REGULATIONS ON THE ADMINISTRATION OF THE REGISTRATION OF ENTERPRISES IN THE XIAMEN SPECIAL ECONOMIC ZONE

Regulations on the Administration of the Registration of Enterprises in the Xiamen Special Economic Zone

(Effective Date 1984.07.14)

Article 1. These Regulations are formulated in accordance with the relevant laws and statutory regulations of the People’s Republic
of China.

Article 2. Enterprises established in the Special Zone must carry out registration procedures with the Xiamen Municipal Industry
and Commerce Administration Bureau. Any enterprise which is not registered will not be permitted to go into operation.

Article 3. In applying for registration, a Special Zone enterprise shall produce the following documents:

(i) a document of approval issued by the Xiamen Municipal People’s Government or the organ in charge authorised
by the Municipal People’s Government;

(ii) copies of the approved agreement, contract and articles of association signed by the various parties to the enterprises;

(iii) copies of the business licence or other relevant documents issued by the government department in charge in
the country (or region) in which each of the parties to the enterprise is based.

A Special Zone enterprise shall also submit the approval document issued by the relevant department in charge should
its undertaking be classified by the State as a specialised line of business or trade.

Article 4. In applying for registration, a Special Zone enterprise shall fill out a registration form in triplicate in Chinese
or in both Chinese and foreign languages. The main items to be registered are: the name of the enterprise, the address,
the scope of production or business, the form of production or business, the registered capital, the shares of the respective
joint equity or co-operative parties, or the chairman and vice-chairmen of the board of directors, the general manager
and deputy general manager, or the director and deputy directors of the factory, the number of employees, the number
of foreign employees, the document approving organ, the approval document’s number and date of approval.

Article 5. Resident representative offices to be established in the Special Zone by foreign enterprises, enterprises run by
Overseas Chinese, or persons from Hong Kong, Macao and Taiwan, and Sino-foreign joint ventures based outside China
shall, within 30 days of the date of approval, register with the Xiamen Municipal Industry and Commerce Administration
Bureau by presenting copies of the approval document and the registration certificate issued by the organ in charge
in the country (or region) in which the enterprise is located or other evidence of credit-worthiness, together with the
representative’s letter of authorisation. Without registration, a resident office will not be permitted to engage
in business activities.

Article 6. Special Zone enterprises and resident offices are deemed to be officially established on the day on which their business
licence or registration certificate is obtained. Their proper business activities and legitimate rights and interests
are protected by the law of the People’s Republic of China.

Article 7. A Special Zone enterprise or resident office, shall present its business licence or registration certificate for opening
an account with a bank established in the Xiamen Special Zone and register with the Xiamen Municipal Taxation Bureau
for taxation purposes.

Article 8. When a Special Zone enterprise changes its name or location, its line of production, increases, decreases or transfers its
registered capital, changes the scope of its production or business, or extends the duration of its contract, the
enterprise shall register the change with the Xiamen Municipal Industry and Commerce Administration Bureau within 30
days of the change being approved by the original examining and approval organ. In the event of the replacement of
an enterprise’s chairman or general manager, the enterprise shall register the change within seven days of the decision
of the board of directors. The registration of other changes shall be submitted in writing to the Xiamen Municipal
Industry and Commerce Administration Bureau at the end of each year.

Article 9. The registration certificate for a resident office will be renewed every year. When changing the name of the resident
office, the resident representative(s), the scope of operations, the location of the resident office and the
term of residency, the registration of the same shall be made by producing the approval document to the Xiamen Municipal
Industry and Commerce Administration Bureau within seven day of the changes being approved by the original approval organ.

Article 10. When applying for registration or the registration of changes, Special Zone enterprises or resident offices shall
pay the fee for registration or the registration of changes in accordance with regulations.

Article 11. Upon the expiry of the term of operations or residency period, or upon the approved pre-term closure or termination of
business, a Special Zone enterprise or resident office shall undertake the cancellation of registration, and hand
in for cancellation the business licence or registration certificate with the Xiamen Municipal Industry and Commerce
Administration Bureau.

Article 12. The Xiamen Municipal Industry and Commerce Administration Bureau shall examine, verify and give an official reply
to Special Zone enterprises or resident offices, within seven days of receiving the various documents from the enterprises
or offices concerning registration or the registration of changes.

Article 13. The Xiamen Municipal Industry and Commerce Administration Bureau supervises and inspects Special Zone enterprises
and resident offices in accordance with the law. In the case of violation of these Regulations, the enterprise
or resident office concerned shall, on the basis of the seriousness of each specific case, be given a warning, a fine,
be ordered to suspend operations, or have is business licence or registration certificate revoked. In the case
of suspension of operations or revocation of the business licence or registration certificate, the matter must be
reported to the Xiamen Municipal People’s Government for examination and approval and be filed with the Industry
and Commerce Administration Bureau.

Article 14. These Regulations will be effective from the date fo promulgation.

CUSTOMS RULES OF THE PEOPLE’S REPUBLIC OF CHINA ON THE IMPORT OF LEGACIES

PROVISIONS OF THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE, THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE CONCERNING THE INVESTMENTS MADE BY THE VARIOUS PARTIES OF CHINESE-FOREIGN EQUITY JOINT VENTURES

19871230the State Council

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

Provisions of the Ministry of Foreign Economic Relations and Trade, the State Administration for Industry and Commerce Concerning
the Investments Made by the Various Parties of Chinese-foreign Equity Joint Ventures

January 1,1988

(Approved by the State Council on December 30, 1987, Promulgated by the Ministry of Foreign Economic Relations and Trade and the State
Administration for Industry and Commerce on January 1, 1988)

Article 1

These Provisions are formulated in accordance with the Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures
and other pertinent laws and regulations in order to protect the lawful rights and interests of the various parties to Chinese-foreign
equity joint ventures (hereinafter referred to as the “joint ventures”), and to maintain the social economic order.

Article 2

The investments contributed by the various parties to a joint venture in accordance with the stipulations of the contract of the said
joint venture must be the cash owned by the parties themselves as well as the physical goods, the industrial property rights, the
proprietary technology and etc. that are owned by the parties themselves and have not been used to establish any security interests.

In cases where physical goods, industrial property rights and proprietary technology are used as investments at the evaluated price,
the investor shall present valid documents attesting their proprietary rights and their right of disposal.

Article 3

No party to a joint venture may use the loans, rented equipment or other assets it has obtained in the name of the joint venture,
or the assets of persons other than the parties as its own investment contribution to the joint venture; nor may it use the assets
or rights and interests of the joint venture, or the assets or rights and interests of the other parties to the joint venture as
the warranty for its investment contribution to the joint venture.

Article 4

The various parties to a joint venture shall set the time limit in their joint venture contract for paying up their respective investment
contributions to the joint venture, and they shall pay fully their respective investment contributions within the time limit stipulated
in the joint venture contract. The investment contribution certificates issued by the joint venture in accordance with the pertinent
stipulations shall be submitted to the original examining and approving authorities and the relevant administrative department for
industry and commerce for the record.

If the joint venture contract stipulates that investment contributions shall be paid up in one lump, the various parties to the said
joint venture shall make the full payment of their respective investment contributions within six months from the date the business
licence is signed and issued.

If the joint venture contract stipulates that investments shall be paid by installments, the first installment paid by the various
parties shall not be less than 15% of the total amount of their respective investment contributions and be paid within three months
as of the date the business licence is signed and issued.

Article 5

In the event that the various parties to a joint venture fail to make the full payment of their respective investment contributions
within the time limit prescribed in Article 4 , the joint venture shall be considered to be dissolved of its own accord, and the
approval certificate for the joint venture shall automatically cease to be effective. The joint venture shall go through the procedures
for cancellation of registration with the administrative department for industry and commerce, and hand in its business licence for
cancellation; if a joint venture fails to go through the procedures for cancellation of registration or to hand in its business licence
for cancellation, the administrative department for industry and commerce shall revoke its business licence and announce this publicly.

Article 6

After the various parties to a joint venture have paid the first installment of their respective investment contributions, if they
fail to pay or to pay fully any of the remaining installments three months beyond the deadline as stipulated in the joint venture
contract, the administrative department for industry and commerce shall, in conjunction with the original examining and approving
authorities, issue a notice to the various parties to the said joint venture, enjoining them to pay the full amount due within one
month. In the event that the various parties to the said joint venture still fail to make the full payment of their respective investment
contributions in accordance with the time limit prescribed in the notice mentioned in the preceding paragraph, the original examining
and approving authorities have the right to revoke the approval certificate for the said joint venture. After the approval certificate
has been revoked, the said joint venture shall go through the procedures for cancellation of registration with the administrative
department for industry and commerce, hand in its business licence for cancellation, and settle claims and debts. If it fails to
go through the procedures for cancellation of registration or to hand in its business licence for cancellation, the administrative
department for industry and commerce has the right to revoke its business licence and to announce this publicly.

Article 7

The failure of one of the parties to a joint venture to make the payment, or the full payment, of its investment contribution on time
in accordance with the stipulations of the joint venture contract constitutes a breach of the contract. The observant party (parties)
shall urge the defaulting party to make the payment, or the full payment, of its investment contribution within one month. If the
defaulting party still fails to do so before the deadline, this shall be considered as the abandonment by the defaulting party of
all its rights as stipulated in the joint venture contract and its withdrawal from the joint venture of its own accord. The observant
party (parties) shall, within one month from the date when the defaulting party’s prescribed payment is overdue, make an application
to the original examining and approving authorities for the approval to dissolve the said joint venture, or for the approval to find
another joint venture party to assume the defaulting party’s rights and obligations as stipulated in the joint venture contract.
The observant party (parties) may, according to law, claim compensation from the defaulting party for the economic losses caused
by the latter’s failure to make the payment, or the full payment, of its investment contribution.

If the defaulting party mentioned in the preceding paragraph has paid part of its prescribed investment contribution, this part of
investment payment shall be liquidated by the joint venture.

In the event that the observant party (parties) fails (fail) to make an application to the original examining and approving authorities,
in accordance with the provisions of the first paragraph of this Article, for the approval to dissolve the joint venture, or for
the approval to find another joint venture party, the examining and approving authorities have the right to revoke the approval certificate
issued to that joint venture. After the approval certificate has been revoked, the said joint venture shall go through the procedures
for cancellation of registration with the administrative department for industry and commerce, and hand in its business licence for
cancellation; if it fails to go through the procedures for registration cancellation or to hand in its business licence for cancellation,
the administrative department for industry and commerce has the right to revoke its business licence and to announce this publicly.

