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OUTLINE OF STATE INDUSTRIAL POLICIES FOR THE S

Outline of State Industrial Policies for the 1990s

     (Effective Date:1994.03.25–Ineffective Date:)

CHAPTER I VIGOROUSLY DEVELOP AGRICULTURE AND RURAL ECONOMY AND INCREASE THE INCOME OF PEASANTS CHAPTER II CONSCIENTIOUSLY STRENGTHEN
THE CONSTRUCTION OF INFRASTRUCTURAL FACILITIES AND BASIC INDUSTRIES CHAPTER III VIGOROUSLY DEVELOP PILLAR INDUSTRIES CHAPTER V VIGOROUSLY
DEVELOP FOREIGN ECONOMIC RELATIONS AND TRADE CHAPTER VI ORGANIZATION, TECHNOLOGY AND SETUP OF INDUSTRIES CHAPTER VII PROCEDURES FOR
FORMULATING INDUSTRIAL POLICIES AND THEIR IMPLEMENTATION

The formulation of industrial policies is to work as one of the important means of the State in its strive to strengthen and improve
macro-economic control, effectively adjust and optimize the industrial structure, improve the quality of industries and promote a
sustainable, fast and healthy development of the national economy and under the guidelines of the 14th National Party Congress and
the decisions adopted at the third plenary session of the 14th Party Central Committee, the present “Outline of State Industrial
Policies for the 1990s” is worked out in the light of the current situation and trend of development in the national economy as a
guide and basis for formulating policies for various industries in the near future.

In formulating State industrial policies, the following principles must be observed: (1) Such policies must be able to combine the
universal way of industrialization and modernization with the special conditions and industrial structure of our country; (2) Such
policies must be able to help establish a socialist market economic system in our country so as to give a basic role to the market
for the allocation of resources under the macro-economic control by the State; (3) Such policies must be able to help concentrate
the efforts of the country to solve the major problems that are of vital importance to the overall situation of the national economy;
(4) Such policies must be able to become fully operational mainly through economic and legal means and properly supplemented with
necessary administrative means to support the development of industries and products in short-term demand and curtail those in long-term
demand.

For the 1990s the major objects of the State industrial policies are: constantly strengthen the basic status of agriculture to develop
the rural economy in an all-round manner; devote great efforts to step up the development of the basic industries, striving to ease
the heavy drawback of infrastructure and basic industries; accelerate the development of pillar industries to bring about an all-round
revitalization of the national economy; rationally readjust the foreign economic and trade structure to enhance the competitiveness
of Chinese industries on the international market; step up the development of high and new tech industries and support the development
of newly emerging industries and new products; and continue to develop the tertiary industry in a big way. Meanwhile, it is necessary
to optimize the structure of industries, raise their technical levels and rationalize their distribution.

CHAPTER I VIGOROUSLY dEVELOP AGRICULTURE AND RURAL ECONOMY AND INCREASE THE INCOME OF PEASANTS

To develop vigorously agriculture and the rural economy and increase the income of peasants are the first and foremost task of economic
development in the 1990s. It is imperative to foster the broadest sense of agricultural development which includes an all-round development
of agriculture, forestry, animal husbandry, sidelines and fisheries and a vigorous development of high-yield, high-quality and high-efficiency
and high foreign exchange earning agricultural products so as to be able to turn out a sufficient amount of agricultural products
to both cater a well-being living at home and meet the demand of the international market in terms of quality, variety and quality.
For such an undertaking, it is necessary to restructure the rural industrial structure, energetically develop the secondary and tertiary
industries in the rural areas, gradually transfer the rural surplus labor to bring the comprehensive production capacity and economic
efficiency of the rural areas onto a new level.

In developing agriculture and the rural economy, it is essential to implement in real terms the series of policies and measures formulated
by the Party central committee and the State Council and the present “Outline Program for the Development of China’s Agriculture
in the 1990s”. For that, it must: extend the contracted terms for the arable land to stabilize and improve the household responsibility
system which ties up the income with output and the two-tier managing system which integrates the contralized and scattered management
in an effective way; rationally readjust the organization of agricultural production to introduce new production systems of integrating
cropping, breeding and processing and also agriculture, trade, and industry; cultivate energetically the rural market by establishing
sound grain protective prices, a grain venture fund system, and a grain reserve system; establish and improve the rural collective
service system to make it a vast network consisting of services run by the State, collectives and individuals; dedicate real effort
to protect the arable land including the step by step establishment of basic farmland protection zones and formulation of corresponding
measures of management; increase input in agriculture including the increase of financing by central and local governments on an
annual basic, support the development of agro-serving industries, encourage peasants own inputs, and attracting more foreign capital
to the development of agriculture; energetic efforts must be made to use and spread new techniques and lightening the burdens on
peasants and earnestly protecting their legitimate rights and interests.

With the increase of rural productivity, the rational transfer of rural surplus labor will acquire an important relevance in the strive
of further developing the agriculture and the rural economy and increasing the income of the peasants So, further efforts must be
made to accelerate the development of township enterprises, especially in the central and western parts of the country. In such a
context, planning and policy guidance should be enhanced to lead the township enterprises develop in a concentrated manner. Meanwhile,
it is necessary to transform and make full use of the existing small towns and step up the building of new ones.

CHAPTER II CONSCIENTIOUSLY STRENGTHEN THE CONSTRUCTION OF INFRASTRUTUAL FACILITIES AND BASIC INDUSTRIES

The development of infrastructural facilities and basic industries must be accelerated so as to keep pace with that of the national
economy as a whole. The efforts must be made basing on the principles of “unified planning, rational distribution, banding force
on key areas, doing one’s best within one’s might and keeping an eye at efficiency”.

For transportation, major efforts must by put to increase the carrying capacity of railways. While giving special effort to develop
the thoroughfares, roads, waterways, air, pipelines and other ways of transportation must also be developed in a full scope to form
a comprehensive transport system. For telecommunications, great efforts must be paid to develop a comprehensive but concentrated
information disseminating network basing on high speed, high quality and high capacity communication means and advanced technologies
and equipment of international standard at the same time of increasing the portion of home-made devices. For energy, equal emphasis
must be given to development and conservation so as to achieve a well-coordinated development of energy, economy and environment.
In coal industry, construction of State-owned key mines must be accelerated and efforts must be made to promote the transformation
and improvement of local mines and mines operated by townships. In the petroleum industry, while stabilize the output in the eastern
part, more reserves in the western part must be verified and international resources rationally utilized. In the power industry,
the principle is to develop both thermal and hydroelectric power in light of actual conditions and expand nuclear power properly.
It is necessary to consolidate and improve the existing water conservancy facilities and carry out comprehensive control of large
rivers and lakes with clear emphasis in order to prevent water loss and soil erosion, protect and rationally allocate water resources
and raise the capabilities against drought and floods and gradually solve the drinking water supply problem in water short areas
and in cities. The development of urban municipal utilies should be accelerated according to the principle of “unified planning,
rational distribution and comprehensive development.”

In order to accelerate the development of infrastructure facilities and basic industries, the State will adopt the following principal
policies: fully use the initiatives of both the central and localities under clarified division of work among the governments at
all levels; clearly define the plans for the development of infrastructure facilities and basic industries to acquire a sound development
of both; well establish and improve a policy-based long-term investment and financing system to provide appropriate financial support
to construction projects encouraged by the State; channelling funds into the construction of infrastructure facilities and basic
industries from various sectors with priority giving to issue of stocks and bonds to cater to the development of such facilities
and industries; encouraging foreign investment to construction of infrastructural facilities and basic industries to extend the use
of foreign funds in the sectors both in scale and areas; further smoothing out the pricing system to give full scope to the regulatory
roles of the price mechanism and intensify the control over the prices of products and services provided by highly monopoly industries;
continuing to requisite lands in low prices for the construction of infrastructure facilities and basic industries; using incomes
of the government from leasing of land resources for the construction of infrastructure facilities; and permitting under approval
procedure investors in transport facilities in obtain the right to develop real estate along the transporting lines, port areas and
around airports as comprehensive economic compensation.

CHAPTER III VIGOROUSLY DEVELOP PILLAR INDUSTRIES

Efforts should be made to accelerate the development of machine- building, electronic, petro-chemical, automobile and construction
industries to make them the pillar industries of the national economy.

For machine-building industry focus should be put on the making of elementary machinery, basic parts and complete sets of major technical
equipment so as to promote the optimization of product structure and raise the technical level and competitiveness of the industry.
For electronic industry, microelectronics should serve as the base for the development of telecommunications, computers and other
emerging information industries to accelerate the pace of modernization. For the petrochemical industry, energetic efforts should
be made to enlarge production scales, improve technical levels and depth of processing. For automotive industry, a production system
of fewer production sites and economic scale of production should be undertaken as soon as possible to strive for a bigger share
in the domestic market and a better competitiveness in the world market for domestic products. For construction industry, emphasis
should be put to the building of residential houses in cities, key State construction projects and the construction of cities and
towns to strive to establish a unified and open market with orderly competition and improve the quality of products for construction.

The State will promote the development of the pillar industries by adopting the following measures: to formulate and publish unified
industrial policies and ensure their implementation by legal means; to gradually establish an investment and financing system and
standard enterprises financing mechanism to facilitate the development of the pillar industries, including arrangement given by the
State for prior issue of pillar industry related stocks and bonds; direct support should be given by the government in funds and
materials to prop up the technical development of certain major areas in the pillar industries such as under approval of the State
Council, granting power to some large enterprise groups to directly raise funds abroad commensurate with the their own capital and
gains. Meanwhile, according to common international practice and articles of relevant agreements, the State will treat part of the
products of the pillar industries as infant industrial products and protect them properly and within a certain limit of time. At
the same time, the government will allow the conditional opening of part of the home market in order to obtain key technology and
equipment.

CHAPTER V VIGOROUSLY DEVELOP FOREIGN ECONOMIC RELATIONS AND TRADE

The government will continue to encourage the expansion of foreign trade, actively readjust the trade structure so as to display the
country’s own advantages in the trade, improve its export efficiency, promote the restructuring and optimizing of industrial structure,
enchance the international competitiveness and maintain the balance of international payments.

The State encourages export of the following products; agricultural and sideline products with comparative advantages, light industrial
goods and textiles; household electrical appliances and other machinery and electronic products with mature production technology;
products with high added value and international competitiveness; and high and new technology products, but discourages the bulk
export of resources products, and strives for gradual reduction in the export of primary products and products with high energy contents,
with some even restricted or forbidden for export.

The State encourages the import of new technology and relevant key equipment, key and spare parts; appropriately increases the import
of some primary products in short supply at home, supports the efforts by infant industries to introduct, assimilate and absorb new
technologies, new production equipment and their key and spare parts. Meanwhile, the State discourages the import of high and consumer
goods.

For such an end, the State will fully use the function of the import and export banks to encourage enterprises to increase their export
of complete sets of equipment and machinery and electronic products; strengthen the control on the import quantity of a few products,
through the granting of quotas by means of tenders, auction or regulations based on the principal of “efficiency, fairness and openness”;
strengthen the policies for promoting the export of deep-processed products, high value added manufactured goods and complete sets
of equipment; give the power of handling foreign trade to various kinds of qualified enterprises and particularly encourage large
enterprises (groups) to open direct sales channels overseas; and rationally adjust the tariff rates according to the State industrial
policies.

CHAPTER VI Organization, Technology and Setup of Industries

(1) The objectives of the policies toward industrial organizations are: promoting fair competition among enterprises and realizing
economic scale of production and specialized cooperation to form an industrial organizational structure to adapt to the characteristics
of industrial technical economy and the stages of development of the national economy. For industries with marked efficiency of an
economic scale, a market structure should be formed with a few large enterprises (groups) as the main competitors; for industries
with products composed of large amounts of parts and accessories, there should be a market structure of an appropriate scale that
facilitate the rational division of labor and coordination among large, medium-sized and small enterprises; for industries without
market efficiency of economic scale, efforts should be made to encourage the development of small enterprises to form market structure
comprising a large number of large, medium-size and small enterprises which will develop simultaneously and compete freely.

