of the nationality and the administrative status, in that order. 

Article 14 The establishment of a national autonomous area, the delineation of its boundaries and the elements of its name shall
be proposed by the State organ at the nest higher level jointly with the State organ in the relevant locality, after full consultation
with representatives of the relevant nationalities, before they are submitted for approval according to the procedures prescribed
by law. 

Once established, no national autonomous area may, without legal procedures, be abolished or merged. Once defined, no boundaries
of a national autonomous area may, without legal procedures, be altered. Where abolition or merger or alteration is really required,
it shall be proposed by the relevant department of the State organ at the next higher level after full consultation with the organ
of self-government of the national autonomous area before it is submitted for approval according to legal procedures. 

Article 15 The organs of self-government of national autonomous areas shall be the people’s congresses and people’s governments of
autonomous regions, autonomous prefectures and autonomous counties. 

The people’s governments of national autonomous areas shall be responsible to and report on their work to the people’s congresses
at corresponding levels and to the administrative organs of the State at the next higher level.  When the people’s congresses
at corresponding levels are not in session, they shall be responsible to and report on their work to the standing committees of these
people’s congresses.  The people’s governments of all national autonomous areas shall be administrative organs of the State
under the unified leadership of the State Council and shall be subordinate to it. 

The organization and work of the organs of self-government of national autonomous areas shall be specified in these areas’ regulations
on the exercise of autonomy or separate regulations, in accordance with the Constitution and other laws. 

Article 16 In the people’s congress of a national autonomous area, in addition to the deputies from the nationality exercising regional
autonomy in the administrative area, the other nationalities inhabiting the area are also enpost_titled to appropriate representation. 

The number and proportion of deputies to the people’s congress of a national autonomous area from the nationality exercising regional
autonomy and from the other minority nationalities shall be decided upon by the standing committee of the people’s congress of a
province, an autonomous region or a municipality directly under the Central Government, in accordance with the principles prescribed
by law, and shall be reported to the Standing Committee of the National People’s Congress for the record. 

Among the chairman and vice-chairmen of the standing committee of the people’s congress of a national autonomous area shall be one
or more citizens of the nationality exercising regional autonomy in the area. 

Article 17 The chairman of an autonomous region, the prefect of an autonomous prefecture or the head of an autonomous county shall
be a citizen of the nationality exercising regional autonomy in the area concerned.  Other posts in the people’s government
of an autonomous region, an autonomous prefecture or an autonomous county shall rationally be assumed by people of the nationality
exercising regional autonomy and of other minority nationalities in the area concerned. 

The people’s governments of national autonomous areas shall apply the system of giving overall responsibility to the chairman of
an autonomous region, the prefect of an autonomous prefecture or the head of an autonomous county, who shall direct the work of the
people’s governments at their respective levels. 

Article 18 The cadres in the departments under the organs of self-government of a national autonomous area shall rationally be chosen
from among citizens of the nationality exercising regional autonomy and of the other minority nationalities in the area. 

Chapter III 

The Power of Autonomy of 

the Organs of Self-Government 

Article 19  The people’s congresses of national autonomous areas shall have the power to enact regulations on the exercise of
autonomy and separate regulations in the light of the political, economic and cultural characteristics of the nationality or nationalities
in the areas concerned.  The regulations on the exercise of autonomy and separate regulations of autonomous regions shall be
submitted to the Standing Committee of the National People’s Congress for approval before they go into effect.  The regulations
on the exercise of autonomy and separate regulations of autonomous prefectures and autonomous counties shall be submitted to the
standing committees of the people’s congresses of provinces, autonomous regions or municipalities directly under the Central Government
for approval before they go into effect, and they shall be reported to the Standing Committee of the National People’s Congress and
the State Council for the record. 

Article 20 If a resolution, decision, order or instruction of a State organ at a higher level does not suit the conditions in a national
autonomous area, the organ of self-government of the area may either implement it with certain alterations or cease implementing
it after reporting to and receiving the approval of the State organ at a higher level; the said State organ shall give a reply within
60 days from the date of receipt of the report. 

Article 21 While performing its functions, the organs of self-government of a national autonomous area shall, in accordance with
the regulations on the exercise of autonomy of the area, use one or several languages commonly used in the locality; where several
commonly used languages are used for the performance of such functions, the language of the nationality exercising regional autonomy
may be used as the main language. 

Article 22 In accordance with the needs of socialist construction, the organs of self-government of national autonomous areas shall
take various measures to train large numbers of cadres at different levels and various kinds of specialized personnel, including
scientists, technicians and managerial executives, as well as skilled workers from among the local nationalities, giving full play
to their roles, and shall pay attention to the training of cadres at various levels and specialized and technical personnel of various
kinds from among the women of minority nationalities. 

When recruiting working staff, the organ of self-government of a national autonomous area shall give appropriate considerations to
people of the nationality exercising regional autonomy and of other minority nationalities in the area. 

The organs of self-government of national autonomous areas may adopt special measures to provide preferential treatment and encouragement
to specialized personnel joining in the various kinds of construction in these areas. 

Article 23 When recruiting personnel in accordance with State regulations, enterprises and institutions in national autonomous areas
shall give priority to minority nationalities and may enlist them from the population of minority nationalities in rural and pastoral
areas. 

Article 24 The organs of self-government of national autonomous areas may, in accordance with the military system of the State and
practical local need and with the approval of the State Council, organized local public security forces for the maintenance of public
order. 

Article 25 Under the guidance of State plans, the organs of self-government of national autonomous areas shall, in the light of local
characteristics and needs, work out the guidelines, policies and plans for economic development and independently arrange for and
administer local economic development.  

Article 26 Given the prerequisite of adherence to the principles of socialism, the organs of self-government of national autonomous
areas shall, in accordance with legal stipulations and in the light of the characteristics of local economic development, rationally
readjust the relations of production and the economic structure, and work hard to develop the socialist market economy.” 

The organs of self-government of national autonomous areas shall uphold the basic economic system, under which public ownership is
the mainstay and the economic sectors under different types of ownership develop together, and encourage the development of the economic
sectors under non-public ownership.  

Article 27 In accordance with legal stipulations, the organs of self-government of national autonomous areas shall define the ownership
of, and the right to use, the pastures and forests within these areas. 

The organs of self-government of national autonomous areas shall protect and develop grasslands and forests and make arrangements
for and encourage the planting of trees and grass.  Destruction of grasslands and forests by any organization or individual
by whatever means shall be prohibited.   Reclamation of land from grasslands or forests by destroying grass or trees shall
strictly be prohibited. 

Article 28 In accordance with legal stipulation, the organs of self-government of national autonomous areas shall manage and protect
the natural resources of these areas. 

In accordance with legal stipulations and unified State plans, the organs of self-government of national autonomous areas may give
priority to the rational exploitation and utilization of the natural resources that the local authorities are enpost_titled to develop. 

Article 29 Under the guidance of State plans, the organs of self-government of national autonomous areas shall independently arrange
local capital construction projects according to their financial and material resources and other specific local conditions. 

Article 30 The organs of self-government of national autonomous areas shall independently administer the enterprises and institutions
under local jurisdiction. 

Article 31 In accordance with State provisions, the organs of self-government of national autonomous areas may pursue foreign economic
and trade activities and may, with the approval of the State Council, open foreign trade ports. 

National autonomous areas adjoining foreign countries may develop border trade with the approval of the State Council. 

While conducting economic and trade activities with foreign countries, the national autonomous areas shall enjoy preferential treatment
by the State. 

Article 32 The finance of a national autonomous area constitutes a particular level of finance and is a component of State finance. 

