China Laws

THE INTERIM REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA GOVERNING LAND USE TAX ON CITIES AND TOWNS

State Council

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

No. 17

The Interim Regulations of the People’s Republic of China Governing Land Use Tax on Cities and Towns, which was adopted at the twelfth
executive meeting of the State Council on July 12, 1988, are hereby promulgated and shall be implemented as of November 1, 1988.

Premier, Li Peng

September 27, 1988

The Interim Regulations of the People’s Republic of China Governing Land Use Tax on Cities and Towns

Article 1 .

These Regulations are formulated with the view to rationalizing the use of land in cities and towns, to regulating the income from
grades difference of the land, to improving efficiency and profit by use of the land and to strengthening the land management.

Article 2 .

Units and individuals which use land within the boundaries of cities, county towns, towns/bases operated under an organizational system
and industrial and mining districts shall be the obligatory payers of tax (hereinafter referred to as taxpayers) for land used within
cities and towns (hereinafter referred to as land use tax) and shall pay land use tax in accordance with provisions of these Regulations.

Article 3 .

Calculation of land use tax shall be based on the actual area of land took up by the taxpayer and shall be levied in accordance with
the stipulated tax rate.

The work of organizing and measuring the taking up area of land as referred to above shall be determined by the people’s government
of province , autonomous region or municipalities directly under the Central Government in accordance with the actual circumstances.

Article 4 .

The annual tax rates of land use tax for per square meter shall be as follows:

(1)

RMB 0.5 yuan to 10 yuan in large cities;

(2)

RMB 0.4 yuan to 8 yuan in medium cities;

(3)

RMB 0.3 yuan to 6 yuan in small cities;

(4)

RMB 0.2 yuan to 4 yuan in county towns, towns/bases operated under an organizational system and industrial and mining districts.

Article 5 .

Based on conditions such as the circumstance of municipal construction and the degree of economic prosperity and etc., the people’s
governments of provinces , autonomous regions and municipalities directly under the Central Government shall determine the appropriate
tax rate ranges for the districts under their jurisdiction within the range of tax rates listed above.

The people’s governments of cities and counties shall divide the land in their district into certain grades based on the actual
circumstances and shall, within the tax rate ranges determined by the people’s governments of provinces , autonomous regions and
municipalities directly under the Central Government , formulate corresponding appropriate tax rate standards, and submit to the
people’s government of provinces , autonomous regions or municipalities directly under the Central Government for approval and
implementation.

Subject to approval by the people’s governments of provinces , autonomous regions or municipalities directly under the Central Government
, the land use tax rate standard levied in economically backward districts may be reduced appropriated, but shall not be lowered
to exceed 30% of the minimum tax rate stipulated in Article 4 of these Regulations. The land use tax rate standard levied in economically
developed districts may be raised appropriately, but the amount shall first be approved by the Ministry of Finance.

Article 6 .

Land use tax shall be exempted on the following types of land:

(1)

the land for self use by State organs, people’s organizations and the armed forces;

(2)

the land for self use by units which their expenditures are allocated and funded by the State’s finance departments;

(3)

the land for self use by religious temples and shrines, parks and places of historic interest and scenic spots ;

(4)

the land for public use , such as municipal streets, public squares and areas of greenery and etc.;

(5)

the land for production use directly used in the agricultural, forestry, pastoral and fishery industries;

(6)

in the case of land whose reclamation from the sea or transformation from wasteland was approved, land use tax shall be exempted for
5 to 10 years from the month beginning to use;

(7)

the land used for facilities on energy resources, transportation, and water conservancy, and other uses which the Ministry of Finance
has exempted from tax in other provisions. .

Article 7 .

In addition to cases provided for under the provisions of Article 6 of these Regulations, a taxpayer who has genuine difficulty paying
the prescribed land use tax may request a reduction of or exemption from the tax on a periodic basis After the tax organ of provinces,
autonomous regions or municipalities directly under the Central Government has examined and verified the circumstances of the case,
the details shall be submitted to the State Taxation Bureau for approval.

Article 8 .

Land use tax shall be calculated annually and paid by installments. The time limit for payments shall be determined by the people’s
governments of provinces , autonomous regions or municipalities directly under the Central Government. .

Article 9 .

For newly requisitioned land, the land use tax shall be paid in accordance with the following provisions:

(1)

if cultivated land is requisitioned, the land use tax shall be levied one year after the date on which approval to expropriate the
land is given.

(2)

if non-cultivated land is requisitioned, land use tax shall be levied from the month after approval to expropriate the land is given.

Article 10 .

Land use tax shall be collected by the local tax organ in the area where the land is located. Land management organs shall provide
the information of land use rights to the local tax organs where the land is located.

Article 11 .

Administration of the levying of land use tax shall be handled in accordance with the provisions of the Interim Regulations of the
People’s Republic of China governing Administration of the Levying and Collection of Taxes.

Article 12 .

Income from the land use tax shall bring into financial budget administration.

Article 13 .

The Ministry of Finance shall be responsible for interpreting these Regulations. Implementing measures shall be formulated by the
people’s governments of provinces, autonomous regions and municipalities directly under the central government and the details shall
be submitted to the Ministry of Finance for archival file.

Article 14 .

These Regulations shall take effect from November 1,1988 and the land use fee measures formulated by all localities shall be suspended
simultaneously.

State Council
1988-09-27

CIRCULAR OF THE STATE COUNCIL CONCERNING THE APPROVAL AND TRANSMISSION OF THE SUGGESTIONS OF THE MINISTRY OF COMMERCE, THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE, AND THE MINISTRY OF MATERIAL SUPPLIES REGARDING THE FURTHER CHECKING UP AND RECTIFICATION OF VARIOUS TYPES OF COMMERCIAL WHOLESALE COMPANIES, FOREIGN ECONOMIC RELATIONS AND TRADE COMPANIES, AND MATERIAL SUPPLY COMPANIES

Category	FOREIGN TRADE	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1989-10-18	Effective Date	1989-10-18

Circular of the State Council Concerning the Approval and Transmission of the Suggestions of the Ministry of Commerce, the Ministry of Foreign Economic Relations and Trade, and the Ministry of Material Supplies Regarding the Further Checking up and Rectification of Various Types of Commercial Wholesale Companies, Foreign Economic Relations and Trade Companies, and Material Supply Companies

Circular
SUGGESTIONS OF THE MINISTRY OF COMMERCE CONCERNING THE FURTHER CHECKING UP
SUGGESTIONS OF THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE
SUGGESTIONS OF THE MINISTRY OF MATERIAL SUPPLIES CONCERNING THE FURTHER

(October 18, 1989)

Circular

In accordance with the requirements of the “Decision Concerning the Further
Checking Up and Rectification of Companies” of the Central Committee of the
Communist Party of China and the State Council, the suggestions of the Ministry
of Commerce, the Ministry of Foreign Economic Relations and Trade, and the
Ministry of Material Supplies Regarding the Further Checking Up and
Rectification of Various Types of Wholesale Commercial Companies, Foreign
Economic Relations and Trade Companies, and Material Supply Companies, are
hereby transmitted to you, and you are requested to implement accordingly.
SUGGESTIONS OF THE MINISTRY OF COMMERCE CONCERNING THE FURTHER CHECKING UP
AND RECTIFICATION OF VARIOUS TYPES OF WHOLESALE COMMERCIAL COMPANIES (Omitted)
SUGGESTIONS OF THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE
CONCERNING THE FURTHER CHECKING UP AND RECTIFICATION OF VARIOUS TYPES OF
FOREIGN ECONOMIC RELATIONS AND TRADE COMPANIES

In accordance with the “Decision of the Central Committee of the Communist
Party of China and the State Council Concerning the Further Checking Up and
Rectification of Companies”, and on the basis of the “Circular of the State
Council Concerning the Further Checking Up and Rectification of Various Foreign
Economic Relations and Trade Companies”, suggestions are hereby put forward
concerning the further checking up and rectification of various foreign
economic relations and trade companies (hereinafter referred to as “the foreign
trade companies”):

1. Foreign trade companies at various levels and of various types attached
to the provinces, autonomous regions, municipalities directly under the Central
Government, and municipalities under separate planning (hereinafter referred
to as “the various localities), as well as those attached to the various
departments under the Central Government, must all conduct the checking up and
rectification strictly. Those foreign trade companies at various levels and of
various types that are not in conformity with the prescribed requirements shall
resolutely be abolished or merged, or their right to handle import and export
trade shall be revoked, strictly in accordance with the provisios of “the
Suggestions Concerning the Abolition or Merger of Companies Attached to the
Various Departments Under the Central Government” put forward by the National
Leading Group for the Checking up and Rectification of Companies. The emphasis
of the checking up and rectification is laid on the foreign trade companies at
various levels and of various types that have been established since 1988;
after the checking up and rectification, if it is really necessary to retain
one or two of them, the case shall be submitted to the Ministry of Foreign
Economic Relations and Trade for re-examination and confirmation strictly in
accordance with the six prerequisites for the establishment of foreign trade
enterprises, as prescribed by the aforesaid Ministry.

2. Foreign trade companies that fall under one of the following
circumstances shall resolutely be abolished or merged, or their right to handle
import and export trade shall be revoked:

(1) companies that do not settle their foreign exchange with the Bank of
China or with other banks designated by the State Administration for Foreign
Exchange Control, and have evaded foreign exchange control seriously;

(2) companies that have colluded with external businessmen and helped them
purchase export goods directly from the inland or handle export business,
thereby helping them evade foreign exchange control;

(3) companies that have been established in the same department or in the
same region, handling the same or similar business, so they are just
reduplicate setups;

(4) companies that do not have the necessary conditions for handling
foreign trade, or lack external marketing channels for handling export trade
but do so chiefly by entrusting other companies;

(5) the branch offices set up by local foreign trade companies outside the
provinces (autonomous regions, or municipalities directly under the Central
Government) for handling import and export business.

(6) subcompanies of the second or third rank with the right to handle
import and export trade, established by comprehensive foreign trade companies
attached to various local governments.

3. After the completion of the strict checking up and rectification,
foreign trade companies at various levels and of various types shall be
established in accordance with the following provisions:

(1) With the exception or the Ministry of Foreign Economic Relations and
Trade, from among the foreign trade companies attached to the various
departments under the Central Government, one company for each of the aforesaid
departments may be retained, depending on their respective needs; where one or
two departments really need(s) to set up companies for specialized products,
the case shall be examined and confirmed by the Ministry of Foreign Economic
Relations and Trade separately; as to the other companies, they shall all be
abolished or merged, or their right to handle import and export business shall
be revoked.

(2) From among the comprehensive foreign trade companies attached to
provinces (autonomous regions, or municipalities directly under the Central
Government), only one or two shall be retained; as to the other companies, they
shall all be abolished or merged, or their right to handle import and export
business shall be revoked.

(3) For those localities (including the municipalities at the prefectural
level, the same below) that have already been vested with the right to handle
import and export business, only one or two companies shall be retained with
their right to handle import and export, on condition that they meet the actual
needs and the prescribed requirements; as to the other companies, they shall
all be abolished or merged, or their right to handle import and export business
shall be revoked (with the exception of those companies in Guangdong and
Fujian Provinces which were established before the end of 1987).

(4) For those economic and technological development zones that have been
approved by the State Council, only one foreign trade company with the right to
handle import and export business shall be retained; as to the other
companies, they shall all be abolished or merged, or their right to handle
import and export business shall be revoked.

(5) The right to handle import and export trade of those foreign trade
companies attached to the counties (including municipalities at the county
level, the same below) shall be revoked (with the exception of those companies
in Guangdong and Fujian Provinces which were established before the end of
1987). As to one or two special cases where the foreign trade companies meet
the prescribed requirements and handle only the local specialties of their
counties, that is, the third category of export commodities promising a bright
prospect of export sales, and thus it is necessary to retain their right to
handle import and export business, such cases shall be submitted to the
Ministry of Foreign Economic Relations and Trade for approval.

(6) From among the foreign trade companies, attached to various provinces,
autonomous regions, municipalities directly under the Central Government,
municipalities under separate planning, and special economic zones that handle
barter transactions with the Soviet Union and the East European countries, only
one or two companies shall be retained; as to the other companies, they shall
all be abolished or merged, or their right to handle import or export business
shall be revoked.

(7) From among the trading companies, attached to counties adjacent to
border ports which are established with the approval of the State Council and
handle petty barter trade in the border areas, only one company shall be
retained for each of the aforesaid counties; where a port county does not meet
the prescribed requirements, a tradeing company at the region (or prefecture,
municipality) level, over the port may be retained; as to the other companies,
they shall all be abolished or merged, or their right to handle petty barter
trade in the border areas shall be revoked.

4. All international economic and technological cooperation companies
established without the approval by the State Council or by the Ministry of
Foreign Economic Relations and Trade shall all be abolished. With respect to
those international economic and technological cooperation companies (including
those companies which handle economic and technological cooperation business
with the Soviet Union and the East European countries that have been approved
by the State Council or by the Ministry of Foreign Economic Relations and
Trade, and those international economic and technological cooperation companies
that engage in the expansion of business contacts for external economic and
technological cooperation or in the trial management of the exportation of
export commodities of the third category, all the localities and departments
shall, in accordance with the seven prerequisites for the establishment of
companies of the aforesaid type as formulated by the Ministry of Foreign
Economic Relations and Trade, carry out a strict checking up and rectification
on the aforesaid companies, and then submit the cases to the Ministry of
Foreign Economic Relations and Trade for re-examination and confirmation.

5. It is necessary to re-verify and confirm the business scope of foreign
trade companies at various levels and of various types.