To realize the objectives, the government will; gradually introduce market mechanism into industries which are of monopoly in nature
in specific regions to encourage fair competition among them; set minimum scale for industries and products which are of efficiency
in economic scale. At the same time, barriers to separate departments, and regions will be broken down to stop the setting up of
projects that fail to meet the standards of economic scale so as to promote the realization of scale economy. Enterprises are also
encouraged to form transregions, departments, ownerships or even nations associations or enterprises groups by way of equal competition,
merging, amalgamation, or holding each other’s shares. The government will step up the building of the legal system concerning market
competition so as to create a good external environment for enterprises to compete on an equal footing and readjust their organizational
setups.

(2) The key objects of industrial technology policy are to: promote the development of applied technologies, encourage the integration
of research and production, accelerate the application of research results, promote the introduction and assimiliation of advanced
foreign technologies to markedly improve the quality and technical function and reduce the energy, material consumptions and production
cost of Chinese products and strive to improve the technical levels of Chinese industries.

The government will adopt the following measures to promote technological progress: To increase input in scientific research and development
through multiple channels and in a variety of forms so as to gradually increase its proportion in the GNP; to map out research and
development programs for key technologies that are of importance in the development of various industries, support and encourage
the absorption and creation of advanced technologies; to strengthen planning of high and new technology industries, do well in the
construction of the State approved high and new technology development zones; to promote the process of standardization and serialization,
encourage the adoption of international standards and advanced foreign standards and more strict internal standards of enterprises;
to enhance the capabilities of enterprises to develop new products independently, encourage enterprises to strengthen their ties
with research institutions and universities and colleges in order to accelerate the speed of commercializations of research results;
and to publish regularly with the force of law or decrees the backward production technology and equipment that must be disbanded.

(3) The main principles of the industrial distribution policies: while continuing to display the advantages of economically developed
areas and accelerating their development, energetic efforts must be made to support the economic development of less developed regions
so as to gradually narrow the spread between the economically developed and less developed regions; the government supports the development
of industrial belts that can give full advantages of natural resources and economy and dedicate to the efficient division of labor
and cooperation among different regions.

It should gradually form rational distribution of industries along the seas, rivers, roads and borders, with large cities along the
transporting trunk lines as the centres to bring up the development of economic regions. The eastern coastal areas must make great
efforts to develop an export-oriented economy, with emphasis on industries and products that have high added values, are capable
of earning great foreign exchange, contain more technology and consume less energy and raw materials. More foreign funds and resources
should be used in order to achieve a sustainable and fast development and better efficiency of the economy. The central and western
regions should give full advantages of their resources and geographical locations as border areas to develop their own unique industries
and products. The State will gradually shift its policy biased toward regions to the policy biased toward industries in terms of
investment, loans, project distribution utilization of foreign capital and other related economic policies and give necessary support
to the major projects in the development and construction of the central and western parts of the country. The State should encourage
economically developed regions to engage in joint development, technical cooperation, partnership assistance and personnel exchange
with the less developed areas in the central and western parts of the country.

The government will make the best use of the situation to guide urbanizations toward a healthy development so as to form an urban
construction system with a good harmony in structure and rational distribution of large, medium-sized and small cities.

CHAPTER VII PROCEDURES FOR FORMULATING INDUSTRIAL POLICIES AND THEIR IMPLEMENTATION

Industrial policies include industrial structure policies, industrial organizational policies, industrial technology policies, industrial
distribution policies and other policies and laws and regulations that will have a great bearing on the industrial development. In
order to give the industrial policies a full scientific nature and authority and faciliate their implementation, the following provisions
are hereby made concerning the formulation and implementation of industrial policies:

(1) The State industrial policies shall be determined by the State Council and the formulated under the initial of the State Planning
Commission which is responsible for the study, formulation and coordination of the policies with the help of relevant departments.
The industrial policies with the help of relevant departments. The industrial policies thus formulated shall be carried out by departments
in charge of various industries and services under the coordination by the State Planning Commission.

(2) A system shall be created by State for the examination and review of the State industrial policies. The concrete industrial policies
and policies that will have a major influence on the industrial development drafted by relevant departments shall be examined and
coordinated by the State Planning Commission and subject to scientific studies and democratic examination by relevant departments
under the State Council, industrial circles, academic circles and consumer groups organized by the State Planning Commission before
they are submitted by the State Planning Commission and relevant departments to the State Council for approval and published for
implementation.

(3) A system must be created to ensure the real implementation of the State industrial policies by various economic administration
departments of planning, finance, banks, taxation, domestic and foreign trade, tariffs, securities, industry and commerce and the
State property, which must coordinate with the State Planning Commission to formulate major procedures for the implementation of
the policies.

(4) A system must be created for the supervision, examination and assessment of the State industrial policies. The State Planning
Commission shall, together with relevant departments, undertake the work of supervision, examination and analysis on the execution
of the State industrial policies and report the results to the State Council regularly with proposals for amendment of the policies
in the light of the changes in the economic situation and industrial structure.

(5) Provincial level people’s governments shall, according to the requirements of the present outline, formulate detailed rules for
its implementation in the light of their actual circumstances and submit them to the State Planning Commission for the record.

(6) The government shall, in the near future, draft industrial policies for transport, telecommunications, construction, electronics,
machine building, petro-chemical industries and foreign investment, foreign trade, technology and industrial organizational readjustment.
The work shall be coordinated and organized by the State Planning Commission.

(7) The document shall be interpreted by the State Planning Commission.

The outline of the State industrial policies for the 1990s shall be implemented starting from the date of publication.

    






MEASURES FOR EXEMPTION FROM INSPECTION OF IMPORT AND EXPORT COMMODITIES

REGULATIONS ON THE PREVENTION OF POLLUTION DAMAGE TO THE MARINE ENVIRONMENT BY LAND-SOURCED POLLUTANTS

Category  ENVIRONMENTAL PROTECTION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1990-06-22 Effective Date  1990-08-01  


Regulations of the People’s Republic of China on the Prevention of Pollution Damage to the Marine Environment by Land-sourced Pollutants



(Adopted at the 61st Executive Meeting of the State Council on May 25,

1990, promulgated by Decree No.61 of the State Council of the People’s
Republic of China on June 22, 1990 and effective as of August 1, 1990)

    Article 1  These Regulations are formulated in accordance with the Marine
Environment Protection Law of the People’s Republic of China and for the
purposes of strengthening the supervision and administration of land pollution
sources and preventing pollution damage to the marine environment by
land-sourced pollutants.

    Article 2  “Land pollution sources” (hereinafter referred to as “land
sources”) mentioned in these Regulations refer to places or installations in
or by which to discharge pollutants from the land into the sea thereby causes
or may cause pollution damage to the marine environment.

    “Land-sourced pollutants” mentioned in these Regulations refer to
pollutants discharged from “land sources” stipulated in the preceding
paragraph.

    Article 3  These Regulations apply to all organizations and individuals
who discharge land-sourced pollutants into the sea within the territory of
the People’s Republic of China.

    With respect to the prevention of pollution damage to the marine
environment by ship scrapping, the Regulations on the Prevention of
Environmental Pollution by Ship Scrapping shall apply.

    Article 4  The environmental protection department under the State Council
shall be in charge of the prevention of pollution damage to the marine
environment by land-sourced pollutants of the whole country.

    The environmental protection departments of the coastal local people’s
governments at county level and above shall be in charge of the prevention of
pollution damage to the marine environment by land-sourced pollutants in their
respective administrative areas.

    Article 5  The discharge of land-sourced pollutants into the sea by any
organization or individual must be conducted in compliance with the standards
for discharge of pollutants and the relevant regulations promulgated by the
state or the localities.

    Article 6  Any organization or individual who has to discharge
land-sourced pollutants into the sea must report to and register with the
environmental protection department in the place where it or he is located
with respect to the pollutant discharging and treating facilities that it or
he possesses and the kind(s), quantity and density of the pollutants to be
discharged under normal operational conditions, and must provide with
materials regarding the prevention of pollution damage to the marine
environment by land-sourced pollutants. A copy of registrations and materials
mentioned above shall be sent to the administrative department of marine
affairs.

    If major changes have taken place in the kind(s), quantity and density of
the pollutants to be discharged, or pollutant treating facilities are
dismantled or left idle, prior approval shall be obtained from the
environmental protection department in the locality as well as the original
examining and approving department.

    Article 7  Any organization or individual discharging land-sourced
pollutants into the sea in excess of the national or local discharge standards
shall pay a fee for excessive discharge and shall assume responsibility for
eliminating and controlling the pollution.

    Article 8  No organization or individual may establish outlets for
discharging sewage within special marine reserves, marine sanctuaries,
seashore scenic and tourist areas, saltworks reserves, bathing beaches,
important fishing areas and other areas which need special protection.

    Those outlets already established within the areas stipulated in the
preceding paragraph, where the discharge of pollutants is in excess of the
national or local discharge standards, shall be improved within a prescribed
period of time.

    Article 9  If an enterprise or institution discharges land-sourced
pollutants into the sea and has thereby caused severe environmental pollution,
it shall be required to eliminate and control the pollution within a
prescribed period of time.

    Article 10  For enterprises and institutions directly under the
jurisdiction of a department under the State Council or a people’s government
of a province, an autonomous region, or a municipality directly under the
central government, the proposal for a deadline for the elimination or control
of pollution shall be made by the environmental protection department of the
people’s government of the province, autonomous region, or municipality
directly under the central government, and shall be reported to the people’s
government at the same level for the decision. For enterprises and
institutions under the jurisdiction of a people’s government at city or county
level or below, such proposal shall be made by the environmental protection
department of the people’s government of the city or county, and shall be
reported to the people’s government at the same level. Such enterprises and
institutions shall accomplish the elimination or control of pollution within
the prescribed period of time.

    Article 11  It is prohibited to pile up, discard, or dispose of solid
wastes along seashores and beaches without approval. If it is really necessary
to pile up or dispose of solid wastes for the time being, a written
application shall be submitted according to the examining and approving
procedures stipulated by the environmental protection departments of the
coastal provinces, autonomous regions, and municipalities directly under the
central government. The application shall mainly include the following
contents:

    (1) the name and address of the applicant;

    (2) the place and covering area of solid wastes to be piled up and
disposed of;

    (3) the types and composition of solid wastes, amount of solid wastes to
be piled up and disposed of per year, total amount of solid wastes to be
stockpiled up and disposed of and the height of solid wastes to be piled up;

    (4) the time of period within which to pile up and dispose of solid wastes
and final means of disposal of them;

    (5) the pollution damage to the marine environment possibly caused by
piling up and disposing of solid wastes;

    (6) technology and measures for preventing the marine environment from
pollution damage caused by piling up and disposing of solid wastes; and

    (7) other matters required to be explained by the examining and approving
organ.

    The environmental protection department of the local people’s government
at county level or above shall order the completion of the examining and
approving procedures within a time limit for those existing sites in which
solid wastes are temporarily piled up and disposed of without its approval.

    Article 12  Any organization or individual who has been approved to set up
waste yards and treatment facilities shall build dikes and facilities against
raising dust and leakage of wastes. Prior to their use, the dikes and
facilities shall pass the inspection by the environmental protection
department that approved the establishment of the waste yards and treatment
facilities.

    It is prohibited to pile up and discard wastes of other types which have
not been approved in the waste yards and treatment facilities which have been
used with approval. It is prohibited to pile up wastes containing hypertoxic,
radioactive, soluble or volatile substance out of doors. Piling up not out of
doors shall not be carried out as final means of disposal of the
above-mentioned wastes.

    Article 13  It is prohibited to discharge toxic and harmful waste water
along seashores and beaches by improper means of dilution or permeation.

    Article 14  It is prohibited to discharge waste water containing
high-level or meddle-level radioactive substance into the sea.

    Any discharge of waste water containing low-level radioactive substance
into the sea shall be carried out in strict compliance with the state
provisions and standards concerning radioactive protection.

    Article 15  It is prohibited to discharge oils, acid liquid, alkaline
liquid or toxic liquid into the sea.

    No oil-polluted water, waste water containing harmful heavy metals or
industrial waste water of other types may be discharged into the sea before it
has been properly treated and conforms to the standards for discharge of
pollutants and the relevant regulations stipulated by the state or the
localities. Residual dregs after treatment shall not be cast off into the sea.

    Article 16  No waste water carrying pathogens may be discharged into the
sea before it has been properly treated and conforms to the standards for
discharge of pollutants and the relevant regulations stipulated by the state
or the localities.

    Article 17  In case of the discharge of heated waste water into the sea,
the water temperature shall be in compliance with the relevant provisions of
the state.

