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PROVISIONAL MEASURES OF THE PEOPLE’S BANK OF CHINA GOVERNING THE ISSUE OF FOREIGN EXCHANGE GUARANTEE BY RESIDENT INSTITUTIONS IN CHINA

ENTERPRISE BANKRUPTCY (FOR TRIAL IMPLEMENTATION)

Law of the People’s Republic of China on Enterprise Bankruptcy (For Trial Implementation)

     (Effective Date:1988.10.01–Ineffective Date:)

(Adopted at the 18th Meeting of the Standing Committee of the Sixth National People’s Congress and promulgated by Order No. 45 of
the President of the People’s Republic of China on December 2, 1986 for Trial Implementation Three Full Months After the Law on Industrial
Enterprises with Ownership by the Whole People Comes into Effect)

CONTENTS

CHAPTER I GENERAL PROVISIONS

CHAPTER II THE SUBMISSION AND ACCEPTANCE OF BANKRUPTCY APPLICATIONS

CHAPTER III CREDITORS’ MEETINGS

CHAPTER IV SETTLEMENT AND REORGANIZATION

CHAPTER V BANKRUPTCY DECLARATIONS AND BANKRUPTCY LIQUIDATIONS

CHAPTER VI SUPPLEMENTARY PROVISIONS

CHAPTER I GENERAL PROVISIONS

   Article 1. This Law is formulated in order to suit the development of the planned socialist commodity economy and the needs of the reform of
the economic structure, to promote the autonomous operation of enterprises owned by the whole people, to strengthen the economic
responsibility system and democratic management, to improve the state of operations, to increase economic efficiency and to protect
the lawful rights and interests of creditors and debtors.

   Article 2. This Law applies to enterprises owned by the whole people.

   Article 3. Enterprises which, owing to poor operations and management that result in serious losses, are unable to repay debts that are due
shall be declared bankrupt in accordance with the provisions of this Law.

Enterprises for which creditors file for bankruptcy shall not be declared bankrupt under any of the following circumstances:

(1) public utility enterprises and enterprises that have an important relationship to the national economy and the people’s livelihood,
for which the relevant government departments grant subsidies or adopt other measures to assist the repayment of debts;

(2) enterprises that have obtained guarantees for the repayment of debts within six months from the date of the application for bankruptcy.

With respect to enterprises for which creditors file for bankruptcy, bankruptcy proceedings shall be suspended against those for which
the superior departments in charge have applied for reorganization, and if the enterprise and the creditors have reached a settlement
agreement through consultation.

   Article 4. The state through various means shall appropriately arrange for the reemployment of the staff and workers of bankrupt enterprises,
and shall guarantee their basic living needs prior to reemployment; specific measures shall be separately stipulated by the State
Council.

   Article 5. Bankruptcy cases shall be under the jurisdiction of the people’s courts in the location of the debtor.

   Article 6. Where this Law has not stipulated the procedures for bankruptcy cases, the legal provisions for civil procedures shall apply.

CHAPTER II THE SUBMISSION AND ACCEPTANCE OF BANKRUPTCY APPLICATIONS

   Article 7. Where the debtor is unable to repay debts that are due, the creditors may file to declare the debtor bankrupt.

When the creditor is submitting the bankruptcy application, it should provide relevant evidence relating to the amount of the claim,
whether or not it is secured with property, and to the inability of the debtor to repay debts that are due.

   Article 8. The debtor, upon the agreement of its superior departments in charge, may apply for the declaration of bankruptcy.

When the debtor is submitting the bankruptcy application, it shall explain the circumstances of the enterprise’s losses and deliver
relevant accounting statements, a detailed list of debts and a detailed list of claims.

   Article 9. After the people’s court has accepted a bankruptcy case, it shall notify the debtor within ten days and make a public announcement.
Within ten days after receiving the detailed list of debts delivered by the debtor, the people’s court shall notify known creditors.
The public announcement and notice shall stipulate the date of the first convening of the creditors’ meeting.

Creditors who have been notified shall, within one month after receiving the notice, and creditors who have not been notified shall,
within three months after the date of the public announcement, report their claims to the people’s court and explain the amount of
the claims, as well as whether or not they are secured with property, and also deliver relevant materials of proof. Creditors who
do not report their claims during these periods shall be deemed to have automatically abandoned their claims.

The people’s court shall register separately claims that are secured with property and claims that are not secured with property.

   Article 10. Where creditors have made the bankruptcy application, the debtor shall, within 15 days after receiving the notice of the people’s
court, deliver to the people’s court the relevant materials described in the second paragraph of Article 8 of this Law.

If the debtor is a guarantor for another unit, it shall, within five days after receiving the notice of the people’s court, in turn
notify the relevant parties.

   Article 11. After the people’s court has accepted a bankruptcy case, other civil enforcement proceedings against the property of the debtor must
be suspended.

   Article 12. After the people’s court has accepted a bankruptcy case, payment by the debtor to only some of the creditors is null and void, with
the exception of payments required for the normal production and operations of the debtor.

CHAPTER III CREDITORS’ MEETINGS

   Article 13. All creditors are members of the creditors’ meeting. Members of the creditors’ meeting enjoy the right to vote, provided, however,
that creditors with claims secured with property which have not abandoned their priority right to be repaid are excepted. Guarantors
of the debtor, after having repaid debts on behalf of the debtor, may be deemed creditors, and enjoy the right to vote.

The chairman of the creditors meeting is designated by the people’s court from among the creditors with the right to vote.

The legal representative of the debtor must attend the creditors’ meetings and answer the creditors inquiries.

   Article 14. The first creditors’ meeting is called by the people’s court, and shall be convened within 15 days after the expiration of the period
for reporting claims. Subsequent creditors’ meetings are convened at such times as the people’s court or the chairman of the meeting
deems them necessary, and may also be convened on the request of the liquidation committee or of creditors whose claims comprise
more than one fourth of the total amount of claims not secured with property.

   Article 15. The functions and powers of the creditors’ meeting are:

(1) to examine materials of proof relating to the claims, and to confirm the amount of such claims and whether or not the claims are
secured with property;

(2) to discuss and adopt a draft settlement agreement; and

(3) to discuss and adopt a plan for the disposition and distribution of bankruptcy property.

   Article 16. Resolutions of the creditors meeting are adopted by a majority of creditors with the right to vote present at the meeting; the amount
of their claims must comprise more than half of the total amount of claims that are not secured with property, however, with respect
to a resolution adopting a draft settlement agreement, such amount must comprise more than two thirds of the total amount of claims
not secured with property.

Resolutions of the creditors’ meeting shall have binding force on all the creditors.

Creditors who consider the resolutions of the creditors’ meeting to be contrary to the provisions of law may, within seven days after
the creditors’ meeting has made such resolutions, apply to the people’s court for judgment.

