PROVISIONS FOR THE MONITORING AND CONTROL OF AIDS

Category	PUBLIC HEALTH AND MEDICINE	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1988-01-14	Effective Date	1988-01-14

Provisions for the Monitoring and Control of Aids

(Approved by the State Council on December 26, 1987, and promulgated

jointly by the Ministry of Public Health, the Ministry of Foreign Affairs,
the Ministry of Public Security, the State Education Commission, the National
Tourism Administration, the Civil Aviation Administration of China and the
State Bureau of Foreign Expert Affairs on January 14, 1988)

Article 1 These Provisions are formulated in order to prevent AIDS from
entering, occuring and spreading in China so as to safeguard the health of the
Chinese people.

Article 2 The objects subject to the monitoring and cotrol of AIDS as
defined in these provisions are:

(1) victims of AIDS;

(2) carriers of the AIDS virus;

(3) suspects of AIDS and those who have close contact with persons as
defined in Items (1) and (2) of this Article;

(4) blood, hemoproducts, toxicostrain, biological tissue, animals and
other articles that have been contaminated by the AIDS virus or may cause the
spreading of AIDS.

Article 3 The health administrative departments at all levels shall be in
charge of AIDS monitoring and control within their respective jurisdiction.

The public security organs, foreign affairs offices, Customs
establishments, tourist agencies, education departments, aviation, railway and
other transportation units as well as all the enterprises, institutions and
social organizations shall help the health administrative departments in
taking precautionary measures against the spread of AIDS.

Article 4 Upon arrival, any passenger who enters China shall fill in a
health declaration card truthfully, and submit it to the health quarantine
organ for inspection.

Article 5 When applying for entry visa, any foreign national who plans to
settle down in China or stay (or study) in China for one year or longer is
required to furnish the AIDS Serological Examination Certificate issued by a
public hospital or by a private hospital notarized by the notary office in the
country of origin and the said certificate must be authenticated by the
Chinese Embassy or consulate in that country. The certificate shall remain
valid for six months as of the date of issue.

Foreign nationals who fail to undergo AIDS serological examination in
their home countries for lack of necessary conditions, must go to a designated
professional health organ for the examination within 20 days after entry.

Article 6 Those foreign nationals who belong to the categories as defined
in Items (1) and (2) of Article 2 in these Provisions shall be barred from
entering China.

Those who are not allowed to enter China but have already arrived at a
China border port, must leave the border as soon as possible by the same means
of transport or a means of transport of the country where they reside. If
necessary, China civil air, railways or other transportation departments shall
make arrangements for their departure. Before they leave the border, they must
be placed in isolation by the health quarantine organ at the border port.

Article 7 Where any foreign nationals who stay in China are found to be
objects as defined in Items (1) and (2) of article 2 in these Provisions, the
local health administrative department may request the public security organ
to order them to leave China without delay.

Article 8 Chinese citizens who have settled down abroad of have stayed
abroad for over one year (including those Chinese seamen working on foreign
vessels) and who intend to resettle down in China or stay in China for over
one year are required to go to a designated professional health organ for
physical checkup within two months after they return to China.

Article 9 All units and persons are strictly prohibited from importing or
carrying in any articles as defined in Item (4) of Article 2 in these
Provisions. In the case of necessity, an application must be made to the
Ministry of Public Health for examination and approval.

Article 10 The AIDS virus strain shall be kept and used by the units
designated by the Ministry of Public Health. Without permission by the
Ministry of Public Health, no unit or person shall be allowed to exchange,
pass on or use the virus strain within China.

Article 11 Blood and hemoproducts must undergo AIDS antibody virus
monitoring. Carriers of AIDS virus are forbidden to donate their tissue,
organs, blood and seminal fluid.

Article 12 The health administrative departments in all the provinces,
autonomous regions and municipalities directly under the Central Government
shall organize the monitoring of AIDS. The monitoring work shall mainly cover
the following fields:

(1) collecting, processing and analyzing information of AIDS incidence;

(2) carrying out serological examination among the target groups of
people;

(3) making a survey and analysis of epidemiological factors.

Article 13 When conducting AIDS serological examination, any syringe used
must be disposable. Other medical equipment must be thoroughly disinfected so
as to guard against iatrogenic infection.

Article 14 As prescribed by the State, AIDS is an infectious disease that
must be reported.

Article l5 When carrying out their official duties, if the civil
administration organ, the public security organ and the judicial organs find
any persons susceptible to the spread of AIDS, they must be sent right away to
the health department to undergo AIDS examinations.

Article 16 Medical units must keep close watch for AIDS cases among the
visiting patients. If any suspect of AIDS is found, the case must be
diagnosed, treated and reported without delay.

Article 17 Medical workers or health workers of preventive medicine or
medical treatment shall, after making a definite diagnosis of an AIDS case or
deciding on a case of AIDS suspect or a case of AIDS carrier, immediately
report the case to the local health and epidemic prevention organ. The latter
must report the case to the health administrative department at a higher level
within twelve hours.

If any other people find any suspect of AIDS, it is required that they
report the case immediately to the local prevention, medical or health organ.

No unit or person may conceal the case from or delay the report of the
case to the organs concerned.

Article 18 When a health administrative department sends its officers to
make an investigation of AIDS, the units or persons concerned are duty-bound
to provide detailed information about the occurance, spreading, metastasis of
the disease and guarantee that the information is true and complete.

Article 19 The health administrative department must verify the reported
information without delay. The material reported must include a diagnosis
issued by a designated professional health organ.

Article 20 The nationwide information about AIDS incidence shall be
released by the Ministry of Public Health.

Article 21 No unit or person may discriminate against AIDS victims, AIDS
virus carriers or their relatives. No information about the victims such as
their names, addresses, etc. shall be made public.

Article 22 Every unit or person must follow the precautionary measures
taken by the health department for the purpose of preventing and checking the
incidence of AIDS.

Article 23 When a hygiene organ, medical treatment organ or health organ
has found a person who belongs to the category of people defined in Item (1)
of Article 2 of these Provisions, it must place the person in isolation and
send him/her to a hospital designated by the health administrative department
for medical treatment.

Article 24 When a hygiene Organ, medical treatment organ or health organ
has found a person who belongs to the category of people defined in Item (2)
or (3) of Article 2 of these Provisions, some or all of the following measures
must be taken according to the prevention requirements:

(1) detention for physical checkup;

(2) restriction on movement;

(3) medical observation;

(4) regular or irregular medical visits.

Article 25 The dead body of an AIDS victim or an AIDS virus carrier must
be cremated locally.

Article 26 The units or individuals concerned shall, under the
supervision and guidance of the health and prevention organ, exercise
disinfection to the secretion, excretion of AIDS victims or AIDS virus
carriers, and the articles and places, which they have come into contact with
and which might have been contaminated. If necessary, the disinfection shall
be conducted by the health and prevention organ itself.

Article 27 When the hygiene, medical treatment or health organs perform
their duties as stipulated in Articles 23 and 24 of these Provisions, the
public security organs and other units concerned shall offer assistance.

Article 28 Any unit or person that has committed any one of the following
acts in violation of the Provisions shall be punished by the health
administrative department in the form of a fine of no less than RMB 50 and no
more than RMB 3,000 and shall be forced to take precaution, treatment and
disinfection measures:

(1) conceal the case of AIDS and evade examination;

(2) spread AIDS with awareness that there exist AIDS cases or AIDS virus
carriers;

(3) withhold from declaring articles brought in at the time of entry as
defined in Item (4) of Article 2 of these Provisions;

(4) refuse to carry out the precaution and control measures against the
spread of AIDS as defined in Articles 23, 24, 25 and 26 of these Provisions.

Article 29 For any violation of these Provisions that has resulted in the
spread of AIDS or the danger of spreading AIDS, criminal responsibility shall
be investigated by the judicial organs accorrding to law.

Article 30 For the purpose of these Provisions, the definitions of the
following terms are:

(1) “AIDS” means acquired immunity deficiency syndrome.

(2) “AIDS victim” means a person whose reaction to AIDS virus antibody is
positive and clinically a conditioned infection or malignant tumour is
diagnosed.

(3) “AIDS virus carrier” means a person whose reaction to AIDS virus
antibody is positive but with no symptoms of AIDS or without enough symptoms
to be diagnosed as AIDS victim.

(4) “foreign national” means a person who does not have Chinese
nationality as defined in “The Nationality Law of the People’s Republic of
China”.

Article 31 A fee shall be charged, according to relevant regulations, for
the service of taking prevention measures and giving medical treatment or
examination.

Article 32 The right to interpret these Provisions resides in the
Ministry of Public Health.

Article 33 These Provisions shall go into effect as of the date of
promulgation.

INTERIM REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON STAMP TAX

The State Council

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

No. 11

Interim Regulations of the People’s Republic of China on Stamp Tax adopted by the 9th Executive Meeting of the State Council on June
24, 1988 are hereby promulgated and shall come into force as of the day of October 1, 1988.

Premier of the State Council, Li Peng

August 6, 1988

Interim Regulations of the People’s Republic of China on Stamp Tax

Article 1

All units and individuals who execute or receive, within the territory of the People’s Republic of China, documents in the categories
specified in these Regulations shall be taxpayers subject to stamp tax (hereinafter referred to as “taxpayers”), and shall pay stamp
tax in accordance with the provisions of these Regulations.

Article 2

The following categories of documents shall be taxable documents:

(1)

Contracts or documents in the nature of a contract with regard to: purchases and sales, the undertaking of processing, contracting
for construction projects, property leasing, commodity transport, warehousing, loans, property, insurance, technology;

(2)

Documents for transfer of property rights;

(3)

Business account books;

(4)

Certificates evidencing rights or licenses; and

(5)

Other documents that are taxable as determined by the Ministry of Finance.

Article 3

According to the nature of the taxable document, taxpayers shall calculate the amount of tax due on the basis of a flat tax rate or
a fixed amount per document. Determination the specific tax rate or amount of tax shall be made with reference to the Schedule of
Tax Items and Tax Rates accompanying these Regulations.

No stamp tax shall be due where the amount of tax payable does not exceed one jiao.

Where the amount of tax payable is one jiao or more, an odd amount not exceeding five fen shall not be counted; where the odd amount
is five fen or more, the tax shall be calculated as one jiao.

Article 4

The following documents shall be exempt from stamp tax:

(1)

Duplicates or copies of documents on which stamp tax has already been paid;

(2)

Documents executed for the donation of property to the government, social welfare establishments or schools by the property owner;

(3)

Other documents which are exempt from stamp tax with the approval of the Ministry of Finance.

Article 5

Measures for the payment of stamp tax shall be implemented whereby taxpayers shall, in accordance with the provisions, calculate the
amount of tax payable and purchase and affix at one time the full corresponding amount of tax stamps (hereinafter referred to as
“stamping”).

In order to simplify the stamping procedures where the amount of tax to be paid is relatively large or where frequent stamping is
necessary, taxpayers may apply to the tax authorities to use a tax payment account instead of stamping, or a periodic payment method.

Article 6

“Fax stamps shall be affixed to taxable documents; taxpayers shall cancel each stamp along its border with a seal or a drawn line.

Tax stamps that have already been affixed may not be reused.

Article 7

Tax stamps shall be affixed to taxable documents at the time of execution or upon receipt.

Article 8

Where the same document is executed by two or more parties and each party holds a copy; each party shall be responsible for affixing
on its own copy the full amount of tax stamps due.

Article 9

Where a document on which tax stamps have already been affixed is amended, resulting in an increase in the value thereof, additional
tax stamps shall be affixed on the document in accordance with the amount of such increase.

Article 10

The tax authorities shall be responsible for the administration of the collection of stamp tax.

Article 11

The State Administration of Taxation shall supervise the printing of the tax stamps. The face value of tax stamps shall be denominated
in Renminbi.