    Article 18  The discharge of industrial waste water and domestic sewage
containing organic and nutrient substance into sea areas with low capacities
of self-purification shall be controlled in scale. The outlets for discharging
sewage shall be set up in sea areas suitable for current exchange and rational
means of discharge shall be carried out to prevent eutrophication of the sea
water.

    Article 19  It is prohibited to discard medicines and medical instruments
having lost efficacy or use of which is prohibited along seashores and
beaches.

    Article 20  The environmental protection departments of provinces,
autonomous regions and municipalities directly under the central government in
the estuaries shall be in charge of the investigation and dealing with of
accidents of pollution damage to the marine environment by land-sourced
pollutants which occur in the estuaries and are conclusively proved to be
caused by river waters carrying pollutants. If the river flows across
different provinces, autonomous regions or municipalities directly under the
central government, the environmental protection department and the water
conservancy department of the people’s government at provincial, autonomous
regional and municipal level in the entuary shall cooperate with the
environmental protection department and water conservancy department of the
people’s government of involved provinces, autonomous regions and
municipalities and the river basin administrative department in investigating
and dealing with the accident.

    Article 21  With respect to those coastal regions adjacent or opposite to
one another discharging land-sourced pollutants into the same sea area, the
relevant local people’s governments shall jointly formulate measures for the
prevention of pollution damage to the marine environment by land-sourced
pollutants.

    Article 22  Any organization or individual who causes an accident of
pollution damage to the marine environment by land-sourced pollutants shall
promptly take measures to deal with the accident and shall, within 48 hours
after the happening of the accident, report to the environmental protect
department of the local people’s government on the time, place, type of the
accident, the amount of pollutants discharged, economic losses, victims and
other preliminary information and a copy of the preliminary report shall be
sent to each of the relevant departments. Upon the investigation of the
accident, a written report accompanied with relevant documentary evidence
shall be sent to the environmental protection department of the local people’s
government.

    The environmental protection department of the people’s government at
various levels shall, upon the receipt of the preliminary report on a accident
of pollution damage to the marine environment by land-sourced pollutants, take
measures promptly in consultation with the relevant departments to eliminate
or reduce the pollution. The accident shall be investigated and dealt with by
the environmental protection department of the people’s government at county
level or above together with the relevant departments, or by a department
authorized by the environmental protection department of the people’s
government at county level or above itself.

    Article 23  The environmental protection department of the people’s
government at county level or above together with the department in charge of
the project shall, according to its scope of powers to project administration,
conduct an on-the-spot inspection of the organization or individual
discharging land-sourced pollutants. The inspection receiver shall truthfully
report information and provide materials and the inspectors shall be
responsible for keeping technical and business secrets for the inspection
receiver. If otherwise provided for in the laws and regulations, the
provisions stipulated above in this article shall not apply.

    Article 24  Where anyone violates these Regulations under any of the
following circumstances, the environmental protection department of the
people’s government at county level or above shall order the correction and
may concurrently fine an amount of not less than 300 yuan but not more than
3,000 yuan.

    (1) refusing to report or falsely reporting on registrations for discharge
of pollutants; or

    (2) refusing or obstructing the environmental protection department that
is conducting an on-the-spot inspection, or practising fraud in the
on-the-spot inspection.

    Article 25  Where anyone forces in use facilities against pollution set up
in waste yards and treatment facilities which have not been inspected and
accepted by the environmental protection department or have not passed the
inspection, the environmental protection department shall order the correction
and may concurrently fine an amount of not less than 5,000 yuan but not more
than 20,000 yuan.

    Article 26  Where anyone violates these Regulations under any of the
following circumstances, the environmental protection department of the
people’s government at county level or above shall order the correction and
may concurrently fine an amount of not less than 5,000 yuan but not more than
100,000 yuan.

    (1) changing the kind(s) of pollutants to be discharged, or increasing the
quantity and density or dismantling or leaving idle pollutant treating
facilities without the approval of the environmental protection department in
the locality and the original examining and approving department; or

    (2) establishing outlets for discharging sewage within the areas
stipulated in the first paragraph of Article 8 of these Regulations.

    Article 27  Where anyone violates these Regulations under any of the
following circumstances, the environmental protection department of the
people’s government at county level or above shall order the correction and
may concurrently fine an amount of not less than 1,000 yuan but not more than
20,000 yuan; if the circumstances are serious, a fine of not less than 20,000
yuan but not more than 100,000 yuan may be imposed upon.

    (1) discharging toxic and harmful waste water along seashores and beaches
by improper means of dilution or permeation;

    (2) discharging waste water containing high-level or meddle-level
radioactive substance into the sea;

    (3) discharging oils, acid liquid, alkaline liquid or toxic liquid into
the sea;

    (4) discarding medicines and medical instruments having lost efficacy or
use of which is prohibited along seashores and beaches;

    (5) failing to comply with the standards for discharge of pollutants and
the relevant regulations stipulated by the state or the localities when
discharging oil-polluted water, waste water carrying pathogens, heated waste
water, waste water containing low-level radioactive substance, waste water
containing harmful heavy metals or industrial waste water of other types into
the sea, or casting off residual dregs after treatment into the sea; or

    (6) without the approval of the environmental protection department of the
local people’s government at county level or above, piling up, discarding, or
disposing of solid wastes along seashores and beaches, or piling up and
disposing of wastes of other types which have not been approved in the waste
yards and treatment facilities, or piling up wastes containing hypertoxic,
radioactive, soluble or volatile substance out of doors.

    Article 28  Where an enterprise or institution fail to eliminate and
control the pollution within a time limit as stipulated, it shall pay an
amount of two times the fee for excessive discharge, and may be concurrently
fined an amount of not less than 10,000 yuan but not more than 100,000 yuan
according to the seriousness of damage and loss, or be ordered the suspension
of business or closing down.

    The environmental protection department shall decide on a fine. The
people’s government that decides on a deadline for the elimination and control
of pollution shall decide on the suspension of business or closing down; the
suspension of business or closing down of an enterprise or institution
directly under the jurisdiction of a department under the State Council shall
be subject to the approval of the State Council.

    Article 29  Where anyone fails to pay the fee for excessive discharge
according to the provisions, the environmental protection department of the
people’s government at county level or above shall, in addition to recovering
the fee and a late payment fine, impose a fine of not less than 1,000 yuan but
not more than 10,000 yuan.

    Article 30  Where anyone causes an accident of pollution damage to the
marine environment by land-sourced pollutants and has thereby caused major
economic losses, the environmental protection department of the people’s
government at county level or above shall impose a fine of an amount of
percent 30 of the direct losses but not exceeding a maximum of 200,000 yuan.

    Article 31  The environmental protection department of the people’s
government at county level may decide on a fine of not more than 10,000 yuan
and shall report a fine exceeding 10,000 yuan to the higher level’s
environmental protection department for an approval.

    The environmental protection department of the people’s government at the
level analogous to a city directly under a provincial government may decide on
a fine of not more than 50,000 yuan and shall report a fine exceeding 50,000
yuan to the higher level’s environmental protection department for an approval.

    The environmental protection department of the people’s government at the
level of province, autonomous region and municipality directly under the
central government may decide on a fine of not more than 200,000 yuan.

    All fines shall be handed over to the national treasury and neither
organization nor individual may retain or divide them up.

    Article 32  An organization or individual who has paid a fee for excessive
discharge or has been imposed upon a fine shall not exempted from
responsibilities for eliminating pollution, removing damage and compensation.

    Article 33  If a party involved does not agree with a decision on
administrative penalty, he may, within 15 days as from the date of receiving
the notification on the penalty, apply for reconsideration according to law;
if he does not agree with the decision of consideration, he may, within 15
days as from the date of receiving the decision of consideration, bring a
lawsuit before a people’s court. A party may directly bring a lawsuit before a
people’s court within 15 days as from the date of receiving the notification
on the penalty. If, upon the expiration of the period, the party has not
applied for reconsideration or has neither brought a lawsuit before a people’s
lawsuit nor performed the decision on penalty, the department that imposed the
penalty shall apply to the people’s court for compulsory enforcement.

    Article 34  Where a staff member of the environmental protection
department abuses his powers, neglects his duties or engages in malpractice
for his personal interests, the department to which he belongs or the higher
level’s department shall impose disciplinary sanction upon him; if a crime has
been constituted, he shall be investigated for criminal responsibility
according to law.

    Article 35  The people’s governments of the coastal provinces, autonomous
regions and municipalities directly under the central government may
formulated measures for the implementation in accordance with these
Regulations.

    Article 36  The environmental protection department under the State
Council shall be responsible for the interpretation of these Regulations.

    Article 37  These Regulations shall come into force as of August 1, 1990.






MEASURES FOR THE ADMINISTRATION OF THE FOREIGN-RELATED ARCHAEOLOGICAL ACTIVITIES

Category  CULTURE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1991-02-22 Effective Date  1991-02-22  


Measures of the People’s Republic of China for the Administration of the Foreign-related Archaeological Activities



(Approved by the State Council on December 31, 1990 and promulgated by

Decree No. 1 of the State Bureau of Cultural Relics on February 22, 1991)

    Article 1  These Measures are formulated with a view to strengthening the
administration of the foreign-related archaeological activities, protecting
the ancient cultural heritage of China and promoting its academic exchanges
in the archaeological field with foreign countries.

    Article 2  These Measures shall apply to the archaeological investigation,
exploration and excavation as well as to the related studies, scientific and
technological protection and  other  activities  which are  conducted by the
relevant Chinese units (hereinafter referred to as Chinese party) in
collaboration with foreign organizations or international organizations
(hereinafter referred to as foreign party) on the land territory, in the
inland waters and the territorial seas of China as well as in other sea area
within the jurisdiction of China.

    Article 3  Any foreign or international organization that intends to
conduct archaeological investigation, exploration or excavation in China must
undertake it in collaboration with China.

    Article 4  The State Bureau of Cultural Relics shall be in charge of the
unified administration of the foreign-related archaeological activities
throughout the country.

    Article 5  For the purposes of these Measures,

    (1) “archaeological investigation” refers to such activities, conducted
for the purpose of obtaining archaeological materials and information, as
archaeological recording of ancient cultural sites, ancient tombs, ancient
architectures, cave temples and other underground and underwater cultural
relics, and collecting of cultural relics and natural specimens;

    (2) “archaeological exploration” refers to exploring activities aiming at
obtaining such basic information as the nature, structure and range of
underground or underwater historical cultural remains;

    (3) “archaeological excavation” refers to such activities, conducted for
the purpose of obtaining archaeological materials and information, as
scientific discovering and archaeological recording of sites of ancient
culture, ancient tombs and other underground and underwater cultural relics
as well as collecting of cultural relics and natural specimens;

    (4) “archaeological recording” refers to such activities conducted in a
systematic manner as written description, surveying cartographing, rubbing,
photographing, cinematographing and videotaping;

    (5) “natural specimens” refers to natural remains obtained in
archaeological investigation, exploration and excavation.

    Article 6  Archaeological activities of investigation, exploration or
excavation jointly conducted by the Chinese and foreign parties shall be
guided by the following principles:

    (1) the two parties in collaboration shall jointly carry out a project of
archaeological investigation, exploration or excavation and a joint
archaeological team shall be organized, with the Chinese experts taking the
overall charge;

    (2) the two parties in collaboration shall jointly sort out the data
obtained from archaeological investigation, exploration or excavation and
prepare reports thereof all within the Chinese boundaries. The reports shall
be co|signed by the two parties in collaboration and the Chinese party shall
have priority for the publication thereof;

    (3) cultural relics, natural specimens and the originals of
archaeological recording obtained in the activities of archaeological
investigation, exploration or excavation conducted in collaboration shall be
owned by China and have their safety ensured;

    (4) the two parties in collaboration shall abide by the laws, regulations
and rules of China.

    Article 7  A foreign party that intends to conduct archaeological
investigation, exploration or excavation in collaboration with a Chinese
party shall submit a written application therefore to the State Bureau of
Cultural Relics in light of the following items:

    (1) intent of collaboration;

    (2) object, scope and purpose;

    (3) plan for team organization;

    (4) working procedures and measures for safety and technical protection
of the cultural relics, etc;

    (5) sources of funds and equipments and mode of management;

    (6) handling of accidents and risk sharing.