Article 8

With respect to any joint venture which obtained its business licence before the date these Provisions become effective, if the various
parties or any one of these parties have (has) failed to make the payment of the respective investment contributions in accordance
with the time limits stipulated in the joint venture contract, they (it) shall, within two months as of the date these Provisions
become effective, make the full payment of the prescribed investment contributions in accordance with the provisions of the contract.

In the event that the various parties or any one of the parties still fail(s) to make the full payment of the respective investment
contributions within the time limit prescribed in the preceding paragraph, the case may be handled in accordance with the provisions
in Article 5 through Article 7 of these Provisions.

Article 9

With respect to any joint venture which obtained its business licence before the date these Provisions become effective, if the various
parties to that joint venture have not stipulated in their joint venture contract the respective time limits for making their respective
investment contributions, and they have not made the full payment, the various parties shall, within two months as of the date these
Provisions become effective and in accordance with these Provisions, conclude and sign a supplementary agreement to their joint venture
contract prescribing the time limits for the various parties to the joint venture to make the payment of their respective investment
contributions, and submit this supplementary agreement to the original examining and approving authorities for examination and approval;
after they have obtained the approval, they shall submit their case to the administrative department for industry and commerce for
the record.

In the event that a joint venture mentioned in the preceding paragraph fails to establish itself or to start its operations after
six full months since the date of the issuance of its business licence owing to the failure of its various parties to conclude and
sign a supplementary agreement to their joint venture contract within two month prescribed in the preceding paragraph, prescribing
the time limits for making their respective investment payments, and the failure to pay full their respective investment contributions,
the original examining and approving authorities have the right to revoke the approval certificate issued to that joint venture.
After the approval certificate has been revoked, the said joint venture shall go through the procedures for cancellation of registration
with the administrative department for industry and commerce, and hand in its business licence for cancellation. If the said joint
venture fails to go through the procedures for cancellation of registration or to hand in its business licence for cancellation,
the administrative department for industry and commerce has the right to revoke its business licence and to announce this publicly.

Article 10

The investment payment made by the various parties to a Chinese-foreign contractual joint venture shall be handled with reference
to these Provisions.

Article 11

These Provisions shall enter into force as of March 1, 1988.

The Ministry of Foreign Economic Relations and Trade, the State Administration for Industry and Commerce
1988-01-01

MEASURES OF SHANGHAI MUNICIPALITY GOVERNING COMMODITY PURCHASING AND PRODUCT SALES BY FOREIGN INVESTMENT ENTERPRISES

Measures of SHANGHAI Municipality Governing Commodity Purchasing and Product Sales by Foreign Investment Enterprises

(Effective Date:1989.07.01–Ineffective Date:)

Article 1. These Measures are formulated in accordance with the provisions of the Law of the People’s Republic of China on Sino-foreign Joint
Equity Enterprises, the Law of the People’s Republic of China on Sino-foreign Co-operative Enterprises, the Law of the People’s Republic
of China on Enterprises with Sole Foreign Investment and other relevant administrative laws and decrees, while taking into account
the specific circumstances of the city.

Article 2. These Measures shall apply to the purchase of commodities and sale of products by Sino-foreign joint equity enterprises, Sino-foreign
co-operative enterprises and sole foreign investment enterprises (hereinafter referred to as foreign investment enterprises) established
within the administrative district of Shanghai Municipality.

Article 3. A foreign investment enterprise shall have the right to import commodities required for its own use and to export its own products
independently within the approved scope of its contract, but any goods subject to State import or export licence control shall be
handled in accordance with the relevant provisions of the Ministry of Foreign Economic Relation and Trade governing the application
for import and export licences by foreign investment enterprises.

An import or export licence application which comes within the authorised scope of approval of the Shanghai Municipal Commission of
Foreign Economic Relations and Trade (hereinafter referred to as the Shanghai COFERT) shall be examined, verified and, where appropriate,
an import or export licence issued within five working days of receiving the application.

Article 4. Before endorsing the establishment of a foreign investment enterprise which proposes to manufacture products subject to State export
licence control, the local municipal examining and approval organ shall consult the Shanghai COFERT or, through it, the higher authorities
in charge of foreign economic relations and trade, and shall urge the applicant to undertake and supervise its completion of all
necessary formalities.

Article 5. Commodities required by a foreign investment enterprise for its production and business operations may be purchased on the international
marker or from local Shanghai markets or other domestic Chinese markets.

A foreign investment enterprise may purchase commodities from local Shanghai markets through the following channels:

(1) local municipal foreign investment enterprise commodity service companies;

(2) commodity dealers;

(3) foreign trade corporations;

(4) commodity producers;

(5) bonded warehouses;

(6) commodity fairs and trade centres.

Units or enterprises dealing in commodities shall give priority to meeting the needs of exporting enterprises and technologically
advanced enterprises, providing the same conditions prevail.

Article 6. A foreign investment enterprise may purchase without restriction on local Shanghai markets any amount of office supplies and domestic
consumer goods that it may require.

Article 7. The supply of materials needed by a foreign investment enterprise to manufacture products listed in State or local municipal production
plans or purchasing contracts shall be assured by the department which organised the production plan or allocated the contract.

Materials required by a foreign investment enterprise for a capital construction project which is included in the city’s commodity
distribution plans shall be supplied by the relevant units or enterprises dealing in those materials, in accordance with the plans.

Article 8. In the case of a Chinese investor which, together with a foreign partner, invests all or part of its assets in the establishment
of a foreign investment enterprise, unless the approval documents specifically exclude materials from inclusion in the commodity
distribution plan, the relevant departments shall ensure that, in accordance with its investment status, the Chinese investor’s original
commodity supply channels are maintained and commodity dealers shall continue to provide materials pursuant to the original supply
plans.

Article 9. A foreign investment enterprise may use its profits as investment to form affiliated enterprises with other enterprises in China
and to establish commodity supply bases relevant to its production needs. These affiliated enterprises may enjoy preferential treatment
in accordance with the relevant provisions of the State and local municipal authorities regarding the development of horizontal integration.

Before an affiliated enterprise may be established, a foreign investment enterprise shall be required to submit documents clarifying
the source of investment funds and investment projects to the original examining and approval organ and the local municipal administration
for industry and commerce and, after these documents have been examined and approved, it shall complete formalities for the registration
of affiliated enterprises in accordance with the relevant provisions.

Article 10. In addition to a foreign investment enterprise itself importing required commodities, it may also engage as an import agent a municipal
foreign investment enterprise commodity service company, a commodity dealer authorised to conduct import operations or a State or
local municipal foreign trade corporation.

All units and enterprises dealing in commodities shall be required to provide good service to foreign investment enterprises.

Article 11. Foreign investment enterprises shall strive to sell their products on the international market. Products manufactured by a foreign
investment enterprise which are urgently required by the State or Shanghai Municipality or which are currently imported may be sold
primarily on the local market, subject to approval.

The provisions of the Ministry of Foreign Economic Relations and Trade Measures for Foreign Investment Enterprises Purchasing Domestic
Products for Export to Achieve a Balance of Foreign Exchange Income and Expenditure shall be implemented if a foreign investment
enterprise needs to purchase domestic products for export in order to remedy its foreign exchange shortfall.

Article 12. In addition to exporting its products itself, a foreign investment enterprise may also sell its products on a commission or agency
basis through the following channels:

(1) the foreign partner’s sales outlets;

(2) State foreign trade organs based in Shanghai;

(3) local foreign trade corporations and enterprises with import/ export rights;

(4) State or local export commodity fairs and trade conferences.

Article 13. Those products of a foreign investment enterprise which are classified as planned distribution commodities shall be included in the
distribution plan of the commodity control department and sold to the designated users. In the case of production material for key
industrial goods, sales shall be conducted at the producer goods markets of large or medium size cities or through designated sales
agents in accordance with State regulations.

Article 14. A foreign investment enterprise may establish commodity purchasing and product sales agents abroad, subject to approval from relevant
examining and approval organs.

Article 15. Administration of enterprises invested in and established in Shanghai Municipality by Overseas Chinese, Hong Kong, Macao or Taiwanese
businesspeople shall be handled in accordance with the provisions of these Measures.

Article 16. The Shanghai Municipal Foreign Investment Commission and the Municipal Material and Equipment Bureau shall be jointly responsible
for the interpretation of these Measures.

Article 17. These Measures shall take effect from 1 July 1989. The Regulations on Commodity Supply and Marketing and Price Control for Sino-foreign
Joint Equity Ventures in Shanghai Municipality (Trial Implementation), promulgated 5 December 1984 by the Shanghai Municipal People’s
Government, shall be abrogated simultaneously.

INTERIM PROVISIONS FOR THE ADMINISTRATION OF FOREIGN CHAMBERS OF COMMERCE IN CHINA

Category	FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1989-06-14	Effective Date	1989-07-01

Interim Provisions for the Administration of Foreign Chambers of Commerce in China

(Adopted by the State Council at the 39th Executive Meeting on April 28,

1989, promulgated by Decree No. 36 of the State Council of the People’s
Republic of China on June 14, 1989, and effective as of July 1, 1989)

Article 1 These Provisions are formulated with a view to promoting
international trade and economic and technological exchanges, strengthening
the administration of foreign chambers of commerce and protecting their
legitimate rights and interests.

Article 2 A foreign chamber of commerce in China refers to a
non-profit-making organization which is set up in accordance with these
Provisions within the Chinese territory by foreign commercial establishments
and personnel in the Chinese territory and does not engage in any business
transactions.

The activities of foreign chambers of commerce in China shall be aimed at
promoting trade and economic and technological exchanges between their members
and Chinese counterparts and facilitating their research in and discussions
about the development of international trade and economic and technological
exchanges.

Article 3 Foreign chambers of commerce in China must abide by the laws
and regulations of the People’s Republic of China and shall not jeopardize
the state security and social and public interests of China.

Article 4 For the setting up of a foreign chamber of commerce in China,
the following conditions shall be satisfied:

(1) articles of association reflecting the common will of the Chamber’s
members;

(2) a certain number of sponsoring members and responsible persons;

(3) premises as its permanent office; and

(4) lawful sources of funds.

Article 5 Foreign chambers of commerce in China shall be set up according
to their respective country origins and may have both group members and
individual members.

Group members mean those which join the chamber in the name of commercial
establishments. Commercial establishments refer to representative offices or
branches set up in the Chinese territory according to law by foreign
companies, enterprises and other economic organizations.

