China Laws

PROVISIONS FOR THE CONTROL OF BAND ACCOUNTS OPENED ABROAD BY ENTERPRISES WITH FOREIGN INVESTMENT

The State Administration of Foreign Exchange

Provisions for the Control of Band Accounts Opened Abroad by Enterprises with Foreign investment

March 1, 1989

Pursuant to the relevant stipulations of the “Rules for the Implementation of Foreign Exchange Control Relating to Enterprises with
Overseas Chinese Capital, Foreign-capital Enterprises and Chinese-foreign Equity Joint Ventures”, the following Provisions are enacted
to tighten control over the foreign exchange accounts opened abroad by enterprises with foreign investment:

Article 1

An enterprise with foreign investment (hereinafter referred to as “enterprise”) that wishes to open bank accounts abroad out of actual
business and operational needs shall apply for approval at the State Administration of Foreign Exchange (SAFE) or one of its branch
or sub-branch offices (hereafter referred to as “exchange control authorities”) where the enterprises is located; it may open such
accounts only after the application has been granted.

Article 2

As used in Article 1 , “actual business and operational needs” refer to one of the following cases:

If an enterprise has regular receipts in small amounts abroad and needs to open bank accounts there to put these receipts together
before repatriating them to China;

If an enterprise has regular disbursements in small amounts abroad-in this case, the receipts entered in the accounts shall consist
of remittances from China by the enterprise; or

If an enterprise has to open bank accounts abroad out of special business requirements.

Article 3

In applying to the exchange control authorities for approval to open bank accounts abroad, an enterprise shall submit the following
documents:

an application affixed by the enterprise’s official seal and signed by the legal representative of the enterprise or a person authorized
by its board of directors, stating the reason for opening bank accounts abroad, the specific currency involved, the sum of money,
the usage, the scope of receipts and disbursements, the using period, the bank with which the accounts are to be opened, and the
place where the bank is located;

a certificate issued by a public accountant registered in China confirming that the enterprise’s capital has been fully paid up according
to the pertinent provisions;

the document of approval issued by the competent authorities if the enterprise has set up a representative office with resident personnel
abroad; and

the measures adopted by the enterprise to manage its bank accounts abroad.

Article 4

The enterprise shall open its accounts abroad with a bank in the country or region where its foreign exchange receipts and payments
mainly occur. Priority shall be given to Chinese-owned banks, if there is any there; a foreign bank with good credit standing may
also be chosen if there is special need for this.

Article 5

The enterprise shall maintain complete and effective control over its receipts and payments abroad and shall adopt effective managerial
measures to guarantee the safety of its funds.

Article 6

The enterprise must use its own name in opening bank accounts abroad and is not allowed to transfer its funds to the accounts of other
organizations or individuals.

Article 7

The exchange control authorities shall examine and determine the scope of receipts and disbursements to be covered by the enterprise’s
bank accounts abroad as well as the deposit ceilings and the using period of these accounts of the basis of the enterprise’s application.

Article 8

The enterprise that opens bank accounts abroad with the approval of the exchange control authorities shall submit to the said authorities,
within a month after the approval is given, a written statement certifying that the accounts have been opened; otherwise, the document
of approval from the said authorities will become invalid automatically.

Article 9

Within 30 days after the expiry of the using period of its bank accounts abroad, the enterprise must submit to the exchange control
authorities certificate confirming that these accounts have been cancelled, and must repatriate the balance to China, together with
a statement of account from the opening bank; in case the enterprise needs to extend the using period of its accounts abroad, it
must apply in writing to the exchange control authorities within 30 days before the expiry of the using period.

Article 10

The SAFE branch office that has approved an enterprise’s application to open bank accounts abroad shall submit the relevant data to
the SAFE for reference within 30 days of the approval.

Article 11

The enterprise shall submit photocopies of the opening bank’s statements, together with a statement of fund and its application, to
the exchange control authorities within 15 days after the end of each quarter.

Article 12

In accordance with the “Rules for the Implementation of Penalty of Offenses Against Exchange Control” and on the merit of each case,
the exchange control authorities may impose penalties on an enterprise and/ or revoke its bank accounts abroad in one of the following
cases:

If the enterprise has exceeded the scope approved by the exchange control authorities in using its bank accounts abroad;

If it has failed to submit on time the bank statements or other materials required by the exchange control authorities;

If it has opened bank account abroad without authorization; or

If it has violated these Provisions.

Article 13

The right to interpret these Provisions resides in the SAFE.

Article 14

These Provisions shall enter into force on March 1, 1989.

The State Administration of Foreign Exchange
1989-03-01

PROVISIONS OF THE CUSTOMS ON THE CONTROL OF LUGGAGE AND ARTICLES CARRIED BY CHINESE PERSONNEL ENTERING AND LEAVING THE COUNTRY

Category	CUSTOMS	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1989-09-06	Effective Date	1989-09-10

Provisions of the Customs on the Control of Luggage and Articles Carried by Chinese Personnel Entering and Leaving the Country

Provisions
Appendix: Table of Restricted Quantities for Articles to Be Carried
Notes:

(Approved by the State Council on August 28, 1989 and promulgated by

the General Customs Administration on September 6, 1989)
Provisions

Article 1 These Provisions are formulated in order to show consideration
for the reasonable needs of the personnel sent abroad by the State to work
or study (hereinafter referred to as “the personnel going abroad”), and to
strengthen the control of articles the importation of which is restricted by
the State.

Article 2 The luggage and articles carried by the personnel entering
or leaving the country shall be restricted to those for personal use and
within reasonable quantities. The personnel going abroad, while entering the
country, shall be given the preferential treatment of exemption from duty
for the luggage and articles they carry along that belong to the varieties
and within the quantities stipulated in the Table of Restricted Quantities
for Articles to be Carried into the Country by the Personnel Going Abroad,
attached to these Provisions as an appendix (hereinafter referred to as “the
Table of Restricted Quantities”). The personnel going abroad, who have worked
or studied abroad, for every 6 months (i.e. 180 days), shall be permitted
to carry into the country duty-free two articles – one article each from
Category 4 and Category 5, as listed in the Table of Restricted Quantities;
the aforesaid personnel going abroad are permitted to enjoy the said
preferential treatment for four successive years at most. This time limit,
however, does not apply to the personnel sent abroad to carry out an
economic-aid program or to fulfil a labour contract. With respect to personnel
temporarily going abroad, who stay abroad for less than 6 months (i.e. 180
days), they.shall be permitted to carry into the country, after paying the
duty, two articles – one article each from Category 4 and Category 5, as
listed in the Table of Restricted Quantities, when they enter the country for
the first time in a year in terms of the Gregorian calendar.

Article 3 The term “personnel going abroad on a long-term basis”, as
used in these Provisions, refers to such personnel who are sent out by the
State to work or study abroad for a period of more than one year. The term
“personnel sent abroad to carry out an economic-aid program” refers to such
personnel who are sent to work abroad on a long-term basis to carry out an
economic and technological aid program signed between two governments.

The term “personnel sent abroad to fulfil a labour contract” refers to
such technical, engineering, and administrative personnel who are sent abroad,
holding ordinary passports issued to citizens going abroad on public
business, to fulfil a labour or construction contract, signed with foreign
businessmen by a company vested with the right to manage external contracting
and labour business with the approval of the State Council or of the Ministry
of Foreign Economic Relations and Trade. The term “personnel temporarily
going abroad” refers to various categories of personnel, who are sent,
temporarily, by the State to work abroad or study for a period of less than
one year.

Article 4 With respect to personnel going abroad on a long-term basis,
the Customs shall issue to them Registration Certificate for Duty-free
Imported Articles” (hereinafter referred to as “the Registration
Certificate”). While entering the country, the personnel going abroad on a
long-term basis (including those who are exempted from inspection) shall
declare at the Customs by filling in the Registration Certificate the articles
they carry along, so that the Customs may give clearance after inspection
and verification. The Customs shall strictly control the scope of issuance
of the Registration Certificates.

Article 5 In case the personnel going abroad on a long-term basis ask
other personnel going abroad to carry into the country articles under
Categories 4 and 5, as listed in the Table of Restricted Quantities, the
Customs shall give clearance after examining “Certification for Carrying
Articles by Entrustment” issued by a Chinese organ abroad and the Registration
Certificate of owners of the said articles, and the said articles shall be
counted in the restricted quantity of duty-free articles carried into the
country by the owners themselves. Articles that exceed the restricted quantity
are not permitted to be carried into the country by entrustment.

Article 6 In case the personnel going abroad buy articles at a unit in
the country designated by the State to provide the personnel going abroad
with goods paid for in foreign exchange, they shall present their passports,
and the articles bought shall be counted in their restricted quantity of
duty-free articles.

Article 7 In case the personnel going abroad use their own foreign
exchange earning to buy, for their work-unit, equipment and articles for
scientific research and teaching (not including such general household
electrical appliances as TV sets, tape recorders, etc.), such equipment and
articles shall be exempted from duty and the Customs shall give clearance
after it has examined and verified the certification issued by a government
organ at the department/bureau level or higher. Import duties shall be levied
on articles not belonging to the aforesaid categories in accordance with
the pertinent provisions.

Article 8 The personnel going abroad must not accept articles to be
brought into or out of the country as entrusted by persons of foreign
nationalities, overseas Chinese, and compatriots from Hong Kong, Macao, and
Taiwan; neither shall they entrust the aforesaid people with the carrying
of articles into the country.

Article 9 The personnel going abroad, while entering or leaving the
country, must not carry articles the import and export of which are forbidden
by the State.

Article 10 The personnel going abroad shall comply with these Provisions
and other pertinent provisions, and go through the Customs procedures
conscientiously. In the event that they wish to sell their personal articles
which have been given Customs clearance duty-free, they shall sell them to a
State-run commercial department that is authorized by the State to handle
foreign goods.