    Article 8  Any application for collaboration in an archaeological project
of investigation, exploration or excavation shall satisfy all the following
conditions:

    (1) it is conducive to China’s protection of cultural relics and
archaeological studies as well as to the international cultural and academic
exchanges;

    (2) the Chinese party has already laid down a foundation in the project
and made some progress in the studies, and has its own experts engaged in the
studies of the subject area in question;

    (3) the foreign party shall be a specialised archaeological research
institution with experts in the subject area in question or in a similar
subject area as well as proper experience in archaeological practice; and

    (4) there are reliable measures for the protection of the excavated
cultural relics.

    Article 9  The State Bureau of Cultural Relics shall subject an
application of a foreign party to an preliminary examination in conjunction
with the Chinese Academy of Social Sciences, and then, in accordance with the
relevant provisions of the State, transfer the application to the relevant
departments in charge of national defence, foreign affairs, public security,
national security and others for further examination, if it is found
satisfactory through the examination, the State Bureau of Cultural Relics
shall submit the application to the State Council for special approval.

    Article 10  After the special approval is granted by the State Council to
a project of collaboration for archaeological investigation, exploration or
excavation, an agreement shall be signed by the two parties in collaboration
on the specific matters of the approved project.

    Article 11  If the cultural relics or natural specimens obtained in an
archaeological investigation, exploration or excavation conducted in
collaboration need to be sent outside the Chinese boundaries for laboratory
test or technical appraisement, the matter shall be submitted to the State
Bureau of Cultural Relics for approval. The original specimens, except for
the consumption involved in the test or appraisement, shall all be
transported back to China thereafter.

    Article 12  Foreign students in China (including undergraduates,
postgraduates and visiting scholars) and foreign researchers whose authorized
period of stay for archaeological study or research in China is over one year
may join in  company with the unit where they study in activities of
archaeological investigation, exploration or excavation conducted by a
Chinese party exclusively or in collaboration with a foreign party, subject
to the approval by the State Bureau of Cultural Relics according to the
request made by the unit where they study or do research work with a prior
consent of the relevant unit of archaeological investigation, exploration or
excavation.

    Article 13  Any visit by a foreigner, a foreign organization or an
international organization to a cultural relics site within the Chinese
boundaries not yet open to public visitors can be conducted, if in areas open
to foreigners, only after the programme for the visit has been submitted one
month before by the department for the administration of cultural relics of
the province, autonomous region or municipality directly under the Central
Government where the cultural relics site is located or by the host central
governmental  department and the unit directly under it to the State Bureau
of Cultural Relics and after an approval has been obtained therefrom and, if
in areas not open to foreigners, only after the programme for the visit has
been submitted one month before by the department for the administration of
cultural relics of the province, autonomous region or municipality directly
under the Central Government where the cultural relics site is located or by
the host central governmental department and the unit directly under it to
the State Bureau of Cultural Relics and after an approval has been obtained
therefrom and, upon the completion of the necessary procedures at the
relevant department in accordance with the pertinent provisions governing
foreignrelated matters.

    Any visit to an archaeological site under excavation shall be made only
when the unit in charge of the excavation has been duly consulted by the host
unit and an approval has been obtained from the State Bureau of Cultural
Relics.

    During such visits, any foreigner, foreign organization or international
organization may not collect any cultural relics or natural specimen or make
any archaeological recording.

    Article 14  The State Bureau of Cultural Relics is enpost_titled to make
inspections on the operation of the archaeological investigation, exploration
or excavation conducted in collaboration and may suspend the operation if it
fails to comply with the provisions of the Operation Procedures for Field
Archaeology or to meet other relevant technical requirements and demand a
rectification within a time|limit.

    Article 15  In case of a violation of the provisions of Articles 6, 7, 8,
10 or 11 of these Measures, a warning, suspension of operation, cancellation
of the project, a fine of 1,000 to 10,000 yuan (RMB), confiscation of the
cultural relics illegally obtained or a compensation for the damages may be
enforced by the State Bureau of Cultural Relics according to the seriousness
of the case.

    Article 16  In case of an unauthorized admittance of foreign students or
researchers by a unit to the activities of archaeological investigation,
exploration or excavation or an unauthorized extension of their working
period, in violation of the provisions of Article 12 of these Measures, the
State Bureau of Cultural Relics may issue a warning or suspend the
qualifications of the unit in question for conducting team archaeological
excavation.

    Article 17  In case of an unauthorized visit to a site of cultural relics
or an unauthorized collection of cultural relics and natural specimens or
unauthorized archaeological recording in violation of the provisions of
Article 13 of these Measures by any foreigner, foreign organization or
international organization, the department for the administration of cultural
relics may stop their visit, confiscate the cultural relics and natural
specimens so collected as well as the archaeological recording.

    Article 18  Any violation of the provisions of these Measures that
constitutes an  offence  against the public security management shall be
punished in accordance with the Regulations of the People’s Republic of China
on the Administrative Penalties for Public Security. In case it constitutes a
crime, criminal responsibility shall be investigated according to law.

    Article 19  Archaeological investigation, exploration or excavation
conducted by archaeological team from Taiwan, Hong Kong or Macao in
collaboration with unit from the mainland of China may be governed with
reference to these Measures.

    Article 20  Measures for the administration of foreign-related matters in
studies and scientific and technological protection of cultural relics shall
be formulated by the State Bureau of Cultural Relics in accordance with the
principles of these Measures.

    Article 21  The State Bureau of Cultural Relics shall be responsible for
the interpretation of these Measures.

    Article 22  These Measures shall become effective as of the date of
promulgation.






MEASURES OF THE PEOPLE’S BANK OF CHINA ON ADMINISTRATION OF THE ESTABLISHMENT OF RESIDENT REPRESENTATIVE OFFICES IN CHINA BY FOREIGN-CAPITAL FINANCIAL INSTITUTIONS

19960429

The People’s Bank of China

Measures of the People’s Bank of China on Administration of the Establishment of Resident Representative Offices in China by Foreign-capital
Financial Institutions

June 11, 1991

Article 1

These Measures are formulated for the purpose of regulating the control of resident representative offices in China of foreign-capital
financial institutions (hereinafter referred to as resident representative offices), in accordance with the Interim Provisions of
the State Council of the People’s Republic of China on Administration of Resident Representative Offices of Foreign Enterprises.

Article 2

Foreign-capital financial institutions mentioned in these Measures refer to foreign capital banks, securities companies, investment
companies, insurance companies, financial companies, credit card companies and financial leasing companies.

Article 3

A resident representative office is an agency of its head office, called the “such-and-such Representative Office”. Its principal
member in charge is called chief representative and other members are called representatives, advisers, assistants or secretaries.

Article 4

The People’s Bank of China (PBC) is the agency in charge of matters of examination and approval and of control in connection with
resident representative offices. Foreign-capital financial institutions can apply to PBC for establishment of resident representative
offices in the open cities of China in accordance with these Measures.

Article 5

A foreign-capital financial institution which applies for establishment of a resident representative office in China’s open cities
must submit to PBC the following documents and materials for the application:

(1)

written application signed by chairman of the board of directors or president of the head office of the applying institution and addressed
to the President of the People’s Bank of China;

(2)

a copy (or photocopy) of the license to do business or of the business registration certificate issued by the pertinent authorities
of the country or region where the applicant institution is located;

(3)

the articles of association of the applying institution’s head office and list of members of its board of directors or other similar
bodies;

(4)

annual reports of the applying institution of the last 3 years;

(5)

other documents and materials as PBC may require.

Except for the foregoing item (4), all documents and materials listed in the above paragraphs originally written in foreign languages
must have their Chinese translations attached.

A foreign-capital financial institution applying to set up a resident representative office in Beijing must submit its application
documents and materials to the Head Office of PBC while an application for the establishment of such an office in other cities shall
be submitted to the local branches of PBC which, after examination of the applicant’s paper, shall report to the PBC Head Office.

Article 6

PBC, within 3 months of receiving the application papers from a foreign-capital financial institution, shall decide whether to accept
its application or not. If an application is accepted, the applicant shall be issued a “Form of Application for Establishing Resident
Representative Offices in China by Foreign-capital Financial Institutions”. If no confirmation has been received from PBC after the
three-months period, the application is deemed automatically invalidated.

A foreign-capital financial institution must, within 2 months of receiving the “Form of Application for Establishing Resident Representative
Offices in China by Foreign-capital Financial Institutions” from PBC, submit to its Head Office for examination and approval the
filled out Form, together with the certificate of authority signed by the applicant’s chairman of the board of directors or president
for the chief representative of the resident representative office and the personal resumes of the chief and other representatives.

The Head Office of PBC, after approving the establishment in China of a resident representative office of a foreign-capital financial
institution, shall issue a certificate of approval to the applicant.

Article 7

Having obtained permission to set up a resident representative office in China, the foreign-capital financial institution must, in
conformity with relevant regulations of the country, go to the industrial and commercial administrative office and public security
office of the locality of the resident representative office to present the certificate of approval issued by PBC and perform the
procedures of business registration and residence registration for its staff members and their relatives. It shall also open a bank
account with a local state specialized bank and perform tax registration procedures at the local tax office.

Article 8

The work of a resident representative office falls within the scope of non-profit activities such as consultation, liaison and market
investigation. In its performance of duties, the resident representative office is not allowed to engage in business operations on
behalf of its home institution’s head office or agencies, including those in China.

Article 9

For a change of the chief representative of the resident representative office, it must present to the Head Office of PBC a letter
requesting approval of the change signed by the chairman of its board of directors or president and the documents authorizing the
appointment of a new chief representative and giving a resume of his biography. The change has to be approved by the PBC Head Office.

For and addition to or a change in the representatives, assistants and employees of foreign nationalities or from Hong Kong and Macao
in the Beijing based resident representative office, it must present to the Head Office of PBC a letter requesting approval of such
personnel changes signed by the officer in charge of the pertinent department of its head office and personal resumes of the newly
appointed personnel, the personnel changes have to be approved by the PBC Head Office.

For similar personnel changes in resident representative offices in other cities than Beijing, the offices concerned must present
the same kinds of documents as in the case of Beijing based office to the local branches of PBC, which shall approve the requested
personnel changes and report them to the PBC Head Office for record.

Article 10

For employment of Chinese citizens inside the country to work as advisers, secretaries, translators or ordinary workers at the recommendation
of Chinese foreign affairs service units, the resident representative office must report to the Head Office or local branches of
PBC the name list of the employed Chinese citizens and their resumes for record. Those whose employment is not reported for the record
are not allowed to work for the resident representative office.

Article 11

For a change of its name, the resident representative office must present to PBC a letter requesting approval of the change signed
by the chairman of the board of directors or president of its head office. On obtaining approval by the Head Office of PBC, the resident
representative office shall present the certificate of approval to the local industrial and commercial administrative office and
perform the formalities for a change in the registration.

Article 12

For a change of office location, the resident representative office shall present to PBC a letter requesting approval signed by its
officer in charge. On obtaining approval by PBC, the resident representative office shall present the certificate of approval to
the local industrial and commercial administrative office and perform for formalities for a change in the registration.

For a change of office location, the resident representative office based in Beijing shall report to the Head Office of PBC for approval
while resident representative offices located in other cities shall report to the local branches of PBC for approval.

Article 13

The chief representative of a resident representative office should reside in China to take charge of its routine work. If the chief
representative leaves China for more than 1 month or if he is unable to regularly stay in China to take charge of its routine work,
he should appoint in advance a special person to act for him and send the letter of appointment to the Head Office of PBC or a local
branch of PBC for record.

Article 14

Resident representative offices shall, before the end of February each year, present to PBC reports of their work in the previous
year. The reports must be made in Chinese in the forms specified by PBC, and truly reflect the offices’ work in China.

The resident representative office in Beijing should send its report to the Head Office of PBC while the resident representative offices
in other cities should send their reports to the local branches of PBC which will forward the reports to their Head Office.

Article 15

If a foreign-capital financial institution decides to withdraw its resident representative office in China, it must present in advance
a letter requesting approval signed by its head office to PBC. With approval from the Head Office of PBC, it shall proceed with the
cancellation of registration at the relevant office. It’s head office shall bear responsibility for any unsettled matters the resident
representative office involved in.

Article 16

The Head Office of the PBC is responsible for the supervision, inspection and regulation of the resident representative office stationed
in Beijing while it authorizes its branches to exercise supervision, inspection and regulation of the local resident representative
offices in other cities.

