MEASURES FOR THE ADMINISTRATION OF BANK CARD BUSINESS

Measures for the Administration of Bank Card Business

(People’s Bank of China January 27th, 1999)

Chapter I General Provisions

Article 1

In order to enhance the administration of bank card business, prevent the risks in bank card business and safeguard the legitimate
rights and interests of commercial banks, cardholders, specially engaged entities and other parties concerned, the present Measures
are constituted subject to the Law of the People’s Republic of China on the People’s Bank of China, the Law of the People’s Republic
of China on Commercial Banks, the Regulations of the People’s Republic of China on the Administration of Foreign Exchanges and the
related administrative laws and regulations.

Article 2

Bank card as referred to in the present Measures are the credit payment instruments issued by commercial banks (including postal
financial institutions, similarly hereafter) to the society, which have some or all such functions as consumption credit, transfer
and settlement and depositing and withdrawing cash, etc..

Without the approval of the People’s Bank of China, no commercial bank may issue any bank card.

Article 3

All the commercial banks, cardholders and merchants that handle the bank card business within the territory of the People’s Republic
of China and other parties concerned shall abide by the provisions of the present Measures.

Article 4

Commercial banks shall, on the basis of negotiation and mutual benefit, carry out information sharing, merchant sharing, machine
sharing and other types of combination in bank card business.

Chapter II Categorization and Definition

Article 5

Bank cards are divided into credit cards and debit cards.

Bank cards may be divided into Renminbi cards and foreign currency cards in light of the type of the currency; entity cards (commercial
card) and individual cards in light of the objective of issuance; and magnetic cards and integrated circuit (IC) cards in light of
the information carrier.

Article 6

Credit cards may be divided into credit cards and quasi-credit cards subject to whether it has deposited an imprest in the card-issuing
bank.

Credit card permits the cardholder to consume before payment within the credit limit granted by the card-issuing bank.

Quasi-credit card requires the cardholder to deposit a certain amount of imprest in the card-issuing bank in advance as provided for
by this bank, and permits the cardholder to overdraw, when the balance in the account of imprest is not sufficient to pay, within
the credit limit provided for by the card-issuing bank.

Article 7

Debit cards may be divided into cards for transferring accounts (including savings cards, similarly hereinafter), cards for special
purposes and stored-value cards. Overdrawing is not included in the function of the debit cards.

Article 8

The card for transferring accounts belongs to the debit card, which performs a utility of real-time deduction of accounts. Its functions
comprise transfer, settlement, depositing and withdrawing cash, and consumption.

Article 9

The card for special purpose means the debit card, which is used in certain designated location for any special purpose. Its functions
comprise transfer, settlement, depositing and withdrawing cash.

Special purpose means that it shall be used other than in the industries of general merchandise, catering, restaurant and entertainment.

Article 10

Stored-value card is the purse-style debit card which requires payment in advance, and the money of the cardholder is transferred
into this card by the card-issuing bank as required by the cardholder, and then when a transaction is made, the money is deducted
from the card.

Article 11

Co-branded/affinity card is an supplementary product of bank card issued by a commercial bank in cooperation with a profitable/non-profitable
institution, the category of the bank card it supplements must be a category that has the approval of the People’s Bank of China
and the issuance and operation of the said category of the bank card shall comply with the business regulations or administrative
measures accordingly.

The card-issuing bank and the co-branded entities shall promise a certain discount or special services for the cardholders when any
consumption using the cards occurs to any of the co-branded entities. If any cardholder obtains and uses the affinity card, it indicates
their support to the affinity entities.

Article 12

Integrated circuit (IC) card may be applied to a single category of bank card, and to a combined category of bank cards as well.

Chapter III Examination and Approval of Bank Card Business

Article 13

Any commercial bank that develops the bank card business shall meet the requirements as follows:

(1)

it shall have been opened for three years or more and have a sound foundation for handling retail business;

(2)

it shall comply with the indicators as issued by the People’s Bank of China for asset-liability ratio administration and surveillance
and it shall have a sound business performance;

(3)

it shall have set up a scientific and perfect internal control system for this business and have specific procedures for the examination
and approval of internal authorization;

(4)

it shall have qualified management and technical personnel and administrative department accordingly;

(5)

it shall have a safe and efficient computer processing system;

(6)

it shall have the qualification for developing the foreign exchange business and have the corresponding operational and administrative
expertise for the foreign exchange business in case of issuing any foreign currency card;

(7)

other requirements as provided for by the People’s Bank of China.

Article 14

A commercial bank that satisfies the aforesaid requirements may apply for developing the bank card business to the People’s Bank
of China and shall file the materials as follows:

(1)

an application report that demonstrating the necessity and feasibility and performing market forecasts;

(2)

articles of association or administrative measures for the bank card, draft card designs;

(3)

internal control system and risk prevention measures;

(4)

a testing report concerning system security and qualified technical standards as issued by the competent authorities of science and
technology of the People’s Bank of China;

(5)

other materials as required by the People’s Bank of China.

Article 15

The articles of association of any bank card of a card-issuing bank shall indicate items as follows:

(1)

the name, category, functions and purposes of the card;

(2)

the target for issuing the card, requirements and procedure of the application for the card;

(3)

the using scope of the card (including the limitations in using the card) and the using introduction;

(4)

the interest rate applicable to the account of the card, charging items and rates against the cardholder;

(5)

the rights and obligations of the card-issuing bank, the cardholder as well as other parties concerned;

(6)

other items as required by the People’s Bank of China.

Article 16

The limits of the administrative authority and procedures for the examination and approval of a bank card are as follows:

(1)

Where a commercial bank develops any kind of the bank card business, it shall separately constitute uniform articles of association
or business management measures under the provisions of the People’s Bank of China on enhancing internal control and the administration
of authorization and credit granting, and shall submit them to the headquarters of the People’s Bank of China for examination and
approval.

In case the headquarters of the commercial bank is not in Beijing, the said articles of association or business management measures
shall be firstly submitted to the local central sub-branch of the People’s Bank of China, after approval upon examination, and then
be transmitted to the headquarters of the People’s Bank of China for examination and approval.

(2)

Where a commercial bank has already engaged in the business of credit card or transfer card, it may apply for issuing co-branded/affinity
cards, cards for special purposes and stored-value cards to the People’s Bank of China; where a commercial bank has already engaged
in the Renminbi credit card business, it may apply to for issuing foreign currency credit cards the People’s Bank of China.

(3)

As regards a commercial bank that proposes to issue national affinity cards, IC cards or stored-value cards, it shall be submitted
to the headquarters of the People’s Bank of China for examination and approval.

(4)

In case any branch of a commercial bank develops the bank card business as approved by the headquarters of the People’s Bank of China,
it shall be submitted to the local branch of the People’s Bank of China for filing with the approval document of the People’s Bank
of China and the authorization document of its headquarters.

If a branch of a commercial bank proposes to issue cards for special purposes or co-branded cards that may only be used in certain
regions, it shall be submitted to the local central sub-branch of the People’s Bank of China for filing with the authorization document
of the headquarters of the commercial bank or the agreement concluded by both co-branded parties.

(5)

In case of any alteration of the name of any bank card or amendment of the articles of association on bank card by a commercial bank,
it shall be submitted for examination and approval to the People’s Bank of China.

Article 17

A foreign-funded financial institution that proposes to develop bank card acceptance business shall apply to the People’s Bank of
China for approval.

Bank card acceptance business refers to the domestic or foreign currency settlement service provided by a contractual bank for its
merchants.

Chapter IV Interest Calculation and Charging Rates

Article 18

Bank card interest calculation shall contain the calculation of the interests to be collected and the calculation of the interests
to be paid. The card-issuing bank shall examine and calculate both the said interests in light of the provisions of the Financial
Rules for Financial and Insurance Enterprises.

Article 19

With respect to the deposits in the accounts of quasi-credit cards and debit cards (excluding stored-value cards), interests shall
be calculated and paid by the card-issuing bank according to the deposit interest rate of the same term and same grade and the methods
for interest calculation as provided for by the People’s Bank of China.

The interests on the deposits in the accounts of credit cards and the currency value of the stored-value cards (including the electronic
purses of IC cards) may not be calculated and paid by any card-issuing bank.

