CIRCULAR OF THE MINISTRY OF FINANCE OF THE PEOPLE’S REPUBLIC OF CHINA ON STOPPING THE COLLECTION OF PRICE SUBSIDY FROM THE EMPLOYEES OF THE CHINESE PARTIES TO ENTERPRISES WITH FOREIGN INVESTMENT

The Ministry of Finance

Circular of the Ministry of Finance of the People’s Republic of China on Stopping the Collection of Price Subsidy from the Employees
of the Chinese Parties to Enterprises with Foreign Investment

CaiQi [2001] No.664

November 7, 2001

The relevant issues concerning the collection of price subsidies from the employees of the Chinese parties of enterprises with foreign
investment are hereby notified as follows:

It is based on the distribution system of low wages, low price and multi subsidies adopted by our country to start collecting the
price subsidy. For recent years, the market prices have been opened and the expenses paid by the public finance in the aspects of
resident non-staple foodstuffs, etc. has decreased. Thus this Ministry has prescribed in Document CaiWaiZi [2000] No.4 of the Ministry
of Finance in 2000 that the finance organs of the localities may, according to the actual situations of their respect areas, lower
the standard of price subsidy for the enterprises or stop the collection of this price subsidy from January 1, 2000, taking their
respective circumstances into consideration.

With the deepening of the economic system reform of the State and the new situation that our country is going to join the WTO, it
has been decided after deliberation that the public fiscal organs of the localities shall stop collecting the price subsidy of the
Chinese parties of enterprises with foreign investment.

The Ministry of Finance
2001-11-07

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION AND THE MINISTRY OF FINANCE ON PRINTING AND DISTRIBUTING THE DETAILED RULES FOR THE IMPLEMENTATION OF THE MEASURES FOR ADMINISTRATION OF INTERNATIONAL MARKET DEVELOPING FUNDS OF SMALL-AND MEDIUM-SIZED ENTERPRISES

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

Circular of the Ministry of Foreign Trade and Economic Cooperation and the Ministry of Finance on Printing and Distributing the Detailed
Rules for the Implementation of the Measures for Administration of International Market Developing Funds of Small-and Medium-sized
Enterprises

WaiJingMaoJiCaiFa [2001] No.270

June 13, 2001

The commissions of foreign trade and economic cooperation, financial office, enterprise of foreign trade, bureaus of commerce(trade)
of import and export, of all provinces, autonomous regions and municipalitie directly under the Central Government, municipalities
separately listed on the State plan:

In accordance with the spirit of the ” Measures for Administration of International Market Developing Funds of Small-and Medium-sized
Enterprises(for trial)(CaiQi [2000] No.467)” , the MOFTEC and the Ministry of Finance have drew the “Detailed Rules for the Implementation
of the Measures for Administration of International Market Developing Funds of Small-and Medium-sized Enterprises”, and now print
and distribute to you, please carry out sincerely.

This is herby the notification. Attachment:

Detailed Rules for the Implementation of the Measures for Administration of International Market Developing Funds of Small-and Medium-sized
Enterprises (for Interim Implementation)

Chapter 1 General Provisions

Article 1

In order to strengthen the administration of international market developing funds of small-and medium-sized enterprises (hereinafter
referred to as “market developing funds”) and to improve the use of the fund, the Detailed Rules for the Implementation of the Measures
for Administration of International Market Developing Funds of Small-and Medium-Sized Enterprises (for provisional implementation)
(hereinafter referred to as “Detailed Rules for Implementation”) are hereby formulated according to the Measures for Administration
of International Market Developing Funds of Small-and Medium-Sized Enterprises (for provisional implementation) [CaiQi [2000] No.467,
hereinafter referred to as “Measures for Administration”]

Article 2

Market developing funds referred to in these Detailed Rules for Implementation include the governmental funds of the central treasury
used to help the businesses and small-and medium-sized enterprises open up the international markets, and the special funds independently
arranged by the treasuries.

Article 3

The market developing funds are divided into two parts, one for central use and the other for local use, and adopt two-level administration,
central administration and local administration. The part for local use is composed of the special funds appropriated by the central
financial budget and the special funds independently arranged by the local treasuries.

Article 4

The administration and use of the market developing funds shall abide by the principles of open and transparency, directional use,
scientific administration and strengthened supervision.

Chapter 2 Administrative Departments and their Functions and Responsibilities

Article 5

Foreign trade and economic departments and financial departments at all levels are the departments in charge of the market developing
funds, and shall jointly administrate the use of the market developing funds and the implementation of the projects. The foreign
trade and economic departments are responsible for the administration of the operation of the market developing funds, including
determining the support direction and the scope of use of the market developing funds, proposing the annual project fund plan, and
examining and proving the projects using the funds.

The financial departments are responsible for the budgeting and financial administration of the market developing funds, including
examining and approving the annual project fund plan, appropriating the market developing funds, drawing up supervising requirements
for the market developing funds, and shall follow and administrate the projects and the use of the fund jointly with the foreign
trade and economic departments.

Article 6

Upon the approval of the foreign trade and economic departments and the financial departments at all levels, the undertaking units
may be entrusted to be responsible for the specific administration of the operation of the market developing funds.

The part for central use shall be undertaken by the Administrative Office of the International Market Developing Funds of Small-and
Medium-Sized Enterprises (hereinafter referred to as the “Small-and Medium-Sized Enterprise Office”) that is entrusted by the Ministry
of Foreign Trade and Economic Cooperation and the Ministry of Finance; and the part for local use may be undertaken by the local
undertaking units entrusted by local foreign trade and economic departments and financial departments, and shall be reported to the
Ministry of Foreign Trade and Economic Cooperation and the Ministry of Finance for record.

Relevant work of the Small-and Medium-Sized Enterprise Office and local undertaking departments shall be under the supervision and
guidance of the foreign trade and economic departments and financial departments.

Article 7

The Small-and Medium-Sized Enterprise Office and local undertaking departments entrusted by the foreign trade and economic departments
and the financial departments shall undertake the following tasks:

being responsible for accepting the application for project fund plans, the application of project implementation and the application
for project fund appropriation, and making the initial examination;

drafting the annual project fund plans according to the applications for project fund plans;

being responsible for the arrangement, collection, statistics and analysis of the material of applications for project fund plans,
applications for project implementation and applications for project fund appropriation;

helping the foreign trade and economic departments and the financial departments follow and inspect the use of the market developing
funds;

drafting reports of the implementation of the annual project fund plan;

being responsible for the publicity and training of the relevant administrative provisions on the market developing funds.

Chapter 3 Use of the Funds

Article 8

The market developing funds are used to help the small-and medium-sized enterprises open up the international markets, and help the
enterprises, social organizations, institutions serving the small-and medium-sized enterprises (hereinafter referred to as the “project
organizing units”) organize the small-and medium-sized enterprises.

Article 9

The market developing funds are to support: holding or participating in overseas exhibitions; certification of quality administrative
system, environment administrative system, software export enterprises and all kinds of products; publicity and recommendation to
international markets; opening up new and emerging markets; organizing trainings and seminars; overseas bidding (bid negotiation)
and other aspects (see attachment 1 for the specific support contents and standards).

Article 10

The market developing funds are to priority support the following activities:

carrying out the strategy of market diversity, supporting the developing activities facing the new and emerging international markets
of Latin America, Africa, Middle East, East Europe and South-East Asia, etc;

carrying out the strategy of winning by good quality and developing trade by science and technology, supporting the international
market developing activities of the mechanical and electrical products, high-and new-tech products, the products of which more than
70% components are home-made or the products possessing independent intellectual property, etc;

supporting the activities of small-and medium-sized enterprises to get quality administrative system certification, environment administrative
system certification and product certification; and

supporting the international market developing activities of small-and medium-sized enterprises that have already obtained the quality
administrative system certification, environment administrative system certification and product certification.

Chapter 4 Targets of the Fund Use

Article 11

Applications of small-and medium sized-enterprises for opening up the international markets independently are enterprise project applications;
applications of project organizing units for organizing small-and medium sized-enterprises to open up the international markets are
organization project applications.

Article 12

The small-and medium sized-enterprises meeting the following requirements may apply for enterprise projects:

possessing the qualification for enterprise as legal person, owning import-export operations right or foreign economic cooperation
operation qualification, and the Customs statistics volume of exports of the last year is 15,000,000 dollars or below;

Having not committed any offenses in the aspects of foreign business and economic operational control, financial management, tax administration,
foreign exchange control, and custom supervision in the last two years;

Possessing professionals who specialize in international market developing, having definite work arrangement and market development
plans for developing international markets.

