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MEASURES FOR THE IMPLEMENTATION OF THE PROVISIONS FOR LABOUR MANAGEMENT IN CHINESE-FOREIGN EQUITY JOINT VENTURES

The Ministry of Labour and Personnel

Measures for the Implementation of the Provisions for Labour Management in Chinese-foreign Equity Joint Ventures

the Ministry of Labour and Personnel

December 24, 1983

These Measures are specially formulated in order to facilitate the smooth implementation of the “Provisions for Labour Management
in Chinese-foreign Equity Joint Ventures” (hereinafter referred to as “Management Provisions”) and to facilitate the development
of Chinese-foreign equity joint ventures (hereinafter referred to as “joint ventures”).

Article 1

The labour plans of a joint venture, after being decided by the board of directors, shall be filed with the department in charge of
the venture and the local labour personnel department and shall be brought into line with the state labour plan.

Article 2

New workers to be employed by a joint venture according to its labour plan shall be openly recruited in line with the relevant policies
of the State in the region defined by the labour personnel department and shall be selected for employment on the basis of their
qualifications through testing.

If the newly-recruited workers have to undergo training, the joint venture may fix a period of time for training according to its
needs. All the trainees must be tested by the joint venture at the end of the training period and selected for employment on the
basis of their qualifications. Those still unqualified shall be retrained or sent back.

Article 3

If the engineers technicians and managing personnel in the locality cannot satisfy the quantitative needs of the joint venture, the
joint venture may recruit them from outside the region upon approval by the labour personnel department in the relevant province,
municipality or autonomous region and with the consent of the labour personnel departments in the regions concerned.

The joint venture may fix a probation period for the newly-recruited personnel and the personnel recommended by the department in
charge of the venture or the local labour personnel department in line with the Article 3 of the Management Provisions. They must
be formally employed if they are proved to be qualified during the probation period. Those unqualified shall be sent back and should
be accepted by their original units if they are permanent staff and workers.

Article 4

Apart from the agents of the foreign participant in a joint venture, all the staff and workers of a joint venture shall be recruited
from among Chinese people, provided the Chinese side can provide the qualified Chinese people.

Article 5

The employment of personnel of a joint venture shall be conducted in the form of signing a labour contract which, apart from the relevant
matters listed in the first clause of the Article 2 of the Management Provisions shall stipulate the effective period of contract,
conditions for its modification and termination and the rights and obligations of the venture and its staff and workers.

The labour contract shall be concluded by the joint venture and the venture’s trade union organization through consultations (or by
the joint venture and representatives of its staff and workers if the trade union is not yet organized). and in accordance with Article
2 of the Management Provisions the contract shall be submitted to the labour personnel department in the province, municipality
or autonomous region for approval. The labour personnel department in the province, municipality or autonomous region may authorize
the labour personnel department in the county where the venture is located to ratify the contract.

The joint venture may sign a collective labour contract with the venture’s trade union organization or sign contracts with individual
staff and workers. Once a contract is signed it should be observed by both sides. The modification of a contract at the request of
one side must be agreed upon by both sides and submitted for approval to the original approving organ.

In addition to the labour contracts, the joint venture may sign labour service contracts with the units which provide personnel or
the local labour service companies on recruitment, employment and dismissal of workers and staff.

Article 6

The joint venture shall strengthen the work of regularly training the staff and workers to improve their technical skills. Expenses
incurred in training may be handled in accordance with the “Supplementary Circular on the Interim Provisions for Control and Spending
of Educational Funds for Staff and Workers” issued by the Ministry of Finance in 1982.

Article 7

When a joint venture wants to dismiss redundant staff and workers as a result of a change in production and technical conditions or
other reasons during the contractual period, it must notify the venture’s trade union organization and the dismissed staff and workers
one month before the dismissal. The dismissal decision shall be submitted for the record to the department in charge of the venture
and the local labour personnel department.

Workers and staff should not be dismissed during the period of their treatment or recuperation for industrial injury and occupational
diseases or during the period of their treatment at hospitals for illness and injury irrelevant to their work. Women workers and
staff also should not be dismissed during their pregnancy over six months or during maternity leave.

The joint venture should give compensation to those workers and staff who are dismissed during the period of the labour contract or
after the expiration of the contract according to their length of work in the venture. The dismissed worker may be paid one month
of the average wage of the venture for each full year’s work. Those who have worked more than 10 years shall be paid one-and-half
months of the average wage of the venture for each full year’s work, starting from the 11th years.

Article 8

Workers and staff of a joint venture may resign for special reasons during the period of the labour contract and shall submit their
application to the venture through their trade union organization one month before their resignation. The venture shall permit the
resignations of workers and staff who have just reasons, but shall not give them compensation.

If the workers and staff, who received training provided by the venture want to resign during the contractual period, they shall compensate
the venture for an agreed amount of the expenses incurred in their training.

Article 9

The joint venture shall give moral encouragement or material reward to those workers and staff who observe the venture’s rules and
regulations in an exemplary way and make fine achievements in fulfilling their tasks of production or other work, carrying on technical
innovation and improving management. Those who have made outstanding achievements shall be promoted or their wage levels increased.
The decision for such awards shall be made by the general manager and vice-general managers.

Article 10

The joint venture may, in accordance with the seriousness of the case, impose criticism or punishment on staff and workers who violate
the rules, regulations or labour discipline with adverse effects to the joint venture necessary, may impose a fine or economic sanction.
Those who commit serious mistakes and refuse to mend their ways despite repeated admonition may be expelled.

The sanctions shall be decided upon by the general manager and vice-general managers after seeking opinion from the venture’s trade
union organization and listening to the argument from the persons concerned. The sanction of discharge must be reported to the department
in charge of the venture and the labour personnel department for the record.

Article 11

When the joint venture administers reward or punishment to those workers and staff appointed by the administrative organs of the government,
the power and procedures for the ratification shall be handled in accordance with the “Interim Provisions of the State Council on
Awarding and Punishment of Personnel in the State Administrative Organs” issued in 1957.

Article 12

The joint venture shall pay the Chinese workers and staff in accordance with the wage levels stipulated in Article 8 of the Management
Provisions. The increase in wages shall be decided upon by the board of directors in the light of the regulations of contract, articles
of association and the state of the venture’s production and management. It is not necessary to keep to the scales set by state-run
enterprises.

The real wages of the workers and staff of state-run enterprises in the locality in the same line of business stated in Article 8
of the Management Provisions means the average wages of the workers and staff in the state-run enterprises in the locality in the
same line of business and with similar production scales and technical conditions. The concrete amounts of the wages shall be examined
and approved by the local labour personnel department together with the financial department and the department in charge of the
venture.

Workers and staff who leave a joint venture and join another unit shall be paid in accordance with the system of wage standards, bonuses
and subsidies of the unit.

Article 13

The joint venture must pay the Chinese workers and staff, in accordance with Article 11 of the Management Provisions, labour insurance,
welfare benefits and various government subsidies on house rent, prices of basic daily necessities, culture, education, health protection,
etc. for staff and workers. The amount of these funds shall be examined and approved by the labour personnel department in the province,
municipality or autonomous region together with the financial department and the department concerned, and readjusted in line with
changes in the standards of the labour insurance, welfare benefits and various government subsidies in state-run enterprises.

The labour insurance welfare benefits of a joint venture paid to the Chinese participants in a joint venture shall be used under the
supervision of the venture’s trade union organization. The subsidies shall be handled according to the relevant regulations of the
government.

Article 14

The labour insurance and welfare benefits of the staff and workers in a joint venture shall be handled in accordance with the relevant
regulations of the Chinese government for state-run enterprises. The joint venture may express its opinion on the clauses or items
in the regulations if it considers them unsuitable and may make proposals which shall be implemented after approval by the labour
personnel department in the province, municipality or autonomous region for ratification with the consent of the financial department
and the trade union at the same level.

Article 15

The joint venture should pay attention to strengthening labour protection for its staff and workers and appoint proper and sufficient
personnel in charge of the labour protection work. Effective measures must be taken to improve the labour conditions of the staff
and workers and ensure safety in production and civilized production. The expenses in this field may be settled in accordance with
the “Circular On Strengthening Protection from Silicon Dust and Toxic Materials” issued by the State Planning Commission in 1973.

Article 16

The joint venture shall implement the systems of work schedules, holidays and paid leave of absence which are carried on in China’s
state-run enterprises. It must distribute labour protection appliances to the staff and workers with reference to the standards in
state-run enterprises.

Article 17

When staff and workers die or suffer injuries from industrial accidents or sustain severe occupational poisoning and other injurious
occupational accidents, the joint venture shall report the matter promptly to the department in charge of the venture and local labour
personnel department and trade union organization, and accept their investigation and treatment.

Article 18

The joint venture in special economic zones should implement the labour management provisions stipulated by the zone.

Article 19

These Measures shall be implemented under the supervision of the labour personnel departments at various levels.

Article 20

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



 
The Ministry of Labour and Personnel
1983-12-24

 







REGIONAL NATIONAL AUTONOMY






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

     (Effective Date:1984.10.01–Ineffective Date:)

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON REGIONAL NATIONAL AUTONOMY

(Adopted at the Second Session of the Sixth National People’s Congress, promulgated by Order No.13 of the President of the People’s
Republic of China on May 31, 1984, and effective as of October 1, 1984)

CONTENTS

CHAPTER I GENERAL PROVISIONS

CHAPTER II ESTABLISHMENT OF NATIONAL AUTONOMOUS AREAS AND THE STRUCTURE OF THE ORGANS OF SELF-GOVERNMENT

CHAPTER III THE POWER OF AUTONOMY OF THE ORGANS OF SELF-GOVERNMENT

CHAPTER IV THE PEOPLE’S COURTS AND PEOPLE’S PROCURATORATES OF NATIONAL AUTONOMOUS AREAS

CHAPTER V RELATIONS AMONG NATIONALITIES WITHIN A NATIONAL AUTONOMOUS AREA

CHAPTER VI LEADERSHIP AND ASSISTANCE FROM STATE ORGANS AT HIGHER LEVELS

CHAPTER VII SUPPLEMENTARY PROVISIONS

PREFACE

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

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

Regional national autonomy has played an enormous role in giving full play to the initiative of all nationalities as masters of the
country, in developing among them a socialist relationship of equality, unity and mutual assistance, in consolidating the unification
of the country and in promoting socialist construction in the national autonomous areas and the rest of the country. The system of
regional national autonomy will have a still greater role to play in the country’s socialist modernization in the years to come.

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

Under the leadership of the Communist Party of China and the guidance of Marxism-Leninism and Mao Zedong Thought, the people of various
nationalities in the autonomous areas shall, together with the people of the whole country, adhere to the people’s democratic dictatorship
and to the socialist road, concentrate their efforts on socialist modernization, speed up the economic and cultural development of
the national autonomous areas, work towards their unity and prosperity and strive for the common prosperity of all nationalities
and for the transformation of China into a socialist country with a high level of culture and democracy.

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

CHAPTER I GENERAL PROVISIONS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The state shall protect normal religious activities. No one may make use of religion to engage in activities that disrupt public order,
impair the health of citizens or interfere with the educational system of the state.