The organs of self-government of national autonomous areas shall have the power of autonomy in administering the finances of their
areas.  All revenues accruing to the national autonomous areas under the financial system of the State shall be managed and
used by the organs of self-government of these areas on their own. 

Under the unified national financial system, a national autonomous area shall enjoy preferential treatment by the financial department
at a higher level through the standard financial transfer payment system exercised by the State. 

A national autonomous area shall, in accordance with State stipulations, lay aside a reserve fund for expenditure in its budget. 
The proportion of the reserve fund in its budget shall be higher than that in the budgets of other areas. 

While implementing its fiscal budget, the organ of self-government of a national autonomous area shall arrange for the use of extra
income and savings from expenditures at its own discretion. 

Article 33 In accordance with the principles set by the State and in the light of local conditions, the organs of self-government
of national autonomous areas may work out supplementary provisions and concrete procedures with regard to the standards of expenditure,
the sizes of the staff and the quotas of work for their respective areas.  The supplementary provisions and concrete procedures
worked out by autonomous regions shall be reported to the State Council for the record; those worked out by autonomous prefectures
and autonomous counties shall be reported to the people’s governments of the relevant provinces, autonomous regions or municipalities
directly under the Central Government for approval. 

Article 34 While implementing the tax laws of the State, the organs of self-government of national autonomous areas may grant tax
exemptions or reductions for certain items of local financial income which should be encouraged or given preferential consideration
in taxation, in addition to items on which tax reduction or exemption requires unified examination and approval by the State. 
The decisions of autonomous prefectures and autonomous counties on tax reduction and exemption shall be reported to the people’s
governments of the relevant provinces, autonomous regions or municipalities directly under the Central Government for approval. 

Article 35 A national autonomous area may, in the light of the needs of the local economic and social development and in accordance
with the stipulations of laws, set up local commercial banks and urban and rural credit cooperative organizations. 

Article 36 In accordance with the guidelines of the State on education and with the relevant stipulations of the law, the organs
of self-government of national autonomous areas shall decide on plans for the development of education in these areas, on the establishment
of various kinds of schools at different levels, and on their educational system, forms, curricula, the language used in instruction
and enrollment procedures.  

Article 37 The organs of self-government of national autonomous areas shall independently develop education for the nationalities
by eliminating illiteracy, setting up various kinds of schools, spreading nine-year compulsory education, developing regular senior
secondary education and secondary vocational and technical education in various forms, and developing higher education, where possible
and necessary, so as to train specialized people from among all the minority nationalities.   

The organs of self-government of national autonomous areas shall set up public primary schools and secondary schools, mainly boarding
schools and schools providing subsidies, in pastoral areas and economically underdeveloped, sparsely populated mountain areas inhabited
by minority nationalities, so as to ensure that the students at school accomplish their schooling at the compulsory education stage.
The expenses for running schools and for subsidies shall be handled by the local governments. If it is difficult for the local governments
to do so, the governments at a higher level shall give them allowances.  

Schools (classes and grades) and other institutions of education where most of the students come from minority nationalities shall,
whenever possible, use textbooks in their own languages and use their languages as the media of instruction.  Classes for the
teaching of Chinese (the Han language) shall, where possible, be opened for junior or senior grades of primary schools to popularize
putonghua (the common speech based on Beijing pronunciation) and standard Chinese characters.  

People’s governments at various levels shall give financial support to the compilation translation and publishing of teaching materials
and publications in languages of minority nationalities.   

Article 38 The organs of self-government of national autonomous areas shall independently develop literature, art, the press, publishing,
radio broadcasting, the film industry, television and other cultural undertakings in forms and with characteristics unique to the
nationalities, and increase their input in cultural undertakings, provide improved cultural facilities and speed up the development
of various cultural undertakings. 

The organs of self-government of national autonomous areas shall make arrangements for the units or departments concerned and support
them in their efforts to collect, sort out, translate and publish historical and cultural books of minority nationalities and protect
the scenic spots and historical sites in their areas, their precious cultural relics and their other important historical and cultural
legacies, so as to inherit and develop their outstanding traditional culture. 

Article 39 The organs of self-government on national autonomous areas shall make independent decisions on local plans for developing
science and technology and spreading knowledge of science and technology. 

Article 40 The organs of self-government of national autonomous areas shall make independent decisions on plans for developing local
medical and health services and for advancing both modern medicine and the traditional medicine of the nationalities. 

The organs of self-government of national autonomous areas shall see to a more effective prevention and control of contagious and
endemic diseases, provide better protection for the health of women and children, and improve medical and sanitary conditions. 

Article 41 The organs of self-government of national autonomous areas shall independently develop sports, promote the traditional
sports of the nationalities and improve the physical fitness of the people of the various nationalities. 

Article 42 The organs of self-government of the national autonomous areas shall strive to develop exchanges and cooperation with
other areas in education, science and technology, culture and art, public health, sports, etc. 

In accordance with relevant State provisions, the organs of self-government of national autonomous regions and autonomous prefectures
may conduct exchanges with foreign countries in education, science and technology, culture and art, public health, sports, etc. 

Article 43 In accordance with legal stipulations, the organs of self-government of national autonomous areas shall work out measures
for control of the transient population. 

Article 44 The policy of family planning and good prenatal and postnatal care shall be carried out in national autonomous areas in
order to enhance the population quality of all the nationalities. 

In accordance with legal stipulations, the organs of self-government of national autonomous areas shall, in the light of local conditions,
work out measures for family planning. 

Article 45 The organs of self-government of national autonomous areas shall protect and improve the living environment and the ecological
environment and shall prevent and control pollution and other public hazards, so as to bring about the coordinated development of
population, resources and environment. 

Chapter IV 

The People’s Courts and People’s Procuratorates 

of National Autonomous Areas 

Article 46 The People’s Courts and People’s Procuratorates of national autonomous areas shall be responsible to the people’s congresses
at corresponding levels and their standing committees.  The People’s Procuratorates of national autonomous areas shall also
be responsible to the People’s Procuratorates at higher levels. 

The administration of justice by the People’s Courts of national autonomous areas shall be supervised by the Supreme People’s Court
and by People’s Courts at higher levels.  The work of the People’s Procuratorates of national autonomous areas shall be directed
by the Supreme People’s Procuratorate and by the People’s Procuratorates at higher levels. 

Members of the leadership and of the staff of the People’s Court and of the People’s Procuratorate of a national autonomous area
shall include people from the nationality exercising regional autonomy in that area. 

Article 47 In the prosecution and trial of cases, the People’s Courts and People’s Procuratorates in national auto

CIRCULAR OF CHINA SECURITIES REGULATORY COMMISSION AND THE MINISTRY OF FINANCE ON ISSUING “MEASURES FOR ADOPTING THE SYSTEM OF TEMPORARY LICENSE TO FOREIGN ACCOUNTING FIRMS FOR ENGAGING IN BUSINESS OF AUDITING FOR FINANCIAL LISTED COMPANIES”

The China Securities Regulatory Commission, the Ministry of Finance

Circular of China Securities Regulatory Commission and the Ministry of Finance on Issuing “Measures for Adopting the System of Temporary
License to Foreign Accounting Firms for Engaging in Business of Auditing for Financial Listed Companies”

January 12, 2001

Every relevant accounting firms:

With a view to fully learning from international standards, making more fair and reliable the auditing results of listed companies
of banking, securities and insurance industries, ensuring the quality of information disclosure, protecting the legitimate rights
and interests of investors, and procuring an adequate and reliable basis for supervision of companies of this kind after listed,
“Measures for Adopting the System of Temporary License to Foreign Accounting Firms for Engaging in Business of Auditing for Financial
Listed Companies” formulated jointly by China Securities Regulatory Commission and the Ministry of Finance is hereby issued for your
implementation.