Article 20

Where a credit cardholder has non-cash transactions, he may enjoy the favorable terms as follows:

(1)

Treatment of enjoying interest-free payment in a certain period. A period from the booking date of the bank to the date when payment
is due as provided for by the card-issuing bank shall be the interest-free period with the longest term of 60 days. The cardholder
may enjoy this treatment if he repays all the used funds of the bank before the date when payment is due and no interest may be paid
for any non-cash transaction.

(2)

Treatment of minimum payment. In case it is difficult for the cardholder to repay all the funds of the bank before the date when payment
is due, the minimum amount may be paid as provided for by the card-issuing bank.

Article 21

A credit cardholder may not enjoy the treatment of interest-free payment period when choosing to repay the minimum amount or using
the card in excess of the credit limit approved by the card-issuing bank, but shall pay overdraft interests on the unpaid amount
as calculated from the book date of the bank upon the stipulated interest rate.

A credit cardholder may not enjoy the treatment of interest-free payment period and the treatment of minimum payment when withdrawing
cash or overdrawing quasi-credit card, but the overdraft interests that are calculated from the book date of the bank upon the stipulated
interest rate shall be paid for the cash transaction or overdraft.

Article 22

In case a credit cardholder fails to repay the minimum payment or uses the credit card in excess of the credit limit, a fine for
delayed payment or charge fees for exceeding the credit limit shall be imposed by the card-issuing bank upon 5 percent of the unpaid
amount or the amount spent in excess of the credit limit.

Article 23

The overdraft of credit card shall be calculated and collected for compound interest on a monthly basis and the overdraft of quasi-credit
card shall be calculated and collected for simple interest on a monthly basis. The overdraft interest rate shall be 0.05 percent
of the daily interest rate and shall be consist with the adjustment of the daily interest of the People’s Bank of China.

Article 24

A commercial bank, when handling bank card acceptance business, shall collect settlement handling charges against the merchants under
the standards as follows:

(1)

the settlement handling charges may not be lower than 2 percent of the trading value for the hotel, catering, entertainment, tourism
or other related industries;

(2)

the settlement handling charges may not be lower than 1 percent of the trading value for any other industry.

Article 25

The settlement handling charges for a trans-bank transaction shall be distributed in light of the proportion as follows:

(1)

It is clearly that 90 percent of the settlement handling charges collected against the merchants shall be distributed to the card-issuing
bank, while 10 percent to the acceptance bank in a city which has not established an information exchange center;

The commercial banks may perform the trans-bank transaction by way of apportioning the machines, deputizing for each other, and charging
free mutually upon negotiations as well.

(2)

It is clearly that 80 percent of the settlement handling charges collected against the merchants shall be distributed to the card-issuing
bank, while 10 percent to the acceptance bank and 10 percent to the information exchange center in a city which has established an
information exchange center,.

Article 26

Where a cardholder performs trans-bank withdrawal at ATM, the cost thereof shall be accepted by the cardholder himself/herself, and
the charging rates shall be adopted as follows:

(1)

in case a cardholder performs any withdrawal within the city where the card is obtained, the fees thereof shall be no more than Renminbi
2 yuan;

(2)

in case a cardholder performs any withdrawal beyond the city where the card is obtained, the fees thereof shall be no less than Renminbi
8 yuan.

It is obvious that 70 percent of the commission charges obtained from a trans-bank withdrawal at ATM shall be distributed to the bank
that owns the ATM, while 30 percent to the information exchange center.

Article 27

Where a commercial bank develops bank card acceptance business outside the territory of China as an agency, it shall collect settlement
handling charges, which shall be no more than 4 percent of the trading value, against the merchants.

In case an agency agreement on bank card acceptance business is concluded by a bank within the territory of China and an institution
outside the territory of China, it is clearly that 37.5 percent of the commission charges paid by the merchants shall be distributed
to the bank within the territory of China, while 62.5% to the institution outside the territory of China.

Chapter V Account and Trade Management

Article 28

Where an individual applies for obtaining a bank card (excluding stored-value cards), he shall provide his valid identity certificate
as provided for by the public security department for the card-issuing bank, an inscribed account shall be opened for him upon the
qualification examination of the card-issuing bank.

Where an entity opens a basic deposit account in any financial institution that is within the territory of China, it shall apply for
obtaining an entity card on the basis of the license for opening an account issued by the People’s Bank of China upon examination;

A bank card and its account may be used exclusively by the cardholder as approved by the card-issuing bank and may not be leased or
lent.

Article 29

The funds in the account of a Renminbi entity card shall be deposited from the basic deposit account of the entity by transfer, no
cash may be deposited or withdrawn, and no revenue from merchandise sales may be deposited into the account of the entity card.

Article 30

The funds in the account of a foreign currency entity card shall be deposited from the foreign exchange account of the entity by
transfer, and no cash of foreign currency may be deposited or withdrawn within the territory of China. The foreign exchange account
of the entity shall meet the requirements as follows:

(1)

it shall be opened subject to the related provisions of the People’s Bank of China concerning the administration of foreign exchange
accounts within the territory of China;

(2)

the scope of revenue and expenditure thereof shall comprise payment content accordingly.

Article 31

The funds deposited in the account of the Renminbi card of an individual shall include the cash he holds, or the wage, legal personal
compensation for services and investment returns of the individual which are deposited by account transfer.

Article 32

The funds deposited in the account of the individual foreign currency card shall be cash of the foreign currency he/she holds or
the funds transferred from his/her foreign exchange account (including foreign banknote account). The transfer and deposit of such
account shall be handled pursuant to the Measures of the State Administration of Foreign Exchange for the Administration of Individual
Foreign Exchange.

As regards the withdrawal of the foreign currency cash through an individual foreign currency card within the territory of China,
it shall be handled under the individual foreign exchange control system of China.

Article 33

No settlement of foreign exchange may be made for a foreign currency card in principle within the territory of China except that
it is within the scope or the regions designated by the State Administration of Foreign Exchange.

Article 34

A cardholder may apply for canceling his account after paying off all the money for transactions, principal and interest of overdraft
and the related charges. The capital in a Renminbi entity account shall be transferred into the basic savings account of the entity,
the capital in a foreign currency entity card shall be transferred into the foreign exchange account of the entity accordingly when
canceling an account and no cash may be drawn.

Article 35

A Renminbi entity card may be used for the settlement of the funds for commodity transactions and labor service provision, but no
overdrawing may be performed; the transfer of foreign exchange shall be handled by the local branch of the People’s Bank of China
if it surpasses the starting point provided for by the People’s Bank of China,.

Article 36

The cash withdrawal of credit card shall be authorized by a card-issuing bank on every deal, the accumulated amount of the cash withdrawn
each day for each card may not in excess of Renminbi 2000 yuan.

An upper limit shall be set by the card-issuing bank for the withdrawal made on ATM, the accumulated amount of the cash withdrawn
each day for each card shall be less than Renminbi 5000 yuan.

Article 37

The face value or the value stored in a stored-value card shall be no more than Renminbi 1000 yuan.

Article 38

Where a commercial bank issues the affinity card, it may not grant any donation or pay any other fees to any affinity entity from
its income.

Article 39

In case a card-issuing bank handles such business as deposit, withdrawal, account transfer, settlement or any other transaction for
a cardholder upon password or any other electronic information, the electronic information record generated therefrom shall be the
valid vouchers of this transaction. The card-issuing bank may use the itemized record or detailed list of the transaction as supporting
vouchers for the accounts.

Article 40

The original documents, which are generated from the transaction made with a bank card through any interconnected terminal, shall
be kept for two years at least for reference.

Chapter VI Bank Card Risk Management

Article 41

A card-issuing bank shall examine and verify the credit status of an applicant for credit card seriously and determine the valid
guarantee and method of guarantee upon the strength of the credit status of the applicant.

A card-issuing bank shall recheck the credit status of a credit cardholder regularly and adjust the credit limit of the cardholder
subject to the alteration of the credit status.

Article 42

A system for approval authorization shall be established by any card-issuing bank to define the approval power and transaction limit
of its internal staff of different levels specifically.

Article 43

A card-issuing bank shall enhance the administration of the name list of stop payment, and shall receive and send this list timely.

Article 44

A card-issuing bank, when handling any agency business through a debit card, may not make advance payment for the cardholder or the
client.