Individual members mean those staff members of non-Chinese nationality
working in commercial establishments or enterprises with foreign investment
and join the chamber in their own names.

Article 6 The name of a foreign chamber of commerce in China shall be
preceded by the name of its own country plus the word “China”.

Article 7 For the setting up of a foreign chamber of commerce in China, a
written application shall be submitted to the China Chamber of International
Commerce for further transmission to the Ministry of Foreign Economic
Relations and Trade of the People’s.

Republic of China (hereinafter referred to as the examining authorities)
for examination.

The examining authorities shall complete the examination within 60 days
after the date of receiving the written application and all the attached
papers. It shall issue an approval certificate if the conditions laid down in
Article 4 are satisfied or reject the application if the above-mentioned
conditions are not satisfied. The examining authorities shall give
explanations if it cannot complete the examination within the prescribed
time-limit on account of special circumstances.

Article 8 The written application for the setting up of a foreign chamber
of commerce in China shall be duly signed by the chief sponsor and accompanied
by the following papers:

(1) Articles of association of the chamber in quintuplicate, in which the
following items shall be included:

a. name and address;

b. organizational structure;

c. names and status of the Chairman, Vice-Chairmen and Managing Director;

d. procedure for the admission of members and their rights and
obligations;

e. scope of activities; and

f. financial information.

(2) A list of the sponsoring members of the chamber in quintuplicate with
the group members and individual members listed separately. For each of the
group members, the name, address, business scope and names of the responsible
persons shall be indicated. For each of the individual members, the name of
the commercial establishment or enterprise with foreign investment for which
the individual member works, as well as his position and personal resume or
a brief account of his commercial activities in China shall be indicated.

(3) Name and resume of each of the Chairman, Vice-Chairmen and Managing
Director of the chamber in quintuplicate.

Article 9 After the application for the setting up of a foreign chamber
of commerce in China has been examined and approved by the examining
authorities, the chief sponsor shall, in accordance with the stipulations of
these Provisions and other relevant laws and regulations, submit the approval
certificate to the Ministry of Civil Affairs of the People’s Republic of China
(hereinafter referred to as the registration authorities) for registration. A
foreign chamber of commerce in China is established at the time its
registration is accepted and a registration certificate is issued.

Article 10 A foreign chamber of commerce in China shall set up account
books in its office. Its membership fees and other funds obtained in
accordance with the stipulations of its Articles of Association shall be used
to cover the expenditures specified in its Articles of Association and shall
not, under any name, be used as payments to its members or remitted out of
the Chinese terntory.

Article 11 A foreign chamber of commerce in China shall submit in January
of every year a report on its activities in the previous year to the examining
authorities and the registration authorities through the China Chamber of
International Commerce.

The China Chamber of International Commerce shall provide foreign chambers
of commerce in China with consultative and other services for their activities
and contacts with relevant Chinese authorities.

Article 12 When a foreign chamber of commerce in China needs to amend its
Articles of Association or replace its Chairman, Vice-Chairman, or
ManagingDirector or change the address of its premises, it shall apply for
examination and approval and register such changes in accordance with the
procedures laid down in Articles 7, 8 and 9.

Article 13 A foreign chamber of commerce in China shall subject itself to
the supervision of relevant Chinese authorities.

Should a foreign chamber of commerce in China violate these Provisions,
the registration authorities have the power to apply sanctions by imposing
a warning or ordering to ban it.

Article 14 When a foreign chamber of commerce in China is to be
dissolved, it shall submit an application duly signed by its Chairman
together with a certificate proving the completion of its liquidation to the
registration authorities for cancelling its registration and report to the
examining authorities for the record.

A foreign chamber of commerce in China shall stop any of its activities
as of the date when it returns its registration certificate to the
registration authorities.

Article 15 These Provisions shall go into effect as of July 1, 1989.?

DECISION OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE REVISION OF THE CHINESE-FOREIGN EQUITY JOINT VENTURES

Category	FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION	Organ of Promulgation	The National People’s Congress	Status of Effect	In Force
Date of Promulgation	1990-04-04	Effective Date	1990-04-04

Decision of the National People’s Congress Regarding the Revision of the Law of the People’s Republic of China on Chinese-foreign Equity Joint Ventures

(Adopted at the Third Session of the Seventh National People’s Congress on

April 4, 1990, promulgated by Order No. 27 of the President of the People’s
Republic of China and effective as of the date of promulgation)

The Third Session of the Seventh National People’s Congress, having
considered the proposal of the State Council regarding the Amendment to the Law
of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures
(Draft), decides to make the following revisions to the Law of the People’s
Republic of China on Chinese-Foreign Equity Joint Ventures:

1. A new paragraph shall be added to Article 2 as paragraph 3: “The state
shall not nationalize or requisition any equity joint venture. Under special
circumstances, when public interest requires, equity joint ventures may be
requisitioned by following legal procedures and appropriate compensation shall
be made.”

2. Article 3 shall be amended as: “The equity joint venture agreement,
contract and articles of association signed by the parties to the venture shall
be submitted to the state’s competent department in charge of foreign economic
relations and trade (hereinafter referred to as the examination and approval
authorities) for examination and approval. The examination and approval
authorities shall decide to approve or disapprove the venture within three
months. When approved, the equity joint venture shall register with the state’s
competent department in charge of industry and commerce administration,
acquire a business license and start operations”.

3. Paragraph 1 of Article 6 shall be amended as: “An equity joint venture
shall have a board of directors; the number of the directors thereof from each
party and the composition of the board shall be stipulated in the contract and
articles of association after consultation among the parties to the venture;
such directors shall be appointed and replaced by the relevant parties. The
chairman and the vice-chairman (vice-chairmen) shall be determined through
consultation by the parties to the venture or elected by the board of
directors. If the Chinese side or the foreign side assumes the office of the
chairman, the other side shall assume the office(s) of the vice-chairman
(vice-chairmen). The board of directors shall decide on important issues
concerning the joint venture on the principle of equlity and mutual benefit.”

4.Paragraph 2 of Article 7 shall be amended as: “An equity joint venture
may, in accordance with provisions of the relevant laws and administrative
rules and regulations of the state on taxation, enjoy preferential treatment
for reduction of or exemption from taxes.”

5. Paragraph 1 of Article 8 shall be amended as: “An equity joint venture
shall, on the strength of its business license, open a foreign exchange account
with a bank or any other financial institution which is permitted by the state
agency for foreign exchange control to handle foreign exchange transactions.”

Paragraph 1 of Article 10 shall be amended as: “The net profit which a
foreign joint venturer receives as its share after performing its obligations
under the laws, and the agreements or the contract, the funds it receives upon
the expiration of the venture’s term of operation or its early termination, and
its other funds may be remitted abroad in accordance with foreign exchange
control regulations and in the currency or currencies specified in the contract
concerning the equity joint venture.”

Article 11 shall be amended as: “The wages, salaries or other legitimate
income earned by a foreign worker or staff member of an equity joint venture,
after payment of the individual income tax under the tax laws of the People’s
Republic of China, may be remitted abroad in accordance with foreign exchange
control regulations.”

6. Article 12 shall be amended as: “Based on different lines of trade and
different circumstances, arrangements for the duration of equity joint ventures
may be made differently through agreement by the parties to the venture.
Equity joint ventures engaged in certain lines of trade shall specify their
duration in the contracts, while equity joint ventures engaged in certain other
lines of trade may choose to or not to specify their duration in the contract.
Where an equity joint venture has had its duration specified and the parties
to the venture agree to extend the duration, the venture shall file an
application for the purpose with the examination and approval authorities six
months before its expiration. The examination and approval authorities shall,
within one month after receipt of the application, decide on its approval or
disapproval.”

7. Article 13 shall be amended as: “In case of heavy losses, failure of a
party to perform its obligations under the contract and the articles of
association, or force majeure etc., the parties to the joint venture may
terminate the contract through their consultation and agreement, subject to
approval by the examination and approval authorities and to registration with
the state’s competent department in charge of industry and commerce
administration. In case of losses caused by a breach of contract, the financial
responsibility shall be borne by the party that has breached the contract.”

This Decision shall enter into force as of the date of promulgation.

The Law of the People’s Republic of China on Chinese-Foreign Equity Joint
Ventures shall be republished after being correspondingly amended according to
this Decision.?

PROVISIONS CONCERNING REDUCTION OF AND EXEMPTION FROM ENTERPRISE INCOME TAX AND CONSOLIDATED INDUSTRIAL AND COMMERCIAL TAX FOR THE ENCOURAGEMENT OF FOREIGN BUSINESSMEN TO INVEST IN THE SHANGHAI PUDONG NEW ZONE

Category	TAXATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1990-09-11	Effective Date	1990-10-01

Provisions Concerning Reduction of and Exemption From Enterprise Income Tax and Consolidated Industrial and Commercial Tax for the Encouragement of Foreign Businessmen to Invest in the Shanghai Pudong New Zone

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

the Ministry of Finance on September 11, 1990)

Article 1 These Provisions are formulated in order to assist Shanghai
Pudong New Zone (hereinafter referred to as “Pudong New Zone”) in expanding
foreign economic cooperation and technological exchange, absorbing foreign
capital, introducing advanced technology, and speeding up development and
construction.

Article 2 Production-oriented enterprises organized as Chinese-foreign
equity joint ventures, Chinese-foreign contractual joint ventures and
foreign-capital enterprises established in Pudong New Zone shall be subject
to enterprise income tax at the reduced tax rate of 15% on income derived from
production and business operations and on other income. Upon the filing of an
application with and approval of the tax authorities, an exemption from income
tax in the first and second years, commencing the first profit-making year,
and a 50% reduction of income tax from the third through the fifth years shall
be granted to those enterprises scheduled to operate for a period of 10 years
or more.

Article 3 After the period of enterprise income tax reduction and
exemption has expired in accordance with the provisions of the State,
export-oriented enterprises may, for any year in which the output value of the
export products of the enterprise amounts to 70% or more of the output value
of the products of the enterprise for that year, pay enterprise income tax at
a reduced tax rate of 10%. After the period of enterprise income tax reduction
and exemption has expired in accordance with the provisions of the State, the
payment of enterprise income tax at a rate reduced by one half may be extended
for a period of 3 years for advanced technology enterprises.

Article 4 Enterprises with foreign investment that are engaged in the
operation of such energy resources and communications construction projects
as airport, harbour, railway, highway, and power station, shall be subject to
enterprise income tax at a reduced tax rate of 15%. Upon the filing of an
application with and approval of the tax authorities, an exemption from income
tax from the first through fifth years, commencing the first profit-making
year, and a 50% reduction of income tax from the sixth through the tenth years
shall be granted to those enterprises scheduled to operate for a period of 15
years or more.