Attachment:Measures for Adopting the System of Temporary License to Foreign Accounting Firms for Engaging in Business of Auditing for Financial
Listed Companies

Article 1

With a view to fully learning from international standards, making more fair and reliable the auditing results of listed companies
of banking, securities and insurance industries, ensuring the quality of information disclosure, protecting the legitimate rights
and interests of investors and procuring an adequate and reliable basis for supervision of companies of this kind after listed, these
Measures have been formulated in accordance with “Securities Law”, “Registered Accountant Law of People’s Republic of China” and
No.1,3 and 5 of “Rules for Information Compilation and Disclosure by Companies Publicly Issuing Securities” by China Securities Regulatory
Commission (hereinafter referred to as CSRC).

Article 2

Listed companies of banking, securities and insurance industries shall retain simultaneously one domestic and another foreign accounting
firms to separately render service of accounting statement auditing. CSRC and the Ministry of Finance shall adopt the system of temporary
license to accounting firms registered outside china (hereinafter referred to as foreign accounting firms) for engaging in business
of auditing for listed companies of banking, securities and insurance industries. To apply for temporary license, a foreign accounting
firm shall submit their application to CSRC and the Ministry of Finance, and may perform business only upon approval by the two said
departments.

Article 3

The temporary license for business relating to banking, securities and insurance companies shall be valid for one year.

Article 4

Before arranging business with their clients, foreign accounting firms shall submit relevant documents to CSRC and the Ministry of
Finance, which shall issue a temporary license to those who are considered qualified after being examined. Those who are not considered
qualified after being examined shall be ordered to cease their business arrangement by being given a notice.

Article 5

Foreign accounting firms applying for temporary license for business relating to banking, securities and insurance companies shall
meet the following requirements:

(1)

having auditing experience in relevant industries (from outside China);

(2)

being an international accounting firm;

(3)

being familiar with relevant industries in China.

Article 6

Foreign accounting firms applying for temporary license shall submit the following documents:

(1)

a written application for temporary license for business relating to banking, securities and insurance companies;

(2)

specifications of relevant business;

(3)

basic situation of the firm outside China;

(4)

resumes of partner(s) and senior manager(s) relating to business to be performed in China.

(5)

other documents required by CSRC and the Ministry of Finance. All documents above shall be in Chinese.

Article 7

CSRC and the Ministry of Finance may make spot-checks on the quality of service performed in China by foreign accounting firms applying
temporary license. Those whose business performance fails to meet the quality requirements by CSRC shall cease their business, and
no application from them for temporary license is to be accepted.

Article 8

Where any foreign accounting firm performs business relating to listed companies of banking, securities or insurance industry without
temporary license, CSRC and the Ministry of Finance shall order them to cease their business, confiscate their earnings and shall
not accept their application for temporary license.

Article 9

Where any foreign accounting firm obtains temporary license by fraud or other illicit means, the temporary license shall be revoked,
illegal earnings be confiscated and business be stopped with no application from them for temporary license being accepted and all
those above being announced.

Article 10

Foreign accounting firms who violate Chinese Law in performing business relating to listed companies of banking, security or insurance
industry shall be investigated for their responsibilities according to Chinese law.

Article 11

CSRC and the Ministry of Finance shall be responsible for the interpretation of these Measures.

Article 12

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

 
The China Securities Regulatory Commission, the Ministry of Finance
2001-01-12

 




CIRCULAR OF THE MINISTRY OF FINANCE ON CONTINUOUS IMPLEMENTATION OF LICENCE MANAGEMENT FOR THE ASSETS APPRAISAL INSTITUTION WITH THE UNDERTAKING OF SECURITIES

The Ministry of Finance

Circular of the Ministry of Finance on Continuous Implementation of Licence Management for the Assets Appraisal Institution with the
Undertaking of Securities

CaiKuai [2001] No.1001

January 15, 2001

The finance departments (bureaus), the bureaus (offices) of state-owned assets, the institutes of certified public accountants, the
associations of assets appraisal and relevant assets assessment institutions of various provinces, autonomous regions and municipalities
directly under the Central Government:

In order to strengthen the management of the assets assessment of securities, the Ministry of Finance and the China Securities Regulatory
Commission continue to implement the licence management for the assets appraisal institutions with the undertaking of securities.

Consulting with the Securities Supervision Association of China, the licences that have been granted assets assessment institutions
with the undertaking of securities are valid until the measures on the new licenses come out and take into effect. In view of the
dramatic change resulting from breaking off relations and reform of system in the assets appraisal institutions, after receiving
this circular, the assets appraisal institutions with the undertaking of securities should fill in the list of the basic information
of securities appraisal institutions, the list of certified assets assessors and the list of assessment business of securities with
two copies of each, which should be submitted to the Accountant Department of China Securities Regulatory Commission and the Chinese
Institute of Certified Public Accountants before February 28.

Attachments:

1.the list of the basic information of securities appraisal institutions (omitted)

2.the list of certified assets assessors (omitted)

3.the list of assessment business of securities (omitted)

 
The Ministry of Finance
2001-01-15

 




ANNOUNCEMENT OF THE STATE ADMINISTRATION FOR ENTRY-EXIT INSPECTION AND QUARANTINE AND THE GENERAL ADMINISTRATION OF CUSTOMS ON ADJUSTING THE CATALOGUE OF ENTRY-EXIT COMMODITIES INSPECTED AND QUARANTINED BY THE COMPETENT ENTRY-EXIT INSPECTION AND QUARANTINE AUTHORITY IN 2001

The State Administration for Entry-exit Inspection and Quarantine, the General Administration of Customs

Announcement of the State Administration for Entry-exit Inspection and Quarantine and the General Administration of Customs on Adjusting
the Catalogue of Entry-exit Commodities Inspected and Quarantined by the Competent Entry-exit Inspection and Quarantine Authority
in 2001

[2001] No.1

January 18,2001

Based on the tariff items of the Tariff Nomenclature adjusted by the Tariff Commission of the State Council and the adjusted customs
import and export tariff schedule, the State Administration for Entry-exit Inspection and Quarantine and the General Administration
of Customs jointly make corresponding adjustments to the Catalogue of Entry-exit Commodities Inspected and Quarantined by the Competent
Entry-exit Inspection and Quarantine Authority (Decree of the State Administration for Entry-exit Inspection and Quarantine and the
General Administration of Customs [2000] No.1 ). The adjustments are hereby publicized as follows, which enter into force as of March
1, 2001.

Attachment I: The New Adjusted Catalogue of the Commodities for Entry-exit Inspection and Quarantine (omitted)

Attachment II: The Nullified Commodity Code after the Adjustment (omitted)

 
The State Administration for Entry-exit Inspection and Quarantine, the General Administration of Customs
2001-01-18

 




CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION FOR ISSUING THE INTERIM MEASURES FOR THE ADMINISTRATION OF PROCESSING TRADE IN EXPORT PROCESSING ZONES

20060101

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation for Issuing the Interim Measures for the Administration of Processing
Trade in Export Processing Zones

WaiJingMaoGuanFa [2001] No.141

March 21,2001

The committees (Offices, Bureaus) of Foreign Trade and Economic Cooperation of all Provinces, Autonomous Regions, Municipalities directly
under the Central Government and municipalities separately listed on the State plan, All Commissioner’s Offices and Bureaus of Quota
License Affairs:

For the purpose of making experiments with export processing zones, implementing the Reply of the General Office of the State Council
on Conducting Experiments with Export Processing Zones and the Reply of the State Council Concerning the Interim Measures of the
General Administration of Customs of the People’s Republic of China for the Control of Export Processing Zones (respectively GuoBanHan
[2000] No. 37 and GuoHan [2000] No.38), and with the consent of the General Administration of Customs, the Interim Measures for
the Administration of Processing Trade in Export Processing Zones is formulated and is hereby issued to you for your implementation.
If any problems arise in the implementation, please report to the Ministry of Foreign Trade and Economic Cooperation (Trade Administration
Department).