Article 17

The resident representative offices must abide by Chinese laws and regulations and these Measures. If a resident representative office
violates these Measures, the Head Office of PBC and its local branches have the right to take up the matter with the resident representative
office involved in.

Article 18

These Measures are applicable to the financial institutions registered in Hong Kong, Macao and Taiwan for their establishment of resident
representative offices.

Article 19

These Measures shall enter into force as of the date of promulgation. The Measures of the People’s Bank of China on Administration
of the Establishment of Resident Representative Offices in China by Overseas-Chinese-capital and Foreign-capital Financial Institutions
promulgated by the People’s Bank of China on February, 1983 are repealed simultaneously.



 
The People’s Bank of China
1991-06-11

 







CIRCULAR OF THE STATE COUNCIL ON TRANSMISSION OF THE STATE MEDIUM- AND LONG-TERM PROGRAMME ON SCIENCE AND TECHNOLOGY DEVELOPMENT

Category  SCIENCE AND TECHNOLOGY Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1992-03-08 Effective Date  1992-03-08  


Circular of the State Council on Transmission of the State Medium- and Long-term Programme on Science and Technology Development


THE STATE MEDIUM- AND LONG-TERM PROGRAMME ON SCIENCE AND TECHNOLOGY
I. Situation And Choice
II. Strategies and Guiding Principles
III. Focal Development Areas
IV. Deepening Reform and Establishing a New System for the Benefit of
V. Adhering to Opening up, Vigorously Promoting International Cooperation
VI. Policy and Measure

(March 8, 1992)

    The State Medium- and Long-term Programme on Science and Technology
Development has been examined and approved by the 94th Executive Meeting of
the State Council and is hereby transmitted to you for its implementation.

    The Medium- and Long-term Outlines on Science and Technology Development
and the Ten-Year Programme and Eighth Five-Year Plan of the People’s
Republic of China on Science and Technology Development has been agreed to
in principle by the State Council and will be circulated separately by the
State Science and Technology Commission.

THE STATE MEDIUM- AND LONG-TERM PROGRAMME ON SCIENCE AND TECHNOLOGY
DEVELOPMENT

    As the human society is greeting a new century, the world is undergoing
tremendous changes. The revolution of new science and technology is
developing swiftly and violently. Market competition is more and more
intense. The international political wind and cloud is in an unpredictable
situation. Our country and nation is faced with urgent and serious
challenges. With a view to realizing the second-stage strategic objectives
by the year 2000 and further making our country among moderately-developed
states by the middle of the next century, we should persist in the four basic
principles, continue reform and opening up and speed up economic and social
development depending on progress in science and technology. That is a great
and hard task, which concerns the future of our country and the fortune of
socialism.

    The present Programme is formulated according to the Decision of the 13th
National Congress of Representatives of the Communist Party of China (CPC) and
gists of successive CPC Central Plenary Sessions ever since the 13th
Congress. The purpose of the Programme is to precisely stipulate strategies,
guidelines, policies and key areas regarding medium and long term development
of natural sciences and technologies in our country and to direct
coordinative development of science and technology on one hand and economy
and society on the other hand by the year 2000 even throughout 2020.
I. Situation And Choice

    1. Science and technology is the first productive force and renders the
greatest revolutionary impetus to economic-social development. Under the
superior socialist system the progress of science and technology and
improvement of management will play a decisive role in our country’s
modernization. To bring economic construction onto the approach of depending
more on science and technology advance and labour quality improvement will
inevitably ensure successive realization of the second-stage strategic
objectives of our country and lay a solid foundation for achievement of the
third-stage strategic objectives. In accordance with the three-stage
strategy of the national economic construction and in the light of the
tendency and trends of international science and technology development, it
is an important historic task to make an overall arrangement for development
of science and technology over the coming 10 to 30 years.

    2. Over the last forty years, our country has made remarkable
achievements in science and technology which attract world attention. Right
now the whole country has a scientific and technological contingent of
10,900,000 people, among which 1,050,000 people are engaged in
development-oriented research. Independent research and development
institutions have numbered over 5,000 and another more than 7,000
research-based development institutions are affiliated to enterprises. A
relatively complete science and technology research system has been
established, and a series of important world-recognized scientific and
technologic achievements have been fulfilled. Our country has mainly depended
upon our own talents in solution of a large number of important scientific
and technologic problems in economic and national defence construction and in
social development. Especially over the last ten years of reform and opening
up when our country has readjusted science and technology development policy,
significant breakthroughs have been made in reform of science and technology
institutional system, organization of tackling key problems, expansion of
technologic achievements, promotion of scientific and technological progress
in countryside, facilitation of development of hi-tech industries and
strengthening of international scientific and technological cooperation and
exchange.

    3. Over the last forty years of scientific and technologic development
we have accumulated rich experiences while we also have a lot of lessons to
draw.

    Our main experiences are as follows: Firstly, scientific and
technological work must persist in being subject to the party’s leadership
and socialist approach. Secondly, we must persist in reform and opening up.
While planned management should be perfected the role of the market in
readjustment must be brought into play so that the transfer
of scientific and technological achievements into production could be
facilitated and combination of science and technology with economy could be
promoted. On the basis of self-reliance, advanced foreign experiences and
achievements in science and technology must be learned from in an active
manner so that development of science and technology could be accelerated.
Thirdly, under the unified leadership of the state, personnel and material
resources should be concentrated to organize attacking key problems and
fulfilling important research tasks that are significant to national
economic development and social progress. Fourthly, while the role of mainstay
of scientific and technological contingents should be brought into full play,
attention should also be paid to combination of the research work of expertise
with technological reform of the mass, integration of leading officials with
the skilled personnel, the workers and farmers so that efforts could be joined
to promote application of scientific and technological achievements and
dissemination of scientific and technological knowledge and to improve
scientific and cultural quality of all nationalities of the people.

    Our major lessons are as follows: Firstly, in both guiding ideology
and actual work of social development, we failed to continuously and
consistently place scientific and technological development at the important
strategic position. Secondly, economic development lacks the support of a
mechanism and internal motive by which scientific and technological progress
is depended upon. Scientific and technological development is short of
vitality arisen from economic development orientation. Large amount of
technological achievements failed to be transformed into productive capacity.
Consequently science and technology is divorced to certain extent from
economic and social development and potentials of science and technology have
not been given full play. Thirdly, scientific and technological work suffers
shortage of overall arrangement, rational division of work and prevalence of
low-level repetition. Often times state circumstances were neglected,
unpractical goals were blindly pursued in expectation of immediate
achievement. Fourthly, important error took place in terms of policy of
intellectuals to the consequence of seriously damaging intellectuals’
enthusiasm and creativity and effecting healthy development of scientific
and technological contingents. The social atmosphere has not been nurtured
in which knowledge and talents are respected.

    4. Scientific and technological work shall be oriented to modernization,
to the world and to the future. The revolution of new sciences and
technologies in modern world has been so vigorously developing that science
and technology has unprecedentedly and extensively penetrated into all fields
of human society. As a consequence, social productivity has been brought to a
great leap forward and in-depth change has happened in the global structure.
Economic and social development in all countries more and more depends upon
progress of science and technology. Combination and overlap occur between
basic researches, pragmatic researches and technological development. The
duration of the transform of technological achievements into commodity
production has become shorter and shorter. Science, technology, education
and production have become more and more closely connected.

    In prospect for the scientific and technological development worldwide
in the forthcoming 10 to 30 years, a series of newly developed sciences and
technologies will undergo breakthrough and new productive technologies and
new conception of natural phenomena will exert in-depth influence upon
development of human society. Development of hi-and-new-tech will further
change the present industrial structure and become an important factor in
the competition of global economy. Economic development and scientific and
technological progress in the world tends to be globalized and competition
in sciences and technologies all the more becomes a decisive factor in
international economic competition. At the same time the human society have
to strengthen international cooperation to solve such global problems as
population, environment, resources and calamity. No country can realize
modernization in a closed-up state.

    5. Science and technology shall be developed in the light of circumstances
of our country. Our country has a large population, poor in resources,
backward in social productivity with 80% of its population living in the
countryside. It will remain in a preliminary stage of socialism for a long
time to come. Economic and social development in our country is restrained by
factors of population, resources and environment, etc.. The population has
recorded over 1.1 billion and is expected to amount to 1.5 billion in the
2020s even the growth rate is brought under strict control. Although the
general volume of majority of resources reserve available in our country is
quite large but per capita distribution of resources is relatively inadequate.
Per capita arable land in our country is only one third of the average level
of the world as a whole while for drinking water that figure is one fourth,
for forest, one fifth and for energy resource only one half. Environment
pollution and ecological degradation have imposed serious threat to
economic and social development.

    Over a long period of time in the past we have developed our economy by
consuming a large amount of resources. A big number of industries were run
with backward technology and poor management, resulting in poor quality of
products and low economic efficiency. Our country is among the states with
highest energy consumption per product unit and productive efficiency of
social labour is equivalent to only 5% of that in advanced countries. The
disparity is basically a kind of difference in level of science and
technology, in education and in management. If we still remain in short of a
sense of urgency and emergency and don’t try to catch up, the disparity
will be broadened and our country will have the danger of failure to achieve
objectives of our socialist modernization and we will not have the position
in the world that we should have.

    6. To realize modernization of science and technology is critical for
realization of economic modernization and remarkable increase of productive
efficiency. We should bring science and technology into maximum play in the
role as the first productive force. We should show respect to knowledge, to
talents and conscientiously transfer economic construction approach to more
reliance upon scientific and technological progress and improvement of
labour quality. This important decision suggests a historic change in
development strategy regarding science, technology, economy and the society
in our country and is most significant to realization of objectives
scheduled for the present century and through to the middle of the next
century.

    Looking into the future, we should have a clear-headed awareness of the
serious situation while we should all the more be conscious of our
advantages and meet those challenges with full confidence. By now our
country has owned relatively strong scientific and technological power and
has achieved a lot of successful experiences. More significantly the ten
years of reform and opening up has vitalized the development of both
economy and science and technology. So long as we conscientiously carry
out the basic guidelines of the party, give full play to the role of
science and technology as the first productive force, rouse ourselves up and
unite in struggle, we will surely be able to accelerate development of
social productivity, shake off poverty and backwardness, realize the
ambitious objectives of modernization and make socialism fully demonstrate
its superiority.
II. Strategies and Guiding Principles

    7. The basic strategy on scientific and technological development in our
country includes strengthening scientific and technological awareness of the
whole nation, improving quality of the labour, mobilizing and attracting
majority of the scientific and technological contingents to devote themselves
to the key battle for national economic construction, emphasizing
technological innovations, strenuously absorbing and utilizing advanced and
applicable technologies in the world and speeding up technological
innovations in all fields of the national economy. Over a long period of time
in the future development of science and technology should be mainly oriented
to large-scaled industrial technology construction and equipment modernization
while at the same time hi-tech and new technologies and industries based
thereupon should be developed in a planned and programmed manner, basic
researches should be strengthened steadily and scientific reserves should
also be reinforced.

    8. Strategic objectives of scientific and technological development in
our country must be based on the general objectives and arrangements for
national economic and social development. Modern sciences and technologies
must be applied to serve the purpose of reinforcing overall national
strength and improving people’s living standards with the focus of helping
solve problems arising from large-scaled modernized production of commodities
in both industry and agriculture, effectively control and alleviate pressures
of population, resources and environment. In several scientific and
technological fields where our country has advantages, we must be bold in
making innovations, maintain the tendency of development and continue to
hold certain position upon the advanced-list of the world. Breakthroughs
must be made in key fields of high and new technologies and basic researches
so that the advanced level of the world could be caught up with and some high
and new technology based industries that have international competitive power
could be established. By the year 2000 major industries of our country should
have their technological level caught up with that of the economically
developed countries in the 1970s or in the early years of 1980s. By the year
2020 they should have equivalent technological level with that of those
countries at the beginning of the 21st century so that the gap with the
advanced level could be further narrowed as a whole.

    As regards development of agricultural sciences and technologies, the
relationship between application expansion and research development must be
dealt with properly. Applicable and supplementary advanced technologies
should be spread. Service systems for the commodity economy which take
science and technology as pillar should be developed actively. Technological
level of agriculture should be heightened. Productive structure, commodity
structure and employment structure in agriculture should be readjusted in
an appropriate manner. At the same time agricultural scientific and
technological work should be strengthened substantially and relevant
disposition in depth should be properly arranged for so that strength could
be reserved for future development of agriculture. The projects of “Spark”,
“Bumper Harvest” and “Prairie Fire”, which are intended for agricultural
economic development, should continue to be implemented.