Article 12

Units issuing or processing taxable documents shall be responsible for the supervision to taxpayers in respect of the payment of stamp
tax in accordance with the law.

Article 13

Where taxpayers are found to have engaged in any of the following, the tax authorities shall impose penalties in light of the seriousness
of the case:

(1)

In the case of a failure to affix tax stamps, or to affix an insufficient amount of tax stamps, on taxable documents, the tax authorities
may, in addition to ordering taxpayers to make up the tax stamps, impose a fine equal to twenty times or less the amount of tax stamps
due;

(2)

In the case of a violation of the provisions of Paragraph 1 of Article 6 of these Regulations, the tax authorities may impose a fine
equal to ten times or less the amount of the tax stamps that have not been cancelled by a seal or a drawn line; and

(3)

In the case of a violation of the provisions of Paragraph 2 of Article 6 of these Regulations, the tax authorities may impose a fine
equal to thirty times or less the amount of the tax stamps that have been reused.

In a case where tax stamps have been forged, the tax authorities shall submit the matter to the judicial authorities for investigation
into criminal liability in accordance with the law.

Article 14

The collection and administration of stamp tax shall, in addition to the provisions of these Regulations, be administered in accordance
with the pertinent provisions of the Interim Regulations of the People’s Republic of China on Administration of Tax Collection.

Article 15

The Ministry of Finance shall be responsible for the interpretation of these Regulations. The rules for the implementation of these
Regulations shall be formulated by the Ministry of Finance.

Article 16

These Regulations shall enter into force as of October 1, 1988.

htm/e02809.htmAttachment

Attachment:

Stamp Tax Schedule of Tax Items and Tax Rates

Tax Item	Scope	Tax Rate	Tax Payer
1. purchases and sales contracts	including contracts for supply, advanced sales,institutional purchases, combined purchase and cooperative manufacturing,assembly compensation trade,barter, and so on.	0.03% of the value of the or sale	parties to the contract
2. processing contracts	including contracts for processing, special orders, repair and renovation,overhaul, printing,advertising,surveying,testing and so on.	stamping as 0.05% of the income from processing or contracting	parties to the contract
3. survey and design contracts for engineering and construction projects	including contracts for survey and design	0.05% of receipts	parties to the contract
4.construction and installation project contracts	including contracts for constraction and installation undertaking	0.03% of the contracted amount	parties to the contract
5. property leasing contracts	including contracts for leasing of buildings, vessels, aircraft, motor vehicles, machinery, appliances and other such equipment	0.1% of the lease amounts less than one yuan to be stamped as one yuan	parties to the contract
6. goods transportation contracts	including contracts for civil aviation, railway transportation, maritime transportation. inland water ways, overland and through transportation	0.05% of the transportation fees	parties to the contract
7. warehousing and safekeeping contracts	including contracts for warehousing and safekeeping	0.01% of the ware housing and safekeeping fee	parties to the contract
8. contracts for loan	including contracts for loan entered by banks and other financial organizations and borrowers except interbank loan agreements	0.005% of the loan amount	parties to the contract
9. property insurance contracts	including insurance contracts for property,bonding,guarantee, surety and credit undertakings and so on	0.003% of the amount insured	parties to the contract
10. technology contracts	including contracts for technology development and transfer, consulting, service, and so on	0.03% of the indicated amount	parties to the contract
11. property transfer documents	including transfer documents for property ownership and copyrights, trademark rights, patents, the right to the use of proprietary technology and so on	0.05% of the amount indicated	parties executing the document(s)
12. business accounting documents	account books used for production and business operations	account books for recording funds:0.05% of the total amount of the original value of fixed assets and selfowned working capital; other account books: 5 yuan for each	business accounting entities
13.certificates and licences	including certificates of post_title for building business licences for buildings, in industry and commerce, certificates for registration of trade-marks, certificates of patents, and land use certificates	5 yuan per document for	receiver(s) of the document(s)

ENVIRONMENTAL PROTECTION LAW

Environmental Protection Law of the People’s Republic of China

(Effective Date 1989.12.26)

CONTENTS

CHAPTER I GENERAL PROVISIONS

CHAPTER II SUPERVISION AND MANAGEMENT OF THE ENVIRONMENT

CHAPTER III PROTECTION AND IMPROVEMENT OF THE ENVIRONMENT

CHAPTER IV PREVENTION AND CONTROL OF ENVIRONMENTAL

POLLUTION AND OTHER PUBLIC HAZARDS

CHAPTER V LEGAL LIABILITY

CHAPTER VI SUPPLEMENTARY PROVISIONS

CHAPTER I GENERAL PROVISIONS

Article 1. This Law is formulated for the purpose of protecting and improving people’s environment and the ecological environment,
preventing and controlling pollution and other public hazards, safeguarding human health and facilitating the development
of socialist modernization.

Article 2. ” Environment ” as used in this Law refers to the total body of all natural elements and artificially transformed natural
elements affecting human existence and development, which includes the atmosphere, water, seas, land, minerals,
forests, grasslands, wildlife, natural and human remains, nature reserves, historic sites and scenic spots, and urban and
rural areas.

Article 3. This Law shall apply to the territory of the People’s Republic of China and other sea areas under the jurisdiction
of the People’s Republic of China.

Article 4. The plans for environmental protection formulated by the state must be incorporated into the national economic
and social development plans; the state shall adopt economic and technological policies and measures
favourable for environmental protection so as to coordinate the work of environmental protection with
economic construction and social development.

Article 5. The state shall encourage the development of education in the science of environmental protection, strengthen
the study and development of the science and technology of environmental protection, raise the scientific
and technological level of environmental protection and popularize scientific knowledge of environmental protection.

Article 6. All units and individuals shall have the obligation to protect the environment and shall have the right to
report on or file charges against units or individuals that cause pollution or damage to the environment.

Article 7. The competent department of environmental protection administration under the State Council shall conduct unified
supervision and management of the environmental protection work throughout the country.

The competent departments of environmental protection administration of the local people’s governments at or above the
county level shall conduct unified supervision and management of the environmental protection work within areas
under their jurisdiction.

The state administrative department of marine affairs, the harbour superintendency administration, the
fisheries administration and fishing harbour superintendency agencies, the environmental protection department
of the armed forces and the administrative departments of public security, transportation, railways and civil
aviation at various levels shall, in accordance with the provisions of relevant laws, conduct supervision and management
of the prevention and control of environmental pollution.

The competent administrative departments of land, minerals, forestry, agriculture and water conservancy of
the people’s governments at or above the county level shall, in accordance with the provisions of relevant laws, conduct
supervision and management of the protection of natural resources.

Article 8. The people’s government shall give awards to units and individuals that have made outstanding achievements in protecting
and improving the environment.

CHAPTER II SUPERVISION AND MANAGEMENT OF THE ENVIRONMENT

Article 9. The competent department of environmental protection administration under the State Council shall establish
the national standards for environment quality.

The people’s governments of provinces, autonomous regions and municipalities directly under the Central
Government may establish their local standards for environment quality for items not specified in the national standards
for environment quality and shall report them to the competent department of environmental protection administration under
the State Council for the record.

Article 10. The competent department of environmental protection administration under the State Council shall, in accordance
with the national standards for environment quality and the country’s economic and technological conditions, establish
the national standards for the discharge of pollutants. The people’s governments of provinces, autonomous
regions and municipalities directly under the Central Government may establish their local standards
for the discharge of pollutants for items not specified in the national standards; with regard to items already specified
in the national standards, they may set local standards which are more stringent than the national standards and report
the same to the competent department of environmental protection administration under the State Council for the record.

Units that discharge pollutants in areas where the local standards for the discharge of pollutants have been established
shall observe such local standards.

Article 11. The competent department of environmental protection administration under the State Council shall establish a monitoring
system, formulate the monitoring norm and, in conjunction with relevant departments, organize a monitoring network
and strengthen the management of environmental monitoring. The competent departments of environmental protection
administration under the State Council and governments of provinces, autonomous regions and municipalities directly
under the Central Government shall regularly issue bulletins on environmental situations.

Article 12. The competent departments of environmental protection administration of the people’s governments at or above the
county level shall, in conjunction with relevant departments, make an investigation and an assessment of the
environmental situation within areas under their jurisdiction, draw up plans for environmental protection which
shall, subject to overall balancing by the department of planning, be submitted to the people’ s government at the
same level for approval before implementation.

Article 13. Units constructing projects that cause pollution to the environment must observe the state provisions concerning environmental
protection for such construction projects.

The environmental impact statement on a construction project must assess the pollution the project is likely to
produce and its impact on the environment and stipulate the preventive and curative measures; the statement
shall, after initial examination by the authorities in charge of the construction project, be submitted by specified
procedure to the competent department of environmental protection administration for approval. The department
of planning shall not ratify the design plan descriptions of the construction project until after
the environmental impact statement on the construction project is approved.

Article 14. The competent departments of environmental protection administration of the people’s governments at or above the county
level or other departments invested by law with power to conduct environmental supervision and management shall be
empowered to make on-site inspections of units under their jurisdiction that discharge pollutants. The units being
inspected shall truthfully report the situation to them and provide them with the necessary information. The inspecting
authorities shall keep confidential the technological know-how and business secrets of the units inspected.

Article 15. Work for the prevention and control of the environmental pollution and damage that involve various administrative
areas shall be conducted by the relevant local people’s governments through negotiation, or by decision of the
people’s government at a higher level through mediation.

CHAPTER III PROTECTION AND IMPROVEMENT OF THE ENVIRONMENT

Article 16. The local people’s governments at various levels shall be responsible for the environment quality of areas under their
jurisdiction and take measures to improve the environment quality.

Article 17. The people’s governments at various levels shall take measures to protect regions representing various types
of natural ecological systems, regions with a natural distribution of rare and endangered wild animals and
plants, regions where major sources of water are conserved, geological structures of major scientific and cultural
value, famous regions where karst caves and fossil deposits are distributed, traces of glaciers, volcanoes and hot
springs, traces of human history, and ancient and precious trees. Damage to the above shall be strictly forbidden.

Article 18. Within the scenic spots or historic sites, nature reserves and other zones that need special protection, as designated
by the State Council, the relevant competent department under the State Council, and the people’s governments of provinces,
autonomous regions and municipalities directly under the Central Government, no industrial production installations
that cause environmental pollution shall be built; other installations to be built in these areas must not exceed
the prescribed standards for the discharge of pollutants. If the installations that have been built discharge more
pollutants than are specified by the prescribed discharge standards, such pollution shall be eliminated or controlled
within a prescribed period of time.

Article 19. Measures must be taken to protect the ecological environment while natural resources are being developed or utilized.

Article 20. The people’s governments at various levels shall provide better protection for the agricultural environment by preventing
and controlling soil pollution, the desertification and alkalization of land, the impoverishment of soil, the deterioration
of land into marshes, earth subsidence, the damage of vegetation, soil erosion, the drying up of sources of
water , the extinction of species and the occurence and development of other ecological imbalances, by extending
the scale of a comprehensive prevention and control of plant diseases and insect pests, and by promoting a rational
application of chemical fertilizers, pesticides and plant growth hormone.

Article 21. The State Council and the people’s governments at various levels in coastal areas shall provide better protection for
the marine environment. The discharge of pollutants and the dumping of wastes into the seas, the construction
of coastal projects, and the exploration and exploitation of offshore oil must be conducted in compliance with
legal provisions so as to guard against the pollution and damage of the marine environment.

Article 22. The targets and tasks for protecting and improving the environment shall be defined in urban planning.

Article 23. In urban and rural construction, vegetation, waters and the natural landscape shall be protected and attention paid to the construction
of gardens, green land and historic sites and scenic spots in the cities in the light of the special features of the local
natural environment.