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

CHAPTER II ESTABLISHMENT OF NATIONAL AUTONOMOUS AREAS AND THE STRUCTURE OF THE ORGANS OF SELF-GOVERNMENT

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

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

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

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

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

Once defined, the boundaries of a national autonomous area may not be altered without authorization. When an alteration is found necessary,
it shall be proposed by the relevant department of the state organ at the next higher level after full consultation with the organ
of self-government of the national autonomous area before it is submitted to the State Council for approval.

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

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

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

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

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

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

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

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

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

CHAPTER III THE POWER OF AUTONOMY OF THE ORGANS OF SELF-GOVERNMENT

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

   Article 20. If a resolution, decision, order or instruction of a state organ at a higher level does not suit the conditions in a national autonomous
area, the organ of self-government of the area may either implement it with certain alterations or cease implementing it after reporting
to and receiving the approval of the state organ at a higher level.

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

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

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

   Article 23. When recruiting personnel, enterprises and institutions in national autonomous areas shall give priority to minority nationalities
and may enlist them from the population of minority nationalities in rural and pastoral areas. When recruiting personnel from the
population of minority nationalities in rural and pastoral areas, autonomous prefectures and autonomous counties must report to and
secure the approval of the people’s governments of the provinces or autonomous regions.

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

   Article 25. Under the guidance of state plans, the organs of self-government of national autonomous areas shall independently arrange for and
administer local economic development.

   Article 26. Under the guidance of state plans, the organs of self-government of national autonomous areas shall work out the guidelines, policies
and plans for economic development in the light of local characteristics and needs.

   Article 27. Given the prerequisite of adherence to the principles of socialism, the organs of self-government of national autonomous areas shall,
in accordance with legal stipulations and in the light of the characteristics of local economic development, rationally readjust
the relations of production and reform the structure of economic administration.

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

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

The organs of self-government of national autonomous areas shall protect and develop grasslands and forests and organize and encourage
the planting of trees and grass. Destruction of grasslands and forests by any organization or individual by whatever means shall
be prohibited.

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

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

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

   Article 31. The organs of self-government of national autonomous areas shall independently arrange for the use of industrial, agricultural and
other local and special products after fulfilling the quotas for state purchase and for state distribution at a higher level.

   Article 32. In accordance with state provisions, the organs of self-government of national autonomous areas may pursue foreign economic and trade
activities and may, with the approval of the State Council, open foreign trade ports.

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

While conducting foreign economic and trade activities, the organs of self-government of the national autonomous areas shall enjoy
preferential treatment by the state with regard to the proportion of foreign exchange retained by them and in other respects.

   Article 33. The finance of a national autonomous area constitutes a particular level of finance and is a component of state finance.

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

The revenues and expenditures of national autonomous areas shall be specified by the State Council on the principle of giving preferential
treatment to such areas.

In accordance with stipulations concerning the state financial system, if the revenues of a national autonomous area exceeds its expenditures,
a fixed amount of the surplus shall be delivered to the financial department at a higher level. Once fixed, the amount to be delivered
may remain unchanged for several years. If the expenditures of a national autonomous area exceeds its revenues, a subsidy shall be
granted by the financial department at a higher level.

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

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

   Article 34. In accordance with the principles set by the state and in the light of local conditions, the organs of self-government of national
autonomous areas may work out supplementary provisions and concrete procedures with regard to the standards of expenditure, the sizes
of the staff and the quotas of work for their respective areas. The supplementary provisions and concrete procedures worked out by
autonomous regions shall be reported to the State Council for the record; those worked out by autonomous prefectures and autonomous
counties shall be reported to the people’s governments of the relevant provinces or autonomous regions for approval.

   Article 35. While implementing the tax laws of the state, the organs of self-government of national autonomous areas may grant tax exemptions
or reductions for certain items of local financial income which should be encouraged or given preferential consideration in taxation,
in addition to items on which tax reduction or exemption require unified examination and approval by the state. The decisions of
autonomous prefectures and autonomous counties on tax deduction and exemption shall be reported to the people’s governments of the
relevant provinces or autonomous regions for approval.

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

   Article 37. The organs of self-government of national autonomous areas shall independently develop education for the nationalities by eliminating
illiteracy, setting up various kinds of schools, spreading compulsory primary education, developing secondary education and establishing
specialized schools for the nationalities, such as teachers schools, secondary technical schools, vocational schools and institutes
of nationalities to train specialized personnel from among the minority nationalities.

The organs of self-government of national autonomous areas may set up public primary schools and secondary schools, mainly boarding
schools and schools providing subsidies, in pastoral areas and economically under developed, sparsely populated mountain areas inhabited
by minority nationalities.

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

   Article 38. The organs of self-government of national autonomous areas shall independently develop literature, art, the press, publishing, radio
broadcasting, the film industry, television and other cultural undertakings in forms and with characteristics unique to the nationalities.

The organs of self-government of national autonomous areas shall collect, sort out, translate and publish books of the nationalities
and protect the scenic spots and historical sites in their areas, their precious cultural relics and their other important historical
and cultural legacies.

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

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

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

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

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

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

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

   Article 44. In accordance with legal stipulations, the organs of self-government of national autonomous areas shall, in the light of local conditions,
work out measures for family planning.

   Article 45. The organs of self-government of national autonomous areas shall protect and improve the living environment and the ecological environment
and shall prevent and control pollution and other public hazards.

CHAPTER IV THE PEOPLE’S COURTS AND PEOPLE’S PROCURATORATES OF NATIONAL AUTONOMOUS AREAS

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

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

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

   Article 47. In the prosecution and trial of cases, the people’s courts and people’s procuratorates of national autonomous areas shall use the
language commonly used in the locality. They shall guarantee that citizens of the various nationalities enjoy the right to use the
spoken and written languages of their own nationalities in court proceedings. The people’s courts and people’s procuratorates should
provide translation for any party to the court proceedings who is not familiar with the spoken or written languages commonly used
in the locality. Legal documents should be written, according to actual needs, in the language or languages commonly used in the
locality.

CHAPTER V RELATIONS AMONG NATIONALITIES WITHIN A NATIONAL AUTONOMOUS AREAS

   Article 48. The organ of self-government of a national autonomous area shall guarantee equal rights for the various nationalities in the area.

The organ of self-government of a national autonomous area shall unite the cadres and masses of the various nationalities and give
full play to their initiative in a joint effort to develop the area.

   Article 49. The organ of self-government of a national autonomous area shall persuade and encourage cadres of the various nationalities to learn
each other’s spoken and written languages. Cadres of Han nationality should learn the spoken and written languages of the local minority
nationalities. While learning and using the spoken and written languages of their own nationalities, cadres of minority nationalities
should also learn Putonghua and the written Chinese (Han) language commonly used throughout the country.

Awards should be given to state functionaries in national autonomous areas who can use skillfully two or more spoken or written languages
that are commonly used in the locality.

   Article 50. The organ of self-government of a national autonomous area shall help other minority nationalities living in concentrated communities
in the area establish appropriate autonomous areas or nationality townships.

The organ of self-government of a national autonomous area shall help the various nationalities in the area develop their economic,
educational, scientific, cultural, public health and physical culture affairs.

The organ of self-government of a national autonomous area shall give consideration to the characteristics and needs of nationalities
living in settlements scattered over the area.

   Article 51. In dealing with special issues concerning the various nationalities within its area, the organ of self-government of a national autonomous
area must conduct full consultation with their representatives and respect their opinions.

  

DETAILED RULES FOR THE IMPLEMENTION OF THE TRADEMARK LAW






Detailed Rules for the Implemention of the Trademark Law of the PRC

    

(Effective Date 1988.01.13)

CONTENTS

CHAPTER I GENERAL PRINCIPLES

CHAPTER II APPLICATION FOR TRADEMARK REGISTRATION

CHAPTER III EXAMINATION OF TRADEMARK REGISTRATION

CHAPTER IV MODIFICATION, ASSIGNMENT AND RENEWAL OF REGISTERED

TRADEMARKS AND ADJUDICATION OF DISPUTES

CHAPTER V CONTROL OF THE USE OF TRADEMARKS

CHAPTER VI PROTECTION OF THE EXCLUSIVE RIGHT TO USE REGISTERED

TRADEMARKS

CHAPTER VII SUPPLEMENTARY PRINCIPLES

CHAPTER I GENERAL PRINCIPLES

   Article 1. These Detailed Implementing Rules are formulated in accordance with the provisions of Article 42 of the Trademark
Law of the People’s Republic of China (hereinafter referred to as the Trademark Law).

   Article 2. An applicant for trademark registration shall be a legally registered enterprise or individual industrial or commercial
household operation which is able to bear its civil liabilities independently, a public institution with corporate
capacity or a foreigner or foreign enterprise which complies with the provisions of Article 9 of the Trademark Law.

   Article 3. An application for a matter such as registering a trademark, assigning registration, renewing registration, modifying registration
of a person’s name or address or the reissue of a trademark certificate shall be verified and passed on by
the applicant’s local administration for industry and commerce at county level or above (hereinafter referred to as
the verification and transfer organ) or an organisation authorised by the State Administration for Industry and
Commerce shall act as agent.

If a foreigner or a foreign enterprise applies to register a trademark in China or requires to carry out
other matters concerning trademarks, an organisation designated by the State Administration for Industry and Commerce
shall act as agent.

   Article 4. Fees shall be paid in accordance with regulations when applications are made for matters such as registering
a trademark, assigning registration, renewing registration, modification, reissue or evaluation and examination.

   Article 5. The Trademark Office of the State Administration for Industry and Commerce (hereinafter referred to as
the Trademark Office) shall establish a Register of trade in which it shall record registered trademarks and other
matters concerning trademarks.

The Trademark Office shall design and arrange the printing and issue of Trademark Notices Which shall carry
information on registered trademarks and other relevant matters.

   Article 6. Names of administrative areas at county level and above and foreign place names with which the public are familiar
shall not be permitted to be used as trademarks.

A trademark using a name such as those outlined in the preceding paragraph which has already been verified, approved
and registered shall continue to valid.

   Article 7. Pharmaceuticals for human use and tobacco products listed by the State and publicly announced by the State Administration
for Industry and Commerce shall be required to use a registered trademark.

Other products stipulated by the State as requiring a registered trademark shall be publicly announced by the State
Administration for Industry and Commerce.

   Article 8. The State Administration for Industry and Commerce shall establish a Trademark Review and Adjudication Board which
shall evaluate and examine matters in accordance with the provisions of Articles 21, 22, 27 and 35 of the Trademark
Law and Article 23 of these Detailed Implementing Rules and shall make final decisions and provide adjudication.

CHAPTER II APPLICATION FOR TRADEMARK REGISTRATION

   Article 9. When applying for trademark registration, applications shall be filed in accordance with the item category as
prescribed in the commodity classification table. Each application for the registration of a trademark submitted
to the Trademark Office shall include one copy of an Application for Trademark Registration, 10 copies of the
design of the trademark (if a coloured trademark with specified colours, 10 copies of colour designs of the
trademark shall be included) and one black and white ink draft.

The trademark design shall be distinct and easy to stick on, shall be printed on smooth, clean and durable
paper or be substituted by a photograph and its length and width shall not exceed 10 cm or be less than 5 cm.

   Article 10. A fountain pen, in or a typewriter shall be used to complete applications for trademark registration and other
related documents and writing shall be neat and clear.