Article 11 Personnel who are approved to go to work in the regions of
Hong Kong and Macao shall go through the procedures also in accordance with
these Provisions when they carry articles into the country; but they must
not ask other people to carry; articles for them into the country.

Article 12 These Provisions shall go into effect on September 10, 1989.

Appendix: Table of Restricted Quantities for Articles to Be Carried
into the Country by the Personnel Going Abroad

(1) The value of the aforesaid articles shall be appraised in accordance
with C.I.F.

(2) None of the articles listed in Category 4 and Category 5 of this Table
shall be chosen a second time in the same year.

(3) In case the temporary personnel are sent abroad many times, their
duration of stay abroad on different occasions shall not be added up to
obtain an accumulative total.

INTERIM REGULATIONS OF PRC CONCERNING THE ASSIGNMENT AND TRANSFER OF THE RIGHT TO THE USE OF THE STATE-OWNED LAND IN THE URBAN AREAS

Interim Regulations of PRC Concerning the Assignment and Transfer of the Right to the Use of the State-owned Land in the Urban Areas

(Effective Date:1990.05.19–Ineffective Date:)

CHAPTER I GENERAL PROVISIONS

CHAPTER II THE ASSIGNMENT OF THE RIGHT TO THE USE OF THE LAND

CHAPTER III THE TRANSFER OF THE RIGHT TO THE USE OF THE LAND

CHAPTER IV THE LEASE OF THE RIGHT TO THE USE OF THE LAND

CHAPTER V THE MORTGAGE OF THE RIGHT TO THE USE OF THE LAND

CHAPTER VI THE TERMINATION OF THE RIGHT TO USE OF THE LAND

CHAPTER VII THE ALLOCATED RIGHT TO THE USE OF THE LAND

CHAPTER VIII SUPPLEMENTARY PROVISIONS

CHAPTER I GENERAL PROVISIONS

Article 1. These Regulations are formulated in order to reform the system of using the State-owned land in the urban areas, rationally develop,
utilize and manage the land, strengthen land administration and promote urban construction and economic development.

Article 2. The State, in accordance with the principle of the ownership being separated from the right to the use of the land, implements ten
system whereby the right to the use of the State-owned land in the urban areas may be assigned and transferred, with the exclusion
of the underground resources, the objects buried underground, and the public works.

The term “State-owned land in the urban areas~ as used is the preceding paragraph refers to the land owned by the whole people (hereinafter
referred to as “the land~) within the limits of cities, county sites, administrative towns and industrial and mining areas.

Article 3. Any company, enterprise, other organization and individual within or outside the People’s Republic of China may, unless otherwise
provided by law, obtain the right to the use of the land and engage in land development, utilization and management in accordance
with the provisions of these Regulations.

Article 4. Users of the land who have obtained the right to the use of the land in accordance with these Regulations may, within the term of
land use, transfer, lease, or mortgage the right to the use of the land or use it for other economic activities, and their lawful
rights and interests shall be protected by the laws of the State.

Article 5. Users of the land shall, in their activities to develop, utilize and manage the land, abide by the laws and regulations of the state
and may not jeopardize the interests of the society and the public.

Article 6. The land administrative departments under the people’s governments at or above the county level shall conduct supervision and inspection,
according to law, over the assignment, transfer, lease, mortgage and termination of the right to the use of the land.

Article 7. The registration of the assignment, transfer, lease, mortgage and termination of the right to the use of the registration of the
above-ground buildings and other attached objects shall be handled by the land administration department and housing administration
departments of the government in accordance with the law and pertinent regulations of the State Council.

THE registration documents shall be made available for public reference.

CHAPTER II THE ASSIGNMENT OF THE RIGHT TO THE USE OF THE LAND

Article 8. The assignment of the right to the use of the land refers to the act of the State as the owner of the land who, within the term of
a certain number of years, assigns the right to the use of the land to land users, who shall in turn pay fees for the assignment
thereof to the State.

An assignment contract shall be signed for assigning the right to the use of the land.

Article 9. People’s governments at the municipal and county levels shall be in charge of assigning the right to the use of the land, which shall
be effected in a planned, step-by-step way.

Article 10. The land administration departments under the people’s governments at the municipal and county levels shall, in conjunction with
the administrative departments for urban planning and construction and the housing administration departments, draw up a plan concerning
the size and location, the purposes, the term, and other conditions with respect to the assigning of the right to the use of the
land. The plan shall be submitted for approval in accordance with the limits of authority for approval as stipulated by the State
Council and shall then the implemented by the land administration departments.

Article 11. The contract for assigning the right to the sue of the land shall be signed by and between the land administration departments under
the people’s governments at the municipal and county levels (hereinafter referred to as “the assigning party~) and the land users
in accordance with the principle of equality, voluntariness and compensation for use.

Article 12. The maximum term with respect to the assigned right to the use of the land shall be determined respectively in the light of the purposes
listed below:

(1) 70 years for residential purposes;

(2) 50 years for industrial purposes;

(3) 50 years for the purposes of education, science, culture, public health and physical education;

(4) 40 years for commercial, tourist and recreational purposes; and

(5) 50 years for comprehensive utilization or other purposes.

Article 13. The assignment of the right to the use of the land may be carried out by the following means:

(1) by reaching an agreement through consultations;

(2) by invitation to bid; or

(3) by auction.

The specific procedures and steps for assigning the right to the use of the land by the means stipulated in preceding paragraphs shall
be formulated by the people’s government of relevant province, autonomous region, or municipality directly under the Central Government.

Article 14. The land user shall, within 60 days of the signing of the contract for the assignment of the right to the use of the land, pay the
total amount of the assignment fee thereof, failing which, the assigning party shall have the right to terminate the contract and
may claim compensation for breach of contract.

Article 15. The assigning party shall, in compliance with the stipulations of the contract, provide the right to the use of the land thus assigned,
failing which, the land user shall have the right to terminate the contract and may claim compensation for breach of contract.

Article 16. After paying the total amount of the fee for the assignment of the right to the use of the land, the land user shall, in accordance
with the relevant provisions, go through the registration thereof, obtain the certificate for land use and accordingly the right
to the sue of the land.

Article 17. The land user shall, in conformity with the stipulations of the contract for the assignment of the right to the use of land and the
requirements of city planning, develop, utilize and manage the land.

Should any land user fail to develop and utilize the land in accordance with the period of time specified in the contract and the
conditions therein, the land administration departments under the people’s governments at the municipal and county levels shall make
corrections and, in light of the seriousness of the case, give such penalties as a warning, a fine or , in an extreme case, with
drawing the right to the use of the land without compensation.

Article 18. If the land user needs to alter the purposes of land use as stipulated in the contract for assigning the right to the use of land,
he shall obtain the consent of the assigning party and the approval of the land administration department and the urban planning
department and shall, in accordance with the relevant provisions in this Chapter, sign a new contract for assigning the right to
the use of the land, readjust amount of the assignment fee thereof, and undertake registration anew.

CHAPTER III THE TRANSFER OF THE RIGHT TO THE USE OF THE LAND

Article 19. The transfer of the right to the use of the land refers to the land user’s act of re-assigning the right to the use of the land,
including the sale, exchange, and donation thereof.

If the land has not been developed and utilized in accordance with the period of time specified in the contract and the conditions
therein, the right to the use thereof may not be transferred.

Article 20. A transfer contract shall be sighed for the transfer of the right to the use of the land.

Article 21. With the transfer of the right to the use of the land, the rights and obligations specified in the contract for assigning the right
to the use of the land and in the registration documents shall be transferred accordingly.

Article 22. The land user who has acquired the right to the use of the land by means of the transfer thereof shall have a term of use which is
the remainder of the term specified in the contract for assigning the right to the use of the land minus the number of the years
in which the original land user has used the land.

Article 23. With the transfer of the right to the use of the land, the ownership of the above-ground buildings and other attached objects shall
be transferred accordingly.

Article 24. The owners or joint owners of the above-ground buildings and other attached objects shall have the right to the use of the land within
the limits of use of the said buildings and objects.

With the transfer of the ownership of the above-ground buildings and other attached objects by the land users, the right to the use
of the land within the limits of use of the said buildings and objects shall be transferred accordingly, with the exception of the
movables.

Article 25. With respect to the transfer of the right to the use of the land and of the ownership of the above-ground buildings and other attached
objects, registration for the transfer shall be undertaken in accordance with the relevant provisions.

Divided transfer of the right to the use of the land and of the ownership of the above-ground buildings and other attached objects
shall be subject to the approval of the land administration department and the housing administration departments under the people’s
governments at the municipal and country levels, and registration for the divided transfer shall be undertaken in accordance with
the relevant provisions.

Article 26. When the transfer of the right to the use of the land is priced at a level obviously lower than the prevailing market price, the
people’s governments at the municipal and county levels shall have the priority of the purchase thereof.

When the market price for the transfer of the right to the use of the land rises to an unreasonable extent, the people’s governments
at the municipal and county levels may take necessary measures to cope with it.

Article 27. If, after the transfer of the right to the use of the land, necessity arises for altering the purposes of land use as stipulated
in the contract for assigning the right to the use of the land, it shall be handled in accordance with the provisions in Article
18 of these Regulations.

CHAPTER IV THE LEASE OF THE RIGHT TO THE USE OF THE LAND

Article 28. The lease of the right to the use of the land refers to the act of the land user as the lessor to lease the right to the use of the
land together with the above-ground buildings and other attached objects to the lessee for use who shall in turn pay lease rentals
to the lessor.

If the land has not been developed and utilized in accordance with the period of time specified in the contract and the conditions
therein, the right to the use thereof may not be leased.

Article 29. A lease contract shall be signed for leasing the right to the use of the land by and between the lessor and the lessee.

The lease contract shall not run counter to the laws and regulations of the State or the stipulations of the contract for assigning
the right to the use of the land.