The first category or exptort commodities, as prescribed by the State,
shall be handled by the national foreign trade corporations, or the national
industry and trade import and export corporations as well as by their branch
offices and subsidiaries in accordance with the approved business scope, and
the aforesaid corporations shall also undertake to fulfil the export plan
transmitted by the State, and the tasks to turn over a definite amount of
foreign exchange earnings to the Central Government. All the other foreign
trade companies are not permitted to handle export commodities of the first
category; where the aforesaid provisions are violated, the foreign exchange
earnings obtained shall all be confiscated and be turned over to the Central
Government, and the responsibilities of the persons in charge shall be
investigated. A strict control should be exercised over the business scope of
foreign trade companies for handling export commodities of the second category.
The foreign trade companies attached to various departments under the Central
Government shall handle products of their own industries in accordance with the
business scope approved by the Ministry of Foreign Economic Relations and
Trade, or handle export commodities of the second or third category in
accordance with the approved business scope; the specialized foreign trade
companies attached to provinces (autonomous regions, municipalities directly
under the Central Government) shall handle export commodities of the second or
third category in accordance with the appraised and confirmed business scope;
as to those comprehensive foreign trade companies attached to provinces
(autonomous regions, or municipalities directly under the Central Government),
the foreign trade companies that are attached to prefectures and have retained
their right to handle import and export business, and the foreign trade
companies in the economic and technological development zones, they shall be
permitted to handle only export commodities of the third category. The various
categories of foreign trade companies that handle export commodities of the
second and third categories shall all undertake to fulfil the export plans and
the tasks to turn over a definite amount of foreign exchange earnings to the
Central Government or to the local governments.

The import business of foreign trade companies at various levels and of
various types shall be handled in accordance with the business scope of import
commodities approved by the Ministry of Foreign Economic Relations and Trade
and also with the existing pertinent provisions.

6. The foreign trade companies with their business scope, which are
attached to various localities and various government organs and have been
retained after the checking up and rectification, shall be submitted to the
Ministry of Foreign Economic Relations and Trade for examination and approval;
with respect to the foreign trade companies at various levels and of various
types in Guangdong and Fuiian Provinces that were established after examination
and approval, the framework for the abolishment and merger of these companies
formulated in the process of the checking up and rectification shall also be
submitted to the Ministry of Foreign Economic Relations and Trade for
examination and approval. The foreign trade companies that have been retained
after verification and confirmation shall present the examination and
confirmation certificate issued by the Ministry Foreign Economic Relations and
Trade to the administrative departments for industry and commerce for
examination and approval, and then go through the procedures for registration.

The foreign trade companies at various levels and of various types located
in Hainan Province and in the special economic zones shall be checked up and
rectified in accordance with the pertinent provisions and the unified
arrangement. The foreign trade companies at various levels and of various types
have been retained after the checking up and rectification shall be submitted
by their respective competent departments for foreign economic relations and
trade to the Ministry of Foreign Economic Relations and Trade for the record.

In the event that a company has been discovered not in conformity with the
aforesaid provisions, the Ministry of Foreign Relations and Trade has the right
to abolish it, or revoke its right to handle external business, or to readjust
its business scope.

7. In accordance with the decision of the Central Committee of the
Communist Party of China and the State Council that henceforth government
organs from the State Council down to the people’s governments at various
levels shall, in principle, not directly manage any companies, foreign trade
companies at various levels and of various types as well as companies that
chiefly handle import and export business shall all be placed under the
leadership and administration, in their line of industry and business
operations, by the Ministry of Foreign Economic Relations and Trade and by the
local competent departments for foreign economic relations and trade in
accordance with the unified policies formulated by the State.

8. After the completion of the checking up and rectification, the import
and export business related to their own products, as conducted by large and
medium-sized technology-intensive production enterprises and conglomerates of
the closely-knit type, shall be examined and approved by the local competent
departments for foreign economic relations and trade, and then submitted to the
Ministry of Foreign Economic Relations and Trade for the record; in the event
that a production enterprise or conglomerate is discovered to be short of the
prescribed qualifications for handling import and export business, the Ministry
of Foreign Economic Relations and Trade has the right to overrule it. An
application, which is filed by a national or transprovincial conglomerate for
handling import and export business, shall be examined and approved by the
Ministry of Foreign Economic Relations and Trade.
SUGGESTIONS OF THE MINISTRY OF MATERIAL SUPPLIES CONCERNING THE FURTHER
CHECKING UP AND RECTIFICATION OF VARIOUS TYPES OF MATERIAL SUPPLY
COMPANIES (Omitted)?

MEASURES FOR THE ADMINISTRATION OF FOREIGN-CAPITAL FINANCIAL INSTITUTIONS AND CHINESE-FOREIGN EQUITY JOINT FINANCIAL INSTITUTIONS IN THE SHANGHAI MUNICIPALITY

Category	BANKING	Organ of Promulgation	The State Council	Status of Effect	Invalidated
Date of Promulgation	1990-09-08	Effective Date	1990-09-08	Date of Invalidation	1994-04-01

Measures for the Administration of Foreign-capital Financial Institutions and Chinese-foreign Equity Joint Financial Institutions in the Shanghai Municipality

Chapter I  General Provisions
Chapter III  Registered Capital and Operating Funds
Chapter IV  Business Scope
Chapter V  Management of Business
Chapter VI  Supervision and Inspection
Chapter VII  Dissolution and Liquidation
Chapter VIII  Provisions of Penalties
Chapter IX  Supplementary Provisions

(Approved by the State Council on September 7, 1990 and promulgated by

Decree No. 2 of the People’s Bank of China on September 8, 1990) (Editor’s
Note: The Measures have been annulled by the Regulations of the People’s
Republic of China on Administration of Foreign-Capital Financoal Institutions
promulgated on February 25, 1994 and effective as of April 1, 1994)
Chapter I  General Provisions

Article 1 These Measures are formulated for the purpose of meeting the
needs of opening to the outside world and the economic development of the
Shanghai Municipality, strengthening and perfecting the administration of
foreign-capital financial institutions and Chinese-foreign equity joint
financial institutions.

Article 2 The term “foreign-capital financial institutions and
Chinese-foreign equity joint financial institutions”, referred to in these
Measures, denotes the following institutions which are established with
approval and registered to engage in business operations in accordance with
these Measures and with the pertinent provisions of other laws and regulations
of the People’s Republic of China:

1) foreign-capital banks with their head offices established in the
Shanghai Municipality (hereinafter referred to as “foreign bank”);

2) branches of foreign banks established in the Shanghai Municipality
(hereinafter referred to as foreign branch bank”);

3) banks established in the Shanghai Municipality with joint capital and
operation by foreign financial institutions and Chinese financial institutions
(hereinafter referred to as “joint bank”); and

4) financial companies established in the Shanghai Municipality with
joint capital and operation by foreign financial institutions and Chinese
financial institutions (hereinafter referred to as “joint financial company”).

Article 3 Foreign-capital financial institutions and Chinese-foreign
equity joint financial institutions shall abide by the laws and regulations of
the People’s Republic of China and their legitimate business activities and
lawful rights and interests shall be protected by Chinese laws.

Article 4 The People’s Bank of China is the competent authority in charge
of examining and approving, administering, and supervising foreign-capital
financial institutions and Chinese-foreign equity joint financial institutions.
The People’s Bank of China authorizes its Shanghai Branch to exercise
day-to-day administration and supervision of foreign capital financial
institutions and Chinese-foreign equity joint financial institutions.

Chapter II Establishment and Registration

Article 5 Any party applying for the approval to set up a foreign bank
shall satisfy the following requirements:

1) the investor is a financial institution;

2) the applicant has a representative office of more than three years’
standing inside China; and

3) the applicant possesses total assets of more than US$ 10 billion at
the end of the year prior to the submission of such an application.

Article 6 Any party applying for the approval to set up a foreign branch
bank shall satisfy the following requirements:

1) the applicant has a representative office of more than three years’
standing inside China;

2) the applicant possesses total assets of more than US$ 20 billion at
the end of the year prior to the submission of such an application; and

3) in the home country or region of the applicant, there is a sound system
for financial administration and supervision.

Article 7 Parties applying for the approval to set up a joint bank or a
joint financial company shall satisfy the following requirements:

1) each investing party to a joint bank or joint financial company is a
financial institution; and

2) the foreign investor has a representative office inside China.

Article 8 For a foreign bank to be set up, the foreign investor shall
apply to the people’s Bank of China and submit the following documents and
data:

1) an application for the establishment thereof, which shall include the
name of the intended bank, the registered capital and the amount of the
paid-in capital, and the types of business operations the bank intends to
engage in;

2) a feasibility study report;

3) the statements of assets and liabilities of the investor during the
three successive years prior to the submission of such an application,
together with the relevant certifying documents;

4) the draft articles of association of the intended bank;

5) a copy of the business licence of the investor approved and issued by
the competent authority concerned in the home country or region of the
investor and;

6) other documents and data as required by the People’s Bank of China.

Article 9 For a foreign branch bank to be set up, the head office of the
foreign bank concerned shall apply to the People’s Bank of China and submit
the following documents and data:

1) an application duly signed by the chairman of the board of directors
or the general manager of the bank, which shall include the name of the
intended branch bank, the amount of operating funds approved and allocated
by the head office, and the types of business operations the branch bank
intends to engage in;

2) annual reports for the three successive years prior to the submission
of such an application;

3) a copy of the business licence of the applying bank approved and
issued by the competent authorities of the home country or region of the
applying bank; and

4) other documents and data as required by the People’s Bank of China.

Article 10 For a joint bank or a joint financial company to be set up,
all the parties thereto shall jointly apply to the People’s Bank of China
and submit the following documents and data:

1) an application for the establishment thereof, which shall include the
name of the intended joint financial institution, the name of each investing
party thereto, the registered capital and the amount of the paid-in capital,
the respective percentage of contributions by the parties, and the types of
business operations the joint financial institution intends to engage in;

2) a feasibility study report jointly prepared by the parties thereto;

3) the agreement, the contract and the draft articles of association of
the joint financial institution initialled by the authorized representative
of each of the parties thereto;

4) the statements of assets and liabilities of each of the parties
thereto during the three successive years prior to the submission of such
an application, together with relevant supporting documents;

5) copies of the respective business licences of all the parties thereto
approved and issued by the competent authorities concerned of the home
country of region of each of the parties; and

6) other documents and data as required by the People’s Bank of China.

Article 11 Any of the documents and data prescribed in Articles 8,9 and
10 of these Measures, with the exception of the annual reports, if written
in a foreign language, shall be submitted together with a Chinese translation
thereof.

Article 12 After the application for the approval of such establishment
has been examined and approved by the People’s Bank of China, an official
application form shall be issued to the applicant(s).

The applicant(s) shall, after filling in the official application form,
formally apply to the People’s Bank of China and shall submit the following
documents for the application:

1) the official application form duly signed by the legal
representative(s) of the applicant(s) or the representative(s) authorized by
the applicant(s) (which shall be submitted in triplicate);

2) a list of the principal persons in charge of the institution to be set
up and their respective curriculum vitae;

3) power(s) of attorney for the principal persons in charge of the
institution;

4) where a foreign branch bank is to be set up, letters of undertaking
issued by the head office assuming for its branch office the obligations for
tax payment and debt repayment; and

5) other relevant data.

Article 13 A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution shall, within 30 days of receipt of the
certificate of approval issued by the People’s Bank of China, undertake the
procedures of registration for the issuance of business licence with the
administrative department for industry and commerce in accordance with the
pertinent laws and regulations of the People’s Republic of China and shall,
within 30 days of commencement of business operations, undertake the
procedures for tax registration with the tax authorities in accordance with
the law.

Article 14 A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution whose establishment has been approved
shall, after obtaining the business licence, apply to the State Administration
of Foreign Exchange Control for the approval and issuance of a Licence for
Business Operations in Foreign Exchange.

Article 15 In the event that a foreign-capital financial institution or
a Chinese-foreign equity joint financial institution should fail to commence
its business operations within 12 months of receipt of the certificate of
approval issued by the People’s Bank of China, the certificate of approval
shall automatically become null and void.

Article 16 A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution shall apply to the People’s Bank of China
for verification and approval in respect of any one of the following items:

1) adjustment and transfer of the investment capital stock;

2) change of the business site;

3) change of the chairman (or the vice-chairman) of the board of
directors, or the president (or the vice-president), the general manager
(or the deputy general manager), or the president (or vice-president) of a
branch office; and

4) establishment of a branch office outside China.
Chapter III Registered Capital and Operating Funds

Article 17 The minimum amount of the registered capital of a foreign
bank or a joint bank shall be freely convertible currencies equivalent to
US$ 30 million. The minimum amount of the registered capital of a joint
financial company shall be freely convertible currencies equivalent to US$ 20
million. Their respective paid-in capital shall be no less than 50 percent of
their respective registered capital.

A foreign branch bank shall be allocated as its operating funds by its
head office a sum of freely convertible currencies equivalent to not less
than US$ 30 million.

Article 18 A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution shall, within 30 days of receipt of the
certificate of approval issued by the People’s Bank of China, raise in full
the paid-in capital operating funds, which shall be verified by a Chinese
registered accountant, who shall, upon verification, issue a certificate to
that effect.

Article 19 Each year, a foreign bank, a joint bank, or a joint financial
company shall allocate 25 percent of its after-tax net profit as supplementary
capital until the total amount of the paid-in capital and reserve funds is
twice that of the registered capital.

Each year, a foreign branch bank shall keep 25 percent of its after-tax
net profit inside China to supplement its operating funds until the kept
profit is equal to its operating funds.
Chapter IV Business Scope

Article 20 The People’s Bank of China shall, based on the application
submitted to it, grant permission to a foreign bank, a joint bank, or a
foreign branch bank to engage in part or all of the following business
operations:

1) deposits in foreign currencies;

2) loans in foreign currencies;

3) discounts of negotiable instruments in foreign currencies;

4) investments in foreign currencies;

5) remittances in foreign currencies;

6) guarantees of foreign exchange;

7) import and export settlement;

8) buying and selling of foreign exchange on its own account or on
customers’ account;

9) buying and selling of securities in foreign currencies;

10) acting as an agent for the exchange of foreign currencies and for
the cashing of negotiable instruments in foreign currencies;

11) acting as an agent for payments against credit cards in foreign
currencies;

12) custody and safe deposit box services;

13) credit and financial standing investigation and consultancy services;
and

14) other services approved.