Article 45

A card-issuing bank shall comply with the following risk control indicators for the credit card business:

(1)

as regards an individual card, the amount occurred in a single overdraft by a same cardholder shall be no more than Renminbi 20,000
yuan (including the equivalent of foreign currency); as regards an entity card, the said amount no more than Renminbi 50,000 yuan
(including the equivalent of foreign currency).

(2)

as regards an individual card, the monthly overdraft balance of a same account shall be less than Renminbi 50,000 yuan (including
the equivalent of foreign currency); as regards an entity card, the said balance less than 3 percent of the comprehensive credit
limit granted by the card-issuing bank to the entity. The monthly overdraft balance of an entity without comprehensive credit limit
shall be less than Renminbi 100,000 yuan (including the equivalent of foreign currency).

(3)

the total overdraft of a foreign currency card may not be more than 80 percent of the guarantee money (including the amount from pledging
the certificate of deposits) of the cardholder.

(4)

the monthly average overdraft balance newly occurred in more than 180 days (including 180 days, similarly hereinafter) as of the date
when the present Measures implement may be in excess of 15percent of the monthly average amount of the total overdraft balance.

Article 46

The overdraft term of a quasi-credit card shall not exceed 60 days. The minimum payment of a credit card in the first month may not
be lower than 10 percent of the overdraft balance of that month.

Article 47

In case of any overdrawing or defrauding business, a card-issuing bank may recover the money through the channels as follows:

(1)

deducting the cardholder’s guarantee money, disposing the collaterals or pledged articles in accordance with the related laws;

(2)

recovering the overdrawn amount from the guarantor;

(3)

recovering the money by judicial procedures.

Article 48

Where it is not enough to offset the loss after taking the measures listed in Article 47 by a card-issuing bank, it shall be handled
pursuant to the Measures for the Administration of the Reserves for Bad Loans.

Article 49

As regards a recovered overdraft that is already canceled, the principal and interest thereof shall be added to the reserves for
bad loans.

Article 50

In case a branch of a commercial bank pays for participating in the bank card information exchange center of the city where it is
located, it shall apply to the headquarters thereof for approval.

Chapter VII Duties and Responsibilities between the Bank Card Parties

Article 51

The rights of a card-issuing bank are as follows:

(1)

it has the right to perform an examination of the credit status of an applicant, require for its personal information, decide whether
to issue bank card to an applicant and determine the overdraft limit of a credit cardholder as well.

(2)

it is enpost_titled to recover the overdraft made by a cardholder. If any cardholder fails to repay the overdraft amount within the prescribed
time limit, the card-issuing bank has the right to apply for lawful protection and investigate the legal liabilities of the cardholder
or the related parties concerned in accordance with the related laws.

(3)

as regards a cardholder that fails to abide by its articles of association, it has the right to cancel the qualification thereof and
may authorize the related entity to take the bank card back.

(4)

it may neglect the reporting of loss of the electronic purse in any stored-value card or IC card.

Article 52

The obligations of a card-issuing bank are as follows:

(1)

The related materials concerning the use of bank card shall be offered for an applicant for bank card, including the articles of association,
introductions and charging rates. Any current cardholder may require for the aforesaid materials as well.

(2)

A complaint system shall be established focusing on the fairness and effectiveness of bank card services, and the complaint procedures
and telephone number shall be publicized. It shall make a reply regarding the inquiry or requirement of correction from a cardholder
within 30 days.

(3)

The account-checking services shall be offered for cardholders. The account statements shall be provided for cardholders monthly except
for any of circumstances as follows:

(a)

a deposit book or any other transaction log has provided to the cardholder already;

(b)

no transaction incurs since the account statement of the previous month is made and there is no unpaid balance in the account of the
cardholder;

(c)

it has agreed otherwise with the cardholder.

(4)

As regards a bank card account statement as provided by the card-issuing bank to a cardholder, the following items shall be listed:

(a)

value of transaction, account balance (and as regards a credit card, the date when repayment is due, minimum payment and available
credit limit shall also be listed);

(b)

the date when the trading value is recorded into the related account or self-owned account for deduction;

(c)

trading date and category;

(d)

the number of transaction logs;

(e)

name and code number of the merchant acting as the target of payment (excluding the transactions occurring in other places);

(f)

address or telephone number for inquiring or reporting incompatible account statements.

(5)

The service for reporting bank card loss shall be provided by any card-issuing bank for cardholders, a round-clock telephone line
therefrom shall be set, and the card issuing bank shall provide two ways for loss reporting, namely by telephone or in written form,
and the latter is the official way for loss reporting. The responsibilities for loss reporting of both the card-issuing bank and
the cardholder shall be specified in the article of association or the related agreement.

(6)

The importance of password and the liability for its loss to the cardholders shall be clarified in the related articles of association
on bank card or the introductions.

(7)

A card-issuing bank shall be responsible for keeping secret for the credit information of the cardholders.

Article 53

The rights of a cardholder are as follows:

(1)

A cardholder has the rights to enjoy all kinds of services on bank card as promised by the card-issuing bank, supervise the service
quality and complaint the incompetent service if any.

(2)

An applicant or cardholder has the rights to be aware of the functions, use methods, charging items, charging rates, applicable interest
rate and the related calculation formula of the card he selected.

(3)

A cardholder has the right to demand the account statement from the card-issuing bank within the prescribed time limit and is enpost_titled
to inquire into the incompatible content or ask the bank to remedy.

(4)

The cardholder shall assume the responsibility for the alteration of the capital deposited in the debit card no more after going through
the formalities for reporting the loss of a debit card, except it is adjudicated otherwise by the judicial department or arbitral
department.

(5)

A cardholder in enpost_titled to require for the agreement concerning obtaining credit card and shall keep the agreement properly.

Article 54

The obligations of a cardholder are as follows:

(1)

An applicant shall give truthful application materials to a card-issuing bank and provide guarantee consistent with the related requirements
as provided for by the card-issuing bank.

(2)

A cardholder shall abide by the articles of association of the card-issuing bank and the related articles of the Agreement on Obtaining
Bank Card.

(3)

In case of any alterations of the address or occupation of a cardholder or guarantor, the card-issuing bank shall be informed in written
form timely.

(4)

No cardholder may refuse to pay the fees owed to the card-issuing bank with an excuse of having any dispute with any merchant.

Article 55

In case a commercial bank develops a merchant that accepts bank card business, it shall sign an acceptance agreement with the merchant,

CIRCULAR OF THE PEOPLE’S BANK OF CHINA (PBC) ON ALTERATION OF THE APPLICATION FORMS FOR THE ESTABLISHMENT OF COMMERCIAL PRESENCE IN CHINA BY FOREIGN-CAPITAL FINANCIAL INSTITUTIONS AND RELATED ISSUING PROCEDURES

The People’s Bank of China

Circular of the People’s Bank of China (PBC) on Alteration of the Application Forms for the Establishment of Commercial Presence in
China by Foreign-capital Financial Institutions and Related Issuing Procedures

YinFa [1999] No.122

March 31, 1999

Branches and business management departments of the People’s Bank of China:

With a view to further standardizing the examination and approval of foreign-capital financial institutions and improving the efficiency
of examination and approval for those institutions, samples of the Application Form for the Establishment of Operations in China
by Foreign-capital Financial Institutions and the Application Form for the Establishment of Permanent Representative Offices in China
by Foreign-capital Financial Institutions (see the Attachments) are hereby printed and distributed to you. In addition, the issuing
procedures for the application forms are adjusted as follows: the mode of issuing application forms upon the agreement in principle
of the head office of PBC is replaced by that of issuing application forms the moment the foreign-capital financial institutions
request for the establishment of branches or representative offices. All branches and business management departments, after review
and examination, should submit all application materials including the applications forms together with the results of review and
examination to the head office of PBC for further examination and approval. That is hereby notified.