Article 13

Project organizing units meeting the following requirements may apply for the organization projects:

the organized activities are for the purpose of helping the small-and medium-sized enterprises open up international markets and of
improving the international competition capabilities of small and medium-sized enterprises;

there are 10 or more enterprises taking part in the activities, and more than 70% of the enterprises meeting the application requirements
for small-and medium-sized enterprises provided in Article 12 of these Detailed Rules for Implementation;

the funds applied for directly benefit the enterprises taking part in the activities, so as to reduce the expenses and the risks of
market development of those enterprises, and to increase the enterprise’s efficiency.

Article 14

Enterprises taking part in the organization projects may not apply for the market pioneering funds for the same project separately.

Chapter 5 Administration of and Standards for the Use of Funds

Article 15

The market developing funds arranged by the central treasury are divided into two parts, one for central use and the other for local
use. The funds directly used by the central authorities shall occupy 30% of the fund plan of that year, and the funds used by localities
shall occupy 70% of the fund plan of that year.

Article 16

In principle, the support proportion of market developing funds shall not exceed 50% of the amount the supported project needs. For
small-and medium-sized enterprises of the western regions, and for the market developing activities carried out in accordance with
the strategy of market diversity listed in paragraph 1, Article 10 of these Detailed Rules for Implementation, the support proportion
of funds may be raised to 70%.

Article 17

Expenses paid in foreign currencies shall be converted into Renminbi (RMB) according to the foreign exchange quotation promulgated
by China People’s Bank of the day on which the expense voucher is issued.

Chapter 6 Administration of the Project Fund Plan

Article 18

The Ministry of Foreign Trade and Economic Cooperation and the Ministry of Finance shall jointly negotiate with each other and decide
about the fund quota of the part for central use and the part for local use of next year according to the arrangements of the annual
market developing fund plan.

The Ministry of Foreign Trade and Economic Cooperation and the Ministry of Finance shall make the fund quota for local use known to
the local foreign trade and economic departments and financial departments before July 1 of each year.

Article 19

The Ministry of Foreign Trade and Economic Cooperation and the local foreign trade and economic departments are responsible for proposing
the annual project fund plan of the part for central use and the part for local use of the next year. The contents of the project
fund plan shall include: specific projects, support contents, support proportion and support amount, etc.

Article 20

The project fund plan of the part for local use shall be reported to the Ministry of Foreign Trade and Economic Cooperation before
Aug. 15 of each year by the local foreign trade and economic departments after being examined by the financial departments of the
same level.

The Ministry of Foreign Trade and Economic Cooperation is responsible for proposing the national project fund plan of the market pioneering
funds of the next year, and shall report the plan to the Ministry of Finance before Sep. 10 of each year.

Article 21

The Ministry of Finance shall give a written reply concerning the national project fund plan of market developing funds of the next
year to the Ministry of Foreign Trade and Economic Cooperation before Oct. 10 of each year.

The Ministry of Finance and the Ministry of Foreign Trade and Economic Cooperation shall jointly make the project fund plan of the
next year known to the local financial departments and foreign trade and economic departments before Nov.1 of each year according
to the annual project fund plan.

Article 22

The projects that may be listed in the project fund plan for central use shall include:

organization projects proposed by the project organizing units which organize the small-and medium-sized enterprises of the whole
country or of different regions to open up the international markets;

organization projects proposed by the central enterprises which organize the small-and medium-sized enterprises to pioneer the international
markets;

enterprise projects proposed by the central enterprises that comply with the provisions of Article 12 of these Detail Rules of Implementation
or by the subsidiary companies of the central enterprises that have made industrial and commercial registration in Beijing.

Article 23

Projects that may be listed in the annual project fund plan for local use shall include:

organization projects proposed by project organizing units that organize the local small-and medium-sized enterprises to open up the
international markets;

enterprise projects proposed by the small-and medium-sized enterprises that have made industrial and commercial registration in that
region and that comply with the provisions of Article 12 of these Detailed Rules of Implementation;

enterprise projects proposed by the subsidiary companies of central enterprises that have made industrial and commercial registration
in that region and that comply with the provisions of Article 12 of these Detailed Rules of Implementation.

Article 24

The Ministry of Finance and the Ministry of Foreign Trade and Economic Cooperation may make appropriate adjustment to the project
fund plan of this year that have been made known to the lower levels in the executing year according to the use status and use effect
of the market developing funds.

Article 25

The Ministry of Finance shall appropriate the funds according to the annual project fund plan made known to the lower levels. Among
which, the funds distributed for local use shall be appropriated to the local financial departments once for all or by time; the
market developing funds used by central budget administrative units shall be appropriated directly by the Ministry of Finance; and
the other market developing funds for central use shall be appropriated to the Ministry of Foreign Trade and Economic Cooperation
every three months according to the annual project fund plan.

Chapter 7 Application Procedures

Article 26

Application for project fund plan. Small-and medium-sized enterprises or project organizing units that meet the requirements for application
of Article 12 , Article 13 of these Detailed Rules for Implementation may apply to the Small-and Medium-Sized Enterprise Office
or the local foreign trade and economic departments for the project fund plan of the next year according to the support contents
provided in these Detailed Rules for Implementation from July 1 to July 31 of each year.

Article 27

Small-and medium-sized enterprises or project organizing units shall submit the basic information of the applying units, application
report, the basic information of the project applied for (see attachment 2 for details), and shall attach the relevant material together
when applying for the project fund plan.

Article 28

The Ministry of Foreign Trade and Economic Cooperation shall make public announcements of the specific contents of the project fund
plan after the Ministry of Finance and the Ministry of Foreign Trade and Economic Cooperation have given a written reply concerning
the project fund plan of the next year. Small-and medium-sized enterprises and project organizing units shall make relevant preparations
according to the project fund plan replied by the foreign trade and economic departments and the financial departments.

Article 29

Application for project implementation. Small-and medium-sized enterprises or project organizing units shall, according to the annual
project fund plan replied, apply to the Small-and Medium-Sized Enterprise Office or to the local foreign trade and economic departments
for project implementation 30 days before the implementation of the projects starts.

Article 30

Small-and medium-sized enterprises or project organizing units shall submit the application for project implementation, explanations
of project implementation (see attachment 3 for details), and shall attach the relevant material together when applying for project
implementation.

Article 31

The Ministry of Foreign Trade and Economic Cooperation or the local foreign trade and economic departments may directly examine and
reply to the project implementation applications which are included in the annual project fund plan within 10 days, and send a copy
to the financial departments at the same time.

Article 32

The projects that apply for adjusting the contents of the project fund plan shall be reported to the Ministry of Foreign Trade and
Economic Cooperation and the Ministry of Finance for examination and approval after the Small-and Medium-Sized Office or the local
foreign trade and economic departments (financial departments) have given their initial opinions.

Article 33

For the projects that can’t be completed according to the project fund plan within the year, the small-and medium-sized enterprises
or project organizing units shall apply to the Small-and Medium-Sized Enterprise Office or the local foreign trade and economic departments
for project termination or project application postponement which shall be examined and approved by the foreign trade and economic
departments.

Article 34

In case of enterprise project application, the funds given to each project shall not be more than 300,000 RMB at the most, in case
of organization project application, the funds given to each project shall not be more than 3,000,000 RMB at the most.

Chapter 8 Appropriation of the Funds

Article 35

The market developing funds adopt the principle of appropriation afterwards, namely the small-and medium-sized enterprises or project
organizing units shall apply to the Small-and Medium-Sized Enterprise Office or the local foreign trade and economic departments
for project appropriation within 1 month after the project is completed.

Article 36

The following material shall be submitted when applying for the appropriation of project funds:

application form of project fund appropriation of international market developing funds of small-and medium-sized enterprises (see
attachment 4 for details);

project summing-up report of international market developing activities, the contents of which shall include: expenses, achievements
obtained and the problems, etc;

legal vouchers (the copies) of the expenses actually occurred.

Article 37

The market developing funds shall, through the financial departments at all levels, gradually carry out the treasury central payment
according to the requirements of budget reform and treasury central payment.