Article 21 The People’s Bank of China shall, based on the application
submitted to it, grant permission to a joint financial company to engage in
part or all of the following business operations:

1) loans in foreign currencies;

2) discounts of negotiable instruments in foreign currencies;

3) investments in foreign currencies;

4) guarantees of foreign exchange;

5) buying and selling of securities in foreign currencies;

6) credit and financial standing investigations and consultancy services;

7) trust in foreign currencies;

8) deposits in foreign currencies with each deposit amounting to not
less than US$ 100,000 for period of no less than three months; and

9) other services approved.

Article 22 The terms “deposits in foreign currencies” referred to in
this Chapter denotes the following deposits denominated in foreign currencies:

1) interbank deposits inside and outside China;

2) non-interbank deposits outside China;

3) deposits by foreigners inside China;

4) deposits by overseas Chinese and by compatriots from Hong Kong, Macao
and Taiwan;

5) deposits by enterprises with foreign investment;

6) deposits of loans granted by foreign-capital financial institutions
or Chinese-foreign equity joint financial institutions to enterprises other
than those with foreign investment; and

7) other kinds of deposits approved.

Article 23 In handling import and export settlement, foreign banks,
joint banks or foreign branch banks shall offer services only to enterprises
with foreign investment and those enterprises other than those with foreign
investment which are authorized to engage in import and export operations.
But with respect to import settlement with enterprises other than those with
foreign investment, the funds needed for the import in question shall have
come from the loans of the bank which is handling the settlement.
Chapter V Management of Business

Article 24 A foreign-capital institution or a Chinese-foreign equity
joint financial institution which engages in deposit business operations
shall place deposit reserves with the Shanghai Branch of the People’s Bank
of China. The ratios of the reserves as against various deposits shall be
determined by the People’s Bank of China and shall be adjusted in accordance
with the actual needs. Such deposit reserves shall be interest-free.

Article 25 The total amount of loans which a foreign-capital financial
institution or a Chinese-foreign equity joint financial institution grants
to any one enterprise and its associated enterprises may not exceed 30
percent of the sum total of its paid-in capital and its total reserves, with
the exception of loans specially approved by the People’s Bank of China.

Article 26 The total amount of investments by a foreign-capital financial
institution or by a Chinese-foreign equity joint financial institution may
not exceed 30 percent of the sum total of its paid-in capital and its total
reserves, with the exception of investments in financial enterprises approved
by the People’s Bank of China.

Article 27 The total assets of a foreign-capital financial institution
or of a Chinese-foreign equity joint financial institution may not exceed 20
times the sum total of its paid-in capital and its total reserves.

Article 28 30 percent of the operating funds of a foreign branch bank
shall be put by in the form of interest-bearing assets as prescribed by the
People’s Bank of China, which shall include depositing the said funds in a
bank or banks designated by the People’s Republic of China.

Article 29 Real estate owned by a foreign-capital financial institution
or by a Chinese-foreign equity joint financial institution may not exceed
25 percent of the sum total of its paid-in capital and its total reserves;
its other assets may not exceed 15 percent thereof.

Article 30 A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution shall ensure the mobility of its assets.

Article 31 The total amount of deposits by sources inside China in a
foreign-capital financial institution or in a Chinese-foreign equity joint
financial institution may not exceed 40 percent of its total assets inside
China.

Article 32 A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution shall maintain proper reserves for bad
debts in accordance with the relevant provisions.

Article 33 The interest rates of deposits and loans of a foreign-capital
financial institution or of a Chinese-foreign equity joint financial
institution and the various service charges shall be determined by the
Bankers’ Association through consultation or be fixed in the light of the
international market and shall be submitted to the Shanghai Branch of the
People’s Bank of China for approval.

Article 34 A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution shall, in accordance with the relevant
provisions, draw the reserve fund, the staff bonus fund, the welfare fund
and the enterprise development fund from the profit after tax paid in
accordance with the law.

Article 35 A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution shall engage at least one Chinese citizen
as member of its senior managerial body.

The senior managerial personnel of a foreign-capital financial institution
or of a Chinese-foreign equity joint financial institution may not
concurrently hold important positions in any other economic organizations.

Article 36 A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution shall invariably appoint a Chinese
registered accountant and such an appointment is subject to confirmation by
the Shanghai Branch of the People’s Bank of China.
Chapter VI Supervision and Inspection

Article 37 A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution shall set up a sound internal auditing
system and enhance its own ability of self-restraint.

Article 38 A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution shall submit its financial and business
statements to the People’s Bank of China in accordance with the relevant
provisions.

Article 39 The People’s Bank of China and its Shanghai Branch shall
have the right to examine and audit the business and financial status of a
foreign-capital financial institution or of a Chinese-foreign equity joint
financial institution.
Chapter VII Dissolution and Liquidation

Article 40 If a foreign-capital financial institution or a
Chinese-foreign equity joint financial institution is to terminate voluntarily
its business activities, it shall, 30 days prior to the date of termination
thereof, submit an application in writing to the People’s Bank of China and
shall, after such termination is approved by the People’s Bank of China,
effect its dissolution and liquidation.

Article 41 In the event that a foreign-capital financial institution or
a Chinese-foreign equity joint financial institution should become insolvent,
the People’s Bank of China shall order it to suspend its business and shall
set a deadline for it to clear its liabilities. If such an institution wishes
to resume its business after recovering its solvency within the prescribed
period of time for the clearing of its liabilities, it shall apply to the
People’s Bank of China for approval.

Article 42 With respect to a foreign-capital financial institution or a
Chinese-foreign equity joint financial institution which is to terminate
voluntarily its business activities or which has been ordered to suspend its
business in accordance with the law, its dissolution and liquidation shall
be effected in accordance with the relevant provisions of the People’s
Republic of China.

Article 43 A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution which is still in the process of clearing
its liabilities may redeem the capital stock and pay dividends only after
it has paid in full all the taxes and liabilities.

Article 44 Upon completion of liquidation, a foreign-capital financial
institution or a Chinese-foreign equity joint financial institution shall,
within the prescribed period of time, undertake the procedures with the
original registration authority to nullify its registration.
Chapter VIII Provisions of Penalties

Article 45 If, in violation of the provisions in Chapter II of these
Measures, a foreign-capital financial institution or a Chinese-foreign equity
joint financial institution is set up without authorization, the People’s
Bank of China shall have the right to order it to suspend its business,
confiscate its illegal earnings, and impose a fine in foreign exchange
equivalent to 50,000 to 100,000 Renminbi yuan.

Article 46 If, in violation of the provisions in Chapter IV of these
Measures, a foreign-capital financial institution or a Chinese-foreign equity
joint financial institution engages in business operations beyond the
authorized scope, the People’s Bank of China and its Shanghai Branch shall
have the right to order it to suspend these unauthorized business activities,
confiscate in accordance with the law the illegal earnings derived thereform,
and impose a fine in foreign exchange equivalent to 10,000 to 50,000 Renminbi
yuan.

Article 47 If a foreign-capital financial institution or a
Chinese-foreign equity joint financial institution violates the provisions
in Chapter V of these Measures, the People’s Bank of China and its Shanghai
Branch shall have the right to order it to make corrections and adjustments
or make up the deficiency and shall, in accordance with the seriousness of
the case, impose a fine in foreign exchange equivalent to 5,000 to 30,000
Renminbi yuan.

Article 48 If, in violation of the provisions in Chapter VI of these
Measures, a foreign-capital financial institution or a Chinese-foreign equity
joint financial institution fails to submit the statements required within
the prescribed period of time or defies supervision and examination, the
People’s Bank of China and its Shanghai Branch shall, in accordance with the
seriousness of the case, give a warning, circulate a notice of reprimand,
or impose a fine in foreign exchange equivalent to 3,000 to 10,000 Renminbi
yuan.

Article 49 If a foreign-capital financial institution or a
Chinese-foreign equity joint financial institution violates these Measures,
to a serious extent, the People’s Bank of China shall order it to suspend
its business activities and shall, in an extreme case, order it to disband.
Chapter IX Supplementary Provisions

Article 50 Financial institution with overseas-Chinese capital and
financial institutions with capital from the regions encompassing Hong Kong,
Macao and Taiwan shall be governed with reference to these Measures.

Article 51 Any foreign branch bank already established in the Shanghai
Municipality prior to the promulgation of these Measures shall, in accordance
with these Measures, make up for the establishment and registration
procedures. With respect to a foreign branch bank which fails to conform to
the relevant provisions of these Measures, the Shanghai Branch of the People’s
Bank of China shall set a deadline for it to make adjustments.

Article 52 The People’s Bank of China shall be responsible for the
interpretation of these Measures and shall formulate specific provisions in
accordance with these Measures.

Article 53 These Measures shall go into effect as of the date of
promulgation.

RESOLUTION ON THE NATIONAL DAY

Category	NATIONAL FLAG, NATIONAL EMBLEM, CAPITAL, NATIONAL ANTHEM AND NATIONAL DAY	Organ of Promulgation	The Central People’s Government	Status of Effect	In Force
Date of Promulgation	1949-12-02	Effective Date	1949-12-02

Resolution on the National Day of the People’s Republic of China

(Adopted at the 4th Meeting of the Central People’s Government Council

at December 2, 1949)

The “Suggestion to the Government for Taking the First of October as the
National Day of the People’s Republic of China, in Stead of the Tenth of
October as the Old National Day”, which was adopted by the First Session of
the First National Committee of the Chinese People’s Political Consultative
Conference(CPPCC) at October 9, 1949, has been submitted to the Central
People’s Government for decision and implementation.

The Central People’s Government Council decides to adopt the Suggestion
by the First National Committee of the CPPCC, considering that it tallies
with the actual history and represents the people’s will.

It is hereby announced by the Central People’s Government Council:
Starting with 1950, the first of October, the great date on which the
People’s Republic of China announced its establishment, shall be the National
Day of the People’s Republic of China.

INTERIM MEASURES FOR THE ADMINISTRATION OF THE FOREIGN-INVESTED DEVELOPMENT AND MANAGEMENT OF TRACTS OF LAND

Category	LAND ADMINISTRATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1990-05-19	Effective Date	1990-05-19

Interim Measures for the Administration of the Foreign-invested Development and Management of Tracts of Land

(Promulgated by Decree No. 56 of the State Council of the People’s

Republic of China on May 19, 1990 and effective as of the date of
promulgation)

Article 1 These Measures are formulated for the purpose of attracting
foreign investment for the development and management of tracts of land
(hereinafter referred to as “tract development”) so as to intensify the
construction of public works, improve the environment for investment,
introduce foreign-invested technically advanced enterprises and
export-oriented enterprises and develop the export-oriented economy.

Article 2 The term “tract development” as used in these Measures means
that after obtaining the right to the use of state-owned land, the investors
shall carry out, as planned, comprehensive development and construction on the
land, including levelling the ground and constructing such public works as
water supply and drainage systems, power and heat supply systems, roads and
communications networks, and communications facilities, so that conditions
shall be created for the land to be used for industrial or other construction
purposes. The investor shall then transfer the right to the use of the land
for operating public utilities, or proceed to construct such above-ground
buildings as industrial houses and the supporting facilities for production
and everyday life services and engage in the business activities of
transferring or leasing these above-ground buildings.

Definite development targets shall be specified for tract development and
there shall be definite construction projects that are intended to make use of
the developed land.

Article 3 With respect to a project to attract foreign investment for
tract development, the municipal or county people’s government shall organize
the drawing up of a tract development project proposal (or a feasibility study
report, the same hereinafter).

With respect to a tract development project which is to make use of 1,000
mu or less of arable land or 2,000 mu or less of other land and whose amount
of investment for comprehensive development falls within the limits of powers
for examination and approval of the people’s government of the province,
autonomous region or municipality directly under the Central Government
(including the people’s government or administrative committee of a special
economic zone, the same hereinafter), the project proposal shall be submitted
to the people’s government of the province, autonomous region or municipality
directly under the Central Government for examination and approval.

With respect to a tract development project which is to make use of more
than 1.000 mu of arable land or more than 2,000 mu of other land and whose
amount of investment for comprehensive development exceeds the limits of
powers for examination and approval of the people’s government of the
province, autonomous region or municipality directly under the Central
Government, the project proposal shall be submitted, through the people’s
government of the province, autonomous region or municipality directly under
the Central Government, to the State Planning Commission for examination,
verification and overall balancing and then to the State Council of the
People’s Republic of China for examination and approval.

Article 4 Foreign investors who intend to invest for tract development
shall, in accordance with the respective provisions of the Law of the People’s
Republic of China on Chinese-Foreign Equity Joint Ventures, the Law of the
People’s Republic of China on Chinese-Foreign Contractual Joint Ventures and
the Law of the People’s Republic of China on Foreign-Capital Enterprises, form
a Chinese-foreign equity joint venture, or a Chinese-foreign contractual joint
venture or a foreign-capital enterprise (hereinafter referred to as a
“development enterprise”) to engage in the development and management of the
tract of land.

Development enterprises shall be governed and protected by the law of
China and all their activities shall abide by the laws and regulations of the
People’s Republic of China.

Development enterprises shall have the right to act on their own in
business operations and management in accordance with the law, but they shall
have no administrative power in their development areas. The relationship
between a development enterprise and other enterprises shall be of a
commercial nature.

The State encourages the state-owned enterprises to form development
enterprises with foreign investors by using the right to the use of
state-owned land as investment or condition of co-operation.

Article 5 Development enterprises shall obtain the right to the use of
the state-owned land in their development areas in accordance with the law.

In assigning the right to the use of State-owned land to a development
enterprise, the people’s government of the municipality or county where the
development area is located shall, in accordance with the laws and
administrative rules and regulations of the State on the administration of
land, rationally specify the bounds of the tract of land, the purpose of its
use, the term of the right, the assignment fee and other conditions, sign a
contract for assigning the State-owned land and submit it for approval in
accordance with the limits of powers for examination and approval with respect
to the assignment of the right to the use of State-owned land.

Article 6 After the right to the use of State-owned land has been
assigned, the resources and objects buried thereunder shall continue to be
owned by the State. If it is necessary to exploit and utilize them, the
exploitation and utilization shall be administered in accordance with the
pertinent laws and administrative rules and regulations of the State.