Attachment I: Application Form for the Establishment of Operations in China by Foreign-capital Financial Institutions (omitted)

Attachment II: Application Form for the Establishment of Permanent Representative Offices in China by Foreign-capital Financial Institutions
(omitted)

The People’s Bank of China
1999-03-31

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON SIMPLIFYING THE PROCEDURES OF PURCHASE AND PAYMENT OF FOREIGN EXCHANGE FOR TECHNOLOGY-INTRODUCTION BY ENTERPRISES WITH FOREIGN INVESTMENT

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Simplifying the Procedures of Purchase and Payment of Foreign Exchange
for Technology-introduction by Enterprises with Foreign Investment

Huifa [1999] No.319

September 28,1999

Branches of the State Administration of Foreign Exchange, Departments of Foreign Exchange of Beijing and Chongqing, Branches of Foreign
Exchange of Dalian, Qingdao, Ningbo, Xiamen, Shenzhen, Assigned banks of foreign exchange with Chinese investment:

In accordance with relevant regulations of the State Council, SAFE will amend the existing “Circular on Strengthening the Administration
on the Purchase and Payment of Foreign Exchange for Intangible Properties” (HuiGuanHanZi [98] No.092)(hereafter “the Circular”) in
order to simplify the purchase and payment in foreign exchange for technology-introduction by enterprises with foreign investment
as follows:

For the purchase and payment in foreign exchange for technology- introduction by enterprises with foreign investment, the Circular
requires the checking of registration validation for technology and equipment introduction of joint venture issued by MOFTEC and
its branches. Since this document, the approval documents for joint venture (the technology- introduction contract must be notified)
issued by MOFTEC and its branches and the approval license of enterprises with foreign investment will be checked instead of registration
validation. Other documents required by the Circular will remain for checking.

The approved purchase and payment in foreign exchange for technology-introduction by enterprises with foreign investment prior to
this document, the approval documents for joint venture, the confirmation letter (the technology-introduction contract must be notified)
issued by MOFTEC and its branches and the approval license of enterprises with foreign investment will be checked instead of registration
validation. Other documents required by the Circular will remain for checking.

This Circular will come into effect as of the issuing. Other requirements in the Circular remain unchanged.

Every branch should transfer to the sub-branches and the local foreign investment banks as soon as possible after received the circular.
Every assigned banks of foreign exchange with Chinese investment should transfer to its sub-branches as soon as possible. Any problems
encountered in carrying out the circular should be replied to the State Administration of Foreign Exchange in time.