Article 30. After leasing the right to the use of the land the lessee must continue to perform the contract for assigning the right to the use
of the land.

Article 31. With respect to the lease of the right to the use of the land together with the above-ground buildings and other attached objects,
the lessee shall undertake registration in accordance with the relevant provisions.

CHAPTER V THE MORTGAGE OF THE RIGHT TO THE USE OF THE LAND

Article 32. The right to the use of the land may be mortgaged.

Article 33. With the mortgage of the right to the use of the land, the above-ground buildings and other attached objects thereon shall be mortgaged
accordingly.

With the above-ground buildings and other attached objects, the right to the use of the land within the limits of use of the said
buildings and objects shall be mortgaged accordingly.

Article 34. A mortgage contract shall be signed for mortgaging the right to the use of the land by and between the mortgagor and the mortgagee.

The mortgage contract shall not run counter to the laws and regulations of the State or the stipulations of the contract for assigning
the right to the use of the land.

Article 35. With respect to the mortgage of the right to the use of the land together with the above-ground buildings and other attached objects,
registration for the mortgage shall be undertaken in accordance with the relevant provisions.

Article 36. If the mortgagor fails to fulfil liabilities within the prescribed period of time or declares dissolution or bankruptcy within the
term of the mortgage contract, the mortgagee shall have the right to dispose of the mortgaged property in accordance with the laws
and regulations of the State and the stipulations of the mortgage contract.

With respect to the right to the use of the land and the ownership of the above-ground buildings and other attached objects acquired
as a result of the disposal of the mortgaged property, transfer registration shall be undertaken in accordance with the relevant
provisions.

Article 37. The mortgagee shall have the priority of compensation with respect to the receipts resulting from the disposal of the mortgaged property.

Article 38. If the mortgage is eliminated as a result of the liquidation of liabilities or for other reasons, procedures shall be undertaken
to nullify the mortgage registration.

CHAPTER VI THE TERMINATION OF THE RIGHT TO USE OF THE LAND

Article 39. The right to the use of the land shall terminate for such reasons as the expiration of the term of use as stipulated in the contract
for assigning the right to the use of the land, the withdrawal of the right before the expiration, or the loss of the land.

Article 40. Upon expiration of the term of use, the right to the use of the land and the ownership of the above-ground buildings and other attached
objects thereon shall be acquired by the State without compensation. The land user shall surrender the certificate for land use and
undertake procedures to nullify the registration.

Article 41. Upon expiration of the term of use, the land user may apply for its renewal. Where such a renewal is necessary, a new contract shall
be signed in accordance with the provisions in Chapter II of these Regulations and the land user shall pay the fee for the assignment
of the right to the use of the land and undertake registration.

Article 42. The State shall not withdraw before the expiration of the term of use the right to the use of the land which the land user acquired
in accordance with the law. Under special circumstances, the State may, based on the requirements of social public interests, withdraw
the right before the expiration of the term of use in line with the relevant legal procedures and shall. based on the number of years
in which the land user has used the land and the actual state of affairs with respect to the development and utilization of the land,
offer corresponding compensation.

CHAPTER VII THE ALLOCATED RIGHT TO THE USE OF THE LAND

Article 43. the allocated right to the use of the land refers to the right to the use of the land which the land user acquires in accordance
with the law, by various means, and without compensation.

The land user referred to in the preceding paragraph shall pay tax for the use of the land in accordance with the provisions of the
Interim Regulations of the People’s Republic of China Concerning the Tax for the Use of the Land in the Urban Areas.

Article 44. The allocated right to the use of the land may not be transferred, leased, or mortgaged, with the exception of cases as specified
in Article 45 of these Regulations.

Article 45. On condition that the following requirements are satisfied, the allocated right to the use of the land and the ownership of the above-ground
buildings and other attached objects may, subject to the approval of the land administration departments and the housing administration
departments under the people’s governments at the municipal and county levels, be transferred, leased or mortgaged:

(1) The land users are companies, enterprises, or other economic organizations, or individuals;

(2) A certificate for the use of state-owned land had been obtained;

(3) Possessing legitimate certificates of property rights to the above-ground buildings and other attached objects; and

(4) A contract for assigning the right to the use of land is signed in accordance with the provisions in Chapter II of these Regulations
and the land user makes up for the payment of the assignment fee to the local municipal or county people’s government or uses the
proceeds resulting from the transfer, lease or mortgage to pay the assignment fee.

The transfer, lease or mortgage of the allocated right to the use of the land referred to in preceding paragraphs shall be handled
respectively in accordance with the provisions in Chapters III, IV and V of these Regulations.

Article 46. Any units or individuals that transfer, lease or mortgage the allocated right to the use of the land without authorization shall
have their illegal incomes thus secured confiscated by the land administration departments under the people’s governments at the
municipal and county levels and shall be fined in accordance with the seriousness of the case.

Article 47. If the land user who has acquired the allocated right to the use of the land without compensation stops the use thereof as a result
of moving to another site, dissolution, disbandment, or bankruptcy or for other reasons, the municipal or county people’s government
shall withdraw the allocated right to the use of the land without compensation and may assign it in accordance with the relevant
provisions of these Regulations.

The municipal or county people’s government may, based on the needs of urban construction and development and the requirements of
urban planning, withdraw the allocated right to the use of the land without compensation and may assign it in accordance with the
relevant provisions of these Regulations.

When the allocated right to the use of the land is withdrawn without compensation, the municipal or county people’s government shall,
in the light of the actual state of affairs, give due compensation for the above-ground buildings and other attached objects thereon.

CHAPTER VIII SUPPLEMENTARY PROVISIONS

Article 48. The right to the use of the land may be inherited if it is acquired by individuals in accordance with the provisions of these Regulations.

Article 49. The land user shall pay tax in accordance with the provisions of the tax laws and regulations of the State.

Article 50. Fees collected by assigning the right to the use of the land in accordance with these Regulations shall be included in the fiscal
budget and managed as a special fund, which shall be used mainly for urban construction and land development. The specific measures
for the use and management of the fund shall be separately prescribed by the Ministry of Finance.

Article 51. The people’s governments of various provinces, autonomous regions and municipalities directly under the Central Government shall,
in accordance with the Provisions of these Regulations and with the actual state of affairs in their respective localities, select
as their pilot testing grounds some of the cities or towns where conditions are relatively ripe.

Article 52. With respect to foreign investors engaging in developing and managing tracts of land, the administration of the right to the use
of the land shall be effected in accordance with the relevant provisions of the State Council.

Article 53. The State Administration for Land Uses shall be responsible for the interpretation of these Regulations; the measures for the implementation
thereof shall be formulated by the people’s governments of the provinces, autonomous regions and municipalities directly under the
Central Government.

Article 54. These Regulations shall go into effect as of the date of promulgation.

REGULATIONS ON THE INVESTIGATION AND HANDLING OF MARITIME TRAFFIC ACCIDENTS

Regulations of the PRC on the Investigation and Handling of Maritime Traffic Accidents

(Effective Date:1990.03.03–Ineffective Date:)

CONTENTS

CHAPTER I GENERAL PROVISIONS

CHAPTER II REPORT

CHAPTER III INVESTIGATION

CHAPTER IV HANDLING OF ACCIDENTS

CHAPTER V MEDIATION

CHAPTER VI PENALTIES

CHAPTER VII SPECIAL PROVISIONS

CHAPTER VIII SUPPLEMENTARY PROVISIONS

CHAPTER I GENERAL PROVISIONS

Article 1. These Regulations are formulated according to the relevant provisions of the Maritime Traffic Safety Law of the People’s Republic
of China in order to strengthen the control of maritime traffic safety and promptly investigate and handle maritime traffic accidents.

Article 2. The harbour superintendency establishments of the People’s Republic of China shall be responsible for implementing these Regulations.

Article 3. These Regulations shall apply to the maritime traffic accidents happening to the vessels and installations in the coastal waters
of the People’s Republic of China.

If there exist special provisions in state laws and administrative regulations for the investigation and handling of the maritime
traffic accidents happening in the fishing port waters or of the maritime traffic accidents happening between fishing vessels or
between military vessels in the coastal waters, these special provisions shall prevail.

Article 4. The maritime traffic accidents referred to in these Regulations mean the following accidents happening to vessels and installations:

(1) Collision, strike or damage by waves;

(2) Hitting hidden rocks or running aground;

(3) Fire or explosion;

(4) Sinking;

(5) Damage or loss of machinery parts or important tools during a voyage which affects the vessel’s seaworthiness;

(6) Other maritime traffic accidents which cause losses in property and human lives.

CHAPTER II REPORT

Article 5. The persons in charge of the vessels and installations which are involved in maritime traffic accidents must report immediately to
the harbour superintendency administration at the nearest harbour by a high-frequency telephone, radiotelegram or other effective
means. The content of the reports shall include: name of the vessel or installation, call sign, nationality, port of departure and
port of arrival, owners or managers of the vessel or installation,when and where the accident happened and the attending circumstances
on the sea, the extent of damage of the vessel or installation, request for salvage, etc.

Article 6. The persons in charge of the vessels and installations which are involved in maritime traffic accidents must, in addition to making
brief reports immediately in accordance with the provisions in Article 5, submit the Report Concerning Maritime Traffic Accidents
and other necessary documents and material according to the following stipulations to the harbour superintendency administration;

(1) If maritime traffic accidents happen to vessels or installations within the waters of the harbour areas, it is necessary to submit
a report and other material to the local harbour superintendency administration within 24 hours after the accidents.

(2) If maritime traffic accidents happen to vessels or installations in the coastal waters beyond the waters of harbour areas, it
is necessary to submit a report and other material within 48 hours after the vessels arrive at the first harbour in the People’s
Republic of China of the harbour superintendency administration; in the case of installations, it is necessary to report by telegram,
the content of which shall cover all the items required in the Report Concerning Maritime Traffic Accidents to the harbour superintendent
at the nearest harbour within 48 hours after the accidents.