There is hereby the notification. Attachment: Interim Measures for the Administration of Processing Trade in Export Processing Zones

Chapter I General Provisions

Article 1

These Measures are formulated in accordance with the Reply of the General Office of the State Council on Conducting Experiments with
Export Processing Zones and the Reply of the State Council Concerning the Interim Measures of the General Administration of Customs
of the People’s Republic of China for the Control of Export Processing Zones, with a view to conducting administration of export
processing zones and promoting the sound and stable development of processing trade.

Article 2

“Processing trade” referred to in these Measures means that an enterprise in the export processing zone imports from abroad or purchases
in domestic market raw and processed materials, parts, components and packing materials, etc, processes and assembles them and then
exports the finished goods, including processing materials supplied by clients and processing imported materials.

Article 3

All enterprises in the export processing zone must, in accordance with the relevant existing legal provisions of the state, be registered
and established according to law. They must obtain corporate capacity. The enterprises with foreign investment must go through formalities
according to the existing regulations on the administration of foreign investment.

Article 4

In principle, the relevant department of the local government is to be responsible for inviting investment to the export processing
zone. When inviting investment, the local governments shall abide by the guidance of the relevant industrial policy of the state,
and give priority to attracting large, newly established enterprises of downstream processing trade (e.g. manufacturers of complete
machinery, which require large amount of raw and processed materials transferred from other enterprises of processing trade) to the
zone.

Chapter II the Administration of the Processing Trade Business in the Export Processing Zone

Article 5

The department of foreign trade and economic cooperation of the government at the provincial level shall be responsible for the administration
of processing trade business in the export processing zone. The Management Committee of an export processing zone (hereinafter referred
to as the Management Committee), which has been set up with the approval of the government at a higher level shall take charge of
the examination and approval of the processing trade business in the zone. The Management Committee shall keep informed of the operation
state of the enterprises in the zone and report regularly to the department of foreign trade and economic cooperation of the government
at the provincial level. In regions where conditions permit, the Management Committee shall, through the Port Electronic System for
Law Enforcement, find out from the Customs the data of import and cancellation after verification of the enterprises in the zone.

Article 6

After established in the zone, the enterprise must, by presenting its business license, submit to the Management Committee a written
application for engaging in processing trade. The application shall contain the form and content of the processing trade by the enterprise,
and be attached with the list of the equipment and the list of materials and articles to be imported for the processing and the list
of the finished goods to be exported (The three lists may be submitted separately for approval if they cannot be submitted together,
for the formats of which, refer to the Attachment).

Article 7

After receiving the application of an enterprise in the zone, the Management Committee shall make strict examination in accordance
with the relevant provisions of the state and then issue an Approval Certificate for Processing Trade Business in the Export Processing
Zone (for the format of it, refer to the Attachment) and approve the attached lists, for those applications for the processing trade
business which is not prohibited by the state. The Customs shall register and put on records the enterprise according to the approval.

Article 8

In regions where the conditions permit, the enterprise shall submit their application and the attached lists to the Management Committee
through the Port Electronic System for Law Enforcement, the Management Committee shall examine such application and attached lists
also through the same System. The Customs shall register the enterprise according to the electronic documents approved by the Management
Committee.

Article 9

The enterprise in the zone may start the processing trade business within the approved scope only after it has been registered by
the Customs; where any new processing trade business manages beyond the approved scope, the enterprise must go through the examination
and approval procedures with the Management Committee in accordance with the provisions of Article 6 for such new business.

Article 10

Products finished in the zone shall be exported. Under special circumstances or where the finished products need to be sold in domestic
market out of the zone according to the contract (articles of association) of the enterprise with foreign investment, the relevant
enterprise in the zone shall go through the exit-zone formalities with the Customs, while the relevant enterprise out of the zone
shall go through the entry-zone procedure with the Customs of the zone in accordance with the relevant import provisions, and submit
the import license if such finished products belong to the products of import licenses administration.

Article 11

Leftover bits and pieces, defective or substandard products and waste products brought about during the processing production of the
enterprise in the zone shall be managed according to the relevant measures for the management of those outside the zone. If any leftover
bits and pieces and waste products really need to be transported outside the zone for destruction, such transport and destruction
shall be subject to the approval of the Management Committee and the department of environmental protection at the place of destruction.,
the Customs shall check them according to the approval. The enterprise must, after the destruction, submit the destruction proof
to the Management Committee for record.

Chapter III Import and Export of Goods

Article 12

No goods imported or exported between the export processing zone and any area outside the country shall be subject to any import or
export quota or license, except the goods subject to passive quota control, hypertoxic chemicals, chemical weapon prosoma, solid
waste, and other materials, which, according to the relevant provisions of the state, shall be subject to license and which the Customs
may release only upon valid certificate.

Article 13

Goods trading between the export processing zone and any domestic enterprise outside the zone is regarded as normal import and export,
and shall be handled in accordance with the relevant existing provisions. Goods subject to import or export allocation license shall
be released by the Customs upon valid certificate.

Article 14

The goods whose import or export is prohibited by the state may not in principle enter the export processing zone. Where any domestic
enterprise outside the zone needs to transport any goods whose export is prohibited by the state or which are subject to unified
operation to the zone for processing and then transport the processed products to any domestic region outside the zone, an application
shall be submitted to the Ministry of Foreign Trade and Economic Cooperation for approval, and the Customs shall make supervision
thereon in accordance with the relevant administrative regulations concerning processing exported materials.

Article 15

Imported equipment provided, not as investment, by the foreign party under processing trade contract shall, when entering the export
processing zone, be exempt from any import license, and shall, however, be under the supervision and control of the Customs, and
be returned outside the country upon the expiration of the contract; for those, after the expiration of the contract, cannot be returned
and require the Customs to release the supervision and control in order to be transported outside the zone, the Customs shall handle
the affairs according to the relevant provisions concerning normal import.

Chapter IV Supplementary Provisions

Article 16

All enterprises in the zone must do their business in accordance with the relevant laws and regulations of the state.

Article 17

The Management Committee of each export processing zone shall, in accordance with the relevant provisions of the State and these Measures
and the operational procedures for the Port Electronic System for Law Enforcement, and in the light of the local conditions, formulate
proper implementation rules, and submit them to the Ministry of Foreign Trade and Economic Cooperation for record.

Article 18

These Measures shall enter into force as of April 1, 2001. The Ministry of Foreign Trade and Economic Cooperation and the General
Administration of Customs shall be responsible for the their interpretation.