Article 7 A development enterprise shall draw up a tract development plan
or a feasibility study report which shall specify the overall targets and
respective targets for different stages, the specific details and requirements
in the actual development, and the plan to utilize the developed land.

The tract development plan or feasibility study report shall, after
examination and verification by the municipal or county people’s government,
be submitted to the people’s government of the province, autonomous region or
municipality directly under the Central Government for examination and
approval. The examining and approving authorities shall organize the competent
authonties concerned to provide co-ordination concerning the construction and
management of the relevant public works.

Article 8 If the development area is within the limits of a planned urban
area, the various items of development and construction shall be in conformity
with the requirements of city planning and be submitted to the administration
of the planning.

The various items of construction in a development area shall be in
conformity with the laws, administrative rules and regulations and standards
of the State concerning environmental protection.

Article 9 A development enterprise may transfer the right to the use of
the state-owned land only after it has carried out the plan of tract
development and satisfied all the conditions prescribed in the contract for
assigning the right to the use of the state-owned land. No development
enterprise that fails to invest for the development of the land in accordance
with the conditions prescribed in the contract for assigning the right to the
use of the state-owned land and the requirements of the plan for tract
development may transfer the right to the use of the state-owned land.

The transfer or mortgage of the right to the use of state-owned land by
development enterprises and other enterprises, and the termination of the
right to the use of state-owned land shall be handled in accordance with the
laws and administrative rules and regulations of the State on the
administration of land.

Article 10 A development enterprise may attract investors to the
development area to make investment, accept the transferred right to the use
of state-owned land and launch enterprises. Enterprises with foreign
investment shall be established in accordance with the respective provisions
of the Law of the People’s Republic of China on Chinese-Foreign Equity Joint
Ventures, the Law of the People’s Republic of China on Chinese-Foreign
Contractual Joint Ventures and the Law of the People’s Republic of China on
Foreign-Capital Enterprises.

The launching of enterprises in the development areas shall be in
conformity with the State policy concerning the investment in industries. The
State encourages the launching of technically advanced enterprises and
export-oriented enterprises.

Article 11 The postal and communication undertakings in the development
areas shall be placed under the unified planning, construction and management
of the postal department. Or they may, with the approval of the province,
autonomous region or municipality directly under the Central Government, be
constructed with investment by a development enterprise; or the development
enterprise and the postal department may pool their investment for the
construction of communications facilities, which, in either case, shall be
transferred, after completion, to the postal department for operation, with
financial compensation to be given to the development enterprise in accordance
with the contract signed between the two parties.

Article 12 Development enterprises that invest in public utilities of
their own such as power stations, heat stations and water plants within the
development area may operate the business of power, water and heat supplies
within the development area or hand them over to the local enterprises of
public utilities for operation. If the capacity of the public utilities is in
surplus, which renders it necessary to be supplied to places outside the
development area or to be connected to a network outside the development area
for operation, the development enterprise shall sign a contract with the local
enterprises of public utilities in accordance with the pertinent provisions of
the State and operate in accordance with the conditions prescribed in the
contract.

If it is necessary for a development area to use water and power resources
from outside, the business thereof shall be operated by the local enterprises
of public utilities.

Article 13 If a development area covers a coastal port or bay, or a river
port sector, the coastline or riverside line shall be placed under the unified
planning and administration of the State. The development enterprise may
construct and operate a special port area and wharf in accordance with the
unified planning of the competent state communication authorities.

Article 14 No business activities or social activities that are banned by
the laws and administrative rules and regulations of the State may be engaged
within the development areas.

Article 15 If special administrative measures are required in respect of
import and export administration and Customs administration for a development
area which is mainly intended for the operation of export processing
enterprises, these shall be submitted to the State Council of the People’s
Republic of China for approval and specific measures of administration shall
be formulated by the competent authorities of the State.

Article 16 The general administration, judicial administration, port
administration and Customs administration in a development area shall be
organized and exercised respectively by the competent authorities of the
State, the people’s government of the 1ocality where the development area is
situtated, and the judicial organs that have jurisdiction.

Article 17 Tract development with investment by firms, enterprises and
other economic organizations or individuals from the regions of Hong Kong,
Macao and Taiwan shall be governed with reference to these Measures.

Article 18 These Measures shall be put into effect within the limits of
the specific economic zones, the open coastal cities and the open coastal
economic zones as of the date of promulgation.

REGULATIONS FOR THE ADMINISTRATION OF PRODUCT QUALITY CERTIFICATION

Category	TECHNOLOGICAL CONTROL	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1991-05-07	Effective Date	1991-05-07

Regulations of the People’s Republic of China for the Administration of Product Quality Certification

Chapter I  General Provisions
Chapter II  Organization and Management
Chapter III  Qualifications and Procedures
Chapter IV  Testing Bodies and Inspectors
Chapter V  Penalty Provisions
Chapter VI  Supplementary Provisions

(Promulgated by Decree No. 83 of the State Council of the People’s

Republic of China on May 7, 1991, and effective as of the date of
promulgation)
Chapter I  General Provisions

Article 1 These Regulations are formulated in order to ensure quality of
products, improve the credibility of products, safeguard the interests of the
users and consumers, facilitate international trade, and promote
international cooperation in quality certification.

Article 2 Product quality certification (hereinafter referred to as
certification) is an activity of a certification body, on the basis of
product standards and the relevant technical requirements and through its
confirmation and issuance of a certificate and certification mark, to certify
a product as in conformity with the relevant standards and technical
requirements.

Article 3 When a product has its national or sector standards to refer
to, an enterprise may apply for its certification to the sector certification
committee set up either by the competent department of the standardization
administration under the State Council or by other departments authorized by
the competent department.

Products subject to the provisions of the State laws, administrative
regulations, or rules formulated by the competent department of the
standardization administration under the State Council together with the
relevant administrative departments under the State Council that without
being certified they may not be marketed, imported or used, shall be treated
according to the State laws, administrative regulations or rules.

Article 4 Certification is classified as safety certification and
conformity certification.

Products under safety certification must conform to the requirements of
the relevant compulsory standards stipulated in the Standardization Law of
the People’s Republic of China (hereinafter referred to as the
Standardization Law).

Products under conformity certification must conform to the requirements
of the national or sector standards provided for by the Standardization Law.

Article 5 The certified products shall, except for inspections subject
to the State laws and administrative regulations, be exempt from any other
inspection and enjoy such Stateprescribed preferential treatments as higher
price for higher quality or priority in recommendation for national excellent
quality appraisal.

Article 6 The competent department of the standardization administration
under the State Council shall be in charge of the unified administration of
certification throughout the country. Sector certification committees set up
either directly by the competent department of the standardization
administration under the State Council or by other administrative departments
under the State Council with authorization of the competent department shall
be responsible for the actual operations of the certification work.
Chapter II Organization and Management

Article 7 The functions of the competent department of the
standardization administration under the State Council in the management of
the certification work are as follows:

(1) formulating principles, policies, plans and programmes for
certification;

(2) unifying or approving patterns of certification marks;

(3) examining and approving the compositions and articles of association
of the certification committee;

(4) examining and approving the certification testing bodies;

(5) registering and administering certification inspectors;

(6) examining and approving and issuing catalogues of products to be
covered by certification;

(7) publishing directories of certified products and their producers;

(8) being responsible for conducting international activities in
certification;

(9) coordinating and settling major issues in certification work; and

(10) supervising the operation of certification work.

Article 8 A certification committee shall be composed of experts from
the relevant departments of production, marketing, utilization, scientific
research and quality supervision of products and its tasks are as follows:

(1) proposing draft catalogues of products to be covered by certification;

(2) formulating specific measures for the operation of certification;

(3) ratifying national or sector standards for the certification purpose;

(4) recommending testing bodies which shall undertake certification tasks;

(5) accepting and handling applications for certification;

(6) organizing the quality system audit of an enterprise applying for
certification;

(7) approving certification, issuing certificates and filing it with the
competent department of the standardization administration under the State
Council;

(8) settling the disputes involved in certification;

(9) being responsible for supervisions and inspections of certified
products and their producers; and

(10) revoking certificates according to law.

Article 9 The competent departments of the standardization
administration of the local people’s governments at or above the county level
shall exercise supervisions and inspections over certified products within
their administrative areas and their tasks are as follows:

(1) investigating and dealing with products which do not conform to the
standards applied to when being certified, or products bearing counterfeit
certification marks;

(2) cooperating with the certification committees in supervising the
quality of certified products; and

(3) investigating and dealing with any other act concerning certification
which is against the laws, administrative regulations or rules formulated by
the competent department of the standardization administration under the
State Council together with the relevant administrative departments under the
State Council.
Chapter III Qualifications and Procedures

Article 10 Any Chinese or foreign enterprise may apply for certification.
An applying enterprise shall have the following qualifications:

(1) its product meets the requirements of national or sector standards;

(2) its product can be produced in normal serial production with stable
quality; and

(3) the quality system of the producing enterprise conforms to the
national standards for quality control and quality assurance and to the
supplementary requirements thereof.

Article 11 An enterprise shall apply for certification in accordance
with the following procedures:

(1) A Chinese enterprise shall submit its written application to the
certification committee. A foreign enterprise or its sale agent shall submit
its written application to the competent department of the standardization
administration under the State Council or to the certification committee
designated by the competent department;

(2) The certification committee shall inform the testing bodies to
conduct testing of the product;

(3) The certification committee shall conduct quality system audit of the
producing enterprise applying for certification; and

(4) The certification committee shall issue a certificate and give
permission for the use of a certification mark to the product which is
qualified for certification.

Product testing and quality system audit of a foreign enterprise may be
carried out by foreign certification bodies on commission of certification
committees designated by the competent department of the standardization
administration under the State Council according to bilateral or
multilateral agreements.

Article 12 Enterprises which have obtained the certificates are subject
to supervisions and inspections by the certification committees over their
products and quality systems.

Supervisions and inspections over the products and quality systems of the
foreign enterprises which have obtained the certificates may be carried out
by foreign certification bodies on commission according to bilateral or
multilateral agreements.

Article 13 When the standard applied to a certified product or the
quality system of an enterprise has changed to such an extent that the
product is no longer up to the qualifications it had when it was certified,
the enterprise shall cease using the certification mark.
Chapter IV Testing Bodies and Inspectors

Article 14 Testing bodies shall be examined and accredited by the
competent department of the standardization administration under the State
Council before they engage in certification testing.

Article 15 Certification inspectors shall be trained and assessed, and
registered by the competent department of the standardization administration
under the State Council before they carry out inspections over enterprises
applying for certification (including enterprises which have received
certificates).

Article 16 Testing bodies and inspectors undertaking certification tasks
shall perform their functions and obligations set by the competent department
of the standardization administration under the State Council and relevant
certification committees and be subject to their supervision and check-up.

Article 17 Testing bodies and inspectors undertaking certification tasks
shall be accountable for the test reports and inspection reports they
present, keep technical secrets of the certified products, and may not
illegally possess the scientific and technological achievements of others.
Chapter V Penalty Provisions

Article 18 Any act concerning certification which violates laws,
administrative regulations or rules jointly formulated by the competent
department of the standardization administration under the State Council and
the relevant administrative departments under the State Council shall be
subject to penalty in accordance with the provisions of laws, administrative
regulations or rules.

Article 19 Should a certified product being delivered and marketed with
the certification mark fails to meet the standards applied to when being
certified, the competent department of the standardization administration
shall order cessation of its sales and impose a fine not exceeding twice
times the amount of the illegal gains.

Should a product either uncertified or failing to pass the certification
be delivered and marketed with a certification mark, the competent department
of the standardization administration shall order cessation of its sales and
impose a fine not exceeding three times the amount of the illegal gains, and
a fine not exceeding 5,000 yuan (RMB) may be imposed on the person in charge
of the law-breaking unit.

A fine not exceeding three times the amount of the illegal gains shall be
imposed by the competent department of the standardization administration for
transfer of the certification mark, and a fine not exceeding 5,000 yuan (RMB)
may be imposed on the person in charge of the lawbreaking unit.

Article 20 In either of the following cases, the certificate shall be
revoked by the certification committee which conferred it:

(1) The quality of the certified product has deteriorated seriously, or
the quality system of the producing enterprise is no longer up to the
qualifications it had when being certified, which has caused losses and
damages to users or consumers.

(2) The supervision and inspection conclude that the certified product
does not conform to the standards, for which the producing enterprise is
responsible.

Article 21 Should a certified product fails to meet the certification
requirements but has been delivered and marketed, the producing enterprise
shall guarantee its repair, exchange and refund. The producing enterprise
shall be liable for compensation according to law when the product has caused
losses and damages to users or consumers.

Article 22 Anyone engaged in the certification management, testing and
inspection who transgresses law, neglects his duties or practises favouritism
and irregularities shall be subject to administrative sanctions by his
employing unit. When a crime is constituted, the offender’s criminal
responsibilities shall be investigated by judicial authorities according to
law.

Article 23 If a party disagrees with a pecuniary penalty, an application
for reconsideration of the case may be lodged within 15 days on receipt of
the notification of the penalty with the administrative authorities at the
next higher level of the authorities which made the penalty decision. If a
party still disagrees with the decision of reconsideration, a suit may be
brought to the people’s court within 15 days on receipt of the decision of
reconsideration. A party may also bring a suit to the people’s court directly
within 15 days on receipt of the notification of the penalty. The authorities
which made the penalty decision shall apply to the people’s court for
compulsory enforcement of the decision, in case a party fails both to apply
for reconsideration or initiate legal proceedings with a people’s court and
to comply with the penalty decision within the specified period.
Chapter VI Supplementary Provisions

Article 24 Certification fees shall be charged and collected from
enterprises applying for certification according to the non-profit-making
principle. The specific measures for charging shall be laid down separately
by the competent department of the standardization administration under the
State Council together with the pricing authorities of the State Council.

Article 25 Commodity inspection bodies may carry out quality
certification work on import and export commodities according to agreements
signed between the national commodity inspection department and the relevant
foreign bodies or on commission of the relevant foreign bodies.