Article 38

The Small-and Medium-Sized Enterprise Office shall make an initial examination to the applications for the project fund appropriation
of the part for central use according to the annual project fund plan, and shall report them to the Ministry of Foreign Trade and
Economic Cooperation after gathering and arranging the projects each quarter (three months). Among which, the project funds of central
budget administrative units shall be directly appropriated after being examined by the Ministry of Finance, and the project funds
of other units shall be appropriated after being examined by the Ministry of Foreign Trade and Economic Cooperation.

Article 39

Local foreign trade and economic departments shall review the applications for project fund appropriation for local use according
to the annual project fund plan, and report them to the local financial departments for fund appropriation after gathering and arranging
the projects each quarter, and the local financial departments shall appropriate funds to the project organizing units or small-and
medium-sized enterprises after examination.

Chapter 9 Evaluation, Supervision and Inspection

Article 40

The Ministry of Finance and the Ministry of Foreign Trade and Economic Cooperation shall jointly supervise and inspect the market
developing funds. The contents of inspection shall include: the examination and approval of the projects and the implementation,
the use of project funds and the financial management. The forms of inspection may be following the whole process of the projects,
giving selective examination to the relevant material or entrusting intermediary agencies to conduct auditing, etc.

Article 41

The foreign trade and economic departments and financial departments shall establish strict project examination and approval system
and fund examination system, strengthen the inspection over projects and the evaluation of fund use effect, so as to guarantee the
directional use of the funds and make the best the use of the funds.

Article 42

Local foreign trade and economic departments and financial departments shall summarize and analyze the use of the market developing
funds each year, and shall report to the Ministry of Foreign Trade and Economic Cooperation and the Ministry of Finance before the
end of March of the next year. Major projects (more than 1,000,000 RMB ) shall be specially reported to the Ministries within 45
days after the projects are completed.

Article 43

The small-and medium-sized enterprises or project organizing units that use the market developing funds shall keep the relevant original
bills and vouchers in good conditions for future reference according to the relevant financial provisions, and shall cooperate with
and provide the relevant material to the foreign trade and economic departments and financial departments when the departments are
making a special inspection.

Chapter 10 Rules for Punishment

Article 44

Any of the following acts is in violation of the provisions of the Measures for Administration and these Detailed Rules for Implementation:

changing the use scope without authorization against the principles of market developing fund use;

withholding, misappropriating or embezzling the market developing funds;

using the funds for personal welfare, reward and consumer expenses or using the funds to make up the shortage of administrative funds;

repeatedly applying for the same project;

wangling the funds by using false material and vouchers;

the project organizing units directly use the market developing funds to improve their own profits and economic efficiency; and

other acts that violate the Measures for Administration, these Detailed Rules for Implementation and relevant laws and regulations
of the state.

Article 45

For the small-and medium-sized enterprises or project organizing units that have committed any of the acts mentioned above, the financial
departments shall recover the project funds that have already been obtained by the enterprises and the units; the foreign trade and
economic departments shall cancel their qualification for application, and shall prohibit them from applying for using the market
developing funds for 5 years.

Article 46

For those that have seriously violated the Measures for Administration and these Detailed Rules for Implementation, the foreign trade
and economic departments and financial departments shall give administrative punishment to the person in charge of that project and
to the persons held directly responsible, if a crime is constituted, the departments shall submit it to the judicial departments,
and the criminal responsibilities shall be investigated into according to law.

Article 47

If the Small-and Medium-Sized Enterprise Office or any local undertaking unit hasn’t earnestly performed its functions and duties
according to the provisions, the foreign trade and economic departments and financial departments shall make a notice to criticize
them, and shall cancel the undertaking qualification of those whose circumstances are serious.

Chapter 11 Supplementary Provisions

Article 48

Necessary funds may be arranged from the market developing funds for central use and those for local use by the rate of less than
3% according to operation needs to pay the undertaking expenses and operation expenses to the undertaking units, consultation companies,
evaluation companies, accounting firms and other intermediary agencies, so as to ensure the implementation of the evaluation, proving
and auditing of the projects using the market developing funds, and to strengthen the supervision and administration of the project
funds.

Article 49

Local foreign trade and economic departments and financial departments may formulate the specific measures for implementation of the
market developing funds of their own according to the requirements of the Measures for Administration and these Detailed Rules for
Implementation and taking the actual circumstances into consideration.

Article 50

The power to interpret these Detailed Rules for Implementation shall remain with the Ministry of Foreign Trade and Economic Cooperation
jointly with the Ministry of Finance.

Article 51

These Detailed Rules for Implementation shall come into force as of the date of promulgation.

Attachment:

1. Explanation of the contents supported by the international market developing funds of small-and medium-sized enterprises (omitted)

2. Application form of project fund plan of the international market developing funds of small-and medium-sized enterprises (omitted)

3. Application form of project implementation of the international market developing funds of small-and medium-sized enterprises (omitted)

4. Application form of project fund appropriation of the international market developing funds of small-and medium-sized enterprises
(omitted)

5. List of the countries of Latin America, Africa, Middle East, East European and South-East Asia (omitted)

6. List of certification agencies (omitted)

7. List of central enterprises (omitted)

The Ministry of Foreign Trade and Economic Cooperation, the Ministry of Finance
2001-06-13

CIRCULAR OF THE STATE ECONOMIC AND TRADE COMMISSION, THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION AND THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE ON FURTHER ENHANCING THE CHECK-UP AND RECTIFICATION OF NON-PILOT COMMERCIAL ENTERPRISES WITH FOREIGN INVESTMENT OF THE STATE ECONOMIC AND TRADE COMMISSION

The State Economic and Trade Commission, the Ministry of Foreign Trade and Economic Cooperation, the State Administration for Industry
and Commerce

Circular of the State Economic and Trade Commission, the Ministry of Foreign Trade and Economic Cooperation and the State Administration
for Industry and Commerce on Further Enhancing the Check-up and Rectification of Non-pilot Commercial Enterprises with Foreign Investment
of the State Economic and Trade Commission

GuoJingMaoWaiJing [2001] No.787

August 6,2001

The economic and trade committees (economic committees), committees (departments, bureaus, foreign investment committees) of foreign
trade and economic cooperation, administrations for industry and commerce, and the relevant local commerce committees (industry offices)
of all provinces, autonomous regions, municipalitie directly under the Central Government and municipality separately listed on the
State plan:

The General Office of the State Council issued the Notice on the Check-up and Rectification of Non-pilot Commercial Enterprises with
Foreign Investment (GuoBanFa [1998] No.98, hereinafter referred to as the No.98 Document) on July 1, 1998, and had made separate
decisions of approving, rectifying and improving, and cancelling (revoking) the non-pilot commercial enterprises with foreign investment
established upon the approval of the localities without authorization. However, No.98 Document hasn’t been earnestly carried out
in some areas yet, there are still some localities continuing to examine and approve without authorization the establishment of commercial
enterprises with foreign investment as well as their branches. Up to the present, the localities have, without authorization, approved
the establishment of 316 non-pilot commercial enterprises with foreign investment, among which 65 have changed from foreign-funded
to domestic-funded, or have no longer run commcial business, or have been cancelled (revoked), and 251 are still running business.
In order to safeguard the consistency and seriousness of the policies on pilot units using foreign investment in commcial business,
and to ensure the healthy and orderly progress of utilizing foreign investment in the area of commcial business, the matters concerning
further enhancing the follow-up work of the check-up and rectification are notified as follows upon the approval of the State Council:

All the enterprises, which have been brought into the category needing rectification and improvement in No.98 Document while having
not completed the rectification and improvement and which have been established upon the approval of the localities without authorization
after the distribution of No.98 Document, shall be rectified and improved strictly according to the provisions of the Measures for
Pilot Commercial Enterprises with Foreign Investment(hereinafter referred to as the Measures for Pilot Units). Every place shall
finish the rectification and improvement by the end of 2001, and shall report the results of the rectification and improvement to
the State Economic and Trade Commission, the Ministry of Foreign Trade and Economic Cooperation and the State Administration for
Industry and Commerce for examination. The enterprises that fail to finish the rectification and improvement upon the expiration
of the time limit and that fail to meet the requirements of rectification and improvement after examination shall be ordered to suspend
their business for rectification. Those still failing to meet the requirements of the rectification and improvement after suspension
of business for rectification shall be given a time limit within which they shall make the registration of cancellation, or even
the business licenses of them shall be revoked.

