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MEASURES FOR THE ADMINISTRATION OF FOREIGN-CAPITAL FINANCIAL INSTITUTIONS AND CHINESE-FOREIGN EQUITY JOINT FINANCIAL INSTITUTIONS IN THE SHANGHAI MUNICIPALITY

Category  BANKING Organ of Promulgation  The State Council Status of Effect  Invalidated
Date of Promulgation  1990-09-08 Effective Date  1990-09-08 Date of Invalidation  1994-04-01


Measures for the Administration of Foreign-capital Financial Institutions and Chinese-foreign Equity Joint Financial Institutions
in the Shanghai Municipality

Chapter I  General Provisions
Chapter III  Registered Capital and Operating Funds
Chapter IV  Business Scope
Chapter V  Management of Business
Chapter VI  Supervision and Inspection
Chapter VII  Dissolution and Liquidation
Chapter VIII  Provisions of Penalties
Chapter IX  Supplementary Provisions

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

Decree No. 2 of the People’s Bank of China on September 8, 1990) (Editor’s
Note: The Measures have been annulled by the Regulations of the People’s
Republic of China on Administration of Foreign-Capital Financoal Institutions
promulgated on February 25, 1994 and effective as of April 1, 1994)
Chapter I  General Provisions

    Article 1  These Measures are formulated for the purpose of meeting the
needs of opening to the outside world and the economic development of the
Shanghai Municipality, strengthening and perfecting the administration of
foreign-capital financial institutions and Chinese-foreign equity joint
financial institutions.

    Article 2  The term “foreign-capital financial institutions and
Chinese-foreign equity joint financial institutions”, referred to in these
Measures, denotes the following institutions which are established with
approval and registered to engage in business operations in accordance with
these Measures and with the pertinent provisions of other laws and regulations
of the People’s Republic of China:

    1) foreign-capital banks with their head offices established in the
Shanghai Municipality (hereinafter referred to as “foreign bank”);

    2) branches of foreign banks established in the Shanghai Municipality
(hereinafter referred to as foreign branch bank”);

    3) banks established in the Shanghai Municipality with joint capital and
operation by foreign financial institutions and Chinese financial institutions
(hereinafter referred to as “joint bank”); and

    4) financial companies established in the Shanghai Municipality with
joint capital and operation by foreign financial institutions and Chinese
financial institutions (hereinafter referred to as “joint financial company”).

    Article 3  Foreign-capital financial institutions and Chinese-foreign
equity joint financial institutions shall abide by the laws and regulations of
the People’s Republic of China and their legitimate business activities and
lawful rights and interests shall be protected by Chinese laws.

    Article 4  The People’s Bank of China is the competent authority in charge
of examining and approving, administering, and supervising foreign-capital
financial institutions and Chinese-foreign equity joint financial institutions.
The People’s Bank of China authorizes its Shanghai Branch to exercise
day-to-day administration and supervision of foreign capital financial
institutions and Chinese-foreign equity joint financial institutions.

    Chapter II  Establishment and Registration

    Article 5  Any party applying for the approval to set up a foreign bank
shall satisfy the following requirements:

    1) the investor is a financial institution;

    2) the applicant has a representative office of more than three years’
standing inside China; and

    3) the applicant possesses total assets of more than US$ 10 billion at
the end of the year prior to the submission of such an application.

    Article 6  Any party applying for the approval to set up a foreign branch
bank shall satisfy the following requirements:

    1) the applicant has a representative office of more than three years’
standing inside China;

    2) the applicant possesses total assets of more than US$ 20 billion at
the end of the year prior to the submission of such an application; and

    3) in the home country or region of the applicant, there is a sound system
for financial administration and supervision.

    Article 7  Parties applying for the approval to set up a joint bank or a
joint financial company shall satisfy the following requirements:

    1) each investing party to a joint bank or joint financial company is a
financial institution; and

    2) the foreign investor has a representative office inside China.

    Article 8  For a foreign bank to be set up, the foreign investor shall
apply to the people’s Bank of China and submit the following documents and
data:

    1) an application for the establishment thereof, which shall include the
name of the intended bank, the registered capital and the amount of the
paid-in capital, and the types of business operations the bank intends to
engage in;

    2) a feasibility study report;

    3) the statements of assets and liabilities of the investor during the
three successive years prior to the submission of such an application,
together with the relevant certifying documents;

    4) the draft articles of association of the intended bank;

    5) a copy of the business licence of the investor approved and issued by
the competent authority concerned in the home country or region of the
investor and;

    6) other documents and data as required by the People’s Bank of China.

    Article 9  For a foreign branch bank to be set up, the head office of the
foreign bank concerned shall apply to the People’s Bank of China and submit
the following documents and data:

    1) an application duly signed by the chairman of the board of directors
or the general manager of the bank, which shall include the name of the
intended branch bank, the amount of operating funds approved and allocated
by the head office, and the types of business operations the branch bank
intends to engage in;

    2) annual reports for the three successive years prior to the submission
of such an application;

    3) a copy of the business licence of the applying bank approved and
issued by the competent authorities of the home country or region of the
applying bank; and

    4) other documents and data as required by the People’s Bank of China.

    Article 10  For a joint bank or a joint financial company to be set up,
all the parties thereto shall jointly apply to the People’s Bank of China
and submit the following documents and data:

    1) an application for the establishment thereof, which shall include the
name of the intended joint financial institution, the name of each investing
party thereto, the registered capital and the amount of the paid-in capital,
the respective percentage of contributions by the parties, and the types of
business operations the joint financial institution intends to engage in;

    2) a feasibility study report jointly prepared by the parties thereto;

    3) the agreement, the contract and the draft articles of association of
the joint financial institution initialled by the authorized representative
of each of the parties thereto;

    4) the statements of assets and liabilities of each of the parties
thereto during the three successive years prior to the submission of such
an application, together with relevant supporting documents;

    5) copies of the respective business licences of all the parties thereto
approved and issued by the competent authorities concerned of the home
country of region of each of the parties; and

    6) other documents and data as required by the People’s Bank of China.

    Article 11  Any of the documents and data prescribed in Articles 8,9 and
10 of these Measures, with the exception of the annual reports, if written
in a foreign language, shall be submitted together with a Chinese translation
thereof.

    Article 12  After the application for the approval of such establishment
has been examined and approved by the People’s Bank of China, an official
application form shall be issued to the applicant(s).

    The applicant(s) shall, after filling in the official application form,
formally apply to the People’s Bank of China and shall submit the following
documents for the application:

    1) the official application form duly signed by the legal
representative(s) of the applicant(s) or the representative(s) authorized by
the applicant(s) (which shall be submitted in triplicate);

    2) a list of the principal persons in charge of the institution to be set
up and their respective curriculum vitae;

    3) power(s) of attorney for the principal persons in charge of the
institution;

    4) where a foreign branch bank is to be set up, letters of undertaking
issued by the head office assuming for its branch office the obligations for
tax payment and debt repayment; and

    5) other relevant data.

    Article 13  A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution shall, within 30 days of receipt of the
certificate of approval issued by the People’s Bank of China, undertake the
procedures of registration for the issuance of business licence with the
administrative department for industry and commerce in accordance with the
pertinent laws and regulations of the People’s Republic of China and shall,
within 30 days of commencement of business operations, undertake the
procedures for tax registration with the tax authorities in accordance with
the law.

    Article 14  A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution whose establishment has been approved
shall, after obtaining the business licence, apply to the State Administration
of Foreign Exchange Control for the approval and issuance of a Licence for
Business Operations in Foreign Exchange.

    Article 15  In the event that a foreign-capital financial institution or
a Chinese-foreign equity joint financial institution should fail to commence
its business operations within 12 months of receipt of the certificate of
approval issued by the People’s Bank of China, the certificate of approval
shall automatically become null and void.

    Article 16  A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution shall apply to the People’s Bank of China
for verification and approval in respect of any one of the following items:

    1) adjustment and transfer of the investment capital stock;

    2) change of the business site;

    3) change of the chairman (or the vice-chairman) of the board of
directors, or the president (or the vice-president), the general manager
(or the deputy general manager), or the president (or vice-president) of a
branch office; and

    4) establishment of a branch office outside China.
Chapter III  Registered Capital and Operating Funds

    Article 17  The minimum amount of the registered capital of a foreign
bank or a joint bank shall be freely convertible currencies equivalent to
US$ 30 million. The minimum amount of the registered capital of a joint
financial company shall be freely convertible currencies equivalent to US$ 20
million. Their respective paid-in capital shall be no less than 50 percent of
their respective registered capital.

    A foreign branch bank shall be allocated as its operating funds by its
head office a sum of freely convertible currencies equivalent to not less
than US$ 30 million.

    Article 18  A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution shall, within 30 days of receipt of the
certificate of approval issued by the People’s Bank of China, raise in full
the paid-in capital operating funds, which shall be verified by a Chinese
registered accountant, who shall, upon verification, issue a certificate to
that effect.

    Article 19  Each year, a foreign bank, a joint bank, or a joint financial
company shall allocate 25 percent of its after-tax net profit as supplementary
capital until the total amount of the paid-in capital and reserve funds is
twice that of the registered capital.

    Each year, a foreign branch bank shall keep 25 percent of its after-tax
net profit inside China to supplement its operating funds until the kept
profit is equal to its operating funds.
Chapter IV  Business Scope

    Article 20  The People’s Bank of China shall, based on the application
submitted to it, grant permission to a foreign bank, a joint bank, or a
foreign branch bank to engage in part or all of the following business
operations:

    1) deposits in foreign currencies;

    2) loans in foreign currencies;

    3) discounts of negotiable instruments in foreign currencies;

    4) investments in foreign currencies;

    5) remittances in foreign currencies;

    6) guarantees of foreign exchange;

    7) import and export settlement;

    8) buying and selling of foreign exchange on its own account or on
customers’ account;

    9) buying and selling of securities in foreign currencies;

    10) acting as an agent for the exchange of foreign currencies and for
the cashing of negotiable instruments in foreign currencies;

    11) acting as an agent for payments against credit cards in foreign
currencies;

    12) custody and safe deposit box services;

    13) credit and financial standing investigation and consultancy services;
and

    14) other services approved.

    Article 21  The People’s Bank of China shall, based on the application
submitted to it, grant permission to a joint financial company to engage in
part or all of the following business operations:

    1) loans in foreign currencies;

    2) discounts of negotiable instruments in foreign currencies;

    3) investments in foreign currencies;

    4) guarantees of foreign exchange;

    5) buying and selling of securities in foreign currencies;

    6) credit and financial standing investigations and consultancy services;

    7) trust in foreign currencies;

    8) deposits in foreign currencies with each deposit amounting to not
less than US$ 100,000 for period of no less than three months; and

    9) other services approved.

    Article 22  The terms “deposits in foreign currencies” referred to in
this Chapter denotes the following deposits denominated in foreign currencies:

    1) interbank deposits inside and outside China;

    2) non-interbank deposits outside China;

    3) deposits by foreigners inside China;

    4) deposits by overseas Chinese and by compatriots from Hong Kong, Macao
and Taiwan;

    5) deposits by enterprises with foreign investment;

    6) deposits of loans granted by foreign-capital financial institutions
or Chinese-foreign equity joint financial institutions to enterprises other
than those with foreign investment; and

    7) other kinds of deposits approved.

    Article 23  In handling import and export settlement, foreign banks,
joint banks or foreign branch banks shall offer services only to enterprises
with foreign investment and those enterprises other than those with foreign
investment which are authorized to engage in import and export operations.
But with respect to import settlement with enterprises other than those with
foreign investment, the funds needed for the import in question shall have
come from the loans of the bank which is handling the settlement.
Chapter V  Management of Business

    Article 24  A foreign-capital institution or a Chinese-foreign equity
joint financial institution which engages in deposit business operations
shall place deposit reserves with the Shanghai Branch of the People’s Bank
of China. The ratios of the reserves as against various deposits shall be
determined by the People’s Bank of China and shall be adjusted in accordance
with the actual needs. Such deposit reserves shall be interest-free.

    Article 25  The total amount of loans which a foreign-capital financial
institution or a Chinese-foreign equity joint financial institution grants
to any one enterprise and its associated enterprises may not exceed 30
percent of the sum total of its paid-in capital and its total reserves, with
the exception of loans specially approved by the People’s Bank of China.

    Article 26  The total amount of investments by a foreign-capital financial
institution or by a Chinese-foreign equity joint financial institution may
not exceed 30 percent of the sum total of its paid-in capital and its total
reserves, with the exception of investments in financial enterprises approved
by the People’s Bank of China.

    Article 27  The total assets of a foreign-capital financial institution
or of a Chinese-foreign equity joint financial institution may not exceed 20
times the sum total of its paid-in capital and its total reserves.

    Article 28  30 percent of the operating funds of a foreign branch bank
shall be put by in the form of interest-bearing assets as prescribed by the
People’s Bank of China, which shall include depositing the said funds in a
bank or banks designated by the People’s Republic of China.