Article 26 These Regulations do not apply to military products.

Article 27 The competent department of the standardization
administration under the State Council shall be responsible for the
interpretation of these Regulations.

Article 28 These Regulations shall come into force as of the date of
promulgation.

MEASURES GOVERNING THE PARTICIPATION OF FOREIGN FIRMS IN THE SALVAGE OF SUNKEN SHIPS AND OBJECTS IN THE CHINESE COASTAL WATERS

Category	COMMUNICATIONS AND TRANSPORT	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1992-07-12	Effective Date	1992-07-12

Measures Governing the Participation of Foreign Firms in the Salvage of Sunken Ships and Objects in the Chinese Coastal Waters

(Promulgated on July 12, 1992 by Decree No. 102 of the State Council of

the People’s Republic of China and effective as of the date of promulgation)

Article 1 These Measures are formulated in order to strengthen the
control of the participation of foreign firms in the activities salvaging
sunken ships and objects in the Chinese coastal waters and to ensure the
lawful rights and interests of the parties concerned.

Article 2 These Measures shall apply to the participation of foreign
firms in the activities salvaging sunken ships and objects with commercial
value in the Chinese coastal waters.

These Measures shall not apply to the cases where the owners of the sunken
ships and objects engage in the salvage themselves or invite salvage agencies
to undertake the salvage in the Chinese coastal waters.

Article 3 For the purpose of these Measures, the following terms shall
have the meanings respectively defined hereunder:

(1) “Foreign firm” means enterprises or other economic organizations or
individuals of foreign countries.

(2) “Coastal waters” means the internal seas and territorial seas of the
People’s Republic of China as well as all the other sea areas under its
jurisdiction.

(3) “Sunken ships and objects” means all kinds of vessels and objects
which have sunken under the surface of water or have been buried beneath the
mud surface at seabed in the Chinese coastal waters, which include the main
bodies of the sunken ships or objects and their equipments, and all of the
cargoes or other sundries loaded thereon.

Sunken warships and weaponry with important military value and sunken
ships and objects confirmed as cultural relics are not covered in the scope of
salvage by the participation of foreign firms.

(4) “Salvage operation” means all kinds of operational activities for
salvaging sunken ships and objects according to a joint salvage contract or a
contract for a Chinese-foreign salvage cooperative enterprise, including the
implementation of survey, identification, salvage and other activities related
thereto.

(5) “Operator of salvage” means any unit or individual that actually
operates the salvage.

Article 4 The Chinese Government shall protect, in accordance with the
law, the gains and other lawful rights and interests due to the Chinese and
foreign parties who participate in the salvage of sunken ships and objects in
the Chinese coastal waters (hereinafter referred to as “Chinese and foreign
parties participating in the salvage”).

All the activities of Chinese and foreign parties participating in the
salvage shall comply with the related laws, rules and regulations of the
People’s Republic of China, and be subjected to the control and supervision of
the competent authorities of the Chinese Government.

Article 5 The Ministry of Communications of the People’s Republic of
China is in charge of the affairs regarding the participation of foreign firms
in the salvage of sunken ships and objects in the Chinese coastal waters.

Article 6 Foreign firms may participate in the salvage of sunken ships
and objects in the Chinese coastal waters in either of the following modes:

(1) to sign a joint salvage contract with a Chinese operator of salvage
and undertake the salvage activities in accordance with the rights and duties
of each party as stipulated in the contract;

(2) to establish a Chineseforeign salvage cooperative enterprise with a
Chinese operator of salvage and undertake the salvage activities.

Article 7 Any Chinese operator of salvage shall be a professional salvage
agency with the qualification of undertaking salvage, and such qualification
shall be examined and approved by the Ministry of Communications of the
People’s Republic of China pursuant to the state-formulated requirements of
the professional salvage agency.

Article 8 Definite salvage targets must be expressly fixed in either a
joint salvage contract or a contract for a Chineseforeign salvage cooperative
enterprise. Any sunken ships or objects other than those fixed in the
contracts found during the salvage operation may not be salvaged by either
Chinese or foreign party participating in the salvage without authorization.

Article 9 The Ministry of Communications of the People’s Republic of
China shall be responsible for uniformly organizing negotiations with foreign
firms on affairs concerning the salvage of sunken ships and objects in the
Chinese coastal waters, determining salvage projects and organizing Chinese
operators of salvage to sign joint salvage contracts or contracts for
Chinese-foreign salvage cooperative enterprises with foreign firms in
accordance with the law.

Article 10 The joint salvage contract signed between a foreign firm and a
Chinese operator of salvage shall accord with the related stipulations of the
Law of the People’s Republic of China on Economic Contracts Involving Foreign
Interest and be subject to the approval by the Ministry of Communications of
the People’s Republic of China.

The Chinese-foreign salvage cooperative enterprise formed by a foreign
firm and a Chinese operator of salvage shall go through the formalities of
examination and approval as well as registration in accordance with the
stipulations of the Law of the People’s Republic of China on Chinese-Foreign
Contractual Joint Ventures.

Article 11 While a joint salvage contract or a contract for a
Chinese-foreign salvage cooperative enterprise is submitted to the authorities
for examination and approval, the relevant documents of the implementing
salvage plan approved by the harbour superintendency establishments of the
People’s Republic of China (hereinafter referred to as harbour
superintendency) shall be presented; where an area of fishing port is
involved, the relevant documents approved by the fishery administrative
authorities and fishing harbour superintendency establishments shall be
presented; where a military forbidden area or district is involved, the
relevant documents approved by the competent military authorities shall be
presented.

The examination and approval authorities shall, within 45 days after
receiving the application for examination and approval of the above-mentioned
contract, decide whether to approve or disapprove.

Article 12 After the approval of the joint salvage contract, the foreign
firm shall apply for business registration to the State Administration for
Industry and Commerce of the People’s Republic of China within 30 days after
its receipt of the document of approval and obtain a business license; it
shall register with the local tax authorities within 30 days after obtaining
the business license.

Article 13 A foreign firm participating in the salvage of sunken ships
and objects within the internal seas and territorial seas of the People’s
Republic of China shall bear all the costs and expenses as well as the
financial risks during the salvage operation. The Chinese operator of salvage
is responsible for the coordination with the relevant authorities, the
fulfilment of the necessary formalities and the guardianship during the
salvage operation.

A foreign firm participating in the salvage of sunken ships and objects
beyond the internal seas and territorial seas of the People’s Republic of
China and within other sea areas under its jurisdiction shall bear all the
costs and expenses as well as the financial risks in the phase of survey and
identification. The Chinese and foreign parties shall implement the salvage
operation according to the stipulations of the contract where the salvage is
necessary.

Article 14 The vessels, equipments and labour services needed by the
foreign firm in implementing the joint salvage contract shall first be leased
and employed from the Chinese operator of salvage, if the conditions are the
same.

Article 15 The objects recovered from the salvage of sunken ships and
objects in the Chinese coastal waters with the participation of a foreign firm
(hereinafter referred to as “recovered objects”) shall be disposed of in the
following ways:

(1) The ownership of the sunken ships and objects recovered within the
internal seas and territorial seas of the People’s Republic of China resides
in the People’s Republic of China. The foreign firm shall obtain its gains
from the recovered objects or the sum evaluated in terms of money in
accordance with the stipulations of the joint salvage contract or the contract
for the Chineseforeign salvage cooperative enterprise.

The Chinese operator of salvage shall obtain its gains from the recovered
objects or the sum evaluated in terms of money in accordance with the relative
stipulations of the State or those of the contract for the Chinese-foreign
salvage cooperative enterprise.

(2) The sunken ships and objects recovered from beyond the internal seas
and territorial seas of the People’s Republic of China but within other sea
areas under its jurisdiction shall be distributed to Chinese and foreign
parties participating in the salvage according to the proportions stipulated
in the contract, in form of the recovered objects or the sum evaluated in
terms of money.

(3) Any cultural relics found in the recovered objects or during the
salvage operation shall be reported to the local administrative department for
cultural relics without delay. The department for cultural relics shall
dispose of them in accordance with the law and regulations of the People’s
Republic of China concerning cultural relics protection and give appropriate
rewards to the personnel concerned.

Article 16 The recovered objects obtained by the foreign firms according
to law can be purchased by the relevant authorities of Chinese Government at
the price of international market or transported abroad by the foreign firms
after being taxed and going through the Customs formalities pursuant to the
Chinese Law.

Foreign currency of other gains obtained by the foreign firms can be
remitted abroad after being taxed according to Law.

Article 17 Before the salvage operation, the operators of salvage shall
apply for the issuance of a navigation warning in accordance with the relevant
stipulations of the Maritime Traffic Safety Law of the People’s Republic of
China.

The Ministry of Communications of the People’s Republic of China shall
circulate the related data such as the commencement and termination time of
the salvage operation and its geographical position to the State Bureau of
Oceanography and other relevant authorities.

The operators of salvage shall engage in their salvage operation within
the operational area approved by the harbour superintendency and report the
progress of the salvage activities according to the requirements of the
harbour superintendency. Any methods detrimental to marine resources, marine
environment, underwater facilities, marine military installations and other
interests of the People’s Republic of China may not be used in salvage
operation.

Article 18 The relevant personnel from Chinese and foreign parties
participating in the salvage shall, from the beginning to the end, take part
in the salvage operation and are jointly responsible for the work of
registering and storing the recovered objects.

Article 19 All the recovered objects shall receive the inspection by the
relevant authorities at the place assigned by the competent authorities of the
Chinese Government.

Article 20 Anyone who has violated these Measures to salvage sunken ships
and objects in the Chinese coastal waters shall be ordered to stop the salvage
operation and be warned or fined by harbour superintendency. The violator who
has already caused losses to the State or other individuals shall bear the
liability of compensation.

The amount of fine shall be appraised and decided according to the related
penalty provisions of the State marine traffic administration.

Article 21 The participation of any enterprise or individual or other
economic organization from Hong Kong, Macao or Taiwan in the salvage of sunken
ships and objects in the Chinese coastal waters shall be handled with
reference to these Measures.

Article 22 The Ministry of Communications of the People’s Republic of
China shall be responsible for the interpretation of these Measures.

Article 23 These Measures shall go into effect as of the date of
promulgation.

PROVISIONS ON THE IMPLEMENTATION OF THE INTERNATIONAL COPYRIGHT TREATIES

Provisions on the Implementation of the International Copyright Treaties

(Effective Date:1992.09.30–Ineffective Date:)

Article 1 These Provisions are formulated to implement the international copyright treaties and to protect the legitimate rights and interests
of the owners of copyright in foreign works.

Article 2 With regard to the protection of foreign works, the Copyright Law of the People’s Republic of China (hereinafter referred to as “the
Copyright Law”), the Regulations for the Implementation of Copyright Law of the People’s Republic of China, the Regulations for the
Protection of Computer Software and these Provisions shall apply.

Article 3 The “international copyright treaties” mentioned in these Provisions refers to the Berne Convention for the Protection of Literary
and Artistic Works (hereinafter referred to as “the Berne Convention”) to which the People’s Republic of China (hereinafter referred
to as “China”) is a party, and the bilateral agreements on copyright which China has concluded with foreign countries.

Article 4 Foreign works mentioned in these Provisions shall include:

(1) works of which the author or one of the co-authors or the other owner of copyright or one of the co-owners of copyright is a national
or a permanent resident of a country party to the international copyright treaties;

(2) works of which the author is not a national or a permanent resident of a country party to international copyright treaties but
which have been first published or published simultaneously in a country party of the international copyright treaties;

(3) Works created by others by commission from a Chinese-foreign equity joint venture, a Chinese-foreign contractual joint venture
or a foreign- capital enterprise which, by virtue of a contract, is the owner of copyright or one of the coowners of copyright of
the work.

Article 5 With regard to the term of protection for unpublished foreign works, the provisions of Articles 20 and 21 of the Copyright Law shall
apply.

Article 6 In the case of foreign works of applied art, the term of protection shall be 25 years commencing from the creation of the works.

The preceding paragraph, however, shall not apply to the works of fine arts, including designs of cartoon characters, used in industrial
goods.

Article 7 Foreign computer programmes shall be protected as literary works, shall not be subject to registration and shall enjoy a term of
protection of 50 years commencing from the end of the year of their first publication.

Article 8 Foreign works created by compiling non-protected materials shall be protected in accordance with the provisions of Article 14 of
the Copyright Law, provided that originality is shown in the selection and arrangement of such materials.

Such protection, however, shall not preclude others from using the same materials to create works of compilation.

Article 9 Foreign video recordings shall be protected as cinematographic works to the extent that international copyright treaties treat them
as such works.

Article 10 Prior authorization of the copyright owners shall be required if a published foreign work created in Chinese is to be translated
into and published in the language of a minority nationality.

Article 11 Copyright owners of foreign works have the right to authorize others to perform before the public their works in any manner and by
any means, or to communicate to the public the performance of their works.

Article 12 Copyright owners of foreign cinematographic works, television works and works of video recordings have the right to authorize others
to perform before the public their works.

Article 13 Prior authorization of the copyright owner shall be required for newspapers and periodicals to reprint a foreign work, except the
reprinting of articles on current political, economic and social topics.

Article 14 Copyright owners of foreign works may authorize or prohibit rental of copies of their works after authorizing others to distribtute
such copies.

Article 15 Copyright owners of foreign works have the right to prohibit the importation of the following types of copies of their works:

(1) infringing copies;

(2) copies coming from a country where their works are not protected.

Article 16 In the case of public performance, recording and broadcasting of foreign works, the provisions of the Berne Convention shall apply.
Where there is a collective administration organization, prior authorization of such organization shall be required.

Article 17 Foreign works which, at the date on which the international copyright treaties enter into force in China, have not fallen into the
public domain in their countries of origin shall be protected until the expiration of the term of protection as is prescribed in
the Copyright Law and these Provisions.

The preceding paragraph shall not apply to the uses of foreign works that had taken place before the international copyright treaties
entered into force in China.