CHAPTER IV SETTLEMENT AND REORGANIZATION

   Article 17. With respect to enterprises for which the creditors apply for bankruptcy, the superior departments in charge of the enterprise that
is the subject of the bankruptcy application may, within three months after the people’s court has accepted the case, apply to carry
out reorganization of the enterprise; the period of reorganization shall not exceed two years.

   Article 18. After an application for reorganization is submitted, the enterprise shall propose a draft settlement agreement to the creditors’
meeting.

The settlement agreement shall stipulate the period in which the enterprise shall repay the debts.

   Article 19. After the enterprise and creditors’ meeting have reached a settlement agreement which has been recognized by the people’s court,
the people’s court shall make a public announcement and suspend the bankruptcy proceedings. The settlement agreement shall have legal
effect from the date of the public announcement.

   Article 20. The reorganization of the enterprise shall be supervised by its superior departments in charge.

The reorganization plan of the enterprise shall be discussed by the congress of the staff and workers of the enterprise. The circumstances
of the reorganization of the enterprise shall be reported to the congress of the staff and workers of the enterprise and its opinion
shall be heeded.

The circumstances of the reorganization of the enterprise shall be periodically reported to the creditors’ meeting.

   Article 21. During the period of reorganization, an enterprise in any of the following circumstances shall, upon judgment of the people’s court,
terminate reorganization and declare its bankruptcy:

(1) not implementing the settlement agreement;

(2) continued worsening in its financial condition, for which reason the creditors’ meeting has applied for the termination of reorganization;
and

(3) committing any of the acts listed in Article 35 of this Law and seriously harming the interests of creditors.

   Article 22. With respect to an enterprise that has undergone reorganization and is able to repay debts in accordance with the settlement agreement,
the people’s court shall terminate the bankruptcy proceedings for such enterprise, and also make a public announcement thereof.

With respect to an enterprise that, on the expiration of the period of reorganization, is unable to repay debts in accordance with
the settlement agreement, the people’s court shall declare such enterprise bankrupt, and shall re-register the claims in accordance
with the provisions of Article 9 of this Law.

CHAPTER V BANKRUPTCY DECLARATIONS AND BANKRUPTCY LIQUIDATIONS

   Article 23. In any of the following circumstances, after the judgment of the people’s court, an enterprise shall be declared bankrupt:

(1) if, in accordance with the provisions of Article 3 of this Law should be declared bankrupt;

(2) if, reorganization has been terminated in accordance with the provisions of Article 21 of this Law; and

(3) if, upon the expiration of the period of reorganization, is unable to repay debts in accordance with the settlement agreement.

   Article 24. The people’s court shall, within 15 days after the date the enterprise is declared bankrupt, establish a liquidation team to take
over the bankrupt enterprise. The liquidation team shall be responsible for the keeping, putting into order, appraisal, disposition
and distribution of the bankruptcy property. The liquidation team may carry out necessary civil actions in accordance with law.

The members of the liquidation team shall be designated by the people’s court from among the superior departments in charge, government
finance departments, and other relevant departments and professional personnel. The liquidation team may hire necessary work personnel.

The liquidation team is responsible to, and shall make report on its work to, the people’s court.

   Article 25. No unit or individual may illegally dispose of the property, account books, documents, materials, seals, etc. of a bankrupt enterprise.

The debtors of a bankrupt enterprise and persons holding the property of a bankrupt enterprise can repay debts or deliver property
only to the liquidation team.

   Article 26. The liquidation team may decide to terminate or to continue to perform the contracts that have not yet been performed by the bankrupt
enterprise.

If the liquidation team decides to terminate a contract, and the other party to the contract suffers harm as the result of the termination
of the contract, the amount of compensation for the harm constitutes a bankruptcy claim.

   Article 27. Before the legal representative of the bankrupt enterprise has handled the procedures for transfer to the liquidation team, he shall
be responsible for the keeping of the property, account books, documents, materials, seals, etc. of such enterprise.

Before the conclusion of the bankruptcy proceedings, the legal representative of the bankrupt enterprise shall carry out work according
to the requirements of the people’s court or the liquidation team, and may not leave his position without authorization.

   Article 28. Bankruptcy property comprises the following property:

(1) all property that the bankrupt enterprise operated and managed at the time bankruptcy was declared;

(2) property obtained by the bankrupt enterprise during the period from the declaration of bankruptcy until the conclusion of the
bankruptcy proceedings; and

(3) other property rights that the bankrupt enterprise should exercise.

Property that already constitutes security collateral is not bankruptcy property; the portion of the value of the security collateral
exceeding the amount of the debt that it secures is bankruptcy property.

   Article 29. Property in the bankrupt enterprise that belongs to other persons shall be retrieved by the persons with the right to such property
through the means of the liquidation team.

   Article 30. Claims not secured with property and claims secured with property for which the priority right to receive repayment has been abandoned,
which are established before bankruptcy is declared, are bankruptcy claims.

The expenses of creditors for participating in the bankruptcy proceedings may not constitute bankruptcy claims.

   Article 31. Claims that are not due when bankruptcy is declared shall be deemed to be claims that have already become due, provided, however,
that the interest that is not yet due shall be deducted.

   Article 32. With respect to claims secured with property that are established before bankruptcy is declared, the creditors enjoy the right to
receive repayment with priority with respect to such security.

With respect to claims that are secured with property whose amount exceeds the value of the security collateral, the part that is
not repaid constitutes a bankruptcy claim, and will be repaid in accordance with the bankruptcy proceedings.

   Article 33. Creditors which owe debts to the bankrupt enterprise may offset them before the bankruptcy liquidation.

   Article 34. Priority shall be given to saving the following bankruptcy expenses from the bankruptcy property:

(1) the expenses needed for the management, sale and distribution of the bankruptcy property, including the expenses of hiring work
personnel;

(2) the litigation expenses of the bankruptcy case; and

(3) other expenses paid in the course of bankruptcy proceedings for the common interest of the creditors.

With respect to enterprises whose bankruptcy property is insufficient to cover bankruptcy expenses, the people’s court should declare
termination of bankruptcy proceedings.

   Article 35. During the period from six months before the people’s court accepts the bankruptcy case until the date that bankruptcy is declared,
the following actions of a bankrupt enterprise are null and void:

(1) concealment, secret distributions or transfers of property without compensation;

(2) sale of property at abnormally depressed prices;

(3) securing with property of claims that originally were not secured by property;

(4) early repayment of claims that are not yet due; and

(5) abandonment of the enterprise’s own claims.

With respect to bankrupt enterprises which have committed acts listed in the previous paragraphs, the liquidation team has the right
to apply to the people’s court to recover the property, which shall be added to the bankruptcy property.

   Article 36. Complete sets of equipment in the bankruptcy property shall be sold as a whole, and that which cannot be sold as a whole may be sold
in parts.