CHAPTER IV PREVENTION AND CONTROL OF ENVIRONMENTAL POLLUTION AND OTHER PUBLIC HAZARDS

Article 24. Units that cause environmental pollution and other public hazards shall incorporate the work of environmental protection
into their plans and establish a responsibility system for environmental protection, and must adopt effective measures
to prevent and control the pollution and harms caused to the environment by waste gas, waste water, waste residues, dust,
malodorous gases, radioactive substances, noise, vibration and electromagnetic radiation generated in the
course of production, construction or other activities.

Article 25. For the technological transformation of newly-built industrial enterprises and existing industrial enterprises,
facilities and processes that effect a high rate of the utilization of resources and a low rate of the discharge
of pollutants shall be used, along with economical and rational technology for the comprehensive utilization
of waste materials and the treatment of pollutants.

Article 26. Installations for the prevention and control of pollution at a construction project must be designed, built and commissioned
together with the principal part of the project. No permission shall be given for a construction project to
be commissioned or used, until its installations for the prevention and control of pollution are examined and considered
up to the standard by the competent department of environmental protection administration that examined
and approved the environmental impact statement.

Installations for the prevention and control of pollution shall not be dismantled or left idle without authorization.
If it is really necessary to dismantle such installations or leave them idle, prior approval shall be obtained from
the competent department of environmental protection administration in the locality.

Article 27. Enterprises and institutions discharging pollutants must report to and register with the relevant authorities in accordance
with the provisions of the competent department of environmental protection administration under the State Council.

Article 28. Enterprises and institutions discharging pollutants in excess of the prescribed national or local discharge standards
shall pay a fee for excessive discharge according to state provisions and shall assume responsibility for eliminating
and controlling the pollution. The provisions of the Law on Prevention and Control of Water Pollution shall be complied
with where they are applicable.

The income derived from the fee levied for the excessive discharge of pollutants must be used for the
prevention and control of pollution and shall not be appropriated for other purposes. The specific measures thereof shall be
prescribed by the State Council.

Article 29. If an enterprise or institution has caused severe environmental pollution, it shall be required to eliminate and control
the pollution within a certain period of time.

For enterprises and institutions directly under the jurisdiction of the Central Government or the people’s government
of a province, an autonomous region, or a municipality directly under the Central Government, the decision on
a deadline for the elimination or control of pollution shall be made by the people’s government of the province, autonomous
region and the municipality directly under the Central Government. For enterprises and institutions under the jurisdiction
of a people’s government at or below the city or county level, such decision shall be made by the people’s
government of the city or county. Such enterprises and institutions shall accomplish the elimination or control of
pollution within the specified period of time.

Article 30. A ban shall be imposed on the importation of any technology or facility that fails to meet the requirements specified
in the regulations of our country concerning environmental protection.

Article 31. Any unit that, as a result of an accident or any other exigency, has caused or threatens to cause an accident of
pollution, must promptly take measures to prevent and control the pollution hazards, make the situation known to
such units and inhabitants as are likely to be endangered by such hazards, report the case to the competent department
of environmental protection administration of the locality and the departments concerned and accept their investigation and
decision.

Enterprises and institutions that are likely to cause severe pollution accidents shall adopt measures for effective prevention.

Article 32. If the safety of the lives and property of inhabitants is endangered by severe environmental pollution, the competent
department of environmental protection administration of the local people’s government at or above the county level
must promptly report to the local people’s government. The people’s government concerned shall take effective
measures to remove or alleviate the hazard.

Article 33. The production, storage, transportation, sale and use of toxic chemicals and materials containing radioactive substances must
comply with the relevant state provisions so as to prevent environmental pollution.

Article 34. No unit shall be permitted to transfer a production facility that causes severe pollution for use by a unit that
is unable to prevent and control pollution.

CHAPTER V LEGAL LIABILITY

Article 35. Any violator of this Law shall, according to the circumstances of the case, be warned or fined by the competent
department of environmental protection administration or another department invested by law with power to
conduct environmental supervision and management for any of the following acts:

(1) refusing an on-site inspection by the competent department of environmental protection administration
or another department invested by law with power to conduct environmental supervision and management, or resorting
to trickery and fraud while undergoing inspection;

(2) refusing to report or submitting a false report on items for which declaration is required by the competent
department of environmental protection administration under the State Council;

(3) failing to pay, as provided for by the state, the fee for the excessive discharge of pollutants;

(4) importing technology or a facility that fails to meet the requirements specified in the state provisions concerning
environmental protection; or

(5) transferring a production facility that causes severe pollution for use by a unit that is unable to prevent and control
pollution.

Article 36. When a construction project is commissioned or put to use in circumstances where facilities for the prevention and control
of pollution either have not been completed or fail to meet the requirements specified in state provisions, the
competent department of environmental protection administration responsible for the approval of the environmental
impact statement on the construction project shall order the suspension of its operations or use and may concurrently
impose a fine.

Article 37. A unit which dismantles or leaves idle the installations for the prevention and control of pollution without prior
approval by the competent department of environmental protection administration, thereby discharging pollutants
in excess of the prescribed discharge standards, shall be ordered by the competent department of environmental
protection administration to set up the installations or put them to use again, and shall concurrently be fined.

Article 38. An enterprise or institution which violates this Law, thereby causing an environmental pollution accident, shall be
fined by the competent department of environmental protection administration or another department invested by law
with power to conduct environmental supervision and management in accordance with the consequent damage; in a serious
case, the persons responsible shall be subject to administrative sanction by the unit to which they belong or by the competent
department of the government.

Article 39. An enterprise or institution that has failed to eliminate or control pollution by the deadline as required shall, as provided
for by the state, pay a fee for excessive discharge; in addition, a fine may be imposed on it on the basis of the
damage incurred, or the enterprise or institution may be ordered to suspend its operations or close down.

The fine as specified in the preceding paragraph shall be decided by the competent department of environmental
protection administration. An order for the suspension of operations or shut-down of an enterprise or institution
shall be issued by the people’s government that set the deadline for the elimination or control of pollution.
An order for the suspension of operations or shut-down of an enterprise or institution directly under the jurisdiction
of the Central Government shall be submitted to and approved by the State Council.

Article 40. A party refusing to accept the decision on administrative sanction may, within 15 days of receiving the notification
on such a decision, apply for reconsideration to the department next higher to the authorities that imposed the sanction;
if the party refuses to accept the decision of reconsideration, it may, within 15 days of receiving the reconsideration
decision, bring a suit before a people’s court. A party may also bring a suit directly before a people’s court within
15 days of receiving the notification on the sanction. If, upon the expiration of this period, the party has not applied
for reconsideration or has neither brought a suit before a people’s court nor complied with the sanction, the authorities
that imposed the sanction may apply to the people’s court for compulsory enforcement.

Article 41. A unit that has caused an environmental pollution hazard shall have the obligation to eliminate it and make compensation to
the unit or individual that suffered direct losses.

A dispute over the liability to make compensation or the amount of compensation may, at the request of the
parties, be settled by the competent department of environmental protection administration or another department
invested by law with power to conduct environmental supervision and management. If a party refuses to accept the decision
on the settlement, it may bring a suit before a people’s court. The party may also directly bring a suit before the people’s
court.

If environmental pollution losses result solely from irresistable natural disasters which cannot be averted even after
the prompt adoption of reasonable measures, the party concerned shall be exempted from liability.

Article 42. The limitation period for prosecution with respect to compensation for environmental pollution losses shall be
three years, counted from the time when the party becomes aware of or should become aware of the pollution losses.

Article 43. If a violation of this Law causes a serious environmental pollution accident, leading to the grave consequences of
heavy losses of public or private property or human injuries or deaths of persons, the persons directly responsible
for such an accident shall be investigated for criminal responsibility according to law.

Article 44. Whoever, in violation of this Law, causes damage to natural resources like land, forests, grasslands, water, minerals, fish,
wild animals and wild plants shall bear legal liability in accordance with the provisions of relevant laws.

Article 45. Any person conducting supervision and management of environmental protection who abuses his power, neglects his duty
or engages in malpractices for personal gains shall be given administrative sanction by the unit to which he belongs
or the competent higher authorities; if his act constitutes a crime, he shall be investigated for criminal responsibility
according to law.

CHAPTER VI SUPPLEMENTARY PROVISIONS

Article 46. If an international treaty regarding environmental protection concluded or acceded to by the People’s Republic
of China contains provisions differing from those contained in the laws of the People’s Republic of China,
the provisions of the international treaty shall apply, unless the provisions are ones on which the People’s
Republic of China has announced reservations.

Article 47. This Law shall enter into force on the date of promulgation. The Environmental Protection Law of the People’s
Republic of China (for Trial Implementation) shall be abrogated therefrom.

CIRCULAR FOR STRENGTHENING THE CONTROL OF BORROWING INTERNATIONAL COMMERCIAL LOANS

PROVISIONS CONCERNING THE ADMINISTRATION OF ACHIEVEMENTS IN SURVEY AND DRAWING

Category	URBAN AND RURAL CONSTRUCTION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1989-03-21	Effective Date	1989-05-01

Provisions of the People’s Republic of China Concerning the Administration of Achievements in Survey and Drawing

(Promulgated by Decree No. 32 of the State Council of the People’s

Republic of China on March 21, 1989 and effective as of May 1, 1989)

Article 1 These Provisions are formulated with a view to strengthening
the administration of achievements in survey and drawing, ensuring the
rational use of achievements in survey and drawing, and increasing the
economic and social benefits of survey and drawing so as to render a better
service in socialist modernization.

Article 2 The “achievements in survey and drawing”, as mentioned in these
Provisions, refer to the following achievements in basic survey and drawing
and in specialized survey and drawing that are completed on land, at seas and
oceans, and in space:

(1) the data and pictures from astronomical survey, geodetic survey,
geodetic survey completed on artificial satellites, and gravitational survey;

(2) the data, recorded on negatives and magnetic tapes, that are collected
from aerial survey and airborne remote sensing survey;

(3) various kinds of maps (including topographic maps, ordinary maps, land
registry maps, sea charts, and other relevant specialized maps);

(4) the data and pictures from engineering survey;

(5) other relevant geographical data; and

(6) technical data directly related to achievements in survey and drawing.

Article 3 The competent authorities for the administration of survey and
drawing under the State Council shall be in charge of the administration of
and supervision over the achievements in survey and drawing of the whole
country, and shall also be responsible for the organizational work for the
reception, collection, sorting out, storage, and provision for use, on a
nationwide scale, of the achievements in basic survey and drawing and the
relevant achievements in specialized survey and drawing.

The competent authorities for the administrition of survey and drawing
under the people’s governments of various provinces, autonomous region, and
municipalities directly under the Central Government shall be in charge of the
administration of and supervision over the achievements in survey and drawing
within their respective admistrative areas, and shall also be responsible for
organizational work for the reception, collection, sorting out, storage, and
provision for use, within their respective admistrative areas, of the
achievements in basic survey and drawing and the relevant achievements in
specialized survey and drawing.

The departments concerned under the State Council and the departments
concerned under the people’s governments of various provinces, autonomous
regions, and municipalities directly under the Central Government shall be
responsible for the administration of the achievements in specialized survey
and drawing of their respective departments.

The competent authorities for the administration of survey and drawing in
the armed forces shall be responsible for the administration of the
achievements in survey and drawing in military departments.

Article 4 With respect to achievements in survey and drawing, scientific
administration shall be practised, rules and regulations be instituted and
perfected and modern scientific and technical means be employed so as to
provide the achievements for timely, accurate, safe and convenient use.

Article 5 The achievements in survey and drawing shall, in light of their
different natures – those open to the public (i.e. to be openly used, or
openly published), and those kept from the public (i.e. to be used only within
restricted departments, or kept confidential), be administered in accordance
with the relevant requisitions of the State.