    Article 29  Real estate owned by a foreign-capital financial institution
or by a Chinese-foreign equity joint financial institution may not exceed
25 percent of the sum total of its paid-in capital and its total reserves;
its other assets may not exceed 15 percent thereof.

    Article 30  A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution shall ensure the mobility of its assets.

    Article 31  The total amount of deposits by sources inside China in a
foreign-capital financial institution or in a Chinese-foreign equity joint
financial institution may not exceed 40 percent of its total assets inside
China.

    Article 32  A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution shall maintain proper reserves for bad
debts in accordance with the relevant provisions.

    Article 33  The interest rates of deposits and loans of a foreign-capital
financial institution or of a Chinese-foreign equity joint financial
institution and the various service charges shall be determined by the
Bankers’ Association through consultation or be fixed in the light of the
international market and shall be submitted to the Shanghai Branch of the
People’s Bank of China for approval.

    Article 34  A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution shall, in accordance with the relevant
provisions, draw the reserve fund, the staff bonus fund, the welfare fund
and the enterprise development fund from the profit after tax paid in
accordance with the law.

    Article 35  A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution shall engage at least one Chinese citizen
as member of its senior managerial body.

    The senior managerial personnel of a foreign-capital financial institution
or of a Chinese-foreign equity joint financial institution may not
concurrently hold important positions in any other economic organizations.

    Article 36  A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution shall invariably appoint a Chinese
registered accountant and such an appointment is subject to confirmation by
the Shanghai Branch of the People’s Bank of China.
Chapter VI  Supervision and Inspection

    Article 37  A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution shall set up a sound internal auditing
system and enhance its own ability of self-restraint.

    Article 38  A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution shall submit its financial and business
statements to the People’s Bank of China in accordance with the relevant
provisions.

    Article 39  The People’s Bank of China and its Shanghai Branch shall
have the right to examine and audit the business and financial status of a
foreign-capital financial institution or of a Chinese-foreign equity joint
financial institution.
Chapter VII  Dissolution and Liquidation

    Article 40  If a foreign-capital financial institution or a
Chinese-foreign equity joint financial institution is to terminate voluntarily
its business activities, it shall, 30 days prior to the date of termination
thereof, submit an application in writing to the People’s Bank of China and
shall, after such termination is approved by the People’s Bank of China,
effect its dissolution and liquidation.

    Article 41  In the event that a foreign-capital financial institution or
a Chinese-foreign equity joint financial institution should become insolvent,
the People’s Bank of China shall order it to suspend its business and shall
set a deadline for it to clear its liabilities. If such an institution wishes
to resume its business after recovering its solvency within the prescribed
period of time for the clearing of its liabilities, it shall apply to the
People’s Bank of China for approval.

    Article 42  With respect to a foreign-capital financial institution or a
Chinese-foreign equity joint financial institution which is to terminate
voluntarily its business activities or which has been ordered to suspend its
business in accordance with the law, its dissolution and liquidation shall
be effected in accordance with the relevant provisions of the People’s
Republic of China.

    Article 43  A foreign-capital financial institution or a Chinese-foreign
equity joint financial institution which is still in the process of clearing
its liabilities may redeem the capital stock and pay dividends only after
it has paid in full all the taxes and liabilities.

    Article 44  Upon completion of liquidation, a foreign-capital financial
institution or a Chinese-foreign equity joint financial institution shall,
within the prescribed period of time, undertake the procedures with the
original registration authority to nullify its registration.
Chapter VIII  Provisions of Penalties

    Article 45  If, in violation of the provisions in Chapter II of these
Measures, a foreign-capital financial institution or a Chinese-foreign equity
joint financial institution is set up without authorization, the People’s
Bank of China shall have the right to order it to suspend its business,
confiscate its illegal earnings, and impose a fine in foreign exchange
equivalent to 50,000 to 100,000 Renminbi yuan.

    Article 46  If, in violation of the provisions in Chapter IV of these
Measures, a foreign-capital financial institution or a Chinese-foreign equity
joint financial institution engages in business operations beyond the
authorized scope, the People’s Bank of China and its Shanghai Branch shall
have the right to order it to suspend these unauthorized business activities,
confiscate in accordance with the law the illegal earnings derived thereform,
and impose a fine in foreign exchange equivalent to 10,000 to 50,000 Renminbi
yuan.

    Article 47  If a foreign-capital financial institution or a
Chinese-foreign equity joint financial institution violates the provisions
in Chapter V of these Measures, the People’s Bank of China and its Shanghai
Branch shall have the right to order it to make corrections and adjustments
or make up the deficiency and shall, in accordance with the seriousness of
the case, impose a fine in foreign exchange equivalent to 5,000 to 30,000
Renminbi yuan.

    Article 48  If, in violation of the provisions in Chapter VI of these
Measures, a foreign-capital financial institution or a Chinese-foreign equity
joint financial institution fails to submit the statements required within
the prescribed period of time or defies supervision and examination, the
People’s Bank of China and its Shanghai Branch shall, in accordance with the
seriousness of the case, give a warning, circulate a notice of reprimand,
or impose a fine in foreign exchange equivalent to 3,000 to 10,000 Renminbi
yuan.

    Article 49  If a foreign-capital financial institution or a
Chinese-foreign equity joint financial institution violates these Measures,
to a serious extent, the People’s Bank of China shall order it to suspend
its business activities and shall, in an extreme case, order it to disband.
Chapter IX  Supplementary Provisions

    Article 50  Financial institution with overseas-Chinese capital and
financial institutions with capital from the regions encompassing Hong Kong,
Macao and Taiwan shall be governed with reference to these Measures.

    Article 51  Any foreign branch bank already established in the Shanghai
Municipality prior to the promulgation of these Measures shall, in accordance
with these Measures, make up for the establishment and registration
procedures. With respect to a foreign branch bank which fails to conform to
the relevant provisions of these Measures, the Shanghai Branch of the People’s
Bank of China shall set a deadline for it to make adjustments.

    Article 52  The People’s Bank of China shall be responsible for the
interpretation of these Measures and shall formulate specific provisions in
accordance with these Measures.

    Article 53  These Measures shall go into effect as of the date of
promulgation.





RESOLUTION ON THE NATIONAL DAY

Category  NATIONAL FLAG, NATIONAL EMBLEM, CAPITAL, NATIONAL ANTHEM AND NATIONAL DAY Organ of Promulgation  The Central People’s Government Status of Effect  In Force
Date of Promulgation  1949-12-02 Effective Date  1949-12-02  


Resolution on the National Day of the People’s Republic of China

(Adopted at the 4th Meeting of the Central People’s Government Council

at December 2, 1949)

    The “Suggestion to the Government for Taking the First of October as the
National Day of the People’s Republic of China, in Stead of the Tenth of
October as the Old National Day”, which was adopted by the First Session of
the First National Committee of the Chinese People’s Political Consultative
Conference(CPPCC) at October 9, 1949, has been submitted to the Central
People’s Government for decision and implementation.

    The Central People’s Government Council decides to adopt the Suggestion
by the First National Committee of the CPPCC, considering that it tallies
with the actual history and represents the people’s will.

    It is hereby announced by the Central People’s Government Council:
Starting with 1950, the first of October, the great date on which the
People’s Republic of China announced its establishment, shall be the National
Day of the People’s Republic of China.





INTERIM MEASURES FOR THE ADMINISTRATION OF THE FOREIGN-INVESTED DEVELOPMENT AND MANAGEMENT OF TRACTS OF LAND

Category  LAND ADMINISTRATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1990-05-19 Effective Date  1990-05-19  


Interim Measures for the Administration of the Foreign-invested Development and Management of Tracts of Land



(Promulgated by Decree No. 56 of the State Council of the People’s

Republic of China on May 19, 1990 and effective as of the date of
promulgation)

    Article 1  These Measures are formulated for the purpose of attracting
foreign investment for the development and management of tracts of land
(hereinafter referred to as “tract development”) so as to intensify the
construction of public works, improve the environment for investment,
introduce foreign-invested technically advanced enterprises and
export-oriented enterprises and develop the export-oriented economy.

    Article 2  The term “tract development” as used in these Measures means
that after obtaining the right to the use of state-owned land, the investors
shall carry out, as planned, comprehensive development and construction on the
land, including levelling the ground and constructing such public works as
water supply and drainage systems, power and heat supply systems, roads and
communications networks, and communications facilities, so that conditions
shall be created for the land to be used for industrial or other construction
purposes. The investor shall then transfer the right to the use of the land
for operating public utilities, or proceed to construct such above-ground
buildings as industrial houses and the supporting facilities for production
and everyday life services and engage in the business activities of
transferring or leasing these above-ground buildings.

    Definite development targets shall be specified for tract development and
there shall be definite construction projects that are intended to make use of
the developed land.

    Article 3  With respect to a project to attract foreign investment for
tract development, the municipal or county people’s government shall organize
the drawing up of a tract development project proposal (or a feasibility study
report, the same hereinafter).

    With respect to a tract development project which is to make use of 1,000
mu or less of arable land or 2,000 mu or less of other land and whose amount
of investment for comprehensive development falls within the limits of powers
for examination and approval of the people’s government of the province,
autonomous region or municipality directly under the Central Government
(including the people’s government or administrative committee of a special
economic zone, the same hereinafter), the project proposal shall be submitted
to the people’s government of the province, autonomous region or municipality
directly under the Central Government for examination and approval.

    With respect to a tract development project which is to make use of more
than 1.000 mu of arable land or more than 2,000 mu of other land and whose
amount of investment for comprehensive development exceeds the limits of
powers for examination and approval of the people’s government of the
province, autonomous region or municipality directly under the Central
Government, the project proposal shall be submitted, through the people’s
government of the province, autonomous region or municipality directly under
the Central Government, to the State Planning Commission for examination,
verification and overall balancing and then to the State Council of the
People’s Republic of China for examination and approval.

    Article 4  Foreign investors who intend to invest for tract development
shall, in accordance with the respective provisions of the Law of the People’s
Republic of China on Chinese-Foreign Equity Joint Ventures, the Law of the
People’s Republic of China on Chinese-Foreign Contractual Joint Ventures and
the Law of the People’s Republic of China on Foreign-Capital Enterprises, form
a Chinese-foreign equity joint venture, or a Chinese-foreign contractual joint
venture or a foreign-capital enterprise (hereinafter referred to as a
“development enterprise”) to engage in the development and management of the
tract of land.

    Development enterprises shall be governed and protected by the law of
China and all their activities shall abide by the laws and regulations of the
People’s Republic of China.

    Development enterprises shall have the right to act on their own in
business operations and management in accordance with the law, but they shall
have no administrative power in their development areas. The relationship
between a development enterprise and other enterprises shall be of a
commercial nature.

    The State encourages the state-owned enterprises to form development
enterprises with foreign investors by using the right to the use of
state-owned land as investment or condition of co-operation.

    Article 5  Development enterprises shall obtain the right to the use of
the state-owned land in their development areas in accordance with the law.

    In assigning the right to the use of State-owned land to a development
enterprise, the people’s government of the municipality or county where the
development area is located shall, in accordance with the laws and
administrative rules and regulations of the State on the administration of
land, rationally specify the bounds of the tract of land, the purpose of its
use, the term of the right, the assignment fee and other conditions, sign a
contract for assigning the State-owned land and submit it for approval in
accordance with the limits of powers for examination and approval with respect
to the assignment of the right to the use of State-owned land.

    Article 6  After the right to the use of State-owned land has been
assigned, the resources and objects buried thereunder shall continue to be
owned by the State. If it is necessary to exploit and utilize them, the
exploitation and utilization shall be administered in accordance with the
pertinent laws and administrative rules and regulations of the State.

    Article 7  A development enterprise shall draw up a tract development plan
or a feasibility study report which shall specify the overall targets and
respective targets for different stages, the specific details and requirements
in the actual development, and the plan to utilize the developed land.

    The tract development plan or feasibility study report shall, after
examination and verification by the municipal or county people’s government,
be submitted to the people’s government of the province, autonomous region or
municipality directly under the Central Government for examination and
approval. The examining and approving authorities shall organize the competent
authonties concerned to provide co-ordination concerning the construction and
management of the relevant public works.

    Article 8  If the development area is within the limits of a planned urban
area, the various items of development and construction shall be in conformity
with the requirements of city planning and be submitted to the administration
of the planning.

    The various items of construction in a development area shall be in
conformity with the laws, administrative rules and regulations and standards
of the State concerning environmental protection.

    Article 9  A development enterprise may transfer the right to the use of
the state-owned land only after it has carried out the plan of tract
development and satisfied all the conditions prescribed in the contract for
assigning the right to the use of the state-owned land. No development
enterprise that fails to invest for the development of the land in accordance
with the conditions prescribed in the contract for assigning the right to the
use of the state-owned land and the requirements of the plan for tract
development may transfer the right to the use of the state-owned land.