   Article 37. The distribution plan for the bankruptcy property shall be proposed by the liquidation team, adopted by the creditors meeting and
submitted to the people’s court for judgment before implementation.

After the prior deduction of bankruptcy expenses from the bankruptcy property, repayment shall be made in the following order:

(1) wages of staff and workers and labour insurance expenses that are owed by the bankrupt enterprise;

(2) taxes that are owed by the bankrupt enterprise; and

(3) bankruptcy claims.

Where the bankruptcy property is insufficient to repay all the repayment needs within a single order of priority, it shall be distributed
on a pro-rata basis.

   Article 38. Upon the completion of the distribution of the bankruptcy property, the liquidation team shall apply to the people’s court for the
conclusion of the bankruptcy proceedings. After the termination of bankruptcy proceedings, claims that have not been repaid shall
no longer be repaid.

   Article 39. After the conclusion of the bankruptcy proceedings,the liquidation team shall handle the procedures for the cancellation of registration
at the original registration authorities of the bankrupt enterprise.

   Article 40. With respect to bankrupt enterprises that are discovered within one year after the date of the conclusion of the bankruptcy proceedings
to have committed any of the acts listed in Article 35 of this Law, the people’s court shall recover the property and order repayment
in accordance with Article 37 of this Law.

   Article 41. With respect to bankrupt enterprises that have committed any of the acts listed in Article 35 of this Law, the legal representative
and the directly responsible personnel of the bankrupt enterprise shall be subject to administrative sanctions; where the acts of
the legal representative and the directly responsible personnel of the bankrupt enterprise constitute crimes, criminal responsibility
shall be investigated in accordance with the law.

   Article 42. After an enterprise is declared bankrupt, the government supervisory departments and audit departments are responsible for pinpointing
the responsibility for the bankruptcy of the enterprise.

Where the legal representative of the bankrupt enterprise bears the major responsibility for the bankruptcy of the enterprise, administrative
sanctions shall be applied.

Where the superior departments in charge of the bankrupt enterprise bear the major responsibility for the bankruptcy of the enterprise,
administrative sanctions shall be applied to the leaders of such superior departments in charge.

With respect to the legal representative of the bankrupt enterprise and the leaders of superior departments in charge of bankrupt
enterprise who, due to neglect of duty, cause the bankruptcy of the enterprise that result in the major loss of state property, criminal
responsibility shall be investigated in accordance with Article 187 of the Criminal Law of the People’s Republic of China.

CHAPTER VI BANKRUPTCY DECLARATIONS AND BANKRUPTCY LIQUIDATIONS

   Article 43. This Law is to be implemented on a trial basis three full months after the Law on Industrial Enterprises with Ownership by the Whole
People comes into effect, and the specific plans and steps for the trial implementation shall be stipulated by the State Council.

    





PROVISIONAL REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON REAL ESTATE TAX

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING THE APPROVAL AND TRANSMISSION OF SEVERAL ADDITIONAL STIPULATIONS BY THE LEADING GROUP FOR PORT AFFAIRS ON STRENGTHENING THE WORK OF UNCLOGGING HARBOURS

Category  PORT ADMINISTRATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1986-06-07 Effective Date  1986-07-01  


Circular of the General Office of the State Council Concerning the Approval and Transmission of Several Additional Stipulations by
the Leading Group for Port Affairs on Strengthening the Work of Unclogging Harbours

The Circular
SEVERAL ADDITIONAL STIPULATIONS ON STRENGTHENING THE WORK OF UNCLOGGNG

(June 7, 1986)

The Circular

    The State Council has approved Several Additional Stipulations on
Strengthening the Work of Unclogging Harbours formulated by the Leading Group
for Port Affairs. It is hereby transmitted to you for implementation
conscientiously.
SEVERAL ADDITIONAL STIPULATIONS ON STRENGTHENING THE WORK OF UNCLOGGNG
HARBOURS

    Since Several Stipulations on Strengthening the Work of Unclogging
Harbours (hereinafter referred to as Stipulations) were implemented, some
progress has been made in strengthening the planned administration of foreign
trade transport, speeding up the transport of the goods at harbours and
improving economic results. However, during the process of implementation,
some provisions of the Stipulations have been found not clear enough. With the
agreement of the relevant departments, the following additional stipulations
are hereby formulated in order to further improve the work of unclogging
harbours:

    1. In order to enforce the plans, the monthly transport plans which have
been balanced by the Ministry of Communications, the Ministry of Railways and
the Ministry of Foreign Economic Relations and Trade must be strictly
implemented. The transport plans made and submitted by the relevant units must
conform to the actual situation. In case plans which have been balanced and
incorporated in the monthly transport plans have not been fulfilled, a fine of
0.5 yuan for every ton of goods shall be imposed on the relevant units. If the
plans cannot be fulfilled due to objective reasons, no fines shall be imposed.

    2. About provisions concerning the fines formulated in the Stipulations:

    (1) When a large amount of materials (seasonal goods are not included)
have crowded into a harbour in bulks, if the amount exceeds the monthly
average amount in the yearly plan by 15%, or more, the companies ordering the
goods shall be fined in accordance with the Stipulations.

    (2) When goods which are not included in the yearly transport plans
arrive at a harbour and, moreover, the owner has not made any supplementary
plans according to the relevant provisions, fines shall be imposed on the
owner in accordance with the Stipulations.

    (3) In case that monthly plans have not been submitted as stipulated, the
materials shall be treated as goods outside the plans. If the vessels are
sent by our country, fines shall be imposed on the shipping companies. If the
vessels are sent by other party, fines shall be imposed on the companies
ordering the goods.

    3. If it is necessary to unload goods from some planned vessels at more
than two harbours, the shipping agent company at the first harbour
should, according to the relevant stipulations, notify the shipping agent
company at the next harbour of the information concerning the arrival of the
vessels at the next harbour and instruct it to pass on the information to the
office for port affairs, harbour section and other relevant units at the
next harbour. In case of failure to pass on the information in time, China
Ocean Shipping Agency or China National Foreign Trade Transportation
Corporation shall circulate notices to criticize their respective shipping
agent companies.

    4. The monthly plan concerning the arrival of vessels and goods which has
been balanced by the Ministry of Communications, the Ministry of Railways and
the Ministry of Foreign Economic Relations and Trade shall be issued by the
Ministry of Communications, with copies sent to the Transportation Bureaus of
the other two ministries and the Office of the Leading Group for Port Affairs
of the State Council. After receiving monthly plans from the Ministry of
Communications, the various harbour sections shall promptly send copies to
the local offices for port affairs, railway stations and foreign trade
transportation companies. Local offices for port affairs shall take the
monthly plans from the Ministry of Communications as the basis for conducting
supervision and checks and imposing fines on unplanned transportation. The
monthly railway plans for loading and unloading goods at harbours shall be
carried out according to the existing procedures.