 
The Ministry of Foreign Trade and Economic Cooperation
2001-03-21

 







SUPPLEMENTARY CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON RELEVANT ISSUES CONCERNING THE ADMINISTRATIVE MEASURES AND THE WORKING RULES FOR THE COLLECTION AND PAYMENT OF INCOME TAX OF ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES

The State Administration of Taxation

Supplementary Circular of the State Administration of Taxation on Relevant Issues Concerning the Administrative Measures and the Working
Rules for the Collection and Payment of Income Tax of Enterprises with Foreign Investment and Foreign Enterprises

GuoShuiHan[2001]No.319

April 30, 2001

The state taxation bureaus of all the provinces, autonomous regions, municipalitie directly under the Central Government and municipalities
separately listed on the State plan, the local taxation bureau of Shenzhen and the Yangzhou College for Further Studies on Taxation:

On the work of the collection and payment of income tax of enterprises with Foreign investment and foreign enterprises, the State
Administration of Taxation has issued the amended “Administrative Measures for the Collection and Payment of Income Tax of Enterprises
with foreign investment and Foreign Enterprises” (hereinafter referred to as “Measures”) and the “Working Rules for the Collection
and Payment of Income Tax of Enterprises with Foreign Investment and Foreign Enterprises” (hereinafter referred to as “Rules”) (GuoShuiFa
[2001] No.9). The relevant issues concerning the implementation of the Measures and Rules are hereby clarified as follows:

1.

On the administration of taxation assistance by taxpayer branches:

The administration of taxation assistance by taxpayers that have set up branches or business offices (hereinafter referred to as “business
offices”) in different regions is the joint function and duty of the taxation departments, therefore a system of taxation assistance
administration overseeing the business offices of taxpayers shall be established.

1)

The taxation department for the location where the head office or the business office responsible for collecting reports and paying
income tax for the enterprise (hereinafter referred to as “tax collection and payment office”) is located shall, after accepting
the report of annual income tax collection or consolidation of the taxpayer, produce the Certificate of Report of the Collection
or Consolidation of Enterprise Income Tax of the Enterprises with Foreign Investmentand Foreign Enterprises (Attachment 1) for the
taxpayer in appropriate time. The certificate shall be sent to the department in charge of taxation of the place where the taxpayer’s
business office is located. The time limit for submitting the certificate as provided by Article 6 of the Measures shall be adjusted
before June 31 of each year.

2)

If the taxation department of the location where the tax collection and payment office is located has found points of clarification
involving the taxpayer’s business office in the examination and evaluation of the tax collection reports and needs to make further
verification, it may send the “Letter for Assistance regarding Taxation Affairs of the Business Office” (Attachment 2) to the taxation
department of the location where the business office of that taxpayer is located, and that taxation department of the place where
that business office is located shall be responsible for the investigation and verification for affairs needing assistance, and shall
write a letter about the result back to the taxation department of the location where the tax collection and payment office is located.
If the taxation department of the place where the business office is located has found, in routine administration or taxation inspection,
problems involving income tax such as reporting less income or listing more costs for the business office, it shall promptly notify
in written form the taxation department of the location where the tax collection and payment office is located to handle the taxation
affairs (Attachment 3).

3)

The taxation department of the place where the business office is located shall abide by the following methods and procedures when
executing Article 6 of the Measures to collect tax on-location from the business office.

a.

The taxation department of the location where the business office is located may collect tax from the business office on-location
only under the following circumstances:

The business office has not submitted, before the time limit (July 31) provided by Article 6 of the Measures, the “Certificate of
Report of the Collection or Consolidation of Enterprise Income Tax of the Enterprises with Foreign Investment and Foreign Enterprises”
produced by the taxation department of the place where the tax collection and payment office is located, or other certificates that
can prove that its tax collection and payment office has reported the collection of annual income tax, without having obtained the
approval documents for a reporting extension.

b.

For the business office subject to the circumstances mentioned above, the amount of income tax to be collected may be verified and
calculated, or be verified according to the profit level for the same industry or by other means, and the amount of tax shortfall
shall be calculated and the punishment shall be determined according to the provisions of taxation laws and regulations; but if the
taxpayer’s collection report belongs to a profit loss or tax exemption year, the taxation department of the place where the business
office is located shall notify in written form the taxation department of the place where the tax collection and payment office is
located to make a unified tax adjustment (Attachment 3).

c.

The taxation department of the location where the business office is located shall, after handling the taxation affairs of the business
office according to the provisions mentioned above, notify in written form the taxation department of the place where the tax collection
and payment office is located regarding the relevant information (Attachment 3).

2.

On the examination and appraisal of the report of collection and payment

The collection and payment of enterprise income tax shall be completed within the period provided by tax laws. For this purpose, if
the taxation departments of the localities can not finish the detailed examination and appraisal of the annual report form of the
enterprises according to the full requirements of the Measures for Tax Examination and Appraisal within the period for collection
and payment provided by tax laws before adopting electronic means for examination and appraisal or because of other reasons, they
may make the initial tax examination of the relevant items provided by Item 3 of the Second Paragraph of Article 3 of the “Working
Rules for the Collection and Payment of Income Tax of Enterprises with Foreign Investment and Foreign Enterprises” after receiving
the report form materials submitted by the taxpayer, and shall issue the notification of collection and payment according to the
result of the initial examination and appraisal within the period of collection and payment provided by tax laws. The departments
shall make detailed appraisals on the taxpayers that have points of clarification arise during the initial examination and appraisal,
and shall make relevant taxation adjustments.

Attachments:

1.

Certificate of Report of the Collection or Consolidation of Enterprise Income Tax of the Enterprises with Foreign Investment and Foreign
Enterprises

2.

Letter for Assistance regarding Taxation Affairs of the Business Office

3.

Letter of Contact regarding the Taxation Handlings of the Business Office

Attachment 1:Certificate of Report of the Collection or Consolidation of Enterprise Income Tax of the Enterprises with Foreign Investment and Foreign
Enterprises

Certificate No. ( ) of the State (local) taxation bureau

To the State (local) taxation bureau:

The _______________________________________________ under your jurisdiction is the business office set up in your place by the ____________________________under
our jurisdiction, and has already collected or consolidated and reported its annual enterprise income tax at this bureau in Month
__ Year __.

Hereby certified.

Name and official seal of the taxation department of the place where the tax collection and payment office is located.

Month__ Day__ Year __

Certificate of Report of the Collection or Consolidation of Enterprise Income Tax of the Enterprises with Foreign Investment and Foreign
Enterprises

Certificate No. ( ) of the State (local) taxation bureau

To the State (local) taxation bureau:

The ____________________________________ under your jurisdiction is the business office set up in your place by the __________________________
administrated by our bureau, and has already collected or consolidated and reported its annual enterprise income tax at this bureau
in Month __ Year __.

Hereby certified.

With greetings

Name and official seal of the taxation department of the place where tax collection and payment office is located

Month __ Day __ Year __

Post code and address of the taxation department:

Person responsible for business contact:

Telephone:

Fax:

Attachment 2:Letter for Assistance regarding Taxation Affairs of the Business Office (Receipt)

No. ( ) of the State (local) taxation bureau

To the State (local) taxation bureau:

The __________________________________ under your jurisdiction is the business office set up in your place by the ________________________
administrated by this bureau, please investigate and verify the following matters regarding that business office:

Matters:

Points of Clarification:

The name and official seal of the taxation department of the place where tax collection and payment is located

Month __ Day __ Year __

Letteistance regarding Taxation Affairs of the Business Office (Receipt)

Letter No. ( ) of the State (local) taxation bureau

The state (local) taxation bureau:

The __________________________________ under your jurisdiction is the business office set up in your place by the ________________________
administrated by this bureau, please investigate and verify the following matters regarding that business office:

Matters:

points of clarification:

Registered address of the business office:

Telephone:

Fax:

With greetings

Name and official seal of the taxation department of the place where the tax collection and payment is located

Month __ Day __ Year __

Post code and address of the department in charge of taxation:

Person responsible for business contact:

Telephone:

Fax:

Attachment 3:Letter of Contact regarding the Taxation Handlings of the Business Office

Letter No. ( ) of the State (local) taxation bureau

The State (local) taxation bureau:

The ____________________________________ under your jurisdiction is the business office set up in your place by the __________________________
administrated by our bureau.