Article 5 Enterprises with foreign investment, that are engaged in
infrastructure construction connected with certain projects on tracts of land,
upon approval by the tax authorities of an application filed by the enterprise,
shall be given preferential treatment in taxation, in accordance with Article
2 of these Provisions concerning production-oriented enterprises.

Article 6 With respect to foreign financial institutions such as foreign
capital banks, branch offices of foreign banks, banks with Chinese-foreign
joint capital, and finance companies that are scheduled to operate for a
period of 10 years or more, if the paid-in capital of foreign investors or the
capital granted by the head office to the branch office for business
operations exceeds 10 million U.S. dollars, upon approval by the tax
authorities of an application, the enterprise income tax shall be levied on
income derived from business operations at a reduced tax rate of 15%, and
shall subject to an exemption in the first year, commencing the first
profit-making year, and a 50% reduction in the second and third years.

Article 7 Foreign financial institutions such as foreign capital banks,
branch offices of foreign banks, banks with Chinese-foreign joint capital,
and finance companies shall be subject to consolidated industrial and
commercial tax at a tax rate of 3% on their income derived from loan
transactions, and a tax rate of 5% on their income derived from other
financial transactions.

Article 8 A foreign investor that reinvests its share of profit
obtained from an enterprise in the same enterprise or in other enterprises
with foreign investment, or uses the aforesaid share of profit for setting up
a new enterprise with foreign investment, where the period of operation is
not less than 5 years, shall be refunded 40% of the amount of income tax
paid on the reinvested portion; if the reinvested amount is used to set up
export-oriented enterprises or advanced technology enterprises, where the
period of operation is not less than 5 years, the entire amount of income
tax paid on the reinvested portion shall be refunded.

Article 9 Where a foreign investor to a Chinese-foreign equity joint
venture remits its share of profit out of China, the amount remitted shall
be exempt from income tax.

Article 10 Foreign investors having no establishments in China but
receiving dividends, interest, rentals, royalties, and other income from
sources in the Pudong New Zone shall be subject to income tax at a reduced
tax rate of 10%, with the exception of those that are exempt from income tax
in accordance with the law. Where investors which provide funds or equipment
on preferential terms, or transfer advanced technology, and need to be granted
more preferential treatment in the form of income tax reduction or exemption,
the case shall be decided by the Shanghai Municipal People’s Government.

Article 11 Export products manufactured by enterprises with foreign
investment, with the exception of crude oil, refined oil and the products
otherwise specified by the State, shall be exempt from consolidated
industrial and commercial tax.

Article 12 Building materials, production and management equipment and
spare parts, means of transport, office supplies required for own use, as
well as raw materials and auxiliary materials required for production,
imported by enterprises with foreign investment, shall be exempt from
consolidated industrial and commercial tax.

Where enterprises with foreign investment use the tax-free imported raw
materials, spare parts, components and packaging materials for processing
products, which are then sold on the domestic market, consolidated industrial
and commercial tax shall be made up on the imported materials and components
used for processing of such products.

Article 13 Reasonable quantities of settling-in articles and means of
transport personally brought in by foreign personnel who are working or
reside in enterprises located in Pudong New Zone, shall be exempt from
consolidated industrial and commercial tax.

Article 14 The Shanghai Municipal People’s Government shall decide
whether or not the preferential treatment shall be granted to enterprises
with foreign investment in respect of local income tax imposed on them, or
in respect of real estate tax imposed on the new houses which have been
built or bought by them for their own use.

Article 15 For enterprises established or projects launched with
investment by companies, enterprises and other economic organizations as
well as individuals from Hong Kong, Macao and Taiwan, matters shall be
handled by taking reference to these Provisions.

Article 16 The State Taxation Bureau shall be responsible for
interpreting these Provisions.

Article 17 These Provisions shall go into effect as of October 1, 1990.

ENTRY AND EXIT ANIMAL AND PLANT QUARANTINE

Category	AGRICULTURE, FORESTRY AND METEOROLOGY	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	In Force
Date of Promulgation	1991-10-30	Effective Date	1992-04-01

Law of the People’s Republic of China on the Entry and Exit Animal and Plant Quarantine

Contents
Chapter I  General Provisions
Chapter II  Entry Quarantine
Chapter III  Exit Quarantine
Chapter IV  Transit Quarantine
Chapter V  Quarantine of Materials Carried by Passengers or by Post
Chapter VI  Quarantine of Means of Transport
Chapter VII  Legal Responsibility
Chapter VIII  Supplementary Provisions

(Adopted at the 22nd Meeting of the Standing Committee of the Seventh

National People’s Congress on October 30, 1991, promulgated by Order No. 53
of the President of the People’s Republic of China on October 30, 1991 and
effective as of April 1, 1992)
Contents

Chapter I General Provisions

Chapter II Entry Quarantine

Chapter III Exit Quarantine

Chapter IV Transit Quarantine

Chapter V Quarantine of Materials Carried by Passengers or by Post

Chapter VI Quarantine of Means of Transport

Chapter VII Legal Responsibility

Chapter VIII Supplementary Provisions
Chapter I General Provisions

Article 1 This Law is formulated for the purpose of preventing
infectious or parasitic diseases of animals, diseases, insect pests and weeds
dangerous to plants, and other harmful organisms (hereinafter referred to,
for short, as diseases, insect pests and harmful organisms) from spreading
into or out of the country, protecting the production of agriculture,
forestry, animal husbandry and fishery as well as human health, and promoting
the development of foreign economic relations and trade.

Article 2 Animals and plants, their products and other quarantine
objects, containers and packaging materials used for carrying animals and
plants, their products or other quarantine objects, as well as means of
transport from animal or plant epidemic areas shall, on entry or exit, be
subject to quarantine inspection in accordance with this Law.

Article 3 An animal and plant quarantine department shall be instituted
under the State Council (hereinafter referred to, for short, as the State
animal and plant quarantine department), which shall conduct a unified
administration of the entry and exit animal and plant quarantine in the whole
country. Port animal and plant quarantine offices set up by the State animal
and plant quarantine department at ports open to the outside world and at
places busy with entry and exit animal and plant quarantine shall, in
accordance with this Law, carry out entry and exit animal and plant
quarantine.

The department in charge of the quarantine of animal products leaving the
country for trade purposes shall be designated by the State Council as it
deems appropriate.

The department of agriculture administration under the State Council
shall be in charge of the entry and exit animal and plant quarantine in the
whole country.

Article 4 A port animal and plant quarantine office may exercise the
following functions and powers when performing quarantine inspection:

(1) Embarking on a ship, a vehicle or an airplane to perform quarantine
under this Law;

(2) Entering a seaport, an airport, a railway or coach station, a post
office or a site where quarantine objects are stored, processed, bred or
cultivated, to perform quarantine inspection and collect samples according to
relevant regulations;

(3) Entering a site relating to production or storage according to the
needs of quarantine, to carry out epidemic monitoring and investigations or
quarantine supervision and control;

(4) Consulting, making copies of or excerpts from operational diaries,
bills of lading, contracts, invoices or other documents relating to the
quarantine objects.

Article 5 The State shall prohibit the following objects from entering
the country:

(1) Pathogenic micro-organisms (including seed cultures of bacteria and
viruses) of animals and plants, insect pests and other harmful organisms;

(2) Relevant animals and plants, their products and other quarantine
objects from countries or regions with prevalent epidemic animal or plant
diseases;

(3) Animal carcasses; and

(4) Soil.

When a port animal and plant quarantine office discovers any objects
prohibited from entering the country as prescribed in the preceding
paragraph, such objects shall be returned or destroyed.

Whoever, because of special needs such as scientific research, imports
any objects prohibited from entering the country as prescribed in the first
paragraph of this Article, must submit an application in advance, which shall
be subject to the approval by the State animal and plant quarantine
department.

The catalogues of objects prohibited from entering the country as
prescribed in (2) of the first paragraph of this Article shall be worked out
and announced by the department of agriculture administration under the State
Council.

Article 6 In the event that a serious animal or plant epidemic occurs
abroad and is liable to spread into the country, the State Council shall
adopt emergent preventive measures and may, when necessary, issue orders to
prohibit means of transport from animal or plant epidemic areas from entering
the country or to blockade the relevant ports; the local people’s governments
in areas threatened by the animal or plant epidemic as well as the port
animal and plant quarantine offices concerned shall immediately take
emergency measures, and, at the same time, report to the people’s governments
at higher levels and the State animal and plant quarantine department.

The departments of posts and telecommunications and departments of
transportation shall give priority to transmitting or transporting reports
concerning serious animal or plant epidemic or materials to be sent for
quarantine inspection.

Article 7 The State animal and plant quarantine department and port
animal and plant quarantine offices shall practise a quarantine supervision
system in relation to the procedures in the production, processing and
storage of animals and plants and their products for entry or exit.

Article 8 When a port animal and plant quarantine office is carrying out
its tasks of quarantine inspection in seaports, airports, railway or coach
stations, or post offices, relevant departments such as the Customs,
departments of communications, civil aviation, or railways, and postal
services shall coordinate therewith.

Article 9 Any quarantine functionary of an animal and plant quarantine
organ must be devoted to his or her duties and enforce the law impartially.

No unit or individual may obstruct a quarantine functionary of an animal
and plant quarantine organ from carrying out his or her duties according to
law.
Chapter II Entry Quarantine

Article 10 Whoever imports animals, animal products, plant seeds,
seedlings or other propagating materials must submit an application in
advance and go through the formalities for examination and approval of
quarantine inspection.

Article 11 Whoever imports animals and plants, their products or other
quarantine objects through trade, scientific and technological cooperation,
exchanges, donations or aid shall specify in the contracts or agreements the
requirements for quarantine inspection prescribed by China’s law and the
necessity of quarantine certificates issued by the animal and plant
quarantine department under the government of the exporting country or region
being appended therewith.

Article 12 The owner or his or her agent shall apply to the port animal
and plant quarantine office at the port of entry for quarantine inspection of
the animals and plants, their products or other quarantine objects, before or
on their entry, on the strength of documents such as the quarantine
certificates issued by the exporting country or region and the trade
contracts.