    5. The monthly transport plan is the guarantee for carrying out the yearly
transport plan. All the harbours, railway departments and owners (agents) must
undertake their respective responsibilities in carrying out the balanced
monthly plans.

    (1) Planned vessels must not go beyond the month due to waiting to be
loaded and unloaded. The Ministry of Communications should take this as one of
the main standards in assessing the harhours’ performance and shall carry out
regular checks. If planned vessels cannot be loaded or unloaded within the
prescribed period on the harbours’ account, the Ministry of
Communications shall circulate notices of criticism. If such cases are caused
by foreign trade transport, the Ministry of Foreign Economic Relations and
Trade shall circulate notices of criticism.

    (2) It is necessary to ensure the fulfilment of the railway monthly
transport plan. If the plan has not been fulfilled on the
railway department’s account, the competent department for the
railways shall circulate notices of criticism.

    (3) For those materials which do not have reasonable directions of
transportation, the railways shall only transport amounts within the quota
(less than 500 ton for general goods; less than 1,000 ton for bulk cargo). In
special cases, the approval of the competent department in the Ministry of
Railways should be obtained; otherwise, the owners shall bear the economic
losses.

    (4) The bilateral and multilateral economic agreements signed among the
various relevant units at the ports are a necessary measure to bring into
full play the initiative of all the parties and speed up the turnover of
vehicle, vessels and goods. The various offices for port affairs must do a
good job in this respect.

    6. In order to ensure the berth, loading and unloading of planned vessels,
it is necessary to strict1y control the number of temporary agreements for
sending back single vessels quickly. Such agreements must not be signed for
vessels outside the plans. All the harbours must strictly implement the
Provisions Concerning Administration of Loading and Unloading for Foreign
Trade Vessels at Chinese Harbours issued by the Ministry of Communications.

    7. The provisions concerning fines in the Stipulations and these
Additional Stipulations shall apply to the eight harbours of Dalian,
Qinhuangdao, Tianjin, Qingdao, Lianyungang, Shanghai, Huangpu and Zhanjiang.

    8. These Additional Stipulations shall go into effect as of July 1, 1986.





INTERIM REGULATIONS FOR LABOUR MANAGEMENT IN THE ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONE OF SHANGDONG PROVINCE

Interim Regulations for Labour Management in the Economic and Technological Development Zone of Shangdong Province

     (Promulgated on January 21, 1986 by People’s Government of Shandong Province)

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

   Article 2. Foreign citizens, overseas Chinese, compatriots in Taiwan, Hong Kong and Macao and their companies, enterprises and other economic
entities shall, when establishing enterprises in the Development Zone (hereinafter referred to as the Development Zone enterprises),
report for the record to the Labour Bureau of the cities where they are located the labour plans of the enterprises which shall be
determined by the board of directors of the enterprises.

   Article 3. The Development Zone enterprises shall implement the labor contract system in employing the staff and workers. The labour contract
shall include the following items: the term of the contract; the employment, dismissal and resignation of the staff and workers;
the production of the work tasks; labour service charges and provisions of awards and punishment; work schedules and holidays; labour
insurance and welfare benefits, labour protection and discipline and other rights and obligations agreed upon by the parties.

The labour contract shall be signed by the enterprise with the labour union of the enterprise or directly with each of the staff and
workers, and shall become effective after the examination and approval by the Labour Bureau of the city where the enterprise is located.

   Article 4. The Labour Service Company shall be established in the Development Zone to aid the enterprise recruiting and training the staff
and workers, direct the staff and workers in seeking employment, guide them in signing labour contracts with the enterprise and centrally
control the social labour insurance funds of the staff and workers.

   Article 5. The staff and workers to be employed by an enterprise may be recruited by the Labour Service Company on behalf of the enterprise
or by the enterprise itself under the approval by the Labour Bureau of the city. The probation period for newly employed staff and
workers will be three to six months. Those qualified shall go through the procedures for regular membership through the Labour Service
Company.

   Article 6. The staff and workers to be employed by the enterprise shall be over at least sixteen years of age. Students may not be employed.

   Article 7. The Development Zone enterprise shall pay wages to the staff and workers on individual basis. The wage standards shall be settled
in the labour contract according to the category of the enterprise and the types of work in production, and shall be increased annually
in accordance with the individual technical competence and the beneficial result of the enterprise. The range of increase shall
be determined by the enterprise and the labour union through consultation.

The types of wages and the system of bonuses and subsidies for the staff and workers shall be determined by the enterprise itself
and be reported for the record to the Labour Bureau of the city where it is located.

   Article 8. The Development Zone enterprise and its staff and workers shall pay monthly social labour insurance funds to the Labour Service
Company respectively at 25% of the total amount of wages of its Chinese staff and workers and at 2% of their wages during the contract
period. The funds shall be paid before the fifth day of the following month. In case of failure to do so, a surcharge for overdue
payment equal to 1% of the payable amount shall be imposed for every day in arrears.

The social labour insurance funds shall be used for the staff and workers for the following purposes: retirement pays, medical fees
after retirement, funeral expenses, pension for the disabled and the deceased, relief funds and subsidies for living expenses before
reemployment after dismissal.

   Article 9. The staff and workers of the enterprise have the right to establish labour union in accordance with Chinese laws, to organize union
activities and to protect their rights and interests. The enterprise shall support the work of the labour union and allot money
as the union’s funds in accordance with the pertinent regulations. The union shall support the proper business activities of the
enterprise and educate the staff and workers to observe labour disciplines.

   Article 10. The work schedule of the staff and workers of the enterprise shall not exceed eight hours a day and six days a week. For the work
that has to be done overtime, an agreement of the labour union shall be needed beforehand and an overtime pay shall be given.

   Article 11. The staff and workers of the enterprise shall enjoy the rest days and official holidays provided by the government and other rights
and interests stipulated in the labour contract.

   Article 12. The Development Zone enterprise shall implement the Pertinent rules and regulations of Shandong Province and the People’s Republic
of China concerning labour and environmental protection and ensure safe and civilized production. The Administrative Commission
of the Development Zone and the labour union have right to inspect and supervise them.

   Article 13. The Development Zone enterprise shall give special labour protection and maternal health protection to women staff and workers in
accordance with the pertinent rules and regulations of Shandong Province and the People’s Republic of China.

   Article 14. The staff and workers of the enterprise who are injured at post or undergo treatment of their occupational diseases and the women
staff and workers who are pregnant for over six months or on maternity leave shall not be dismissed.

   Article 15. The Development Zone enterprise shall exercise management over the staff and workers employed in accordance with the regulations
stipulated in the contract and the business requirements of the enterprise. The enterprise may impose sanctions against the staff
and workers who violate the rules and regulations of the enterprise in the light of seriousness of the case. When imposing sanctions,
the enterprise shall consult the labour union of the enterprise for its opinion and the person being punished for his argument. Any
sanction shall be determined by the general manager and the deputy general manager. When dismissing any of the staff and workers,
the enterprise shall report it for the record to the competent governmental authorities of the enterprise and the Labour Bureau of
the city where it is located.