Address of the business office:

Telephone:

Fax:

According to the Law of the People’s Republic of China on Income Tax of Enterprises with Foreign Investment and Foreign Enterprises
and the provisions of the “Supplementary Circular on Relevant Issues Concerning the Administrative Measures and Working Rules for
the Collection and Payment of Income Tax of Enterprises with Foreign Investment and Foreign Enterprises,” we will handle, based on
our verification, the income tax of that business office of Year __ as follows:

1.

The amount of taxable income that the business office has not collected and reported as determined by our bureau:

1)

Verified amount: ___________________.

2)

Amount appraised and calculated according to the profit margins of the same industry: _____________________.

3)

Amount appraised and calculated by other means: _______________.

2.

The amount of unreported to be collected and the punitive amount calculated by this bureau:

Applicable tax rate (actual collection rate): __________ Tax amount to be collected: _______________. Late fee ___________________
Punitive amount: ____________________.

3.

The taxation affairs submitted by this bureau to you for handlings:

1)

The amount of income that the business office has failed to report: ________________.

2)

The amount expenses over-claimed by the business office: ___________.

3)

The amount of profit (loss) of this business office for which your bureau must make taxation adjustment and handlings because the
taxpayer is considered to belongs to a profit loss (tax exemption) year: _______.

4)

Other matters: _________________________________________.

Name and official seal of the taxation department of the place where the business office is located

Month __ Day __ Year __

Postal code of the taxation department: Address:

Person responsible for business contact:

Telephone:

Fax:



 
The State Administration of Taxation
2001-04-30

 







JUDGES LAW

Judges Law of the People’s Republic of China

(Adopted at the 12th Meeting of the Standing Committee of the Eighth National People’s Congress on February 28, 1995,
promulgated by Order No. 38 of the President of the People’s Republic of China on February 28, 1995, and amended in accordance with
the Decision on Amending the Judges Law of People’s Republic of China adopted at the 22nd Meeting of the Standing Committee of the
Ninth National People’s Congress on June 30, 2001) 

Contents 

Chapter I     General Provisions 

Chapter II    Functions and Duties 

Chapter III   Obligations and Rights 

Chapter IV    Qualifications for a Judge 

Chapter V     Appointment and Removal 

Chapter VI    Posts to Be Avoided 

Chapter VII   Grades of Judges 

Chapter VIII  Appraisal 

Chapter IX    Training 

Chapter X     Awards 

Chapter XI    Punishment 

Chapter XII   Salary, Insurance and Welfare 

Chapter XIII  Resignation and Dismissal 

Chapter XIV   Retirement 

Chapter XV    Petition and Complaint 

Chapter XVI   Commission for Examination and Assessment of Judges 

Chapter XVII  Supplementary Provisions 

 

Chapter I 

General Provisions 

Article 1   This law is enacted in accordance with the Constitution to enhance the quality of judges, to strengthen the
administration of judges, and to ensure that the People’s Courts independently exercise judicial authority according to law, that
judges perform their functions and duties according to law and that law is administered impartially. 

Article 2   Judges are judicial persons who exercise the judicial authority of the State according to law, and they include
the presidents, vice-presidents, members of judicial committees, chief judges and associate chief judges of divisions, judges and
assistant judges of the Supreme People’s Court, local People’s Courts at various levels and special People’s Courts such as military
courts. 

Article 3   Judges shall faithfully implement the Constitution and laws, and serve the people wholeheartedly. 

Article 4   Judges, when performing their functions and duties according to law, shall be protected by law. 

Chapter II 

Functions and Duties 

Article 5    The functions and duties of a judge are as follows : 

(1) to take part in a trial as a member of a collegial panel or to try a case alone according to law; and 

(2) to perform other functions and duties as provided by law. 

Article 6   Presidents, vice-presidents, members of judicial committees, and chief judges and associate chief judges of
divisions shall, in addition to the judicial functions and duties, perform other functions and duties commensurate with their posts.
Chapter III 

Obligations and Rights 

Article 7   Judges shall perform the following obligations: 

(1) to strictly observe the Constitution and laws; 

(2) to take facts as the basis and laws as the criterion when trying cases, to handle cases impartially, and not to bend the law
for personal gain; 

(3) to protect the litigation rights of the participants in proceedings according to law; 

(4) to safeguard the State interests and public interests, and to safeguard the lawful rights and interests of natural persons, legal
persons and other organizations; 

(5) to be honest and clean, faithful in the discharge of duties, to observe discipline and professional ethics; 

(6) to keep State secrets and the secrets of judicial work; and 

(7) to accept legal supervision and supervision by the masses. 

Article 8   Judges shall enjoy the following rights: 

(1) to have the power and working conditions which are essential to the performance of the functions and duties of judges; 

(2) to brook no interference from administrative organs, public organizations or individuals in trying cases according to law; 

(3) to be not removed, demoted or dismissed from the post, and to be not given a sanction, without statutory basis and without going
through statutory procedures; 

(4) to be remunerated for work and to enjoy insurance and welfare benefits; 

(5) to enjoy safety of the person, property and residence as ensured by law; 

(6) to receive training; 

(7) to lodge petitions or complaints; and 

(8) to resign their posts. 

Chapter IV 

Qualifications for a Judge 

Article 9   A judge shall possess the following qualifications: 

(1) to be of the nationality of the People’s Republic of China; 

(2) to have reached the age of 23; 

(3) to endorse the Constitution of the People’s Republic of China; 

(4) to have fine political and professional quality and to be good in conduct; 

(5) to be in good health; and 

(6) to have worked in law for at least two years in the case of a graduate from a four-year course in the law specialty of an institution
of higher education or a graduate from a four-year course in a non-law specialty of such an institution who possesses the professional
knowledge of law, and to have worked in law for at least three years in the case of the said graduate to be appointed judge of a
Higher People’s Court or the Supreme People’s Court; to have worked in law for at least one year in the case of a person holding
a Master of Law degree or Doctor of Law degree; or a person holding a master’s degree or doctor’s degree of non-law specialty who
possesses the professional knowledge of law, and to have worked in law for at least two years in the case of the said person to be
appointed judge of a Higher People’s Court or the Supreme People’s Court. 

The judicial persons who, before this Law is implemented, do not possess the qualifications as provided by sub-paragraph (6) of the
preceding paragraph shall receive training. The specific measures shall be formulated by the Supreme People’s Court. 

Where it is really difficult to apply the provisions in sub-paragraph (6) of the first paragraph regarding the academic qualifications,
such qualifications for judges may, upon examination and approval by the Supreme People’s Court and within a limited period of time,
be relegated to include graduates from a two-or-three-year course in the law specialty of an institution of higher education. 

Article 10   None of the following persons may hold the post of a judge: 

(1) persons who have been subjected to criminal punishment for commission of a crime; or 

(2) persons who have been discharged from public employment. 

Chapter V 

Appointment and Removal 

Article 11   A judge shall be appointed or removed from the post in accordance with the limit of authority for, and procedures
of, appointment or removal as prescribed by the Constitution and laws. 

The President of the Supreme People’s Court shall be elected or removed by the National People’s Congress. The vice-presidents, members
of the judicial committee, chief judges and associate chief judges of divisions and judges shall be appointed or removed by the Standing
Committee of the National People’s Congress upon the suggestions of the President of the Supreme People’s Court. 