Article 6 The security classification, adjustment, and
declassification of achievements in basic survey and drawing shall be
promulgated by the competent authorities for the administration of survey and
drawing under the State Council after the competent authorities for the
administration of survey and drawing under the State Council and the competent
authorities for the administration of survey and drawing in the armed forces
have jointly consulted with the competent authorities for guarding secrets of
both the State and the armed forces.

The security classification, adjustment, and declassification of
achievements in specialized survey and drawing shall be determined by the
department concerned for the administration of achievements in specialized
survey and drawing and they shall also be reported to the competent
authorities for the administration of survey and drawing at the same level for
the record; and their classes of security shall not be lower than those of the
originally used geographical base maps and of other achievements in basic
survey and drawing.

Various departments and units must, in using classified achievements in
survey and drawing, carry out administration in accordance with the relevant
laws and regulations of the State on guarding secrets. In the event that
classified achievements in survey and drawing have to be used openly, they
must go through the process of declassification in accordance with the
relevant regulations of the State.

The destruction of classified achievements in survey and drawing shall be
approved by the person in charge of the competent authorities at or above the
county level of the user unit of the said achievements in survey and drawing.
The classified achievements in survey and drawing to be destroyed shall be
duly registered and recorded, and then destroyed under supervision; and the
destruction shall also be reported, for the record, to the administrative
department that had provided the said achievements.

Article 7 With respect to the achievements in basic survey and drawing
and the relevant achievements in specialized survey and drawing made by the
departments concerned under the State Council and by the local departments
concerned, the departments mentioned above must submit annually, in accordance
with pertinent provisions, to the competent authorities for the administration
of survey and drawing under the State Council or to the competent authorities
for the administration of survey and drawing under the people’s governments
of various provinces, autonomous regions, and municipalities under the Central
Government, a catalogue or its duplicate listing the following achievements:

(1) a catalogue and its duplicate (one copy of each) of the data and
pictures from astronomical survey, geodetic survey, geodetic survey completed
on artificial satellites, and gravitational survey;

(2) a catalogue (one copy) of the data, recorded on negatives and magnetic
tapes, that are collected from aerial survey and airborne remote sensing
survey;

(3) a catalogue (one copy) of topographic maps, ordinary maps, land
registry maps, sea charts, and other important specialized maps;

(4) various kinds of officially printed maps (in duplicate);

(5) a catalogue (one copy) of the data and pictures collected from survey
of important engineering projects.

Article 8 The achievements – made in survey and drawing by foreigners
independently or in cooperation with the departments concerned of the People’s
Republic of China, within the territory of the People’s Republic of China, or
outside the land territory of China, in the sea areas that are under the
jurisdiction of the People’s Republic of China, with the approval of the
goverment of the People’s Republic of China or the approval of a department
authorized by it – shall be administered in accordance with these Provisions.
The propretary rights of the aforesaid achievements are stipulated as follows:

(1) the achievements made in survey and drawing by foreigners
independently or in cooperation with the departments concerned of the People’s
Republic of China within the territory of the People’s Republic of China shall
all belong to the People’s Republic of China;

(2) the achievements made in survey and drawing by foreigners in
cooperation with the departments concerned of the People’s Republic of China,
outside the land territory of China, in the sea areas under the jurisdiction
of the People’s Republic of China shall, on the premise of not violating these
Provisions, be shared between the two parties concerned in accordance with the
stipulations in the relevant contract;

(3) with respect to those achievements made in survey and drawing by
foreigners independently outside the land territory of the People’s Republic
of China, in the sea areas under the jurisdiction of the People’s Republic of
China, the aforesaid foreigners must provide the competent authorities for the
administration of survey and drawing of the People’s Republic of China with a
duplicate or a reproduction of all the achievements made in their survey and
drawing.

Article 9 Where a unit has the necessity to make use of the achievements
in basic survey and drawing made by other provinces, autonomous regions, or
municipalities directly under the Central Goverment, the said unit shall go
through the procedures for the use of the aforesaid achievements in survey and
drawing by presenting an official letter written by the competent authorities
for the administration of achievements in survey and drawing of the province,
autonomous region, or municipality directly under the Central Goverment where
the unit is located, to the competent authorities for the administration of
achievements in survey and drawing of the province, autonomous region, or
municipality directly under the Central Government where the achievements have
been made.

Where a unit has the necessity to make use of the achievements in
specialized survey and drawing of other provinces, autonomous regions, or
municipalities directly under the Central Government, the case shall be
handled in accordance with the procedures stipulated by the department, under
whose administration the aforesaid achievements in specialized survey and
drawing are placed.

Article 10 Where a military department has the necessity to make use of
the achievements in survey and drawing made by government departments, the
case shall be handled in a unified manner by the competent authorities for the
administration of achievements in survey and drawing under the Headquarters of
the General Staff, or by the competent authorities for the administration of
achievements in survey and drawing under military region or the services, in
cooperation with the competent authorities for the administration of
achievements in survey and drawing under the people’s governments of the
various provinces, autonomous regions, and municipalities directly under the
Central Government.

Where a government department or a unit has the necessity to make use of
the achievements in survey and drawing made by military departments, the case
shall be handled by the competent authorities for the administration of
achievements in survey and drawing under the State Council, or by the
competent authorities for the administration of achievements in survey and
drawing under the people’s governments of the various provinces, autonomous
regions, or municipalities directly under the Central Government, in
cooperation with the competent authorities for the administration of
achievements in survey and drawing under the Headquarters of the Central
Staff, or with the competent authorities for the administration of
achievements in survey and drawing under military region or the services.

Article 11 The compent authorities for achievements in survey and drawing
shall be responsible for the quality control and administration of the
achievements in survey and drawing made within the boundaries of their own
administration areas. The achievements in survey and drawing made by the
various departments and units concerned must be subject to the procedures for
checking up and acceptance; and only those which are up to the standard shall
be provided for use.

Article 12 The provisions of achievements in survey and drawing shall be
non-gratutous. The procedures and the rate of fees for the non-gratutous
provision of achievements in survey and drawing shall be stipulated
seperately, after consultation with the administrative department for the
achievements in survey and drawing in question, by the competent authorities
for the administration of achievements in survey and drawing under the State
Council in conjunction with the competent authorities for the administration
of commodity prices.

Article 13 Achievements in survey and drawing shall not be duplicated,
transferred or lent out without permission. Where it is truely necessary to
duplicate, transfer or lend out achievements in survey and drawing, the
approval from the department that is to provide the needed achievements in
survey and drawing must be obtained; where the classified achievements in
survey and drawing are duplicated, they must be subjected to the
administration corresponding to the original security class.

As regards achievements in survey and drawing made through entrustment by
unit, the trustee unit may not duplicate, reprint, transfer, or publish the
said achievements without the permission of the entrusting unit.

Article 14 When a department concerned under the State Council provides
a foreign party with achievements in survey and drawing of the People’s
Republic of China that have not yet become open, the said department must
submit the case, for approval, to the competent authorities for the
administration of achievements in survey and drawing. When a local department
or unit concerned provides a foreign party with achievements in survey and
drawing of the People’s Republic of China that have not yet become open, the
said department or unit must submit the case, for approval, to the competent
authorities for the administration of achievements in survey and drawing under
the people’s government of a province, an autonomous region, or a municipality
directly under the Central Government. In order to safeguard the security and
secrets of important military installations, the specific measures for all
units which submit for examinations any achievements in survey and drawing to
be provided for the use of a foreign party and that have not yet become open
shall comply with the pertinent provisions of the State Council.

Article 15 The important geographical data (including position, altitude,
depth, area, and length) collected in the territory of the People’s Republic
of China and in sea areas under the jurisdiction of the People’s Republic of
China, shall be submitted, for examination and verification, to the competent
authorities for the administration of achievements in survey and drawing under
the State Council, and then to the State Council for approval before they are
published by the State Council or by its authorized agencies.

Article 16 Units and individuals that have made great contributions to,
or achieved remarkable results in, the administration of achievements in
survey and drawing shall be commended or rewarded.

Article 17 If the inferior quality of the achievements in survey and
drawing has resulted in losses on the part of the user, the unit that has
undertaken the said survey and drawing shall compensate for the direct
economic losses mentioned above, and be responsible for conducting
supplementary survey and drawing; if the case is serious, the competent
authorities for the administration of avhievements in survey and drawing
shall impose a fine on the said unit or revoke its corresponding
qualifications for survey and drawing.

article 18 any unit that has committed one of following acts shall be
given administrative sanctions in accordance with the following provisions:

(1) with respect to a unit which, in violation of the state privisions on
the rate of fees for the provision of achievements in survey and drawing, has
raised and collected without authorization the charges for achievements in
survey and drawing, the illegal gains of the said unit shall be confiscated
in accordance with the provisions of the Regulations of the People’s Republic
of China on the Control of Prices, and a fine equal to 3 to 5 times the said
illegal gains may be imposed concurrently;

(2) with respect to a unit which has been held responsible for a major
divulgence of classified achievements in survey and drawing, the competent
authorities for the administration of achievements in survey and drawing shall
issue a circular criticizing the said unit, and the responsibilities of the
person-in-charge of the said unit shall be investigated in accordance with the
provisions of Article 19 of these Provisions;

(3) with respect to a unit which has duplicated, transferred, or lent out
achievements in survey and drawing without the approval from the department
that provides the said achievements, the competent authorities for the
administration of achievements in survey and drawing shall issue a circular
criticizing the said unit, and a fine may also be imposed concurrently.

Article 19 An individual who has committed any of the following acts
shall be given administrative sanction by the unit where he/she work, or by
its higher competent authorities; if the act has constituted a crime, the
criminal responsibilities of the offender shall be investigated by judicial
organs according to law:

(1) an individual who has lost classified achievements in survey and
drawing, or who is held responsible for the divulgence of secret achievements
in survey and drawing;

(2) an individual who, in violation of the stipulation in Article 14 of
these Provisions regarding the procedures for examination and approval, has
provided without permission a foreign party with achievements in survey and
drawing that have not yet become open;

(3) the administrative personel who have failed to carry out their duties
in safeguarding achievements in survey and drawing and caused great losses or
damage to the achievements in survey and drawing; or they have provided,
without permission, those achievements that have not yet become open;

(4) an individual who has lost achievements in survey and drawing or
divulged secrets in this regard and caused serious consequences, and the
person-in-charge of the unit who fails to investigate and deal with such
incidents.

Article 20 If a party concerned refuses to accept the decision on
administrative sanction, he/she may, within 15 days from the next day of the
receipt of the notification on the administrarive sanction, apply for
reconsideration to the competent administrative department at a higher level
than the department that has made the said administrative sanction; if the
said party does not accept the decision made after the reconsideration,
he/she may, within 15 days from the next day of the receipt of the
reconsideration decision, bring a suit before a people’s court; the party
concerned may also directly bring a suit before a people’s court within 15
days beginning from the second day of the receipt of the sanction decision;
if the party concerned neither brings a suit before the court, nor carries
out the sanction decision, the competent administrative department that made
the sanction decision shall apply to the people’s court for compulsory
enforcement.

Article 21 The people’s governments of the provinces, autonomous regions,
and municipalities directly under the Central Government, the departments
concerned under the State Council, and the armed forces may formulate rules
for the implementation of these Provisions in accordance with these Provisions
and in the light of their respective conditions.

Article 22 The rights to interpret these Provisions shall reside in the
competent authorities for the administration of survey and drawing under the
State Council.

Article 23 These Provisions shall go into effect on May 1, 1989.