   Article 16. The staff and workers who want to resign shall submit the resignation to the enterprise one month in advance and report it to the
Labour Service Company. In case of the staff and workers who have received training provided by the enterprise, they shall make certain
compensation for the expenses the enterprise has incurred for their training if they want to resign before expiration of the contractual
period.

   Article 17. During the contract period, the enterprise may dismiss, with the agreement of the labour union, the staff and workers who become
superfluous as a result of changes in production and technical conditions or cannot meet the requirements of production and are not
suitable for transfer of other work within the enterprise. The dismissal shall be reported to the Labour Service Company one month
in advance. The enterprise shall pay the dismissed staff and workers according to the length of their work in the enterprise. The
standards for compensation are as follows:

For length of employment under ten years, one month’s basic wage for each full year’s work;

For length of employment over ten years, one and half a month’s basic wage for each full year’s work for the eleventh year and onwards;

For length of employment under one year, one month’s basic wage;

For person on probation, half a month’s basic wage.

For those dismissed for the sake of the business conditions of the enterprise, an extra compensation of three to six months’ basic
wages shall be paid besides the amount described above. The enterprise shall give one to three months’ basic wages to the staff
and workers on expiration of the labour contract if the contract may not be continued.

   Article 18. Any labour dispute arising between the enterprise and the staff and workers shall be solved first through consultation by the enterprise
and the labour union of the enterprise. If the consultation fails to arrive at a solution, either party or both parties to the dispute
may require for arbitration by the Labour Bureau of the city where the enterprise is located. Either party that disagrees to the
arbitration may file a suit at the people’ court of the city.

   Article 19. Matters such as wages, remuneration, awards and punishment, welfare, social insurance, dismissal and resignation of the staff and
workers of foreign nationality and from Taiwan, Hong Kong and Macao employed by the enterprise shall be determined by the board of
directors of the enterprise and be specified in the employment contracts. A copy of the contract shall be submitted for the record
to the Labour Bureau of the city where the enterprise is located.

   Article 20. These Interim Regulations shall come into force on the date of promulgation.

    





REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON ADMINISTRATIVE PENALTIES FOR PUBLIC SECURITY  

CERTIFIED PUBLIC ACCOUNTANTS

Law of the PRC on Certified Public Accountants

    

(Adopted at the Fourth Meeting of the Standing Committee of the Eighth National People’s Congress on October 31, 1993, promulgated
by Order No. 13 of the President of the People’s Republic of China on October 31, 1993, and effective as of January 1, 1994)

CHAPTER I GENERAL PROVISIONS

CHAPTER II EXAMINATION AND REGISTRATION

CHAPTER III BUSINESS SCOPE AND RULES

CHAPTER IV PUBLIC ACCOUNTING FIRM

CHAPTER V INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

CHAPTER VI LEGAL LIABILITY

CHAPTER VII SUPPLEMENTARY PROVISIONS

   Article 1 This Law is formulated in order to bring into play certified public accountants’ role of attestation and service in social economic
activities, strengthen administration of affairs of certified public accountants, protect public interests and the
lawful rights and interests of investors, and promote the healthy development of the socialist market economy.

   Article 2 A certified public accountant is a professional who has obtained the certificate of certified public accountant according
to law and is commissioned to offer auditing, accounting consultancy and other accounting services.

   Article 3 A public accounting firm is an organization which is established according to law and undertakes to provide professional
services of certified public accountants.

A certified public accountant who provides services shall join a public accounting firm.

   Article 4 The institute of certified public accountants is a public organization composed of certified public accountants. The
Chinese Institute of Certified Public Accountants is the national organization of certified public accountants and institutes
of certified public accountants in provinces, autonomous regions and municipalities directly under the Central Government
are local organizations of certified public accountants.

   Article 5 The financial department under the State Council and financial departments of the people’s governments of provinces, autonomous
regions and municipalities directly under the Central Government shall supervise and guide the activities of certified
public accountants, public accounting firms and institutes of certified public accountants according to law.

   Article 6 Certified public accountants and public accounting firms in performance of services must abide by the law and administrative
rules and regulations.

Certified public accountants and public accounting firms shall carry out their business independently and impartially according
to law and shall be protected by law.

CHAPTER II EXAMINATION AND REGISTRATION

   Article 7 The State shall adopt a unified national examination system for certified public accountants. The measures for the unified national
examination shall be formulated by the financial department under the State Council and such examination shall be organized
and conducted by the Chinese Institute of Certified Public Accountants.

   Article 8 Chinese citizens who have graduated from colleges or universities or who have earned the professional post_title of accountant
or an intermediate or higher professional post_title in a relevant field of study may apply for attendance at a unified national
examination for certified public accountants. Those who have earned the professional post_title of accountant or senior professional
post_titles in a relevant field of study may be exempted from examination in certain subjects.

   Article 9 Whoever has passed the unified national examination for certified public accountants and has engaged in auditing business
for more than two years may apply to the institute of certified public accountants of the province, autonomous region
or municipality directly under the Central Government for registration.

Except the situations specified in Article 10 of this Law, the institute of certified public accountants that has received the application
shall permit the applicant to register.

   Article 10 If the applicant is involved in any of the following circumstances, the institute of certified public accountants that
has received the application shall not permit the applicant to register:

(1) if the applicant does not have the full capacity for civil conduct;

(2) if the applicant was punished for a crime and the period between the date of completing the criminal punishment and the date
of application for registration is less than five years;

(3) if the applicant was subjected to an administrative sanction, or removed from office or a more serious sanction, due to
grave mistakes in financial, accounting, auditing, enterprise management or other economic activities, and the period between
the date of the decision for such punishment or sanction and the date of application for registration is less than two years;

(4) if the applicant was punished with the revocation of the certificate of certified public accountant, and the period between
the date of the decision for such punishment and the date of application for registration is less than five years;
or

(5) other circumstances under which registration shall not be approved as stipulated by the financial department of the State
Council.

   Article 11 The institute of certified public accountants shall submit the namelist of applicants whose applications are approved to
the financial department of the State Council for the record. If the financial department of the State Council
finds any registration approved by an institute of certified public accountants to be inconsistent with the provisions
of this Law, it shall notify the relevant institute of certified public accountants to cancel the registration.

If an institute of certified public accountants decides not to approve the registration of an applicant in accordance with Article
10 of this Law, it shall notify the applicant in writing within 15 days after the decision is made. If the applicant disagrees
with the decision, he or she may, within 15 days after receiving the notification, apply to the financial department of the
State Council or the financial department of the people’s government of the province, autonomous region or municipality
directly under the Central Government for reconsideration.