    The transfer or mortgage of the right to the use of state-owned land by
development enterprises and other enterprises, and the termination of the
right to the use of state-owned land shall be handled in accordance with the
laws and administrative rules and regulations of the State on the
administration of land.

    Article 10  A development enterprise may attract investors to the
development area to make investment, accept the transferred right to the use
of state-owned land and launch enterprises. Enterprises with foreign
investment shall be established in accordance with the respective provisions
of the Law of the People’s Republic of China on Chinese-Foreign Equity Joint
Ventures, the Law of the People’s Republic of China on Chinese-Foreign
Contractual Joint Ventures and the Law of the People’s Republic of China on
Foreign-Capital Enterprises.

    The launching of enterprises in the development areas shall be in
conformity with the State policy concerning the investment in industries. The
State encourages the launching of technically advanced enterprises and
export-oriented enterprises.

    Article 11  The postal and communication undertakings in the development
areas shall be placed under the unified planning, construction and management
of the postal department. Or they may, with the approval of the province,
autonomous region or municipality directly under the Central Government, be
constructed with investment by a development enterprise; or the development
enterprise and the postal department may pool their investment for the
construction of communications facilities, which, in either case, shall be
transferred, after completion, to the postal department for operation, with
financial compensation to be given to the development enterprise in accordance
with the contract signed between the two parties.

    Article 12  Development enterprises that invest in public utilities of
their own such as power stations, heat stations and water plants within the
development area may operate the business of power, water and heat supplies
within the development area or hand them over to the local enterprises of
public utilities for operation. If the capacity of the public utilities is in
surplus, which renders it necessary to be supplied to places outside the
development area or to be connected to a network outside the development area
for operation, the development enterprise shall sign a contract with the local
enterprises of public utilities in accordance with the pertinent provisions of
the State and operate in accordance with the conditions prescribed in the
contract.

    If it is necessary for a development area to use water and power resources
from outside, the business thereof shall be operated by the local enterprises
of public utilities.

    Article 13  If a development area covers a coastal port or bay, or a river
port sector, the coastline or riverside line shall be placed under the unified
planning and administration of the State. The development enterprise may
construct and operate a special port area and wharf in accordance with the
unified planning of the competent state communication authorities.

    Article 14  No business activities or social activities that are banned by
the laws and administrative rules and regulations of the State may be engaged
within the development areas.

    Article 15  If special administrative measures are required in respect of
import and export administration and Customs administration for a development
area which is mainly intended for the operation of export processing
enterprises, these shall be submitted to the State Council of the People’s
Republic of China for approval and specific measures of administration shall
be formulated by the competent authorities of the State.

    Article 16  The general administration, judicial administration, port
administration and Customs administration in a development area shall be
organized and exercised respectively by the competent authorities of the
State, the people’s government of the 1ocality where the development area is
situtated, and the judicial organs that have jurisdiction.

    Article 17  Tract development with investment by firms, enterprises and
other economic organizations or individuals from the regions of Hong Kong,
Macao and Taiwan shall be governed with reference to these Measures.

    Article 18  These Measures shall be put into effect within the limits of
the specific economic zones, the open coastal cities and the open coastal
economic zones as of the date of promulgation.





REGULATIONS FOR THE ADMINISTRATION OF PRODUCT QUALITY CERTIFICATION

Category  TECHNOLOGICAL CONTROL Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1991-05-07 Effective Date  1991-05-07  


Regulations of the People’s Republic of China for the Administration of Product Quality Certification

Chapter I  General Provisions
Chapter II  Organization and Management
Chapter III  Qualifications and Procedures
Chapter IV  Testing Bodies and Inspectors
Chapter V  Penalty Provisions
Chapter VI  Supplementary Provisions

(Promulgated by Decree No. 83 of the State Council of the People’s

Republic of China on May 7, 1991, and effective as of the date of
promulgation)
Chapter I  General Provisions

    Article 1  These Regulations are formulated in order to ensure quality of
products, improve the credibility of products, safeguard the interests of the
users and consumers, facilitate international trade, and promote
international cooperation in quality certification.

    Article 2  Product quality certification (hereinafter referred to as
certification) is an activity of a certification body, on the basis of
product standards and the relevant technical requirements and through its
confirmation and issuance of a certificate and certification mark, to certify
a product as in conformity with the relevant standards and technical
requirements.

    Article 3  When a product has its national or sector standards to refer
to, an enterprise may apply for its certification to the sector certification
committee set up either by the competent department of the standardization
administration under the State Council or by other departments authorized by
the competent department.  

    Products subject to the provisions of the State laws, administrative
regulations, or rules formulated by the competent department of the
standardization administration under the State Council together with the
relevant administrative departments under the State Council that without
being certified they may not be marketed, imported or used, shall be treated
according to the State laws, administrative regulations or rules.

    Article 4  Certification is classified as safety certification and
conformity certification.  

    Products under safety certification must conform to the requirements of
the relevant compulsory standards stipulated in the Standardization Law of
the People’s Republic of China (hereinafter referred to as the
Standardization Law).  

    Products under conformity certification must conform to the requirements
of the national or sector standards provided for by the Standardization Law.

    Article 5  The certified products shall, except for inspections subject
to the State laws and administrative regulations, be exempt from any other
inspection and enjoy such Stateprescribed preferential treatments as higher
price for higher quality or priority in recommendation for national excellent
quality appraisal.

    Article 6  The competent department of the standardization administration
under the State Council shall be in charge of the unified administration of
certification throughout the country. Sector certification committees set up
either directly by the competent department of the standardization
administration under the State Council or by other administrative departments
under the State Council with authorization of the competent department shall
be responsible for the actual operations of the certification work.
Chapter II  Organization and Management

    Article 7  The functions of the competent department of the
standardization administration under the State Council in the management of
the certification work are as follows:

    (1) formulating principles, policies, plans and programmes for
certification;

    (2) unifying or approving patterns of certification marks;

    (3) examining and approving the compositions and articles of association
of the certification committee;

    (4) examining and approving the certification testing bodies;

    (5) registering and administering certification inspectors;

    (6) examining and approving and issuing catalogues of products to be
covered by certification;

    (7) publishing directories of certified products and their producers;

    (8) being responsible for conducting international activities in
certification;

    (9) coordinating and settling major issues in certification work; and

    (10) supervising the operation of certification work.

    Article 8  A certification committee shall be composed of experts from
the relevant departments of production, marketing, utilization, scientific
research and quality supervision of products and its tasks are as follows:

    (1) proposing draft catalogues of products to be covered by certification;

    (2) formulating specific measures for the operation of certification;

    (3) ratifying national or sector standards for the certification purpose;

    (4) recommending testing bodies which shall undertake certification tasks;

    (5) accepting and handling applications for certification;

    (6) organizing the quality system audit of an enterprise applying for
certification;

    (7) approving certification, issuing certificates and filing it with the
competent department of the standardization administration under the State
Council;

    (8) settling the disputes involved in certification;

    (9) being responsible for supervisions and inspections of certified
products and their producers; and

    (10) revoking certificates according to law.

    Article 9  The competent departments of the standardization
administration of the local people’s governments at or above the county level
shall exercise supervisions and inspections over certified products within
their administrative areas and their tasks are as follows:

    (1) investigating and dealing with products which do not conform to the
standards applied to when being certified, or products bearing counterfeit
certification marks;

    (2) cooperating with the certification committees in supervising the
quality of certified products; and

    (3) investigating and dealing with any other act concerning certification
which is against the laws, administrative regulations or rules formulated by
the competent department of the standardization administration under the
State Council together with the relevant administrative departments under the
State Council.
Chapter III  Qualifications and Procedures

    Article 10  Any Chinese or foreign enterprise may apply for certification.
An applying enterprise shall have the following qualifications:

    (1) its product meets the requirements of national or sector standards;

    (2) its product can be produced in normal serial production with stable
quality; and

    (3) the quality system of the producing enterprise conforms to the
national standards for quality control and quality assurance and to the
supplementary requirements thereof.

    Article 11  An enterprise shall apply for certification in accordance
with the following procedures:

    (1) A Chinese enterprise shall submit its written application to the
certification committee. A foreign enterprise or its sale agent shall submit
its written application to the competent department of the standardization
administration under the State Council or to the certification committee
designated by the competent department;

    (2) The certification committee shall inform the testing bodies to
conduct testing of the product;

    (3) The certification committee shall conduct quality system audit of the
producing enterprise applying for certification; and

    (4) The certification committee shall issue a certificate and give
permission for the use of a certification mark to the product which is
qualified for certification.

    Product testing and quality system audit of a foreign enterprise may be
carried out by foreign certification bodies on commission of certification
committees designated by the competent department of the standardization
administration under the State Council according  to  bilateral or
multilateral agreements.

    Article 12  Enterprises which have obtained the certificates are subject
to supervisions and inspections by the certification committees over their
products and quality systems.  

    Supervisions and inspections over the products and quality systems of the
foreign enterprises which have obtained the certificates may be carried out
by foreign certification bodies on commission according to bilateral or
multilateral agreements.

    Article 13  When the standard applied to a certified product or the
quality system of an enterprise has changed to such an extent that the
product is no longer up to the qualifications it had when it was certified,
the enterprise shall cease using the certification mark.
Chapter IV  Testing Bodies and Inspectors

    Article 14  Testing bodies shall be examined and accredited by the
competent department of the standardization administration under the State
Council before they engage in certification testing.

    Article 15  Certification inspectors shall be trained and assessed, and
registered by the competent department of the standardization administration
under the State Council before they carry out inspections over enterprises
applying for certification (including enterprises which have received
certificates).

    Article 16  Testing bodies and inspectors undertaking certification tasks
shall perform their functions and obligations set by the competent department
of the standardization administration under the State Council and relevant
certification committees and be subject to their supervision and check-up.

    Article 17  Testing bodies and inspectors undertaking certification tasks
shall be accountable for the test reports and inspection reports they
present, keep technical secrets of the certified products, and may not
illegally possess the scientific and technological achievements of others.
Chapter V  Penalty Provisions

    Article 18  Any act concerning certification which violates laws,
administrative regulations or rules jointly formulated by the competent
department of the standardization administration under the State Council and
the relevant administrative departments under the State Council shall be
subject to penalty in accordance with the provisions of laws, administrative
regulations or rules.

    Article 19  Should a certified product being delivered and marketed with
the certification mark fails to meet the standards applied to when being
certified, the competent department of the standardization administration
shall order cessation of its sales and impose a fine not exceeding twice
times the amount of the illegal gains.

    Should a product either uncertified or failing to pass the certification
be delivered and marketed with a certification mark, the competent department
of the standardization administration shall order cessation of its sales and
impose a fine not exceeding three times the amount of the illegal gains, and
a fine not exceeding 5,000 yuan (RMB) may be imposed on the person in charge
of the law-breaking unit.

    A fine not exceeding three times the amount of the illegal gains shall be
imposed by the competent department of the standardization administration for
transfer of the certification mark, and a fine not exceeding 5,000 yuan (RMB)
may be imposed on the person in charge of the lawbreaking unit.

    Article 20  In either of the following cases, the certificate shall be
revoked by the certification committee which conferred it:

    (1) The quality of the certified product has deteriorated seriously, or
the quality system of the producing enterprise is no longer up to the
qualifications it had when being certified, which has caused losses and
damages to users or consumers.

    (2) The supervision and inspection conclude that the certified product
does not conform to the standards, for which the producing enterprise is
responsible.

    Article 21  Should a certified product fails to meet the certification
requirements but has been delivered and marketed, the producing enterprise
shall guarantee its repair, exchange and refund. The producing enterprise
shall be liable for compensation according to law when the product has caused
losses and damages to users or consumers.

    Article 22  Anyone engaged in the certification management, testing and
inspection who transgresses law, neglects his duties or practises favouritism
and irregularities shall be subject to administrative sanctions by his
employing unit. When a crime is constituted, the offender’s criminal
responsibilities shall be investigated by judicial authorities according to
law.

    Article 23  If a party disagrees with a pecuniary penalty, an application
for reconsideration of the case may be lodged within 15 days on receipt of
the notification of the penalty with the administrative authorities at the
next higher level of the authorities which made the penalty decision. If a
party still disagrees with the decision of reconsideration, a suit may be
brought to the people’s court within 15 days on receipt of the decision of
reconsideration. A party may also bring a suit to the people’s court directly
within 15 days on receipt of the notification of the penalty. The authorities
which made the penalty decision shall apply to the people’s court for
compulsory enforcement of the decision, in case a party fails both to apply
for reconsideration or initiate legal proceedings with a people’s court and
to comply with the penalty decision within the specified period.
Chapter VI  Supplementary Provisions

    Article 24  Certification fees shall be charged and collected from
enterprises applying for certification according to the non-profit-making
principle. The specific measures for charging shall be laid down separately
by the competent department of the standardization administration under the
State Council together with the pricing authorities of the State Council.