(3) If a maritime traffic accident happens in the course of pilotage, the pilot shall submit the Report Concerning Maritime Traffic
Accidents to the local harbour superintendency administration within 24 hours after his return to the harbour.

If, because of special circumstances, the Report Concerning Maritime Traffic Accidents cannot be submitted within the time limit set
in paragraphs (1) and (2) of this Article, the time limit may be appropriately extended after permission is obtained from the harbour
superintendency administration.

Article 7. The following information shall be truthfully provided in the Report Concerning Maritime Traffic Accidents:

(1) Basic conditions of the vessel or installation and the data concerning its main functions;

(2) Name and address of the owner or manager of the vessel or installation;

(3) When and where the accident happened;

(4) The climatic conditions and the conditions on the sea when the accident happened;

(5) A detailed description of the course of the accident (for a collision, a sketch map illustration the face-to-face movements shall
be attached);

(6) Degree of the damage (A sketch showing the damaged parts of the vessel or installation shall be attached. If it is difficult to
make a thorough investigation within the set time limit, a report shall be submitted at a later date after the examination.)

(7) Estimated location of sinking in case where the vessel or installation sank;

(8) Other information related to the accident.

Article 8. A report concerning maritime traffic accidents must be truthful and there must not be any concealment or falcification.

Article 9. If a vessel or an installation is damaged due to a maritime traffic accident, the captain in of the vessel or the person in charge
of the installation shall apply to China’s local inspection department or the inspection department at the vessel’s first port of
arrival in China for inspection or appraisement and send a copy of the inspection report to the harbour superintendency administration
for the record.

The harbour superintendency administration may entrust the inspection and appraisement mentioned in the preceding paragraph to relevant
unite or department and the expenses shall be borne by the owner or manager of the vessel or installation.

If the accident happening to a vessel or installation involved fire or explosion, the captain or the person in charge of installation
must apply to a fire fighting brigade in the public security organ for an appraisement and send a copy of the appraisement report
to the harbour superintendency administration for the record.

CHAPTER III INVESTIGATION

Article 10. Harbour superintendency administration shall be responsible for the investigation of the maritime traffic accidents which happen
in the waters of their respective harhour areas.

The maritime traffic accidents which happen outside the waters of harbour areas shall be investigated by the harbour superintendency
administration of the nearest harbour or that of the vessel’s first port of arrival in the People’s Republic of China. The Harbour
Superintendency Administration Bureau of the People’s Republic of China may designate a harbour superintendency administration to
carry out the investigation, if the Bureau deems it necessary.

When the harbour superintendency administration concerned deems it necessary, he may request relevant departments and social organizations
to take part in the investigation of the accidents.

Article 11. Upon receiving accident reports, the harbour superintendency administration shall promptly carry out investigation. Investigation
shall be carried out in an objective and all-round manner and must not be restricted by the information provided by the parties involved
in the accidents. If the investigation warrants it, the harbour superintendency administration has the right to:

(1) Question the persons concerned;

(2) Demand written material and testimonial from the persons under investigation;

(3) Demand the parties involved to provide logbooks, engine room logs, wheel-bell records, radio operation logs, course records, charts,
data of the vessel, functions of the navigation equipment and instruments and other necessary original papers and materials;

(4) Examine certificates of the vessels, installations and the relevant equipment and certificates of the personnel and verify seaworthiness
of the vessels and technical conditions of the installations before the accident;

(5) Examine the damage to the vessels, installations and goods and assertain casualties of personnel;

(6) Survey the scene of the accident and collect relevant material evidences.

During the investigation, the harbour superintendency administration may use recording, photographing and video equipment and may
resort to other means of investigation permitted by law.

Article 12. The persons being investigated must subject themselves to the investigation, honestly state the relevant circumstances of the accident
and provide authentic papers and materials.

In conducting investigations, the personnel of harbour superintendency administration shall produce their certificates to the persons
being investigated.

Article 13. If the investigation of a maritime traffic accident so requires, the harbour superintendency administration may order the vessel(s)
involved to sail to the spot for investigation. Except when its (their) own safety is in danger, the vessel(s) involved must not
leave the said spot without the permission of the harbour superintendency administration.

Article 14. The organs respectively in charge of public security, state security, supervision, procuratorial work, and judicial work, as well
as maritime arbitration committees and other organs and personnel designated under the law may consult, make extracts of or duplicate
the findings concerning maritime traffic accidents prepared by the harbour superintendency administrations for the purpose of handling
cases. judicial organs may borrow these findings if they are really needed in the trials.

CHAPTER IV HANDLING OF ACCIDENTS

Article 15. The harbour superintendency administrations shall, according to the investigations of maritime traffic accidents, work out the Report
on Findings Concerning Maritime Traffic Accidents, in which causes of the accident shall be ascertained and the responsibility of
the persons concerned be determined. A serious accident shall be reported to the local procuratorial organ.

Article 16. The Report on Findings Concerning the Maritime Traffic Accident shall include the following items:

(1) Basic conditions of the vessels or installations and the main data;

(2) Names and addresses or the owners or managers of the vessels or installations;

(3) When and where the accident happened, the course of the accident, weather and sea conditions at the time, seriousness of the damage;

(4) Causes of the accident and evidences thereof;

(5) Liabilities of the parties involved and evidences thereof;

(6) Other relevant information.

Article 17. The harbour superintendency administrations may, according to the nature and seriousness of their liabilities, mete out the following
penalties according to law to the persons who are held responsible for the maritime traffic accidents:

(1) Warnings, fines, suspension or revocation of their job certificates may be resorted to when the crew, pilots or personnel working
on the installations are of Chinese nationality;

(2) Warnings and fines may be imposed on the crew or the personnel working on the installations who are of foreign nationalities or
their faults may be reported to the competent organs of their respective countries.

Article 18. If it is necessary to pursue the administrative responsibility of the persons involved, owners or managers of the vessels or installations
who are held responsible for the maritime traffic accidents, the harbour superintendency administrations shall submit the cases to
their competent organs or the organs in charge of administrative supervision, With respect to persons whose action constitutes a
crime, the judicial authorities shall, in accordance with the law, investigate their criminal responsibility.

Article 19. The harbour superintendency administration may, in the light of the causes of the maritime traffic accidents, order the owners and
managers of the vessels involved or installtions involved to strengthen safety control over their vessels or installations within
a time limit. In case of refusal to strengthen safety administration or failure to meet the safety requirements within the said time
limit, the harbour superintendent has the right to order the vessels or installations to suspend navigation, change courses or suspend
operation and may adopt other necessary compulsory measures.

CHAPTER V MEDIATION

Article 20. If a maritime traffic accident happening to vessels or installations gives rise to a civil dispute over tort liability, the parties
may apply to the harbour superintendency administration for mediation.

Mediations must be carried out on the principles of voluntariness and impartiality and no coercion shall be allowed.

Article 21. If s suit has been brought before a maritime court or an application sent to a maritime arbitration organ, the parties to the civil
disputes mentioned in the preceding article shall not apply to the harbour superintendency administration for mediation.

Article 22. Written applications for mediations shall be submitted, by the parties within 30 days after the accident happened, to the harbour
superintendency administration responsible for the investigation of the accident. If guarantees are demanded by the harbour superintendency
administration the parties shall provide papers of economic compensation guarantee.

Article 23. If an agreement is reached after mediation, the harbour superintendency administration shall prepare a mediation document. The mediation
document shall include the following items: names and addresses of the parties, names and positions of the legal representatives,
main points of the disputes, liabilities of the parties, content of the agreement, payment of the mediation fees and the time limit
for the execution of the mediation agreement. The parties concerned shall jointly sign the mediation document and the superintendency
administration shall confirm it by affixing its seal thereon. One copy of the mediation document shall be held by each party concerned
and one copy kept by the harbour superintendency administration.

Article 24. All the parties concerned shall execute the agreement of mediation of their own accord. If the parties renegue or fail to execute
the agreements within the time limit after the agreement is reached, the mediation shall be regarded as failing.

Article 25. If a party to a civil dispute who has applied to the harbour superintendency administration for mediation wants to withdraw from
it, the party shall send a written application to the harbour superintendency administration for mediation cancellation and notify
the other party to the dispute at the same time.

Article 26. If the harbour superintendency administration fails to make the parties reach an agreement of mediation within 3 months as of the
date of receipt of the application for mediation, the mediation may be announced as failing.

Article 27. If the parties do not want mediation or the mediation has failed, they may bring a suit in a maritime court or apply to a maritime
arbitration organ for arbitration.

Article 28. Anyone who has applied to the harbour superintendency administration for mediation shall pay mediation fees. Standards for mediation
charges shall be worked out by the Ministry of Communications in conjunction with the State Administration for Commodity Prices and
the Ministry of Finance.

If an agreement is reached through mediation, the mediation charge shall be shared according to the seriousness of the parties’ faults
or the agreed proportions. If mediation has failed, the expenses shall be shared out equally among the parties.

CHAPTER VI PENALTIES

Article 29. The harbour superintendency administration may, depending on the circumstances, warn or impose a fine of not more than 200 yuan on
the persons concerned (natural person), or impose a warning or a fine of not more than 5,000 yuan on the owners or managers of the
vessels, if they violate these Regulations in one of the following manners:

(1) Failing to report the accident to the harbour superintendency administration or submit the Report Concerning Maritime Traffic
Accident or duplicate copies of the documents of court verdict, arbitration award or mediation document as stipulated in Article
32 of these Regulations within the time limit;

(2) Failing to sail to the spot designated by the harbour superintendency administration or leaving the designated spot without the
permission of the harbour superintendency administration when nothing is endangering the vessel (s);

(3) Affecting the progress of the investigations or causing losses to the departments concerned because the content of the accident
report or the Report Concerning Maritime Traffic Accident does not meet the stipulated requirement or it is not truthful;

(4) Affecting the investigation of the accident by violating the provisions of Article 9;

(5) Refusing to be investigated or unjustifiably obstructing and interfering with the investigation by the harbour superintendency
administration;

(6) Intertionally concealing facts or providing false testimonial during investigation.