   Article 12 The applicants who are permitted to register shall be granted by the institute of certified public accountants an unified certificate
for certified public accountants issued by the financial department of the State Council.

   Article 13 If anyone who has acquired the certificate of a certified public accountant is involved in any of the following circumstances
besides the one stipulated in the first paragraph of Article 11 of this Law, the institute of certified public accountants
that approved the registration shall cancel the registration and revoke the certificate for certified public accountant:

(1) having completely lost the capacity for civil conduct;

(2) being under punishment for a crime;

(3) being under an administrative sanction, or removed from office, or under a more serious sanction due to grave mistakes
in financial, accounting, auditing, enterprise management or other economic activities; or

(4) having stopped, of his or her own accord, serving as a certified public accountant for one year or more.

If the person concerned disagrees with the cancellation of registration, he or she may, within 15 days from the date of
receiving the notification about the cancellation of registration or the revocation of the certificate for certified
public accountant, apply for reconsideration to the financial department of the State Council or the financial department
of the people’s government of the province, autonomous region or municipality directly under the Central Government.

Persons whose registration has been cancelled in accordance with the provisions of the first paragraph may apply for registration
anew, but the provisions of Article 9 and Article 10 of this Law must be complied with.

CHAPTER III BUSINESS SCOPE AND RULES

   Article 14 Certified public accountants shall undertake the following audit services:

(1) examining the accounting statements of enterprises and producing audit reports;

(2) verifying the capital of enterprises and producing capital verification reports;

(3) dealing with audit services in matters of merger, division or liquidation of enterprises and producing the relevant reports;
and

(4) other audit services stipulated by relevant laws and administrative rules and regulations.

The reports produced by certified public accountants engaged in audit services according to law shall be authentic.

   Article 15 Certified public accountants may undertake accounting consultancy and accounting services.

   Article 16 All professional engagements to be undertaken by certified public accountants shall be accepted by the public accounting firm
to which they belong and which shall sign engagement contracts with the clients.

The public accounting firm shall assume civil liabilities for the services provided by its certified public accountants in
accordance with the provisions of the preceding paragraph.

   Article 17 When providing services, certified public accountants may, where necessary, consult the relevant accounting materials, documents
and check the business site and facilities of the client and require that the client provide other necessary assistance.

   Article 18 If there is an interest between a certified public accountant and a client, the certified public accountant shall withdraw; and
the client shall have the right to demand that he or she withdraw.

   Article 19 Certified public accountants shall have the obligation to keep their clients’ business secrets they come to know in carrying
out their business.

   Article 20 In carrying out their audit services, certified public accountants may, under any of the following circumstances, refuse
to produce a report to their clients:

(1) The client indicates that they should provide untruthful or improper verification;

(2) The client intentionally refuses to provide relevant accounting materials and documents; or

(3) Due to other unreasonable requirements from the client, the report to be produced by certified public accountants can not
provide a correct account of the important items of the financial accounting.

   Article 21 The certified public accountants must, in carrying out audit services, produce audit reports in accordance with the audit procedures
set in the professional standards and rules.

When preparing reports in the course of carrying out audit services, certified public accountants may not commit any of the
following acts:

(1) to refrain from pointing out while clearly knowing that the client’s processing of the important items of the financial
accounting contravenes the relevant provisions of the State;

(2) to conceal facts or produce an untruthful report while clearly knowing that the client’s processing of the financial
accounting will directly impair the interests of the users of the report or other interested parties;

(3) to refrain from pointing out while clearly knowing that the client’s processing of the financial accounting may substantially
mislead the users of the report or other interested parties; or

(4) to refrain from pointing out while clearly knowing that the important items of the client’s accounting statements
contain other false information.

Where certified public accountants ought to know the acts of their clients specified above in accordance with the professional
standards and rules, the provisions of the preceding paragraph shall apply.

   Article 22 Certified public accountants shall not commit any of the following acts:

(1) in the course of carrying out audit services, to buy or sell stocks or debentures of the institutions audited or purchase other
property of institutions or individuals audited during the period such acts are prohibited as prescribed by the laws
and administrative rules and regulations;

(2) to ask for or accept remuneration or other forms of payment in cash or in kind in addition to what is agreed upon with the
client in a contract, or seek other unlawful interests by taking advantage of their services;

(3) to undertake commission to dun debts;

(4) to allow others to carry out services in the name of the certified public accountant;

(5) to work concurrently at two or more public accounting firms;

(6) to advertise their qualifications to solicit business; or

(7) other acts in violation of the laws or administrative rules and regulations.

CHAPTER IV PUBLIC ACCOUNTING FIRM

   Article 23 A public accounting firm may be established by certified public accountants in partnership.

The obligations of a public accounting firm in partnership shall be borne by the partners with their own property according
to the proportion of their respective capital contributions or to their agreement. The partners shall bear joint
liabilities as to the obligations of the public accounting firm.

   Article 24 A public accounting firm conforming to the following requirements may be a legal person with limited liabilities:

(1) having a registered capital of no less than 300 000 yuan;

(2) employing a certain number of full-time professionals, among whom there must be at least five certified public accountants;
and

(3) satisfying the business scope and other requirements as stipulated by the financial department of the State Council.

Public accounting firms with limited liabilities shall bear obligations with their total assets.

   Article 25 The establishment of a public accounting firm shall be subjected to the approval of the financial department of the
State Council, or the financial department of the people’s government of the province, autonomous region or municipality
directly under the Central Government.

To apply for establishment of a public accounting firm, the applicant shall submit to the examining and approving authorities
the following documents:

(1) an application;

(2) the name, institutional structure and premises of the public accounting firm;

(3) the articles of association of the public accounting firm, and the agreement of partnership if there is any;

(4) the name list, resumes and relevant certificates of the certified public accountants;

(5) the names, resumes and relevant certificates of the leading persons and partners of the public accounting firm;

(6) the certificate of capital contributions of the public accounting firm with limited liabilities; and

(7) other documents as required by the examining and approving authorities.

   Article 26 The examining and approving authorities shall decide whether to approve or not within 30 days from the date of receiving
the documents of application.

Public accounting firms approved by the financial departments of the people’s governments of provinces, autonomous regions or
municipalities directly under the Central Government shall be filed with the financial department of the State Council for
the record. If the financial department of the State Council finds the approval to be inappropriate, it shall, within
30 days from the date of receiving the report, notify the original examining and approving authorities to review the case.

   Article 27 Establishment of a branch of a public accounting firm shall be subjected to the approval of the financial department of the people’s
government of the province, autonomous region or municipality directly under the Central Government where the branch is to
be located.

   Article 28 Public accounting firms shall pay taxes according to law. Public accounting firms shall set up a professional risk fund
and undertake professional insurance as prescribed by the financial department of the State Council.

   Article 29 When receiving business, public accounting firms shall not be limited by administrative regions or trades, except as otherwise
provided by the laws, administrative rules and regulations.