The name and seal of the trademark registration applicant shall the same as that which has been verified and approved
or registered. Items submitted shall not exceed the verified and approved or registered scope of operations of
the applicant. The name of a commodity shall be filled in in accordance with the commodity classification table.
If the name of a commodity has yet to be entered in the commodity classification table, a description of the item
shall be attached.

   Article 11. If applying to register a trademark for a pharmaceutical for human use, a licence to produce pharmaceuticals or a
licence to deal in pharmaceuticals which has been issued by a public health administrative department shall be attached.

If applying to register a trademark for cigarettes, cigars or packaged pipe tobacco, a certificate issued by the
State organ in charge of tobacco authorising its production shall be attached.

If applying to register a trademark for any other item which requires a registered trademark in accordance with State
regulations, a certificate of approval from the relevant department in charge shall be attached.

   Article 12. The date of application for the registration of a trademark shall be the date on which the Trademark Office receives the
application. An application number shall be issued if application procedures are fulfilled and the application
form is completed in accordance with regulations. If application procedures are not fulfilled or the application
form is not completed in accordance with regulations, the form shall be returned and no date of application shall be retained.

   Article 13. If two or more applicants apply to register identical or similar trademarks for the same or a similar item on the
same day, each applicant shall send proof of the date of first use of the trademark to the Trademark Office within the
time limit stipulated by the Office in its letter of notification. If usage began on the same day or if yet to be used,
the parties shall meet for discussion. If this consultation exceeds 30 days without resulting in an agreement, the Trademark
Office shall make a ruling.

   Article 14. when a foreigner or a foreign enterprise applies to register a trademark or to handle another matter concerning a
trademark, it shall complete the relevant forms in Chinese and shall provide its agent with a power of attorney.
The power of attorney shall stipulate the scope of delegated authority and the nationality of the agent.

Notarisation and authentication procedures for a power of attorney or other relevant certificates shall be handled in accordance
with the principle of reciprocity. Documents in a foreign language shall have a Chinese translation attached.

   Article 15. The Trademark Office shall accept and hear cases requesting priority handling of trademark registration. Detailed procedures
shall be handled in accordance with regulations promulgated by the State Administration for Industry and Commerce.

CHAPTER III EXAMINATION OF TRADEMARK REGISTRATION

   Article 16. The Trademark Office shall examine applications which have been issued with an application number and those trademarks
which pass preliminary examination and approval shall be reported in a Trademark Notice. If an application is rejected,
the applicant shall be sent a rejection notice and a copy of this notice shall be sent to the verification and
transfer organ.

   Article 17. If an applicant requests a review of a refused application, it shall lodge an Application for a Review of a Refused Trademark
with the Trademark Review and Adjudication Board within 15 days of receiving the rejection notice and, at the same
time, shall attach the original Application for Trademark Registration, 10 copies of the original trademark design,
one copy of a black and white ink draft and the rejection notice. A copy of the Application for a review of a Refused
Trademark shall be sent to the verification and transfer organ.

The Trademark Review and Adjudication Board shall issue written notification of its final decision to the
applicant and a copy of the notice shall be sent to the verification and transfer organ. If the final decision is in
favour of passing the preliminary examination and approval of a trademark, the matter shall be transferred to the Trademark
Office for handling.

   Article 18. If there is an objection to a trademark which has been publicly announced by the Trademark Office following
preliminary examination and approval, the dissenting party shall send two copies of its letter of dissension to the Trademark
Office. The letter shall state clearly the date of the Trademark Notice which reported the trademark in question,
the page number and its preliminary examination and approval number. The Trademark Office shall prescribe a time
for the applicant to respond to the letter of dissension and shall make a ruling based on the facts and reasons provided
by the parties concerned.If no response is given within the time prescribed, the Trademark Office shall make a ruling.

The trademark Office shall notify the parties concerned of its ruling on the dispute and shall send a copy of the
notice to the verification and transfer organ.

   Article 19. A party dissatisfied with the ruling of the Trademark Office on a dispute shall send two copies of an Application for
a Review of a Trademark Dispute to the Trademark Review and Adjudication Board within 15 days of receiving notification
of the ruling on the trademark dispute, and shall also send a copy of the Application to the verification and transfer
organ.

The Trademark Review and Adjudication Board shall issue written notification of its final decision to the parties
concerned, shall send a copy to the verification and transfer organ and shall transfer the matter to the Trademark Office
for handling.

CHAPTER IV MODIFICATION, ASSIGNMENT AND RENEWAL OF REGISTERED TRADEMARKS AND ADJUDICATION OF DISPUTES

   Article 20. If applying to modify the name of a trademark registrant, an Application to Modify the Name of a Trademark Registrant
and certification of the modification shall be sent to the Trademark Office and the original Trademark Registration
Certificate shall be returned. After verification and approval by the Trademark Office, the original Trademark Registration
Certificate, with approval of modification noted on it, shall be returned to the applicant and a public announcement shall
be made.

If applying to modify the address of a trademark registrant or other registered items, an Application to Modify
the Address of a Trademark Registrant or an application to Modify Other Registered Items Pertaining to a Trademark,
together with certification of the modification, shall be sent to the Trademark Office and the original Trademark Registration
Certificate shall be returned. After verification and approval by the Trademark Office, the original Trademark
Registration Certificate, with approval of modification noted on it, shall be returned to the applicant
and a public announcement shall be made.

If modification is to be made to the name or address of a trademark registrant, the registrant shall modify
all of its registered trademarks at the one time.

   Article 21. If applying to assign a registered trademark, an Application to Assign a Registered Trademark shall be sent
to the Trademark Office and the original Trademark Registration Certificate shall be returned. The verification
and transfer organ in the local district of the transferee shall handle matters of verification and transfer. A transferee
shall meet the requirements of Article 2 of these Detailed Implementing Rules. After verification and approval
by the Trademark Office, the original Trademark Registration Certificate, with approval of assignment noted
on it, shall be issued to the assignee and a public announcement shall be made.

If a registered trademark is to be assigned, the trademark registrant shall assign all identical or similar trademarks
for the same or similar goods at the one time. If a trademark for a commodity such as those prescribed in Article
7 of these Detailed Implementing Rules is assigned, the assignee shall provide a certificate from the relevant department
in accordance with the provisions of Article 11 of these Detailed Implementing Rules.

   Article 22. If applying to renew the registration of a trademark, an Application to Renew a Registered Trademark and five
copies of the trademark design shall be sent to the Trademark Office and the Trademark Registration Certificate
shall be returned. After verification and approval by the Trademark Office, the original Trademark Registration Certificate,
with approval of renewal noted on it, shall be returned to the applicant and a public announcement shall be made.

   Article 23. If an applicant disputes the decision of the Trademark Office to reject an application to assign or renew registration
of a trademark, it shall lodge an Application for a Review of an Assignment Rejection or an Application for a Review
of a Renewal rejection with the Trademark Review and Adjudication board within 15 days of receiving the rejection
notice and, at the same time, shall attach the original Application to Assign a Registered Trademark or the
Application to Renew a Registered Trademark and the rejection notice.

The Trademark Review and Adjudication Board shall issue written notification of its final decision to the applicant
and send a copy of the notice to the verification and transfer organ. If the final decision is in favour of the
assignment or renewal of trademark registration, the matter shall be transferred to the Trademark Office for handling.

   Article 24. If a trademark registrant disputes a trademark already registered by another party, it shall lodge two copies of an
Application for Adjudication of a Trademark Dispute with the Trademark Review and Adjudication Board within one
year of the date of publication of the trademark registration.

If the Trademark Review and Adjudication Board rules in favour of cancelling the disputed trademark, the
matter shall be transferred to the Trademark Office for handling, a public announcement shall be made and a copy
of the decision shall be sent to the verification and transfer organ. The party which had the dispute brought against
it shall, within 15 days of receiving notice of the final ruling on the trademark dispute, hand the original Trademark
Registration Certificate to the local verification and transfer organ for its subsequent transfer to the Trademark Office.

   Article 25. Any party which believes that an improper trademark has been registered may lodge an Application for Adjudication
on the Cancellation of the Registration of an Improper Trademark, except in a case where a ruling on a dispute has already
been made.

If the Trademark Review and Adjudication Board rules in favour of cancelling a disputed trademark, the
matter shall be transferred to the Trademark Office for handling, a public announcement shall be made and a copy
of the decision shall be sent to the verification and transfer organ. The original trademark registrant shall,
within 15 days of receiving notice of the cancellation ruling, hand the original Trademark Registration Certificate
to the local verification and transfer organ for its subsequent transfer to the Trademark Office.

CHAPTER V CONTROL OF THE USE OF TRADEMARKS

   Article 26. If a registered trademarks is used, the characters Registered Trademark or the symbol for registration or (R) shall
be marked. If it is unsuitable to mark a product itself, the registered trademark shall be noted on its packaging,
in is instruction booklet or on other attachments.

   Article 27. If a Trademark Registration Certificate is lost or damaged, an application shall be made for it to be reissued. The applicant
shall lodge an Application for the Reissue if a Trademark Certificate and five copies of the trademark design
to the Trademark Office. If the Trademark Registration Certificate has been lost, a lost property notice shall be placed
in a newspaper issued at provincial level or above and a copy of the newspaper shall be sent to the trademark Office.
If the Trademark Registration Certificate has been damaged, it shall be sent to the Trademark Office.

   Article 28. If any of the acts referred to in items (1), (2) or (3) of Article 30 of the Trademark Law occur, the administration for industry
and commerce shall notify the trademark registrant to rectify the matter within a stipulated period. If the registrant refuses
to rectify the situation, the administration for industry and commerce in the local district of the registrant shall request
the Trademark Office to cancel the registered trademark.

   Article 29. Any person may apply to the Trademark Office for the registration of a trademark to be cancelled if the provisions
of item (4) of Article 30 of the Trademark Law apply. The Trademark Office shall notify the trademark registrant to provide,
within a specified period, proof of use of its trademark. If proof of use is not provided within the specified period or
if it is not valid, the Trademark Office shall cancel the registered trademark.

Use of a trademark as referred to in the preceding paragraph shall include use in advertising or exhibitions.

   Article 30. The restrictions of the provisions of Article 32 of the Trademark Law shall not apply to an application to register,
for an identical or similar commodity, a trademark which is identical with or similar to one which is cancelled
in accordance with the provisions of Article 29 of these Detailed Implementing Rules.

   Article 31. In a case where the provisions of Article 31 and item (3) of Article 34 of the Trademark Law apply, the administration
for industry and commerce shall order the matter to be rectified in a stipulated period. In a serious case, it shall
order self-criticism to be undertaken, circulate a notice of criticism and impose a fine of up to 20% of
the amount made through the illegal operations or up to two times the illegal profit. Goods which are poisonous or
harmful and which are without a use value shall be destroyed by melting or burning. If a registered trademark has been
used, it shall be cancelled in accordance with the provisions prescribed in the Trademark Law.

   Article 32. In a case where the provisions of items (1) or (2) Article 34 of the Trademark Law or Article 6 of these Detailed Implementing
Rules apply, the administration for industry and commerce shall prohibit the goods from being advertised and shall
seal up for safekeeping or take custody of the trademark symbol, order the matter to be rectified in a specified
period and, depending on the seriousness of the case, may circulate a notice of criticism and impose
a fine of up to 20% of the amount made through the illegal operations.