    Development of industrial science and technology should be focused on
rise of economic efficiency. Enterprises, especially large and medium-sized
enterprises, should attach great value to scientific and technological
progress. All industrial departments should emphasize utilization of modern
sciences and technologies, modern management technologies, particularly
electronic information technology to conduct technological innovations.
Technological level of machinery equipment should also be raised. Energy
should be saved, resource consumption should be cut down, quality should be
improved, variety of products should be developed, work efficiency and
competitive capacity of products should be improved, industrial structure
and product structure should be optimized so that our economy could change
from a situation of high consumption and low efficiency to that of low
consumption but high efficiency.

    With the view of creating a favourable natural and social environment for
our people, research and development of sciences and technologies concerning
social progress should be strengthened, particularly those sciences and
technologies in respect to population, medicine and hygiene, social services,
public infrastructure, environmental and biological protection, calamity
forecasting and prevention, etc..

    Development of high and new technologies should keep on with the
principle of “Restraining Objectives and Emphasizing Key Projects”. The state
should support those high and new technological researches as key areas that
could probably make significant breakthroughs and have promising future of
application. The state should substantially render aid and support to
development of high-and-new-technology-based industries. The state should
actively create conditions and conscientiously manage high-and-new-technology
development zones in a proper manner. International cooperation in and market
expansion of high and new technologies should be accelerated. Import and
export of high and new technologies should be enlarged so that international
resources can be utilized and new-and-high-technology-based industries in our
country can be directed to the approach of globalization. Projects of high
and new technology research and development such as “Attacking Hard-core
Programme”, “863 Programme” and “Torch Programme” should be actively promoted
so that breakthroughs can be made in some fields and commercialization,
industrialization and internationalization of high and new technologies can be
accelerated.

    Basic researches should comply with rule of scientific development
itself. Survey and tracking of several scientific frontiers should be
strengthened so that we could strive to be listed in the advanced
international ranks. Pragmatic basic researches should be targeted at
solutions to important scientific and technological problems related to
economic and social development. A selected and highly capable troop should
be maintained for basic and pragmatic basic researches and should win steady
support from the state. China Academy of Sciences and high education
colleges should be brought into full play and coordination and cooperation
between the two should be strengthened so as to be in the benefit of
education of talents and maintenance of vitality.

    Development of science and technology in the field of national defence
should comply with the principles of shortening battle line, focusing on key
projects, strengthening scientific and technological work and making
innovations step by step. Attention should be paid to research and
development of high technologies that are essential to improving performance
of important conventional weapons and developing new military capacity in the
future and of technologies that will lay a foundation for further development
of sciences and technologies in national defence. Highly sophisticated
technologies in national defence should be developed continuously and the
momentum of their progress should be maintained. Promotion of technological
modernization of weapons and military equipment should continue with a view
to achieving remarkable advance in hi-tech based conventional weapons,
maintaining the effectiveness of the capacity of nuclear deterrence for
self-defence, shortening the gap with advanced levels in the world, catching
up with the world advanced standards in some fields. Science and technology
in national defence of our country could then occupy certain position in the
kingdom of most advanced sciences and technologies in the world.

    9. The basic principle should be adhered to that “economic construction
must rely upon science and technology; scientific and technological work must
be oriented to economic construction”. The progress of science and technology
must be coordinated with the economic and social development. While this
basic principle is observed and carried out the following guiding principles
that have long-term implications should also be complied with and
implemented consciously:

    — The ideology that science and technology is the first productive
force should be observed conscientiously. Awareness of the importance of
science and technology should be disseminated among the whole party and all
the people so that the social atmosphere could be created in which knowledge
and talents are respected. Governments at different levels should
effectively strengthen leadership over scientific and technological work,
give full play to the role of scientific and technological personnel,
improve scientificness, democratization and institutionalization of
decision-making and create environment and conditions in favour of scientific
and technological development.

    — Reform and opening up should be adhered to. Science and technology
should be developed in the environment of reform and opening up. Reform of
scientific and technological system shall be coordinated with the reform of
economic system and political system. While the competitive mechanism and the
role of market should be brought into further play, governments should
strengthen their macro-control function and necessary collective management
measures and conduct intervention and coordination through policy-making,
legislative, administrative and economic means.

    — The principle of combining self-reliance, self-development and
introduction of technologies must be adhered to. Introduction, absorption
and innovation of advanced foreign technologies should be adopted as
an important approach to accelerated development of sciences and
technologies in our country.

    — The principle of “letting a hundred flowers blossom and letting a
hundred schools contend” must be adhered to. Socialist democracy should be
made full use of. Academic freedom should be safeguarded. Survey and
innovation must be encouraged.

    — The principle of combining popularization with the raising of
standards should be adhered to. While both comprehensive and in-depth
arrangements for scientific and technological development are made, the
mass technological innovations should be actively encouraged. Scientific
knowledge should be strenuously popularized and scientific awareness of
the workers should be improved continuously. A long-term struggle should
be conducted against ignorance and superstition.
III. Focal Development Areas

    10. Agricultural sciences and technologies. Agriculture is the foundation
of national economy. Sustained agricultural development is a decisive factor
for long stability and coordinated development of national economy and
concerns the overall situation of construction, reform and social stability.
As population increases year after year, arable land decreases continuously,
agricultural resources are severely deficient and biological environment
deteriorates continuously, extensive approach to agriculture will have no
way out.

    Therefore the principle of agricultural prosperity relying upon science
and technology must be adhered to. Science, technology and modern industry
should be taken for strong pillars. A modernized technological system
must be established for agricultural production. Ratio of land
utilization, productivity of labour and commercialization rate of
commodities should be raised remarkably so that traditional agriculture
could be transformed to modern intensive agriculture which is based on
modern science and technology.

    Focal areas of agricultural science and technology include the following:

    — Arable land available should be effectively protected and utilized to
the full. The total state land resources, particularly large pieces of
moderate and low harvest fields, should be brought under planned
transformation. Drought and semi-drought enduring agricultural technologies,
water saving and irrigating technologies should be strenuously developed.
The potentials of hilly land, grass land, water surface and large pieces of
beach should be developed and tapped. Water conservancy should be conducted.
Erosion of water and soil should be prevented from. Biological environment
should be protected. A reasonable compound biological system covering
farming, forestry, animal husbandry, sideline production and fishery should
be established.

    — More food sources should be developed. New protein resources and
mixed fodder should be developed. Multiple foodstuff producing and processing
technologies should be developed. All kinds of animal and plant resources
should be utilized comprehensively in order that food structure of citizens
in both cities and countryside could be improved.

    — Hybrid vigor and genetic engineering technologies should be utilized
for breeding of new varieties of plants and animals that are highly
productive, fine in quality and highly preventive. Farming skills and
husbandry technologies for, say, application of comprehensive and compound
fertilizer and water-saving irrigation should be studied and developed
intensively so that quantity and quality of agricultural products could be
raised substantially.

    — Agriculture and township enterprises should be equipped with
up-to-date industrial technologies. Technologies for preserving, keeping
fresh, processing, packing and comprehensive utilizing of agricultural
products should be developed in order that agricultural industrialization and
management could be facilitated and surplus labour in agriculture could be
transformed to a commodity economy in the countryside.

    11. Industrial sciences and technologies. Industry is a dominant
department in national economy. The technological level, productive capacity
and economic efficiency of industry in our country dominate the whole
economic development. Our country has established a preliminary industrial
system with relatively complete departments. But generally speaking the
backward situation of industrial technologies remains unchanged in basic
terms. It is observed that equipment, technologies and management skills
are so backward, designs are so out of date and the level of mechanization
and automatization is so low that performance and quality of products are
poor, energy and material consumption is high and economic efficiency and
international competitive capacity of the products are low.

    Therefore the main tasks for industrial scientific and technological
development are: to transform major industrial fields of our country with
modern sciences and technologies and particularly micro-electric technologies;
to readjust and optimize industrial structure; to extensively utilize
new technological theories and new designing methods; to renew equipment,
technologies and products; to develop new manufacturing technologies and
resources exploitation technologies; to raise the level of automation and
computerization in large-scale production; to enlarge the proportion of
domestically made sets of advanced technological equipment in major trades
of industry and improve management technological level and safe production
technological level; and consequently to raise economic efficiency, enrich

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING MATTERS RELATING TO STUDENTS STUDYING ABROAD

Category  EDUCATION Organ of Promulgation  The General Office of the State Council Status of Effect  In Force
Date of Promulgation  1992-08-12 Effective Date  1992-08-12  


Circular of the General Office of the State Council Concerning Matters Relating to Students Studying Abroad



(August 12, 1992)

    The vast numbers of students studying abroad love their motherland and are
willing to devote themselves to the prosperity and might of the Chinese
nation. They study hard and many of them have achieved remarkable success and
won honour abroad. Students studying abroad are the treasures of the State.
The Party and Government have always earnestly cared for, united with and
educated the mass of students studying abroad. The motherland wishes that they
can succeed in their studies and come home to make contributions and
achievements. With a view to implementing the spirit of the instructions of
the Party Central Committee on the work for going abroad to study, further
stepping up the work and serving better the cause of the socialist
construction of our country, a circular concerning matters relating to
students studying abroad is hereby made as follows:

    1. Students studying abroad are welcome to come home for a job. Those
studying abroad at public expense shall have an obligation to return to and
serve the country after succeeding in their studies. All students studying
abroad are welcome to come home regardless their political positions in the
past. They may have a short stay for academic exchange and cooperation, or
visit relatives and friends, or take a holiday. All those who made improper
remarks or did wrong things abroad are exempt from investigation. Even if
those who participated in the anti-Chinese Government organizations and were
engaged in activities of endangering the security, honour and interests of the
State, so long as they can withdraw from such organizations and no longer be
engaged in the anti-Government activities which violate the Constitution and
laws of our country, all of them are also welcome to come home for a job.

    2. Students studying abroad who hold an expired common service passport or
a common service passport for one exit-entry trip may be permitted to extend
or renew their passports. Applications to change a common service passport
into a common private passport may be accepted. Those who have acquired
foreign nationality shall offer an application to renounce their Chinese
nationality, which shall be handled in accordance with the Nationality Law of
our country, and they shall be regarded as Chinese of foreign nationality.

    3. Applications submitted by students studying abroad for extension or
renewal of their passports, or for renunciation of Chinese nationality shall
be accepted. If they are involved in financial and other unsettled affairs
with the originally sending departments or units, the students studying abroad
shall seek a settlement through consultation with such departments or units.
This will not affect the completion of the above-mentioned formalities.

    4. Students studying abroad may leave the country again after a short stay
home without renewing the formalities for approval, provided that they hold
our country’s valid passports bearing foreign re-entry visas.

    5. Sending units shall keep in close contact with students studying abroad
and take the initiative to care for their work and lives. Returned students
may, according to the principle of “mutual choice”, go back to their original
work units or seek jobs for themselves, may work in enterprises with foreign
investment, or establish their own enterprises. Exchange and cooperation with
foreign countries is encouraged. Returned students may concurrently hold other
positions abroad with the content of the units to which they belong.

    6. Family members of students studying abroad shall be allowed to visit
them abroad if they so apply for. The public security organs shall examine the
applications according to the Law of the People’s Republic of China on the
Control of the Exit and Entry of Citizens.

    7. Each locality and each department shall, in the spirit of this
Circular, adopt specific measures to make it convenient for students studying
abroad to come home, simplify entry and exit formalities and make proper
arrangements for work and lives of returned students.

    8. In places where returned students live concentratedly, local
governments, departments concerned or social organizations concerned shall, in
the light of actual need, set up service institutions for students studying
abroad, which help students studying abroad deal with relevant affairs and
provide them with various services.

    9. Our country’s embassies and consulates abroad shall represent the State
in handling matters relating to studying abroad. They shall protect the
legitimate rights and interests of students studying abroad, help them in
their study, research, work and daily lives, relieve them of worries and solve
their problems and timely introduce our country’s condition. Education shall
be given to students studying abroad for the purpose of urging them to observe
the laws of the residing countries, studying hard, respecting themselves,
getting on well with people in the residing countries, loving the motherland,
maintaining the honour and interests of the country and wining glory for the
country.