PROVISIONS OF THE HAINAN SPECIAL ECONOMIC ZONE FOR LAND LEASING AND TRANSFERENCE OF LEASEHOLD

Provisions of the Hainan Special Economic Zone for Land Leasing and Transference of Leasehold

(Effective Date:1990.03.26–Ineffective Date:)

CONTENTS

CHAPTER I GENERAL PRINCIPLES

CHAPTER II LEASING OF USE-RIGHTS TO STATE-OWNED LAND

CHAPTER III TRANSFERENCE OF LEASEHOLD ON STATE-OWNED LAND

CHAPTER IV SUBLEASING OF LEASEHOLD ON STATE-OWNED LAND

CHAPTER V MORTGAGING OF STATE-OWNED LAND USE-RIGHTS

CHAPTER VI TRANSFERENCE, RENTING OUT AND MORTGAGING OF USE-RIGHTS TO ADMINISTRATIVE – HELD LAND

CHAPTER VII LEASING AND TRANSFERENCE OF RIGHT TO USE COLLECTIVE-OWNED LAND

CHAPTER VIII LEGAL LIABILITIES

CHAPTER IX SUPPLEMENTARY PULES

CHAPTER I GENERAL PRINCIPLES

Article 1. In consideration of the needs of the Hainan Special Economic Zone (SEZ) for development and construction and for the rational development,
use, management and protection of land, the provincial People’s Government adopts the Provisions of the Hainan Special Economic Zone
for Land Leasing and Transference of leasehold (referred to as Provisions hereinafter) in accordance with the Law of Land Administration
of the People’s Republic of China and other related laws and regulations and with reference to the actual conditions of the SEZ.

Article 2. Land referred to in the Provisions comprises the developed and undeveloped arable land, forest land, grassland, surface waters, shallows,
barren mountains, wasteland and land sites for construction.

Article 3. On the principle of separation of land use-rights from land ownership, the SEZ practices a tenured land lease system which allows
transference of leaseholds. Public installations and underground resources, treasure troves and hidden wealth are not included in
the sphere of land leasing and leasehold transference as referred to in the provisions.

Land under lease or be further transferred still belong to the ownership of the state of the People’s Republic of China or the collectives
of laboring masses.

Article 4. Businessmen from outside the People’s Republic of China and enterprises, institutions, government organs, social bodies and other
establishments and individuals at home can acquire land use-rights in accordance with the Provisions and by performing the procedures
required for land leasing and transference of leasehold.

The land lessee may, in accordance with the Provisions, transfer, sublease or mortgage the landuse-rights to others, or use the right
as contributing factors in establishing joint equity or cooperative ventures with other units or individuals.

Activities of land development, use

DECISION CONCERNING THE AMENDMENT TO THE LAW ON SINO-FOREIGN EQUITY JOINT VENTURES

RAILWAY LAW OF THE PEOPLE’S REPUBLIC OF CHINA

The Standing Committee of the National People’s Congress

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

No.32

The Railway Law of the People’s Republic of China which has been adopted at the 15th Meeting of the Standing Committee of the Seventh
National People’s Congress on September 7, 1990 is now promulgated and shall enter into force as of May 1, 1991.

President of the People’s Republic of China Yang Shangkun

September 7, 1990

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

Chapter II Railway Transport Business

Chapter III Railway Construction

Chapter IV Safety and Protection of Railway

Chapter V Legal Responsibility

Chapter VI Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is formulated for the purpose of ensuring smooth progress of railway transport and railway construction in order to meet
the demands of socialist modernization and people’s livelihood.

Article 2

Railways as referred to in this Law include State railways, local railways, industrial railways and railway private sidings.

State railways refer to the railways administered by the competent department in charge of railways under the State Council.

Local railways refer to the railways administered by local people’s governments.

Industrial railways refer to the railways administered by enterprises or other units to provide in-house transport services.

Railway private sidings refer to the branch railway lines which are administered by enterprises or other units and are connected to
a State railway line or any other railway line.

Article 3

The competent department in charge of railways under the State Council shall be responsible for railway affairs throughout the country,
implement over the State railway network a transport control system which is highly centralized and under unified command, and shall
provide guidance for, coordination among, supervision over and assistance to local railways, industrial railways and railway private
sidings.

A State railway transport enterprise shall perform the administrative functions as authorized by relevant laws and administrative
rules and regulations.

Article 4

The State shall focus its effort on the development of State railways and provide substantial aid and support to the development of
local railways.

Article 5

A railway transport enterprise must adhere to the socialist orientation in operation and management, pursue the aim of serving the
people, improve operation and management, better the work style, and enhance the transport service quality.

Article 6

Citizens shall have the obligation to take good care of railway installations. Damage to railway installations and disruption of normal
railway traffic shall be prohibited.

Article 7

Local people’s governments at various levels along the railway lines shall assist the railway transport enterprises in ensuring safe
and uninterrupted railway traffic, good social order at stations and on trains, intactness of railway installations, and smooth progress
of railway construction.

Article 8

Regulations governing the technical operations of State railways shall be formulated by the competent department in charge of railways
under the State Council, while rules governing the local railways and industrial railways shall be drawn up with reference to the
regulations governing the technical operations of State railways.

Article 9

The State shall encourage scientific and technological research on railways in order to heighten their scientific and technical level.
Any unit or individual that has achieved outstanding results in such research shall be awarded.

Chapter II Railway Transport Business

Article 10

All railway transport enterprises shall guarantee safe transport of passengers and goods and punctual train arrivals.

Article 11

A railway transport contract shall be an agreement in which the mutual rights and obligations between the railway transport enterprise
and the passenger(s) or shipper(s) are defined.

A passenger ticket, a luggage, parcel or goods consignment note shall represent a contract or a constituent part of a contract.

Article 12

A railway transport enterprise shall ensure the passenger of riding on a train of the number and on the date stated on the passenger’s
ticket, and of arriving at the destination stated on the same ticket. In case of the passenger being unable to ride on the train
of the number and on the date stated on the passenger’s ticket owing to the liability of the railway transport enterprise, the said
enterprise shall, as requested by the passenger, refund the total sum of the ticket fare or make arrangements for the passenger to
ride on another train to the same destination.

Article 13

A railway transport enterprise shall take effective measures to serve the passengers well in a courteous, attentive, warm and cultured
manner, keep the station premises and passenger cars clean and sanitary, provide boiled drinking water and good catering services
on the train.

A railway transport enterprise shall take measures to protect the environment along railway lines from pollution.

Article 14

Any passenger boarding a train shall hold a valid passenger ticket. Any passenger riding on a train without a ticket or with an invalid
ticket shall pay the ticket fare on the train plus such additional charges as specified in relevant railway regulations; the railway
transport enterprise may order any passenger who refuses to do so to leave the train.

Article 15

The State railways and local railways shall plan the goods transport on the principle of promoting production and invigorating circulation.

Priority in transport shall be given to materials for emergency rescue or disaster relief and other goods and materials that warrant
such priority according to relevant regulations of the State.

Where goods and materials to be carried by local railways need to be carried by State railways, the transport plan therefore shall
be incorporated in the transport plan of State railways.

Article 16

A railway transport enterprise shall carry the goods, parcels and luggage to their destinations in observance of the time limit stipulated
in the contract or within the time limit prescribed by the competent department in charge of railways under the State Council. For
any overdue goods, parcel, or luggage, the railway transport enterprise shall be liable to indemnity for breach of contract.

In case a railway transport enterprise fails to deliver the goods, parcels or luggage to their consignee or owner passenger after
thirty days in excess of the time limit, the shipper, consignee or passenger concerned shall be enpost_titled to claim compensation for
loss from the railway transport enterprise.

Article 17

A railway transport enterprise shall be liable to pay compensation for loss, short-delivery, deterioration, contamination, or damage
that might have occurred to the shipped goods, parcels or luggage as of the moment the railway transport enterprise undertakes the
conveyance until the moment of their delivery.

(1)

Any shipper or passenger who has voluntarily applied for insured transport of valued articles shall be enpost_titled to an indemnity on
a par with the actual loss but not exceeding the insured value.

(2)

Indemnity for goods conveyed not in the manner of insured transport of valued articles shall be on a par with the actual loss but
not exceeding the liability limit laid down by the competent department in charge of railways under the State Council. If the loss
is caused by deliberate action or grave fault on the part of the railway transport enterprise, the above-stated liability limit shall
not apply but the indemnity shall be made in conformity with the actual loss.

Any shipper or passenger may, on voluntary basis, buy insurance policy for transport of goods at an insurance agency and the insurance
agency shall be liable for indemnity in conformity with the agreement as stated in the insurance contract.

Any shipper or passenger may, on voluntary basis, enter into insured transport of valued goods or buy insurance policy for transport
of goods, or may do without. No shipper or passenger shall be compelled in any manner to enter into insured transport or buy transport
insurance policy.

Article 18

A railway transport enterprise shall not be liable to indemnity for any loss, in relation to goods, parcels or luggage, caused by
the following reasons:

(1)

Force majeure.

(2)

Natural property of the goods or articles contained in the parcel or luggage, or natural wear and tear.

(3)

Fault on the part of the shipper, consignee or passenger concerned.

Article 19

Any shipper shall truthfully fill in the goods consignment note, and the railway transport enterprise shall be authorized to check
the description, weight and quantity of the goods and parcels as written on the note. Upon check-up, if the reported disagrees with
the real contents, the shipper shall pay for the check-up expenses; if the reported agrees with the real contents, the check-up expenses
shall be borne by the railway transport enterprise, and any damage incurred from the check-up with the contents of the goods or parcels
as a result of the check shall be compensated for by the same enterprise.

Any deficiency in payment of transport charges and other fees as a result of untrue declaration of the goods shipped shall be made
up by the shipper concerned, and the railway transport enterprise shall, according to the relevant regulations of the competent department
in charge of railways under the State Council, collect from the shipper extra transport charges and other fees.

Article 20

Goods consigned for shipment that need packing shall be packed by the shipper in conformity with the national standards for packing
or the trade standards for packing; where both these standards are lacking, the shipper shall pack the goods properly so that the
goods would not suffer any damage due to improper packing.

A railway transport enterprise shall, with regard to the perishable goods and living animals the shipment of which it has undertaken,
in accordance with the relevant regulations of the competent department in charge of railways under the State Council and the contracted
agreement.

Article 21

Upon the arrival of shipped goods, parcels or luggage, the relevant consignee or passenger shall claim them in time in observance
of the time limit set by the competent department in charge of railways under the State Council and at the same time pay any transport
charges and other fees that the shipper has not paid or underpaid; if such time limit is exceeded, the consignee or passenger shall
pay due charges for storage in accordance with relevant regulation.

Article 22

Any shipped goods that are not claimed for thirty days as of the date of issuing the notice of claim for the shipped goods, or that
the consignee has informed the railway transport enterprise in writing of refusing to accept shall be sold off by the railway transport
enterprise on condition that the enterprise has served the shipper a notice about such and received no acknowledgement for thirty
days as of the date of receipt of the notice. The amount of money obtained from the selling, if there is any left after deduction
of storage charges and other deductible fees, shall be refunded to the shipper, or turned over to the state treasury provided it
is not refundable nor claimed by the shipper within one hundred and eighty days as of the date of disposal.

Any parcel not claimed for ninety days as of the date of issuing the notice of claim for such goods by the railway transport enterprise
concerned and any luggage not claimed for ninety days as of its arrival at destination may be disposed of by the said enterprise
provided that the latter has issued a public announcement thereupon and received no claim for the said parcel or luggage ninety days
after the issuance. The amount of money obtained from the selling, if there is any left after deduction of storage charges and other
deductible fees, may be recovered by the shipper, consignee or passenger concerned within one hundred and eighty days as of the date
of the selling, or shall be turned over to the state treasury if no claim for recovery is received within the same time limit.

Dangerous goods and articles the transport of which is restricted according to relevant regulations shall be handed over to the public
security authority or department concerned for disposition and shall not be sold off by the railway transport enterprise itself.