With respect to persons whose acts have constituted a crime as specified in paragraphs (5) and (6) of this Article, the judicial organs
shall investigate their criminal responsibility according to law.

Article 30. Administrative sanctions shall be given by administrative supervision organs or relevant units to those persons working in harbour
superintendency administrations who violate the provisions of these Regulation, neglect their duties, abuse their powers, engage
in malpractices for selfish ends and ask for and accept bribes. If their acts constitue crimes, their criminal responsibilities shall
be investigated by judicial organs according to law.

Article 31. If the parties concerned do not agree with the penalties imposed on them by the harbour superintendency administration according
to the provisions of these Regulations, they may bring a suit in a people’s court according to law.

CHAPTER VII SPECIAL PROVISIONS

Article 32. If maritime traffic accidents happen to vessels of Chinese nationality outside the coastal waters of the People’s Republic of China,
their owners or managers shall report to the harbour superintendency administration where the vessels have registered and shall submit
the Report Concerning Maritime Traffic Accident within 60 days after the accidents happened. If lawsuits, arbitrations of mediations
concerning the accidents take place abroad, the owners or managers shall submit copies or photocopies of the court verdicts, awards
or mediation documents to the harbour superintendent of the harbour where the vessels have registered for the record within 60 days
after the termination of the lawsuits, arbitration or mediation.

Article 33. If crew members of Chinese nationality holding job qualification certificates of the People’s Republic of China are held responsible
for maritime traffic accidents while they are working on board foreign vessels, their respective units in China shall submit the
Report Concerning Maritime Traffic Accidents to the harbour superintendency administration issuing the job qualification certificates
within 60 days after the accidents happened.

The maritime traffic accidents mentioned in the first paragraph of this Article and in Article 32 shall be investigated and dealt
with in accordance with the relevant provisions of these Regulations.

CHAPTER VIII SUPPLEMENTARY PROVISIONS

Article 34. With respect to those operations which have violated the regulations concerning maritime traffic safety and have constituted latent
threats of potential major accidents although direct traffic accidents have not been caused, the harbour superintendency administration
may carry out investigation and mete out penalties according to the provisions of these Regulations.

Article 35. The maritime traffic accidents which have caused marine environmental pollution shall be dealt with in accordance with the relevant
laws and regulations of China concerning marine environmental protection.

Article 36. These Regulations shall be interpreted by the Ministry of Communications.

Article 37. These Regulations shall go into effect as of the date of promulgation.

PROCEDURES FOR THE ADMINISTRATION OF CHINESE FINANCIAL INSTITUTIONS ABROAD

Category	BANKING	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1990-04-13	Effective Date	1990-04-13

Procedures for the Administration of Chinese Financial Institutions Abroad

(Approved by the State Council on March 12, 1990 and promulgated by Decree

No.1 of the People’s Bank of China on April 13, 1990)

Article 1 These Procedures are formulated for the purpose of
strengthening the administration of Chinese financial institutions outside
China and ensuring the sound development of financial undertakings.

Article 2 All banking and non-banking financial institutions inside China
(hereinafter collectively referred to as “domestic financial institutions”),
all non-financial corporations, enterprises and other organizations inside
China (hereinafter collectively referred to as “domestic non-financial
institutions”), all Chinese-invested banking and non-banking financial
institutions outside China (hereinafter collectively referred to as
“Chinese-invested financial institutions abroad”), and all Chinese-invested
non-financial corporations, enterprises and other organizations outside China
(hereinafter collectively referred to as “Chinese-invested non-financial
institutions abroad”) that wish to invest in the establishment or purchase of
a financial institution abroad shall abide by these Procedures.

The term “financial institutions abroad” referred to in the preceding
paragraph denotes institutions which are established or purchased abroad by
domestic financial institutions or non-financial institutions, or
Chinese-invested financial institutions or non-financial institutions abroad
and which engage in such financial business operations as deposits, loans,
discount of negotiable instruments, settlements, trust investment, financial
lease, guarantees, insurance and deals in securities.

Article 3 The organ to examine, approve and administer the establishment
or purchase of financial institutions abroad is the People’s Bank of China.

Article 4 A domestic financial institution that applies for the
establishment or purchase of a financial institution abroad shall satisfy
the following requirements:

1) it has been approved by the State Council or the People’s Bank of
China, has been registered in accordance with the law and holds a Licence
of Financial Business Operations issued by the People’s Bank of China;

2) it has been permitted by the State Administration of Foreign Exchange
Control to handle foreign exchange operations, holds a Licence of Foreign
Exchange Operations issued by the State Administration of Foreign Exchange
Control and has the experience in handling foreign exchange operations for
over three years and the required specialized personnel;

3) it possesses legitimate sources of funds in foreign exchange; and

4) it possesses a foreign exchange fund of its own equivalent to no less
than 80 million Renminbi yuan.

Article 5 A domestic non-financial institution that applies for the
establishment or purchase of a financial institution abroad shall satisfy
the following requirements:

1) it is a large corporation or enterprise that has been established
upon approval by the department concerned and has been registered in
accordance with the law;

2) it has a group corporation or group enterprise or other large
enterprise operating abroad with a relatively solid foundation and good
prospect of making profit;

3) it has been permitted by the department in charge to establish a
financial institution abroad and possesses a foreign exchange fund of its own
equivalent to no less than 100 million Renminbi yuan; and

4) it possesses the specialized personnel required for handling financial
and foreign exchange operations.

Article 6 A Chinese-invested financial institution or non-financial
institution abroad that applies for the establishment or purchase of a
financial institution abroad shall satisfy the following requirements:

1) it has been established abroad upon approval by the department in
charge in accordance with the law, possessing the official document of
approval and the documents certifying that it is engaged in legitimate
business operations in the locality;

2) the Chinese-invested financial institutions in the locality where the
intended financial institution is to be established or purchased are in a
relatively weak position, which renders it necessary to establish the
financial institution; and

3) the application submitted is in conformity with the law of the country
or region concerned.

Article 7 The application for the establishment or purchase of a
financial institution abroad of shall be submitted for approval in accordance
with the following provisions:

1) the application by a domestic financial institution for the
establishment abroad a representative agency, a branch office, or for the
establishment abroad of a Chinese-invested financial institution or a
Chinese-foreign joint financial institution, or for the purchase of a
financial institution abroad, shall be submitted to the People’s Bank of
China for approval;

2) the application by a domestic non-financial institution for the
establishment abroad of a Chinese-invested financial institution or a
Chinese-foreign joint financial institution or for the purchase of a financial
institution abroad shall, upon verification and consent by the department in
charge which has solicited the opinions of the Ministry of Foreign Economic
Relations and Trade, be submitted to the People’s Bank of China for approval;
and

3) the application by a Chinese-invested financial institution or non-
financial institution abroad for the establishment or purchase of a financial
institution abroad shall, after its domestic investing unit has solicited the
opinions of the Ministry of Foreign Economic Relations and Trade, be submitted
to the People’s Republic of China for approval.

Article 8 For the establishment or purchase of a financial institution
abroad, the domestic investing unit concerned shall apply to the People’s
Bank of China. The application shall clearly state the name of the financial
institution to be established or purchased, its business scope, the
conditions, and the necessity therefor. After the content has been examined,
verified and filed as an item for processing by the People’s Bank of China,
the application shall be submitted in accordance with the provisions of these
Procedures.

The People’s Bank of China shall examine the application submitted by the
applying unit and shall, within three months of receipt of the same, make the
decision as to whether or not it will grant the approval.

Article 9 After the establishment or purchase of a financial institution
abroad has been approved, the domestic investing unit concerned shall, on
the strength of the document of approval by the People’s Bank of China and
in accordance with the pertinent provisions, approach the State Administration
of Foreign Exchange Control and go through the procedures to remit abroad
the required foreign exchange.

Article 10 A domestic financial institution that applies for the
establishment abroad of a representative agency shall submit the following
documents:

1) an application duly signed by the chief person in charge of the
applying unit, which shall include the name of the proposed representative
agency, its address, the name of the chief representative and his/her
curriculum vitae; and

2) the estimated expense of the proposed agency and the certificate of
its source of foreign exchange.

Article 11 A domestic financial institution that applies for the
establishment abroad of a branch office shall submit the following documents:

1) an application duly signed by the chief person in charge of the
applying unit, which shall include the name of the proposed branch office,
its address, the amount of its operating funds, the type(s) of business
operations, the curriculum vitae of the chief person in charge;

2) the statements of assets and liabilities, the statements of loss and
profit, and the financial reports of the applying unit for the three years
prior to the submission of the application;

3) the feasibility study report; and

4) other relevant documents required by the People’s Bank of China.

Article 12 A domestic financial institution or non-financial institution
or a Chinese-invested financial institution or non-financial institution
abroad that applies for the establishment abroad of a Chinese foreign joint
financial institution shall submit the following documents:

1) an application duly signed by the chief person in charge of the
applying unit, which shall include the name of the proposed Chinese-invested
financial institution, its address, its registered capital and the actual
capital, the source(s) of funds, the type(s) of business operations and the
curriculum vitae of the chief person in charge;

2) the statements of assets and liabilities, the statements of loss and
profit, and the financial reports of the applying unit for the three years
prior to the submission of the application;

3) the feasibility study report; and

4) other relevant documents required by the People’s Bank of China.