The Chongqing Jiangtian International Business Square Co., Ltd. that has been brought into the category needing cancellation (revocation)
in No.98 Document while still having not been cancelled (revoked) shall be cancelled (revoked) according to the provisions. With
respect to the Chengdu Carrefour Chain Supermarket Co., Ltd. and the Shanghai Longhua Happy Daily Shopping Co., Ltd. established
upon approval without authorization after the promulgation of the Notice on Immediately Stopping the Examination and Approval without
Authorization and the Establishment in Disguised Form of Commercial Enterprise with Foreign Investment (GuoJingMaoWaiJing [2000]
No.1072) by the State Economic and Trade Commission, the Ministry of Foreign Trade and Economic Cooperation and the former State
Administration for Industry and Commerce on November 13, 2000, the foreign parties shall transfer their stock rights and withdraw
from the operation. Every place shall fulfill the aforesaid measures by the end of 2001, and shall report the results to the State
Economic and Trade Commission, the Ministry of Foreign Trade and Economic Cooperation and the State Administration for Industry and
Commerce for archivist purpose.

With respet to the the 65 enterprises that have changed from foreign-funded to domestic-funded, or have no longer run commercial business,
or have been cancelled, every place shall conduct further check-up and implementation, and shall, by the end of 2001, report the
results to the State Economic and Trade Commission, the Ministry of Foreign Trade and Economic Cooperation and the State Administration
of Industry and Commerce for archivist purpose.

The 32 enterprises that have been brought into the category of approval in No.98 Document and the enterprises that meet the requirements
of rectification and improvement after examination according to article 1 of this Notice shall be included in the pilot units step
by step. Among which, the enterprises that are set up in the pilot cities, that have relatively advanced marketing skills and have
relatively good performance with respect to the purchase of Chinese products by the foreign parties may be changed to pilot enterprises
after being reported and approved according to the provisions of the Measures for Pilot Units. At the present, the enterprises set
up in the non-pilot cities shall not be changed to pilot enterprises before there are new provisions promulgated, and the supervision
and control over them shall be strengthened according to the provisions of No.98 Document, namely they “shall not enjoy the power
of management over import and export businesses, shall not run wholesale business, shall not expand the business scope and construction
scale, shall not establish branches or extend the cooperation period, and shall not enjoy the policies of tax reduction and exemption
of imported equipment for self use and raw materials” (hereinafter referred to as “5 shall-nots”). If these enterprises establish
branches in the pilot cities in the western areas, they may be changed to pilot enterprises after being approved according to the
provisions of the Measures for Pilot Units.

The enterprises established with the investment of the Carrefour Corporation of France shall be dealt with according to the Notice
Concerning the Opinions on the Disposition of Carrefour Corporation of France Engaged in Commercial Businesses in Violation of Rules
of Our Country (GuoJingMaoWaiJing [2001] No.354) of the State Economic and Trade Commission, the Ministry of Foreign Trade and Economic
Cooperation and the former State Administration of Industry and Commerce.

With respect to the non-pilot commercial enterprises with foreign investment that haven’t been reported yet, every place shall make
up the report within 1 month after the distribution of this Notice. Those that haven’t been reported shall, once found out, be cancelled
or their business licenses be revoked by the registration departments.

As the Danis General Store Co., Ltd., ZhengZhou, Henan Province, in violation of the Measures for Pilot Units, established branches
without authorization, its qualification of pilot enterprise shall be suspended. The Economic and Trade Committee, the Department
of Foreign Trade and Economic Cooperation and the Administration of Henan Province shall rectify that enterprise and, as soon as
possible, report the results of rectification to the State Economic and Trade Commission, the Ministry of Foreign Trade and Economic
Cooperation and the State Administration for Industry and Commerce for examination. And it shall be supervised and controlled according
to the “5 shall-nots” provisions of No.98 Document before it is rectified to be qualified.

From now on, the establishment of commercial enterprises with foreign investment and the branches thereof shall be reported to the
State Economic and Trade Commission and the Ministry of Foreign Trade and Economic Cooperation for approval, and shall be registered
at the State Administration for Industry and Commerce or the local administrations for industry and commerce authorized by the State
Administration for Industry and Commerce. At the same time, every place shall not establish commercial enterprises with foreign investment
in various disguised forms. Such cases shall be dealt with seriously once found out, and the relevant personnel in charge shall be
investigated for administrative responsibilities.

Every place shall take the check-up and rectification of non-pilot commercial enterprises with foreign invetment as an important work
of the rectification of market order, and lose no time in carrying it out according to the new situation that our country is going
to join the WTO soon. And every place shall learn lessons from mistakes, strictly execute the policies and regulations of the State
on the use of foreign investment in commercial business, regulate the acts of foreign businessmen investing in commercial business,
execute every order without fail, and ensure the healthy and orderly progress of the utilization of foreign investment in commercial
business.

Attachment:

1.List of 216 Non-pilot Commercial Enterprises with Foreign Investment Needing Rectification and Improvement(omitted)

2.List of 65 Non-pilot Commercial Enterprises with Foreign Investment that have changed from Foreign-funded to Domestic-Funded, have
no longer Run Commercial Business or have been Cancelled(omitted)

3.List of 32 Non-pilot Commercial Enterprises with Foreign Investment Brought into the Category of Approval in No.98 Document(omitted)

The State Economic and Trade Commission, the Ministry of Foreign Trade and Economic Cooperation, the State Administration
for Industry and Commerce
2001-08-06

CIRCULAR OF THE MINISTRY OF FINANCE, THE STATE ADMINISTRATION OF TAXATION CONCERNING ADJUSTING THE POLICIES ON BUSINESS TAX OF ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN FINANCIAL ENTERPRISES

The Ministry of Finance, the State Administration of Taxation

Circular of the Ministry of Finance, the State Administration of Taxation Concerning Adjusting the Policies on Business Tax of Enterprises
with Foreign Investment and Foreign Financial Enterprises

CaiShui [2001] No.74

April 25, 2001

Finance departments (bureaus), local taxation bureaus, state taxation bureaus of Guangdong Province, Fujian Province, Hainan Province,
Shanghai, and Jiangsu Province:

With a view to balancing the taxation among financial enterprises and to promoting fair competition, and upon the approval of the
State Council, the business tax rate prescribed by the state shall be uniformly implemented with respect to all the financial enterprises
with foreign investment and foreign financial enterprises newly set up within the economic zones (including the Pudong New Area of
Shanghai and the Suzhou Industrial Park) from May 1, 2001. The preferential policies on business tax prescribed in Article 3 of
the Circular of the State Council Concerning Relevant Issues on Adjusting Tax Policies of the Finance and Insurance Industries [GuoFa
[1997] No.5] shall be stopped from implementation.

With regard to the financial enterprises with foreign investment and foreign financial enterprises that have been registered and established
before this Circular is promulgated, and are enjoying the policies on business tax exemption mentioned above, where the former term
of implementation of the tax exemption policies hasn’t expired, the policies shall be implemented continuously till the expiration.

The Ministry of Finance, the State Administration of Taxation
2001-04-25

STANDARD SPOKEN AND WRITTEN CHINESE LANGUAGE LAW

Law of the People’s Republic of China on the Standard Spoken and Written Chinese Language