A Chinese citizen or legal person who owned and used a particular copy of a foreign work for a particular purpose before the entry
into force of the international copyright treaties in China may continue to make use of that copy of the work without liability;
but such copy may not be reproduced nor used in any manner susceptible to prejudice unreasonably the legitimate rights and interests
of the copyright owner.

The application of the foregoing three paragraphs shall be subject to the provisions of the bilateral agreements on copyright concluded
by China with the countries concerned.

Article 18 Articles 5, 12, 14, 15, and 17 of these Provisions shall also apply to sound recordings.

Article 19 Where pre-existing administrative regulations relating to copyright conflict with these Provisions, these Provisions shall apply.
Where these Provisions conflict with the international copyright treaties, the international copyright treaties shall apply.

Article 20 The implementation in China of the international copyright treaties shall be the responsibility of the National Copyright Administration
of China.

Article 21 The interpretation of these Provisions shall be the responsibility of the National Copyright Administration of China.

Article 22 These Provisions shall enter into force as of September 30, 1992.

GUARANTEE LAW

Category	OBLIGATORY RIGHT	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	In Force
Date of Promulgation	1995-06-30	Effective Date	1995-10-01

Guarantee Law of the People’s Republic of China

Contents
Chapter I  General Provisions
Chapter II  Guaranty
Chapter III  Mortgage
Chapter IV  Pledge
Chapter V  Lien
Chapter VI  Deposit
Chapter VII  Supplementary Provisions

(Adopted at the 14th Meeting of the Standing Committee of the

Eighth National People’s Congress on June 30, 1995, promulgated by
Order No.50 of the President of the People’s Republic of China on June
30, 1995, and effective as of October 1, 1995 )
Contents

Chapter I General Provisions

Chapter II Guaranty

Section 1 Guaranty and Guarantor

Section 2 Contract of Guaranty and Mode of Guaranty

Section 3 Liability of Guaranty

Chapter III Mortgage

Section 1 Mortgage and Gage

Section 2 Contract of Mortgage and Mortgage Registration

Section 3 Effect of Mortgage

Section 4 Realization of Mortgage

Section 5 Mortgage of Maximum Amount

Chapter IV Pledg

Section 1 Pledge of Movables

Section 2 Pledge of Rights

Chapter V Lien

Chapter VI Deposit

Chapter VII Supplementary Provisions
Chapter I General Provisions

Article 1 This Law is formulated for the purpose of promoting
the capital flow and commodity circulation, safeguarding the
realization of obligatory right, and developing the socialist market
economy.

Article 2 In such economic activities as loans, sales, goods
freight and hire of processing work, etc., where the creditor needs to
safeguard the realization of his obligatory right by the way of
guarantee, a guarantee may be established in accordance with the
provisions of this Law.

The modes of guarantee provided for in this Law shall be guaranty,
mortgage, pledge, lien and deposit.

Article 3 In activities of guarantee, the principle of equality,
voluntariness, fairness and good faith shall be complied with.

Article 4 When a third party offers the creditor a guarantee on
behalf of the debtor, he may require the debtor to offer a counter-
guarantee.

The provisions on guarantee of this Law shall be applicable
to counter-guarantee.

Article 5 A guarantee contract shall be an accessory contract to
the master contract. Where the master contract is invalid, the
guarantee contract shall also be invalid. Where an agreement is
otherwise reached in the guarantee contract, that agreement shall
prevail.

Where a guarantee contract is affirmed to be invalid, the
debtor, surety or creditor is in fault, they shall respectively bear
the relevant civil liability according to their own faults.
Chapter II Guaranty

Section 1 Guaranty and Guarantor

Article 6 In this Law, guaranty means that the guarantor and the
creditor agree that, when the debtor fails to perform his debt, the
guarantor will perform the debt or bear the liability in accordance
with the agreement.

Article 7 A guarantor may be a legal person, other organization
or a citizen who has ability to discharge of debts on behalf of
others.

Article 8 The state administrative departments shall not be a
guarantor, unless they, with the approval of the State Council,
transfer loans for the purpose of using the loans of foreign
governments or international organizations.

Article 9 Such institutions and social organizations as schools,
kindergartens and hospitals, etc., which are established for the
purpose of public interest shall not be a guarantor.

Article 10 A branch or functional department of an enterprise as
legal person shall not be a guarantor.

If a branch of an enterprise as legal person has been delegated in
writing by the legal person, it may offer the guaranty within the
delegation extent.

Article 11 No organization or individual may oblige enterprises
or financial institutions such as a bank to offer guaranty for others;
enterprises and financial institutions such as a bank shall have the
right to refuse to offer guaranty for others when they are obliged to.

Article 12 Where there are two or more guarantors for the same
debt, the guarantors shall, according to their own guaranty shares
agreed in the guaranty contract, bear the guaranty liability. In case
of no agreement on the guaranty shares, the guarantors shall bear the
joint liability. Thus the creditor may demand any of the guarantors to
bear the entire guaranty liability, and any of the guarantors shall
bear the obligation to guarantee the entire realization of the
obligatory right. The guarantor who has borne the guaranty liability
shall be enpost_titled to claim repayment from the debtor, or to demand
other guarantors bearing the joint liability to satisfy him their
shares that they shall bear.

Section 2 Guaranty Contract and Guaranty Mode

Article 13 The guarantor and creditor shall enter into a
guaranty contract in written form.

Article 14 The guarantor and creditor may enter into a guaranty
contract respectively as for a single master contract, and may also,
within the maximum obligatory right amount as for a loan contract
occurred continuously during a certain period or a commodity trade
contract, enter into a guaranty contract.

Article 15 A guaranty contract shall contain the following
contents:

1. the categories and amount of a master obligatory right
guaranteed;

2. the time limitation to perform the debt by the debtor;

3. the guaranty mode;

4. the scope guaranteed by the guaranty;

5. the time period of guaranty; and

6. other items which the two parties consider necessary to agree.

If a guaranty contract has the contents prescribed in the
proceeding paragraph incomplete, it may be supplemented.

Article 16 The guaranty mode contains:

1. the general guaranty; and

2. the joint liability guaranty.

Article 17 That the parties in a guaranty contract agree that,
when the debtor cannot perform the debt, the guaranty liability is to
be borne by the guarantor, is the general guaranty.

The guarantor of a general guaranty may, without trial or
arbitration on the disputes of a master contract, and before the debt
cannot be performed yet with compulsory enforcement on the debtors’
property according to the law, refuse to bear the guaranty liability
for the creditor.

When there is any one of the following circumstances, the
guarantor shall not exercise the right prescribed in the proceeding
paragraph:

1. the address of the debtor has changed, so that it becomes a
major difficulty for the creditor to demand him to perform the debt;

2. the people’s court accepting a debtor’s bankruptcy case, orders
suspension of execution procedure; or

3. the guarantor abandons the right described in the proceeding
paragraph in written form.

Article 18 That the parties in a guaranty contract agree that
the guarantor and debtor bear the joint liability on a debt, is the
joint liability guaranty.

If the debtor of a joint liability guaranty cannot perform the
debt at the date of expiration of the debt performance time limitation
prescribed in the master contract, the creditor may demand the debtor
to perform the debt, and may also demand the guarantor to bear the
guaranty liability within the extent of guaranty.

Article 19 If no agreement or the agreement is not clear on the
guaranty mode by the parties, the guaranty liability shall be borne
according to the joint liability guaranty.

Article 20 The guarantor of a general guaranty and joint
liability guaranty shall be enpost_titled to have the counterplead right of
the debtor. If the debtor abandons his counterplead right, the
guarantor shall still be enpost_titled to have right to counterplead.

The counterplead right means that the right of, when the creditor
exercises his obligatory right, the debtor according to legal reasons
executing the petition right against the creditor.

Section 3 Guaranty Liability

Article 21 The guaranteed scope of a guaranty concludes the
master obligatory right and its interest, contractual fine, damage
compensation and expense of credit realization. If there is an
agreement otherwise in the guaranty contract, it shall be complied
with.

If no agreement or the agreement is not clear on the guaranteed
scope of a guaranty by the parties, the guarantor shall bear the
liability to the entire debt.

Article 22 During the time period of guaranty, where the
creditor assigns the master obligatory right to a third party
according to the law, the guarantor continues to bear the guaranty
liability within the original guaranteed scope of the guaranty. If
there is an agreement otherwise in the guaranty contract, it shall
be complied with.

Article 23 During the time period of guaranty, if the creditor
wants to permit the debtor to assign the debt, he shall get the
written consent from the guarantor, the guarantor bears no guaranty
liability on the debt assigned without his consent.

Article 24 If the creditor and debtor agree to change the master
contract, they shall get the written consent from the guarantor,
without this written consent, the guarantor bears no longer guaranty
liability. If there is an agreement otherwise in the guaranty
contract, it shall be complied with.

Article 25 If no agreement on guaranty period between the
guarantor and creditor of a general guaranty, the guaranty period
shall be 6 months from the date of expiration of the master debt
performance time limitation.

During the guaranty period agreed in the contract or described in
the proceeding paragraph, if the creditor has not filed a case against
the debtor or applied for the arbitration, the guarantor shall be
exempted from the guaranty liability; if the creditor has filed a case or
applied for the arbitration, the guaranty period shall be applied to the
provisions on the discontinuance of limitation of action.

Article 26 If no agreement on a guaranty period between the
guarantor and creditor of a joint liability guaranty, the creditor
shall be enpost_titled to have the right within 6 months from the date of
expiration of the master debt performance time limitation to demand
the guarantor to bear the guaranty liability.

During the guaranty period agreed in the contract or described in
the proceeding paragraph, if the creditor has not demanded the
guarantor to bear guaranty liability, the guarantor shall be exempted
from the guaranty liability.

Article 27 The guarantor shall make a guaranty on a credit
occurred continuously according to the provisions of Article 14 in
this law, if no agreement on guaranty time period, the guarantor may
at all times inform the creditor in written form to terminate the
guaranty contract, however the guarantor shall, as for the credit
occurred before having informed the creditor, bear guaranty liability.

Article 28 Where there are both a guaranty and a guarantee of
real right on a same obligatory right, the guarantor shall bear the
guaranty liability on the obligatory right except the guarantee of
real right.

If the creditor abandons the guarantee of real right, the
guarantor shall, within the scope of right abandoned by the creditor,
be exempted from the guaranty liability.

Article 29 Where a branch of an enterprise as a legal person
enters into a guaranty contract with the creditor without written
delegation from the enterprise as legal person or exceeding the extent
of delegation, this contract shall be invalid or the part exceeding
the extent of delegation shall be invalid; if the creditor and the
enterprise as legal person has default, they shall bear the relevant
civil liability according to their fault respectively; if the creditor
has no default, the civil liability shall be borne by the enterprise
as legal person.

Article 30 If there is any one of the following circumstances,
the guarantor shall not bear the civil liability:

1. the parties of the master contract collude to defraud the
guarantor to offer a guaranty; or

2. the creditor of the master contract take means of fraud or
coercion to force the guarantor to offer a guaranty against his true
intention.

Article 31 After the guarantor has borne the guaranty liability,
he shall be enpost_titled to claim repayment from the debtor.

Article 32 After the people’s court accepts a debtor’s bankruptcy
case, if the creditor does not declare his obligatory rights, the
guarantor may take part in the bankrupted property distribution,
exercise the right to claim repayment in advance.
Chapter III Mortgage

Section 1 Mortgage and Gage

Article 33 The mortgage prescribed in this Law, means a
guarantee that a debtor or a third party does not transfer the
possession of the property listed in Article 34 in this Law, make the
said property as obligatory right. When the debtor does not perform
the debt, the creditor shall be enpost_titled to have right to keep the
said property to offset the debt or have priority in satisfying his
claim out of proceeds from the auction, sale of the said property
pursuant to the provisions of this Law.

The debtor or third party prescribed in the proceeding paragraph
shall be the mortgagor, the creditor shall be the mortgagee, the
property offered to guarantee shall be the gage.

Article 34 The following properties may be mortgaged:

1. the house and other land fixtures owned by the mortgagor;

2. the machine, transportation means and other property owned by
the mortgagor;

3. the state-owned right to the use of land, house and other land
fixtures which the mortgagor is enpost_titled to dispose of pursuant to the
law;

4. the state-owned machine, transportation means and other
property which the mortgagor is enpost_titled to dispose of pursuant to the
law;

5. the right to the use of land on the unreclaimed land such as
unreclaimed mountains, unreclaimed valleys, unclaimed hills or
unreclaimed beaches which is contracted for management by the
mortgagor in accordance with law and is agreed to mortgage by the
contractee; or

6. other property which may be mortgaged in accordance with the
law.

The mortgagor may mortgage the properties listed in the
proceeding paragraph all together.

Article 35 The obligatory right guaranteed by the mortgagor shall
not exceed the value of the gage.

After the property is mortgaged, the surplus part that the said
property is more than the obligatory right guaranteed, may be
mortgaged once more, but shall not exceed the surplus part.

Article 36 If the house upon the state-owned land obtained
according to the law is to be mortgaged, the right to the use of the
state-owned land within the scope the house occupies shall be
mortgaged at the same time.

If the right to the use of state-owned land obtained by way of
transfer according to the law, when mortgaged the house upon the said
state-owned land shall be mortgaged at the same time.

The right to the use of land of enterprises of a township (town)
or village shall not be mortgaged separately. If the buildings of
enterprises of township (town) or village such as a plant is to be
mortgaged, the right to the use of the land within the scope it
occupies shall be mortgaged at the same time.

Article 37 the following properties shall not be mortgaged:

1. the ownership of land;

2. the ownership of the lands owned by collectives such as
cultivated land, house sites, private plots of cropland and hilly land
shall not be mortgaged, except that prescribed in item 5 of Article
34, paragraph 3 of Article 36 of this Law;

3. the facilities for education, the facilities for public health
and medicine and other facilities for social benefit of the
institutions or social units for purpose of public interest such as
schools, kindergartens or hospitals;

4. the properties whose ownership or right to use is uncertain or
in dispute;

5. the properties sealed up, distrained or regulated; or

6. other properties which shall not be mortgaged pursuant to law.