Article 13 A domestic financial institution or non-financial institution
or a Chinese-invested financial institution or non-financial institution
abroad that applies for the establishment abroad of a Chinese-foreign joint
financial institution shall submit the following documents:

1) an application duly signed by the chief person in charge of the
applying unit, which shall include the name of the proposed Chinese-foreign
joint financial institution, its registered capital and the actual capital,
the type(s) of business operations, the names of the respective investing
parties and the percentage of their respective capital contributions, the
source(s) of funds of the Chinese investor(s), and the curriculum vitae of
the chief person in charge;

2) the statements of assets and liabilities, the statements of loss and
profit, and the financial reports of the applying unit for the three years
prior to the submission of the application;

3) the agreement, the contract and the articles of association of the
joint financial institution initialled by the respective investing parties
thereto;

4) the feasibility study report; and

5) other relevant documents required by the People’s Bank of China.

Article 14 A domestic financial institution or non-financial institution
or a Chinese-invested financial institution or non-financial institution
abroad that applies for the purchase of a financial institution abroad shall
submit the following documents:

1) an application duly signed by the chief person in charge of the
applying unit, which shall include the name of the financial institution that
is to be purchased, its address, the articles of association, the total
capital and total assets, the state of affairs of the institution and its
personnel, its financial position, the reasons of the purchase and the
objectives thereof, the amount of the fund needed for the purchase, and the
source(s) of the fund;

2) the statements of assets and liabilities, the statements of loss and
profit, and the financial reports of the applying unit for the three years
prior to the submission of the application;

3) the feasibility study report; and

4) other relevant documents required by the People’s Bank of China.

Article 15 If a financial institution abroad is to make any one of the
following changes, its domestic investing unit shall in advance submit an
application to the People’s Bank of China for examination and approval:

1) if a representative agency is to be upgraded to a branch office;

2) if a representative agency, or a branch office, or a Chinese-invested
financial institution or a Chinese-foreign joint financial institution is to
be disbanded; and

3) if the percentages of the shares held by the respective investing
parties to a Chinese-foreign joint financial institution are to be adjusted
or if the capital is to be increased.

Article 16 The domestic investing unit of a financial institution abroad
shall, prior to the date of July 31 every year, submit to the provincial
branch bank of the People’s Bank of China in the locality where it is situated
the work report of the financial institution abroad for the first half of
the year, which shall include the changes in the personnel of the institution,
a breakdown of the deposits and loans, a breakdown of the money sent abroad
or received therefrom; a breakdown of the import and export settlements, an
analysis of the projects of investment and an analysis of the business
transactions in foreign exchange, securities and gold. The afore-said report
shall then be transmitted to the People’s Bank of China, by its provincial
branch bank.

Article 17 The domestic investing unit of a financial institution abroad
shall, prior to the date of March 31 every year, submit to the provincial
branch bank of the People’s Bank of China the statement of assets and
liabilities, the statement of loss and profit, and the annual work report of
the financial institution abroad for the previous fiscal year, which shall
then be transmitted to the People’s Bank of China by its provincial branch
bank.

Article 18 The People’s Bank of China and its various provincial branch
banks shall have the right to exercise supervision over the work of the
financial institutions abroad.

Article 19 If any party, in violation of the provisions in Article 7 of
these Procedures, establishes or purchases a financial institution abroad
without the approval of the People’s Bank of China, the People’s Bank of China
shall have the right to freeze a corresponding amount of the foreign exchange
of the domestic investing unit thereof or of its Renminbi deposits, order it
to disband the financial institution abroad or set a deadline for it to make
up for the procedures of application for examination and approval, and conduct
close investigations into the liability of the chief person in charge of
the unit and of those who are directly responsible therefor.

If any party violates the provisions in Article 15 of these Procedures,
the People’s Bank of China shall have the right to freeze a corresponding
amount of the foreign exchange of the domestic investing unit thereof or of
its Renminbi deposits and order it to stop the business operations of the
financial institution abroad for rectification.

If any party violates the provisions in Articles 16 and 17 of these
Procedures, to a serious extent, the People’s Bank of China may impose a fine
of 100,000 Renminbi yuan or less on the domestic investing unit thereof.

Any party violates the regulations concerning foreign exchange control
shall be penalized in accordance with the pertinent provisions of the State.

Article 20 If any party has, before these Procedures go into effect,
established or purchased a financial institution abroad without approval of
the People’s Bank of China, it shall, within the time limit prescribed by
the People’s Bank of China, make up for the procedures of application for
examination and approval.

Article 21 These Procedures shall not apply to the enterprises with
foreign investment inside China.

Article 22 The People’s Bank of China shall be responsible for the
interpretation of these Procedures.

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

NATIONALITY LAW

Nationality Law of the People’s Republic of China

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

Whole Document NATIONALITY LAW OF THE PEOPLE’S REPUBLIC OF CHINA(Adopted at the Third Session of the Fifth National
People’sCongress, promulgated by Order No. 8 of the Chairman of the StandingCommittee of the National People’s Congress
on and effective as ofSeptember 10, 1980)Article 1This Law is applicable to the acquisition, loss and restoration ofnationality
of the People’s Republic of China.Article 2The People’s Republic of China is a unitary multinational state; personsbelonging to
any of the nationalities in China shall have Chinesenationality.Article 3The People’s Republic of China does not recognize
dual nationality for anyChinese national.Article 4Any person born in China whose parents are both Chinese nationals or oneof whose
parents is a Chinese national shall have Chinese nationality.Article 5Any person born abroad whose parents are both Chinese nationals
or one ofwhose parents is a Chinese national shall have Chinese nationality. But aperson whose parents are both Chinese nationals
and have both settledabroad, or one of whose parents is a Chinese national and has settledabroad, and who has acquired foreign
nationality at birth shall not haveChinese nationality.Article 6Any person born in China whose parents are stateless or of
uncertainnationality and have settled in China shall have Chinese nationality.Article 7Foreign nationals or stateless persons who
are willing to abide by China’sConstitution and laws and who meet one of the following conditions may benaturalized upon approval
of their applications:(1) they are near relatives of Chinese nationals;(2) they have settled in China; or(3) they have other legitimate
reasons.Article 8Any person who applies for naturalization as a Chinese national shallacquire Chinese nationality upon approval
of his application; a personwhose application for naturalization as a Chinese national has beenapproved shall not retain
foreign nationality.Article 9Any Chinese national who has settled abroad and who has been naturalizedas a foreign national or has
acquired foreign nationality of his own freewill shall automatically lose Chinese nationality.Article 10Chinese nationals who meet
one of the following conditions may renounceChinese nationality upon approval of their applications:(1) they are near relatives
of foreign nationals;(2) they have settled abroad; or(3) they have other legitimate reasons.Article 11Any person who applies for
renunciation of Chinese nationality shall loseChinese nationality upon approval of his application.Article 12State functionaries
and military personnel on active service shall notrenounce Chinese nationality.Article 13Foreign nationals who once held
Chinese nationality may apply forrestoration of Chinese nationality if they have legitimate reasons; thosewhose applications
for restoration of Chinese nationality have beenapproved shall not retain foreign nationality.Article 14Persons who wish to
acquire, renounce or restore Chinese nationality, withthe exception of the cases provided for in Article 9, shall go through theformalities
of application. Applications of persons under the age of 18may be filed on their behalf by their parents or other
legalrepresentatives.Article 15Nationality applications at home shall be handled by the public securitybureaus of the municipalities
or counties where the applicants reside;nationality applications abroad shall be handled by China’s diplomaticrepresentative
agencies and consular offices.Article 16Applications for naturalization as Chinese nationals and for renunciationor restoration
of Chinese nationality are subject to examination andapproval by the Ministry of Public Security of the People’s Republic
ofChina. The Ministry of Public Security shall issue a certificate to anyperson whose application has been approved.Article 17The
nationality status of persons who have acquired or lost Chinesenationality before the promulgation of this Law shall remain
valid.Article 18This Law shall come into force on the day of its promulgation.

REGULATIONS ON REPORTING AND HANDLING FATAL ACCIDENTS OF WORKERS AND EMPLOYEES IN ENTERPRISES

Regulations on Reporting and Handling Fatal Accidents of Workers and Employees in Enterprises

(Effective Date:1991.03.01–Ineffective Date:)

CHAPTER I GENERAL PRINCIPLES CHAPTER II REPORTING OF ACCIDENTS CHAPTER III INVESTIGATION OF ACCIDENTS CHAPTER IV HANDLING OF ACCIDENTS
CHAPTER V SUPPLEMENTARY PROVISIONS

Article 1 The present regulations are drawn up to ensure the timely reporting, tabulating, investigating and handling fatal accidents involving
workers and employees, taking active measures of prevention, and forestalling such accidents.

Article 2 The present regulations are applicable to all enterprises within the territory of the People’s Republic of China.

Article 3 The fatal accidents referred to in the present regulations are those causing personal harms and acute intoxication of workers and
employees in the course of work.

Article 4 The work of reporting, tabulating, investigating and handling fatal accidents must be based on the principle of relying on facts
and being scientific.

CHAPTER II REPORTING OF ACCIDENTS

Article 5 When a fatal accident happened, the injured or whoever at the site of accident should immediately report directly or via their superiors
to the top executives of the enterprise.

Article 6 On receiving the report of an accident causing serious injuries, deaths, or major casualties, the top executives of the enterprise
should immediately report to the department in charge of the enterprise and the local labour department, the department of public
security, people’s procuratorate and the trade unions.

Article 7 On receiving the report of a fatal or major fatal accident, the department in charge of the enterprise and the labour department
should immediately report to their superior authorities up to the departments in charge and the labour departments in the province,
autonomous region and municipality directly under the Central Government. Major fatal accidents should be reported to the departments
in charge and the labour departments in the State Council.

Article 8 The enterprise where a fatal or major fatal accident happened should protect the site of the accident and take quick and necessary
measures to save the lives of personnel and property, and prevent the spreading of the accident.

CHAPTER III INVESTIGATION OF ACCIDENTS

Article 9 In case of an accident causing light or serious injuries, the top executives of an enterprise or their appointees should organize
an accident investigation team with the participation of personnel from the production, technical and safety sectors as well as trade
union representatives to make investigation.