	(Adopted at the 18th Meeting of Standing Committee of the Ninth National People’s Congress on October 31, 2000 and promulgated by Order No. 37 of the President of the People’s Republic of China on October 31, 2000) Contents Chapter I General Provisions Chapter II Use of the Standard Spoken and Written Chinese Language Chapter III Administration and Supervision Chapter IV Supplementary Provisions Chapter I General Provisions Article 1 This Law is enacted in accordance with the Constitution for the purpose of promoting the normalization and standardization of the standard spoken and written Chinese language and its sound development, making it play a better role in public activities, and promoting economic and cultural exchange among all the Chinese nationalities and regions. Article 2 For purposes of this Law, the standard spoken and written Chinese language means Putonghua (a common speech with pronunciation based on the Beijing dialect) and the standardized Chinese characters. Article 3 The State popularizes Putonghua and the standardized Chinese characters. Article 4 All citizens shall have the right to learn and use the standard spoken and written Chinese language. The State provides citizens with the conditions for learning and using the standard spoken and written Chinese language. Local people’s governments at various levels and the relevant departments under them shall take measures to popularize Putonghua and the standardized Chinese characters. Article 5 The standard spoken and written Chinese language shall be used in such a way as to be conducive to the upholding of state sovereignty and national dignity, to unification of the country and unity of the nationalities, and to socialist material progress and ethical progress. Article 6 The State promulgates standard norms of the spoken and written Chinese language, administers its use in the community, supports the teaching of and scientific research in the language in order to promote its normalization, enrichment and development. Article 7 The State rewards the organizations and individuals that have made outstanding contribution in the field the standard spoken and written Chinese language. Article 8 All the nationalities shall have the freedom to use and develop their own spoken and written languages. The spoken and written languages of the ethnic peoples shall be used in accordance with the relevant provisions of the Constitution, the Law on Regional National Autonomy and other laws. Chapter II Use of the Standard Spoken and Written Chinese Language Article 9 Putonghua and the standardized Chinese characters shall be used by State organs as the official language, except where otherwise provided for in laws. Article 10 Putonghua and the standardized Chinese characters shall be used as the basic language in education and teaching in schools and other institutions of education, except where otherwise provided for in laws. Putonghua and the standardized Chinese characters shall be taught in schools and other institutions of education by means of the Chinese course. The Chinese textbooks used shall be in conformity with the norms of the standard spoken and written Chinese language. Article 11 Publications in Chinese shall be in conformity with the norms of the standard spoken and written Chinese language. Where foreign languages need to be used in publications in Chinese, necessary explanatory notes in standard Chinese shall be applied. Article 12 Putonghua shall be used by the broadcasting and TV stations as the basic broadcasting language. Where foreign languages need to be used as the broadcasting languages, the matter shall be subject to approval by the broadcasting and television administration under the State Council. Article 13 The standardized Chinese characters shall be used as the basic characters in the service trade. Where both a foreign language and the Chinese language are used in signboards, advertisements, bulletins, signs, etc., as is needed by the trade, the standardized Chinese characters shall be used as far as the Chinese Language is concerned. People working in the service trade are encouraged to use Putonghua when providing services. Article 14 The standard spoken and written Chinese language shall be used as the basic spoken and written language in the following circumstances: (1) spoken and written language for broadcasting, films and TV programs; (2) written language for the facilities in public places; (3) written language in signboards and advertisements; (4) names of enterprises and other institutions; and (5) packaging and specifications of commodities marketed in the country. Article 15 The standard spoken and written Chinese language used in information processing and information technology products shall be in conformity with the norms of the State. Article 16 Where the relevant provisions of this Chapter are concerned, local dialects may be used under the following circumstances: (1) when State functionaries really need to use them in the performance of official duties; (2) where they are used in broadcasting with the approval of the broadcasting and television administration under the State Council or of the broadcasting and television department at the provincial level; (3) where they are needed in traditional operas, films and TV programs and other forms of art; and (4) where their use is really required in the publishing, teaching and research. Article 17 Where by the relevant provisions of this Chapter are concerned, the original complex or the variant forms of Chinese characters may be retained or used under the following circumstances: (1) in cultural relics and historic sites; (2) the variant forms used in surnames; (3) in works of art such as calligraphy and seal cutting; (4) handwritten inscriptions and signboards; (5) where their use is required in the publishing, teaching and research; and (6) other special circumstances where their use is approved by the relevant departments under the State Council. Article 18 The “Scheme for the Chinese Phonetic Alphabet” shall be used as the tool of transliteration and phonetic notation for the standard spoken and written Chinese language. The “Scheme for the Chinese Phonetic Alphabet” is the unified norm of the Roman letters for transliterating the names of Chinese people and places as well as Chinese documents and is used in the realms where it is inconvenient to use the Chinese characters or where the Chinese characters cannot be used. Chinese phonetic alphabets shall be used in primary education. Article 19 All staff members who need to use Putonghua as their working language shall have the ability to speak Putonghua. The Putonghua level of those who use Putonghua as their working language, such as broadcasters, program hosts and hostesses, actors and actresses of films, TV series and plays, teachers and State functionaries shall reach the respective standards set by the State; those who have not yet reached such standards shall receive different training, as the case may be. Article 20 Putonghua and the standardized Chinese characters shall be taught in classes for foreigners who are learning Chinese. Chapter III Administration and Supervision Article 21 The department in charge of the work related to spoken and written language under the State Council shall be responsible for planning, guiding, administering and supervising the work related to the standard spoken and written Chinese language. The departments concerned under the State Council shall administer the use of the standard spoken and written Chinese language in their own departments. Article 22 Local departments in charge of the work related to spoken and written language and other departments concerned shall administer and supervise the use of the standard spoken and written Chinese language within their own administrative areas. Article 23 The administrative departments for industry and commerce under the local people’s governments at or above the county level shall administer and supervise the use of spoken and written language in the names of enterprises and commodities as well as in advertisements. Article 24 The department in charge of the work related to spoken and written language under the State Council shall issue standards for the test of Putonghua at different grades. Article 25 The department in charge of the work related to spoken and written language under the State Council or other departments concerned shall make arrangements for the examination of the translation of the proper nouns like the names of foreigners and foreign places and the scientific and technical terms into the standard spoken and written Chinese language. Article 26 Any citizen may make criticism and put forward suggestions where the use of spoken and written language is at variance with the norms of the standard spoken and written Chinese language and is in violation of the relevant provisions in Chapter II of this Law. Where persons mentioned in the second paragraph of Article 19 of this Law use the language in violation of the relevant provisions of Chapter II of this Law, the units concerned shall, by way of education, criticize the persons who are directly responsible; anyone who refuses to put it right shall be handled by the units concerned. Where the characters used in the facilities and signboards in public places of cities and in advertisements are in violation of the relevant provisions of Chapter II of this Law, the administrative departments concerned shall give orders for them to be corrected; anyone who refuses correct them shall be given a disciplinary warning and be urged to put them right within a time limit. Article 27 Anyone who, in violation of this Law, interferes with other persons’ learning and using of the standard spoken and written Chinese language shall be ordered by the relevant administrative departments to put it right within a time limit and be given a disciplinary warning. Chapter IV Supplementary Provisions Article 28 This Law shall go into effect as of January 1, 2001.

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON REDUCING THE SALES TAX RATE OF FINANCE AND INSURANCE

The Ministry of Finance, the State Administration of Taxation

Circular of the Ministry of Finance and the State Administration of Taxation on Reducing the Sales Tax Rate of Finance and Insurance

CaiShui [2001] No.21

March 7, 2001

The state and local taxation bureaus of various provinces, autonomous regions, municipalities directly under the Central Government
and municipalities separately listed on the State plan:

Ratified by the State Council, the issue on adjusting the sales tax rate of finance and insurance is notified as follows:

The sales tax rate of finance and insurance will be reduced 1 per cent each year and it takes three years to reduce the rate from
8% to5%, which means the rate is 7% from January 1, 2001 to December 31, 2001, the rate is 6% from January 1, 2002 to December 31,
2002, and 5% from January 1, 2003 to December 31, 2003. The reduced revenue of sales tax resulting from the reduced rate of it should
be central fiscal revenue levied by the taxation authorities directly subordinate to the regional state taxation bureaus.

The Ministry of Finance, the State Administration of Taxation
2001-03-07

RULES OF THE PEOPLE’S REPUBLIC OF CHINA ON REGISTRATION OF TECHNOLOGY IMPORT AND EXPORT CONTRACTS

The Ministry of Foreign Trade and Economic Cooperation

Order of the Ministry of Foreign Economic Relations and Trade of the People’s Republic of China

No.17

In accordance with the Regulations of the People’s Republic of China on Administration of Import and Export of Technologies, the Rules
of the People’s Republic of China on Registration of Technology Import and Export Contracts have been approved by the 9th regular
session of the Minister’s Meeting in 2001 and are hereby published. These Rules shall be implemented from January 1, 2002.

Shi Guangsheng, Minister of MOFTEC

December 30, 2001

Rules of the People’s Republic of China on Registration of Technology Import and Export Contracts

Article 1

These Rules are formulated in accordance with the Regulations of the People’s Republic of China on Administration of Import and Export
of Technologies in order to standardize the administration of contracts of import and export of technologies that can be feely imported
or exported, to establish the information system for technology import and export, and to promote technology import and export.

Technology import contracts signed as appendixes to joint venture contracts or to articles of association or as part of equity or
share of capital at the establishment of Sino-foreign equity joint ventures, Sino-foreign contractual joint ventures or wholly foreign-owned
enterprises are also subject to relevant laws and regulations governing foreign-invested enterprises.