   Article 33. In a case where the provisions of Article 5 of the Trademark Law are violated, the administration for industry and
commerce shall prohibit the sale and advertising of the goods in question, shall seal up for safekeeping or take
custody of the trademark symbol and, depending on the seriousness of the case, may impose a fine of up to 10% of the
amount made through the illegal operations.

   Article 34. No person shall be permitted to illegally print, make, purchase or sell trademark symbols.

If the provisions of the preceding paragraph are violated, the administration for industry and commerce shall
halt the activity, take custody of any trademark symbols and, depending on the seriousness of the case, may issue
a fine of up to 20% of the amount made through the illegal operations. If a party is selling symbols of its own registered
trademark, the Trademark Office may also cancel its registered trademark. If the case involves violation of the exclusive
right to use a registered trademark, the matter shall be handled in accordance with the provisions of Article 43 of these
Detailed Implementing Rules.

   Article 35. If a trademark registrant permits another party to use its registered trademark, a trademark usage licence agreement shall
be signed. The licensor shall send, within a stipulated period, a copy of the licence agreement to its local administration
for industry and commerce at county level for reference filing. This organ shall then report details of the matter to
the Trademark Office for its records.

If the provisions of the preceding paragraph are violated, the administration for industry and commerce shall
order the matter to be rectified within a stipulated period. If the parties concerned refuse to rectify the matter,the
licensor’s local administration for industry and commerce shall ask the Trademark Office to cancel the registered
trademark and shall take custody of the trademark symbols of the licensee.

   Article 36. If a trademark registrant permits another party to use its registered trademark, the licensee shall meet the requirements
prescribed in Article 2 of these Detailed Implementing Rules.

If a party with permission to use a trademark requires to use it on a commodity such as those prescribed in
Article 7 of these Detailed Implementing Rules, the licensee shall attach a certificate from the relevant department,
in accordance with Article 11 of these Detailed Implementing Rules, when sending a copy of the licence agreement
for reference filing.

   Article 37. If the Trademark Office makes a decision to cancel a trademark registration in accordance with the provisions of Article
30 or 31 of the Trademark Law or Articles 34 or 35 of these Detailed Implementing Rules, written notification shall be
sent to the trademark registrant and, at the same time, a copy of the notice shall be sent to the original verification
and transfer organ. This organ shall take custody of the Trademark Registration Certificate and shall return it to
the Trademark Office.

Trademarks which are revoked or cancelled by the Trademark Office shall be announced publicly.

   Article 38. If a trademark registrant applies to cancel its registered trademark, it shall lodge an Application to Cancel a Trademark
with the Trademark Office and shall return its original Trademark Registration Certificate.

   Article 39. If a trademark registrant disagrees with the decision of the Trademark Office to revoke its registered trademark, it
shall lodge an Application to Review the Revoking of a Trademark to the Trademark Review and Adjudication Board within
15 days of receiving notice of the revocation ruling.

The Trademark Review and Adjudication Board shall issue written notification of its final decision to
the trademark registrant and shall also send a copy of the notice to the original verification and transfer organ.
If the final decision rescinds the revocation ruling, the matter shall be transferred to the Trademark Office for handling.

   Article 40. If a party disagrees with a decision relating to the handling of a case (except a decision to revoke a trademark registration)as
made by the administration for industry and commerce in accordance with the provision of Articles 31, 33, 34 or 35 of these
Detailed Implementing Rules, the Party concerned, within 15 days of receiving such notification,may apply to
a higher level administration for industry and commerce for a review. The higher level administration for industry
and commerce shall issue a decision on the review within 45 days of receiving the review application. If a
party disagrees with the fine imposed by a higher level administration for industry and commerce in its review decision
made in accordance with the provisions of Articles 31, 32, 33 or 34 of these Detailed Implementing Rules, the
party concerned may file a suit in the People’s Court within 15 days of receiving notification of the review decision.
If the party fails to initiate legal proceedings and fails to comply with the decision within the time prescribed,
the administration for industry and commerce shall apply to the People’s Court for enforcement.

CHAPTER VI PROTECTION OF THE EXCLUSIVE RIGHT TO USE REGISTERED TRADEMARKS

   Article 41. Any of the following acts shall constitute an infringement of the exclusive right to use a registered trademark as referred
to in item (3) of Article 38 of the Trademark Law:

(1) Dealing in goods which infringe on the exclusive right of another party to use a registered trademark;

(2) Using, as the name or decoration on a commodity, a script or pattern which is identical or similar to the registered
trademark of another party which uses it on the same or similar goods, with the similarity being sufficient to cause
mistaken identity;

(3) Deliberately providing convenience in areas such as storage, transport, postage and concealment in order to allow
the infringement of the exclusive right of another party to use a registered trademark.

   Article 42. In the case of an act infringing on the exclusive right to use a registered trademark, any person may report to the administration
of industry and commerce at county level or above in the district of the infringer or the district where the act
of infringement has occurred in order to lodge a complaint or to inform against an offender. The infringed may also directly
file a suit in the People’s Court.

   Article 43. In the case of an act infringing on the exclusive right to use a registered trademark, the administration for industry
and commerce shall order the immediate halting of the activity, seal up for safekeeping or take custody of the trademark
symbols, order the removal of the trademark from existing goods and packaging and order that the infringed is compensated
for any economic losses incurred. A notice of criticism may be circulated and a fine of up to 20% of the amount made
in the illegal operations or up to two times the profit gained through the infringement may be imposed, depending on the seriousness
of the case.

   Article 44. If a party disagrees with a decision on the handling of a case as made by the administration for industry and commerce
in accordance with the provisions of the preceding Article, the party concerned, within 15 days of receiving notice
of the decision, may lodge an application with a higher level administration for industry and commerce for
a review. The higher level administration for industry and commerce shall issue a decision on the review within
45 days of receiving the review application. If a party disagrees with the review decision of the higher level
administration for industry and commerce, it may file a suit in the People’s Court within 15 days of receiving
notification of the review decision. If the party fails to initiate legal proceedings and fails to comply with the decision
within the time prescribed, the administration for industry an

SUPPLEMENTARY PROVISIONS OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS CONCERNING THE PUNISHMENT OF THE CRIMES OF DIVULGING STATE SECRETS

Category  CRIMINAL LAW Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  Invalidated
Date of Promulgation  1988-09-05 Effective Date  1988-09-05 Date of Invalidation  1997-10-01


Supplementary Provisions of the Standing Committee of the National People’s Congress Concerning the Punishment of the Crimes of Divulging
State Secrets

(Adopted at the Third Meeting of the Standing Committee of the Seventh

National People’s Congress and promulgated by Order No.7 of the President of
the People’s Republic of China on September 5, 1988, and effective as of the
same date)(Editor’s Note: This Decision has been invalidated by the Criminal
Law of the People’s Republic of China revised at the Fifth Session of the
Eighth National People’s Congress on March 14, 1997, and effective on October
1, 1997)

    The Third Meeting of the Standing Committee of the Seventh National
People’s Congress has decided to make supplementary provisions to the Criminal
Law: Persons who steal, spy on, buy or illegally provide state secrets for
institutions, organizations and people outside the country shall be sentenced
to fixed-term imprisonment of not less than five years and not more than ten
years; if the circumstances are relatively minor, the offender shall be
sentenced to fixed-term imprisonment of not more than five years, criminal
detention or deprivation of political rights; if the circumstances are
especially serious, the offender shall be sentenced to fixed-term imprisonment
of not less than ten years, life imprisonment or the death penalty and shall
be deprived of political rights concurrently.






REGULATIONS OF THE STATE COUNCIL FOR ENCOURAGEMENT OF INVESTMENT BY TAIWAN COMPATRIOTS

STANDARDIZATION LAW OF THE PEOPLE’S REPUBLIC OF CHINA

The Standing Committee of the National People’s Congress

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

No.11

The Standardization Law of the People’s Republic of China which has been adopted at the Fifth Meeting of the Standing Committee of
the Seventh National People’s Congress on December 29, 1988 is promulgated now, and shall enter into force as of April 1, 1989.

President of the People’s Republic of China: Yang Shangkun

December 29, 1988

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

Chapter II Formulation of Standards

Chapter III Implementation of Standards

Chapter IV Legal Responsibility

Chapter V Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is formulated with a view to developing the socialist commodity economy, promoting technical progress, improving product
quality, increasing social and economic benefits, safeguarding the interests of the State and the people and suiting standardization
to the needs in socialist modernization and in the development of economic relations with foreign countries.

Article 2

Standards shall be formulated for the following technical requirements that need to be unified:

(1)

the varieties, specifications, quality and grades of industrial products as well as the safety and sanitary requirements for them;

(2)

the design, production, inspection, packing, storage, transportation and methods of operation of industrial products as well as the
safety and sanitary requirements for them in the process of production, storage and transportation;

(3)

technical requirements and testing methods related to environmental protection;

(4)

the designs, construction procedure and safety requirements for construction projects; and

(5)

technical terms, symbols, code names and drawing methods related to industrial production, project construction and environmental
protection.

Major agricultural products and other items that need to be standardized shall be designated by the State Council.

Article 3

The tasks of standardization shall include the formulation of standards and organization of and supervision over the implementation
of the standards.

Standardization shall be incorporated in the plan for national economic and social development.

Article 4

The State shall encourage the active adoption of international standards.

Article 5

The department of standardization administration under the State Council shall be in charge of the unified administration of standardization
throughout the country. Competent administrative authorities under the State Council shall, in line with their respective functions,
be in charge of standardization in their respective departments and trades.

The departments of standardization administration of provinces, autonomous regions and municipalities directly under the Central Government
shall be in charge of the unified administration of standardization within their respective administrative areas. Competent administrative
authorities under the governments of provinces, autonomous regions and municipalities directly under the Central Government shall,
in line with their respective functions, be in charge of standardization in their respective departments and trades within their
respective administrative areas.

The standardization administration departments and the competent administrative authorities of cities and counties shall, in line
with their respective functions as assigned by the governments of provinces, autonomous regions and municipalities directly under
the Central Government, be in charge of standardization within their respective administrative areas.

Chapter II Formulation of Standards

Article 6

National standards shall be formulated for the technical requirements that need to be unified nationwide. National standards shall
be formulated by the department of standardization administration under the State Council. Where, in the absence of national standards,
technical requirements for a certain trade need to be unified, trade standards may be formulated. Trade standards shall be formulated
by competent administrative authorities under the State Council and reported to the department of standardization administration
under the State Council for the record, and shall be annulled on publication of the national standards. Where, in the absence of
both national and trade standards, safety and sanitary requirements for industrial products need to be unified within a province,
an autonomous region or a municipality directly, under the Central Government, local standards may be formulated. Local standards
shall be formulated by departments of standardization administration of provinces, autonomous regions and municipalities directly
under the Central Government and reported to the department of standardization administration and the competent administrative authorities
under the State Council for the record, and shall be annulled on publication of the national or trade standards.

Where, in the absence of both national and trade standards for products manufactured by an enterprise, standards for the enterprise
shall be formulated to serve as the criteria for the organization of production. An enterprise’s standards for its products shall
be reported to the standardization administration department and the competent administrative authorities under the local government
for the record. Where national or trade standards have been formulated, the State shall encourage enterprises to formulate their
enterprise standards, which are more stringent than the national or trade standards, to be used in these enterprises.