The State Administration of Foreign Exchange
1999-09-28

PREVENTION OF JUVENILE DELINQUENCY LAW

Law of the People’s Republic of China on Prevention of Juvenile Delinquency



	(Adopted at the 10th Meeting of the Standing Committee of the Ninth National People’s Congress on June 28, 1999 and promulgated by Order No. 17 of the President of the People’s Republic of China on June 28, 1999) Contents Chapter I General Provisions Chapter II Education for Prevention of Juvenile Delinquency Chapter III Prevention of Juvenile Misbehaviors Chapter IV Rectification and Treatment of Serious Juvenile Misbehaviors Chapter V Juveniles’ Self-protection Against Crimes Chapter VI Prevention of Juveniles From Committing Crimes Again Chapter VII Legal Responsibility Chapter VIII Supplementary Provisions Chapter I General Provisions Article 1 This Law is enacted for the purpose of ensuring that juveniles are physically and mentally healthy, helping juveniles cultivate good conduct and effectively preventing juvenile delinquency. Article 2 The prevention of juvenile delinquency shall be based on education and protection, the work shall be started with school children and efforts shall be made to prevent, rectify and treat juvenile misbehavior before it is too late. Article 3 Juvenile delinquency shall be prevented in a comprehensive way under the organization and leadership of the people’s governments at all levels. The government departments concerned, judicial organs, people’s organizations, relevant public organizations, schools, families, neighborhood committees in cities and villagers committees in the countryside, etc. shall join efforts and take their respective responsibilities in preventing juvenile delinquency, and creating a good social environment for the cultivation of physical and mental health of juveniles. Article 4 People’s governments at all levels shall perform the following functions and duties in preventing juvenile delinquency: (1) to formulate plans for prevention of juvenile delinquency; (2) to organize and coordinate efforts of the relevant government departments for public security, education, culture, the press, publishing, radio, film and television, industry and commerce, civil affairs, and judicial administration, and other public organizations in preventing juvenile delinquency; (3) to inspect the implementation of this Law and work plans; and (4) to analyze and disseminate the experience gained in prevention of juvenile delinquency, and set up and commend advanced units and individuals. Article 5 For prevention of juvenile delinquency, research on education in puberty, psychological corrections and measures for prevention of crimes shall be improved in light of the physiological and psychological characteristics of juveniles at different ages. Chapter II Education for Prevention of Juvenile Delinquency Article 6 Juveniles shall be educated in ideals, morality, the legal system as well as in patriotism, collectivism and socialism. Juveniles who have reached the age of receiving compulsory education shall, while receiving the education mentioned above, be educated for prevention of crimes. Education for prevention of juvenile delinquency is for the purpose of enhancing juveniles’ legal conceptions, helping them heed the harm done to themselves, their families and the community by their violations of law and criminal actions and become aware of the legal responsibilities incurred by such violations and actions and of the importance of obeying rules of discipline and laws and preventing themselves from breaking laws and committing crimes. Article 7 The administrative departments for education and schools shall incorporate the education for prevention of crimes into school plans for education and teaching as the content of legal education, and shall, in combination with the common and frequently-occurring cases of juvenile delinquency, educate juveniles of different ages in prevention of delinquency respectively. Article 8 Judicial administration departments, administrative departments for education and the Communist Youth League and Young Pioneers organizations shall, in light of specific conditions, arrange and hold exhibitions, give reports and lectures, and arrange other forms of activities to disseminate the legal system with emphasis on prevention of juvenile delinquency. Schools shall, in light of specific conditions, hold activities with education for prevention of juvenile delinquency as the main content. The administrative departments for education shall take the results of education for prevention of juvenile delinquency as an important part of assessment of school work. Article 9 Schools shall engage full-time or part-time teachers for legal education. Schools may engage after-school legal counselors, where conditions permit. Article 10 Parents and other guardians of juveniles shall take direct responsibility for giving legal education to juveniles. Schools that conduct education among students in prevention of crimes, shall make their plans for such education known to the parents and other guardians of the juveniles, who shall carry out the education in combination with the school plans and according to specific conditions. Article 11 Authorities of Children’s Palaces, recreation centers for juveniles and other places for out-of-school activities shall take education for prevention of juvenile delinquency as an important part of their work and carry out various forms of publicity and education activities in this respect. Article 12 For juveniles who have reached the age of 16 but are under the age of 18 and who are preparing for employment, vocational education and training institutions and employers shall include legal knowledge and education for prevention of crimes in vocational training. Article 13 The neighborhood committees in cities and villagers’ committees in the countryside shall carry out activities for the publicity of the legal system with stress on prevention of juvenile delinquency. Chapter III Prevention of Juvenile Misbehavior Article 14 The parents and other guardians of juveniles and schools shall advise juveniles to keep from the following kinds of misbehavior: (1) ) playing truant, staying out at night; (2) carrying controlled knives; (3) fighting, or abusing people; (4) forcibly demanding money or things of value from others; (5) stealing, or deliberately damaging property; (6) taking part in gambling or gambling in disguised form; (7) watching or listening in to pornographic or obscene audio-video products, or reading such stuff; (8) going to commercial singing and dancing halls and other such places that are not suitable for juveniles as prescribed by laws and regulations; and (9) other kinds of misbehavior that seriously run counter to social morality. Article 15 The parents and other guardians of juveniles and schools shall advise juveniles to keep from smoking and getting drunk. No business places may sell cigarettes or alcoholic drinks to juveniles. Article 16 where middle or primary school students play truant, the school shall get in touch with their parents or other guardians without delay. Where juveniles stay out at night without permission, their parents or other guardians, or the boarding school concerned shall look for them without delay, or approach a public security organ for help. Whoever allows a juvenile to stay at his or her place at night shall obtain permission of the juvenile’s parents or other guardians in advance, or inform them or the school concerned of the matter within 24 hours, or report to a public security organ without delay. Article 17 When parents or other guardians of juveniles and schools find that juveniles organize or join gangs that perpetrate misbehavior, they shall stop the juveniles promptly. When they find that the gangs have violated laws or committed criminal offences, they shall report the matter to public security organs. Article 18 When parents or other guardians of juveniles and schools find that juveniles are instigated or coerced to perpetrate or lured into illegal or criminal actions, they shall report the matter to public security organs. When the public security organs receive the reports, they shall immediately investigate and deal with the cases in accordance with law and, where the personal safety of juveniles is endangered, they shall promptly take effective measures to protect them. Article 19 Parents or other guardians of juveniles may not allow juveniles under the age of 16 to be free from their guardianship and live alone. Article 20 Parents or other guardians of juveniles may not give a free rein the juveniles, compel them to run away from home, or discard their duty of guardianship. Where juveniles run away from home, their parents and other guardians shall look for them without delay, or approach public security organs for help. Article 21 Where the parents of juveniles are divorced, both parties shall have the duty to educate their children, and neither party may fail to perform such duty on the pretext of divorce. Article 22 The stepparents and adoptive parents shall perform the same duty for the adolescent children they are supporting and educating as the duty performed by parents to their adolescent children in prevention of crimes, as prescribed by this Law. Article 23 Schools shall enforce education and administration among juveniles who are involved in misbehavior and may not discriminate against them. Article 24 The administrative departments for education and schools shall hold various forms of activities like lectures, informal discussions and training programs to make known to the participants good, effective educational methods in light of the physiological and psychological characteristics of juveniles in different stages of growth and to show the teachers, the parents of juveniles and other guardians how to effectively prevent, and rectify and treat juveniles’ misbehavior. Article 25 Where teachers, administrators or workers instigate or coerce juveniles to perpetrate or lure them into misbehavior, or where these people are ill-behaved, have a baneful influence on and are not suitable for school work, the administrative departments for education and the school authorities shall dismiss or discharge them; where a crime is constituted, criminal responsibility shall be investigated in accordance with law. Article 26 It is prohibited to set up commercial singing and dancing halls, commercial electronic games centers and other places that are not suitable for juveniles in the neighborhood of middle or primary schools. The kinds of halls, centers and places mentioned above shall be specified by people’s governments of provinces, autonomous regions and municipalities directly under the Central Government. The halls, centers and places set up before this Law goes into effect shall to be moved to other areas or closed down within a time limit. Article 27 Public security organs shall tighten control for public security around middle and primary schools, promptly stop and deal with illegal or criminal actions that are committed around such schools. The neighborhood committees in cities and villagers’ committees in the countryside shall assist public security organs in successfully maintaining public security around middle and primary schools. Article 28 Public security stations, neighborhood committees in cities and villagers’ committees in the countryside shall keep tabs on the schooling and employment of juveniles among temporary resident populations in their administrative areas. With regard to juveniles among temporary resident populations who perpetrate misbehavior, they shall urge the parents and other guardians of the juveniles to educate the juveniles effectively and to stop their misbehavior. Article 29 No one may instigate or coerce juvenile to perpetrate or lure them into misbehavior prescribed by this Law, or provide conditions for them to perpetrate misbehavior. Article 30 Publications meant for juveniles may not contain such contents as may induce juveniles to violate law or commit criminal offenses, or such contents as may impair the physical and mental health of juveniles’ contents that exaggerate violence, pornography, gambling, terror, etc. Article 31 No unit or individual may sell or loan to juveniles publications, audio-video products or electronic publications which contain such contents as may induce juveniles to violate laws or commit criminal offenses, and such contents as may impair the physical and mental health of juveniles, contents that exaggerate violence, pornography, gambling, terror, etc. No unit or individual may, by means of telecommunications, computer network, etc., provide such contents and information about such contents that may impair the physical and mental health of juveniles as prescribed by the preceding paragraph. Article 32 No programs of radio, film, TV and drama may contain such contents as may impair the physical and mental health of juveniles, contents that exaggerate violence, pornography, gambling, terror, etc. The administrative departments for radio, film and television and the administrative departments for culture shall strengthen administration of the programs of radio, film, TV and drama and the various showplaces. Article 33 Around commercial singing and dancing halls and other places that are not suitable for juveniles, conspicuous no-admittance signs for juveniles shall be put up, and no juveniles may be admitted into such places. Juveniles may not be admitted into commercial electronic games centers except during festivals and holidays specified by the State, and conspicuous no-admittance signs for juveniles shall be put up there. Where it is difficult to judge whether a person is juvenile or not, the worker of such a center may ask person to show his identity card. Chapter IV Rectification and Treatment of Serious Juvenile Misbehavior Article 34 ” Serious misbehavior ” as used in this Law refers to the following illegal actions that do serious harm to the community but are not serious enough for criminal punishment: (1) gathering people to create disturbance, and disrupting public order; (2) carrying controlled knives and refusing to stop doing so after repeated criticisms; (3) holding up and beating people many times or forcibly demanding money or things of value from others; (4) spreading obscene publications or audio-video products, etc.; (5) engaging in licentious or pornographic activities or harlotry; (6) committing theft many times; (7) taking part in gambling and refusing to stop doing so after repeated criticisms; (8) ingesting or injecting drugs; and (9) other actions that do serious harm to the community. Article 35 When juveniles are found to perpetrate the serious misbehavior as prescribed by this Law, they shall be stopped doing so without delay. When juveniles are found to perpetrate serious misbehavior as prescribed by this Law, their parents or other guardians and the schools concerned shall coordinate their efforts and take measures to subject them to strict discipline, or may send them to work-study schools for rectification or treatment, and for education. To send juveniles to work-study schools for rectification or treatment, and for education, their parents or other guardians or their former schools shall submit applications for approval to the administrative departments for education. Article 36 Work-study schools shall impose strict control on and enforce education among the juveniles who study there. They shall, in addition to the same courses offered by ordinary schools, as required by the Law on Compulsory Education, put emphasis on education in the legal system and help the juveniles to rectify or treat their serious misbehavior in light of the causes for such misbehavior and the psychological characteristics of the juveniles. Families and schools shall show concern for and take good care of the juveniles who study in work-study schools and respect their personality and dignity, and may not impose physical punishment on, maltreat, or discriminate against them. Juveniles who graduate from work-study schools shall enjoy equal rights with students who graduate from ordinary schools in entering schools of a higher grade and in employment, and no unit or individual may discriminate against them. Article 37 Juveniles who perpetrate serious misbehaviors, as specified in this Law, that constitute violations of the regulations governing public security shall be punished for public security by public security organs according to law. Juveniles who are exempted from punishment because they have not reached the age of 14 or the circumstances are especially minor may be subjected to reprimand. Article 38 Where Juveniles are not given criminal punishment because they have not reached the age of 16, their parents or other guardians shall be ordered to subject them to strict discipline; when necessary, they may also be sheltered for correction by governments in accordance with law. Article 39 During the period when juveniles are sheltered for correction, the executing organs shall make sure that they continue to receive education in cultural and legal knowledge or vocational techniques; for those who have not finished compulsory education, the executing organs shall make sure that they continue to receive such education. Juveniles who are released from sheltering for correction or from reeducation through labor shall enjoy equal rights with other juveniles in going back to school and entering schools of a higher grade and in employment, and no unit or individual may discriminate against them. Chapter V Juveniles’ Self-protection Against Crimes Article 40 Juveniles shall observe laws and regulations and live up to the standards of public morality, be aware of the importance of self-esteem, self-discipline and self-improvement, increase their ability to distinguish between right and wrong and protect themselves, and resist of their own volition any inducement to and corrosive influence by various misbehavior and illegal and criminal actions. Article 41 Juveniles who are abandoned or maltreated by their parents or other guardians shall have the right to request public security organs, administrative departments for civil affairs, organizations of the Communist Youth League, women’s federations, organizations for protection of juveniles or schools, neighborhood committee in cities, or villagers’ committees in the countryside to furnish them protection. The departments or organizations mentioned above that are request for help shall accept the request and take measures to help the juveniles immediately where necessary. Article 42 When juveniles find that anyone perpetuates actions prohibited by the provisions in Chapter III of this Law or commits criminal offenses against themselves or other juveniles, they may report to public security organs or competent government departments through their schools, their parents or other guardians, and they themselves may do so too. The organs or departments that receive the reports shall promptly investigate and deal with the cases according to law. Article 43 Judicial organs, schools and the community shall give especial protection to juveniles who fight and report against criminal offenses and ensure that they are free from retaliation. Chapter VI Prevention of Juveniles From Committing Criminal Offenses Again Article 44 In investigating juveniles who have committed criminal offenses investigating for criminal responsibility, the guidelines of enlightenment, persuasion and reformation and the principle of taking enlightenment as the dominant factor while making punishment subsidiary shall be adhered to. When handling cases involving juvenile delinquency, judicial organs shall guarantee that juveniles exercise their litigation rights and get legal assistance, and enlighten them on the legal system in accordance with the physiological and psychological characteristics of juveniles and the circumstances under which they commit the criminal offenses. Juvenile students against whom mandatory penal measures are taken may not be struck off the school roll before the verdicts of the People’s Courts go into effect. Article 45 Trials of criminal cases involving juvenile delinquency in a People’s Court shall be conducted by a juvenile court formed, in accordance with law, by judges who are familiar with the physical and mental characteristics of juveniles or of such judges and people’s assessors. No cases involving criminal offenses committed by juveniles who have reached the age of 14 but are under the age of 16 shall be heard in public. Generally, no cases involving criminal offenses committed by juveniles who have reached the age of 16 but are under the age of 18 shall be heard in public either. For cases involving criminal offenses committed by juveniles, no names, dwelling places, photos nor materials from which people can tell who the juveniles are may be disclosed in news reports, film and television programs and publications. Article 46 Juveniles who are detained or arrested or who are serving their sentences shall be jailed, administered and educated separately from adults. During the period when juvenile delinquents are serving their sentences, the executing organ shall enforce legal education and conduct vocational and technical training among them. For juvenile delinquents who have not finished compulsory education, the executing organ shall ensure that they continue to receive such education. Article 47 Parents and other guardians of juveniles, schools, neighborhood committees in cities and villagers’ committees in the countryside shall take effective measures to help educate juveniles who are not given or are exempted from criminal punishment because they have not reached the age of 16 and juveniles who are sentenced to criminal punishment of non-imprisonment or to criminal punishment with a suspension of execution or who are released on parole, in order to assist judicial organs in a successful educating and reforming the juveniles. The neighborhood committees in cities or villagers’ committees in the countryside may engage retired persons or other persons who are exemplary in their ideology and moral character, honest and upright and enthusiastic about educational work among juveniles, to assist them in doing a good job of educating and reform the juveniles mentioned in the preceding paragraph. Article 48 Juveniles who, in accordance with law, are exempted from criminal punishment, sentenced to criminal punishment of non-imprisonment, sentenced to criminal punishment with a suspension of execution, or released on parole, or for whom criminal punishment have executed shall enjoy equal rights with other juveniles in going back to school and entering schools of a higher grade and in employment; no unit or individual may discriminate against them. Chapter VII Legal Responsibility Article 49 Where parents or other guardians of juveniles fail to perform their duties of guardianship and let juveniles perpetrate, as they like, misbehavior or serious misbehavior specified in this Law, public security organs shall reprimand the parents or other guardians of the juveniles and order them to subject the juveniles to strict discipline. Article 50 Where parents or other guardians of juveniles, in violation of the provisions in Article 19 of this Law, allow juveniles under the age of 16 to be free from their guardianship and live alone, public security organs shall reprimand the parents and other guardians of the juveniles and order them to set it right immediately. Article 51 Where a member of a public security organ, in violation of the provisions in Article 18 of this Law, fails to investigate and deal with a case or take effective measures immediately after receiving the report and thus grossly neglects his duty, he shall be given administrative sanctions; if serious consequences are caused and a crime is constituted, he shall be investigated for criminal responsibility in accordance with law. Article 52 If anyone, in violation of the provisions in Article 30 of this Law, publishes publications which contain such contents as may induce juveniles to violate laws or commit criminal offenses, or such contents as may impair the physical and mental health of juveniles, contents that exaggerate violence, pornography, gambling, terror, etc., the publications and his illegal gains shall be confiscated by the administrative department for publishing, and he shall also be fined not less than 3 times but not more than 10 times his illegal gains; if the circumstances are serious, the publications and his illegal gains shall be confiscated, he shall be ordered to suspend business for rectification or his license shall be revoked. The persons who are directly in charge and the other persons who are directly responsible shall be fined. Whoever produces or reproduces publications for juveniles which propagate obscenity or sells, loans or spreads such publications shall be punished for public security in accordance with law; if the violation constitutes a crime, he shall be investigated for criminal responsibility in accordance with law. Article 53 If anyone, in violation of the provisions in Article 31 of this Law, sells or loans to juveniles publications, audio-video products or electronic publications which contain such contents as may induce juveniles to violate laws or commit criminal offenses, and such contents as may impair the physical and mental health of juveniles, contents that exaggerate violence, pornography, gambling, terror, etc., or, by means of telecommunications, computer network, etc., provides such contents and information about such contents that may impair the physical and mental health of juveniles, the said publications, audio-video products, electronic publications and his illegal gains shall be confiscated and he shall be fined by the competent government department. If any unit commits any action mentioned in the preceding paragraph, the publications, audio-video products, electronic publications and its illegal gains shall be confiscated, it shall be fined, and the persons who are directly in charge and the other persons who are directly responsible shall also be fined. Article 54 If any cinema, theatre, video-tapes show hall and other show place shows or plays such programs as may impair the physical and mental health of juveniles, programs that exaggerate violence, pornography, gambling, terror, etc., the audio-video products which it illegally shows or plays and its illegal gains shall be confiscated by the competent government department, it shall be fined, and the persons who are directly in charge and the other persons who are directly responsible shall also be fined; if the circumstances are serious, if shall be ordered to suspend business for rectification or its business license shall be revoked by the administrative department for industry and commerce. Article 55 If commercial singing and dancing halls, other places that are not suitable for juveniles, and commercial TV games centers, in violation of the provisions in Article 33 of this Law, fail to put up conspicuous no-admittance signs or allow juveniles to go there, they shall be ordered to set it right, given administrative warning, ordered to suspend business for rectification, their illegal gains shall be confiscated, and they shall be fined by the administrative department for culture, and the persons who are directly in charge and the other persons who are directly responsible shall also be fined; if the circumstances are serious, the administrative department for industry and commerce shall revoke their business licences. Article 56 Whoever instigates or coerces juveniles to perpetrate or lures them into misbehavior or serious misbehavior as prescribed by this Law, or provides conditions for juveniles to perpetrate the said misbehavior, if his action constitutes a violation of the regulations governing public security, shall be punished for public security by a public security organ in accordance with law; if a crime is constituted, he shall be investigated for criminal responsibility in accordance with law. Chapter VIII Supplementary Provisions Article 57 This Law shall go into effect as of November 1, 1999.