Article 2

Technology import and export contracts include contracts of assignment of patent rights or rights to apply for patents, contracts
of licensing of rights to implement patents, contracts of licensing the use of technical know-how, contracts of technical service
and other contracts concerning technology import and export.

Article 3

On-line registration should be made for each contract of import or export of technology which can be imported or exported freely.
The competent authorities of foreign trade and economic cooperation (hereinafter as “the Competent Authorities”) are in charge of
the administration of registration of technology import and export contracts.

Contracts of import or export of technology which can be imported or exported freely shall enter into force upon their execution in
accordance with law.

Article 4

MOFTEC is in charge of the administration of registration of technology import contracts for key projects.

Key projects refer to:

(1)

Projects financed or partly financed by State fiscal budget, loan granted by foreign governments or international financial institutions;

(2)

Projects approved by the State Council.

Upon execution of technology import contracts for key projects, the importer shall make registration on the website of China International
E-Commerce Network (https:// info.ec.com.cn), and submit to MOFTEC for purpose of registration the application for registration, copies
of the contracts and documents evidencing the legal status of the contracting parties. MOFTEC shall check the contents of the contracts
and issue the Registration Certificates for Technology Import Contracts within three (3) working days.

Article 5

The competent authorities of foreign trade and economic cooperation of provinces, autonomous regions, cities under direct control
of the central government and cities under special economic planning (hereinafter as “the Local Competent Authorities”) are in charge
of the administration of registration of technology import and export contracts for non-key projects. Technology import and export
contracts signed by enterprises controlled by the central government shall also registered at the Local Competent Authorities at
the location of the enterprises concerned.

The Local Competent Authorities may also authorize the Competent Authorities at a lower level to handle the registration of technology
import and export contracts.

Upon execution of technology import and export contracts for non-key projects, the importer or exporter shall make registration on
the website of China International E-Commerce Network, and submit to the Local Competent Authorities for purpose of registration
the application for registration, copies of the contracts and documents evidencing the legal status of the contracting parties. The
Local Competent Authorities or the authorized Competent Authorities at a lower level shall check the contents of the contracts and
issue the Registration Certificates for Technology Import Contracts or the Registration Certificates for Technology Export Contracts
within three (3) working days.

Article 6

In case the application documents are not in conformity with Article 18 or 40 of the Regulations of the P.R. China on Administration
of Import and Export of Technologies or the on-line registration is not in conformity with the content of the contracts, the Competent
Authorities shall notify the importer or export to revise or complete the documents. The Competent Authorities shall check the contents
of the contracts and issue the Registration Certificates for Technology Import Contracts or the Registration Certificates for Technology
Export Contracts within three (3) working days upon receiving the revised or completed documents.

Article 7

The following items of the technology import and export contracts shall be registered:

(1)

Code of the contracts;

(2)

post_title of the contracts;

(3)

Suppliers of the technologies;

(4)

Recipients of the technologies;

(5)

Users of the technologies;

(6)

Main content of the technologies;

(7)

The contractual value;

(8)

Mode of payment;

(9)

Mode of foreign exchange collection;

(10)

Term of credit.

Article 8

A standard code shall be given to each technology import and export contract:

The code shall have 17 digits:

The first nine digits are fixed: the first and the second digits being the last two digits of the year in which the contract is executed;
the third and four being the code of importing or exporting countries; the fifth and sixth being the code of area where the importing
or exporting enterprise is located; the seventh indicating import or export (Y representing import and E representing export); the
eighth and ninth being the code of the importing or exporting enterprise; and the last eight digits can be defined by the enterprise.

For example: 01USBJEO1CNTIC001

Article 9

In case revision is made to the registered items of the technology import and export contracts as provided in Article 7 of these
Rules, the importer or exporter is required to make new registration for the changes.

Article 10

Suspension for application or early termination of registered technology import and export contracts should be recorded at the Competent
Authorities.

Article 11

These Rules shall enter into force on January 1, 2002.

The Ministry of Foreign Trade and Economic Cooperation
2001-12-30

MEASURES FOR THE ADMINISTRATION OF EXPORT COMMODITIES QUOTAS

The Ministry of Foreign Trade and Economic Cooperation

Order of the Ministry of Foreign Economic Relations and Trade of the People’s Republic of China

No.12

In accordance with the Law of the People’s Republic of China on Foreign Trade and the Regulations of the People’s Republic of China
on the Administration of Goods Import and Export, the Measures for the Administration of Export Commodities Quotas has been approved
after discussion at the 9th ministerial meeting of the Ministry of Foreign Trade and Economic Cooperation of 2001 and is hereby promulgated,
and shall come into force on January 1, 2002.

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

December 20, 2001

Measures for the Administration of Export Commodities Quotas

Chapter I General Provisions

Article 1

In order to standardize the administration of export commodities quotas, to guarantee that the administration of export commodities
quotas consist with the principles of efficiency, justness, openness and transparency and to safeguard the normal exports of commodities
subject to quota administration, these Measures have been formulated according to the relevant provisions of the Law of the People’s
Republic of China on Foreign Trade (hereinafter referred to as the Foreign Trade Law) and the Regulations of the People’s Republic
of China on the Administration of Goods Import and Export (hereinafter referred to as the Regulations on Goods Import and Export).

Article 2

The Ministry of Foreign Trade and Economic Cooperation (hereinafter referred to as the MOFTEC) shall be responsible for the administration
of export commodities quotas of the whole country. The commissions (departments, bureaus) of foreign trade and economic cooperation
of the provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on
the State plan (hereinafter referred to as the local administrative authorities of foreign trade and economic cooperation) shall,
based on the authorization of the MOFTEC, be responsible for the administration of export commodities quotas within their respective
area.

Article 3

According to the provisions of Article 35 and Article 36 of the Regulations on Goods Import and Export, the MOFTEC applies export
quota administration with respect to the commodities restricted from export by the State.

Article 4

These Measures shall be inapplicable to the following commodities subject to export quota administration:

Export commodities subject to quota bidding or paid use administration;

Export commodities subject to passive quota administration according to the provisions of multilateral or lateral agreements;

Commodities listed in the appendixes of these Measures.

Article 5

These Measures shall be applicable to the exports of the commodities subject to quota administration in various trade forms.

Article 6

The valid term of export commodities quotas shall expire on December 31 of their current year.

Chapter II The list of export commodities subject to quota administration

Article 7

The list of export commodities subject to quota administration shall be formulated, adjusted and promulgated by the MOFTEC.

Article 8

The list of export commodities subject to quota administration shall be promulgated at least 21 days before the implementation; and
in case of emergency, shall be promulgated not later than the day of implementation.

Chapter III Total Amount of Export Quotas

Article 9

The total amount of export commodities quotas shall be determined and promulgated by the MOFTEC.

Article 10

When determining the total amount of export commodities quotas, the MOFTEC shall take the following factors into consideration:

needs of guaranteeing the safety of national economy;

needs of protecting the limited domestic resources;

development planning, objectives and policies of the State on the relevant industries;

demands of the international and domestic markets, and the production and sales status.

Article 11

The MOFTEC shall promulgate the total amount of export quotas of the next year before October 31 of each year.

Article 12

The MOFTEC may adjust the total amount of export commodities quota according to the actual needs, but the relevant adjustments shall
be finished and promulgated no later than September 30 of that current year.

Chapter IV Application for Export Quotas

Article 13

The export enterprises that have the license or qualification for import and export management and have no violation of laws and rules
in economic activities in the last 3 years may apply for the export commodities quotas.

Article 14

The enterprises under local administration shall file the applications for quotas to the local administrative authorities of foreign
trade and economic cooperation; the local administrative authorities of foreign trade and economic cooperation shall, after examining
and gathering the applications of the enterprises of their respective area, report to the MOFTEC according to the requirements of
the MOFTEC. The enterprises under central administration shall directly apply to the MOFTEC for the export commodities quotas.

Article 15

The export enterprises shall file the quota applications in formal written form, and shall submit the relevant documents and materials
according to the requirements.

Article 16

The MOFTEC shall accept the applications for the export commodities quotas of the next year presented by the local administrative
authorities of foreign trade and economic cooperation and the enterprises under central administration from November 1 to 15 each
year, and shall not accept the applications filed at other time.