For articles which are not suitable for storage over a long period of time, the deadline for their disposal may be shortened in accordance
with relevant provisions set down by the competent department in charge of railways under the State Council.

Article 23

Passengers, shippers or consignees who are held responsible for any loss of property of a railway transport enterprise shall be liable
to compensation for the loss.

Article 24

The State shall encourage industrial railways to take up also public passenger and goods transport services on a commercial basis;
the State shall promote shared use of railway private sidings by related units on the basis of agreed terms.

Any industrial railway which will take up also public passenger or goods (or both) transport services on commercial basis shall report
such to and obtain approval from the people’s government of the relevant province, autonomous region or municipality directly under
the Central Government.

To any industrial railway undertaking commercial public passenger or goods transport, the provisions governing railway transport enterprises
stipulated in this Law shall apply.

Article 25

Passenger fares and tariffs for goods, parcels and luggage shall be worked out by the competent department in charge of railways under
the State Council and submitted by the latter to the State Council for approval. The items and rates of miscellaneous charges for
passenger and goods transport on State railways shall be laid down by the competent department in charge of railways under the State
Council. Tariffs applicable to specified operating lines, specified goods and provisional operating lines of the State railways shall
be worked out by the competent department in charge of railways under the State Council by agreement with the competent department
in charge of prices under the State Council.

Passenger fares, goods tariffs and the items and rates of miscellaneous charges for passenger and goods transport on local railways
shall be laid down by the competent department in charge of prices under the people’s government of the relevant province, autonomous
region or municipality directly under the Central Government in conjunction with the agency authorized by the competent department
in charge of railways under the State Council.

Passenger fares, goods tariffs and the items and rates of miscellaneous charges for passenger and goods transport on industrial railways
which also run public passenger and goods transport on a commercial basis, and the rates of charges for sharing the use of railway
private sidings, shall be laid down by the competent department in charge of prices under the people’s government of the relevant
province, autonomous region or municipality directly under the Central Government.

Article 26

Passenger fares, tariffs for goods, parcels and luggage, and the items and rates of miscellaneous charges for passenger and goods
transport, must be announced by public notice; the same shall not go into effect before being so announced.

Article 27

Counterfeiting or alterations of tickets or other certificates which are printed and used in relation to passenger and goods transport
by State railways, local railways and industrial railways shall be prohibited.

Reselling of passenger tickets or other railway transport certificates for profit shall be prohibited.

Article 28

Relevant regulations of the State concerning articles the transport of which is prohibited or restricted must be observed in consigning
shipment and carrying goods, parcels or luggage.

Article 29

Domestic through transport of passenger and goods between railway transport enterprises and highway, air or waterway transport enterprises
must be handled in accordance with relevant provisions laid down by the State, or in the absence of such provisions, in accordance
with the agreement reached by all parties concerned.

Article 30

Participation of State or local railways in international through transport must obtain approval from the State Council.

Article 31

Military transport on railways shall be handled in accordance with relevant provisions laid down by the State.

Article 32

In the event of dispute over a railway transport contract, the railway transport enterprise and the involved shipper, consignee or
passenger may settle the dispute by way of mediation; or if a party does not wish to settle the dispute by mediation or the mediation
proves unsuccessful, the railway transport enterprise and the involved shipper, consignee or passenger may, in accordance with relevant
provisions on arbitration included in the contract or with the written agreement on arbitration reached afterwards, apply for arbitration
to an arbitration agency designated by the State.

Where a party does not perform the award of the arbitration agency within the prescribed time limit, the other party may apply to
a people’s court for compulsory execution.

Where no provision on arbitration is made in the contract and no written agreement on arbitration has been reached afterwards, either
of the parties may bring a suit in a people’s court.

Chapter III Railway Construction

Article 33

Planning for the expansion of railway network shall be based on the demands of national economy, social development and the building
up of national defence and shall be coordinated with the development plans of other modes of transport.

Article 34

The construction plan of local railways, industrial railways or railway private sidings must conform to the national railway development
plan and must obtain approval from the competent department in charge of railways under the State Council or an agency authorized
by this department.

Article 35

The planning of any railway track, station, junction area an other related facilities within a planned urban area of a city shall
be brought in line with the overall plan of this city.

The land-use plan for railway construction shall be incorporated in the relevant overall land-use plan. Land needed for future expansion
or construction of new railway lines shall be allotted by the people’s government at or above the county level in its overall land-use
plan.

Article 36

The use of land for railway construction shall be handled in accordance with provisions of relevant laws and administrative rules
and regulations.

The relevant local people’s government shall support railway construction and assist the railway transport enterprise to carry out
land requisition for railway construction, to dismantle or move any structures or inhabitants thereon and make due arrangements for
them.

Article 37

Any railway transport enterprise shall, having acquired the right to use any land for railway construction, use the land for the approved
purpose and shall not use the land for any other purposes without proper authorization; no other unit or individual may occupy or
seize the said land.

The department of land administration under the local people’s government at or above the county level shall order any unit or individual
that has occupied or seized the land appropriated for railway construction to stop doing so and to compensate the railway transport
enterprise concerned for the loss.

Article 38

The standard railway gauge shall be 1435mm. Standard gauge must be adopted in the construction of a new State railway.

For narrow-gauge railways, the gauge shall be 762mm or 1000mm.

Other technical requirements for new railways and reconstructed railways shall conform to relevant national standards or trade standards.

Article 39

A railway line, after its completion of construction, may, in accordance with the procedures laid down by the State for capital construction,
be put into operation only after it has been duly examined and accepted as satisfactory.

Article 40

At the crossing point of a railway and a highway, priority shall be given to the installation of a grade separation structure; at
a crossing where a grade separation structure is not installed, a level crossing or a pedestrian cross-walk may be laid in conformity
with relevant provisions of the State. The setting up of a level crossing or a pedestrian cross-walk within a planned urban area
shall be decided by the railway transport enterprise, or the relevant enterprise owning the relating industrial railways or private
sidings, or any other relevant unit jointly with the department in charge of city planning.

The removal of an established level crossing or pedestrian cross-walk shall be decided by the railway transport enterprise, or the
relevant enterprise owning the relating industrial railway or private siding, or any other relevant unit by agreement with the local
people’s government.

Article 41

Any railway bridge to be built across a water course shall conform to the requirements for flood prevention, navigation and flow of
current as laid down by the State in relevant regulations.

Chapter IV Safety and Protection of Railways

Article 42

A railway transport enterprise must strengthen the control and protection of railways, regularly inspect and repair railway transport
facilities so as to ensure intactness of these facilities and guarantee safe conveyance of passengers and goods.

Article 43

The railway security organ and the local security authority shall jointly keep the public order along railway lines, in stations and
on trains, while dividing up the work in such a way that the public order in stations as well as on trains shall be under the charge
of the railway security organ, and the public order along railway lines shall be under the joint charge of the local security authority
and the railway security organ, with the local security authority in the main.

Article 44

The competent department in charge of electric power shall guarantee the power supply for railway traction and critical loads arising
in railway operation. The scope of power supply for critical loads arising in railway operation shall be defined by the competent
department in charge of railways under the State Council through consultation with the competent department in charge of electric
power under the State Council.

Article 45

Hill slopes beyond the right-of-way of and flanking the railway line shall be conditioned as key territories for water and soil conservation
by the relevant local people’s government. Slopes on top of railway tunnels shall be conditioned by the local people’s government
with due assistance of the relevant railway transport enterprise. Hill slopes within the railway line’s right-of-way shall be conditioned
by the railway transport enterprise.

Article 46

In case there is any such activity as building an uphill pond, a reservoir, or a dyke or dam; excavating a water course, a trunk channel
or other waterway; stone-quarrying; sand-fetching; or digging a well for water, which is carried out within a specific distance from
both sides of a railway line, bridge or culvert, and which might cause adverse effects on the stability of the railway subgrade or
endanger the railway bridge or culvert, the relevant local people’s government at or above the county level shall order such activities
to be ceased, and set a time limit for restoring the site to its original state or to take necessary safety and protection measures.

Unless the approval of the relevant railway transport enterprise is obtained and proper safety and protection measures are provided,
the erecting of power or communications lines over or across a railway line, the laying of buried cables or pipes along a railway
subgrade, and the digging of tunnels through or under a railway embarkment shall not be allowed.

Building of any structures or planting of any trees which might hinder a good watch from the driver’s cabin over the railway line
shall not be allowed at the inner side of a curve or at a place close to a level crossing or a pedestrian cross-walk. In case any
building, such as afore-mentioned, has been erected, the local people’s government at or above the county level shall order the builder
to remove the building, and if any tree, such as afore-mentioned, has been planted, the said government shall order the relevant
unit or individual to remove, trim or cut down the tree within a specified period of time.

Any unit or individual that violates the provisions stated in the preceding three paragraphs shall be liable to compensation for any
loss thereby suffered by the relevant railway transport enterprise.

Article 47

It shall be prohibited to install a level crossing or a pedestrian cross-walk without proper authorization.

Necessary signs and protective installations must be provided at level crossings or pedestrian cross-walks in conformity with relevant
regulations.

Pedestrians and vehicles must, when passing a railway level crossing or a pedestrian cross-walk, observe the relevant regulations
governing passage over crossings.

Article 48

Transport of dangerous goods must be handled in conformity with the regulations formulated by the competent department in charge of
railways under the State Council. It shall be forbidden to consign for shipment any dangerous article under the name of a non-dangerous
article.

Passengers shall be prohibited from carrying any dangerous article into a railway station or a train. Railway security personnel or
any such railway worker designated by the competent department in charge of railways under the State Council shall, for the safety
of transher have the right to inspect the article or articles carried by any passenger. Any railway worker when carrying out transport
safety inspection shall bear an on-duty identification sign.

A list of the descriptions of dangerous articles shall be specified and promulgated by the competent department in charge of railways
under the State Council.

Article 49

Any railway worker shall have the right to stop any person who is about to damage or destroy, or cause to move or shift, any railway
signalling installation or other facilities for traffic operation, and any person who is about to place obstacle(s) on the railway
track. The railway worker may catch such a person and hand him over to the public security authorities.

Article 50

It shall be forbidden for anybody to make a covert ride on a goods train, to climb up or hang on to a train in motion, or to hit or
strike a train. Any railway worker shall have the right to stop such a person.

Article 51

It shall be forbidden to walk, sit or lie on a railway track. Any railway worker shall have the right to stop such conduct.

Article 52

It shall be forbidden to graze livestock within twenty metres of either side of a railway track. Any railway worker shall have the
right to stop such conduct.

Article 53

Any railway worker shall have the right to stop persons who have gathered up to intercept a train, or to assault a railway traffic
control office. The responsible public security personnel on site shall have the right to order those persons who refuse to stop
such action to disperse; and if such a demand is refused, the responsible public security personnel on site shall, according to relevant
regulations established by the State, choose to force them to disperse by necessary means. Those who refuse to obey shall be taken
away from the site by force or detained.

Article 54

Any railway worker shall have the right to stop those persons who try to start a riot and rob goods and materials being transported
on railways and may seize them and hand them over to the public security authorities; the public security personnel on site may detain
them.

Article 55

Any railway worker shall have the right to stop any person who is picking quarrels and stirring up troubles on board a train causing
public disorder or jeopardizing the physical being or property of other passengers; the railway security personnel may detain such
person.

Article 56

If a certain kind of infectious disease which demands quarantine as stated in legal provisions is discovered in a railway station
or on board a passenger train, the railway sanitation and quarantine authority shall carry out the necessary quarantine process;
the local sanitation and quarantine authority shall render assistance to the former upon request.

The quarantine of goods in transport shall be carried out in accordance with relevant regulations of the State.