Article 13 On arrival at a port of a means of transport for carrying
animals, the port animal and plant quarantine office shall for the prevention
of epidemics adopt onthespot preventive measures and conduct disinfection of
persons embarking on or disembarking from the means of transport or having
contacts with the animals, the means of transport for carrying the animals
and the contaminated fields.

Article 14 Import animals and plants, their products and other
quarantine objects shall be quarantined at the port of entry; without consent
of the port animal and plant quarantine office, the same shall not be
unloaded from the means of transport.

The import animals and plants that need to be placed in isolation for
quarantine inspection shall be quarantined in an isolation court designated
by the port animal and plant quarantine office.

By reason of limited conditions at the port of entry, the State animal
and plant quarantine department may decide to have the animals and plants,
their products or other quarantine objects transported to a designated place
for quarantine inspection. In the course of transportation, loading and
unloading, the owner or his or her agent shall take preventive measures
against epidemics. Designated places for storage, processing, isolated
feeding or planting shall conform to the provisions on animal and plant
quarantine and epidemic prevention.

Article 15 The import animals and plants, their products or other
quarantine objects that pass the quarantine inspection are allowed to enter
the country; the Customs shall, after verification, release the same on the
strength of the quarantine certificates issued, or the stamps on the customs
declaration forms affixed, by the port animal and plant quarantine office.

In respect of the import animals and plants, their products or other
quarantine objects that need to be transferred away from a customs
surveillance zone for quarantine inspection, the Customs shall, after
verification, release the same on the strength of the Quarantine Transference
Notice issued by the port animal and plant quarantine office.

Article 16 In respect of the import animals that fail in the quarantine
inspection, the port animal and plant quarantine office shall issue the
Quarantine Treatment Notice notifying the owner or his or her agent to deal
with the said animals in either of the following manners:

(1) The animals that are found suffering from Class A infectious or
parasitic diseases, shall, together with all the other in-contact animals,
be returned or slaughtered with their carcasses destroyed; or

(2) The animals that are found suffering from Class B infectious or
parasitic diseases shall be returned or slaughtered; and the other incontact
animals shall be placed in an isolation camp or any other designated place
for observation.

In respect of import animal products or other quarantine objects that
fail in the quarantine inspection, the port animal and plant quarantine
office shall issue the Quarantine Treatment Notice notifying the owner or his
or her agent to conduct such treatments as disinfection and disinfestation,
returning or destruction. The products or objects that pass the quarantine
inspection after a treatment of disinfection and disinfestation are allowed
to enter the country.

Article 17 On discovering through quarantine inspection that import
plants, plant products or other quarantine objects are contaminated with
diseases, pests or weeds dangerous to plants, the port animal and plant
quarantine office shall issue the Quarantine Treatment Notice notifying the
owner or his or her agent to conduct such treatments as disinfection and
disinfestation, returning or destruction. Those that pass the quarantine
inspection after a treatment of disinfection and disinfestation are allowed
to enter the country.

Article 18 The catalogues of the Class A and Class B infectious or
parasitic diseases of animals specified in Article 16, paragraph 1, Items 1
and 2 of this Law and the catalogues of the diseases, pests or weeds
dangerous to plants specified in Article 17 of this Law shall be worked out
and announced by the department of agriculture administration under the State
Council.

Article 19 On discovering through quarantine inspection that import
animals and plants, their products or other quarantine objects are
contaminated with diseases, insect pests or harmful organisms which are not
covered by the catalogues specified in Article 18 of this Law but are
extremely harmful to agriculture, forestry, animal husbandry and fishery, the
port animal and plant quarantine office shall, in accordance with relevant
regulations of the department of agriculture administration under the State
Council, notify the owner or his or her agent to conduct such treatments as
disinfection and disinfestation, returning or destruction. Those that pass
the quarantine inspection after a treatment of disinfection and
disinfestation are allowed to enter the country.
Chapter III Exit Quarantine

Article 20 The owner, or his or her agent, of exit animals and plants,
their products or other quarantine objects shall, before their exit, submit
an application for quarantine inspection to the port animal and plant
quarantine office.

The animals that need to be placed in isolation for quarantine inspection
before exit shall be quarantined in an isolation court designated by the port
animal and plant quarantine office.

Article 21 Export animals and plants, their products or other quarantine
objects shall be quarantined by the port animal and plant quarantine office,
and those that pass the quarantine inspection or conform to the standards
after a treatment of disinfection and disinfestation are allowed to leave the
country. The Customs shall, after verification, release the same on the
strength of the quarantine certificates issued, or the stamps on the customs
declaration forms affixed, by the port animal and plant quarantine office.
Those that fail in the quarantine inspection and are unable to be treated by
disinfection and disinfestation with effective methods shall not be allowed
to leave the country.

Article 22 Where the animals and plants, their products or other
quarantine objects that pass the quarantine inspection are involved in any of
the following circumstances, the owner or his or her agent shall re-apply for
quarantine inspection:

(1) Where the importing country or region is changed, and the changed
importing country or region has different requirements for quarantine
inspection;

(2) Where the packings are changed or the unpacked products or objects
are subsequently packed;

(3) Where the stipulated valid period of quarantine is exceeded.
Chapter IV Transit Quarantine

Article 23 Whoever requests a transit of animals through the Chinese
territory must obtain in advance and through consultation the consent of
China’s State animal and plant quarantine department and the transit must be
conducted through the designated port and route.

The means of transport, containers, feeding stuffs and bedding materials
for the animals in transit must all conform to China’s regulations on animal
and plant quarantine.

Article 24 The transit of animals and plants, their products or other
quarantine objects requires the consignor or the escort to submit at the port
of entry the bills of lading and the quarantine certificates issued by the
animal and plant quarantine department under the government of the exporting
country or region to the port animal and plant quarantine office for
quarantine inspection. No further quarantine inspection is needed at the port
of exit.

Article 25 The transit animals that pass the quarantine inspection are
allowed to pass through the country; and in case any infectious or parasitic
disease of animals specified in the catalogues as stipulated in Article 18 of
this Law is discovered, the entire flock of the animals shall not be allowed
to transit.

The transit animals’ feeding stuffs that are contaminated with diseases,
insect pests or harmful organisms shall be subjected to such treatments as
disinfection and disinfestation, denial of transit or destruction.

The carcasses, excrements, bedding materials and other wastes of the
transit animals must be disposed of in accordance with the regulations of the
animal and plant quarantine department, and may not be cast away without
authorization.

Article 26 The port animal and plant quarantine office shall examine the
means of transport and the packings, in respect of the transit plants, animal
and plant products or other quarantine objects, which are allowed to transit
through the country if they pass the quarantine inspection; in case any
disease, insect pest or harmful organism specified in the catalogues as
stipulated in Article 18 of this Law is discovered, it shall be subjected to
a treatment of disinfection and disinfestation or denial of transit.

Article 27 Animals and plants, their products or other quarantine
objects, in the course of their transit, may not be unpacked or discharged
from the means of transport without the approval of the animal and plant
quarantine organ.
Chapter V Quarantine of Materials Carried by Passengers or by Post

Article 28 Whoever intends to carry or post plant seeds, seedlings or
other propagating materials into the country must submit an application in
advance and go through the formalities for examination and approval of
quarantine inspection.

Article 29 The catalogues of the animals and plants, their products and
other quarantine objects that are not allowed to be carried or posted into
the country shall be worked out and announced by the department of
agriculture administration under the State Council.

In case any animals or plants, animal or plant products or other
quarantine objects specified in the catalogues mentioned in the preceding
paragraph are carried or posted into the country, they shall either be
returned or destroyed.

Article 30 Whoever enters the country carrying animals or plants, animal
or plant products or other quarantine objects which are not included in the
catalogues specified in Article 29 of this Law shall declare them to the
Customs at the port of entry and accept the quarantine inspection by the port
animal and plant quarantine office.

Whoever carries animals into the country must hold such papers as
quarantine certificates issued by the exporting country or region.

Article 31 The port animal and plant quarantine office shall, in respect
of the animals and plants, their products or other quarantine objects not
included in the catalogues specified in Article 29 of this Law, carry out
quarantine inspection at the International Postage Exchange Bureau, or, when
necessary, take the same back to the port animal and plant quarantine office
for quarantine inspection; and the same shall not be transported or delivered
without undergoing quarantine inspection.

Article 32 Animals or plants, animal or plant products or other
quarantine objects that enter the country by post shall be released if they
pass the quarantine inspection or conform to the standards after the
treatment of disinfection and disinfestation; those that fail in quarantine
inspection and are unable to be treated by disinfection and disinfestation
with effective methods shall be returned or destroyed, and the Quarantine
Treatment Notice shall be issued.

Article 33 The animals or plants, animal or plant products or other
quarantine objects that are carried or posted out of the country shall be
quarantined by the port animal and plant quarantine office, upon request by
the owner thereof.
Chapter VI Quarantine of Means of Transport

Article 34 Ships, airplanes or trains from the animal or plant epidemic
areas shall, upon their arrival at the port, be quarantined by the port
animal and plant quarantine office. In the event any disease, insect pest or
harmful organism specified in the catalogues mentioned in Article 18 of this
Law is discovered, the cargoes shall be subjected to such treatments as
prohibition from discharge from the means of transport,disinfection and
disinfestation, sealing up or destruction.

Article 35 Vehicles entering the country shall be disinfected for
epidemic prevention by the port animal and plant quarantine office.

Article 36 The swills and wastes of animal or plant nature on the means
of transport entering or leaving the country shall be disposed of in
accordance with the regulations of the port animal and plant quarantine
office and may not be cast away without authorization.

Article 37 The means of transport carrying export animals and plants,
their products or other quarantine objects shall conform to the regulations
on animal and plant quarantine and epidemic prevention.

Article 38 The old and disused ships entering the country for
disassembling purposes shall be quarantined by the port animal and plant
quarantine office. In the event that diseases, insect pests or harmful
organisms specified in the catalogues mentioned in Article 18 of this Law are
discovered, the said ships shall be subjected to a treatment of disinfection
and disinfestation.
Chapter VII Legal Responsibility

Article 39 Whoever, in violation of this Law, commits any of the
following acts shall be fined by the port animal and plant quarantine office:

(1) Failing to apply for quarantine inspection or failing to go through
the formalities for examination and approval of quarantine inspection in
accordance with the law;

(2) Unloading animals or plants, animal or plant products or other
quarantine objects entering the country from the means of transport or
transporting or delivering the same, without permission of the port animal
and plant quarantine office;

(3) Transferring or disposing of, without authorization, the animals or
plants subjected to quarantine inspection in an isolation court designated by
the port animal and plant quarantine office.