   Article 30 No unit or individual shall interfere in the services entrusted by the clients to public accounting firms.

   Article 31 The provisions of Articles 18 to 21 of this Law shall be applicable to public accounting firms.

   Article 32 Public accounting firms shall not commit any of the acts listed in Items 1 to 4, Item 6 and Item 7 of Article 22 of this Law.

CHAPTER V INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

   Article 33 A certified public accountant shall join an institute of certified public accountants.

   Article 34 The Articles of Association of the Chinese Institute of Certified Public Accountants shall be formulated by the national
congress of the members of the Institute and filed with the financial department of the State Council for the record.
The articles of association of the institutes of certified public accountants of provinces, autonomous regions
or municipalities directly under the Central Government shall be formulated by the congresses of the members of the institutes
and filed with the financial departments of the people’s governments of the provinces, autonomous regions or
municipalities directly under the Central Government for the record.

   Article 35 The Chinese Institute of Certified Public Accountants shall draw up professional standards and rules for certified
public accountants according to law and implement them after obtaining approval from the financial department of the State Council.

   Article 36 The institutes of certified public accountants shall support the certified public accountants in conducting their services according
to law, safeguard their legitimate rights and interests and convey their opinions and suggestions to the relevant authorities.

   Article 37 The institutes of certified public accountants shall carry out annual inspection of the qualifications and professional services
of certified public accountants.

   Article 38 The institutes of certified public accountants shall acquire the status of body corporate according to law.

   Article 39 If a public accounting firm violates the provisions of Article 20 or Article 21 of this Law, the financial department of
the people’s government at or above the provincial level shall give a warning to the firm, confiscate its illegal income
and may concurrently impose a fine of not less than one time, but not more than five times the value of the illegal income.
If the circumstances are serious, the financial department of the people’s government at or above the provincial
level may also suspend its business operation or revoke its business licence.

If a certified public accountant violates the provisions of Article 20 or Article 21 of this Law, the financial department
of the people’s government at or above the provincial level shall give a warning to the accountant. If the circumstances
are serious, the financial department of the people’s government at or above the provincial level may suspend his services
or revoke his certificate of the certified public accountant.

A public accounting firm or a certified public accountant, that, in violation of the provisions of Article 20 or Article
21 of this Law, intentionally produces untruthful audit reports or capital verification reports shall, if the case constitutes
a crime, be investigated for criminal responsibilities according to law.

   Article 40 If a unit undertakes the services defined for certified public accountants under Article 14 of this Law without prior approval,
the financial department of the people’s government at or above the provincial level shall order the unit to stop its
illegal activities, confiscate its illegal income and may concurrently impose a fine of not less than one time, but not
more than five times the value of the illegal income.

   Article 41 If the party concerned disagrees with the decision on administrative sanctions, it may, within 15 days from the date
of receiving the notification of the decision on sanctions, apply for reconsideration to the organ at the next higher
level than the organ that made the decision on sanction. The party concerned may also, within 15 days from the date of receiving
the notification of the decision on sanction, directly being a suit before a people’s court.

The organ giving reconsideration shall make a decision within 60 days from the date of receiving the application for reconsideration.
If the party concerned disagrees with the decision made after reconsideration, it may bring a suit before a people’s court
within 15 days from the date of receiving the decision. If the organ giving the reconsideration fails to make a decision within
the time limit, the party concerned may bring a suit before a people’s court within 15 days from the expiration of the time
limit for reconsideration.

If the party concerned within the time limit has neither applied for reconsideration nor brought a suit before a people’s court,
nor complied with the decision on sanction, the organ making the decision may apply to the people’s court for compulsory execution.

   Article 42 If a public accounting firm has in violation of the provisions of this Law caused losses to its client or other interested
parties, it shall bear the liability for compensation according to law.

CHAPTER VII SUPPLEMENTARY PROVISIONS

   Article 43 A certified public auditor working in an audit firm, who has been recognized as qualified for a certified public accountant,
may carry out the services provided by this Law. Measures for recognition of qualifications, and for supervision, guidance and
administration of such auditors shall be formulated separately by the State Council.

   Article 44 As to foreigners who apply for participation in the unified national examination for Chinese certified public accountants and
for registration as certified public accountants, the matter shall be dealt with on a reciprocal basis. Foreign public accounting
firms that wish to establish a permanent representative office within the territory of China must apply to the financial
department of the State Council for approval. A cooperative public accounting firm to be jointly sponsored by foreign and
Chinese public accounting firms shall be subject to the examination and consent of the department under the State Council
in charge of foreign economic relations and trade or a department authorized by the State Council and of a people’s
government at the provincial level, before the matter is reported to the financial department of the State Council
for approval.

Apart from what is stipulated in the preceding paragraph, if a foreign public accounting firm wishes to conduct relevant business
within the territory of China on a temporary basis, it must apply to the financial department of the people’s government
of the relevant province, autonomous region or municipality directly under the Central Government for approval.

   Article 45 The State Council may formulate regulations for implementation in accordance with this Law.

   Article 46 This Law shall enter into force as of January 1, 1994. The Regulations of the People’s Republic of China on Chinese Certified
Public Accountants promulgated by the State Council on July 3, 1986

    





REGULATIONS ON PATENT COMMISSIONING

Regulations on Patent Commissioning

     Chapter 1 General Principles

   Article 1 With a view to guaranteeing the legitimate rights of patent agencies and consignors and ensuring the normal working of patent commissioning
services, these Regulations her eof are formulated.

   Article 2 Patent commissioning stated here denotes patent application or the handling of other patent- related affairs by patent agencies
on behalf of their consignors and within their authorized powers.

Chapter 2 Patent Agencies

   Article 3 Patent agencies stated here denote service organs that apply for patents or handle other patent-related affairs on behalf of
their consignors and within their authorized powers.

Patent agencies include:

(1) those that handle foreign patent-related affairs;

(2) those that handle domestic patent-related affairs; and

(3) law firms that handle domestic patent-related affairs.

   Article 4 Establishment of a patent agency shall require the following conditions:

(1) having a name, articles of association and fixed work place of its own;

(2) having necessary capital and work installations;

(3) being financially independent and able to meet civil liabilities independently; and

(4) employing three or more special staff members qualified as patent agents and a proportionate number of likewise qualified
spare-time working staff as stipulated by the China Administration of Patents (CAP).

Law firms engaged in patent commissioning must have special staff for the business stated in item (4) of the previous paragraph.

   Article 5 To apply for the establishment of a patent agency at a patent administration, the following documents must be presented:

(1) a letter of application with the name, office space and responsible person’s name stated;

(2) the articles of association of the patent agency;

(3) the names of patent agents and their certificates of qualification; and

(4) written proof of the amount of capital and installations of the patent of the agency.