Article 10 In case of a fatal accident, the departments in charge of the enterprise should form an accident investigation team together with
the local municipal (or its equivalent) labour department, department of public security, and trade unions to make investigation.

In case of a major fatal accident, the departments in charge of the enterprise at the provincial, autonomous regional and municipal
(municipalities under the Central Government) levels or the departments in charge in the State Council should form an accident investigation
team together with the labour department, department of public security, the procuratorate and trade union at the same level to make
investigation.

The accident investigation teams formed in accordance with the provisions of the two preceding paragraphs of the present Article should
invite the participation of the people’s procuratorate; they may also invite the participation of other departments and specialists.

Article 11 Members of the accident investigation team should satisfy the following conditions:

(1) Specialized in any one aspect required in the investigation of an accident;

(2) Being not a party of direct interest to the accident.

Article 12 Duties of the accident investigation team:

(1) Find out clearly the causes, occurrence, casualties and economic losses due to the accident;

(2) Determine the person(s) responsible for the accident;

(3) Put forward its opinions on the handling of the accident and proposals on the preventive measures to be taken;

(4) Write out the report on the investigation of the accident.

Article 13 The accident investigation team has the right to ask for relevant information and data from the enterprise concerned and from related
units and personnel, and none of them should refuse its request.

Article 14 After clarifying the circumstances of the accident, if the accident investigation team could not arrive at a unanimous view on the
analysis of the accident and the measures to deal with those responsible, the labour department has the right to put forward its
conclusions. After this, if opinions still differ, the team should report the case to a superior labour department to deal with the
case together with other departments concerned. Following this, if opinions yet differ, the case should be submitted to the people’s
government at the same level for arbitration. However, all this should not exceed the time limit imposed on handling the accident.

Article 15 No unit or person is allowed to impede or interfere in the normal work of the accident investigation team.

Article 16 The opinions of the accident investigation team for handling the accident and its proposals for preventive measures should be carried
out by the enterprise where the accident occurred and the department in charge of the enterprise.

Article 17 In case of a fatal accident caused by a neglect of safety in production, giving directions in contravention to established rules
and regulations, working against rules, failure to observe duties or not taking effective measures in face of hidden hazards or dangers,
the department in charge of the enterprise or the enterprise itself in accordance with relevant provisions of the State should mete
out administrative punishment to top executives of the enterprise or the persons directly responsible. In case of a crime, the judicial
organs should investigate and affix the penal responsibilities in accordance with the law.

Article 18 If in contravention to the present regulations an enterprise fail to report the occurrence of a fatal accident, or give false information,
intentionally delay reporting, intentionally destroy the site of accident, or refuse to accept investigation and refuse to provide
relevant information and data without proper reasons, the departments concerned should mete out administrative punishment toward
the executives of the unit in question and those directly responsible. In case of a crime, the judicial organs should make investigations
and affix the penal responsibilities in accordance with the law.

Article 19 In the course of investigating and handling a fatal accident, if there were cases of derogation of duties, practice of favouritism
or taking retaliatory measures, the relevant units should mete out administrative punishment toward those responsible according to
State provisions. In case of a crime, the judicial organs should make investigations and affix the penal responsibilities in accordance
with the law.

Article 20 The work of handling a fatal accident should conclude within 90 days. In special cases, it should not exceed 180 days. After winding
up a case of a fatal accident, the results should be publicly announced.

CHAPTER V SUPPLEMENTARY PROVISIONS

Article 21 The method of tabulation and the forms of tables of fatal accidents shall be prepared by the labour departments under the State Council
together with the statistical departments under the State Council in accordance with relevant stipulations.

The method of determining economic losses due to a fatal accident and the method of classification of accidents shall be prepared
by the labour departments and other relevant departments under the State Council. The existing laws and administrative regulations
otherwise drawn up for the investigation and handling of fatal accidents should be observed as they are.

Article 22 The labour departments shall be responsible for the supervision and control of enterprises implementing the present regulations.

Article 23 In case of extraordinarily major accidents, it should be handled in accordance with relevant State provisions.

Article 24 Fatal accidents in government organs, institutions and people’s organizations should be handled with reference to the present regulations.

Article 25 The right of interpretation of the present regulations rests with the labour departments of the State Council.

Article 26 The present regulations come into effect as from May 1, 1991. At the same time, the ” Code of Reporting Fatal Accidents of Workers
and Employees” issued by the State Council in 1956 becomes null

SUPPLEMENTARY PROVISIONS OF THE STANDING COMMITTEE OF THE NATIONAL PROPLE’S CONGRESS REGARDING THE IMPOSITION OF PUNISHMENT IN RESPECT OF OFFENCES OF TAX EVASION AND REFUSAL TO PAY TAX

Category	CRIMINAL LAW	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	In Force
Date of Promulgation	1992-09-04	Effective Date	1993-01-01

Supplementary Provisions of the Standing Committee of the National Prople’s Congress Regarding the Imposition of Punishment in Respect of Offences of Tax Evasion and Refusal to Pay Tax

(Adopted at the 27th Meeting of the Standing Committee of the Seventh

National People’s Congress on September 4, 1992, promulgated by Order No.61
of the President of the People’s Republic of China on September 4, 1992)
(Editor’s Note: In accordance with the provisions of Article 452 of the
Criminal Law of the People’s Republic of China revised at the Fifth Session
of the Eighth National People’s Congress on March 14, 1997, and effective on
October 1, 1997, the provisions regarding administrative penalties and
administrative measures in this Decision shall continue to be in force and
the provisions regarding criminal liability have been incorporated into the
revised Criminal Law)

With a view to imposing punishment in respect of offences of tax evasion
and refusal to pay tax, the following supplementary provisions are made to the
Criminal Law:

1. “Tax evasion” means that a taxpayer fails to pay, or underpays the
amount of tax payable by means forging, altering, concealing, or destroying
accounting books or vouchers for the accounts without authorization, or
overstating expenses, or omitting or understating incomes in accounting books,
or filing false tax declaration. Where the amount of tax evaded accounts for
more than ten percent of the amount of tax payable and where the amount in
question is over 10,000 yuan, or where the taxpayer commits tax evasion again
after having been twice subjected to administrative sanctions by the tax
authorities for tax evasion, the taxpayer shall be subject to fixed-term
imprisonment of not more than three years or criminal detention as well as a
fine of not more than five times the amount of tax evaded. Where the amount of
tax evaded accounts for more than thirty percent of the amount of tax payable
and where the amount in question is over 100,000 yuan, the taxpayer shall be
subject to fixed-term imprisonment of not less than three years but not more
than seven years as well as a fine of not more than five times the amount of
tax evaded.

Where a withholding agent by means specified in the preceding paragraph
fails to pay, or underpays the tax which has been withheld or collected and
where the amount in question accounts for more than ten percent of the amount
of tax payable and is over 10,000 yuan, the withholding agent shall be
punished in accordance with the provisions of the preceding paragraph.

Whoever has repeatedly committed any offence specified in the preceding
two paragraphs without having been subjected to punishment shall be punished
on the basis of the accumulated amount.

2. Where a taxpayer that has not paid the tax due adopts the means of
transferring or concealing its property, thus resulting in the tax
authorities’ inability to pursue the payment of tax in arrears, and where the
amount in question is more than 10,000 yuan but less than 100,000 yuan, the
taxpayer shall be subject to fixed-term imprisonment of not more than
three years or criminal detention as well as a fine of not more than five
times the amount of tax in arrears. Where the amount in question is over
100,000 yuan, the taxpayer shall be subject to fixed-term imprisonment of
not less than three years but not more than seven years as well as a fine of
not more than five times the amount of tax in arrears.

3. Where an enterprise or institution commits any offence specified
herein in Article 1 or Article 2, the enterprise or institution shall be fined
in accordance with the provisions herein of Article 1 or Article 2, and the
persons in charge and other persons directly responsible shall be subject to
fixed-term imprisonment of not more than three years or criminal detention.

4. Where a taxpayer fails to pay, or underpays the amount of tax payable
by virtue of bribing tax officials, the taxpayer shall be investigated for
criminal responsibilities based on the crime of bribery, and shall also be
subject to a fine of not more than five times the amount of tax which has
not been paid or has been underpaid.

5. Where an enterprise or institution has fraudulently obtained from the
State a tax refund for exports by deceptive means such as filing false export
declaration with regard to the commodities it produces or operates, and where
the amount of the tax refund in question is over 10,000 yuan, the enterprise
or institution shall be subject to a fine of not more than five times the
amount of the tax refund which has been fraudulently obtained, and the
persons in charge and other persons directly responsible shall be subject to
fixed-term imprisonment of not more than three years or criminal detention.

Where a unit other than those specified in the preceding paragraph or an
individual has fraudulently obtained from the State a tax refund for exports,
the unit or individual shall be investigated for criminal responsibilities
based on the crime of fraud, and shall also be subject to a fine of not more
than five times the amount of the tax refund which has been fraudulently
obtained. Where a unit commits any offence specified in this paragraph,
a fine shall be imposed on the unit and, in addition, the persons in charge
and other persons held directly responsible shall be investigated for
criminal responsibilities based on the crime of fraud.

6. “Refusal to pay tax” means the refusal to pay tax with resort to
violence or menace. Whoever has thus refused to pay tax shall be subject to
fixed-term imprisonment of not more than three years or criminal detention
as well as a fine of not more than five times the amount of tax he has
refused to pay. If the circumstances are serious, the offender shall be
subject to fixed-term imprisonment of not less than three years but not more
than seven years as well as a fine of not more than five times the amount of
tax he has refused to pay.

Whoever has refused to pay tax with resort to violence and has caused
serious bodily injury to or death of another person shall be subjected to a
heavier punishment based on the crime of inflicting bodily injury or
committing homicide, and shall also be imposed a fine in accordance with the
provisions of the preceding paragraph.