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION, THE STATE ADMINISTRATION OF RADIO, FILM AND TELEVISION AND THE MINISTRY OF CULTURE ON STRICTLY IMPLEMENTING THE INTERIM PROVISIONS ON FOREIGN-FUNDED CINEMAS

The Ministry of Foreign Trade and Economic Cooperation, the State Administration of Radio Film and Television, the Ministry of Culture

Circular of the Ministry of Foreign Trade and Economic Cooperation, the State Administration of Radio, Film and Television and the
Ministry of Culture on Strictly Implementing the Interim Provisions on Foreign-funded Cinemas

WaiJingMaoZiZi [2000] No.4

February 19, 2001

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

The Interim Provisions on Foreign-funded Cinemas (hereinafter referred to as the Interim Provisions) jointly formulated by the State
Administration of Radio, Film and Television, the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) and the Ministry of
Culture was promulgated and put into force on October 25, 2000.

The promulgation of the Interim Provisions is one of the important measures adopted by our country to promote the gradual opening
of the service trade to the outside world, so all the localities and departments shall strictly carry the Interim Provisions out.
The relevant issues are hereby further restated as follows:

The establishment of foreign-funded cinemas shall strictly complying with the provisions of Article 6 of the Interim Provisions;
they shall be submitted to the MOFTEC by the department in charge of foreign trade and economic cooperation at the provincial level
with the consent of the administrative department of film at the provincial level, and go through the examination and approval according
to the laws and regulations of the State on foreign investment after the MOFTEC gets the approval of the State Administration of
Radio, Film and Television and the Ministry of Culture, and the Certificate of Approval for Enterprise with Foreign Investment shall
be issued to the enterprise with foreign investment of which the establishment has been approved.