Article 40 Where the animals or plants, animal or plant products or
other quarantine objects declared for quarantine inspection do not conform to
the actual conditions, the applicant shall be fined by the port animal and
plant quarantine office; and the quarantine certificates already obtained
shall be revoked.

Article 41 Whoever, in violation of this Law and without authorization,
unpacks the packings of transit animals or plants, animal or plant products
or other quarantine objects, discharges transit animals or plants, animal or
plant products or other quarantine objects from the means of transport, or
casts away transit animals’ carcasses, excrements, bedding materials or other
wastes,shall be fined by the port animal and plant quarantine office.

Article 42 Whoever violates the provisions of this Law and causes
a serious animal or plant epidemic shall be investigated for criminal
responsibility by applying mutatis mutandis the provisions of Article 178 of
the Criminal Law.

Article 43 Whoever forges or alters the quarantine certificates, stamps,
marks or seals shall be investigated for criminal responsibility in
accordance with the provisions of Article 167 of the Criminal Law.

Article 44 If a party is not satisfied with the decision on punishment
made by an animal and plant quarantine organ, it may, within 15 days after
receipt of the notification of the punishment, apply for reconsideration to
the organ at the next higher level over the organ that has made the decision
on punishment; the party may also directly bring a suit in a people’s court
within 15 days after receipt of the notification of the punishment.

The reconsideration organ shall, within 60 days after receipt of the
application for reconsideration, make a reconsideration decision. If the
party is not satisfied with the reconsideration decision, it may, within 15
days after receipt of the reconsideration decision, bring a suit in a
people’s court. If the reconsideration organ fails to make a reconsideration
decision within the prescribed period, the party may bring a suit within 15
days after the expiration of the period for reconsideration.

If the party neither applies for reconsideration within the time limit,
nor brings a suit in a people’s court, nor complies with the decision on
punishment, the organ that has made the decision on punishment may apply to
a people’s court for compulsory execution.

Article 45 Where a quarantine functionary of an animal and plant
quarantine organ who abuses his or her power, practises favouritism or
embezzlement, forges a quarantine result, or neglects his or her duty or
delays the performance of quarantine inspection and the issuance of
certificates, criminal responsibility shall be investigated according to law
if the offence constitutes a crime; if the offence does not constitute a
crime, the offender shall be subjected to administrative sanctions.
Chapter VIII Supplementary Provisions

Article 46 As used in this Law, the following terms respectively mean:

(1) “Animals” mean the live animals, whether domesticated or wild, such
as livestock, poultry, beasts, snakes, tortoises, fishes, shrimps and prawns,
crabs, shellfishes, silkworms and bees;

(2) “Animal products” mean the nonprocessed products or the processed
products, from animals, still liable to spread epidemic diseases, such as raw
hides, hairs, meats, viscerae, fat and grease, aquatic animal products, dairy
products, eggs, blood, semens, embryos, bones, hoofs and horns;

(3) “Plants” mean cultivated plants, wild plants, their seeds and
seedlings and other propagating materials;

(4) “Plant products” mean the non-processed products or the processed
products, from plants, still liable to spread diseases, insect pests or
harmful organisms, such as grain, beans, cotton, oils, fibres, tobacco,
kernel, dried fruits, fresh fruits, vegetables, raw medicinal herbs, logs and
feeding stuffs;

(5) “Other quarantine objects” mean animal vaccine, blood serum,
diagnostic reagents, wastes of animal or plant nature.

Article 47 If provisions of this Law contravene those of the
international treaties concerning animal and plant quarantine which the
People’s Republic of China has concluded or to which China is a party, the
provisions of the international treaties concerned shall prevail, with the
exception of the treaty clauses on which the People’s Republic of China has
declared reservations.

Article 48 &n

REGULATIONS ON ENCOURAGEMENT OF FOREIGN INVESTMENT OF HUNAN PROVINCE

Regulations on Encouragement of Foreign Investment of Hunan Province

(Effective Date:1992.02.15–Ineffective Date:)

Article 1. With a view to improve investment environment, absorb more investment from foreign corporations, enterprises and other economic organizations
and individuals (hereinafter referred to as foreign investors) and promote the province’s economic development, these regulations
are formulated in accordance with relevant laws and administrative regulations and with reference to the concrete conditions of the
province.

Article 2. These regulations are to be put into effect by governments at the county level or higher.

The foreign economic relations and trade departments of governments at the county level or higher are in charge of the work of absorbing
foreign investment in areas under their jurisdiction. All departments concerned including those of planning, economic, taxation,
industrial and commerce administration, banks, foreign exchange control, customs, commodity inspections and insurance shall try their
best to help promote such a work within their assigned duties.

Article 3. Apart from State-formulated preferential treatments, foreign investors shall enjoy additional preferences in the province in accordance
with these regulations and their legal rights and interests shall be protected by Chinese law.

Foreign investors in the province shall abide by Chinese laws.

Article 4. Foreign investors may invest in all parts of the province.

Foreign investments are especially encouraged in:

economic and technical development zones and high and new technological development zones;

basic industries and infrastructure such as energy, communications and raw materials and development-oriented projects in agriculture,
forestry and animal husbandry in line with the national industrial policy;

export-oriented and technically advanced enterprises and technical renovations of existing productive firms.

Article 5. Foreign investors may take the following forms in their investment:

a. To establish fully foreign-funded enterprises;

b. To establish Sino-foreign joint-equity or Sino-foreign cooperative enterprises;

c. To engage in processing and assembling with customer’s materials and parts and compensatory trade; and

d. To engage in State-permitted land development, enterprise leasing operation and other forms.

Article 6. Foreign investors may contribute their respective investments in cash, kind, industrial property rights, proprietary technology and
other property rights.

Article 7. Formalities for foreign investment application shall be simplified and such application shall be examined and approved timely. The
authority and procedures for such examination and approval are to be defined by the provincial people’s government.

Article 8. Foreign-funded, Sino-foreign joint-equity and Sino-foreign cooperative enterprises (hereinafter referred to as foreign-funded enterprises)
which comply with Chinese regulations for legal person, upon approval by administrations of industry and commerce, shall obtain the
status of Chinese legal person.

Article 9. Foreign investors may appoint their relatives or friends in China as their agents.

Foreign investors may recommend that their relatives or friends in China be employed in the enterprises where they invest.

Article 10. Relevant departments shall preferentially arrange water and power supply, transport and telecommunications facilities needed by foreign-funded
enterprises for operation and charge them on a par with local State-owned enterprises. Fuel and raw materials which need to be supplied
by the Chinese partner will be preferentially provided by goods and materials departments.

Article 11. Chinese partner of Sino-foreign joint-equity and Sino-foreign cooperative enterprises may apply for bank loans to make up for the
deficiency between its pledged investment and self-raised funds.

Short-term circulating loans and other necessary credits needed by foreign-funded enterprises in the process of production and circulation,
upon approval banks, may be extended in priority.

Article 12. Machines, equipment, parts, vehicles for productive purposes and other goods and materials imported by foreign-funded enterprises
as investment are exempted from Customs duty and consolidated industrial and commercial tax in accordance with Chinese regulations.

Machinery, vehicles for productive purposes, raw materials, fuel, loose parts, parts, elements and components and supplementary parts
imported by foreign-funded enterprises to fulfill product export contracts are exempted from import licences, Customs duty and consolidated
industrial and commercial tax.

Apart from those controlled by the State, export products produced by foreign-funded enterprises are exempted from Customs duty and
consolidated industrial and commercial tax.

Article 13. Productive foreign-funded enterprises with operational terms of more than ten years are exempted from local taxes for ten years and
non-productive ones for five years.

Enterprises engaged in energy, transport infrastructure and raw materials and enterprises established in economic and technical development
zones and high and new technological development zones are exempted from local taxes.

Article 14. Export-oriented enterprises after the period of exemption of income tax in accordance with Chinese regulations, whose exports account
from more than 70% of the total output value in the year, may pay the enterprise income tax at half the going rate.

Technically advanced enterprises after the period of exemption of enterprise income tax in accordance with Chinese regulations may
enjoy reduction of half of their enterprise income tax in the ensuing three years.

Article 15. Foreign-funded enterprises which invest in agriculture, forestry and animal husbandry or in less-developed outlying districts, after
the period of exemption of enterprise income tax in accordance with Chinese regulations, upon approval by national taxation departments,
may continue to enjoy a 15%-30% tax reduction for another ten years.

Article 16. Foreign investors reinvest their profits made from the venture involving their investment to directly boost its registered capital
or start other enterprises for an operational term of no less than five years, upon application by the investors and approval by
the taxation departments, shall be returned 40% of the income tax payment on the amount reinvested. Those who reinvest in export-oriented
or technically advanced enterprises for an operational period of five years or more, upon application by the investors and approval
by taxation departments, shall be returned all income tax payment on the amount reinvested. Those who withdraw before the five years
term shall hand in the returned income tax.

Article 17. Vehicles needed to be imported by foreign investors into the province for operations of processing with customer’s raw materials
are exempted from import licences; machinery for compensatory trade is exempted from import tax.

Article 18. Export-oriented and technically advanced foreign-funded enterprises are exempted from land utility fees for five to ten years as
of the date of establishment and are charged at half the rates after the period of exemption.

Foreign-funded enterprises engaged in agriculture and animal husbandry are exempted from land utility fees for ten to fifteen years
as of the date of approval on use of the land; enterprises in forestry, for twenty to thirty years.

Article 19. Export-oriented and technically advanced foreign-funded enterprises, except for paying labor insurance premiums, welfare expenses
and subsidiary housing fund for Chinese workers, are exempted from payment of other State subsidies for Chinese workers.

Article 20. Foreign-funded enterprises which need to transfer forex into or out of the enterprises may do so through the provincial forex swapping
center. The forex transferred into the enterprises may be used to repay capital with interest, buy equipment and raw materials, remit
profits out of the country and pay the legitimate income of foreign staff.

Forex may be swapped among foreign-funded enterprises or between foreign-funded and Chinese enterprises under the supervision of forex
control departments.

Article 21. Products of foreign-funded enterprises as imports-substitutes to be sold in China may be paid in forex upon approval.

Sino-foreign joint-equity and Sino-foreign cooperative productive enterprises, upon approval, may purchase Chinese products for export
to balance their forex earnings and expenditures in the year in accordance with Chinese regulations.

Article 22. Foreign-funded enterprises have the right to work out their production and operational plans, collect and use funds, buy capital
goods and market their products within approval contracts.