Article 57

In case of any railway traffic accident, the railway transport enterprise shall act in accordance with relevant provisions about the
investigation and handling of accidents stipulated by the State Council and its relevant competent department, and ensure the timely
restoration of normal traffic; no unit or individual shall hinder the re-opening of the railway track and train operation.

Article 58

A railway transport enterprise shall be liable to compensation for any personal injury or fatality due to traffic accident or other
operational accident. It shall hold no liability for compensation for any personal injury or fatality due to force majeure or due
to the fault of the aggrieved person oneself.

Personal injury or fatality resulting from passing the railway track at a level crossing or via a pedestrian cross-walk in violation
of relevant regulations or from walking, sitting or lying on the railway track shall be deemed injury or fatality caused by the fault
of the aggrieved person one-self.

Article 59

Major bridges and tunnels of State railways shall be guarded by the Chinese People’s Armed Police Forces.

Chapter V Legal Responsibility

Article 60

Any person who, in violation of relevant provisions of this Law, has carried any dangerous article into a railway station or on board
a train or has consigned for shipment any dangerous article under a name of a non-dangerous article thus causing a grave accident,
shall be investigated for criminal responsibility in accordance with Article 115 of the Criminal Law. Any enterprise, institution,
State organ, or public organization which commits the crime as specified in this Article shall be imposed a fine, and the person
in charge of any of the aforesaid unit and the person or persons immediately responsible for the offence shall be investigated for
criminal responsibility.

Any person who carries dynamite or detonator or who illegally carries firearms, bullets or controlled knives into a railway station
or on board a train shall be investigated for criminal responsibility with reference to Article 163 of the Criminal Law.

Article 61

Any person who intentionally damages or destroys or causes to move or shift any railway signalling installation, or places on the
railway track obstacle(s) that might lead to the overturning of a train without having caused serious consequences shall be investigated
for criminal responsibility in accordance with Article 108 of the Criminal Law; any person who acts in the aforesaid manner causing
serious consequences shall be investigated for criminal responsibility in accordance with Article 110 of the Criminal Law.

Article 62

Any person who steals spare

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON THE ESTABLISHMENT OF MARITIME COURTS IN COASTAL PORT CITIES

Decision of the Standing Committee of the National People’s Congress on the Establishment of Maritime Courts in Coastal Port Cities

Important Notice: This English document is coming from “LAWS AND REGULATIONS OF THEPEOPLE’S REPUBLIC OF CHINA GOVERNING
FOREIGN-RELATED MATTERS” (1991.7)which is compiled by the Brueau of Legislative Affairs of the StateCouncil of the People’s
Republic of China, and is published by the ChinaLegal System Publishing House.In case of discrepancy, the original version in Chinese
shall prevail.

Whole Document DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’SCONGRESS ON THE ESTABLISHMENT OF MARITIME
COURTS IN COASTAL PORT CITIES(Adopted at the Eighth Meeting of the Standing Committee of theSixth National People’s Congress and
promulgated for implementation byOrder No. 20 of the President of the People’s Republic of China onNovember 14, 1984)To
meet the needs in the development of the country’s maritime transportand in its economic relations and trade with foreign
countries, effectively exercise the country’s judicial jurisdiction and handlemaritime affairs and maritime trade cases
promptly, so as to safeguard thelawful rights and interests of both Chinese and foreign litigants, thefollowing decisions have
been made:1. Maritime courts shall be established in certain coastal port citiesaccording to need. The establishment of such
courts, their alteration andtheir abolition shall be decided by the Supreme People’s Court.The establishment of adjudicatory apparatus
and administrative offices ofthe maritime courts shall be decided by the Supreme People’s Court.2. The maritime courts shall be
responsible to the standing committees ofthe people’s congresses of the municipalities where they are located.The judicial work
of maritime courts shall be subject to supervision bythe higher people’s courts in their respective localities.3. The maritime
courts shall have jurisdiction over maritime cases andmaritime trade cases of first instance; they shall not handle criminalcases
or other civil cases. The designation of the jurisdiction area foreach maritime court shall be decided by the Supreme People’s
Court.The higher people’s court in the locality where a maritime court islocated shall have jurisdiction over appeals against
the judgments andorders of the maritime court.4. The president of a maritime court shall be appointed or removed by thestanding
committee of the people’s congress of the city where the court islocated, upon a proposal submitted by the chairman of the
standingcommittee of the people’s congress. The vice- presidents, chief judgesand associate chief judges of divisions, judges
and members of thejudicial committee of a maritime court shall be appointed or removed bythe standing committee of the people’s
congress of the city where thecourt is located, upon a proposal submitted by the president of themaritime court.

CIRCULAR OF THE STATE COUNCIL CONCERNING THE APPROVAL OF THE NATIONAL DEVELOPMENT ZONES FOR NEW AND HIGH TECHNOLOGY INDUSTRIES AND THE RELEVANT POLICIES AND PROVISIONS

Category	SCIENCE AND TECHNOLOGY	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1991-03-06	Effective Date	1991-03-06

Circular of the State Council Concerning the Approval of the National Development Zones for New and High Technology Industries and the Relevant Policies and Provisions

ANNEX I  Requirements and Measures for the Acknowledgement and
ANNEX II  Interim Provisions on Policies for the National Development
ANNEX III  Provisions on the Tax Policy for the National Development

(March 6, 1991)

In pursuance of the Decision of the Central Committee of the Communist
Party of China on the Reform of the Science and Technology Management System,
a number of development zones for new and high technology industries have
been successively established in recent years in some large and mediumsized
technologyintensive cities and coastal areas, which have promoted the
development of new and high technology industries in our country. In order to
act in the spirit of further implementing the Torch Programme and managing
well the development zones for new and high technology, as advocated in the
Proposal of the Central Committee of the Communist Party of China on the
Formulation of the TenYear Programme and the Eighth FiveYear Plan for
National Economic and Social Development so as to expedite the development of
new and high technology industries, the State Council has decided to
designate another group of existing development zones for new and high
technology industries in various places as national development zones for new
and high technology industries, in addition to the Beijing Experimental Zone
for the Development of New Technology Industries approved by the State
Council in 1988, and to bestow them preferential policies accordingly. The
following are hereby notified:

1. The State Council approves the designation, as examined and determined
by the State Science and Technology Commission, of the following 21
development zones as the national ones for new and high technology industries:

Donghu New Technology Development Zone, Wuhan;

Pukou ExportOriented Development Zone for New and High Technologies,
Nanjing;

Nanhu Science and Technology Development Zone, Shenyang;

Tianjin New Technology Industries Park;

Xi’an Development Zone for New Technology Industries;

Chengdu Development Zone for New and High Technology Industries;

Weihai Torch Development Zone for High Technology Industries;

Zhongshan Torch Development Zone for High Technology Industries;

NanhuNanling New Technology Industries Park, Changchun;

Harbin High Technology Development Zone;

Changsha Experimental Zone for the Development of Science and Technology;

Fuzhou Science and Technology Park;

Tianhe Development Zone for New and High Technology Industries, Guangzhou;

Hefei Science and Technology Industry Park;

Chongqing Development Zone for New and High Technology Industries;

Hangzhou Development Zone for New and High Technology Industries;

Guilin Development Zone for New Technology Industries;

Zhengzhou High Technology Development Zone;

Ningwozhuang Experimental Zone for the Development of New Technology
Industries, Lanzhou;

Shijiazhuang Development Zone for New and High Technology Industries; and

Jinan Development Zone for High Technology Industries.

2. In addition, the Caohejin Development Zone for NewlyEmerged
Technologies in Shanghai, Dalian New and High Technology Industries Park,
Shenzhen Science and Technology Industry Park, Xiamen Torch Development Zone
for High Technology Industries and Hainan International Science and
Technology Industry Park, which have been respectively set up in the economic
and technological development zones and in the special economic zones, are
also designated as the national development zones for new and high technology
industries.

3. The State Council authorizes the State Science and Technology
Commission to be responsible for the examination and determination of the
bounds and the area of each national development zone for new and high
technology industries, and for the relevant management and specific guidance
of each zone.

4. The State Council approves the Requirements and Measures for the
Acknowledgement and Determination of New and High Technology Enterprises in
the National Development Zones for New and High Technology Industries
(Annex I) and Interim Provisions on Policies for the National Development
Zones for New and High Technology Industries (Annex II) both formulated by
the State Science and Technology Commission, and Provisions on the Tax Policy
for the National Development Zones for New and High Technology Industries
(Annex III) formulated by the State Administration of Taxation, which should
all be observed and implemented.

5. In the Beijing Experimental Zone for the Development of New Technology
Industries, all transactions of business should be conducted in accordance
with the Interim Regulations of the Beijing Experimental Zone for the
Development of New Technology Industries, except for the magnitude control of
investment in fixed assets and the reserved percentage of foreign exchange
earned through exportation, which should comply with the existing provisions.

It is of great significance for the readjustment of industrial structure,
the promotion of the traditional industries transformation, the improvement
of labour productivity and the enhancement of international competitiveness
to accelerate the commercialization and industrialization of the achievements
in high technology by relying on our own scientific and technical strength.
All localities and all relevant departments shall strengthen leadership over
and give effective support to the development zones for new and high
technology industries and, in accordance with the relevant provisions and
policies of the State, promote a sound development of new and high technology
industries of our country.
ANNEX I Requirements and Measures for the Acknowledgement and
Determination of New and High Technology Enterprises in the National
Development Zones for New and High Technology Industries

Article 1 These Measures are formulated for the implementation of the
relevant policies and provisions on the national development zones for new
and high technology industries approved by the State Council and the
promotion of the development of new and high technology industries in China.

Article 2 New and high technology enterprises in the national
development zones for new and high technology industries (hereinafter
referred to as the development zones) shall be acknowledged and determined in
accordance with these Measures.

Article 3 The science and technology commissions of provinces,
autonomous regions, municipalities directly under the Central Government and
cities separately listed in planning (hereinafter referred to as the
provincial or municipal science and technology commissions) shall be the
competent organs responsible for acknowledging and determining new and high
technology enterprises in the development zones and for supervising the
implementation of these Measures under the people’s governments of provinces,
autonomous regions, municipalities directly under the Central Government and
cities separately listed in planning. The offices of the development zones
shall, under the leadership of the relevant people’s governments and under
the guidance of the relevant provincial or municipal science and technology
commissions, handle the specific matters in examining and approving the
acknowledgement and determination of new and high technology enterprises.

Article 4 In line with the current state of scientific and technical
development across the world, the scope of new and high technologies is
defined as follows:

(1) microelectronics and electronic information technology;

(2) space science and aero/space technology;

(3) photoelectronics and photo-mechanic-electronic integration technology;

(4) life science and bioengineering technology;

(5) materials science and new-material technology;

(6) energy science and new energy technology and efficient energy-saving
technology;

(7) ecology science and environmental protection technology;

(8) earth science and marine engineering technology;

(9) science of fundamental matters and radiation technology;

(10) medicine science and biomedical engineering;

(11) other new processes and technologies applied on the basis of
traditional industries.

This scope of new and high technologies will be supplemented and revised
in accordance with the continuous development of new and high technologies at
home and abroad, and the State Science and Technology Commission shall
announce the supplemented and revised scope.