Where the formulation of standards is otherwise provided for by law, such legal provisions shall be complied with.

Article 7

National standards and trade standards shall be classified into compulsory standards and voluntary standards. Those for safeguarding
human health and ensuring the safety of the person and of property and those for compulsory execution as prescribed by the laws and
administrative rules and regulations shall be compulsory standards, the others shall be voluntary standards.

The local standards formulated by standardization administration departments of provinces, autonomous regions and municipalities directly
under the Central Government for the safety and sanitary requirements of industrial products shall be compulsory standards within
their respective administrative area.

Article 8

The formulation of standards shall be conducive to ensuring safety and the people’s health, safeguarding consumer interests and protecting
the environment.

Article 9

The standards to be formulated shall be conducive to a rational use of the country’s resources, a wider utilization of scientific
and technological gains and the enhancement of economic returns, conform to operation instructions, increase the universality and
interchangeability of products, and be technologically advanced and economically rational.

Article 10

The standards to be formulated shall be coordinated with and supported by related standards.

Article 11

The standards to be formulated shall help promote economic and technological cooperation with foreign countries and foreign trade.

Article 12

The roles of trade associations, scientific research institutions and academic organizations shall be brought into play in the formulation
of standards.

A department engaged in the formulation of standards shall organize a committee on standardization technology composed of specialists,
which shall be responsible for the drafting of the standards and shall participate in the examination of the draft standards.

Article 13

After the standards come into force, the department that formulated them shall, in the light of scientific and technological developments
and the needs in economic construction, make timely reviews of the current standards to determine if they are to remain effective
or are to be revised or annulled.

Chapter III Implementation of Standards

Article 14

Compulsory standards must be complied with. It shall be prohibited to produce, sell or import products that are not up to the compulsory
standards. With regard to voluntary standards, the State shall encourage their adoption by enterprises on an optional basis.

Article 15

With respect to products for which national or trade standards have been formulated enterprises may apply to the standardization administration
department under the State Council or agencies authorized by the same department for product quality authentication. For products
which are authenticated to conform to the standards, certificates shall be issued by the department that made the authentication
and the use of the prescribed authentication marks shall be permitted on such products and the packing thereof.

If products for which authentication certificates have been granted do not conform to national or trade standards, or if products
have not undergone authentication or found not up to the standards after the authentication proceedings, no authentic marks shall
be permitted for use on such products leaving factories for sale.

Article 16

Technical requirements for export products shall comply with contractual provisions.

Article 17

The development of new products, improvement of products or technical renovation by an enterprise shall conform to standardization
requirements.

Article 18

Departments of standardization administration under governments at or above the county level shall be responsible for supervision
over and inspection of the implementation of the standards.

Article 19

Departments of standardization administration under governments at or above the county level may, in accordance with needs, establish
inspection organizations or authorize inspection organizations of other units to examine whether products conform to the standards.
Where the laws and administrative rules and regulations provide otherwise on inspection organizations, such provisions shall apply.

Disputes over whether a product conforms to the standards shall be handled in accordance with the inspection data provided by the
inspection organizations as specified in the preceding paragraph.

Chapter IV Legal Responsibility

Article 20

Whoever produces, sells or imports products that do not conform to the compulsory standards shall be dealt with according to law by
the competent administrative authorities as prescribed by the laws and administrative rules and regulations. In the absence of such
prescriptions, his products and unlawful proceeds shall be confiscated and he shall be concurrently fined by the administrative authorities
for industry and commerce; where serious consequences are caused and crimes are constituted, the person directly responsible shall
be investigated for criminal responsibility in accordance with the law.

Article 21

Where authentication marks are used on products leaving a factory for sale, for which authentication certificates have been issued
but which do not conform to national or trade standards, the enterprise concerned shall be ordered by the department of standardization
administration to stop the sale and shall be fined concurrently; where the circumstances are serious, the authentication certificates
shall be revoked by the department that made the authentication.

Article 22

Whoever uses authentication marks, without authorization, on products leaving a factory for sale, which have not undergone authentication
or have been found not up to the standards after the authentication proceedings, shall be ordered by the department of standardization
administration to stop the sale and shall concurrently be fined.

Article 23

A party which refuses to accept the punishment of confiscation of its products and of its unlawful proceeds and a fine may, within
15 days of receiving the penalty notice, apply for reconsideration to the office immediately above the one that made the punishment
decision; a party which refuses to obey the reconsideration decision may, within 15 days of receiving the reconsideration decision,
bring a suit before a people’s court. The party also may, within 15 days of receiving the penalty notice, directly bring a suit before
a people’s court. If a party neither applies for reconsideration nor brings a suit before a people’s court within the prescribed
time nor complies with the punishment decision, the office that made the punishment decision shall apply to a people’s court for
compulsory execution.

Article 24

Personnel responsible for the supervision, inspection and administration of standardization who violate the law or neglect their duties,
or are engaged in malpractices for personal gains, shall be given disciplinary sanctions; where crimes are constituted, their criminal
responsibility shall be investigated in accordance with the law.

Chapter V Supplementary Provisions

Article 25

Rules for the implementation of this Law shall be formulated by the State Council.

Article 26

This Law shall enter into force as of April 1, 1989.

 
The Standing Committee of the National People’s Congress
1988-12-29

 




CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING THE APPROVAL AND TRANSMISSION OF SUGGESTIONS SUBMITTED BY THE STATE TAXATION ADMINISTRATION CONCERNING THE APPRAISAL, RECTIFICATION, AND STRICT CONTROL OF TAX REDUCTIONS AND EXEMPTIONS

Category  TAXATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1989-01-03 Effective Date  1989-01-03  


Circular of the General Office of the State Council Concerning the Approval and Transmission of Suggestions Submitted by the State
Taxation Administration Concerning the Appraisal, Rectification, and Strict Control of Tax Reductions and Exemptions


SUGGESTIONS CONCERNING THE APPRAISAL, RECTIFICATION, AND STRICT CONTROL OF

(January 3, 1989)

    The report “Suggestions Concerning the Appraisal, Rectification, and
Strict Control
of Tax Reductions and Exemptions” submitted by the State
Taxation Administration has been approved by the State Council, and is now
hereby transmitted for implementation. Please report the results of appraisal
and rectification to the State Council by the end of March, 1989.
SUGGESTIONS CONCERNING THE APPRAISAL, RECTIFICATION, AND STRICT CONTROL OF
TAX REDUCTIONS OR EXEMPTIONS

    Last year, after the promulgation of “Decisions Concerning the Better
Enforcement of Taxation Laws and Discipline and the Improvement of Tax
Collection” by the State Council, each locality investigated and appraised
cases where excessive authority was used to grant tax reductions or exemptions
and rectified some of them. Definite positive effects have been achieved as a
result. However, because some localities have placed undue emphasis on partial
and local interests, this issue has not been thoroughly investigated and
rectified, and those cases that should be corrected remain uncorrected. Since
this year, some localities have been continuously exceeding their authority to
reduce or exempt taxes on new items. This has seriously affected the
macro-control of the national economy and the stable increase of fiscal
revenue. In conformity with the requirements of the State Council on the
prohibition of the downward spread of the power of tax collection and the
strict control of tax reductions and exemptions, the whole-hearted
rectification of reduced and exempted taxes, suggestions concerning the
appraisal, rectification, and strict control of tax reduction and exemption
are hereby put forward as follows:

    1. In order to strictly control the blind development of some special
kinds of consumer goods and goods in over-supply, no locality may reduce or
exempt product taxes or value-added taxes on tobacco, alcoholic beverages,
firecrackers, fireworks, clocks, watches, bicycles, sewing machines, electric
fans, refrigerators, motorcycles, washing machines, vacuum cleaners, air
conditioners, electronic keyboards, pianos, TV sets, tape recorders, cassette
players, video cassette recorders, electronic video games, pull-top cans,
canned beverages, aluminum doors or windows, architectural decorations,
kilowatt-hour meters, saccharin, adhesive clay bricks or tiles, cosmetics for
the skin and hair, and articles for use in a memorial ceremony, which are
produced or marketed in that locality, regardless of the ownership or type of
enterprise. No product tax, value-added tax, or income tax may be reduced or
exempted for small scale wool mills, cotton mills, silk mills, oil refineries,
lacquer factories, metal rolling factories, cigarette factories, or alcoholic
beverage factories.

    The reduction or exemption of taxes on all aforesaid items that have
already been approved shall be suspended and normal collection resumed as of
January 1, 1989. From now on, in order to meet the demands of state
macro-control, the State Taxation Administration is authorized, when
necessary, to list additional items that may not be subjected to tax
reductions or exemptions.

    2. For importing market-saturated goods, consumer goods for which market
prices have been freed, and state-restricted imports, product taxes and
value-added taxes on the importation of these goods may not be reduced or
exempted. For export products manufactured by enterprises, a complete tax
refund will be given at the time of export, and therefore no product tax or
value-added tax on the production of export products manufactured by
enterprises may be reduced or exempted.

    3. Appraisal and rectification of tax reductions or exemptions for various
companies. Taxes on comprehensive companies, banking companies and companies
in service industries should be collected according to stipulations and
regulations. No product tax, value-added tax, or business tax which should be
paid may be reduced or exempted, and such reductions or exemptions which have
been approved should be suspended immediately. In the event of true
difficulties in paying income taxes during the early stage of operation, the
period of the reduction of or exemption from income tax shall be less than one
year; reductions or exemptions from income tax that have already been approved
to exceed one year shall be enforced according to the above regulations.

    4. The unified preferential policy of tax reductions or exemptions for
township enterprises stipulated by the state shall continue to be implemented,
and within the limits of their respective authorities over tax administration,
all localities shall strictly control the reduction of or exemption from
product taxes, value-added taxes, and business taxes. Approvals of tax
reduction or exemption by any locality which exceeds its respective authority
shall cease immediately. After strict verification, a special consideration of
one year reduction of or exemption from income tax may be granted to a small
number of enterprises that have authentic difficulties in paying taxes in the
early stage of operation. Any alteration of income tax rates or any collection
at a reduced portion of the tax rate by any locality must be corrected and
normal collection resumed. The range of itemized expenditures before income
tax payment shall be implemented strictly in accordance with the provisions
uniformly stipulated by the state, and may not be extended without
authorization. The examination and approval of reductions or exemptions for
township enterprises should be handled strictly in accordance with the
stipulations by present administrative systems, and the power of examination
and approval may not be transferred to lower levels of authority. After the
period for tax reduction or exemption for enterprises comes to an end, no
enterprise may obtain further tax reductions or exemptions by changing factory
names, product names, or the trademarks thereof, nor through other fraudulent
means. The discovery of such acts shall be treated and prosecuted as tax
evasion.

    5. All localities and departments must strictly implement the uniform
national policies governing foreign-related taxation, and may not exceed their
respective authorities to determine preferential treatment on foreign-related
taxation. All unauthorized decisions on reduction of or exemption from taxes,
which are in violation of uniform national taxation laws and administrative
regulations promulgated by the State Council, are invalid and should be
publicly repealed and corrected.

    6. In order to make greater efforts to cut down the scale of
infrastructure construction, the macro-control role of the construction tax
should be fully brought into play, and a construction tax on construction
investments made outside the state plan shall be strictly imposed. No locality
or department may reduce or exempt taxes without authorization, with the
exception of those tax reductions or exemptions stipulated uniformly in
taxation laws and regulations.