The presidents of the local People’s Courts at various levels shall be elected or removed by the local People’s Congress at various
levels. The vice-presidents, members of the judicial committees, chief judges and associate chief judges of divisions and judges
shall be appointed or removed by the standing committees of the people’s congresses at the corresponding levels upon the suggestions
of the presidents of those courts. 

The appointment or removal of the presidents of the Intermediate People’s Courts set up in prefectures of the provinces or autonomous
regions or set up in the municipalities directly under the Central Government shall be decided on by the standing committees of the
people’s congresses of provinces, autonomous regions or municipalities directly under the Central Government on the basis of the
nominations made by the respective councils of chairmen. The vice-presidents, members of the judicial committees, chief judges and
associate chief judges of divisions and judges shall be appointed or removed by the standing committees of the people’s congresses
of the provinces, autonomous regions or municipalities directly under the Central Government upon the suggestions of the presidents
of the Higher People’s Courts. 

The presidents of the local People’s Courts at various levels set up in the national autonomous areas shall be elected or removed
by the people’s congresses at various levels of the national autonomous areas. The vice-presidents, members of the judicial committees,
chief judges and associate chief judges of divisions and judges shall be appointed or removed by the standing committees of the people’s
congresses at the corresponding levels upon the suggestions of the presidents of those courts. 

The assistant judges of the People’s Courts shall be appointed or removed by the presidents of the courts where they work. 

The measures for the appointment or removal of the presidents, vice-presidents, members of the judicial committees, chief judges
and associate chief judges of divisions and judges of the Special People’s Courts such as the military courts shall be formulated
by the Standing Committee of the National People’s Congress separately. 

Article 12   Persons to be appointed judges for the first time shall be selected, through strict examination and appraisal,
from among those who have passed the uniform national judicial examination and who are the best qualified for the post, in conformity
with the standards of having both ability and political integrity. 

Persons to be appointed presidents or vice-presidents of People’s Courts shall be selected from among the best judges and other people
who are best qualified for the post. 

Article 13   If a judge is found to be in any of the following circumstances, a suggestion shall be submitted according
to law for his or her removal from the post: 

(1) having forfeited the nationality of the People’s Republic of China; 

(2) having been transferred out of a court; 

(3) having no need to maintain his or her original post after a change of post; 

(4) being determined to be incompetent in the post through appraisal; 

(5) being unable to perform the functions and duties of a judge for a long period of time due to poor health; 

(6) having retired from the post; 

(7) having resigned the post, or having been dismissed; or 

(8) being disqualified from continuing to hold the post because of violation of discipline or law or commission of a crime. 

Article 14   Once the organ discovers that the appointment of a person as judge made by it is in violation of the provisions
of this Law governing the qualifications for judges, it shall revoke the appointment. Where a court at a higher level discovers that
the appointment of a judge made by a court at a lower level is in violation of the provisions governing the qualifications for judges,
the former shall suggest to the latter that it revoke the appointment in accordance with law or that the it, in accordance with law,
suggest to the standing committee of the people’s congress at the same level that it revoke the appointment. 

Article 15   No judges may concurrently be members of the standing committees of the people’s congresses, or hold posts
in administrative organs, procuratorial organs, enterprises or institutions, or serve as lawyers. 

Chapter VI 

Posts to Be Avoided 

Article 16   Judges who are connected by husband-wife relationship, or who are directly related by blood, collaterally
related within three generations, or closely related by marriage may not, at the same time, hold the following posts: 

(1) the president, vice- presidents, members of the judicial committee, chief judges or associate chief judges of divisions in the
same People’s Court; 

(2) the president, vice-presidents, judges or assistant judges in the same People’s Court; 

(3) the chief judge, associate chief judges, judges or assistant judges in the same division; or 

(4) presidents or vice-presidents of the People’s Courts at the levels next to each other. 

Article 17   No judge may, within two years after leaving his or her post from a People’s Court, serve as an agent ad litem
or a defender in the capacity of a lawyer. 

No judge may, after leaving his or her post from a People’s Court, serve as an agent ad litem or a defender in a case being handled
by the court where he or she previously held a post. 

No spouse or children of a judge may serve as an agent ad litem or a defender in a case being handled by the court where the judge
holds a post. 

Chapter VII 

Grades of Judges 

Article 18   Judges are divided into twelve grades. 

The President of the Supreme People’s Court is the Chief Justice, and judges from the second to the twelfth grade are composed of
associate justices, senior judges and judges. 

Article 19   Grades of judges shall be determined on the basis of their posts, their actual working ability and political
integrity, their professional competence, their achievements in judicial work and their seniority. 

Article 20   Measures for the establishment of the grades and for their evaluation and promotion shall be formulated separately
by the State. 

Chapter VIII 

Appraisal 

Article 21   Appraisal of judges shall be conducted by the People’s Courts the judges belong to. 

Article 22   The appraisal of judges shall be carried out objectively and impartially, through the combined efforts of
the leaders and masses, and routinely and annually. 

Article 23   The appraisal of judges shall include their achievements in judicial work, their ideological level and moral
character, their competence in judicial work and their mastery of law theories, their attitude in and style of work. However, emphasis
shall be laid on their achievements in judicial work. 

Article 24   The results of the annual appraisal shall fall into three grades: excellent, competent and incompetent. 

The results of appraisal shall be taken as the basis for award, punishment, training, removal or dismissal of a judge, and for readjustment
of his or her grade and salary. 

Article 25   A judge shall be informed of the result of the appraisal in written form. If the judge disagrees with the
result, he or she may apply for reconsideration. 

Chapter IX 

Training 

Article 26   Theoretical and professional training for judges shall be carried out in a planed way. 

The principles of integrating theory with practice, giving lectures in light of the needs, and emphasizing practical results shall
be applied in the training of judges. 

Article 27   The judges colleges and universities of the State and other institutions for training judges shall, in accordance
with relevant regulations, undertake the task of training judges. 

Article 28   The results of the studies of judges and appraisals made during their training shall be taken as one of the
bases for their appointment and promotion. 

Chapter X 

Awards 

Article 29   Judges who have made significant achievements and contributions in judicial work, or performed other outstanding
deeds shall be rewarded. 

The principle of combining moral encouragement with material reward shall be applied in rewarding judges. 

Article 30   Judges who have any of the following achievements to their credit shall be rewarded: 

(1) having achieved notable successes in enforcing laws and handling cases impartially; 

(2) having accumulated rich experience in judicial practice that may serve as a guide in judicial work; 

(3) having made proposals for the reform of judicial work that have been adopted and have produced remarkable results; 

(4) having performed outstanding deeds in safeguarding the interests of the State, the collective and the people against heavy losses; 

(5) having performed outstanding deeds by bravely fighting against illegal or criminal acts; 

(6) having made judicial proposals that have been adopted and have produced remarkable results, or having scored outstanding successes
in publicizing the importance of the legal system and guiding the work of the people’s mediation committees; 

(7) having scored outstanding achievements in protecting State secrets and secrets of judicial work; or 

(8) having performed other meritorious deeds. 

Article 31   The awards include: Citation for Meritorious Deeds, Merit Citation Class III, Merit Citation Class II, Merit
Citation Class I, and a post_title of honour. 

The awards shall be authorized and procedures gone through in accordance with relevant regulations. 