    Article 25  Commodity inspection bodies may carry out quality
certification work on import and export commodities according to agreements
signed between the national commodity inspection department and the relevant
foreign bodies or on commission of the relevant foreign bodies.

    Article 26  These Regulations do not apply to military products.

    Article 27  The competent department of the standardization
administration under the State Council shall be responsible for the
interpretation of these Regulations.

    Article 28  These Regulations shall come into force as of the date of
promulgation.





MEASURES GOVERNING THE PARTICIPATION OF FOREIGN FIRMS IN THE SALVAGE OF SUNKEN SHIPS AND OBJECTS IN THE CHINESE COASTAL WATERS

Category  COMMUNICATIONS AND TRANSPORT Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1992-07-12 Effective Date  1992-07-12  


Measures Governing the Participation of Foreign Firms in the Salvage of Sunken Ships and Objects in the Chinese Coastal Waters



(Promulgated on July 12, 1992 by Decree No. 102 of the State Council of

the People’s Republic of China and effective as of the date of promulgation)

    Article 1  These Measures are formulated in order to strengthen the
control of the participation of foreign firms in the activities salvaging
sunken ships and objects in the Chinese coastal waters and to ensure the
lawful rights and interests of the parties concerned.

    Article 2  These Measures shall apply to the participation of foreign
firms in the activities salvaging sunken ships and objects with commercial
value in the Chinese coastal waters.

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

    Article 3  For the purpose of these Measures, the following terms shall
have the meanings respectively defined hereunder:

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

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

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

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

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

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

    Article 4  The Chinese Government shall protect, in accordance with the
law, the gains and other lawful rights and interests due to the Chinese and
foreign parties who participate in the salvage of sunken ships and objects in
the Chinese coastal waters (hereinafter referred to as “Chinese and foreign
parties participating in the salvage”).

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

    Article 5  The Ministry of Communications of the People’s Republic of
China is in charge of the affairs regarding the participation of foreign firms
in the salvage of sunken ships and objects in the Chinese coastal waters.

    Article 6  Foreign firms may participate in the salvage of sunken ships
and objects in the Chinese coastal waters in either of the following modes:

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

    (2) to establish a Chineseforeign salvage cooperative enterprise with a
Chinese operator of salvage and undertake the salvage activities.

    Article 7  Any Chinese operator of salvage shall be a professional salvage
agency with the qualification of undertaking salvage, and such qualification
shall be examined and approved by the Ministry of Communications of the
People’s Republic of China pursuant to the state-formulated requirements of
the professional salvage agency.

    Article 8  Definite salvage targets must be expressly fixed in either a
joint salvage contract or a contract for a Chineseforeign salvage cooperative
enterprise. Any sunken ships or objects other than those fixed in the
contracts found during the salvage operation may not be salvaged by either
Chinese or foreign party participating in the salvage without authorization.

    Article 9  The Ministry of Communications of the People’s Republic of
China shall be responsible for uniformly organizing negotiations with foreign
firms on affairs concerning the salvage of sunken ships and objects in the
Chinese coastal waters, determining salvage projects and organizing Chinese
operators of salvage to sign joint salvage contracts or contracts for
Chinese-foreign salvage cooperative enterprises with foreign firms in
accordance with the law.

    Article 10  The joint salvage contract signed between a foreign firm and a
Chinese operator of salvage shall accord with the related stipulations of the
Law of the People’s Republic of China on Economic Contracts Involving Foreign
Interest and be subject to the approval by the Ministry of Communications of
the People’s Republic of China.  

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

    Article 11  While a joint salvage contract or a contract for a
Chinese-foreign salvage cooperative enterprise is submitted to the authorities
for examination and approval, the relevant documents of the implementing
salvage plan approved by the harbour superintendency establishments of the
People’s Republic of China (hereinafter referred to as harbour
superintendency) shall be presented; where an area of fishing port is
involved, the relevant documents approved by the fishery administrative
authorities and fishing harbour superintendency establishments shall be
presented; where a military forbidden area or district is involved, the
relevant documents approved by the competent military authorities shall be
presented.  

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

    Article 12  After the approval of the joint salvage contract, the foreign
firm shall apply for business registration to the State Administration for
Industry and Commerce of the People’s Republic of China within 30 days after
its receipt of the document of approval and obtain a business license; it
shall register with the local tax authorities within 30 days after obtaining
the business license.

    Article 13  A foreign firm participating in the salvage of sunken ships
and objects within the internal seas and territorial seas of the People’s
Republic of China shall bear all the costs and expenses as well as the
financial risks during the salvage operation. The Chinese operator of salvage
is responsible for the coordination with the relevant authorities, the
fulfilment of the necessary formalities and the guardianship during the
salvage operation.  

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

    Article 14  The vessels, equipments and labour services needed by the
foreign firm in implementing the joint salvage contract shall first be leased
and employed from the Chinese operator of salvage, if the conditions are the
same.

    Article 15  The objects recovered from the salvage of sunken ships and
objects in the Chinese coastal waters with the participation of a foreign firm
(hereinafter referred to as “recovered objects”) shall be disposed of in the
following ways:

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

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

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

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

    Article 16  The recovered objects obtained by the foreign firms according
to law can be purchased by the relevant authorities of Chinese Government at
the price of international market or transported abroad by the foreign firms
after being taxed and going through the Customs formalities pursuant to the
Chinese Law.  

    Foreign currency of other gains obtained by the foreign firms can be
remitted abroad after being taxed according to Law.

    Article 17  Before the salvage operation, the operators of salvage shall
apply for the issuance of a navigation warning in accordance with the relevant
stipulations of the Maritime Traffic Safety Law of the People’s Republic of
China.  

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

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

    Article 18  The relevant personnel from Chinese and foreign parties
participating in the salvage shall, from the beginning to the end, take part
in the salvage operation and are jointly responsible for the work of
registering and storing the recovered objects.

    Article 19  All the recovered objects shall receive the inspection by the
relevant authorities at the place assigned by the competent authorities of the
Chinese Government.

    Article 20  Anyone who has violated these Measures to salvage sunken ships
and objects in the Chinese coastal waters shall be ordered to stop the salvage
operation and be warned or fined by harbour superintendency. The violator who
has already caused losses to the State or other individuals shall bear the
liability of compensation.  

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

    Article 21  The participation of any enterprise or individual or other
economic organization from Hong Kong, Macao or Taiwan in the salvage of sunken
ships and objects in the Chinese coastal waters shall be handled with
reference to these Measures.

    Article 22  The Ministry of Communications of the People’s Republic of
China shall be responsible for the interpretation of these Measures.

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





PROVISIONS ON THE IMPLEMENTATION OF THE INTERNATIONAL COPYRIGHT TREATIES

Provisions on the Implementation of the International Copyright Treaties

     (Effective Date:1992.09.30–Ineffective Date:)

   Article 1 These Provisions are formulated to implement the international copyright treaties and to protect the legitimate rights and interests
of the owners of copyright in foreign works.

   Article 2 With regard to the protection of foreign works, the Copyright Law of the People’s Republic of China (hereinafter referred to as “the
Copyright Law”), the Regulations for the Implementation of Copyright Law of the People’s Republic of China, the Regulations for the
Protection of Computer Software and these Provisions shall apply.

   Article 3 The “international copyright treaties” mentioned in these Provisions refers to the Berne Convention for the Protection of Literary
and Artistic Works (hereinafter referred to as “the Berne Convention”) to which the People’s Republic of China (hereinafter referred
to as “China”) is a party, and the bilateral agreements on copyright which China has concluded with foreign countries.

   Article 4 Foreign works mentioned in these Provisions shall include:

(1) works of which the author or one of the co-authors or the other owner of copyright or one of the co-owners of copyright is a national
or a permanent resident of a country party to the international copyright treaties;

(2) works of which the author is not a national or a permanent resident of a country party to international copyright treaties but
which have been first published or published simultaneously in a country party of the international copyright treaties;

(3) Works created by others by commission from a Chinese-foreign equity joint venture, a Chinese-foreign contractual joint venture
or a foreign- capital enterprise which, by virtue of a contract, is the owner of copyright or one of the coowners of copyright of
the work.

   Article 5 With regard to the term of protection for unpublished foreign works, the provisions of Articles 20 and 21 of the Copyright Law shall
apply.

   Article 6 In the case of foreign works of applied art, the term of protection shall be 25 years commencing from the creation of the works.

The preceding paragraph, however, shall not apply to the works of fine arts, including designs of cartoon characters, used in industrial
goods.

   Article 7 Foreign computer programmes shall be protected as literary works, shall not be subject to registration and shall enjoy a term of
protection of 50 years commencing from the end of the year of their first publication.

   Article 8 Foreign works created by compiling non-protected materials shall be protected in accordance with the provisions of Article 14 of
the Copyright Law, provided that originality is shown in the selection and arrangement of such materials.

Such protection, however, shall not preclude others from using the same materials to create works of compilation.

   Article 9 Foreign video recordings shall be protected as cinematographic works to the extent that international copyright treaties treat them
as such works.

   Article 10 Prior authorization of the copyright owners shall be required if a published foreign work created in Chinese is to be translated
into and published in the language of a minority nationality.

   Article 11 Copyright owners of foreign works have the right to authorize others to perform before the public their works in any manner and by
any means, or to communicate to the public the performance of their works.

   Article 12 Copyright owners of foreign cinematographic works, television works and works of video recordings have the right to authorize others
to perform before the public their works.

   Article 13 Prior authorization of the copyright owner shall be required for newspapers and periodicals to reprint a foreign work, except the
reprinting of articles on current political, economic and social topics.

   Article 14 Copyright owners of foreign works may authorize or prohibit rental of copies of their works after authorizing others to distribtute
such copies.

   Article 15 Copyright owners of foreign works have the right to prohibit the importation of the following types of copies of their works:

(1) infringing copies;

(2) copies coming from a country where their works are not protected.

   Article 16 In the case of public performance, recording and broadcasting of foreign works, the provisions of the Berne Convention shall apply.
Where there is a collective administration organization, prior authorization of such organization shall be required.

   Article 17 Foreign works which, at the date on which the international copyright treaties enter into force in China, have not fallen into the
public domain in their countries of origin shall be protected until the expiration of the term of protection as is prescribed in
the Copyright Law and these Provisions.

The preceding paragraph shall not apply to the uses of foreign works that had taken place before the international copyright treaties
entered into force in China.

A Chinese citizen or legal person who owned and used a particular copy of a foreign work for a particular purpose before the entry
into force of the international copyright treaties in China may continue to make use of that copy of the work without liability;
but such copy may not be reproduced nor used in any manner susceptible to prejudice unreasonably the legitimate rights and interests
of the copyright owner.

The application of the foregoing three paragraphs shall be subject to the provisions of the bilateral agreements on copyright concluded
by China with the countries concerned.

   Article 18 Articles 5, 12, 14, 15, and 17 of these Provisions shall also apply to sound recordings.

   Article 19 Where pre-existing administrative regulations relating to copyright conflict with these Provisions, these Provisions shall apply.
Where these Provisions conflict with the international copyright treaties, the international copyright treaties shall apply.

   Article 20 The implementation in China of the international copyright treaties shall be the responsibility of the National Copyright Administration
of China.

   Article 21 The interpretation of these Provisions shall be the responsibility of the National Copyright Administration of China.

   Article 22 These Provisions shall enter into force as of September 30, 1992.

    





CIRCULAR OF THE STATE COUNCIL ON FURTHER STRENGTHENING THE MACRO-CONTROL OVER INTERNATIONAL COMMERCIAL LOANS

Category  BANKING Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1995-09-27 Effective Date  1995-09-27  


Circular of the State Council on Further Strengthening the Macro-control Over International Commercial Loans



(September 27, 1995)

    International commercial loans are an important method for
absorbing foreign capital, and bear great significance in
ensuring the sustained, fast and sound development of the
national economy. The administration of international commercial
loans must be strengthened in earnest so as to meet the needs of
reform, opening and economic construction, make further
improvements in the efficiency of international commercial loans
and prevent a runaway increase of international commercial loans.
This Circular is hereby issued as follows in that connection.

    1. Strictly Controlling the Overall Scale of International
Commercial Loans

    In light of China’s actual situation, funds raised by
institutions located within the territory of China on commercial
terms from international financial markets under the contractual
obligations of repayment in foreign currencies are all referred
to as “international commercial loans.” International commercial
loans include loans from foreign commercial banks (institutions),
export credit, finances from issuance of foreign currency bonds,
convertible bonds, transferable certificates of large-volume
deposit, medium term bills and other negotiable securities other
than stocks, finances from international financing leases,
compensation trading by spot repayment, financing projects and
overseas deposits, and finances commercially raised or financed
in other forms.