7. Where an offence specified herein is committed, the tax authorities
shall pursue the payment of the amount of tax which has not been paid, or
has been underpaid, or is in arrears, or has been refused to pay, or has been
fraudulently obtained. Where the offender is exonerated from criminal
punishment according to law, the tax authorities shall, in addition to
pursuing the payment of the amount of tax which has not been paid, or has
been underpaid, or is in arrears, or has been refused to pay, or has been
fraudulently obtained, impose on him a fine of not more than five times the
amount of tax which has not been paid, or has been underpaid, or is in
arrears, or has been refused to pay, or has been fraudulently obtained.

8. These Provisions shall come into force as of January 1, 1993.

MEASURES FOR THE ADMINISTRATION OF THE STATE COUNCIL ON PARTICIPATION OF FOREIGN FIRMS IN THE SALVAGE OF SUNKEN SHIPS AND OBJECTS IN THE CHINESE COASTAL WATERS

The State Council

Measures for the Administration of the State Council on Participation of Foreign Firms in the Salvage of Sunken Ships and Objects
in the Chinese Coastal Waters

Decree [1992] No.102 of the State Council

July 12, 1992

Article 1

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

Article 2

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

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

Article 3

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

(1)

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

(2)

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

(3)

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

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

(4)

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

(5)

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

Article 4

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

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

Article 5

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

Article 6

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

(1)

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

(2)

To establish a Chinese-foreign salvage cooperative enterprise with a Chinese operator of salvage and undertake the salvage activities.

Article 7

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

Article 8

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

Article 9

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

Article 10

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

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

Article 11

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

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

Article 12

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

Article 13

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

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

Article 14

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

Article 15

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

(1)

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

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

(2)

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

(3)

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

Article 16

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

Article 17

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

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

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

Article 18

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

Article 19

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

Article 20

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

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

Article 21

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

Article 22

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

Article 23

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

The State Council
1992-07-12

SUPPLEMENTARY PROVISIONS OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS CONCERNING THE IMPOSITION OF PUNISHMENTS IN RESPECT OF OFFENSES OF TAX EVASION AND REFUSAL TO PAY TAX

The Standing Committee of the National People’s Congress

Order of the President of the People’s Repbulic China

No. 61

“Supplementary Provisions of the Standing Committee of the National People’s Congress Concerning the Imposition of Punishments in
Respect Of offenses of Tax Evasion and Refusal to Pay Tax” has been adopted at the 27th Meeting of the Standing Committee of the
Seventh National People’s Congress, and hereby promulgated, and will come into force on January 1, 1993.

President of the People’s Republic of China Yang Shangkun

September 4,1992

Supplementary Provisions of the Standing Committee of the National people’s Congress Concerning the Imposition of Punishments in Respect
of offenses of Tax Evasion and Refusal to Pay Tax

With a view to imposing punishments in respect of offenses of tax evasion and refusal to pay tax, the relevant supplementary provisions
to the Criminal Law have been formulated as follows:

“Evasion of tax” means that a taxpayer fails to pay or underpays the amount of tax payable through the adoption of the means of forging,
revising, concealing or destroying accounting books or supporting vouchers for the accounts without authorization, or of overstating
expenses or not stating or understating income in accounting books, or of filing fraudulent tax returns. Where the amount of tax
evaded accounts for more than ten percent of the amount of tax payable and is over Renminbi 10000 Yuan, or where the taxpayer evades
tax again after having been subject to administrative sanctions imposed by the tax authorities twice by reason of tax evasion, the
taxpayer shall be subject to imprisonment or confinement with hard labour for a term of not more than three years as well as a fine
of not more than five times the amount of tax evaded. Where the amount of tax evaded accounts for more than thirty percent of the
amount of tax payable and is over Renminbi 100000 Yuan, the taxpayer shall be subject to imprisonment for a term of over three years
but not more than seven years as well as a fine of not more than five times the amount of tax evaded.

Where a withholding agent fails to pay or underpays the tax which has been withheld or collected through the adoption of the means
specified in the preceding Paragraph, and where the amount of tax evaded accounts for more than ten percent of the amount of tax
payable and is over Renminbi 10000 Yuan, a punishment shall be imposed on the withholding agent in accordance with the provisions
stipulated in the preceding Paragraph.

Where the illegal acts specified in the preceding two Paragraphs have been committed several times and no punishment has been imposed,
a punishment shall be imposed based on the accumulated amounts.

Where a taxpayer who has failed to pay the amount of tax payable adopts the means of transferring or concealing the property, resulting
in failure on the part of the tax authorities to pursue the payment of the tax in arrears, and where the amount of the tax in arrears
is over Renminbi 10000 Yuan but under Renminbi 100000 Yuan, the taxpayer shall be subject to imprisonment or confinement with hard
labour for a term of not more than three years as well as a fine of not more than five times the amount of tax in arrears. Where
the amount of tax in arrears is over Renminbi 100000 Yuan, the taxpayer shall be subject to imprisonment for a term of over three
years but not more than seven years as well as a fine of not more than five times the amount of tax in arrears.

Where an enterprise or institution commits the offenses specified in Articles 1 or 2 hereof, a fine shall be imposed on the enterprise
or institution in accordance with the provisions set forth in Articles 1 or 2 hereof, and the persons in charge and other personnel
who assume direct responsibility shall be subject to imprisonment or confinement with hard labour for a term of not more than three
years.

Where a taxpayer offers a bribe to tax officials and fails to pay or underpays the amount of tax payable, an investigation into the
criminal liabilities of the taxpayer shall be conducted based on an offense of bribery, and the taxpayer shall be subject to a fine
of not more than five times the amount of tax which has not been paid or underpaid.

Where an enterprise or institution fraudulently obtains a tax refund through the adoption of deceptive means such as fraudulently
declaring the commodities it produces or operates as export goods, and where the amount of the tax refund which has been fraudulently
obtained is over Renminbi 10000 Yuan, a fine of not more than five times the amount of the tax refund which has been fraudulently
obtained shall be imposed on the enterprise or institution, and the persons in charge and other personnel who assume direct responsibility
shall be subject to imprisonment or confinement with hard labour for a term of not more than three years.

Where an entity or individual other than those as prescribed in the preceding Paragraph fraudulently obtains a tax refund for export
from the State, an investigation into the criminal liabilities of the entity or individual shall be conducted based on an offense
of fraud, and a fine of not more than five times the amount of the tax refund which has been fraudulently obtained shall be imposed
on the entity or individual. In addition to imposing a fine on an entity which has committed the offense specified in this Paragraph,
an investigation into the criminal liabilities of the persons in charge and other personnel who assume direct responsibility shall
be conducted based on an offense of fraud.

“Refusal to pay tax” means the refusal to pay tax by using violence or menace. A taxpayer who has refused to pay tax shall be subject
to imprisonment or confinement with hard labour for a term of not more than three years as well as a fine of not more than five times
the amount of tax the taxpayer has refused to pay. Where the case is serious, the taxpayer shall be subject to imprisonment for a
term of over three years but not more than seven years as well as a fine of not more than five times the amount of tax the taxpayer
has refused to pay.

In the case of refusal to pay tax by using violence which causes a person to suffer from serious injury or death, a serious punishment
shall be imposed based on an offence of assault or manslaughter, and a fine shall be imposed in accordance with the provisions set
forth in the preceding Paragraph.

Where the offenses specified herein are committed, the tax authorities shall pursue the payment of the amount of tax which has not
been paid or underpaid, or is in arrears, or a taxpayer has refused to pay, or has been fraudulently obtained. Where a taxpayer is
exempt from criminal punishment in accordance with the law, the tax authorities shall, in addition to pursuing the payment of the
amount of tax which has not been paid or underpaid, or is in arrears, or the taxpayer has refused to pay, or has been fraudulently
obtained, shall impose a fine of not more than five times the amount of tax which has not been paid or underpaid, or is in arrears,
or the taxpayer has refused to pay, or has been fraudulently obtained.

The present provisions shall enter into force as of January 1,1993.

The Standing Committee of the National People’s Congress
1992-09-04

1...192193194...212 Page 193 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

PROVISIONS FOR THE CONTROL OF BAND ACCOUNTS OPENED ABROAD BY ENTERPRISES WITH FOREIGN INVESTMENT

PROVISIONS OF THE CUSTOMS ON THE CONTROL OF LUGGAGE AND ARTICLES CARRIED BY CHINESE PERSONNEL ENTERING AND LEAVING THE COUNTRY

INTERIM REGULATIONS OF PRC CONCERNING THE ASSIGNMENT AND TRANSFER OF THE RIGHT TO THE USE OF THE STATE-OWNED LAND IN THE URBAN AREAS

REGULATIONS ON THE INVESTIGATION AND HANDLING OF MARITIME TRAFFIC ACCIDENTS

PROCEDURES FOR THE ADMINISTRATION OF CHINESE FINANCIAL INSTITUTIONS ABROAD

NATIONALITY LAW

REGULATIONS ON REPORTING AND HANDLING FATAL ACCIDENTS OF WORKERS AND EMPLOYEES IN ENTERPRISES

SUPPLEMENTARY PROVISIONS OF THE STANDING COMMITTEE OF THE NATIONAL PROPLE’S CONGRESS REGARDING THE IMPOSITION OF PUNISHMENT IN RESPECT OF OFFENCES OF TAX EVASION AND REFUSAL TO PAY TAX

MEASURES FOR THE ADMINISTRATION OF THE STATE COUNCIL ON PARTICIPATION OF FOREIGN FIRMS IN THE SALVAGE OF SUNKEN SHIPS AND OBJECTS IN THE CHINESE COASTAL WATERS

SUPPLEMENTARY PROVISIONS OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS CONCERNING THE IMPOSITION OF PUNISHMENTS IN RESPECT OF OFFENSES OF TAX EVASION AND REFUSAL TO PAY TAX

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