Chapter V Distribution, Adjustment and Management of Export Quotas

Article 17

The MOFTEC shall distribute the export commodities quotas to the local administrative authorities of foreign trade and economic cooperation
and the enterprises under central administration; and the local administrative authorities of foreign trade and economic cooperation
and the enterprises under central administration shall, within the amount of quotas of their respective area and according to these
Measures and the relevant provisions of the State on the administration of goods export, distribute the quotas to the enterprises
of their respective area that have filed applications.

Article 18

The MOFTEC shall distribute the export quotas of the next year to the local administrative authorities of foreign trade and economic
cooperation and the enterprises under central administration before December 15 of each year; and the administrative authorities
of foreign trade and economic cooperation shall distribute the quotas handed down by the MOFTEC to the applying enterprises of their
respective area. If there exist precarious factors in the international market, the MOFTEC may distribute the export quotas of the
next year in two times. In the first distribution, no less than 70% of the total amount of quotas shall be distributed before December
15 of each year; and the rest part shall be distributed no later than June 30 of the current year.

Article 19

When distributing the quotas, the MOFTEC and the local administrative authorities of foreign trade and economic cooperation shall
take into full consideration the export performance of that commodity, the utilization rate of quotas, the business management capacity,
the production scale and the resources status, etc. of the applying enterprise or area in the last 3 years.

Article 20

Under any of the following circumstances, the MOFTEC may increase or reduce the quotas that have already been distributed to the local
administrative authorities of foreign trade and economic cooperation or the enterprises under central administration:

Major changes take place in the international market;

Major changes of domestic resources take place;

The quota use paces between the areas or the enterprises under central administration are obviously unbalanced.

Article 21

The local administrative authorities of foreign trade and economic cooperation shall, in line with the principle of increase of utilization
rate of quotas, inspect the enforcement of export commodities quotas of their respective area regularly, and shall take back the
distributed quotas and redistribute them with respect to those of which the utilization rate fail to meet the prescribed requirements.

Article 22

The local enterprises shall return the annual quotas that they fail to use to the local administrative authorities of foreign trade
and economic cooperation in time, and the local administrative authorities of foreign trade and economic cooperation may redistribute
the quotas within their respective area or hand them in to the MOFTEC in the current year.

The enterprises under central administration shall directly return the annual quotas they fail to use to the MOFTEC before October
31 of the current year.

Article 23

If the local administrative authorities of foreign trade and economic cooperation or the enterprises under central administration
fail to return the quotas according to the provisions of Article 22 of these Measures, and fail to implement all the quotas of their
respective enterprise or area before the end of the current year, the MOFTEC may deduct their corresponding quotas in the next year.

Article 24

The MOFTEC and the local administrative authorities of foreign trade and economic cooperation shall notify the relevant export license
issuing bodies about the quota distribution and the adjustment results at the same time; the distribution results and the adjustment
plans of the local administrative authorities of foreign trade and economic cooperation shall be reported to the MOFTEC for record
in 30 days from the day on which the decision is promulgated.

Article 25

The export enterprises shall, based on the quota certifications issued by the MOFTEC or the local administrative authorities of foreign
trade and economic cooperation and according to the provisions on the administration of export license, apply to the license issuing
bodies authorized by the MOFTEC for the export quota licenses, and go through the procedures for examination and release at the customs
based on the export quota licenses.

Chapter VI Legal Responsibilities

Article 26

Where any export operator exports export commodities subject to quota administration beyond the scope approved or licensed or without
approval by the means of falsely reporting the commodity name or reporting less export amount, etc., he shall be punished according
to the provisions of Article 65 of the Regulations on Goods Import and Export, and the MOFTEC may cancel the export commodities
quotas he has already obtained.

Article 27

Where anyone forges, alters or trades the export commodities quota certificates, documents of approval or export quota licenses, he
shall be punished according to the provisions of Article 66 of the Regulations on Goods Import and Export, and the MOFTEC may cancel
the export commodities quotas he has already obtained.

Article 28

Where any export operator obtains the export commodities quotas, documents of approval or export quota licenses through deception
or other improper ways, he shall be punished according to the provisions of Article 67 of the Regulations on Goods Import and Export,
and the MOFTEC may cancel the export commodities quotas he has already obtained.

Article 29

Where the local administrative authorities of foreign trade and economic cooperation distribute the quotas in violation of the provisions
of these Measures or the provisions of the State on the administration of state-run trade or designated management, they shall be
punished according to the relevant provisions of the Administrative Penalties Law, and the MOFTEC may notify them to make corrections
and give them warnings.

Article 30

Where anyone has objections against the decisions on quota distribution or decisions on penalties made by the MOFTEC, he may either
apply for administrative review according to the Administrative Review Law, or bring a lawsuit before the people’s court.

Chapter VII Supplementary Provisions

Article 31

The export commodities quotas of enterprises with foreign investment shall be handled according to the relevant provisions.

Article 32

The power to interpret these Measures shall remain with the MOFTEC

Article 33

These Measures shall enter into force on January 1, 2002. The Interim Measures of the Ministry of Foreign Trade and Economic Cooperation
for Reporting, Distributing and Enforcing Export Commodities Quotas promulgated by the MOFTEC on October 6, 1998, and the Rules for
the Implementation of Interim Measures for Reporting, Distributing and Enforcing Export Commodities Quotas promulgated by the MOFTEC
on January 2, 1999 shall be nullified simultaneously.

The Ministry of Foreign Trade and Economic Cooperation
2001-12-20

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION (SAT) AND THE STATE ADMINISTRATION OF FOREIGN EXCHANGE (SAFE) ON STRENGTHENING ADMINISTRATION OF TAX COLLECTION ON SHIPPING INCOME OF FOREIGN COMPANIES AND ADMINISTRATION OF EXTERNAL PAYMENTS IN THE INTERNATIONAL OCEAN SHIPPING INDUSTRY

The State Administration of Taxation, the State Administration of Foreign Exchange

Circular of the State Administration of Taxation (SAT) and the State Administration of Foreign Exchange (SAFE) on Strengthening Administration
of Tax Collection on Shipping Income of Foreign Companies and Administration of External Payments in the International Ocean Shipping
Industry

GuoShuiFa [2001] No.139

December 4, 2001

SAT bureaus, local taxation authorities in all provinces, autonomous regions, municipalities directly under the Central Government,
and municipalities separately listed on the State plan; SAFE branches in all provinces, autonomous regions and municipalities directly
under the central government, exchange administration offices, and SAFE branches in the cities of Shenzhen, Dalian, Qingdao, Xiamen
and Ningbo; and all designated foreign exchange banks:

A circular is hereby issued as follows in accordance with the country’s tax laws and regulations and relevant provisions on foreign
exchange administration with a view to implementing the Procedures Concerning Tax Collection on Shipping Income of Foreign Companies
(CaiShuiZi [1996] No. 087) (hereinafter referred to as the Procedures) approved by the State Council and further strengthening and
improving administration of tax collection on shipping income of foreign companies and administration of external payments in the
international ocean shipping sector:

Withholding agents of tax payables as mentioned in Article 3 of the Procedures refer to the organizations or individuals (hereinafter
referred to as withholding agents) that, according to relevant provisions of the State, are responsible for directly or indirectly
paying freight charges to taxpayers as mentioned in Article 3 of the Procedures (hereinafter referred to as taxpayers), including
solely foreign-funded shipping companies, international shipping agencies, international freight agencies, and other organizations
or individuals that make external payments of international ocean shipping charges.

Withholding agents shall perform the duties of withholding and collecting tax payables from taxpayers and paying the taxes on their
behalf according to relevant provisions of the country’s laws and regulations.

Prior to an external payment of freight charges, a withholding agent shall always withhold tax payables directly from the freight
charges payable to a taxpayer by taking as taxable income the full amount of freight charges for external payment and calculating
tax payables at the “comprehensive computation and collection rate” as provided by Article 4 of the Procedures.

Meanwhile, a Statement of the SAT on Withholding and Paying on Agency of Income Tax on Shipping Income of Foreign Companies shall
be submitted to the local bureau of the SAT, and a Statement on Withholding and Paying on Agency of Turnover Tax on Shipping Income
of Foreign Companies shall be submitted to the local taxation authorities in accordance with relevant provisions. The statement required
in Article 9 of the Procedures may not be submitted any more if there is no special requirement from the local taxation authorities.