    (1) The state shall conduct planned administration and
control over the total amount of long and medium term
international commercial loans. The State Planning Commission
shall, in light of China’s foreign debt structure, debt-service
capability, demand of foreign capital, related conditions and the
international financial market situation, and on the basis of
opinions solicited from various localities and relevant
departments, work out long and medium term plans and annual plans
for using foreign capital, and announce the planned overall scale
of international commercial loans. With regard to the annual
international commercial loan quotas for various financial
institutions, the People’s Bank of China shall, within the
planned total amount of foreign debt announced by the State
Planning Commission, and in light of the situations of various
financial institutions concerning assets and liabilities, raise
proposals concerning quotas and, after consulting with the State
Planning Commission, make decisions concerning them and announce
such decisions.

    Current international commercial loan quotas may be carried
over until the end of March of next year.

    Any international commercial loans raised shall not be used
for loans in Renminbi guaranteed with foreign exchange, and shall
not be settled.

    (2) The state shall conduct balance-control on raising short
term international commercial loans. Short term foreign loans
(with the term of one year or less than one year) shall be used
only for cash turnover of financial institutions or as short term
operating funds for enterprises, and shall not be used for
investment in fixed assets or for other purposes prohibited by
the state. The People’s Bank of China shall, in light of China’s
foreign debt structure and the actual need for foreign capital,
decide on the national total amount of short term foreign debt
balance, determine and announce the quotas for the short term
international commercial loan balances for various financial
institutions and enterprises. Financial institutions and
enterprises should control their foreign debt balance within
their respective quotas. Otherwise, the right of raising foreign
loans shall be revoked and appropriate punishment shall be given
to them.

    2. Examining and Approving Foreign Loans for Construction
Projects in Strict Accordance with State Provisions

    Raising international commercial loans for construction
projects shall be strictly controlled by means of the examination
and approval authority prescribed by the state. With regard to
long and medium term international commercial loans for capital
construction, and in case of an applied loan scale beyond the
limits prescribed by the state, the amount of the loan shall be
examined and approved by the State Planning Commission; with
regard to long and medium term international commercial loans for
technical transformation projects, and in case of an applied loan
scale beyond the limits prescribed by the state, the amount of
the loan shall be jointly examined and approved by the State
Economic and Trade Commission and the State Planning Commission.
Those within the limits prescribed by the state shall be examined
and approved by the local people’s governments or relevant
departments of the State Council on the basis of the annual plans
for international commercial loans assigned by the State Planning
Commission. Investment projects for fixed assets involving
international commercial loans must accord with state industrial
policies and be incorporated in the national plan. International
commercial loans shall not be raised for projects which are not
approved by the department in charge of examination and approval,
the related funds in Renminbi required for which are not
available, or for which energy, transportation, raw materials
conditions and other production conditions are not satisfied, or
which have a low capacity of repayment of foreign capital.

    The State Administration of Exchange Control shall be
responsible for the examination and approval of the financial
terms of foreign loans on the basis of the annual plans for
international commercial loans announced by the State Planning
Commission. Any region, department or unit concluding contracts
with foreign parties for loans or for raising funds without
authorization shall be severely dealt with by the department of
exchange control, with their registration for foreign debt being
refused, the agreements on loans and guarantee contracts being
declared null and void, the opening of foreign exchange accounts
being refused, and possible disqualification from applying for
raising foreign loans.

    International commercial loans for investment outside the
territory of China shall be strictly controlled by means of
examination and approval by the State Planning Commission.

    3. Further Strengthening the Administration on Window Units
Issuing External Bonds

    The administration of window units issuing external bonds
shall be strengthened, and the number of said units shall be
strictly controlled. The State Planning Commission and The
People’s Bank of China shall, in light of the scale of assets,
the balance of assets and liabilities, the ratio of capital to
risk, the management achievements and other situations of
financial institutions, conduct the regular examination and
verification of the window units, and shall adopt a system of
regular examination and appraisal. The list of window units shall
be published externally by the State Planning Commission and the
People’s Bank of China after being submitted to and approved by
the State Council.

    The issuance of external bonds (including project financing
in the form of issuing bonds outside China for construction
projects inside China) shall be handled by financial institutions
with managerial authority over matters of international finance
and qualifications for issuing bonds that are approved by the
People’s Bank of China on the basis of quotas for international
commercial loans approved by the State Planning Commission. The
State Planning Commission and the People’s Bank of China shall
strengthen the examination and verification of window units,
while the State Administration of Exchange Control shall be
responsible for work concerning coordination and administration
of entering the international financial market for issuing bonds,
so as to ensure that the issuing of bonds proceeds smoothly.

    The issuance of external bonds by the Ministry of Finance on
behalf of the state shall be approved by the State Council, and
shall be incorporated in the national plan for international
commercial loans.

    Local governments shall not raise foreign loans.

    For the purpose of taking full advantage of opportunities in
the international financial market, raising the efficiency of
international commercial loans, and reducing costs for raising
funds, financial institutions shall be allowed to obtain loans at
lower interest rates while repaying those at higher interest
rates and to adjust the debt structure with the prerequisite that
the balance of foreign debt shall not be increased and the
repayment period shall not be extended, and shall obtain the
approval of the State Planning Commission and the People’s Bank
of China.

    Funds from international commercial loans raised by
institutions inside China must be sent to China and used for
projects for which the competent department of foreign capital
planning has approved the raising of international commercial
loans; said funds shall not be left outside China without the
approval of the State Administration of Exchange Control.

    The state encourages the raising of international syndicated
loans, with financial institutions acting as go-betweens, for
domestic construction projects for which raising international
commercial loans has been approved.

    4. Strengthening the Supervision and Administration of Debt
Repayment

    Paying debts on schedule is the legal responsibility of units
which raise international commercial loans. For protection of
national prestige, no region, department or unit may, for any
reason, be in arrears with or refuse to make payments of due
payable sums. The State Planning Commission and the People’s Bank
of China shall strengthen the supervision and administration of
repayment of international commercial loans, and financial
institutions shall do their best in predicting and pressing the
payment of debts due.

    5. Improving the Statistical Monitoring of Foreign Debts

    International commercial loans raised either directly from
outside China or through domestic financial institutions shall
all be incorporated in the statistics monitoring system of the
State Administration of Exchange Control and be subject to
registration for foreign debt or for transmission of foreign
loans.

    6. Enhancing the Analysis of Developments of the
International Financial Market

    The State Administration of Exchange Control shall enhance
the study of the currency varieties, interest rates, time limits
for repayment, credit forms, related countries, market
distribution and other matters related to international
commercial loans, and submit timely reports thereupon to the
State Council as well as timely notices to relevant departments.

    Various regions and departments must strictly carry out all
the provisions of this Circular, take effective measures for
raising the efficiency of international commercial loans, and
ensuring the repayment of foreign debts on schedule, so as to
protect national prestige. The administrative planning
departments and departments of exchange control at various levels
shall strengthen the supervision, checking and direction of the
raising of international commercial loans. Those violating the
relevant provisions of the state shall be strictly dealt with,
with the responsible persons and persons involved being
investigated for responsibility.





CRIMINAL PROCEDURE LAW OF THE PEOPLE’S REPUBLIC OF CHINA

The Standing Committee of the National People’s Congress

Criminal Procedure Law of the People’s Republic of China

March 17, 1996

(Adopted at the Second Session of the Fifth National People’s Congress on July 1, 1979, Revised in according with the Decision on
Revising the Criminal Procedure Law of the People’s Republic of China adopted at the Forth Session of the Eighth National People’s
Congress on March 17, 1996)

ContentsPart One General Provisions

Chapter I Aim and Basic Principles

Chapter II Jurisdiction

Chapter III Withdrawal

Chapter IV Defence and Representation

Chapter V Evidence

Chapter VI Compulsory Measures

Chapter VII Incidental Civil Actions

Chapter VIII Time Periods and Service

Chapter IX Other Provisions

Part Two Filing a Case, Investigation, and Initiation of Public Prosecution

Chapter I Filing a Case

Chapter II Investigation

Section 1 General Provisions

Section 2 Interrogation of the Criminal Suspect

Section 3 Questioning of the Witnesses

Section 4 Inquest and Examination

Section 5 Search

Section 6 Seizure of Material Evidence and Documentary Evidence

Section 7 Expert Evaluation

Section 8 Wanted Orders

Section 9 Conclusion of Investigation

Section 10 Investigation of Cases Directly Accepted by the People’s Procuratorates

Chapter III Initiation of Public Prosecution

Part Three Trial

Chapter I Trial Organizations

Chapter II Procedure of First Instance

Section 1 Cases of Public Prosecution

Section 2 Cases of Private Prosecution

Section 3 Summary Procedure

Chapter III Procedure of Second Instance

Chapter IV Procedure for Review of Death Sentences

Chapter V Procedure for Trial Supervision

Part Four Execution

Supplementary Provisions

Part One General Provisions

Chapter I Aim and Basic Principles

Article 1

This Law is enacted in accordance with the Constitution and for the purpose of ensuring correct enforcement of the Criminal Law, punishing
crimes, protecting the people, safeguarding State and public security and maintaining socialist public order.

Article 2

The aim of the Criminal Procedure Law of the People’s Republic of China is: to ensure accurate and timely ascertainment of facts about
crimes, correct application of law, punishment of criminals and protection of the innocent against being investigated for criminal
responsibility; to enhance the citizens’ awareness of the need to abide by law and to fight vigorously against criminal acts in order
to safeguard the socialist legal system, to protect the citizens’ personal rights; their property rights, democratic rights and other
rights; and to guarantee smooth progress of the cause of socialist development.

Article 3

The public security organs shall be responsible for investigation, detention, execution of arrests and preliminary inquiry in criminal
cases. The People’s Procuratorates shall be responsible for procuratorial work, authorizing approval of arrests, conducting investigation
and initiating public prosecution of cases directly accepted by the procuratorial organs. The People’s Courts shall be responsible
for adjudication. Except as otherwise provided by law, no other organs, organizations or individuals shall have the authority to
exercise such powers.

In conducting criminal proceedings, the People’s Courts, the People’s Procuratorates and the public security organs must strictly
observe this Law and any relevant stipulations of other laws.

Article 4

State security organs shall, in accordance with law, handle cases of crimes that endanger State security, performing the same functions
and powers as the public security organs.

Article 5

The People’s Courts shall exercise judicial power independently in accordance with law and the People’s Procuratorates shall exercise
procuratorial power independently in accordance with law, and they shall be free from interference by any administrative organ, public
organization or individual.

Article 6

In conducting criminal proceedings, the People’s Courts, the People’s Procuratorates and the public security organs must rely on the
masses, base themselves on facts and take law as the criterion. The law applies equally to all citizens and no privilege whatsoever
is permissible before law.

Article 7

In conducting criminal proceedings, the People’s Courts, the People’s Procuratorates and the public security organs shall divide responsibilities,
coordinate their efforts and check each other to ensure the correct and effective enforcement of law.

Article 8

The People’s Procuratorates shall, in accordance with law, exercise legal supervision over criminal proceedings.

Article 9

Citizens of all nationalities shall have the right to use their native spoken and written languages in court proceedings. The People’s
Courts, the People’s Procuratorates and the public security organs shall provide translations for any party to the court proceedings
who is not familiar with the spoken or written language commonly used in the locality.

Where people of a minority nationality live in a concentrated community or where a number of nationalities live together in one area,
court hearings shall be conducted in the spoken language commonly used in the locality, and judgments, notices and other documents
shall be issued in the written language commonly used in the locality.

Article 10

In trying cases, the People’s Courts shall apply the system whereby the second instance is final.

Article 11

Cases in the People’s Courts shall be heard in public, unless otherwise provided by this Law. A defendant shall have the right to
defence, and the People’s Courts shall have the duty to guarantee his defence.

Article 12

No person shall be found guilty without being judged as such by a People’s Court according to law.

Article 13

In trying cases, the People’s Courts shall apply the system of people’s assessors taking part in trials in accordance with this Law.

Article 14

The People’s Courts, the People’s Procuratorates and the public security organs shall safeguard the procedural rights to which participants
in proceedings are enpost_titled according to law.

In cases where a minor under the age of 18 commits a crime, the criminal suspect and the legal representative of the defendant may
be notified to be present at the time of interrogation and trial.

Participants in proceedings shall have the right to file charges against judges, procurators and investigators whose acts infringe
on their citizen’s procedural rights or subject their persons to indignities.

Article 15

In any of the following circumstances, no criminal responsibility shall be investigated; if investigation has already been undertaken,
the case shall be dismissed, or prosecution shall not be initiated, or the handling shall be terminated, or innocence shall be declared:

(1)

if an act is obviously minor, causing no serious harm, and is therefore not deemed a crime;

(2)

if the limitation period for criminal prosecution has expired;

(3)

if an exemption of criminal punishment has been granted in a special amnesty decree;

(4)

if the crime is to be handled only upon complaint according to the Criminal Law, but there has been no complaint or the complaint
has been withdrawn;

(5)

if the criminal suspect or defendant is deceased; or

(6)

if other laws provide an exemption from investigation of criminal responsibility.