    7. The tax authorities at various levels shall strengthen their
supervision and control on tax reductions or exemptions and rigorously enforce
procedures of examination and approval. In handling tax reductions or
exemptions, all tax authorities at various levels shall implement laws and
regulations impartially, and may not abuse their authority for selfish
benefits. With respect to those items of tax reduction or exemption of very
large amounts or widespread influence, the tax authorities shall carry out
specific investigations, examine them collectively, and report to higher
authorities level by level for approval. No individual may make decisions
regarding tax reductions or exemptions, and those who are in violation of this
stipulation shall be severely punished.

    8. The appraisal and rectification of tax reductions or exemptions is a
policy-oriented task. It involves the economic interests of all localities,
departments, and units. The local people’s governments at various levels shall
strengthen their leadership and make earnest appraisals and rectifications
from the perspective of the general public interest and macro-scopic demands.
We suggest one leader from each province, autonomous region, and municipality
directly under the Central Government be appointed to take charge of this task.






CITY PLANNING LAW OF THE PEOPLE’S REPUBLIC OF CHINA

The Standing Committee of the National People’s Congress

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

No.23

The City Planning Law of the People’s Republic of China, adopted at the 11th Meeting of the Standing Committee of the Seventh National
People’s Congress on December 26, 1989, is promulgated now, and shall enter into force as of April 1, 1990.

President of the People’s Republic of China Yang ShangKun

December 26, 1989

City Planning Law of the People’s Republic of China ContentsChapter I General Provisions

Chapter II Formulation of the Plan for a City

Chapter III Development of New Urban Areas and Redevelopment of Existing Urban Areas

Chapter IV Implementation of City Planning

Chapter V Legal Liability

Chapter VI Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is formulated to determine the size of a city, define the orientation of its development, realize the goals of its economic
and social development, and map out its plan and carry out its construction on a rational basis in order to meet the needs in socialist
modernization.

Article 2

This Law shall be observed when the plan for a city is being formulated or implemented, or when construction is being carried out
within a planned urban area.

Article 3

The term ” city ” used in this Law applies to a municipality directly under the Central Government, a city or a town established as
one of the administrative divisions of the state.

The term ” a planned urban area ” used in this Law applies to an urban district, an inner suburban district or an area needed for
urban development and construction as one of the administrative divisions of a city. The scope of a planned urban area shall be determined
by the people’s government of a city, while compiling a comprehensive plan for the city.

Article 4

The state shall guide itself by the principle of strictly controlling the size of large cities and developing medium-sized and small
cities to an appropriate extent in the interest of a rational distribution of productive forces and of the population.

A ” large city ” means one which has a non-agricultural population of 500, 000 or more in its urban and inner suburban districts.

A ” medium-sized city ” means one which has a non-agricultural population of over 200,000 but less than 500,000 in its urban and inner
suburban districts.

A ” small city ” means one which has a non-agricultural population of less than 200,000 in its urban and inner suburban districts.

Article 5

City planning must suit the specific conditions of our country and embody a correct handling of the relationship between short-term
and long-term development.

The principle of usefulness and economy and of building the country through thrift and hard work must be adhered to in construction
in a planned urban area.

Article 6

The compilation of the plan for a city shall be based on the plan for national economic and social development as well as the natural
environment, resources, historical conditions and present characteristics of the city. The plan shall be a comprehensive one which
gives balanced consideration to all factors.

The construction of items of urban infrastructure as defined in the plan for a city shall be incorporated into the plan for national
economic and social development in accordance with the specified procedure for national capital construction, and shall be carried
out step by step in a planned way.

Article 7

The comprehensive plan for a city shall be coordinated with territorial planning, regional planning, water space planning and comprehensive
planning for the use of land.

Article 8

The state shall encourage scientific and technical research in city planning and shall popularize advanced technology in order to
raise the scientific and technical level of city planning.

Article 9

The competent department of city planning administration under the State Council shall be responsible for city planning throughout
the country.

The competent departments of city planning administration of the people’s governments at or above the county level shall be responsible
for city planning in the administrative areas under their jurisdiction.

Article 10

All units and individuals shall have the obligation to abide by the plan for a city and shall have the right to report and bring charges
against any action that runs counter to such a plan.

Chapter II Formulation of the Plan for a City

Article 11

The competent department of city planning administration under the State Council and the people’s governments of provinces, autonomous
regions and municipalities directly under the Central Government shall organize the compilation of hierarchical urban plan for the
whole nation and for the provinces, the autonomous regions and the municipalities directly under the Central Government respectively
in order to provide guidance for the compilation of the plans for the cities.

Article 12

The people’s government of a city shall be responsible for seeing to the compilation of the plan for the same city. The compilation
of the plan for a town which is the seat of the people’s government of a county shall be taken care of by the same people’s government.

Article 13

In the compilation of the plan for a city, it shall be necessary to proceed from actual conditions and make a scientific forecast
of the needs arising from its long-term development. The size of the city, the standards, norms and criteria for the various items
of development, and the development procedure shall conform with the national and local levels of economic and technological development.

Article 14

In the compilation of the plan for a city, attention shall be paid to the protection and improvement of the city’s ecological environment,
the prevention of pollution and other public hazards, the development of greenery and afforestation, the improvement of the appearance
and environmental sanitation of urban areas, the preservation of historic and cultural sites, the traditional cityscape, the local
characteristics and the natural landscape.

In the compilation of the plan for a city in a national autonomous area, attention shall be paid to the preservation of ethnic traditions
and local characteristics.

Article 15

In the compilation of the plan for a city, the principle of facilitating production, benefiting the people’s everyday life, promoting
commodity circulation, enriching the economy and promoting advances in science, technology, culture and education shall be adhered
to.

City planning shall conform with the city’s needs for fire-fighting, the prevention of explosions, the mitigation of earthquakes,
the prevention of floods and of mud-rock flows, public security, traffic control and civil air defence construction. In areas where
strong earthquakes and serious floods are likely to occur, measures for earthquake mitigation and flood prevention must be specified
in the plan for a city.

Article 16

In the compilation of the plan for a city, the principle of optimal utilization and conservation of land shall be observed.

Article 17

For the compilation of the plan for a city, data on exploration and surveying and other necessary basic information shall be made
available.

Article 18

The plan for a city shall, as a rule, be worked out in two stages, i.e. comprehensive planning and detailed planning. For large and
medium-sized cities, district planning may be conducted on the basis of comprehensive planning in order to further control and define
the use of land and determine the scope and capacity of each plot and to coordinate the construction of various items of infrastructure
and public facilities.

Article 19

The comprehensive plan for a city shall cover the designated function of the city, the goals of its development and its projected
size, the standards, norms and criteria for its main building structures, the distribution of land used for various construction
purposes, the functions of different zones, the overall arrangement for construction, the comprehensive urban transportation system,
the system of water spaces and green spaces, the plan for specialized sectors and the plan for immediate construction.

The comprehensive plan for a city with a municipal government or for a town serving as the seat of a county government shall include
a hierarchical urban plan for the administrative divisions of the city or county.

Article 20

The detailed plan for a city shall, on the basis of the comprehensive plan for the city or the plan for its different zones, include
a concrete plan for the various construction projects to be undertaken in the immediate development area of the city.

The detailed plan for a city shall define the scope for the use of land for each construction project within the planned plot and
provide the control indexes for building density and building height, the general layout, the comprehensive plan for utilities engineering
and the plan for site engineering.

Article 21

Plans for cities shall be examined and approved at different levels.

The comprehensive plan for a municipality directly under the Central Government shall be submitted by the people’s government of the
municipality to the State Council for examination and approval.

The comprehensive plan for a city which is the seat of the people’s government of a province or of an autonomous region, or for a
city which has a population of 1,000,000 or more, or for a city otherwise designated by the State Council shall first be examined
and approved by the people’s government of the province or the autonomous region and then submitted to the State Council for examination
and approval.

The comprehensive plan for a city with a municipal government or for a town serving as the seat of a county government other than
those defined in Paragraphs 2 and 3 of this Article shall be submitted to the people’s government of the province, the autonomous
region or the municipality directly under the Central Government for examination and approval. The comprehensive plan for a town
which is the seat of the people’s government of a county administered by a municipality shall be submitted to the relevant municipal
people’s government for examination and approval.

The comprehensive plan for a town with an administrative status other than that defined in the preceding paragraph shall be submitted
to the people’s government of the relevant county for examination and approval.

The people’s government of a city or of a county must submit the comprehensive plan for a city to the people’s congress at the corresponding
level or its standing committee for examination and approval before submitting it to the people’s government at a higher level for
examination and approval.

The plan for a district of a city shall be examined and approved by the people’s government of the city.

The detailed plan for a city shall be examined and approved by the people ‘s government of the city. The detailed plan for a city
which has a district plan shall be submitted to the competent department of city planning administration of the people’s government
of the city for examination and approval, with the exception of important detailed plans which shall be submitted to the people’s
government of the city for examination and approval.

Article 22

The people’s government of a city may make partial readjustments in the comprehensive plan for the city according to needs arising
from the city’s economic and social development, and the comprehensive plan thus readjusted shall be submitted to the standing committee
of the people’s congress at the corresponding level and to the authority which originally approved the plan for the record. Major
readjustments which involve the designated function of the city, its size, the orientation of its development or its overall layout
shall be examined and approved by the people’s congress at the corresponding level or its standing committee before they are submitted
to the authority which originally approved the plan for examination and approval.

Chapter III Development of New Urban Areas and Redevelopment of Existing Urban Areas

Article 23

In the development of new urban areas and the redevelopment of existing urban areas, the principles of unified planning, a rational
layout, consideration of local conditions, comprehensive development and the coordinated construction of support facilities must
be adhered to. The selection and determination of sites for construction projects may not hinder the development of a city, endanger
its safety, cause pollution or a deterioration of its environment or affect the coordination of its various functions.

Article 24

The marshalling yards for newly built railways, trunk lines for freight trains, transit highways, airports and important military
establishments shall be built away from the urban districts.

In the construction of harbours, consideration shall be given to the rational allocation and utilization of a city’s water front,
and the availability of a section of the water front for activities other than production shall be guaranteed.

Article 25

The development of new urban areas shall be carried out in localities where there are conditions for construction like ample water
and energy resources, transportation facilities and means of preventing disasters. Mineral reserves and underground cultural relics
and historical sites shall be avoided.

Article 26

In the development of new urban areas, rational use shall be made of the existing facilities of a city.

Article 27

In the redevelopment of existing urban areas, the principles of good maintenance, rational utilization, readjustment of the layout
and gradual improvement shall be adhered to. Redevelopment shall be carried out by stages on a unified plan. The residential and
transportation conditions in the existing urban areas shall be improved step by step, and special attention shall be given to the
construction of the infrastructure and public facilities so as to enhance the multiple functions of the city.

Chapter IV Implementation of City Planning

Article 28

The plan for a city shall be announced by the people’s government of the city after it is approved.

Article 29

The use of land and all development projects within a planned urban area must conform to the plan for a city and must be subjected
to planning administration.

Article 30

The location and layout of construction projects within a planned urban area must conform to the plan for a city. The design programme
submitted for approval must be accompanied by the statement of opinion on the location issued by the competent department of city
planning administration.