The establishment of foreign-funded cinema must meet the requirements for establishment prescribed by Article 4 of the Interim Provisions,
and only the form of Chinese-foreign joint equity venture and Chinese-foreign contractual cooperative venture may be adopted.

The administrative departments of industry and commerce shall handle the formalities of enterprise registration, relying on the Certificate
of Approval for Enterprise with Foreign Investment issued by the MOFTEC and the relevant materials.

With respect to any foreign-funded cinema established without authorization against the relevant requirements of the Interim Provisions
after the promulgation thereof (October 25, 2000), the Certificate of Approval for Enterprise with Foreign Investment of that cinema
shall be invalid, and the MOFTEC shall instruct the original examining and approving department to withdraw the Certificate of Approval
for Enterprise with Foreign Investment within limited period, and shall, according to the seriousness of the circumstances, circulate
a public notice of criticism, order the offender to make rectifications or even cancel the authorization to issue the Certificate
of Approval for Enterprise with Foreign Investment of the examining and approving department that goes beyond the limit of authorization,
the administrative department of film may not issue the License for Film Showing and the administrative department of industry and
commerce shall revoke the business license of that cinema.

This is hereby notified.

The Ministry of Foreign Trade and Economic Cooperation, the State Administration of Radio Film and Television, the
Ministry of Culture
2001-02-19

LABOUR INSURANCE REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA

REGULATIONS ON THE CONSOLIDATED INDUSTRIAL AND COMMERCIAL TAX (DRAFT)

Category	TAXATION	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	Invalidated
Date of Promulgation	1958-09-13	Effective Date	1958-09-13	Date of Invalidation	1993-12-29

Regulations of the People’s Republic of China on the Consolidated Industrial and Commercial Tax (Draft)

Regulations
Appendix: Consolidated Industrial and Commercial Tax Schedule of Taxable
Notes:

(Adopted, in Principle, by the 101st Meeting of the Standing Committee of

the National People’s Congress on September 11, 1958 and Promulgated by the
State Council on September 13, 1958) (Editor’s Note: These Regulations have
been annulled by Decision of the Standing Committee of the National People’s
Congress Regarding the Application of Provisional Regulations on Such Taxes
As Value-Added Tax, Consumption Tax and Business Tax to Foreign Investment
Neterprises and Foreign Enterprises promulgated on December 29, 1993)
Regulations

Article 1 These Regulations are formulated with a view to adapting the
industrial and commercial taxation system to the conditions of socialist
economy, promoting the growth of production, ensuring the supply of funds
for the national construction, and simplifying the taxation system by
incorporating the commodity tax, the commodity circulation tax, the business
tax, and the stamp tax into the consolidated industrial and commercial tax.

Article 2 All units and individuals engaged in the production of
industrial products, the purchase of agricultural products, the importation
of foreign commodities, commercial retailing, communications and
transportation, and various kinds of service trades are taxpayers of the
consolidated industry and commercial tax, and shall be subject to paying
the consolidated industrial and commercial tax in accordance with the
provisions of these Regulations.

Article 3 The categories of items subject to consolidated industrial
and commercial tax and the rates of tax are provided in the appended Schedule
of Taxable Items and Tax Rates. Any necessary additions to, decreases in or
adjustments to the individual categories of items subject to tax or the rates
of taxation shall be determined by the State Council and shall be implemented
upon promulgation.

Article 4 Taxpayers engaged in the production of industrial products
shall compute the tax, after the sale of such products, at the specified rate
based on the amount of gross income derived from the sale.

Products manufactured and used by an industrial enterprise in its own
production shall not be subject to tax. However, where such products are
subject to tax according to the Schedule of Taxable Items and Tax Rates of
these Regulations, such products shall be treated in accordance with the
provisions.

Article 5 Taxpayers engaged in the purchase of agricultural products
shall compute the tax, after the purchase of such products, at the specified
rate based on the amount paid for the products.

Article 6 Taxpayers engaged in the importation of foreign goods shall
compute the tax, after the importation of such goods, at the specified rate
based on the amount paid for the imported goods.

Article 7 Taxpayers engaged in commercial retailing shall compute the
tax, after the sales of such goods, at the specified rate based on their
income derived from such sales.

Article 8 Taxpayers engaged in communications and transportation and
various kinds of service trades shall compute the tax, after receipt of
income, at the specified rate based on the amount of their business income.

Article 9 With respect to products processed by an industrial enterprise
based on consignment, the consignor shall pay the tax. Where the consignor is
an industrial unit, the tax shall be paid in accordance with the provision of
Article 4 of these Regulations. Where the consignor is not an industrial unit,
the tax shall be paid by the consignee on behalf of the consignor at the time
when the products are delivered, or by the consignor, upon its acceptance of
delivery of the products.

Article 10 The business income of State banks, insurance undertakings,
agricultural machinery workshops, and medical and health institutions as well
as the income or scientific research institutions derived from experiments,
shall be exempt from the consolidated industrial and commercial tax.

Article 11 Where tax incentives are deemed necessary, tax reductions or
exemptions may be granted with respect to income from public canteens and
other public services operated independently by agricultural production
cooperatives or urban community organizations; income derived from purchase
and sale operations performed by supply and marketing departments of
agricultural production cooperatives on behalf of state enterprises; and
income derived by schools from the production activities of work-study
programs.

Article 12 Where tax reductions, exemptions and changes regarding the
stage at which the tax is assessed on particular products are within the
administrative district of the respective provinces, autonomous regions, or
municipalities directly under the Central Government, the matter shall be
regulated by the people’s councils of the provinces, autonomous regions, or
municipalities directly under the Central Government in accordance with the
authority granted to them by the State regarding the administration of
taxation. Where tax reductions, exemptions and changes regarding the stage at
which tax is assessed on particular products are of national scope, the matter
shall be regulated by the Stare Council.

Article 13 Taxpayers and tax authorities should bring into full play the
spirit of cooperation in dealing with taxation matters. Taxpayers shall pay
their tax correctly and promptly, and voluntarily provide tax authorities with
all necessary information. Tax authorities shall actively assist taxpayers in
the payment of tax and promptly respond to suggestions put forward by
taxpayers regarding improvements in taxation.

Article 14 The tax authorities shall, taking into account the amount of
tax payable and the operational circumstances of the enterprise concerned,
determine the time limit for the payment of tax on an individual basis.

Article 15 Where a taxpayer fails to make tax payment within the
prescribed time limit, the tax authorities, in addition to setting a new time
limit for the tax payment, shall impose a late payment fine of 0.1%
of the amount of tax due for each day the tax is overdue, commencing from the
first day on which the tax is overdue.

Article 16 Where a taxpayer evades or neglects any payment of tax, the
tax authorities may, in addition to pursuing the payment of tax, subject the
taxpayer to criticism or impose a fine not exceeding five times the amount of
the tax due according to the seriousness the offense. Cases of gross
violation shall be submitted to the people’s courts for disposal.

Article 17 The people’s councils of provinces, autonomous regions and
municipalities under the Central Government shall, in accordance with the
authority granted to them by the State regarding the administration of
taxation, separately formulate measures for taxation as to the assessment of
consolidated industrial and commercial tax on agricultural production
cooperatives, individual members of agricultural production cooperatives,
individual farmers, capitalist industrial and commercial enterprises still in
existence, individual handicraftsmen, small traders and pedlars and
unregistered-commercial businesses and submit such measures to the State
Council for the record.

Article 18 The rules for the implementation of these Regulations shall be
formulated by the Ministry of Finance of the People’s Republic of China.

Article 19 These Regulations shall become effective as of the day of
promulgation. The Interim Regulations Concerning the Commodity Tax, the
Trial Rules for Commodity Circulations Tax, the section regarding business
tax in the Interim Regulations Concerning the Industrial and Commercial Tax,
the Interim Regulations Concerning the Stamp Tax and provisions connected
therewith are hereby repealed.
Appendix: Consolidated Industrial and Commercial Tax Schedule of Taxable
Items and Tax Rates

I.Industrial and Agricultural Products (Note 1.)