Section 2 Mortgage Contract and Gage Registration

Article 38 The mortgagor and the mortgagee shall enter into a
mortgage contract in written form.

Article 39 A mortgage contract shall contain the following
contents:

1. the categories and amount of master obligatory right
guaranteed;

2. the time limitation to perform the debt by the debtor;

3. the name, quantity, quality, situation, address, ownership or
right to the use of the gage;

4. the extent guaranteed by the mortgage; and

5. other items the parties consider necessary to agree.

If a mortgage contract has the contents prescribed in the
proceeding paragraph incomplete, it may be supplemented.

Article 40 When entering into a mortgage contract, the mortgagor
and the mortgagee shall not agree that, when the mortgagee is not
satisfied at date of expiration of the time limitation for the debt
performance, the ownership of the gage is to be transferred to the
creditor.

Article 41 Where the parties take the properties prescribed in
Article 42 of this Law to mortgage, he shall go through the gage
registration, the mortgage contract shall be effective as the date of
registration.

Article 42 The departments handling the gage registration are as
follows:

1. in case that the right to the use of land without fixtures upon
the land is to be mortgaged, it shall be the land administration
departments which upon verification issue certificates for the right
to the use of land;

2. in case that the city real estates or the building of the
township (town) or village enterprises such as a plant is to be
mortgaged, it shall be the departments prescribed by the local
people’s governments at and above the county level;

3. in case that the woods are to be mortgaged, it shall be the
forestry administration departments at and above the county level;

4. in case that aircraft, vessels or vehicles are to be mortgaged,
it shall be the registration departments for transportation means; or

5. in case that the equipment or other movables of a enterprise
are to be mortgaged, it shall be the administrations of industry and
commerce where the properties are located.

Article 43 Where the party takes other properties to mortgage,
he may go through the gage registration on a voluntary basis, the
mortgage contract shall be effective as the date of registration.

The party who has not handled the gage registration shall not be
opposed to a third party. If the party goes through the gage
registration, the registration department is to be the notary
department of the area where the mortgagor is located.

Article 44 When the gage registration is to be handled, the
following documents or their copies shall be produced to the
registration department:

1. the master contract and the mortgage contract; and

2. the certificate of ownership of or right to the use of the
gage.

Article 45 The information registered by the registration
department shall be allowed to inquire and read, copy by hand and
copy.

Section 3 Effect of Mortgage

Article 46 Within the guaranteed scope of a mortgage shall
be the master obligatory and its interest, contractual fine, damage
compensation and expense of realization of mortgage. If there is an
agreement otherwise in the mortgage contract, it shall be complied
with.

Article 47 At the date of expiration of the debt performance
period, if the debtor has not performed the debt so that the gage has
been distrained by the people’s court, from the date of distraining
the mortgagee shall be enpost_titled to collect the natural fruits
separated from the gage and the legal fruits that the mortgagee may
collect on the gage. If the mortgagee has not informed the fact of the
distraining of the gage to the obligatory person who shall satisfy the
claim out of proceeds for the legal fruits, the effect of mortgage shall
not extend to the said fruits.

The fruits of the proceeding paragraph shall eliminate in advance
the expense of collecting the fruits.

Article 48 If the mortgagor wants to mortgage a property that
has been leased, he shall notify the leasee in writing, and the
original lease contract continues to be effective.

Article 49 During the period of mortgage, if the mortgagor
assigns the gage registered, he shall inform the mortgagee and also
notify the assignee of the situation that the grant has been
mortgaged; if the mortgagor does not inform the mortgagee or notify
the assignee, the assigning behavior shall be invalid.

If the value amount of the gage assigned is obviously lower than
its value, the mortgagee may demand the mortgagor to offer the
equivalent guarantee; if the mortgagor does not offer, the gage shall
not be assigned.

The value amount from assigning the gage by the mortgagor shall
satisfy in advance the mortgagee for the claim out of the proceeds on
the obligatory right guaranteed or be deposited to the third party he
agreed with the mortgagee. The part exceeding the amount of the
obligatory right, shall be owned by the mortgagor, while the short
part shall be satisfied by the debtor.

Article 50 The mortgage right shall not be separated from the
obligatory right so that it is assigned solely or as a guarantee of
other obligatory rights.

Article 51 If the behavior of the mortgagor causes the value of
the gage to decrease, the mortgagee shall be enpost_titled to have right to
demand the mortgagor to stop his behavior. When the value of the gage
decreases, the mortgagee shall be enpost_titled to have right to demand the
mortgagor to restore the value of the gage, or offer a guarantee
equivalent to the value decreased.

If the mortgagor has no fault for the decrease of the value of the
gage the mortgagee shall demand the mortgagee to be offered only
within the extent of compensation for the damage obtained by the
mortgagor. The part of the gage of which the value does not decrease,
shall still be the guarantee of the obligatory right.

Article 52 The mortgage shall exist simultaneously with the
obligatory right it guarantees, where the obligatory right is extinct,
the mortgage shall be extinct as well.

Section 4 Realization of Mortgage

Article 53 At the date of expiration of the debt performance
period if the mortgagee has not been satisfied with the claim out of
proceeds, he may make an agreement with the mortgagor to keep the said
property to offset the gage or satisfies his claim out of proceeds
from the auction, sale of the said gage; if failing to make an
agreement, the mortgagor may file a case to the People’s Court.

After the gage is set off, auctioned or sold, the part of the
value amount exceeding the amount of the obligatory right shall be
owned by the mortgagor, the short part shall be satisfied by the
debtor.

Article 54 If there are two or more creditors who have a mortgage
on the same property, the value amount obtained from the auction, sale
of the gage shall be satisfied pursuant to the following provisions:

1. where the mortgage contract is effective through registration,
it shall be satisfied in the registration sequence of the gage; if
equal in sequence, then it shall be satisfied according to the
proportion of the obligatory right; or

2. where the mortgage contract is effective as the date of
signing, and the said gage has been registered, it shall be satisfied
according to the item 1 of this Article; if the gage has not
registered, it shall be satisfied in the sequence of the effective
date of the contracts, and if equal in sequence, it shall be satisfied
according to the proportion of the obligatory right. The registered
gage has priority to the unregistered gage.

Article 55 After the signing of the city real estates mortgage
contract, the houses built lately upon the land shall not belong to
the gage. When the said mortgaged real estates is needed to be
auctioned, the lately built houses upon the land may be auctioned
together with the gage, but as for the amount from the auction of the
lately built houses, the mortgagee shall not be enpost_titled to have
priority in satisfying the claim out of proceeds.

Where the right to the use of land of the unreclaimed land
contracted for management according to this Law is to be mortgaged, or
the right to the use of the land within the extent occupied by the
buildings of the township (town) or village enterprises such as a
plant is to be mortgaged, after the realization of mortgage, the
collective ownership and purpose of the land shall not be changed
without the legal procedure is gone through.

Article 56 The value amount obtained from the auction of the
right to the use of the stated-owned land appropriated, after paying
the amount equivalent to the transfer fee of the right to the use of
land which shall be paid, the mortgagee shall be enpost_titled to have
right in priority for the claim out of proceeds.

Article 57 The third party who offers guarantee of a mortgage on
behalf of the debtor, after the realization of the mortgage by the
mortgagee, shall be enpost_titled to have right to claim repayment from the
debtor.

Article 58 The mortgage right extinguishe

CRIMINAL PROCEDURE LAW

Category	LITIGATION	Organ of Promulgation	The National People’s Congress	Status of Effect	In Force
Date of Promulgation	1996-03-17	Effective Date	1997-01-01

Criminal Procedure Law of the People’s Republic of China [1996]

Contents
Chapter I  Aim and Basic Principles
Chapter II  Jurisdiction
Chapter III  Withdrawal
Chapter IV  Defense and Procuration
Chapter V  Evidence
Chapter VI  Compulsory Measures
Chapter VII  Incidental Civil Actions
Chapter VIII  Time Periods and Service
Chapter IX  Other Provisions
Chapter I  Filing a Case
Chapter II  Investigation
Chapter III  Initiation of Public Prosecution
Chapter I  Trial Organizations
Chapter II  Procedure of First Instance
Chapter III  Procedure of Second Instance
Chapter IV  Procedure for Review of Death Sentences
Chapter V  Procedure for Trial Supervision
Supplementary Provisions

(Adopted at the Second Session of the Fifth National People’s Congress on

July 1, 1979, revised in accordance with the Decision on Amendments of the
Criminal Procedure Law of the People’s Republic of China adopted at the
Fourth Session of the Eighth National People’s Congress on March 17, 1996)
Contents

Part One General Provisions

Chapter I Aim and Basic Principles

Chapter II Jurisdiction

Chapter III Withdrawal

Chapter IV Defense and Procuration

Chapter V Evidence

Chapter VI Compulsory Measures

Chapter VII Incidental Civil Actions

Chapter VIII Time Periods and Service

Chapter IX Other Provisions

Part Two Filing a Case, Investigation and Initiation of Public Prosecution

Chapter I Filing a Case

Chapter II Investigation

Section 1 General Provisions

Section 2 Interrogation of the Criminal Suspect

Section 3 Questioning of the Witnesses

Section 4 Inquest and Examination

Section 5 Search

Section 6 Seizure of Material Evidence and Documentary Evidence

Section 7 Expert Evaluation

Section 8 Wanted Orders

Section 9 Conclusion of Investigation

Section 10 Investigation of Cases Directly Accepted by People’s

Procuratorates

Chapter III Initiation of Public Prosecution

Part Three Trial

Chapter I Trial Organizations

Chapter II Procedure of First Instance

Section 1 Cases of Public Prosecution

Section 2 Cases of Private Prosecution

Section 3 Summary Procedure

Chapter III Procedure of Second Instance

Chapter IV Procedure for Review of Death Sentences

Chapter V Procedure for Trial Supervision

Part Four Execution

Supplementary Provisions

Part One General Provisions
Chapter I Aim and Basic Principles

Article 1 This Law is enacted in accordance with the Constitution to
guarantee the correct implementation of the Criminal Law, punish crimes,
protect the people, ensure the national security and social public security
and maintain the social order of the socialist society.

Article 2 The Criminal Procedure Law makes it the objective to ensure
the accurate and timely ascertainment through investigation of the criminal
facts, the proper application of the law and punishments of criminals, to
protect innocent people from undergoing criminal prosecution, to educate
citizens to observe law voluntarily and take an active part in the struggle
against criminal acts, to uphold the socialist legal system, to protect the
personal rights, property rights, democratic rights and other rights of
citizens, and to ensure the smooth progress of socialist construction.

Article 3 The public security organs are responsible for investigation,
detention, execution of arrests and preliminary examination. The people’s
procuratorates are responsible for conducting procuratorial work, approving
arrests, investigating cases directly accepted by the procuratorates and
initiating public prosecutions. The people’s courts are responsible for
adjudication. Any other organs, organizations and individuals have no right
to exercise such power, unless otherwise provided by law.

In conducting criminal proceedings, the people’s courts, the people’s
procuratorates and the public security organs must strictly observe this Law
and any relevant stipulations of other laws.

Article 4 The state security organs shall, according to the stipulations
of the law, handle criminal cases endangering the state security and
exercise the functions and power identical with those of the public security
organs.

Article 5 The people’s courts shall, according to the stipulations of the
law, exercise independently judicial power and the people’s procuratorates
shall, according to the stipulations of the law, exercise independently
procuratorial power, both of which shall be free of any interference by
administrative organs, social organizations and individuals.

Article 6 In conducting criminal proceedings, the people’s courts, the
people’s procuratorates and the public security organs must rely on the
masses, base themselves on facts and take the law as the criterion. The law
applies equally to all citizens and no privilege whatsoever is permissible
before the law.

Article 7 In conducting criminal proceedings, the people’s courts, the
people’s procuratorates and the public security organs shall divide the
responsibilities, coordinate their efforts and check each other to ensure the
correct and effective enforcement of the law.

Article 8 The people’s procuratorates shall, according to law, exercise
legal supervision over criminal lawsuits.

Article 9 Citizens of all nationalities shall have the right to use
their native spoken and written languages in court proceedings. The people’s
courts, the people’s procuratorates and the public security organs shall
provide interpretations or translations for any party to the court proceedings
who is not familiar with the spoken or written language commonly used in the
locality.

Where people of a minority nationality live in a concentrated community
or where a number of nationalities live together in one area, court hearings
shall be conducted in the spoken language commonly used in the locality, and
judgments, notices and other documents shall be issued in the written
language commonly used in the locality.

Article 10 In trying cases, the people’s courts shall apply the system
whereby the second instance is final.

Article 11 Cases in the people’s courts shall be heard in public, unless
otherwise provided by this Law. The accused shall have the right to defense,
and the people’s courts shall have the duty to guarantee his/her defense.

Article 12 No person shall be held guilty in absence of a judgment
rendered by the people’s court according to law.

Article 13 In trying cases, the people’s courts shall apply the system
of people’s assessors taking part in trials in accordance with this Law.

Article 14 The people’s courts, the people’s procuratorates and the
public security organs shall safeguard the procedural rights to which
participants in proceedings are enpost_titled according to law.

In cases where a minor under the age of 18 commits a crime, the legal
representative of the criminal suspect or the accused may be notified to be
present at the time of interrogation and trial.

Participants in proceedings shall have the right to file charges against
judicial, procuratorial and investigatory personnel whose acts infringe on
their citizens’ procedural rights or subject their persons to indignities.

Article 15 Subject to one of the following instances, no criminal
responsibility shall be investigated, and if investigation has been
undertaken, the case shall be dismissed, or prosecution shall not be
initiated, or the hearing shall be terminated, or innocence shall be
declared:

(1) If an act is obviously of minor importance, causing no serious harm,
and is therefore not deemed a crime;

(2) If the limitation period for criminal prosecution has expired;

(3) If an exemption of criminal punishment has been granted in a special
amnesty decree;

(4) If the crime is to be handled only upon complaint according to the
Criminal Law, but there has been no complaint or the complaint has been
withdrawn;

(5) If the criminal suspect or the accused is deceased; or

(6) Other instances for which laws provide an exemption from
investigation of criminal responsibility.