Chapter XI 

Punishment 

Article 32   No judge may commit any of the following acts: 

(1) to spread statements damaging the prestige of the State; to join illegal organizations; to take part in such activities as assembly,
procession and demonstration against the State; and to participate in strikes; 

(2) to embezzle money or accept bribes; 

(3) to bend law for personal gain; 

(4) to extort confessions by torture; 

(5) to conceal or falsify evidence; 

(6) to divulge State secrets or secrets of judicial work; 

(7) to abuse functions and powers; and to infringe upon the lawful rights and interests of natural persons, legal persons or other
organizations; 

(8) to neglect his or her duty so as to wrongly judge a case or to cause heavy losses to the party concerned; 

(9) to delay the handling of a case so that work is adversely affected; 

(10) to take advantage of the functions and powers to seek gain for himself or herself or other people; 

(11) to engage in profit-making activities; 

(12) to meet the party concerned or his or her agent without authorization and attend dinners or accept presents given by the party
concerned or his or her agent; or 

(13) to commit other acts in violation of law or discipline. 

Article 33   A judge who has committed any of the acts listed in Article 32 of this Law shall be given sanctions; if the
case constitutes a crime, he or she shall be investigated for criminal responsibility in accordance with law. 

Article 34   The sanctions include: a disciplinary warning, a demerit recorded, a grave demerit recorded, demotion, dismissal
from the post and discharge from public employment. 

The salary of a judge who has been dismissed from the post shall at the same time be reduced and his or her grade be demoted. 

Article 35   A sanction shall be authorized and procedures gone through in accordance with relevant regulations. 

Chapter XII 

Salary, Insurance and Welfare 

Article 36   The salary system and scales for judges shall, in light of the characteristics of judicial work, be formulated
by the State. 

Article 37   The system under which the salaries of judges are increased regularly shall be practiced. The salary of a
judge who has been confirmed through appraisal as being excellent or competent may be raised in accordance with regulations; the
salary of a judge who has made special contributions may be raised in advance in accordance with regulations. 

Article 38   Judges shall enjoy judicial allowances, regional allowances and other allowances and insurance and welfare
benefits as prescribed by the State. 

Chapter XIII 

Resignation and Dismissal 

Article 39   If a judge requests resignation, he or she shall present an application in written form before he or she shall
be removed in accordance with the procedures as provided by law. 

Article 40   A judge shall be dismissed if he or she is found to be in any of the following circumstances: 

(1) to be confirmed by annual appraisal as being incompetent for two successive years; 

(2) to be unqualified for the present post and decline to accept other assignments; 

(3) to refuse to accept reasonable transfer, which is necessitated by restructuring of the judicial organ or reduction of the size
of the size of the staff; 

(4) to have stayed away from work without leave or to have overstayed his or her leave without good reason for fifteen days or more
in succession, or for thirty days or more in a year aggregated; or 

(5) to fail to perform a judge’s duty, and make no rectification after criticism. 

Article 41   A judge who is dismissed shall be removed from the post in accordance with the procedures as provided by law. 

Chapter XIV 

Retirement 

Article 42   The retirement system regarding judge shall, in light of the characteristics of judicial work, be formulated
separately by the State. 

Article 43   After retirement judges shall enjoy the insurance of old-age pension and other benefits as prescribed by the
State. 

Chapter XV 

Petition and Complaint 

Article 44   If a judge disagrees with the sanction given to him or her or the disposition of his or her case by a People’s
Court, he or she may, within 30 days from the date of receiving the decision on the sanction or disposition, apply for reconsideration
to the organ which gave the sanction or disposed of the case and shall have the right to appeal to the organ at a level higher than
the organ which gave the sanction or disposed of the case. 

The organ that receives the appeal must make a decision on it in accordance with regulations. 

During the period of reconsideration or petition, execution of the decision on a sanction or disposition made with regard to a judge
shall not be suspended. 

Article 45   If a State organ or any of its functionaries commits an act infringing upon the rights of a judge as provided
by Article 8 of this Law, the judge shall have the right to make a complaint. 

If an administrative organ, a public organization or an individual interferes in a case that a judge is trying according to law,
that organ, organization or individual shall be investigated for responsibility according to law. 

Article 46   The petition or complaint made by a judge shall be true to facts. If a judge makes up a story or lodges a
false accusation against an innocent person, he or she shall be investigated for responsibility according to law. 

Article 47   Where the sanction given to a judge or the disposition of hie or her case is wrong, it shall be put right
without delay; if it has damaged the judge’s reputation, the reputation shall be rehabilitated, the ill effects shall be eliminated
and an apology shall be made; if it has caused financial losses to the judge, compensations shall be made. The persons who are directly
responsible for retaliation shall be investigated for responsibility according to law. 

Chapter XVI 

Commission for Examination and Assessment of Judges 

Article 48   A People’s Court shall establish a commission for examination and assessment of judges. 

The functions and duties of a commission for examination and assessment of judges are to guide the training, examination, appraisal
and assessment of judges. Specific measures in this regard shall be formulated separately. 

Article 49   The number of persons on a commission for examination and assessment of judges shall be five to nine. 

The chairman of a commission for examination and assessment of judges shall be assumed by the president of the court it belongs to. 

Chapter XVII 

Supplementary Provisions 

Article 50   In light of the need of judicial work, the Supreme People’s Court may shall, in conjunction with the relevant
departments, formulate measures to fix the proportion of judges to other staff members in the People’s Courts at different levels. 

Article 51   The State institutes a uniform judicial examination system for persons to be appointed judges or procurators
for the first time, or to obtain the qualifications for lawyer. The judicial administration department under the State Council shall,
in conjunction with the Supreme People’s Court and the Supreme People’s Procuratorate, formulate implementation measures for judicial
examination. The judicial administration department under the State Council shall take charge of the implementation of the measures. 

Article 52   The executors of the People’s Courts shall be administered with reference to the relevant provisions of this
Law. 

Measures for the administration of the clerks of the People’s Courts shall be formulated by the Supreme People’s Court. 

The administrative judicial personnel of the People’s Courts shall be administered in accordance with the relevant regulations of
the State. 

Article 53   This law shall go into effect as of July 1, 1995.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.







CIRCULAR OF THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE ON PROMPT AND EFFICIENT COMPLETION OF BUSINESS REGISTRATION CANCELLATION PROCEDURES

The State Administration for Industry and Commerce

Circular of the State Administration for Industry and Commerce on Prompt and Efficient Completion of Business Registration Cancellation
Procedures

GongShangQiZi [2001] No.238

August 29,2001

Administrations for industry and commerce in various provinces, autonomous regions, municipalities directly under the Central Government:

In recent years, some local governments have closed and repealed some enterprises in succession. Some enterprises lacking in adequate
knowledge of related enterprise registration administration laws and regulations did not duly complete the registration cancellation
procedures with competent authorities upon completion of their liquidation work, resulting in delayed cancellation of some enterprises.
To prevent similar problems from reoccurring, this circular on issues of enterprise registration cancellation is given as follows:

I.

Each local administration of industry and commerce should conduct a special review of the enterprises which competent government authorities
have decided to close and repeal but whose registration still remains short of cancellation. As for enterprises that should have
cancelled their registration, related departments should be urged for prompt completion of the procedures. As for enterprises who
fail to complete the registration cancellation procedures due to unfinished settlement of their equity and liabilities, competent
departments of the enterprises and the liquidation group should be urged to speed up the settlement of equity and liabilities. Businesses
failing to effect the registration cancellation procedures on other grounds should actively coordinate with related departments to
find solutions to the impeding difficulties.

II.

Each local administration of industry and commerce should report this matter to the provincial, autonomous region or municipal government
for guidance on and support for its work in this regard and carefully implement the review of enterprises canceling their registration.



 
The State Administration for Industry and Commerce
2001-08-29

 







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...