Article 16

Provisions of this Law shall apply to foreigners who commit crimes for which criminal responsibility should be investigated.

If foreigners with diplomatic privileges and immunities commit crimes for which criminal responsibility should be investigated, those
cases shall be resolved through diplomatic channels.

Article 17

In accordance with the international treaties which the People’s Republic of China has concluded or acceded to or on the principle
of reciprocity, the judicial organs of China and that of other countries may request judicial assistance from each other in criminal
affairs.

Chapter II Jurisdiction

Article 18

Investigation in criminal cases shall be conducted by the public security organs, except as otherwise provided by law.

Crimes of embezzlement and bribery, crimes of dereliction of duty committed by State functionaries, and crimes involving violations
of a citizen’s personal rights such as illegal detention, extortion of confessions by torture, retaliation, frame-up and illegal
search and crimes involving infringement of a citizen’s democratic rights — committed by State functionaries by taking advantage
of their functions and powers — shall be placed on file for investigation by the People’s Procuratorates. If cases involving other
grave crimes committed by State functionaries by taking advantage of their functions and powers need be handled directly by the People’s
Procuratorates, they may be placed on file for investigation by the People’s Procuratorates upon decision by the People’s Procuratorates
at or above the provincial level.

Cases of private prosecution shall be handled directly by the People’s Courts.

Article 19

The Primary People’s Courts shall have jurisdiction as courts of first instance over ordinary criminal cases; however, those cases
which fall under the jurisdiction of the People’s Courts at higher levels as stipulated by this Law shall be exceptions.

Article 20

The Intermediate People’s Courts shall have jurisdiction as courts of first instance over the following criminal cases:

(1)

counterrevolutionary cases and cases endangering State security;

(2)

ordinary criminal cases punishable by life imprisonment or the death penalty; and

(3)

criminal cases in which the offenders are foreigners.

Article 21

The Higher People’s Courts shall have jurisdiction as courts of first instance over major criminal cases that pertain to an entire
province (or autonomous region, or municipality directly under the Central Government).

Article 22

The Supreme People’s Court shall have jurisdiction as the court of first instance over major criminal cases that pertain to the whole
nation.

Article 23

When necessary, People’s Courts at higher levels may try criminal cases over which People’s Courts at lower levels have jurisdiction
as courts of first instance; If a People’s Court at a lower level considers the circumstances of a criminal case in the first instance
to be major or complex and to necessitate a trial by a People’s Court at a higher level, it may request that the case be transferred
to the People’s Court at the next higher level for trial.

Article 24

A criminal case shall be under the jurisdiction of the People’s Court in the place where the crime was committed. If it is more appropriate
for the case to be tried by the People’s Court in the place where the defendant resides, then that court may have jurisdiction over
the case.

Article 25

When two or more People’s Courts at the same level have jurisdiction over a case, it shall be tried by the People’s Court that first
accepted it. When necessary the case may be transferred for trial to the People’s Court in the principal place where the crime was
committed.

Article 26

A People’s Court at a higher level may instruct a People’s Court at a lower level to try a case over which jurisdiction is unclear
and may also instruct a People’s Court at a lower level to transfer the case to another People’s Court for trial.

Article 27

The jurisdiction over cases in special People’s Courts shall be stipulated separately.

Chapter III Withdrawal

Article 28

In any of the following situations, a member of the judicial, procuratorial or investigatory personnel shall voluntarily withdraw,
and the parties to the case and their legal representatives shall have the right to demand his withdrawal:

(1)

if he is a party or a near relative of a party to the case;

(2)

if he or a near relative of his has an interest in the case;

(3)

if he has served as a witness, expert witness, defender or agent ad litem in the current case; or

(4)

if he has any other relations with a party to the case that could affect the impartial handling of the case.

Article 29

Judges, procurators or investigators shall not accept invitations to dinner or presents from the parties to a case or the persons
entrusted by the parties and shall not in violation of regulations meet with the parties to a case or the persons entrusted by the
parties.

Any judge, procurator or investigator who violates the provisions in the preceding paragraph shall be investigated for legal responsibility.
The parties to the case and their legal representatives shall have the right to request him to withdraw.

Article 30

The withdrawal of a judge, procurator and investigator shall be determined respectively by the president of the court, the chief procurator,
and the head of a public security organ; the withdrawal of the president of the court shall be determined by the court’s judicial
committee; and the withdrawal of the chief procurator or the head of a public security organ shall be determined by the procuratorial
committee of the People’s Procuratorate at the corresponding level.

An investigator may not suspend investigation of a case before a decision is made on his withdrawal.

If a decision has been made to reject his application for withdrawal, the party or his legal representative may apply for reconsideration
once.

Article 31

The provisions of Articles 28, 29 and 30 of this Law shall also apply to court clerks, interpreters and expert witnesses.

Chapter IV Defence and Representation

Article 32

In addition to exercising the right to defend himself, a criminal suspect or a defendant may entrust one or two persons as his defenders.
The following persons may be entrusted as defenders:

(1)

lawyers;

(2)

persons recommended by a public organization or the unit to which the criminal suspect or the defendant belongs; and

(3)

guardians or relatives and friends of the criminal suspect or the defendant.

Persons who are under criminal punishment or whose personal freedom is deprived of or restricted according to law shall not serve
as defenders.

Article 33

A criminal suspect in a case of public prosecution shall have the right to entrust persons as his defenders from the date on which
the case is transferred for examination before prosecution. A defendant in a case of private prosecution shall have the right to
entrust persons as his defenders at any time.

A People’s Procuratorate shall, within three days from the date of receiving the file record of a case transferred for examination
before prosecution, inform the criminal suspect that he has the right to entrust persons as his defenders. A People’s Court shall,
within three days from the date of accepting a case of private prosecution, inform the defendant that he has the right to entrust
persons as his defenders.

Article 34

If a case is to be brought in court by a public prosecutor and the defendant involved has not entrusted anyone to be his defender
due to financial difficulties or other reasons, the People’s Court may designate a lawyer that is obligated to provide legal aid
to serve as a defender.

If the defendant is blind, deaf or mute, or if he is a minor, and thus has not entrusted anyone to be his defender, the People’s Court
shall designate a lawyer that is obligated to provide legal aid to serve as a defender.

If there is the possibility that the defendant may be sentenced to death and yet he has not entrusted anyone to be his defender, the
People’s Court shall designate a lawyer that is obligated to provide legal aid to serve as a defender.

Article 35

The responsibility of a defender shall be to present, according to the facts and law, materials and opinions proving the innocence
of the criminal suspect or defendant, the pettiness of his crime and the need for a mitigated punishment or exemption from criminal
responsibility, thus safeguarding the lawful rights and interests of the criminal suspect or the defendant.

Article 36

Defence lawyers may, from the date on which the People’s Procuratorate begins to examine a case for prosecution, consult, extract
and duplicate the judicial documents pertaining to the current case and the technical verification material, and may meet and correspond
with the criminal suspect in custody. Other defenders, with permission of the People’s Procuratorate, may also consult, extract and
duplicate the above-mentioned material, meet and correspond with the criminal suspect in custody.

Defence lawyers may, from the date on which the People’s Court accepts a case, consult, extract and duplicate the material of the
facts of the crime accused in the current case, and may meet and correspond with the defendant in custody. Other defenders, with
permission of the People’s Court, may also consult, extract and duplicate the above-mentioned material, and may meet and correspond
with the defendant in custody.

Article 37

Defence lawyers may, with the consent of the witnesses or other units and individuals concerned, collect information pertaining to
the current case from them and they may also apply to the People’s Procuratorate or the People’s Court for the collection and obtaining
of evidence, or request the People’s Court to inform the witnesses to appear in court and give testimony.

With permission of the People’s Procuratorate or the People’s Court and with the consent of the victim, his near relatives or the
witnesses provided by the victim, defence lawyers may collect information pertaining to the current case from them.

Article 38

Defense lawyers and other defenders shall not help the criminal suspects or defendants to conceal, destroy or falsify evidence or
to tally their confessions, and shall not intimidate or induce the witnesses to modify their testimony or give false testimony or
conduct other acts to interfere with the proceedings of the judicial organs.

Whoever violates the provisions of the preceding paragraph shall be investigated for legal responsibility according to law.

Article 39

During a trial, the defendant may refuse to have his defendant continue to defend him and may entrust his defence to another defender.

Article 40

A victim in a case of public prosecution, his legal representatives or near relatives, and a party in an incidental civil action and
his legal representatives shall, from the date on which the case is transferred for examination before prosecution, have the right
to entrust agents ad litem. A private prosecutor in a case of private prosecution and his legal representatives, and a party in an
incidental civil action and his legal representatives shall have the right to entrust agents ad litem at any time.

The People’s Procuratorate shall, within three days from the date of receiving the file record of a case transferred for examination
before prosecution, notify the victim and his legal representatives or near relatives and the party in an incidental civil action
and his legal representatives that they have the right to entrust agents ad litem. The People’s Court shall, within three days from
the date of accepting a case of private prosecution, notify the private prosecutor and his legal representatives and the party in
an incidental civil action and his legal representatives that they have the right to entrust agents ad litem.

Article 41

With regard to entrusting of agents ad litem, the provisions of Article 32 of this Law shall be applied mutatis mutandis.

Chapter V Evidence

Article 42

All facts that prove the true circumstances of a case shall be evidence.

There shall be the following seven categories of evidence:

(1)

material evidence and documentary evidence;

(2)

testimony of witnesses;

(3)

statements of victims;

(4)

statements and exculpations of criminal suspects or defendants;

(5)

expert conclusions;

(6)

records of inquests and examination; and

(7)

audio-visual materials.

Any of the above evidence must be verified before it can be used as the basis for deciding cases.

Article 43

Judges, procurators and investigators must, in accordance with the legally prescribed process, collect various kinds of evidence that
can prove the criminal suspect’s or defendant’s guilt or innocence and the gravity of his crime. It shall be strictly forbidden to
extort confessions by torture and to collect evidence by threat, enticement, deceit or other unlawful means. Conditions must be guaranteed
for all citizens who are involved in a case or who have information about the circumstances of a case to objectively and fully furnish
evidence and, except in special circumstances, they may be brought in to help the investigation.

Article 44

The public security organ’s requests for approval of arrest, the People’s Procuratorate’s bills of prosecution and the People’s Court’s
written judgments must be faithful to the facts. The responsibility of anyone who intentionally conceals the facts shall be investigated.

Article 45

The People’s Courts, the People’s Procuratorates and the public security organs shall have the authority to collect or obtain evidence
from the units and individuals concerned. The units and individuals concerned shall provide truthful evidence.

Evidence involving State secrets shall be kept confidential.

Anyone that falsifies, conceals or destroys evidence, regardless of which side of a case he belongs to, must be investigated under
law.

Article 46

In the decision of all cases, stress shall be laid on evidence, investigation and study; credence shall not be readily given to oral
statements. A defendant cannot be found guilty and sentenced to a criminal punishment if there is only his statement but no evidence;
the defendant may be found guilty and sentenced to a criminal punishment if evidence is sufficient and reliable, even without his
statement.

Article 47

The testimony of a witness may be used as a basis in deciding a case only after the witness has been questioned and cross-examined
in the courtroom by both sides, that is, the public prosecutor and victim as well as the defendant and defenders, and after the testimonies
of the witnesses on all sides have been heard and verified. If a court discovers through investigation that a witness has intentionally
given false testimony or concealed criminal evidence, it shall handle the matter in accordance with law.

Article 48

All those who have information about a case shall have the duty to testify.

Physically or mentally handicapped persons or minors who cannot distinguish right from wrong or cannot properly express themselves
shall not be qualified as witnesses.

Article 49

The People’s Courts, the People’s Procuratorates and the public security organs shall insure the safety of witnesses and their near
relatives.

Anyone who intimidates, humiliates, beats or retaliates against a witness or his near relatives, if his act constitutes a crime, shall
be investigated for criminal responsibility according to law; if the case is not serious enough for criminal punishment, he shall
be punished for violation of public security in accordance with law.

Chapter VI Compulsory Measures

Article 50

The People’s Courts, the People’s Procuratorates and the public security organs may, according to the circumstances of a case, issue
a warrant to compel the appearance of the criminal suspect or defendant, order him to obtain a guarantor pending trial or subject
him to residential surveillance.

Article 51

The People’s Courts, the People’s Procuratorates and the public security organs may allow criminal suspects or defendants under any
of the following conditions to obtain a guarantor pending trial or subject them to residential surveillance:

(1)

They may be sentenced to public surveillance, criminal detention or simply imposed with supplementary punishments; or

(2)

They may be imposed with a punishment of fixed-term imprisonment at least and would not endanger society if they are allowed to obtain
a guarantor pending trial or are placed under residential surveillance.

The public security organs shall execute the decision on allowing a criminal suspect or defendant to obtain a guarantor pending trial
or on subjecting him to residential surveillance.