Foreign-funded enterprises may, in accordance with the need of production and operations as well as with regulations of the State
and the provincial people’s government, independently determine the structure of offices and management, employment and dismissal
of staff, commendation and punishment, standards and forms of wages, bonuses and subsidies.

Article 23. Boards of directors or joint administrative organizations of foreign-funded enterprises exercise their authority in accordance with
law. Chinese staff on the boards of directors or joint administrative organizations of Sino-foreign joint ventures or foreign-funded
cooperative enterprises shall not be changed at will in their terms of office.

Article 24. Foreign-funded enterprises have the right to own, use, benefit from and dispose of the property of the enterprises in question in
accordance with law.

Article 25. Foreign investors may remit overseas the profits and other legal income from their investment in the province in accordance with
law.

Article 26. No organization shall be allowed to apportion expenses among foreign-funded enterprises or collect fees from them apart from taxes
and charges sanctioned by laws and regulations. Foreign-funded enterprises may refuse to pay charges outside of laws and regulations.

Article 27. Those (excluding government staff who engage in attracting foreign funds) who introduce foreign investors to the province with success
will be awarded a bonus proportionate to the amount of foreign investment. Detailed rules are to be formulated by the provincial
people’s government.

Article 28. Foreign investors or foreign-funded enterprises have the right to appeal to people’s governments and relevant departments against
acts that encroach on their legal rights and interests or take legal proceedings to people’s courts against such acts.

Article 29. For investments in the province by compatriots from Hong Kong, Macao and Taiwan and overseas Chinese, these regulations serve as
a reference, in addition to “Regulations on Encouraging Investment by Overseas Chinese and Hong Kong and Macao Compatriots” and “Regulations
on Encouraging Investment by Taiwan Compatriots” promulgated by the State Council.

Article 30. These regulations shall come into effect as of the date of promulgation.

These regulations shall apply where previous regulations of the province are not in accord with these regulations.

DEPUTIES TO THE NATIONAL PEOPLE’S CONGRESS AND TO THE LOCAL PEOPLE’S CONGRESSES AT VARIOUS LEVELS

Law of the PRC on Deputies to the National People’s Congress and to the Local People’s Congresses at Various Levels

(Adopted at the Fifth Session of the Seventh National People’s Congress on April 3, 1992, promulgated by Order No. 56 of the President
of the People’s Republic of China on April 3, 1992, and effective as of the same date)

CHAPTER I GENERAL PROVISIONS

CHAPTER II WORK OF DEPUTIES DURING A SESSION OF THE PEOPLE’S CONGRESS AT THE CORRESPONDING LEVEL

CHAPTER III ACTIVITIES OF DEPUTIES WHEN THE PEOPLE’S CONGRESS AT THE CORRESPONDING LEVEL IS NOT IN SESSION

CHAPTER IV GUARANTEES FOR THE PERFORMANCE OF FUNCTIONS AS DEPUTIES CHAPTER V SUSPENSION OF PERFORMANCE OF FUNCTIONS AS
A DEPUTY AND DISQUALIFICATION OF A DEPUTY

CHAPTER VI SUPPLEMENTARY PROVISIONS

Article 1 This Law is formulated in accordance with the Constitution to ensure that deputies to the National People’s Congress and deputies
to the local people’s congresses at various levels exercise their functions and powers, fulfill their duties and play their
roles, according to law and in their capacity as deputies.

Article 2 Deputies to the National People’s Congress and to the local people’s congresses at various levels shall be elected according
to law.

Deputies to the National People’s Congress are component members of the highest organ of State power, and deputies to the
local people’s congresses at various levels are component members of the organs of State power at the corresponding levels.

Deputies to the National People’s Congress and to the local people’s congresses at various levels shall, representing the interests
and will of the people, participate in the exercise of State power in accordance with the functions and powers vested in the
people’s congresses at the corresponding levels by the Constitution and relevant laws.

Article 3 Deputies must play an exemplary role in abiding by the Constitution and the law and keeping State secrets and,
in the production, work or public activities that they take part in, assist the enforcement of the Constitution and the law.

Article 4 Deputies shall maintain close contacts with the voters of the electoral districts or the electoral units that elected them and
with the masses of the people, listen to and convey their opinions and demands, and strive to serve the people.

Article 5 Deputies shall be subject to the supervision of the voters of the electoral districts or the electoral units that elected them.
The voters or the electoral units have the right to recall according to law the deputies they elected. The deputies to be recalled
have the right to attend the meetings for recalling them to state their opinions or present a written statement of their
opinions.

Article 6 Deputies’ work carried out according to the provisions of this Law, when the people’s congresses at the corresponding levels
are in session, and their activities conducted according to the provisions of this Law, when the people’s congresses at
the corresponding levels are not in session, shall all constitute the performance of their functions as deputies.

The State and society shall provide guarantees for deputies in their performance of functions as deputies.

CHAPTER II WORK OF DEPUTIES DURING A SESSION OF THE PEOPLE’S CONGRESS AT THE CORRESPONDING LEVEL

Article 7 Deputies shall attend sessions of the people’s congress at the corresponding level and exercise the functions and powers as
deputies according to law.

Article 8 Deputies shall attend plenary meetings of a session, general meetings and group meetings of the delegation, deliberate on the
bills or proposals and reports that have been placed on the agenda of a session.

Deputies may attend, upon recommendation or invitation, and as nonvoting participants, meetings of the Presidium or meetings
of the special committees and advance their opinions.

Article 9 Deputies have the right, in accordance with procedures prescribed by law, to submit to the people’s congress at
the corresponding level bills and proposals within the scope of its functions and powers. Bills and proposals submitted
shall consist of subjects, grounds and schemes.

Deliberations on a bill or proposal already placed on the agenda of a session shall be terminated upon approval by the Presidium
of a request made by the sponsor deputy for its withdrawal before it is put to vote at the session.

Article 10 Deputies to the National People’s Congress have the right, in accordance with the procedures prescribed by the Constitution, to
submit to the National People’s Congress bills on the amendment to the Constitution.

Article 11 Deputies shall participate in the elections conducted by the people’s congress at the corresponding level.

Deputies to the National People’s Congress have the right to advance opinions on candidates nominated by the Presidium for
the component members of the Standing Committee of the National People’s Congress, President and Vice-President of the
People’s Republic of China, Chairman of the Central Military Commission, President of the Supreme People’s Court and Procurator-General
of the Supreme People’s Procuratorate and candidates for the various special committees of the National People’s Congress.

Deputies to the local people’s congresses at or above the county level have the right, in accordance with the procedures prescribed
by law, to nominate candidates for the component members of the standing committees of the people’s congresses, leading members
of the people’s governments, presidents of the people’s courts and procurators-general of the people’s procuratorates
at the corresponding levels, as well as candidates for the deputies to the people’s congresses at the next higher
levels, and have the right to advance opinions on the aforesaid candidates nominated according to law by the presidiums and deputies
to the people’s congresses at the corresponding levels.

Deputies to the people’s congresses of townships, nationality townships or towns have the right, in accordance with the procedures
prescribed by law, to nominate candidates for the leading members of the people’s governments at the corresponding levels,
and have the right to advance opinions on the aforesaid candidates nominated according to law by the presidiums and deputies
to the people’s congresses at the corresponding levels.

Deputies to the people’s congresses at various levels have the right to advance opinions on the candidates for the presidiums
of the people’s congresses at the corresponding levels.

With respect to a candidate that has been determined, deputies may vote for or against, or vote another person instead, or abstain
from voting.

Article 12 Deputies to the National People’s Congress shall participate in deciding on the choice of the component members of the State Council,
and Vice-Chairmen and members of the Central Military Commission.

Deputies to the National People’s Congress and to the people’s congresses of provinces, autonomous regions, municipalities
directly under the Central Government, autonomous prefectures and cities divided into districts shall participate in
the vote for determining the component members of various special committees of the people’s congresses at the
corresponding levels.

Article 13 During deliberations on a bill or proposal, or a report, deputies may make inquiries to the relevant State organ at
the corresponding level, and such organ shall send its leading cadre or a person in charge to answer the inquiries.

Article 14 During a session of the National People’s Congress, a delegation or a group of thirty or more deputies have the right to
make a proposal in writing for addressing inquiries to the State Council, ministries and commissions under the State Council,
the Supreme People’s Court and the Supreme People’s Procuratorate.

Deputies to the people’s congresses at or above the county level have the right, in accordance with the procedures prescribed
by law, to make proposals for addressing inquiries to the people’s governments and governmental departments, the people’s
courts and the people’s procuratorates at the corresponding levels.

Deputies to the people’s congresses of townships, nationality townships or towns have the right, in accordance with the procedures
prescribed by law, to make proposals for addressing inquiries to the people’s governments at the corresponding levels.

In a proposal for addressing inquiries, the person to be inquired and the subject and content to be inquired about shall be clearly
stated.

A proposal for addressing inquiries shall, according to a decision of the Presidium, be replied by the State organ inquiried.
If half or more of the deputies who made the proposal for addressing inquiries are not satisfied with the reply, they may
demand another reply from the organ in question.

Article 15 Deputies to the National People’s Congress have the right, in accordance with the procedures prescribed by law, to make a proposal
for the removal from office of a member of the Standing Committee of the National People’s Congress, the President or
Vice-President of the People’s Republic of China, a component member of the State Council, a component member of the Central
Military Commission, the President of the Supreme People’s Court or the Procurator-General of the Supreme People’s Procuratorate.

Deputies to a local people’s congress at or above the county level have the right, in accordance with the procedures prescribed
by law, to make a proposal for the removal from office of a component member of the standing committee of the people’s
congress, a component member of the people’s government, the president of the people’s court or the procurator-general
of the people’s procuratorate at the corresponding level.

Deputies to the people’s congress of a township, nationality township or town have the right, in accordance with the procedures
prescribed by law, to submit a proposal for the removal from office of a leading member of the people’s government at
the corresponding level.

In a proposal for removal from office, the reasons for the removal shall be clearly stated.

Article 16 Deputies to a people’s congress at or above the county level have the right to put forward, according to law, a proposal for
setting up a committee for the investigation of a specific question.

Article 17 Deputies may, in a vote conducted by the people’s congress at the corresponding level, cast an affirmative vote or a negative vote
or abstain from voting.

Article 18 Deputies have the right to put forward proposals, criticisms or opinions to the people’s congress at the corresponding
level concerning any sphere of work. The State organs or institutions concerned must make study and disposition thereof
and be responsible for giving a reply.