When a withholding agent pays freight charges to a taxpayer under export account in international trade, it may, after authenticity
verification by the designated foreign exchange bank, make the external payment directly from its relevant foreign exchange account
by presenting the contract or agreement, and the invoice and bill of lading (or duplicate) issued by the shipping company outside
the territory, and submit the certificates issued by the local taxation authorities that acknowledge full payments of enterprise
income tax and turnover tax, or alternatively, the Certification Formula of the SAT of the People’s Republic of China for Exemption
of Enterprise Income Tax on Shipping Income of Foreign Companies (hereinafter referred to as Certification Formula for Exemption
of Income Tax) and the Certification Formula of the SAT for Exemption of Turnover Tax on Shipping Income of Foreign Companies (hereinafter
referred to as Certification Formula for Exemption of Turnover Tax). No external payment in foreign exchange shall be made without
the necessary taxation certificates or tax exemption certificates.

Taxation certificates and tax exemption certifications may not be required for external payment of ocean shipping charges under import
account in international trade.

If a taxpayer is to enjoy tax reduction or exemption treatment according to the treaties on avoiding double tax collection, treaties
on mutual exemption concerning international shipping income of ocean shipping enterprises, ocean shipping treaties and other related
agreements or exchanges of notes signed between China and other countries, he shall, either by himself or by authorizing his withholding
agent, report by filling out the Certification Formula for Exemption of Income Tax to the local bureau of the SAT and the Certification
Formula for Exemption of Turnover Tax to the local taxation authority.

The local taxation authority will issue to the taxpayer or his withholding agent the Certification Formula for Exemption of Income
Tax or the Certification Formula for Exemption of Turnover Tax after examining and certifying the credentials of the said taxpayer
issued by the taxation authority of the contracting party, or the legal person’s certification papers issued by the shipping authority
of the contracting party, or other valid certificates that are capable of proving the identification of the said taxpayer.

The Certification Formula is valid for three years starting from the day it is issued by the taxation authority. If the resident identity
of a taxpayer changes within three years or if the taxpayer seeks renewal of the tax exemption treatment upon expiry of the Certification
Formula after three years, a new application for the exemption shall be filed with the taxation authority.

Tax exemption treatment may not be enjoyed if due application fails to be filed or if related certification papers fail to be provided.
If a taxpayer fails to submit tax exemption certificates in time, he may pay due taxes first in line with relevant provisions and
seek reimbursement after all certificates are completed.

If a taxpayer collects freight charges directly from a payer outside the Chinese territory for transporting passengers, goods or mails
by vessel out of the territory from a Chinese port, he shall declare by himself for tax payment to the local bureau of the SAT and
local taxation authorities within the same jurisdiction where the port of departure belongs.

Upon knowledge of the above-mentioned freight payment terms, any organization or individual within the territory who handles related
business for such a taxpayer shall timely report to the local bureau of the SAT and local taxation authorities with a Statement on
Shipping Income of Foreign Companies Collected outside the Territory, and an account of the taxpayer’s shipping operations in China.

Penalties shall be imposed according to relevant provisions of tax laws and regulations should the taxpayer fail to declare for tax
payment in time, or should any organization or individual within the territory who is aware of the taxpayer’s behavior fail to report
to taxation authorities.

If a taxpayer fails to declare within one tax year the taxable amounts he has received, and in the meantime fails to apply for the
tax exemption treatment under agreement, the local bureau of the SAT and local taxation authorities shall timely report the relevant
circumstances of the said taxpayer level by level to the SAT.

Taxation authorities in all localities may pay withholding commissions to withholding agents according to relevant provisions of the
Circular of the SAT on Readjusting the Proportion of Commissions Drawn on Withheld Taxes by Foreign Shipping Agency Branch Companies
(GuoShuiHanFa [1990] No.380).

Starting from the date of issuance of this Circular, taxpayers who are eligible to enjoy tax exemption treatment according to relevant
provisions may either apply on their own for tax exemption certificates at the county- or above-level taxation authorities at the
location of ports, or alternatively, authorize their withholding agents to apply for the certificates at the county- or above-level
taxation authorities at the location of the withholding agents.

Anyone who violates the above-mentioned provisions shall be punished in accordance with the Law of the People’s Republic of China
on the Administration of Tax Collection and relevant regulations, as well as the relevant provisions of the State on foreign exchange
administration.

Taxation authorities of all localities, after granting shipping income tax exemption certificates to taxpayers, shall report all necessary
information of the taxpayers level by level to the SAT for record.

Based on what is reported by localities, the SAT will release, in collaboration with the SAFE, a non-periodical list of foreign companies
that enjoy tax exemption treatment.

Withholding agents may present duplicates of the tax exemption certificates to designated foreign exchange banks upon payment of freight
charges to taxpayers that are included in the tax exemption list.

This Circular shall enter into force as of May 1, 2002.

The State Administration of Taxation, the State Administration of Foreign Exchange
2001-12-04

REPLY LETTER OF THE GENERAL OFFICE OF THE MINISTRY OF LABOR AND SOCIAL SECURITY ON ISSUE CONCERNING MINIMAL WAGE

The General Office of the Ministry of Labor and Social Security

Reply Letter of the General Office of the Ministry of Labor and Social Security on Issue Concerning Minimal Wage

LaoSheTingHan [2001] No.241

November 5, 2001

Ministry of labor and social security of Henan province:

Ask for Instructions on Minimal Wage (YuLaoSheHan [2001] No.56) from your bureau has been received. After disquisition, the following
is the reply:

When the Regulation on Minimal Wage promulgated by our department and other documents concerning minimal wage were drafting, the system
of social security is on its beginning stage. As a result the social insurance fees paid by individuals have not been taken into
consideration, when Ministry promulgated regulation on the standard of minimal wage was decided. Up to now, this problem is not clarified
in State laws, regulations and other regulative documents formulated by our department.

With a view to insuring the basic living conditions of the employee by the local government, and insuring the smooth operation of
collecting fees of social insurance, social insurance fees paid by individuals shall be taken into account when the standard of minimal
wage is decided and adjusted.

The General Office of the Ministry of Labor and Social Security
2001-11-05

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2007

CIRCULAR OF THE MINISTRY OF FINANCE, THE STATE ADMINISTRATION OF TAXATION AND THE GENERAL ADMINISTRATION OF CUSTOMS ON PRINTING...

LETTER OF THE GENERAL OFFICE OF THE MINISTRY OF LABOR AND SOCIAL SECURITY CONCERNING ISSUES OF WHETHER ECONOMIC COMPENSATION...

CIRCULAR OF THE MINISTRY OF FINANCE OF THE PEOPLE’S REPUBLIC OF CHINA ON STOPPING THE COLLECTION OF PRICE SUBSIDY FROM THE EMPLOYEES OF THE CHINESE PARTIES TO ENTERPRISES WITH FOREIGN INVESTMENT

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION AND THE MINISTRY OF FINANCE ON PRINTING AND DISTRIBUTING THE DETAILED RULES FOR THE IMPLEMENTATION OF THE MEASURES FOR ADMINISTRATION OF INTERNATIONAL MARKET DEVELOPING FUNDS OF SMALL-AND MEDIUM-SIZED ENTERPRISES

CIRCULAR OF THE MINISTRY OF FINANCE, THE STATE ADMINISTRATION OF TAXATION CONCERNING ADJUSTING THE POLICIES ON BUSINESS TAX OF ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN FINANCIAL ENTERPRISES

STANDARD SPOKEN AND WRITTEN CHINESE LANGUAGE LAW

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON REDUCING THE SALES TAX RATE OF FINANCE AND INSURANCE

RULES OF THE PEOPLE’S REPUBLIC OF CHINA ON REGISTRATION OF TECHNOLOGY IMPORT AND EXPORT CONTRACTS

MEASURES FOR THE ADMINISTRATION OF EXPORT COMMODITIES QUOTAS

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION (SAT) AND THE STATE ADMINISTRATION OF FOREIGN EXCHANGE (SAFE) ON STRENGTHENING ADMINISTRATION OF TAX COLLECTION ON SHIPPING INCOME OF FOREIGN COMPANIES AND ADMINISTRATION OF EXTERNAL PAYMENTS IN THE INTERNATIONAL OCEAN SHIPPING INDUSTRY

REPLY LETTER OF THE GENERAL OFFICE OF THE MINISTRY OF LABOR AND SOCIAL SECURITY ON ISSUE CONCERNING MINIMAL WAGE

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7