———————————————————————-

| Taxable Items | Tax Rates
| Remarks |

|—————————–|————–|———————–|

| Cigarettes: | |
|

| Class A
| 69% |
|

| Class B
| 66% |
|

| Class C
| 63% |
|

| Class D
| 60% |
|

| Class E
| 40% |
|

|—————————–|————–|
|

| Cigars |
55% |
|

|—————————–|————–|
|

| Cut tobacco |
40% |
|

|—————————–|————–|
|

| Smoked leaf tobacco | 50% |
|

|—————————–|————–|
|

| Unsmoked leaf tobacco | 40% |
|

|—————————–|————–|
|

| Wines and spirits brewed | | An
enterprise shall |

| from grains: | | be
subject to tax for|

| White spirits, yellow rice | | wines
and spirits |

| Wine
| 60% | produced by itself |

| Beer
| 40% | and used for its own |

| Sweet rice wine |
40% | production, at the |

|—————————–|————–| prescribed tax rates.|

| Wines made from non-grain | |
|

| substitutes |
20% |
|

|—————————–|————–|
|

| Wines brewed from fruit | 30% |
|

|—————————–|————–|
|

|Reprocessed wines and spirits| 30% |
|

|—————————–|————–|
|

| Alcohol: | |
|

| Alcohol made from grains | 30% |
|

| Alcohol made from non-gram | |
|

| substitutes |
20% |
|

| Alcohol made from wood | 20% |
|

|—————————–|————–|
|

| Sugar: | |
|

| Machine-processed sugar | 44% |
|

| Unrefined sugar |
39% |
|

| Saccharin |
44% |
|

| Maltose |
27% |
|

|—————————–|————–|
|

| Tea
| 40% |
|

|—————————–|————–|
|

| Cereals
| 4% |
|

|—————————–|————–|
|

| Wheat flour |
10% |
|

|—————————–|————–|
|

| Vegetable oils | 12.5% |
|

|—————————–|————–|
|

| Sea foods: | |
|

| Sea cucumbers, fish maws, | |
|

| sharks’ fins, fish lips, | |
|

| abalone, dry scallops | 35% |
|

| Other sea foods | 5% |
|

|—————————–|————–|
|

| Fresh water products: | |
|

| Fishes, shrimps, crabs | 5% |
|

|—————————–|————–|
|

| Tremella, bird’s nest | 35% |
|

|—————————–|————–|
|

|Aerated waters, fruit drinks,| |
|

|fruit syrups, fruit juice | 25% |
|

|—————————–|————–|
|

| Monosodium glutamate, | |
|

| essence of soy |
25% |
|

|—————————–|————–|
|

| Milk powder, condensed milk,| |
|

| Evaporated milk | 10% |
|

|—————————–|————–|
|

| Fresh cow’s milk, | |
|

| fresh ewe’s milk | 2.5% |
|

|—————————–|————–|
|

| Canned foods |
10% |
|

|—————————–|————–|
|

| Egg products |
10% |
|

|—————————–|————–|
|

| Cotton yarn: |yarn number
30| An enterprise shall |

| Natural colour cotton yarn | and upwards: | be subject to tax for|

| Lint-free cotton yarn | 26%
| yarn produced by |

| Staple rayon yarn | less than 30:| itself and
used in its|

|
| 23% | production, at the |

|—————————–|————–| prescribed tax rate. |

| Cotton cloth: | &n

RULES GOVERNING THE SUPERVISION AND CONTROL OF THE IMPORTATION OF GOODS FOR EXHIBITIONS BY THE COSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA

DECREE OF THE STATE COUNCIL

Category	FOREIGN AFFAIRS	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1979-09-09	Effective Date	1979-09-09

Decree of the State Council of the People’s Republic of China

(Promulgated on September 9, 1979)

A decree is hereby issued to execute the agreement signed by the
Government of the People’s Republic of China and the Government of the United
States of America on May 11 this year concerning the settlement on
claims/assets, and to protect the legitimate rights and interests of the
Chinese units and individuals concerned:

1. As regards the assets belonging to state organs, stateowned
enterprises, public institutions, including organizations and schools, frozen
by the U.S. government, the State Council authorizes the Bank of China to act
on their behalf to approach the debtors on the U.S. side and handle the
affairs of recovering or with drawing the said assets frozen by the U.S.
government as soon as the U.S. government has declared the unfreezing in
accordance with the Sino-U.S. agreement.

2. As regards the former private industrial and commercial enterprises and
state-private joint industrial and commercial enterprises which, after years
of socialist transformation, have now been transformed, according to their
lines of business, into or merged with state-owned industrial and commercial
enterprises, the State Council has made the decision to authorize the Bank of
China to act as their plenipotentiary to handle the affairs of recovering or
withdrawing the assets belonging to them and frozen by the U.S. government.
When the said frozen assets have been recovered or withdrawn, the Bank of
China shall settle the accounts with the units concerned in accordance with
the relevant laws and decrees of China.

3. As regards the frozen personnal assets belonging to Chinese nationals,
for the convenience of making contacts with the debtors on the U.S. side and
protecting the legitimate rights and interests of the owners, the State
Council authorizes the Bank of China to complete the formalities for
recovering or withdrawing the said frozen assets abroad. When the said frozen
personal assets have been recovered or withdrawn, the Bank of China shall
effect the payments in accordance with the relevant laws and decrees of China.

4. As of the date of the issuance of the present decree, no units or
individuals have the right to withdraw, sell or transfer their assets frozen
by the U.S. government without the consent of the Bank of China.

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING IMPLEMENTATION OF THE CRIMINAL PROCEDURE LAW

Category	LITIGATION	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	In Force
Date of Promulgation	1980-02-12	Effective Date	1980-02-12

Decision of the Standing Committee of the National People’s Congress Regarding Implementation of the Criminal Procedure Law

(Adopted at the 13th Meeting of the Standing Committee of the Fifth

National People’s Congress on February 12, 1980)

Acting on a proposal put forward by the Supreme People’s Procuratorate
and the Supreme People’s Court regarding the implementation of the
Criminal Procedure Law, the Standing Committee of the Fifth National
People’s Congress decides that:

1. Criminal cases filed before December 31, 1979 but not yet decided
shall continue to be handled according to the policies, laws and regulations
and case-handling procedures relevant to criminal proceedings which were
valid before the Criminal Procedure Law went into effect.

2. Criminal cases accepted after January 1, 1980 shall be handled
according to the provisions of the Criminal Procedure Law. If too many
cases handled by a limited number of personnel prevent some cases from
being concluded within the time limits for investigation, prosecution and
adjudication of first and second instances as prescribed in the Criminal
Procedure Law, the time limits for case-handling during the year 1980 may
be extended upon approval by the standing committees of the pcople’s
congresses of provinces, autonomous regions, and municipalities directly
under the Central Government.

1...156157158...212 Page 157 of 212

China Laws

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS CONCERNING THE SUPPRESSION OF THE FALSIFICATION, COUNTERFEITING, AND ILLEGAL...

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING HALTING THE DEVELOPMENT OF PYRAMID RETAILING

MEASURES FOR THE ADMINISTRATION OF BANK CARD BUSINESS

CIRCULAR OF THE PEOPLE’S BANK OF CHINA (PBC) ON ALTERATION OF THE APPLICATION FORMS FOR THE ESTABLISHMENT OF COMMERCIAL PRESENCE IN CHINA BY FOREIGN-CAPITAL FINANCIAL INSTITUTIONS AND RELATED ISSUING PROCEDURES

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON SIMPLIFYING THE PROCEDURES OF PURCHASE AND PAYMENT OF FOREIGN EXCHANGE FOR TECHNOLOGY-INTRODUCTION BY ENTERPRISES WITH FOREIGN INVESTMENT

PREVENTION OF JUVENILE DELINQUENCY LAW

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION, THE STATE ADMINISTRATION OF RADIO, FILM AND TELEVISION AND THE MINISTRY OF CULTURE ON STRICTLY IMPLEMENTING THE INTERIM PROVISIONS ON FOREIGN-FUNDED CINEMAS

LABOUR INSURANCE REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA

REGULATIONS ON THE CONSOLIDATED INDUSTRIAL AND COMMERCIAL TAX (DRAFT)

RULES GOVERNING THE SUPERVISION AND CONTROL OF THE IMPORTATION OF GOODS FOR EXHIBITIONS BY THE COSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA

DECREE OF THE STATE COUNCIL

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING IMPLEMENTATION OF THE CRIMINAL PROCEDURE LAW

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