Article 31

When applying for the use of land for a construction project in a planned urban area, the unit or individual undertaking construction
must produce documents stating the approval of the project by the relevant government authorities and apply to the competent department
of city planning administration for the determination of a location for the construction project. The competent department of city
planning administration shall determine the site and its boundary, provide the facilities for planning and designing, and issue a
permit for the planned use of land for construction. Only after acquiring the permit for the planned use of land for construction,
may the unit or individual undertaking construction apply for the use of land to the land administration department of the local
people’s government at or above the county level. After the application is examined and approved by the people’s government at or
above the county level, land shall be allocated by the department of land administration.

Article 32

For the construction of a new building, structure, road, pipeline and cable or any other engineering works, its extension or its alteration
within a planned urban area, application shall be submitted to the competent department of the city planning administration together
with the related documents of approval. The competent department of city planning administration shall issue a permit for a planned
construction project according to the planning and design requirements defined in the plan for the city. The unit or individual undertaking
construction may not apply for the performance of the procedure for the beginning of construction until after acquiring the permit
for a planned construction project.

Article 33

A temporary structure erected within a planned urban area must be demolished within the approved period of time for its use. Measures
for the planning and administration of temporary structures and land for temporary use shall be formulated by the people’s governments
of the provinces, autonomous regions and municipalities directly under the Central Government.

The construction of permanent buildings, structures and other installations shall be banned on land granted for temporary use.

Article 34

All units and individuals must obey the decisions on readjustments in the use of land made by the people’s government of a city according
to the plan for the city.

Article 35

No unit or individual may undertake construction on a road or a public square, in a green space, in a high-voltage power supply corridor,
or by cutting into the space for underground pipelines and cables.

Article 36

The excavation of sand and gravel and of earth within a planned urban area shall be approved by the competent administrative authorities.
No such activity may cause damage to the urban environment or produce a negative effect on city planning.

Article 37

The competent department of city planning administration shall be empowered to inspect the construction projects in a planned urban
area to see if they conform to the requirements of the plan for a city. The party subject to inspection shall state the actual situation
and provide the necessary data. The party conducting inspection shall be obliged to keep technical and business secrets for the party
subject to inspection.

Article 38

The competent department of city planning administration may participate in the checking and acceptance of important development projects
within a planned urban area. The construction unit shall submit to the competent department of city planning administration documents
related to the completion of a development project within a planned urban area within six months of the checking and acceptance of
the project.

Chapter V Legal Liability

Article 39

If, within a planned urban area, land is occupied and used after the acquisition of documents of approval for the use of land for
construction but without the acquisition of a permit for the planned use of land for construction, such documents of approval shall
be declared invalid, and the land occupied shall be returned by order of a people’s government at or above the county level.

Article 40

Construction which is undertaken within a planned urban area without a permit for a planned construction project or not in line with
the requirements stated in the permit and which seriously affects city planning shall, by order of the competent department of city
planning administration of the local people’s government at or above the county level, be suspended, removed within a prescribed
period of time or be punishable by the confiscation of illegal buildings, structures or facilities; construction which affects city
planning but can still be remedied shall, by order of the competent department of city planning administration of the local people’s
government at or above the county level, be corrected within a prescribed period of time and be concurrently punishable by a fine.

Article 41

A person responsible for constructing a project without a permit for a planned construction project or not in line with the requirements
in the permit may be given administrative sanction by the organization where he works or by the competent authority at a higher level.

Article 42

A party refusing to accept the decision on administrative sanction may, within 15 days of receiving the notification on such a decision,
apply for reconsideration to the department next higher to the authorities that decided on the sanction; if the party refuses to
accept the decision of reconsideration, it may, within 15 days of receiving the reconsideration decision, bring a suit before a people’s
court. A party may also bring a suit directly before a people’s court within 15 days of receiving the notification on the sanction.
If, upon the expiration of this period, the party has not applied for reconsideration or has neither brought a suit before a people’s
court nor complied with the sanction, the authorities that decided on the sanction may apply to the people’s court for compulsory
enforcement.

Article 43

Any member of a competent department of city planning administration who neglects his duty, abuses his power or engages in malpractices
for personal gains shall be given administrative sanction by the unit to which he belongs or by the competent higher authorities;
if his act constitutes a crime, he shall be investigated for criminal responsibility according to law.

Chapter VI Supplementary Provisions

Article 44

This Law may be referred to for a residents’ community in an industrial or mining district without the administrative status of a
town.

Article 45

Rules for the implementation of this Law shall be formulated, pursuant to this Law, by the competent department of city planning administration
under the State Council, and shall be implemented after they are submitted to and approved by the State Council.

Measures for the implementation of this Law may be formulated, pursuant to this Law, by the standing committees of the people’s congresses
of the provinces, autonomous regions and municipalities directly under the Central Government.

Article 46

This Law shall enter into force as of April 1, 1990. The Regulations on City Planning promulgated by the State Council shall be abrogated
therefrom.

 
The Standing Committee of the National People’s Congress
1989-12-26

 




OUTLINE OF STATE INDUSTRIAL POLICIES FOR THE S

Outline of State Industrial Policies for the 1990s

     (Effective Date:1994.03.25–Ineffective Date:)

CHAPTER I VIGOROUSLY DEVELOP AGRICULTURE AND RURAL ECONOMY AND INCREASE THE INCOME OF PEASANTS CHAPTER II CONSCIENTIOUSLY STRENGTHEN
THE CONSTRUCTION OF INFRASTRUCTURAL FACILITIES AND BASIC INDUSTRIES CHAPTER III VIGOROUSLY DEVELOP PILLAR INDUSTRIES CHAPTER V VIGOROUSLY
DEVELOP FOREIGN ECONOMIC RELATIONS AND TRADE CHAPTER VI ORGANIZATION, TECHNOLOGY AND SETUP OF INDUSTRIES CHAPTER VII PROCEDURES FOR
FORMULATING INDUSTRIAL POLICIES AND THEIR IMPLEMENTATION

The formulation of industrial policies is to work as one of the important means of the State in its strive to strengthen and improve
macro-economic control, effectively adjust and optimize the industrial structure, improve the quality of industries and promote a
sustainable, fast and healthy development of the national economy and under the guidelines of the 14th National Party Congress and
the decisions adopted at the third plenary session of the 14th Party Central Committee, the present “Outline of State Industrial
Policies for the 1990s” is worked out in the light of the current situation and trend of development in the national economy as a
guide and basis for formulating policies for various industries in the near future.

In formulating State industrial policies, the following principles must be observed: (1) Such policies must be able to combine the
universal way of industrialization and modernization with the special conditions and industrial structure of our country; (2) Such
policies must be able to help establish a socialist market economic system in our country so as to give a basic role to the market
for the allocation of resources under the macro-economic control by the State; (3) Such policies must be able to help concentrate
the efforts of the country to solve the major problems that are of vital importance to the overall situation of the national economy;
(4) Such policies must be able to become fully operational mainly through economic and legal means and properly supplemented with
necessary administrative means to support the development of industries and products in short-term demand and curtail those in long-term
demand.

For the 1990s the major objects of the State industrial policies are: constantly strengthen the basic status of agriculture to develop
the rural economy in an all-round manner; devote great efforts to step up the development of the basic industries, striving to ease
the heavy drawback of infrastructure and basic industries; accelerate the development of pillar industries to bring about an all-round
revitalization of the national economy; rationally readjust the foreign economic and trade structure to enhance the competitiveness
of Chinese industries on the international market; step up the development of high and new tech industries and support the development
of newly emerging industries and new products; and continue to develop the tertiary industry in a big way. Meanwhile, it is necessary
to optimize the structure of industries, raise their technical levels and rationalize their distribution.

CHAPTER I VIGOROUSLY dEVELOP AGRICULTURE AND RURAL ECONOMY AND INCREASE THE INCOME OF PEASANTS

To develop vigorously agriculture and the rural economy and increase the income of peasants are the first and foremost task of economic
development in the 1990s. It is imperative to foster the broadest sense of agricultural development which includes an all-round development
of agriculture, forestry, animal husbandry, sidelines and fisheries and a vigorous development of high-yield, high-quality and high-efficiency
and high foreign exchange earning agricultural products so as to be able to turn out a sufficient amount of agricultural products
to both cater a well-being living at home and meet the demand of the international market in terms of quality, variety and quality.
For such an undertaking, it is necessary to restructure the rural industrial structure, energetically develop the secondary and tertiary
industries in the rural areas, gradually transfer the rural surplus labor to bring the comprehensive production capacity and economic
efficiency of the rural areas onto a new level.

In developing agriculture and the rural economy, it is essential to implement in real terms the series of policies and measures formulated
by the Party central committee and the State Council and the present “Outline Program for the Development of China’s Agriculture
in the 1990s”. For that, it must: extend the contracted terms for the arable land to stabilize and improve the household responsibility
system which ties up the income with output and the two-tier managing system which integrates the contralized and scattered management
in an effective way; rationally readjust the organization of agricultural production to introduce new production systems of integrating
cropping, breeding and processing and also agriculture, trade, and industry; cultivate energetically the rural market by establishing
sound grain protective prices, a grain venture fund system, and a grain reserve system; establish and improve the rural collective
service system to make it a vast network consisting of services run by the State, collectives and individuals; dedicate real effort
to protect the arable land including the step by step establishment of basic farmland protection zones and formulation of corresponding
measures of management; increase input in agriculture including the increase of financing by central and local governments on an
annual basic, support the development of agro-serving industries, encourage peasants own inputs, and attracting more foreign capital
to the development of agriculture; energetic efforts must be made to use and spread new techniques and lightening the burdens on
peasants and earnestly protecting their legitimate rights and interests.

With the increase of rural productivity, the rational transfer of rural surplus labor will acquire an important relevance in the strive
of further developing the agriculture and the rural economy and increasing the income of the peasants So, further efforts must be
made to accelerate the development of township enterprises, especially in the central and western parts of the country. In such a
context, planning and policy guidance should be enhanced to lead the township enterprises develop in a concentrated manner. Meanwhile,
it is necessary to transform and make full use of the existing small towns and step up the building of new ones.

CHAPTER II CONSCIENTIOUSLY STRENGTHEN THE CONSTRUCTION OF INFRASTRUTUAL FACILITIES AND BASIC INDUSTRIES

The development of infrastructural facilities and basic industries must be accelerated so as to keep pace with that of the national
economy as a whole. The efforts must be made basing on the principles of “unified planning, rational distribution, banding force
on key areas, doing one’s best within one’s might and keeping an eye at efficiency”.

For transportation, major efforts must by put to increase the carrying capacity of railways. While giving special effort to develop
the thoroughfares, roads, waterways, air, pipelines and other ways of transportation must also be developed in a full scope to form
a comprehensive transport system. For telecommunications, great efforts must be paid to develop a comprehensive but concentrated
information disseminating network basing on high speed, high quality and high capacity communication means and advanced technologies
and equipment of international standard at the same time of increasing the portion of home-made devices. For energy, equal emphasis
must be given to development and conservation so as to achieve a well-coordinated development of energy, economy and environment.
In coal industry, construction of State-owned key mines must be accelerated and efforts must be made to promote the transformation
and improvement of local mines and mines operated by townships. In the petroleum industry, while stabilize the output in the eastern
part, more reserves in the western part must be verified and international resources rationally utilized. In the power industry,
the principle is to develop both thermal and hydroelectric power in light of actual conditions and expand nuclear power properly.
It is necessary to consolidate and improve the existing water conservancy facilities and carry out comprehensive control of large
rivers and lakes with clear emphasis in order to prevent water loss and soil erosion, protect and rationally allocate water resources
and raise the capabilities against drought and floods and gradually solve the drinking water supply problem in water short areas
and in cities. The development of urban municipal utilies should be accelerated according to the principle of “unified planning,
rational distribution and comprehensive development.”