PROVISIONAL REGULATIONS ON CONSUMPTION

Category  TAXATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1993-12-13 Effective Date  1994-01-01  


Provisional Regulations of the People’s Republic of China on Consumption


Appendix: CONSUMPTION TAXABLE ITEMS AND TAX RATES (TAX AMOUNTS) TABLE

Tax

(Adopted at the 12nd Executive Meeting of the State Council on November

26, 1993, promulgated by Decree No.135 of the State Council of the People’s
Republic of China on December 13, 1993 and effective as of January 1, 1994)

    Article 1  All units and individuals engaged in the production,
sub-contracting for processing or the importation of consumer goods prescribed
by these Regulations (hereinafter referred to as ‘taxable consumer goods’)
within the territory of the People’s Republic of China are taxpayers of
Consumption Tax (hereinafter referred to as ‘taxpayers’) and shall pay
Consumption Tax in accordance with these Regulations.

    Article 2  The taxable items, tax rates (tax amounts) of Consumption Tax
shall be determined in accordance with the Consumption Tax Taxable Items and
Tax Rates (Tax Amounts) Table attached to these Regulations.

    Any adjustments to the Consumption Tax taxable items, tax rates (tax
amounts) shall be determined by the State Council.

    Article 3  For taxpayers dealing in taxable consumer goods with different
tax rates, the sales amounts and sales volumes for the taxable consumer goods
with different tax rates shall be accounted for separately. If the sales
amounts and sales volumes have not been accounted for separately or if the
taxable consumer goods with different tax rates are combined into a whole set
of consumer goods for sales, the higher tax rate shall apply.

    Article 4  Taxable consumer goods produced by the taxpayer shall be
subject to tax upon sales. For self-produced taxable consumer goods for the
taxpayer’s own use in the continuous production of taxable consumer goods, no
tax shall be assessed; tax shall be assessed when the goods are transferred
for other use.

    For taxable consumer goods sub-contracted for processing, the tax shall be
collected and paid by the sub-contractor upon delivery to the contractor. For
taxable consumer goods sub-contracted for processing used by the contractor
for the continuous production of taxable consumer goods, the tax paid can be
credited in accordance with the regulations.

    Imported taxable consumer goods shall be subject to tax upon import
declaration.

    Article 5  The computation of tax payable for Consumption Tax shall follow
either the rate on value or the amount on volume method. The formulas for
computing the tax payable are as follows:

    The tax payable computed under the rate on value mentod

                          
= Sales amount * Tax rate

    The tax payable computed under the amount on volume mentod

                          
= Sales volume * Tax amount per unit

    For taxable consumer goods sold by taxpayer where the sales amounts are
computed in foreign currencies, the taxable amounts shall be converted into
Renminbi according to the exchange rates prevailing in the foreign exchange
market.

    Article 6  The “sales amount” as stipulated in Article 5 of these
Regulations shall be the total consideration and other charges receivable from
the buyer for the taxable consumer goods sold by the taxpayer.

    Article 7  Self-produced taxable consumer goods for the taxpayer’s own use
that shall be subject to tax in accordance with the stipulations of the first
paragraph in Article 4 of these Regulations shall be assessed according to the
selling price of similar consumer goods produced by the taxpayer. If the
selling price of similar consumer goods is not available, the tax shall be
assessed according to the composite assessable value. The formula for
computing the composite assessable value is as follows:

    Composite assessable value = (Cost + Profit) / (1 – Consumption Tax rate)

    Article 8  Taxable consumer goods sub-contracted for processing shall be
assessed according to the selling price of similar consumer goods of the
sub-contractor. If the selling price of similar consumer goods is not
available, the tax shall be assessed according to the composite assessable
value. The formula for computing the composite assessable value is as follows:

    Composite assessable value

      = (Cost of material + Processing fee) / (1 – Consumption Tax rate)

    Article 9  Imported taxable consumer goods which adopt the rate on value
method in computing the tax payable shall be assessed according to the
composite assessable value. The formula for computing the composite assessable
value is as follows:

    Composite assessable value

    = (Customs dutiable value + Customs Duty) / (1 – Consumption Tax rate)

    Article 10  Where the taxable value of the taxable consumer goods of the
taxpayer is obviously low and without proper justification, the taxable value
shall be determined by the competent tax authorities.

    Article 11  For taxpayers exporting taxable consumer goods, the
Consumption Tax shall be exempt, except as otherwise determined by the State
Council. The measures for exemption of exported taxable consumer goods shall
be regulated by the State Administration for Taxation.

    Article 12  Consumption Tax shall be collected by the tax authorities.
Consumption Tax on the importation of taxable consumer goods shall be
collected by the customs office on behalf of the tax authorities.

    Consumption Tax on taxable consumer goods brought or mailed into China by
individuals shall be levied together with Customs Duty. The detailed measures
shall be formulated by the Tariff Policy Committee of the State Council
together with the relevant departments.

    Articie 13  Taxpayers selling taxable consumer goods and self-producing
taxable consumer goods for their own use, except otherwise as determined by
the State, shall report and pay tax to the local competent tax authorities
governing the taxpayers.

    For taxable consumer goods sub-contracted for processing, the Consumption
Tax due shall be paid to the local competent tax authorities where the
sub-contractors are located.

    For imported taxable consumer goods, the tax shall be reported and paid by
the importers or their agents to the customs offices where the imports are
declared.

    Article 14  The Consumption Tax assessable period shall be one day, three
day, five days, ten days, fifteen days or one month. The actual assessable
periods of the taxpayers shall be separately determined by the competent tax
authorities according to the magnitude of the tax payable of the taxpayers;
tax that cannot be assessed in regular periods can be assessed on a
transaction-by-transaction basis.

    Taxpayers that adopt one month as an assessable period shall report and
pay tax within ten days following the end of the period. If an assesable
period of one day, three days, five days, ten days or fifteen days is adopted,
the tax shall be prepaid within five days following the end of the period, and
a monthly return shall be filed with any balance of tax due settled within ten
days from the first day of the following month.

    Article 15  Taxpayers importing taxable consumer goods shall pay tax
within seven days after the completion and issuance of the tax payment
certificates by the customs office.

    Article 16  The collection and administration of Consumption Tax shall be
conducted in accordance with the relevant provisions of the Law of the
People’s Republic of China on Tax Collection and Administration and these
Regulations.

    Article 17  The collection of Consumption Tax from foreign investment
enterprises and foreign enterprises shall be conducted in accordance with the
resolutions of the Standing Committee of the National People’s Congress.

    Article 18  The Ministry of Finance shall be responsible for the
interpretation of these Regulations and for the formulation of the rules for
the implementation of these Regulations.

    Article 19  These Regulations shall come into effect from January 1, 1994.
The relevant regulations of the State Council regarding the collection of
Consumption Tax prior to the promulgation of these Regulations shall be
superseded on the same date.

Appendix: CONSUMPTION TAXABLE ITEMS AND TAX RATES (TAX AMOUNTS) TABLE


        Taxable Items            Scope
of charge    Tax Unit   Tax Rate/Amount

    I. Tobacco

    1. Grade A cigarettes        Including Imported                  
45%

                                
Cigarettes

    2. Grade B cigarettes                                            
40%

    3. Cigars                                                        
40%

    4. Cut tobacco                                                    30%

   II. Alcoholic drinks and

       alcohol                                          

    1. White spirits made from                                        25%

       cereal

    2. White spirits made from                                        15%

       potatoes

    3. Yellow spirits                                  
ton           240yuan

    4. Beer                                            
ton           220yuan

    5. Other alcoholic drinks                                        
10%

    6. Alcohol                                                        5%

  III. Cosmetics                 Including
cosmetics                  30%

                                
sets

   IV. Skin-care and hair-care                                        17%

       products

    V. Precious jewelry and      Including all kinds of              
10%

       precious jade and stones  gold, silver, jewelry,

                                
and precious stone

                                
ornaments

   VI. Firecrackers and                                              
15%

       fireworks

  VII. Gasoline                                        
litre         0.2yuan
VIII. Diesel oil                                      
litre         0.1yuan

   IX. Motor vehicle tyres                                            10%

    X. Motorcycles                                                    10%

   Xl. Motor Cars

    1. Those with a cylinder                                          8%

         capacity (i.e. emission

         capacity) of more than

         2,200 ml (including

         2,200 ml)

       Those with a cylinder                                          5%

         capacity of between

         1,000-2,200 ml

         (including 1,000 ml)

       Those with a cylinder                                          3%

         capacity of less than

         1,000 ml

    2. Cross-country vehicles

         (four-wheel drive)

       Those with a cylinder                                          5%

         capacity of more than

         2,400 ml (including

         2,400 ml)

       Those with a cylinder                                          3%

         capacity of less than

         2,400 ml

    3. Minibuses and vans        less than 22 seats

       Those with a cylinder                                          5%

         capacity of more than

         2,000 ml (including

         2,000 ml)

       Those with a cylinder                                          3%

         capacity of less than

         2,000 ml








CIRCULAR OF THE STATE COUNCIL CONCERNING THE STRICT EXAMINATION AND APPROVAL AND CHECKS ON VARIOUS DEVELOPMENT ZONES

Category  SPECIAL ECONOMIC ZONES AND COASTAL ECONOMIC DEVELOPMENT ZONES Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1993-04-28 Effective Date  1993-04-28  


Circular of the State Council Concerning the Strict Examination and Approval and Checks on Various Development Zones



(Promulgated by the State Council on April 28, 1993)

    It is one of the important measures of China’s reform and opening-up
policy to set up rationally distributed development zones in places where
conditions permit, concentrate the effort in developing their infrastructure
construction, put into effect preferential policies and create a good
investment environment in order to attract foreign investment. Practice shows
that this is an effective measure and should be maintained in the future.
However, since last year there has been a boom in development zones with
increasing numbers involved in a wider range of activities. As a result, they
have taken over large plots of cultivated land and needed considerable
funding. It is obvious that they have now gone beyond practical needs and,
indeed, economic endurance. In a few places, the tax and land laws issued by
the State are ignored and governments of various levels have exceeded their
authority to make and issue tax-free measures without permission, which has
caused harmful effects. Without strict and resolute measures to check this
trend, it will aggravate the shortage of funding, energy resources,
communications and transportation and supply of raw materials, which will
effect the normal running of the national economy and the healthy development
of opening to the outside world. The following circular is hereby issued
concerning this issue.

    1. Development zones should follow a double level system of examination
and approval — the State Council and the people’s government of provinces,
autonomous regions and municipalities directly under the Central Government.
The people’s governments at various levels under the provinces, autonomous
regions and municipalities under the Central Government cannot examine and
approve the establishment of various development zones.

    2. The State Council has the authority to examine and give approval for
the establishment of economic technology development zones, bonded areas,
hi-tech industrial development zones, state tourist and holiday zones and
frontier economic cooperation zones. If any of the above-mentioned development
zones are to be set up, the people’s government of the concerned province,
autonomous region or municipality directly under the Central Government and
the department of the State Council in charge of the project should guide the
primary planning and the study of its feasibility, then report to the State
Council.

    3. In order to attract foreign investment to develop projects in industry,
agriculture, international tourism and hi-tech industry, the people’s
governments of provinces, autonomous regions and municipalities directly under
the Central Government can, according to local resources, practical needs and
conditions, approve the establishment of a small number of development zones
(tourist and holiday zones), make related preferential policies within the
limit of their authority, and report to the State Council. But the development
zones set up with the approval of the people’s governments of the provinces,
autonomous regions and municipalities directly under the Central Government
cannot continue to use the post_title and policy of the development zones set up
with the approval of the State Council.

    4. The examination and approval of development zones should strengthen
overall planning and rational distribution, and pay attention to
socio-economic efficiency. The government should strictly control the areas of
development zones and emphasize that such projects should actually result in
development. It will insist that progress on such projects should only be made
according to the capability of those involved to develop the plot, build and
make profits. The government should examine and approve the land strictly
according to the law, save land resources and strictly control the occupation
of cultivated land. In principal, cultivated land within the basic farmland
protective region is not to be occupied.