Article 5 A new and high technology enterprise shall be an
intellect-intensive and technology-intensive economic entity. The new and
high technology enterprise in a development zone shall meet the following
requirements:

(1) being engaged in the research, development, production and business
operations of one or several high technologies and related products as
specified in Article 4 of these Measures, excluding purely commercial
business operations;

(2) being independent in accounting and management, and responsible for
its own profits and losses;

(3) being headed by scientific and technical personnel who are familiar
with the research, development, production and business operations of the
enterprise’s products, and are full-time employees of the enterprise;

(4) having scientific and technical personnel with the educational
qualification at or above the level of higher learning who shall account for
at least 30 percent of the enterprise’s total staffs and workers; among them
at least 10 percent being engaged in research and development of new and high
technology products;

As for the labour-intensive new and high technology enterprises which are
engaged in the production of new and high technology products or service, the
scientific and technical personnel with educational qualifications at or
above the level of higher learning shall account for at least 20 percent of
their total staffs and workers;

(5) possessing a capital amounting to or exceeding one hundred thousand
yuan (RMB), as well as premises and facilities commensurate with the scale of
the business operation;

(6) spending at least 3 percent of the enterprise’s annual gross income
on the research and development of new and high technology and related
products;

(7) realizing a total of the technological income and output value of new
and high technologies exceeding 50 percent of the annual gross income of the
new and high technology enterprise that generally comprises the technological
income, output value of products from new and high technologies, output value
of products from conventional technologies, and technologically interrelated
trade;

The technological income refers to earnings from technology consultancy
and transfer, the investment in the form of technologies in businesses,
technological service, training, project and contracting, the export of
technologies, the assimilation of imported technologies, and pilotplant
products that are performed by the new and high technology enterprise;

(8) having explicit articles of association and strict technical and
financial management system;

(9) having fixed a business duration of 10 years or longer.

Article 6 For the setting up of a new and high technology enterprise, an
application shall be submitted to the office of the development zone
concerned for examination and acknowledgement, and then to a provincial or
municipal science and technology commission for approval, and a certificate
of new and high technology enterprise shall be issued by the approving
commission.

Article 7 The offices of the development zones shall, in accordance with
requirements specified in Article 5 of these Measures, make regular
inspections on new and high technology enterprises. Enterprises which fail to
meet the aforesaid requirements may not enjoy the treatment provided for by
different policies for the national development zones for new and high
technology industries.

Article 8 The time limit for the products to be listed as new and high
technology ones shall usually be no longer than five years. The time limit
may be extended to seven years after approval for new and high technology
products that need a longer technical cycle.

Article 9 Any change in the scope of business operation, amalgamation or
breakup, divertion in trade, removal to a new site or close-down of new and
high technology enterprises shall be approved beforehand by the office of the
development zone concerned. The enterprises shall register such changes with
the relevant departments in charge of industry, commerce and taxation.

Article 10 Any State-owned scientific and technological research unit
located in a development zone which has become a financially independent unit
after the reduction of its Statefunded administration and undertaking
expenses according to the provisions of the State and which meets the
requirements specified in Article 5 of these Measures may be acknowledged as
a new and high technology enterprise upon verification by the office of the
development zone concerned.

Article 11 These Measures shall replace the Interim Provisions on the
Requirements and Standards for the Acknowledgement and Determination of New
and High Technology Enterprises promulgated earlier by the State Science and
Technology Commission.

Article 12 The provincial and municipal science and technology
commissions shall work out detailed rules for the implementation of these
Measures. Any discrepancy found in the original detailed rules for the
implementation shall be revised in accordance with these Measures.

Article 13 The State Science and Technology Commission shall be
responsible for the interpretation and revision of these Measures.

Article 14 These Measures shall be put into effect as of the date of
approval by the State Council.
ANNEX II Interim Provisions on Policies for the National Development
Zones for New and High Technology Industries

Article 1 These Provisions are formulated to foster the establishment of
new and high technology industries development zones in our country and
promote the development of new and high technology industries.

Article 2 These Provisions shall apply to new and high technology
enterprises in the national development zones for new and high technology
industries acknowledged and determined in line with the “Requirements and
Measures for the Acknowledgement and Determination of New and High Technology
Enterprises in the National Development Zones for New and High Technology
Industries” formulated by the State Science and Technology Commission.

Article 3 These Provisions cover all preferential policies except for
tax policy.

Article 4 Matters concerning preferential tariffs and duties on imports
and exports shall be dealt with in accordance with the following stipulations:

(1) For importing raw materials and component parts destined for
processing export products by new and high technology enterprises in the new
and high technology industries development zones, import license shall be
exempted. The Customs in charge shall check and release the above-mentioned
raw materials and parts against the export contracts and approval papers
issued by the new and high technology industries development zones.

(2) Subject to the approval by the Customs, new and high technology
enterprises may set up in the new and high technology industries development
zones bonded warehouses or bonded factories. The Customs shall exempt import
duties, tax for the import products and tax on the added value of products in
accordance with the provisions on processing imported raw materials and parts
and the real export volume of the processed products.

(3) The export products of new and high technology enterprises, except
for those restricted by the State or those otherwise stipulated, shall be
exempted from export duties.

(4) Bonded export products shall not be marketed at home unless approved
by the original examination and approval authorities and the Customs, and
duties shall be levied according to the regulations. Of these products, those
that are specifically rationed by the State or require import license shall
go through the procedures for approving the import or for applying for the
import license according to the relevant provisions of the State.

(5) The import of apparatus and equipment to be used by new and high
technology enterprises for the development of new and high technology and
which cannot be made at home shall be exempted from import duties against the
approval papers issued by the examination and approval authorities and after
the verification by the Customs.

The Customs may, when deeming it necessary, set up agencies or station
supervisory groups in the new and high technology industries development
zones to supervise and control the imports and exports.

Article 5 As regards import and export business, it is stipulated as
follows:

(1) With the approval of the Ministry of Foreign Economic Relations and
Trade, technology import and export corporations may be set up in the new and
high technology industries development zones to promote the access of new and
high technology products to international markets.

(2) According to the relevant provisions of the State new and high
technology enterprises with good results in export business may be granted
the right to handle foreign trade transactions. New and high technology
enterprises may, with approval by relevant departments, set up branches
overseas according to business needs.

Article 6 As regards capital and credits, it is stipulated as follows:

(1) Banks shall give an active support to new and high technology
enterprises and do their best to provide enterprises with funds needed for
their development, production and construction.

(2) Banks may arrange the issue of long-term bonds in definite sums for
the new and high technology industries development zones so as to raise funds
from the society to help the development of new and high technology
industries.

(3) Departments concerned may establish venture investment funds in the
new and high technology industries development zones for the development of
new and high technology products with greater risks. Venture investment
companies may be set up in the new and high technology industries development
zones where conditions are available.

Article 7 The capital construction projects for production and sales of
new and high technology enterprises shall be carried out according to the
overall plan, and be given priority to be brought into the local fixed
capital investment programmes.

Article 8 Approved by the local people’s governments, new and high
technology enterprises may be exempted from subscribing for State key
construction bonds.

Article 9 The new and high technology products developed by new and high
technology enterprises which have met qualifications of the import products
of the same kind in all quality standards and with a certain production scale
shall, after being examined and approved by the State Science and Technology
Commission jointly with other departments concerned, be listed in the
catalogue of the Staterestricted import commodities, and imports of such
products shall be restricted according to the existing regulations on import
control.

Article 10 Prices of new products developed by new and high technology
enterprises involving Statecontrolled prices (including State-set and
State-guided prices), except for those of specific varieties that shall be
fixed by departments in charge of price control, may be fixed by the
enterprises themselves during a definite period of trial sale of the products
but shall report to departments in charge of the enterprises and price
control for record. Prices of new and high technology products which are not
under the State price control may be fixed by the enterprises themselves.

Article 11 New and high technology enterprises may apply accelerated
depreciation of their apparatus and equipments used for development of new
and high technologies and production of their products.

Article 12 All tax payments from new and high technology enterprises in
the new and high technology industries development zones, if not affecting
the portion to be handed over to the central financial department and with
the approval of the local people’s governments, shall be based on the level
of such payments levied in 1990, and the amount of taxes collected in excess
thereof shall be returned, for a period of up to five successive years, to
the new and high technology industries development zones for their further
construction.

Article 13 Matter related to overseas trips more than once in a year
made by business and technical personnel of new and high technology
enterprises shall be dealt with in accordance with the Circular of the
General Office and the State Council Concerning the Transmission of the
Request for Instructions Submitted by the State Science and Technology
Commission to Simplify the Examining and Approving Procedures for Certain
People of New and High Technology Enterprises with Respect to Their Multiple
Exit from the Country.

Article 14 All localities and departments shall, when planning
employment and recruiting staffs and workers, give priority to needs of new
and high technology enterprises for recruiting university graduates and
postgraduates, as well as returned students and experts.

Article 15 People’s governments of provinces, autonomous regions,
municipalities directly under the Central Government or cities separately
listed in plan where the new and high technology industries development zones
approved by the State are located may work out measures for implementation in
line with these Provisions.

Article 16 The State Science and Technology Commission shall, jointly
with other departments concerned, inspect at regular intervals the new and
high technology industries development zones. The implementation of
preferential policies shall be suspended in those zones poorly managed or
showing slow progress, even to the degree of cancellation of their
qualifications as the national new and high technology industries development
zones.

Article 17 The State Science and Technology Commission and other
departments concerned shall be responsible for the interpretation of these
Provisions.

Article 18 These Provisions shall be put into effect as of the date of
approval by the State Council.
ANNEX III Provisions on the Tax Policy for the National Development
Zones for New and High Technology Industries

Article 1 These Provisions are formulated in order to accelerate the
healthy development of new and high technology industries of our country and
to further promote the establishment of the new and high technology
industries development zones.

Article 2 These Provisions shall apply only to the acknowledged and
determined new and high technology enterprises (hereinafter referred to as
development zone enterprises) in the new and high technology industries
development zones (hereinafter referred to as development zones) approved by
the State Council.

Article 3 The acknowledgement requirements and standards for the
development zones and development zone enterprises as well as the scope of
new and high technologies and the products thereof shall be dealt with
according to the unified provisions formulated by the State Science and
Technology Commission.

Article 4 The income tax of development zone enterprises shall be levied
at a reduced rate of 15 percent from the date of their acknowledgement and
determination.

Article 5 When the output value of export of a development zone
enterprise exceeds 70 percent of its total annual output value, the income
tax shall be levied at a reduced rate of 10 percent after being verified by
the taxation authorities.

Article 6 A newly-established development zone enterprise may, upon
approval by the taxation authorities of an application filed by the
enterprise, be exempted from income tax in the first two operation years.

A Chinese-foreign equity joint venture newly-established as a development
zone enterprise and scheduled to operate jointly for a period of 10 years or
more may, upon approval by the taxation authorities of an application filed
by the enterprise, be exempted from income tax in the first two years after
it has begun to make a profit.

Development zone enterprises using foreign investments within the special
economic zones and economic and technological development zones shall be
subject to the administration of relevant tax policy of the special zones or
economic and technological development zones, and shall not be restricted by
the provisions of the above two paragraphs of this Article.

On the expiration of the tax-free period, considerations of appropriate
tax reductions or exemptions for a definite period of time may, upon
approval, be given to the enterprises which still have real difficulties in
tax payment.

Article 7 Development zone enterprises using domestic investments with
an annual net income not exceeding 300,000 yuan (RMB) from technological
transfer and consultation, services and trainings related to this transfer
shall be temporarily exempted from income tax for the above-mentioned amount;
for the portion exceeding 300,000 yuan (RMB), income tax shall be levied
according to the appropriate tax rate. For all new and high technology
products developed under the “Torch Programme”, and conforming to exemption
and reduction conditions for new products, the amount derived from tax
exemption or reduction on products and on the added value of products shall
be used specially for the technical development and shall be exempted from
income tax.

Article 8 The amount derived from tax exemption or reduction for
development zone enterprises using domestic investments shall be regarded as
national support funds managed under an independent accounting system, and
shall be specially used for the development of new and high technologies and
their products under the supervision of relevant departments.

Article 9 For a development zone enterprise jointly run with another
investing party, the party shall, according to its own enterprise financial
system, pay retroactively the income tax or the portion to be handed over to
its superior department from the profit distributed to it after deducting the
tax levied in the development zone.

Article 10 For development zone enterpri

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