Article 52

A criminal suspect or defendant in custody and his legal representatives or near relatives shall have the right to apply for obtaining
a guarantor pending trial.

Article 53

If the People’s Courts, the People’s Procuratorates or the public security organs decide to allow a criminal suspect or defendant
to obtain a guarantor pending trial, they shall order the criminal suspect or defendant to provide a guarantor or pay guaranty money.

Article 54

A guarantor must be a person who meets the following conditions:

(1)

to be not involved in the current case;

(2)

to be able to perform a guarantor’s duties;

(3)

to be enpost_titled to political rights and not subjected to restriction of personal freedom; and

(4)

to have a fixed domicile and steady income.

Article 55

A guarantor shall perform the following duties:

(1)

to see to it that the person under his guarantee observes the provisions of Article 56 of this Law; and

(2)

to promptly report to the executing organ when finding that the person under his guarantee may commit or has already committed acts
in violation of the provisions of Article 56 of this Law.

If the guarantor fails to report promptly when the person under his guarantee has committed an act in violation of the provisions
of Article 56 of this Law, he shall be fined. If the case constitutes a crime, criminal responsibility shall be investigated according
to law.

Article 56

A criminal suspect or defendant who has obtained a guarantor pending trial shall observe the following provisions:

(1)

not to leave the city or county where he resides without permission of the executing organ;

(2)

to be present in time at a court when summoned;

(3)

not to interfere in any form with the witness when the latter gives testimony; and

(4)

not to destroy or falsify evidence or tally confessions.

If a criminal suspect or defendant who has obtained a guarantor pending trial violates the provisions of the preceding paragraph,
the guaranty money paid shall be confiscated. In addition, in light of specific circumstances, the criminal suspect or defendant
shall be ordered to write a statement of repentance, pay guaranty money or provide a guarantor again, or shall be subjected to residential
surveillance or arrested. If a criminal suspect or defendant is found not to have violated the provisions in the preceding paragraph
during the period when he has obtained a guarantor pending trial, the guaranty money shall be returned to him at the end of the period.

Article 57

A criminal suspect or defendant under residential surveillance shall observe the following provisions:

(1)

not to leave his domicile without permission of the executing organ or, if he has no fixed domicile, not to leave the designated residence
without permission;

(2)

not to meet with others without permission of the executing organ;

(3)

to be present in time at a court when summoned;

(4)

not to interfere in any form with the witness when the latter gives testimony; and

(5)

not to destroy or falsify evidence or tally confessions.

If a criminal suspect or defendant under residential surveillance violates the provisions of the preceding paragraph and if the case
is serious, he shall be arrested.

Article 58

The period granted by a People’s Court, People’s Procuratorate or public security organ to a criminal suspect or defendant for awaiting
trial after obtaining a guarantor shall not exceed twelve months; the period for residential surveillance shall not exceed six months.

During the period when the criminal suspect or defendant is awaiting trial after obtaining a guarantor or when he is under residential
surveillance, investigation, prosecution and handling of the case shall not be suspended. If it is discovered that the criminal suspect
or the defendant should not be investigated for criminal responsibility or when the period for awaiting trial after obtaining a guarantor
or the period of residential surveillance has expired, such period shall be terminated without delay. The person who has obtained
a guarantor pending trial or who is under residential surveillance and the units concerned shall be notified of the termination immediately.

Article 59

Arrests of criminal suspects or defendants shall be subject to approval by a People’s Procuratorate or decision by a People’s Court
and shall be executed by a public security organ.

Article 60

When there is evidence to support the facts of a crime and the criminal suspect or defendant could be sentenced to a punishment of
not less than imprisonment, and if such measures as allowing him to obtain a guarantor pending trial or placing him under residential
surveillance would be insufficient to prevent the occurrence of danger to society, thus necessitating his arrest, the criminal suspect
or defendant shall be immediately arrested according to law.

If a criminal suspect or defendant who should be arrested is seriously ill or is a pregnant woman or a woman breast-feeding her own
baby, he or she may be allowed to obtain a guarantor pending trial or be placed under residential surveillance.

Article 61

Public security organs may initially detain an active criminal or a major suspect under any of the following conditions:

(1)

if he is preparing to commit a crime, is in the process of committing a crime or is discovered immediately after committing a crime;

(2)

if he is identified as having committed a crime by a victim or an eyewitness;

(3)

if criminal evidence is found on his body or at his residence;

(4)

if he attempts to commit suicide or escape after committing a crime, or he is a fugitive;

(5)

if there is likelihood of his destroying or falsifying evidence or tallying confessions;

(6)

if he does not tell his true name and address and his identity is unknown; and

(7)

if he is strongly suspected of committing crimes from one place to another, repeatedly, or in a gang.

Article 62

When a public security organ is to detain or arrest a person in another place, it shall inform the public security organ in the place
where the person to be detained or arrested stays, and the public security organ there shall cooperate in the action.

Article 63

The persons listed below may be seized outright by any citizen and delivered to a public security organ, a Peopl

INTERIM PROCEDURES FOR THE EXPERIMENT OF TRAVEL SERVICES WITH CHINESE AND FOREIGN INVESTMENTS

Category  TOURISM Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-12-02 Effective Date  1998-12-02  


Interim Procedures for the Experiment of Travel Services with Chinese and Foreign Investments



(Approved by the State Council on October 29, 1998 and promulgated by

Order No. 11 of the State Tourism Administration and the Ministry of Foreign
Economic Relations and Trade on December 2, 1998)

    Article 1  These Procedures are formulated in accordance with the the Law
of the People’s Republic of China Concerning Chinese-Foreign Joint Ventures
and the Regulations on Traval Services Administration as well as relevant laws
and regulations with a view to further extending the opening up of the toruism
industry to the outside world and promoting the development of the tourism
industry.

    Article 2  These Procedures shall be applicable to travel services
established with Chinese and foreign investments by foreign companies or
enterprises and Chinese companies or enterprises within the territory of China(hereinafter referred to as travel services with joint
investments
for abbreviation).

    Article 3  For application for the establishment of a travel service
with joint investments, the Chinese joint venturer should meet the
following criteria:

    (1)It shall be an international travel service;

    (2)Its average annual number of overseas tourists?? in 3 years prior
to the application exceeds 30000 man/day;

    (3)Total sales volume of average annual tourism business in 3 years
prior to the application exceeds RMB 50 million Yuan; and

    (4)It must be an official member of China Tourism Association.

    Article 4  For application for the establishment of a travel service
with joint investments, the foreign joint venturer should meet the
following criteria:

    (1)It shall be a travel service operating international tourism or an
enterprise of a travel service operating international tourism with all
capital;

    (2)It has an annual sales volume from tourism business of more than
US$ 50 million;

    (3)It has joined international or national computer network for
advance booking or has formed its own computer network for advance booking;
and

    (4)It must be an official member of its national tourism association.

    Article 5  The travel service with joint investments to be established
should meet the following criteria:

    (1)It has a registered capital of not less than RMB 5 million Yuan;

    (2)Its enterprise form shall be a limited liability company;

    (3)The percentage of contribution of the registered capital from the
Chinese party shall not be under 51%;

    (4)Its legal representative shall be appointed by the Chinese party;

    (5)It has a business site, business facilities and management staff
that meet the requirements; and

    (6)The duration of joint venture shall not exceed 20 years.

    Article 6  A travel service with joint investments shall, pursuant to
the provisions of management of entry tourism by international travel
services, effect payment of quality guaranty fund.

    Article 7  Procedures for the examination and approval of a travel
service with joint investments shall be as follows:

    (1)The Chinese joint venturer shall submit such documents as the
project proposal and feasibility study for the travel service with joint
investments to the department of tourism administration of the province
(autonomous region, municipality directly under the Central Government)
or municipality under direct planning by the state of the locality wherein
the travel service is to be located. Those documents shall, upon preliminary
examination of the department of tourism administration at the provincial
level, be submitted to the State Tourism Administration.

    Where the Chinese joint venturer is an enterprise under central
management, those documents shall, upon preliminary examination of its
competment department, be submitted to the State Tourism Administration.

    The State Tourism Administration shall, pursuant to the laws and
regulations of the state concerning tourism administration process the
examination and approval of the documents submitted.

    (2)The Chinese joint venturer shall, upon receipt of the official
reply of approval of the State Tourism Administration, submit such
documents as the contract on the establishment of a travel service
with joint investments and its articles of association to the provincial-
level competent department of foreign economic relations and trade of the locality. The procincial-level competent department of
foreign economic
relations and trade shall, upon preliminary examination, submit those
documents to the Ministry of Foreign Economic Relations and Trade.

    Where the Chinese joint venturer is an enterprise under central
management, those documents shall, upon preliminary examination of its
competent department, be submitted to the Ministry of Foreign Economic
Relations and Trade.

    The Ministry of Foreign Economic Relations and Trade shall, pursuant to
the laws and regulations of the state concerning foreign business investment,
process the examination and approval of the documents submitted.

    (3)The Chinese joint venturer shall, on the strength of the certificate
of approval of enterprise with foreign business investment issued by the
Ministry of Foreign Economic Relations and Trade and the business permit
for travel service operations issued by the State Tourism Administration
and pursuant to the provisions, go through the formalities of registration
and taxation registration for the project the establishment of which has
been approved.

    Article 8  The following documents should be presented for the application
for the establishment of a travel service with joint investments:

    (1)certification of qualifications of the Chinese joint venturer
including a copy of the business licence, business permit for travel service
operations, annual business reports of the 3 years prior to the application
and certification of the membership of the tourism association;

    (2)certification of qualifications of the foreign joint venturer
including a copy of the registration, certificate of bank credit standing,
certification of financial status issued by an accountant firm, certificate
of access to the net provided by the computy company concerned, certification
of the membership of national tourism association and the annual report of
the year prior to the application;

    (3)the project proposal of the travel service with joint investments;

    (4)the feasibility study of the travel service with joint investments;

    (5)the contract and articles of association of the travel service with
joint investments; and

    (6)other materials the presentation of which is required under laws
and regulations and by the examination and approval organs.

    Article 9  Each foreign joint venturer shall only invest in the
establishment of one travel service with joint investments within the
territory of China.

    Article 10  No permission shall be granted temporarily during the
experimental phase for the establishemnt of branch(es) of travel services
with joint investments.

    Article 11  Travel services with joint investments may operate entry
tourism business and domestic tourism business.

    Article 12  No permission shall be granted temporarily to travel
services with joint investments for management of the business of Chinese citizens going to foreign countries and the Hongkong Special
Administrative Region and the regions of Macao and Taiwan for tourism.

    Article 13  Management by travel services with joint investments of special tourism projects and projects of tourism in special areas
must
be submitted to the State Tourism Administration and deparmtnets concerned
for examination and approval.

    Artilce 14  Travel services with joint investments shall not organzie
and arrange projects containing contents of obscenity, gambling and
drug taking and other items harmful to social ethics and people’s physical
and mental health; shall not organize projects containing contents damaging
state interests and national dignity of the People’s Republic of China; and
shall not organize projects containing contents prohibited under Chinese
laws and regulations.

    Article 15  Employment of tour guides by travel services with joint
investments within the territory of China shall be processed pursuant to
relevant state provisions.

    Article 16  Travel services with joint investments shall be subject to
trade administration of the department of tourism administration.

    Article 17  Travel services with joint investments shall, pursuant to
provisions, submit financial, accounting and statistical statements to
the department of tourism administration and other departments concerned
and be subject to business inspection.

    Article 18  The foreign exchange revenue and expenditure of travel
services with joint investments shall be handled pursuant to the relevant
procedures for enterprises with foreign business investment.

    Article 19  Travel services with joint investments shall abide by the
laws and regulations of the People’s Republic of China, be subject to
the jurisdiction of laws and regualtions of China, and their just management
activities and legitimate rights and interests shall be protected by the
laws and regulations of China.

    In the event of acts on the part of travel services with joint investments
in violation of the laws and regulations of China, they shall be handled
pursuant to the relevant laws and regulations.

    Article 20  Whoever violates the provisions of these Procedures
shall be imposed penalty by the department of tourism administration
pursuant to the Regulations on Travel Services Administration and
the Rules for the Implementation of the Regulations on Travel Services
Administration.

    Article 21  Interim Measures for the Administration of Examination and
Approval of Establishment of Category I Travel Services with Chinese and
foreign investments in National Tourism Holiday Areas shall continue to be
effective during the implementation of these Procedures.

    Article 22  For establishment of travel services with joint investments
with joint investments by investors of the Hongkong Special Administrative
Region and regions of Macao and Taiwan and the domestic investors, reference
shall be made to these Procedures.

    Article 23  The State Tourism Administration and the Ministry of Foreign
Economic Relations and Trade shall be responsible for the interpretation of these Procedures.

    Article 24  These Procedures shall go into force as of the date of promulgation.