    5. Every region should carry out an inspection of the various development
zones set up without the approval of the State Council or the people’s
governments of provinces, autonomous regions and municipalities directly under
the Central Government. The government should firmly and resolutely terminate
approval for the continued development of zones where the basic construction
conditions are lacking, the project or funding is unsettled, too much land is
occupied or the land is occupied without use. The land should then be returned
to the peasants. To abandon cultivated land or leave a land uncultivated is
strictly forbidden.

    6. All regions and departments should uphold the State policies, laws and
regulations, strictly abide by the tax and land laws, and related policies and
regulations issued by the State. It is forbidden to ignore or exceed the
authority of the State and to make preferential policies, reduce tax or yield
interest in disguised form without permission. The people’s governments and
the department of the State Council concerned should strengthen supervision of
this issue.

    7. The people’s governments of provinces, autonomous regions and
municipalities directly under the Central Government should report before the
end of June 1993 to the General Office of the State Council on the inspection
work carried out on various development zones.






DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE TREATMENT OF THE EXISTING HONG KONG LAWS ACCORDING TO ARTICLE 160 OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION BASIC LAW

Category  SPECIAL ADMINISTRATIVE REGION Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1997-02-23 Effective Date  1997-02-23  


Decision of the Standing Committee of the National People’s Congress Regarding the Treatment of the Existing Hong Kong Laws According
to Article 160 of the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China



(Adopted at the 24th Meeting of the Standing Committee of the Eighth

National People’s Congress on February 23, 1997)

    The Basic Law of the Hong Kong Special Administrative Region of the
People’s Republic of China (hereinafter referred to as the Basic Law)
provides in its Article 160: “Upon the establishment of the Hong Kong Special
Administrative Region, the laws previously in force in Hong Kong shall be
adopted as laws of the Region except for those which the Standing Committee
of the National People’s Congress declares to be in contravention of this
Law. If any laws are later discovered to be in contravention of this Law, they
shall be amended or cease to have force in accordance with the procedure as
prescribed by this Law.” Article 8 of the same Law provides: “The laws
previously in force in Hong Kong, that is, the common law, rules of equity,
ordinances, subordinate legislation and customary law shall be maintained,
except for any that contravene this Law, and subject to any amendment by the
legislature of the Hong Kong Special Administrative Region.” According to the
aforesaid provisions, and having deliberated the suggestions by the
Preparatory Committee for the Hong Kong Special Administrative Region
regarding the treatment of the laws previously in force in Hong Kong, the
24th Meeting of the Eighth National People’s Congress hereby makes the
following decisions:

    1. The laws previously in force in Hong Kong, including the common law,
rules of equity, ordinances, subordinate legislation and customary law, shall
be adopted as laws of the Hong Kong Special Administrative Region, except for
those contravening the Basic Law.

    2. The ordinances and subordinate legislation previously in force in Hong
Kong, which are listed in Appendix I of this Decision, shall not be adopted
as laws of the Hong Kong Special Administrative Region for their contravening
the Basic Law.

    3. Some provisions of certain ordinances and subordinate legislation
previously in force in Hong Kong, which are listed in Appendix II of this
Decision, shall not be adopted as laws of the Hong Kong Special
Administrative Region for their contravening the Basic Law.

    4. The laws previously in force in Hong Kong which have been adopted as
laws of the Hong Kong Special Administrative Region shall, starting July 1,
1997, make necessary modification, adaptation, restriction or exception in
applying, so as to tally with the relevant provisions of the Basic Law and
the status of Hong Kong after the resumption of the exercise by the People’s
Republic of China of the sovereignty over Hong Kong. For instance, the
application of the New Territories Land (Exemption) Ordinance shall conform
to the above-mentioned principles.

    In addition to the aforesaid principles, among the ordinances and
subordinate legislation previously in force,

    (1) If any laws concerning foreign affairs related with the Hong Kong
Special Administrative Region are inconsistent with any national law in force
in Hong Kong, the latter shall prevail, with conformation with the
international rights and obligations which the Central People’s Government
enjoys or bears.

    (2) Any provisions granting privileges to Britain or other nations or
regions of the British Commonwealth shall not be maintained, except for those
reciprocity provisions between Hong Kong and Britain or other nations or
regions of the British Commonwealth.

    (3) As for provisions concerning the rights, immunity and duties of
military forces stationed to Hong Kong by Britain, those not contravening the
Basic Law and the Garrison Law of the Hong Kong Special Administrative Region
of the People’s Republic of China shall be maintained and apply to the
military forces stationed to Hong Kong by the Central People’s Government of
the People’s Republic of China.

    (4) Provisions concerning English language’s higher authenticity than
Chinese language shall be interpreted as both of them are formal languages.

    (5) Provisions containing citations of British laws may continue to be
referred to and apply during the transition process before any amendment has
been made to them, provided that they do not impair the sovereignty of the
People’s Republic of China or contravene the Basic Law.

    5. Unless the context otherwise requires, the laws previously in force in
Hong Kong adopted as laws of the Hong Kong Special Administrative Region
under Article 4 of this Decision shall have their post_titles or expressions
interpreted and applied in accordance with the substitution principles
provided for in Appendix III.

    6. Any laws previously in force in Hong Kong adopted as laws of the
Hong Kong Special Administrative Region may be amended or invalidated in
accordance with the procedures stipulated by the Basic Law, if, in the
future, they are discovered to contravene the Basic Law.

    Appendix I

    The following ordinances and subordinate legislation among the laws
previously in force in Hong Kong shall not be adopted as laws of the Hong
Kong Special Administrative Region because of their contravening the Basic
Law:

    1. Trustees (Hong Kong Government Securities) Ordinance (Chapter 77,
Laws of Hong Kong);

    2. Application of English Law Ordinance (Chapter 88, Laws of Hong Kong);

    3. Foreign Marriage Ordinance (Chapter 180, Laws of Hong Kong);

    4. Chinese Extradition Ordinance (Chapter 235, Laws of Hong Kong);

    5. Colony Armorial Bearings (Protection) Ordinance (Chapter 315, Laws of
Hong Kong);

    6. Secretary of State for Defence (Succession to Property) Ordinance
(Chapter 193, Laws of Hong Kong);

    7. Royal Hong Kong Regiment Ordinance (Chapter 199, Laws of Hong Kong);

    8. Compulsory Service Ordinance (Chapter 246, Laws of Hong Kong);

    9. Army and Royal Air Force Legal Services Ordinance (Chapter 286, Laws
of Hong Kong);

    10. British Nationality (Miscellaneous Provisions) Ordinance
(Chapter 186, Laws of Hong Kong);

    11. British Nationality Act 1981 (Consequential Amendments) Ordinance
(Chapter 373, Laws of Hong Kong);

    12. Electoral Provisions Ordinance (Chapter 367, Laws of Hong Kong);

    13. Legislative Council (Electoral Provisions) Ordinance (Chapter 381,
Laws of Hong Kong); and

    14. Boundary and Election Commission Ordinance (Chapter 432, Laws of
Hong Kong).

    Appendix II

    Certain provisions of the following ordinances and subordinate
legislation among the laws previously in force in Hong Kong shall not be
adopted as laws of the Hong Kong Special Administrative Region because of
their contravening the Basic Law:

    1. The definition of “permanent residents of Hong Kong” in Section 2, and
the provisions of “permanent residents of Hong Kong” in Appendix 1,
Immigration Ordinance (Chapter 115, Laws of Hong Kong);

    2. Any provisions for the implementation in Hong Kong of the British
Nationality Act;

    3. Provisions concerning election in Urban Council Ordinance
(Chapter 101, Laws of Hong Kong);

    4. Provisions concerning election in Regional Council Ordinance
(Chapter 385, Laws of Hong Kong);

    5. Provisions concerning election in District Boards Ordinance
(Chapter 366, Laws of Hong Kong);

    6. Subordinate legislation A, Urban Council, Regional Council and Board
Election Expenses Order and subordinate legislation C, Resolution of the
Legislative Council, of Corrupt and Illegal Practices Ordinance (Chapter 288,
Laws of Hong Kong);

    7. Provisions concerning the interpretation and the purpose of the
Ordinance in Section 2(3), provisions concerning the “affection to previous
law” in Section 3 and provisions concerning the “interpretation of laws in
the future” in Section 4, of Hong Kong Bill of Rights Ordinance (Chapter 383,
Laws of Hong Kong);

    8. Provisions concerning the Ordinance’s overriding position in
Section 3(2), of Personal Data (Privacy) Ordinance (Chapter 486, Laws of Hong
Kong);

    9. Major amendments, having been made since July 17, 1992, to the
Societies Ordinance (Chapter 151, Laws of Hong Kong); and

    10. Major amendments, having been made since July 27, 1995, to the Public
Order Ordinance (Chapter 245, Laws of Hong Kong).

    Appendix III:

    The laws previously in force in Hong Kong adopted as laws of the Hong
Kong Special Administrative Region shall generally have their post_titles and
expressions interpreted and applied in accordance with the following
substitution principles:

    1. Any reference of “the Queen”, “royal”, “the British Government”,
“Secretary of State” or other similar post_titles or expressions shall be regarded
as referring to the central or other competent authorities of China, if the
provisions are concerning the Hong Kong land use right or involving the
affairs under the central administration or the relationship between the Hong
Kong Special Administrative Region and the central authorities prescribed by
the Basic Law; in other context, they shall be regarded as referring to
the government of the Hong Kong Special Administrative Region.

    2. Any reference of “the Queen in Privy Council” or the “Privy Council”
shall be regarded as referring to the Court of Final Appeal of the Hong Kong
Special Administrative Region, if the provisions are concerning the right of
appeal; in other context, it shall be treated in accordance with the
provisions of the preceding paragraph.

    3. Any government organizations or semi-governmental organizations which
have their name preceded by “royal” shall delete the word “royal” and
regarded as organizations of the Hong Kong Special Administrative Region.

    4. Any reference of “this colony” shall be regarded as referring to the
Hong Kong Special Administrative Region; any provisions concerning the
territories of Hong Kong shall be applied after relevant interpretations have
been made in accordance with the map of the administrative division of the
Hong Kong Special Administrative Region published by the State Council.

    5. Any reference of “Supreme Court” and “High Court” shall be regarded as
respectively referring to the High Court and the Court of First Instance of
the High Court.

    6. Any reference of “Governor”, “Governor in Executive Council”, “Chief
Secretary”, “Attorney General”, “Chief Justice”, “Secretary for Home Affairs”,
“Secretary for Constitutional Affairs”, “Commissioner of Customs and Excise”
or “Judges” shall be regarded as respectively referring to the Chief Executive
of the Hong Kong Special Administrative Region, Chief Executive in the
Executive Council, Administrative secretary, Secretary of Justice, Chief
Justice of the Court of Final Appeal or Chief Judge of the High Court,
Secretary for Home Affairs, Secretary for Electoral Affairs, Commissioner of
Customs and Excise and Judges of the High Court.

    7. Any post_titles or expressions in the Chinese texts of laws previously in
force in Hong Kong, of or regarding the Legislative Council, the judiciary or
the executive authorities or the personnel thereof shall be interpreted and
applied in accordance with relevant provisions of the Basic Law.

    8. Any reference of “the People’s Republic of China”, “China” or other
similar post_titles or expressions shall be regarded as referring to the People’s
Republic of China including Taiwan, Hong Kong and Macao; any individual or
simultaneous reference of the mainland, Taiwan, Hong Kong or Macao shall be
regarded as referring to a part of the People’s Republic of China.

    9. Any reference of “foreign countries” or other similar post_titles or
expressions shall be regarded as referring to any country or region other
than the People’s Republic of China or, in accordance with the context of the
law or articles or sections, regarded as referring to “any area outside the
Hong Kong Special Administrative Region”; any reference of “foreigners” or
other similar post_titles or expressions shall be regarded as referring to any
persons other than citizens of the People’s Republic of China.

    10. Any provisions as “the stipulations of this ordinance shall not
prejudice nor may be regarded as prejudice to the rights of the Queen, her
crown prince or successor to the throne” shall be interpreted as “the
stipulations of this ordinance shall not prejudice nor may be regarded as
prejudice to the rights enjoyed by the Central Government or the government
of the Hong Kong Special Administrative Region according to the provisions of
the Basic Law and other laws.






CONSTITUTION ACT, 1982 – page 22

NOTES (1) The enacting clause was repealed by the Statute Law Revision Act, 1893, 56-57 Vict., c. 14 (U.K.). It read as...