In order to accelerate the development of infrastructure facilities and basic industries, the State will adopt the following principal
policies: fully use the initiatives of both the central and localities under clarified division of work among the governments at
all levels; clearly define the plans for the development of infrastructure facilities and basic industries to acquire a sound development
of both; well establish and improve a policy-based long-term investment and financing system to provide appropriate financial support
to construction projects encouraged by the State; channelling funds into the construction of infrastructure facilities and basic
industries from various sectors with priority giving to issue of stocks and bonds to cater to the development of such facilities
and industries; encouraging foreign investment to construction of infrastructural facilities and basic industries to extend the use
of foreign funds in the sectors both in scale and areas; further smoothing out the pricing system to give full scope to the regulatory
roles of the price mechanism and intensify the control over the prices of products and services provided by highly monopoly industries;
continuing to requisite lands in low prices for the construction of infrastructure facilities and basic industries; using incomes
of the government from leasing of land resources for the construction of infrastructure facilities; and permitting under approval
procedure investors in transport facilities in obtain the right to develop real estate along the transporting lines, port areas and
around airports as comprehensive economic compensation.

CHAPTER III VIGOROUSLY DEVELOP PILLAR INDUSTRIES

Efforts should be made to accelerate the development of machine- building, electronic, petro-chemical, automobile and construction
industries to make them the pillar industries of the national economy.

For machine-building industry focus should be put on the making of elementary machinery, basic parts and complete sets of major technical
equipment so as to promote the optimization of product structure and raise the technical level and competitiveness of the industry.
For electronic industry, microelectronics should serve as the base for the development of telecommunications, computers and other
emerging information industries to accelerate the pace of modernization. For the petrochemical industry, energetic efforts should
be made to enlarge production scales, improve technical levels and depth of processing. For automotive industry, a production system
of fewer production sites and economic scale of production should be undertaken as soon as possible to strive for a bigger share
in the domestic market and a better competitiveness in the world market for domestic products. For construction industry, emphasis
should be put to the building of residential houses in cities, key State construction projects and the construction of cities and
towns to strive to establish a unified and open market with orderly competition and improve the quality of products for construction.

The State will promote the development of the pillar industries by adopting the following measures: to formulate and publish unified
industrial policies and ensure their implementation by legal means; to gradually establish an investment and financing system and
standard enterprises financing mechanism to facilitate the development of the pillar industries, including arrangement given by the
State for prior issue of pillar industry related stocks and bonds; direct support should be given by the government in funds and
materials to prop up the technical development of certain major areas in the pillar industries such as under approval of the State
Council, granting power to some large enterprise groups to directly raise funds abroad commensurate with the their own capital and
gains. Meanwhile, according to common international practice and articles of relevant agreements, the State will treat part of the
products of the pillar industries as infant industrial products and protect them properly and within a certain limit of time. At
the same time, the government will allow the conditional opening of part of the home market in order to obtain key technology and
equipment.

CHAPTER V VIGOROUSLY DEVELOP FOREIGN ECONOMIC RELATIONS AND TRADE

The government will continue to encourage the expansion of foreign trade, actively readjust the trade structure so as to display the
country’s own advantages in the trade, improve its export efficiency, promote the restructuring and optimizing of industrial structure,
enchance the international competitiveness and maintain the balance of international payments.

The State encourages export of the following products; agricultural and sideline products with comparative advantages, light industrial
goods and textiles; household electrical appliances and other machinery and electronic products with mature production technology;
products with high added value and international competitiveness; and high and new technology products, but discourages the bulk
export of resources products, and strives for gradual reduction in the export of primary products and products with high energy contents,
with some even restricted or forbidden for export.

The State encourages the import of new technology and relevant key equipment, key and spare parts; appropriately increases the import
of some primary products in short supply at home, supports the efforts by infant industries to introduct, assimilate and absorb new
technologies, new production equipment and their key and spare parts. Meanwhile, the State discourages the import of high and consumer
goods.

For such an end, the State will fully use the function of the import and export banks to encourage enterprises to increase their export
of complete sets of equipment and machinery and electronic products; strengthen the control on the import quantity of a few products,
through the granting of quotas by means of tenders, auction or regulations based on the principal of “efficiency, fairness and openness”;
strengthen the policies for promoting the export of deep-processed products, high value added manufactured goods and complete sets
of equipment; give the power of handling foreign trade to various kinds of qualified enterprises and particularly encourage large
enterprises (groups) to open direct sales channels overseas; and rationally adjust the tariff rates according to the State industrial
policies.

CHAPTER VI Organization, Technology and Setup of Industries

(1) The objectives of the policies toward industrial organizations are: promoting fair competition among enterprises and realizing
economic scale of production and specialized cooperation to form an industrial organizational structure to adapt to the characteristics
of industrial technical economy and the stages of development of the national economy. For industries with marked efficiency of an
economic scale, a market structure should be formed with a few large enterprises (groups) as the main competitors; for industries
with products composed of large amounts of parts and accessories, there should be a market structure of an appropriate scale that
facilitate the rational division of labor and coordination among large, medium-sized and small enterprises; for industries without
market efficiency of economic scale, efforts should be made to encourage the development of small enterprises to form market structure
comprising a large number of large, medium-size and small enterprises which will develop simultaneously and compete freely.

To realize the objectives, the government will; gradually introduce market mechanism into industries which are of monopoly in nature
in specific regions to encourage fair competition among them; set minimum scale for industries and products which are of efficiency
in economic scale. At the same time, barriers to separate departments, and regions will be broken down to stop the setting up of
projects that fail to meet the standards of economic scale so as to promote the realization of scale economy. Enterprises are also
encouraged to form transregions, departments, ownerships or even nations associations or enterprises groups by way of equal competition,
merging, amalgamation, or holding each other’s shares. The government will step up the building of the legal system concerning market
competition so as to create a good external environment for enterprises to compete on an equal footing and readjust their organizational
setups.

(2) The key objects of industrial technology policy are to: promote the development of applied technologies, encourage the integration
of research and production, accelerate the application of research results, promote the introduction and assimiliation of advanced
foreign technologies to markedly improve the quality and technical function and reduce the energy, material consumptions and production
cost of Chinese products and strive to improve the technical levels of Chinese industries.

The government will adopt the following measures to promote technological progress: To increase input in scientific research and development
through multiple channels and in a variety of forms so as to gradually increase its proportion in the GNP; to map out research and
development programs for key technologies that are of importance in the development of various industries, support and encourage
the absorption and creation of advanced technologies; to strengthen planning of high and new technology industries, do well in the
construction of the State approved high and new technology development zones; to promote the process of standardization and serialization,
encourage the adoption of international standards and advanced foreign standards and more strict internal standards of enterprises;
to enhance the capabilities of enterprises to develop new products independently, encourage enterprises to strengthen their ties
with research institutions and universities and colleges in order to accelerate the speed of commercializations of research results;
and to publish regularly with the force of law or decrees the backward production technology and equipment that must be disbanded.

(3) The main principles of the industrial distribution policies: while continuing to display the advantages of economically developed
areas and accelerating their development, energetic efforts must be made to support the economic development of less developed regions
so as to gradually narrow the spread between the economically developed and less developed regions; the government supports the development
of industrial belts that can give full advantages of natural resources and economy and dedicate to the efficient division of labor
and cooperation among different regions.

It should gradually form rational distribution of industries along the seas, rivers, roads and borders, with large cities along the
transporting trunk lines as the centres to bring up the development of economic regions. The eastern coastal areas must make great
efforts to develop an export-oriented economy, with emphasis on industries and products that have high added values, are capable
of earning great foreign exchange, contain more technology and consume less energy and raw materials. More foreign funds and resources
should be used in order to achieve a sustainable and fast development and better efficiency of the economy. The central and western
regions should give full advantages of their resources and geographical locations as border areas to develop their own unique industries
and products. The State will gradually shift its policy biased toward regions to the policy biased toward industries in terms of
investment, loans, project distribution utilization of foreign capital and other related economic policies and give necessary support
to the major projects in the development and construction of the central and western parts of the country. The State should encourage
economically developed regions to engage in joint development, technical cooperation, partnership assistance and personnel exchange
with the less developed areas in the central and western parts of the country.

The government will make the best use of the situation to guide urbanizations toward a healthy development so as to form an urban
construction system with a good harmony in structure and rational distribution of large, medium-sized and small cities.

CHAPTER VII PROCEDURES FOR FORMULATING INDUSTRIAL POLICIES AND THEIR IMPLEMENTATION

Industrial policies include industrial structure policies, industrial organizational policies, industrial technology policies, industrial
distribution policies and other policies and laws and regulations that will have a great bearing on the industrial development. In
order to give the industrial policies a full scientific nature and authority and faciliate their implementation, the following provisions
are hereby made concerning the formulation and implementation of industrial policies:

(1) The State industrial policies shall be determined by the State Council and the formulated under the initial of the State Planning
Commission which is responsible for the study, formulation and coordination of the policies with the help of relevant departments.
The industrial policies with the help of relevant departments. The industrial policies thus formulated shall be carried out by departments
in charge of various industries and services under the coordination by the State Planning Commission.

(2) A system shall be created by State for the examination and review of the State industrial policies. The concrete industrial policies
and policies that will have a major influence on the industrial development drafted by relevant departments shall be examined and
coordinated by the State Planning Commission and subject to scientific studies and democratic examination by relevant departments
under the State Council, industrial circles, academic circles and consumer groups organized by the State Planning Commission before
they are submitted by the State Planning Commission and relevant departments to the State Council for approval and published for
implementation.

(3) A system must be created to ensure the real implementation of the State industrial policies by various economic administration
departments of planning, finance, banks, taxation, domestic and foreign trade, tariffs, securities, industry and commerce and the
State property, which must coordinate with the State Planning Commission to formulate major procedures for the implementation of
the policies.

(4) A system must be created for the supervision, examination and assessment of the State industrial policies. The State Planning
Commission shall, together with relevant departments, undertake the work of supervision, examination and analysis on the execution
of the State industrial policies and report the results to the State Council regularly with proposals for amendment of the policies
in the light of the changes in the economic situation and industrial structure.

(5) Provincial level people’s governments shall, according to the requirements of the present outline, formulate detailed rules for
its implementation in the light of their actual circumstances and submit them to the State Planning Commission for the record.

(6) The government shall, in the near future, draft industrial policies for transport, telecommunications, construction, electronics,
machine building, petro-chemical industries and foreign investment, foreign trade, technology and industrial organizational readjustment.
The work shall be coordinated and organized by the State Planning Commission.

(7) The document shall be interpreted by the State Planning Commission.

The outline of the State industrial policies for the 1990s shall be implemented starting from the date of publication.

    






MEASURES FOR EXEMPTION FROM INSPECTION OF IMPORT AND EXPORT COMMODITIES