CHAPTER III ACTIVITIES OF DEPUTIES WHEN THE PEOPLE’S CONGRESS AT THE CORRESPONDING LEVEL IS NOT IN SESSION

Article 19 The standing committee of a people’s congress at or above the county level shall organize deputies to the people’s congress
at the corresponding level to carry out activities when the people’s congress at the corresponding level is not in session.

The standing committee of a local people’s congress at or above the county level shall, upon the commission of the standing
committee of the people’s congress at the next higher level, organize the deputies to the people’s congress at the next higher
level who are elected by the people’s congress at the corresponding level to carry out activities when the people’s congress
at the next higher level is not in session.

Article 20 Deputies to the people’s congresses at or above the county level may, with the assistance of the standing committees of
the people’s congresses at the corresponding levels or lower levels, form themselves into deputy groups in the light
of the principle of facilitating the organization and conduct of their activities.

Deputies to the people’s congresses at or above the county level may take part in the group activities of deputies to the people’s
congresses at lower levels.

Article 21 Deputies to the people’s congresses at or above the county level may, in line with the unified arrangements made by the standing
committees of the people’s congresses at the corresponding levels, carry out inspections on the work of the State organs and
relevant units at the corresponding levels or lower levels.

Deputies may, during inspections conducted in accordance with the provisions of the preceding paragraph, suggest an interview
with the responsible personnel of the relevant State organs at the corresponding or lower levels. The responsible personnel
to be interviewed of the State organs concerned or the persons in charge entrusted by them shall listen to the proposals,
criticisms or opinions of the deputies.

Deputies may conduct on-the-spot inspections in their respective localities on the strength of their deputy cards.
The standing committees of the local people’s congresses at or above the county level shall, upon requests by deputies, make
arrangements for deputies to the people’s congresses at the corresponding or higher levels to conduct on- the-spot inspections
in their respective localities on the strength of their deputy cards.

Deputies may, during their inspections, put forward proposals, criticisms or opinions to the units inspected, but shall
not deal with the problems directly.

Article 22 Deputies have the right, in accordance with the procedures prescribed by law, to propose the convening of an interim session
of the people’s congress at the corresponding level.

Article 23 Deputies to the people’s congresses at or above the county level may attend, upon invitation, and as nonvoting participants,
meetings of the standing committees of the people’s congresses at the corresponding levels. Deputies to the National People’s
Congress and those to the people’s congresses of provinces, autonomous regions, municipalities directly under the
Central Government, autonomous prefectures or cities divided into districts may attend, upon invitation and as nonvoting
participants, meetings of the special committees of the people’s congresses at the corresponding levels.

Article 24 Deputies to the National People’s Congress and those to the people’s congresses of provinces, autonomous regions, municipalities
directly under the Central Government, autonomous prefectures or cities divided into districts may attend, as nonvoting participants,
meetings of the people’s congresses of the electoral units that elected them, and may also attend, upon invitation and as nonvoting
participants, meetings of the standing committees of the people’s congresses of the electoral units that elected them.

Article 25 Deputies shall, through various ways, constantly listen to the opinions of the masses of the people, answer inquiries of voters
of the electoral district or of the electoral unit that elected them about their work and activities as deputies and assist
the people’s government at the corresponding level in its work.

Article 26 Deputies to the people’s congresses at or above the county level shall, according to decisions of the people’s congresses at
the corresponding levels or of their standing committees, join the committees for the investigation of specific questions.

Article 27 Deputies to a people’s congress at or above the county level have the right to put forward proposals, criticisms or opinions
concerning any sphere of work to the standing committee of the people’s congress at the corresponding level. State organs
or institutions concerned must make study and disposition thereof and be responsible for giving a reply.

Article 28 Deputies to the people’s congress of a township, nationality township or town shall have division of labour in their contacts
with the voters, form themselves into deputy groups according to law, reflect the opinions and demands of the masses and
assist the work of the people’s government at the corresponding level.

CHAPTER IV GUARANTEES FOR THE PERFORMANCE OF FUNCTIONS AS DEPUTIES

Article 29 Deputies shall hold no legal liability for their speeches or votes at various meetings of the people’s congresses.

Article 30 No deputy to a people’s congress at or above the county level may be arrested or placed on criminal trial without the consent
of the Presidium of the people’s congress at the corresponding level, or without the consent of its standing committee
when the people’s congress is not in session. If a deputy is caught in the act and detained, the organ executing the detention
shall immediately report the matter to the Presidium or the standing committee of the people’s congress at the corresponding
level.

If any other restriction of personal freedom prescribed by law is imposed on a deputy to a people’s congress at or above
the county level, it shall be subject to the approval of the Presidium or the standing committee of the people’s congress
at the corresponding level.

If a deputy to the people’s congress of a township, nationality township or town is arrested or placed on criminal trial, or subjected
to any other restrictions of personal freedom prescribed by law, the executing organ shall immediately report the matter
to the people’s congress of the township, nationality township or town.

Article 31 Where a deputy participates in activities as deputy arranged by the people’s congress at the corresponding level or its standing
committee when the people’s congress is not in session, The unit to which the deputy belongs must ensure him the needed
time.

Article 32 The performance by a deputy of his or her functions as deputy in accordance with the provisions of Article 31 of this Law shall
be regarded as normal attendance by his or her unit and the wage and other benefits of the unit shall be duly enjoyed by the
deputy.

Deputies with no fixed income of wages or salaries shall, for the performance of their functions as deputies, be appropriately
subsidized by the governmental finance at the corresponding level in light of the specific circumstances.

Article 33 Funds for deputy activities shall be included in the financial budget of the governments at the corresponding levels.

Article 34 The standing committees of the people’s congresses at or above the county level shall, through various ways, maintain contacts
with deputies to the people’s congresses at the corresponding levels.

Article 35 The standing committees of the local people’s congresses at or above the county level shall provide necessary conditions
for deputies within their respective administrative areas to perform their functions as deputies.

Article 36 The offices of the standing committees of the people’s congresses at or above the county level shall provide services
for deputies in their performance of functions as deputies.

Article 37 For the convenience of deputies’ performance of their functions as deputies, the people’s congresses at various levels
may make and issue deputy cards to deputies to the people’s congresses at the corresponding levels.

Article 38 When deputies of minority nationalities perform their functions as deputies, the departments concerned shall provide them
with necessary help and give special considerations in such aspects as languages, both spoken and written, habits and
customs.

Article 39 All organizations and individuals must respect the rights of deputies and support them in their performance of functions as deputies.

Whoever has the duty to assist deputies in their performance of functions as deputies but refuses to do so shall
be admonished, criticized, even subjected to administrative sanctions by the unit concerned.

Whoever obstructs deputies from performing their functions as deputies according to law shall be subjected to administrative
sanctions by the unit to which he or she belongs or by the department at the higher level, or shall be punished in accordance
with the provisions of Article 19 of the Regulations on Administrative Penalties for Public Security. Whoever obstructs,
by means of violence or threat, deputies from performing their functions as deputies according to law shall be
investigated for criminal responsibility in accordance with the provisions of Article 157 of the Criminal Law.

CHAPTER V SUSPENSION OF PERFORMANCE OF FUNCTIONS AS A DEPUTY AND

Article 40 Where a deputy is involved in either of the following circumstances, the performance of his or her functions as deputy
shall be temporarily suspended:

(1) being held in custody and subjected to investigation, prosecution and trial for criminal cases; or

(2) being sentenced to public surveillance, criminal detention or fixed- term imprisonment without the supplementary punishment of
deprivation of political rights and now serving the sentence.

As soon as the circumstances specified in the preceding paragraph no longer exist during the term of the deputy in question,
the performance of his or her functions as deputy shall be restored, except for the one who is disqualified as deputy.

Article 41 A deputy involved in any of the following circumstances shall be disqualified as a deputy:

(1) a deputy to a local people’s congress at any level who has moved or is transferred away from the corresponding administrative
area;

(2) his or her resignation as a deputy being accepted;

(3) being absent, without approval, from two sessions of the people’s congress at the corresponding level;

(4) being recalled;

(5) having forfeited the nationality of the People’s Republic of China;

(6) being deprived of political rights in accordance with the law.

Article 42 The disqualification of a deputy to a people’s congress at or above the county level shall be reported by the credential committee
to the standing committee of the people’s congress at the corresponding level for its announcement.

The disqualification of a deputy to the people’s congress of a township, nationality township or town shall be reported by
the credential committee to the people’s congress at the corresponding level for its announcement.

CHAPTER VI SUPPLEMENTARY PROVISIONS

Article 43 The people’s congresses of provinces, autonomous regions and municipalities directly under the Central Government and their standing
committees may, in accordance with this Law and in light of the actual conditions of their respective administrative areas,
formulate measures for implementation.

Article 44 This Law shall enter into force as of the date of promulgation.

1...185186187...212 Page 186 of 212

China Laws

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

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

REGULATIONS ON THE ADMINISTRATION OF THE REGISTRATION OF ENTERPRISES IN THE XIAMEN SPECIAL ECONOMIC ZONE

CUSTOMS RULES OF THE PEOPLE’S REPUBLIC OF CHINA ON THE IMPORT OF LEGACIES

PROVISIONS OF THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE, THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE CONCERNING THE INVESTMENTS MADE BY THE VARIOUS PARTIES OF CHINESE-FOREIGN EQUITY JOINT VENTURES

MEASURES OF SHANGHAI MUNICIPALITY GOVERNING COMMODITY PURCHASING AND PRODUCT SALES BY FOREIGN INVESTMENT ENTERPRISES

INTERIM PROVISIONS FOR THE ADMINISTRATION OF FOREIGN CHAMBERS OF COMMERCE IN CHINA

DECISION OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE REVISION OF THE CHINESE-FOREIGN EQUITY JOINT VENTURES

PROVISIONS CONCERNING REDUCTION OF AND EXEMPTION FROM ENTERPRISE INCOME TAX AND CONSOLIDATED INDUSTRIAL AND COMMERCIAL TAX FOR THE ENCOURAGEMENT OF FOREIGN BUSINESSMEN TO INVEST IN THE SHANGHAI PUDONG NEW ZONE

ENTRY AND EXIT ANIMAL AND PLANT QUARANTINE

REGULATIONS ON ENCOURAGEMENT OF FOREIGN INVESTMENT OF HUNAN PROVINCE

DEPUTIES TO THE NATIONAL PEOPLE’S CONGRESS AND TO THE LOCAL PEOPLE’S CONGRESSES AT VARIOUS LEVELS

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7