Article 16 Provisions of this Law shall apply to foreigners who commit
crimes for which criminal responsibility should be investigated.

If foreigners with diplomatic privileges and immunities commit crimes for
which criminal responsibility should be investigated, those cases shall be
resolved through diplomatic channels.

Article 17 The judicial organs of the country and their counterparts of
foreign countries may mutually request judicial assistance in criminal cases,
in accordance with the international treaties concluded or acceded to by the
People’s Republic of China, or according to reciprocal principle.
Chapter II Jurisdiction

Article 18 Public security organs shall conduct investigations into
criminal cases unless otherwise stipulated by law.

People’s procuratorates shall file cases and conduct investigations into
crimes regarding corruption, crimes regarding dereliction of duty committed
by public employees of the state, crimes regarding infringement on the
personal rights of, and on the democratic rights of, citizens committed by
staff personnel of state organizations by abusing their authority in respect
of illegal detention, extortion by torture of confession, retaliation and
false charges, and illegal rummage. Other cases involving serious crimes
committed by staff personnel of state organizations by abusing their
authority, may be filed with and investigated by people’s procuratorates,
subject to the decision made by the people’s procuratorate at provincial
level or above, when the people’s procuratorate concerned is required to
directly accept the case.

Cases of private prosecution shall be accepted directly by the people’s
courts.

Article 19 The basic people’s courts shall have jurisdiction as courts
of first instance over ordinary criminal cases; however, those cases which
fall under the jurisdiction of the people’s courts at higher levels as
stipulated by this Law shall be exceptions.

Article 20 The intermediate people’s courts shall have jurisdiction as
courts of first instance over the following criminal cases:

(1) Counter-revolutionary cases and cases endangering the national
security;

(2) Ordinary criminal cases possibly resulting in a judgment of life
imprisonment or death penalty; and

(3) Criminal cases involving crimes committed by foreigners.

Article 21 The higher people’s courts shall have jurisdiction as courts
of first instance over major criminal cases that pertain to an entire
province (or municipality directly under the Central Government, or
autonomous region).

Article 22 The Supreme People’s Court shall have jurisdiction as the
court of first instance over major criminal cases that pertain to the whole
nation.

Article 23 When necessary, people’s courts at higher levels may try
criminal cases over which people’s courts at lower levels have jurisdiction
as courts of first instance. If a people’s court at a lower level considers
the circumstances of a criminal case in the first instance to be major or
complex and to necessitate a trial by a people’s court at a higher level, it
may request that the case be transferred to the people’s court at the next
higher level for trial.

Article 24 A criminal case shall be under the jurisdiction of the
people’s court in the place where the crime was committed. If it is more
appropriate for the case to be tried by the people’s court in the place where
the accused resides, then that court may have jurisdiction over the case.

Article 25 When two or more people’s courts at the same level have
jurisdiction over a case, it shall be tried by the people’s court that first
accepted it. When necessary the case may be transferred for trial to the
people’s court in the principal place where the crime was committed.

Article 26 A people’s court at a higher level may instruct a people’s
court at a lower level to try a case over which jurisdiction is unclear and
may also instruct a people’s court at a lower level to transfer the case to
another people’s court for trial.

Article 27 The jurisdiction over cases in special people’s courts shall
be stipulated separately.
Chapter III Withdrawal

Article 28 In any of the following situations, a member of the judicial,
procuratorial or investigatory personnel shall voluntarily withdraw, and the
parties to the case and their legal representatives shall have the right to
demand his withdrawal:

(1) If he/she is a party or a near relative of a party to the case;

(2) If he/she or a near relative of his/her has an interest in the case;

(3) If he/she has served as a witness, expert witness or defender in the
current case or has represented a party in an incidental civil action; or

(4) If he/she has any other relations with a party to the case that could
affect the impartial handling of the case.

Article 29 Judicial, procuratorial and investigatory personnel shall not
be allowed to accept invitation to entertainment or gifts by the party and
the persons entrusted by him/her, or shall not be allowed to meet, in
violation of stipulations, the party and the persons entrusted by him/her.

Judicial personnel, procuratorial personnel and investigatory personnel
who have violated the provisions in the preceding paragraph, shall according
to law be investigated into the legal responsibility. The party and his/her
legal representative have the right to apply for the withdrawal of the
personnel concerned.

Article 30 The withdrawal of judicial, procuratorial and investigatory
personnel shall be determined respectively by the president of the court, the
chief procurator, and the head of a public security organ; the withdrawal of
the president of the court shall be determined by the court’s judicial
committee; and the withdrawal of the chief procurator or the head of a public
security organ shall be determined by the procuratorial committee of the
people’s procuratorate at the corresponding level.

A member of the investigatory personnel may not suspend investigation of
a case before a decision is made on his/her withdrawal.

In response to the decision on rejection of a party’s application for
withdrawal, the party and his/her legal representative may apply for a final
reconsideration.

Article 31 The provisions of Articles 28, 29 and 30 of this Law shall
also apply to court clerks, interpreters and expert witnesses.
Chapter IV Defense and Procuration

Article 32 In addition to the exercise by himself/herself of the right to
defense, the criminal suspect or the accused may entrust one or two persons
as his/her defenders, and following persons may be entrusted to be defenders:

(1) Lawyers;

(2) Persons recommended by a people’s organization or the unit by which
the criminal suspect or the accused is employed; and

(3) Guardians, relatives and friends of the criminal suspect or the
accused.

The persons undergoing criminal punishments or being deprived of or
restrained from personal liberty according to law shall not act as defenders.

Article 33 The right of a criminal suspect to entrust defenders in
public prosecution accrues on the day when the case is submitted for
examination and prosecution. The accused in a private prosecution has the
right to entrust defenders at any time.

The people’s procuratorate shall, within three days from the day of
receiving the file of the case submitted for examination and prosecution,
inform the criminal suspect of the right to entrust defenders. The people’s
court shall, within three days from the day of accepting the private
prosecution, inform the accused of the right to entrust defenders.

Article 34 In case a public prosecutor appears in court to conduct a
public prosecution while the accused has not entrusted his/her defenders on
account of economic difficulty or for other reasons, the people’s court may
designate a lawyer duty-bound to provide legal assistance to defend him/her.

In case the accused who is blind, deaf or mute or who is a minor, does
not entrust a defender, the people’s court shall designate a lawyer
duty-bound to provide legal assistance to defend him/her.

In case the accused who may possibly be sentenced to death penalty
does not entrust a defender, the people’s court shall designate a lawyer
duty-bound to provide legal assistance to defend him/her.

Article 35 The responsibility of a defender shall be to present,
according to the facts and the law, materials and opinions proving the
innocence of the criminal suspect or the accused, the pettiness of his/her
crime and the need for a mitigated punishment or exemption from criminal
responsibility, thus safeguarding the lawful rights and interests of the
criminal suspect or the accused.

Article 36 The defense lawyer may, from the day of the examination by
the people’s procuratorate of the prosecution case, consult, make extracts
from and reproduce the litigation documents, documents of technical
examination, and may meet and correspond with the criminal suspect in custody.
Other defenders with the permission of the people’s procuratorate may consult,
make extracts from and reproduce the afore-said file documents, and may meet
and correspond with the criminal suspect in custody.

The defense lawyer may, from the day of accepting the case by the people’s
court, consult, make extracts from and reproduce the file documents on
criminal facts accused of, and may meet and correspond with the accused in
custody. Other defenders with the permission of the people’s court may
consult, make extracts from and reproduce the afore-said file documents, and
meet and correspond with the accused in custody.

Article 37 The defense lawyer may, with the consent of the witnesses
or other relevant units and individuals, acquire information related to the
case from them, or may apply to the people’s procuratorate, or the people’s
court for collecting or obtaining by order the evidence, or apply to the
people’s court for notifying witnesses to testify in the court.

The defense lawyer, with the permission of the people’s procuratorate or
people’s court, may with the consent of the victim, his/her near relatives
or the witnesses provided by the victim, acquire information related to the
case from them.

Article 38 The defense lawyer and other defenders shall not assist
the criminal suspects or the accused to conceal, destroy, frame up evidence
or act to collude with each other’s confessions, and shall not threaten,
entice witnesses to make alterations in testimony or give false testimony, and
shall not commit any acts which may cause interference in prosecution
activities conducted by judicial organs.

Legal responsibility shall be investigated into for violating the
provisions of the preceding paragraph.

Article 39 During a trial, the accused may refuse to have his/her
defender continue to defend him/her and may entrust his/her defense to
another defender.

Article 40 The victim and his/her legal representative or near relatives
in public prosecution, the parties and their legal representatives in an
incidental civil action, have the right to entrust agents ad litem from the
day when the case is submitted for examination and prosecution. The
prosecutor and his/her legal representative in private prosecution, the
parties and their legal representatives in an incidental civil action have
the right to entrust agents ad litem at any time.

The people’s procuratorates shall, within three days from the day of
receiving the file of the case submitted for examination and prosecution,
inform the victim and his/her legal representative or near relatives, the
parties and their legal representatives in an incidental civil action of the
right to entrust agents ad litem. The people’s courts shall, within three
days from the day of accepting a private prosecution, inform the prosecutor
and his/her legal representative, the parties and their legal representatives
in an incidental civil action of the right to entrust agents ad litem.

Article 41 Agents ad litem shall be entrusted by reference to the
stipulations of Article 32 of this Law.
Chapter V Evidence

Article 42 All facts that prove the true circumstances of a case shall
be evidence.

There shall be the following six categories of evidences:

(1) material evidence and documentary evidence;

(2) testimony of witnesses;

(3) statements of victims;

(4) statements and exculpation of criminal suspects or the accused;

(5) expert conclusions;

(6) records of inquests and examination; and

(7) video and audio materials.

Any of the above evidence must be verified before it can be used as the
basis for deciding cases.

Article 43 Judicial, procuratorial and investigatory personnel must, in
accordance with the legally prescribed process, collect various kinds of
evidence that can prove the guilt or innocence of the criminal suspect or the
accused and the gravity of his/her crime. It shall be strictly forbidden to
extort confessions by torture and to collect evidence by threat, enticement,
deceit or other unlawful means. Conditions must be guaranteed for all
citizens who are involved in a case or who have information about the
circumstances of a case to objectively and fully furnish evidence and, except
in special circumstances, they may be brought in to help the investigation.

Article 44 The public security organ’s request for approval of arrest,
the people’s procuratorate’s bills of prosecution and the people’s court’s
written judgments must be faithful to the facts. The responsibility of anyone
who intentionally conceals the facts shall be investigated.

Article 45 The people’s courts, the people’s procuratorates and the
public security organs are empowered to collect, obtain by order evidence
from relevant units and individuals. The relevant units and individuals shall
furnish the true evidence.

Evidence involving state secrets shall be kept confidential.

Anyone that falsifies, conceals or destroys evidence, regardless of which
side of a case he/she belongs to, must be investigated under the law.

Article 46 In the decision of all cases, stress shall be laid on
evidence, investigation and study; credence shall not be readily given to
oral statements. The accused cannot be found guilty and sentenced to a
criminal punishment if there is only his/her statement but no evidence; the
accused may be found guilty and sentenced to a criminal punishment if
evidence is sufficient and reliable, even without his/her statement.

Article 47 The testimony of a witness may be used as a basis in deciding
a case only after the witness has been questioned and cross-examined in the
courtroom by both sides, that is, the public prosecutor and victim as well as
the accused and defenders, and after the testimonies of the witnesses on
all sides have been heard and verified. If a court discovers through
investigation that a witness has intentionally given false testimony or
concealed criminal evidence, it shall handle the matter in accordance with
the law.

Article 48 All those who have information about a case shall have the
duty to testify.

Physically or mentally handicapped persons or minors who cannot
distinguish right from wrong or cannot properly express themselves shall not
be qualified as witnesses.

Article 49 The people’s courts, people’s procuratorates and public
security organs shall guarantee the safety of witnesses and their near
relatives.

Criminal responsibility shall be investigated according to law for
menace, humiliation, beating, retaliation done to witnesses and their near
relatives in case of a crime established; and if the seriousness is not
enough for criminal punishments, an administrative penalty for public
security shall be imposed according to law.
Chapter VI Compulsory Measures

Article 50 The people’s courts, the people’s procuratorates and the
public security organs may, according to the circumstances of a case, summon
by warrant the criminal suspect or the accused, or order him/her to be bailed
out for summons or reside under surveillance.

Article 51 The people’s courts, people’s procuratorates and public
security organs may allow a criminal suspect or the accused to be bailed out
for summons or reside under surveillance, who is subjected to one of the
following conditions:

(1) Being possibly sentenced to surveillance, criminal detention or
incidental punishment independently applicable; or

(2) Being possibly sentenced to a punishment not less than fixed-term
imprisonment, but allowing him/her to be out on bail or reside under
surveillance may not possibly cause danger to the society.

Bail out for summons and reside under surveillance

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

THE INTERIM REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA GOVERNING LAND USE TAX ON CITIES AND TOWNS

MEASURES FOR THE ADMINISTRATION OF FOREIGN-CAPITAL FINANCIAL INSTITUTIONS AND CHINESE-FOREIGN EQUITY JOINT FINANCIAL INSTITUTIONS IN THE SHANGHAI MUNICIPALITY

RESOLUTION ON THE NATIONAL DAY

INTERIM MEASURES FOR THE ADMINISTRATION OF THE FOREIGN-INVESTED DEVELOPMENT AND MANAGEMENT OF TRACTS OF LAND

REGULATIONS FOR THE ADMINISTRATION OF PRODUCT QUALITY CERTIFICATION

MEASURES GOVERNING THE PARTICIPATION OF FOREIGN FIRMS IN THE SALVAGE OF SUNKEN SHIPS AND OBJECTS IN THE CHINESE COASTAL WATERS

PROVISIONS ON THE IMPLEMENTATION OF THE INTERNATIONAL COPYRIGHT TREATIES

GUARANTEE LAW

CRIMINAL PROCEDURE LAW

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7