PROVISIONAL REGULATIONS ON COLLECTION AND PAYMENT OF SOCIAL INSURANCE PREMIUMS

Category  INSURANCE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1999-01-22 Effective Date  1999-01-22  


Provisional Regulations on Collection and Payment of Social Insurance Premiums

Chapter I  General Provisions
Chapter II  Administration of Collection and Payment
Chapter III  Supervision and Examination
Chapter IV  Penalty Provisions
Chapter V  Supplementary Provisions

(Adopted at the 13th Executive Meeting of the State Council on January 14,1999, promulgated by Decree No.259 of the State Council
of People’s Republic of China on January 22, 1999)

Chapter I  General Provisions

    Article 1  These Regulations are formulated to strengthen and regularize collection and payment of social insurance premiums, and
to ensure the granting of social insurance compensation.

    Article 2  These Regulations are applicable to collection and payment of basic pensions, basic medical insurance premiums and unemployment
insurance premiums (hereinafter collectively referred to “social insurance premiums”).

    A unit or an individual paying premiums mentioned in these Regulations refers to the unit or individual who
shall pay social insurance premiums according to the provisions of relevant laws, administrative regulations and of the State Council.

    Article 3  The collection and payment scope of basic pensions: State-owned enterprises, collectively owned enterprises in cities
and towns, enterprises with foreign investment, privately owned enterprises in cities and towns and other enterprises in cities and
towns as well as their staff and workers, and institutions managed as enterprise as well as their staff and workers.

    The collection and payment scope of basic medical insurance premiums: State-owned enterprises, collectively
owned enterprises in cities and towns, enterprises with foreign investment, privately owned enterprises in cities and towns and other
enterprises in cities and towns as well as their staff and workers, State organs and their functionaries, institutions and their
staff and workers, private non-enterprise unit as well as their staffs and workers, social organizations and their full-time staff.

    The collection and payment scope of unemployment insurance premiums: State-owned enterprises, collectively
owned enterprises in cities and towns, enterprises with foreign investment, privately owned enterprise in cities and towns and other
enterprises in cities and towns as well as their staff and workers, institutions as well as their staff and workers.

    The people’s governments of provinces, autonomous regions and municipalities directly under the Central Government,
according to the actual local situations, may provide for the incorporation of individual industrial and commercial businesses in
cities and towns into the collection and payment scope of basic pensions and basic medical insurance, and may provide for the incorporation
of social organizations and their full-time staff,  private non-enterprise units and their staffs and workers, as well
as individual industrial and commercial businesses in cities and towns with employees and their employees into the collection and
payment scope of unemployment insurance.

    The base and rate of social insurance premiums shall be set fixed in accordance with relevant laws and administrative
regulations as well as provisions of the State Council.

    Article 4  Units and individuals paying premiums shall promptly pay social insurance premiums in full amount.

    Social insurance premiums collected and paid shall be incorporated into social insurance funds and only used
for their special purposes. No unit and individual may misappropriate these premiums.

    Article 5  The administrative department of labor security under the State Council is responsible for the nationwide administration,
supervision and checkup of the collection and payment of social insurance premiums. The administrative departments of labor security
of the people’s governments at or above the county level are responsible for the administration, supervision and checkup of the collection
and payment of social insurance premiums within their respective administrative areas.

    Article 6  Social insurance premiums shall be collected in a way that three kinds of social insurance premiums are collected centrally
and uniformly. The people’s governments of provinces, autonomous regions, and municipalities directly under the central Government
shall prescribe the collecting agencies. They may collect by taxation departments, or by social insurance agencies established by
the administrative department of labor security according to the provisions of the State Council (hereinafter referred to as social
insurance agencies).
Chapter II  Administration of Collection and Payment

    Article 7  Units paying premiums must carry out social insurance registration with local social insurance agencies to participate
in social insurance.

    The registration items include: name and domicile of the unit, its business place, type of the unit, its legal
representative or person in charge, its bank account number and other items prescribed by the administrative department for labor
security of the State Council.

    Article 8  Units paying premiums which have already participated in social insurance before the enforcement of these Regulation shall,
within 6 months of the date of enforcement of these Regulation, carry out social insurance registration with the local social insurance
agencies, and the said agencies shall issue them a social insurance registration certificate.  

    Units paying premiums which have not participated in social insurance before the enforcement of these Regulation,
within 30 days of the date of enforcement of these Regulations, and units paying premiums which are established after the enforcement
of these Regulations, within 30 days of the date of their establishment, shall apply for social insurance registration at the local
social insurance agencies on the basis of their business licenses, registration certificates or other such relevant certificates.
After verification, the social insurance agencies shall issue them a social insurance registration certificate.

    Social insurance registration certificate may not be forged or altered.

    The form of social insurance registration certificate shall be determined by the administrative department
of labor security of the State Council.

    Article 9  If the social insurance registration items of a unit paying premiums change or the unit paying premiums is terminated
according to law, procedures for change or cancellation of the social insurance registration shall be carried out with the social
insurance agency within 30 days of the date of the change or termination.

    Article 10  Units paying premiums shall, on a monthly basis, report to the social insurance agency the amount of social insurance
premiums payable and, after assessment by the social insurance agency, pay their social insurance premiums within the prescribed
time period.

    If a unit paying premiums fails to report the amount of social insurance premiums payable according to provisions,
the social insurance agency `shall provisionally set the amount payable at 110 per cent of the premium amount paid in the preceding
month. If it did not make a premium payment in the preceding month, the social insurance agency shall provisionally set the amount
payable according to the unit’s business situations, its number of staff and workers and other such relevant circumstances. After
a unit paying premiums has retroactively carried out its reporting procedures and paid the social insurance premiums according to
the sum assessed, the social insurance agency shall settle the accounts according to provisions.

    Article 11  If the people’s government of a province, an autonomous region or a municipality directly under the Central Government
has determined that the
tax authorities shall levy and collect social insurance premiums, the social insurance agency shall promptly provide the tax authorities
with the relevant information of the social insurance registration, changes of registration, cancellation of registration and premium
payment reports of the unit paying premiums.  

    Article 12  Units and individuals paying premiums shall pay their social insurance premiums in cash and in full.

    The social insurance premiums payable by individuals paying premiums shall be withheld from their wages and
paid for them by their work units.

    Social insurance premiums may not be reduced or exempted.

    Article 13  If a unit paying premium fails to pay its own social insurance premiums or to withhold and pay those of its staff and
workers according to provisions, the administrative department of labor security or tax authority shall order it to pay within a
prescribed time limit; if it has still not paid at the end of the time limit, in addition to paying the sum owned, it shall pay a
late-payment fine of 0.2 per cent per day, counting from the date when the amount became overdue. Late-payment fines shall be consolidated
into the social insurance funds.

    Article 14  Social insurance premiums collected shall be deposited into a dedicated public finance account for social security funds
opened by the public finance authorities with a State-owned commercial bank.

    The social insurance funds established shall respectively be basic old age insurance funds, basic medical
insurance funds, and unemployment insurance funds according to the pooling scope for the risk concerned. Separate and independent
accounts shall be maintained for each type of social insurance funds.

    No taxes of fees shall be calculated or levied on social insurance funds.

    Article 15  If the people’s government of a province, an autonomous region or a municipality directly under the Central Government
has determined that the tax authorities shall levy and collect social premiums, the tax authorities shall promptly provide the social
insurance agencies with information of the premium payments of units and individuals paying premiums. The social insurance agencies
shall consolidate the relevant matters and submit them to the administrative departments of labor security.  

    Article 16  Social insurance agencies shall establish premium payment records. Of such records, those that pertain to basic old age
insurance and basic medical insurance shall contain a record of the personal accounts, according to provisions. Social insurance
agencies shall be responsible for maintaining premium payment records and ensuring their completeness and security. Social insurance
agencies shall issue statements to individuals paying premiums concerning their basic old age insurance and basic medical insurance
personal accounts at least once a year.

    Units and individuals paying premiums are enpost_titled to access their premium payment records according to provisions.
Chapter III  Supervision and Examination

    Article 17  Unit paying premiums shall announce to their staff and workers on a annual basis details of the units’ social insurance
premium payments for the whole year, and accept the supervision of their staff and workers.  

    Social insurance agencies shall periodically inform the public on details of the levy and collection of social
insurance premiums, and accept the supervision of the society.

    Article 18  According to the provisions of the people’s governments of provinces, autonomous regions and municipalities directly under
the Central Government on collecting agencies of social insurance premiums, when an administrative department of labor security or
a tax authority conducts an examination of the premium payments of a unit according to law, the unit being examined shall provide
such information relevant to the payment of social insurance premiums as employment details, payrolls and financial statements, etc.,
and truthfully report the situation. The unit examined may not refuse the examination or make false or deceptive reports. The administrative
department of labor security or the tax authority may make a written record of, audio tape, videotape, photograph or photocopy materials;
however, they shall maintain the confidentiality of the unit paying premiums.

    When conducting the duties indicated in the preceding paragraph, the personnel of the administrative department
of labor security or the tax authority shall produce their proof of carrying out official business.

    Article 19  When an administrative departments of labor security or a tax authority investigates cases of the illegal acts related
to the collection and payment of social insurance premiums, the relevant departments and units shall provide support and cooperation.  

    Article 20  Subject to authorization by the administrative departments of labor security, social insurance agencies may conduct examination
and investigation related to the collection and payment of social insurance premiums.

    Article 21 Any organization or individual has the right to report illegal acts related to the collection and payment of social insurance premiums.
The administrative department of labor security or the tax authority shall promptly investigate the report, handle it according to
provisions, and maintain the confidentiality of the person making the report.

    Article 22  Payments into and out of the social insurance fund shall be subject to separate administration and shall be supervised
by the public finance departments according to law.

    The auditing departments shall supervise the payments into and out of the social insurance fund according
to law.
Chapter IV  Penalty Provisions

    Article 23  If a unit paying premiums fails to carry out social insurance registration, change its registration or cancel its registration
according to provisions, or fails to report the amount of social insurance premiums payable according to provisions, the administrative
department of labor security shall order it to correct situation within a prescribed time limit; in serious cases, a fine of not
less than 1,000 yuan and not more than 5,000 yuan may be imposed on the person in charge who are directly responsible and other directly
responsible persons; in particularly serious cases, a fine of not less than 5,000 yuan and not more than 10,000 yuan may be imposed
on the person in charge who are directly responsible and other directly responsible persons.  

    Article 24  If a unit paying premiums violates relevant financial, accounting or statistics laws or administrative regulations or
relevant State regulations, or forges, alters or intentionally destroy relevant account books or documents, or fails to keep accounts,
thereby making it impossible to determine the base number for the collection and payment of social insurance premiums, it shall not
only be subjected to administrative penalties, disciplinary punishment and/or criminal prosecution in accordance with the provisions
of the relevant laws and administrative regulations, but it shall also make payment in accordance with Article 10 of these Regulations.
If it delays payment, the administrative department of labor security or the tax authority shall decide to impose a late-payment
fine in accordance with Article 13 of these Regulations and impose a fine of not less than 5,000 yuan and not more than 20,000 yuan
on the person in charge who are directly responsible and other directly responsible persons.

    Article 25  Units or individuals paying premiums dissatisfied with the penal decisions of the administrative departments of labor
security or tax authorities may apply for reconsideration of the cases according to law. If the units or individuals are dissatisfied
with the decisions made upon reconsideration, thy may file suits according to law.

    Article 26  If a unit paying premiums refuses to pay its social insurance premiums or late-payment fines after the time limit for
payment thereof has expired, the administrative department of labor security or the tax authority shall apply to the people’s court
to enforce payment according to law.

    Article 27  If personnel of an administrative department of labor security, social insurance agency or tax authority abuse their powers,
practise favoritism or graft, or neglect their duties, resulting in the loss of social insurance premiums, the administrative department
of labor security or the tax authority shall pursue the recovery of the lost social insurance premiums; if a comical offence is constituted,
criminal liability shall be pursued according to law; if no criminal offence is constituted, administrative punishment shall be imposed
according to law.

    Article 28  If any unit or individual misappropriates social insurance funds, the recovery of the misappropriated funds shall be pursued,
and any illegal income shall be confiscated and consolidated with the social insurance funds; if a comical offence is constituted,
criminal liability shall be pursued according to law; if no criminal offence is constituted, the persons in charge directly responsible
and other directly responsible persons shall be subjected to administrative punishment according to law.
Chapter V  Supplementary Provisions

    Article 29  The peoples’ governments of provinces, autonomous regions and municipalities directly under the Central Government, according
to the actual local conditions, may determine that these regulations shall apply to the collection and payment of work-related injury
insurance and maternity insurance premiums within their respective administrative areas.

    Article 30  The tax authorities and social insurance agencies may not make any appropriations from the social insurance funds to cover
expenses incurred in their levy and collection of social insurance premiums. Funding for the necessary expenses shall be included
in the budget and appropriated form public finance.

    Article 31  These Regulation shall take effect as of the date of promulgation.





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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...

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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