   Article 6 Patent agencies applying for the handling of domestic patent-related affairs or law firms applying for the same must have the consent
of their governing authorities and their applications must be examined by patent administrations of provinces, autonomous regions
or municipalities directly under the Central Government; in the absence of governing authorities, they may be directly examined
by the later. Upon agreement, the examining authorities shall report the applications to CAP for approval.

Patent agencies applying to handle foreign-related patent affairs must go through procedures as stipulated in the Patent
Law of the People’s Republic of China. Such agencies, upon approval by CAP, can handle domestic patent affairs.

   Article 7 Patent agencies, as of the date of approval, can start handling patent-commissioning business in accordance with law, enjoy
civil rights and meet civil liabilities.

   Article 8 Patent agencies shall deal with the following businesses:

(1) providing patent-related consulting agencies;

(2) writing on commission patent application documents and handling re-examination and other related affairs;

(3) raising disagreement, asking for the announcement of a patent right cancellation and other related affairs;

(4) handling the right of patent application, the transfer of patent right and patent permission and other related affairs;

(5) appointing patent agents to serve as patent advisors upon invitation; and

(6) other related matters.

   Article 9 When patent agencies accept consignments and handle business, they shall have a consignor’s letter of commitment clearly stating
commissioned items and powers.

If needed, a patent agency may designate a certain patent agent appointed by the consignor to handle the business.

Patent agencies may charge commissions in accordance with relevant regulations of t he State.

   Article 10 After accepting a commission, a patent agency shall not accept the commission of rival consignors concerning patents with the
same content.

   Article 11 Patent agencies shall employ as patent agents persons with Patent Agent Qualification Certificate”. The latter shall go through
necessary procedures, be given “Patent Agent Work Permit” by the former, and register at CAP.

Beginners shall not be issued “Patent Agent Work Permit” until after a full year of apprenticeship.

When patent agencies discharge their patent agents, they shall recover in time the latter’s “Patent Agent Working Permit”
and report such discharge to CAP.

   Article 12 When patent agencies change their names, addresses and responsible persons, they shall report to CAP of such changes, which become
effective only after approval by the latter.

When a patent agency goes out of business, it shall, after appropriately handling a unsettled affairs, report to
the authorities that endorsed its opening and the latter shall be responsible for going through all necessary procedures as CAP.

   Article 13 If an approved patent agency no longer meets the conditions stated in Article 4 of these Regulations hereof due to a change of
circumstances and will not be able to meet such conditions within 1 year, the authorities that endorsed its opening should propose
to CAP that it be canceled as a patent agency.

Chapter 3 Patent Agents

   Article 14 Patent agents that these Regulations hereof stated denote bearers of “Patent Agent Qualification Certificate” and of “Patent
Agent Working Permit”.

   Article 15 Chinese citizens who support Constitution as the People’s Republic of China and meet the following conditions may apply to be patent
agents:

(1) over the age of 18 with full capacity for civil behaviors;

(2) graduates of college departments of sciences (or with equivalent education) in command of one foreign language;

(3) well-versed in the Patent Law and related legal knowledge; and

(4) scientists or lawyers with upwards of 2 years of work experience.

   Article 16 Persons who apply to be patent agents will obtain CAP “Patent Agent Qualification Certificate” after a panel of examination judges
deem him or her qualified.

The panel of judges is composed of persons from CAP, State Council department and organizations of patent agents.

   Article 17 Patent agents shall handle only patent commissioning services assigned by their patent agencies and shall not accept such
services on their own.

   Article 18 Patent agents shall handle patent commissioning services in two or more patent agencies simultaneously.

Before quitting their jobs at patent agencies, patent agents must appropriately conclude unsettled commissioned cases.

   Article 19 In case bearers of “Patent Agent Qualification Certificate” fail to engage in patent commissioning business or patent-related
management for 5 years, their “Patent Agent Qualification Certificates” are automatically rendered ineffective.

   Article 20 Patent agents in the course of doing their professional work or within 1 year of their quitting their profession must
not apply for patents.

   Article 21 Patent agents lawfully handling patent commissions shall be protected by State laws and their work shall not be interfered with
by any unit or individual.

   Article 22 State organ staff are forbidden to work at patent agencies and engage in patent commissioning service in their spare-time.

   Article 23 Patent agents have the responsibility to keep the inventions they get to know in the course of their rendering commission service
s unless relevant patent application have been made public.

Chapter 4 Punishment

   Article 24 For one of the following offenses, the governing authorities or patent administrations of the provinces, autonomous
regions or municipalities directly under the Central Government may serve a warning to the offending patent agency; in cases
of serious offense, CAP may punish it by ordering its close:

(1) concealing facts in application;

(2) changing major registration items by itself;

(3) accepting and handling patent commission services unauthorizedly or beyond the approved business scope; and

(4) other illegal activities.

   Article 25 For one of the following offenses on the part of patent agents, relevant patent agencies may criticize the offenders if the
cases are not serious; in cases of serious offenses, patent agencies may discharge the offenders and revoke their “Patent Agent
Work Permit”; relevant patent administrations of the provinces, autonomous regions or municipalities directly under the Central
Government may serve each offender a warning or CAP may revoke his or her “Patent Agent Qualification Certificate”:

(1) failing to fulfill his or her duties to the detriment of the interests of the consignors;

(2) disclosing or stealing inventions of the consignors;

(3) going beyond the powers of commission and causing damages to the interests of the consignors; and

(4) charging through accepting and handling patent commission services without permission.

If the commissaries’ economic losses hass been caused by the behavior as stated in the previous paragraph, relevant patent
agencies, after making economic pensions, may charge the patent agent in question according to a given proportion.

   Article 26 If a patent agency ordered to close down as a punishment by CAP and a patent agent whose “Patent Agent Qualification Certificate”
has been revoked do not agree with the decisions of punishment, they may appeal to CAP for re-examination; if they still fail to
be satisfied with the CAP decision, they may bring the case to a people’s court within 15 days of the receipt of the CAP decision.

Chapter 5 Supplementary Articles

   Article 27 The right to interpret these Regulations hereof rests with CAP.

   Article 28 These Regulations hereof become effective as of April 1, 1991. The Temporary Regulations on Patent Commissioning endorsed
by the State Council on September 4, 1985 and promulgated by CAP on September 12 of the same year is simultaneously canceled.

    

SIPO P.R.C.

EDITOR:Victor





DECISION OF THE THIRD SESSION OF THE SIXTH NATIONAL PEOPLE’S CONGRESS ON ESTABLISHING THE DRAFTING COMMITTEE OF THE BASIC LAW FOR HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE’S REPUBLIC OF CHINA

PROVISIONS OF THE GROUP IN CHARGE OF PORTS UNDER THE STATE COUNCIL FOR THE STRENGTHENING OF DISPERSION OF VESSELS AND CARGOS HELD UP AT PORTS

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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