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

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 Regulations of the People’s Republic of China Concerning the Assignment and Transfer of the Right to the Use of the State-owned
Land in the Urban Areas

Chapter I  General Provisions
Chapter II  The Assignment of the Right to the Use of the Land
Chapter III  The Transfer of the Right to the Use of the Land
Chapter IV  The Lease of the Right of the Use of the Land
Chapter V  The Mortgage of the Right to the Use of the Land
Chapter VI  The Termination of the Right to the Use of the Land
Chapter VII  The Allocated Right to the Use of the Land
Chapter VIII  Supplementary Provisions

(Promulgated by Decree No. 55 of the State Council of the People’s

Republic of China on May 19, 1990 and effective as of the date of
promulgation)
Chapter I  General Provisions

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

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

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

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

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

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

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

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

    The registration documents shall be made available for public reference.
Chapter II  The Assignment of the Right to the Use of the Land

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

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

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

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

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

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

    (1) 70 years for residential purposes;

    (2) 50 years for industrial purposes;

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

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

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

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

    (1) by reaching an agreement through consultations;

    (2) by invitation to bid; or

    (3) by auction.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Article 38  If the mortgage is eliminated as a result of the liquidation
of liabilities or for other reasons, procedures shall be undertaken to nullify
the mortgage registration.
Chapter VI  The Termination of the Right to the Use of the Land

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

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

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

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

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

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

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

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

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

    (2) a certificate for the use of state-owned land has been obtained;

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

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

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

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

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

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

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

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

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

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

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

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

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

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





RULES FOR THE IMPLEMENTATION OF THE FOREIGN-CAPITAL ENTERPRISES

Category  FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1990-12-12 Effective Date  1990-12-12  


Rules for the Implementation of the Law of the People’s Republic of China on Foreign-capital Enterprises

Contents
Chapter I  General Provisions
Chapter II  Procedures for Establishment
Chapter III  Form of Organization and Registered Capital
Chapter IV  Methods of Contributing Investment and the Time Limit
Chapter V  Use of Site and the Site Use Fees
Chapter VI  Purchasing and Marketing
Chapter VII Taxation
Chapter VIII  Control of Foreign Exchange
Chapter IX  Financial Affairs and Accounting
Chapter X  Workers and Staff Members
Chapter XI  Trade Union
Chapter XII  Term of Operations, Termination and Liquidation
Chapter XIII  Supplementary Provisions

(Approved by the State Council on October 28, 1990, and promulgated by

Decree No. 1 of the Ministry of Foreign Economic Relations and Trade on
December 12, 1990)
Contents

    Chapter I     General Provisions

    Chapter II    Procedures for Establishment

    Chapter III   Form of Organization and Registered Capital

    Chapter IV    Methods of Contributing Investments and the Time Limit

    Chapter V     Use of Site and the Site Use Fees

    Chapter VI    Purchasing and Marketing

    Chapter VII   Taxation

    Chapter VIII  Control of Foreign Exchange

    Chapter IX    Financial Affairs and Accounting

    Chapter X     Workers and Staff Members

    Chapter XI    Trade Union

    Chapter XII   Term of Operations, Termination and Liquidation

    Chapter XIII  Supplementary Provisions
Chapter I  General Provisions

    Article 1  These Rules are formulated in accordance with the provisions in
Article 23 of The Law of the People’s Republic of China on Foreign-Capital
Enterprises.

    Article 2  Foreign-capital enterprises shall be under the jurisdiction of
and protection by China’s laws.

    Foreign-capital enterprises, while engaged in business operational
activities within the territory of China, must abide by Chinese laws and
regulations and must not jeopardize the social and public interests of China.

    Article 3  A foreign-capital enterprise to be established in China must be
conducive to the development of China’s national economy, be capable of gaining
remarkable economic results and shall meet at least one of the following
conditions:

    (1) the enterprise is to adopt advanced technology and equipment, engage in
the development of new products, conserve energy and raw materials, and
realize the upgrading of products and the replacement of old products with new
ones which can be used for placing similar Imported goods;

    (2) its annual output value of export products accounts for more than 50%
of the annual output value of all products, thereby realizing the balance
between revenues and expenditures in foreign exchange or with a surplus.

    Article 4  No foreign-capital enterprise shall be established in the
following trades:

    (1) the press, publication, broadcasting, television, and movies;

    (2) domestic commerce, foreign trade, and insurance;

    (3) post and telecommunications;

    (4) other trades in which the establishment of foreign-capital enterprises
is forbidden, as prescribed by the Chinese government.

    Article 5  The establishment of foreign-capital enterprises shall be
restricted in the following trades:

    (1) public utilities;

    (2) communications and transportation;

    (3) real estate;

    (4) trust investment;

    (5) leasing.

    The application for the establishment of a foreign-capital enterprise in
the trades mentioned in the preceding paragraph shall be submitted to the
Ministry of Foreign Economic Relations and Trade of the People’s Republic of
China (hereinafter referred to the Ministry of Foreign Economic Relations and
Trade) for approval, except as otherwise provided by Chinese laws and
regulations.

    Article 6  Application for the establishment of a foreign-capital
enterprise shall not be approved if the proposed enterprise would involve one
of the following circumstances:

    (1) injury to China’s sovereignty or to social and public interests;

    (2) impairment of China’s national security;

    (3) violation of Chinese laws and regulations;

    (4) incompatibility with the requirements of China’s national economic
development; or

    (5) possible creation of environmental pollution.

    Article 7  A foreign-capital enterprise shall make its own managerial
decisions within the approved scope of business operations and shall not be
subject to intervention.
Chapter II  Procedures for Establishment

    Article 8  The application for the establishment of a foreign-capital
enterprise shall be submitted to the Ministry of Foreign Economic Relations and
Trade, and after examination and approval, a certificate of approval shall be
issued by the Ministry.

    With respect to the application for the establishment of a foreign-capital
enterprise that comes under one of the following circumstances, the State
Council shall authorize the people’s government of the relevant province,
autonomous region, municipality directly under the Central Government,
municipality separately listed on the state plan, or the special economic zone,
to issue the certificate of approval after examining and approving the
application:

    (1) the total amount of investment is within the limits of powers for the
examination and approval of investments stipulated by the State Council;

    (2) the proposed enterprises does not need the raw and processed materials
to be allocated by the State, or does not influence unfavourably the national
comprehensive balance of energy resources, communications and transportation,
as well as export quotas for foreign trade.

    Where the people’s government of the province, autonomous region,
municipality directly under the Central Government, municipality separately
listed on the state plan, or the special economic zone has approved the
establishment of a foreign-capital enterprise within its limits of powers
granted by the State Council, it shall, within 15 days after the approval,
submit a report to the Ministry of Foreign Economic Relations and Trade for the
record (hereinafter the Ministry of Foreign Economic Relations and Trade, and
the people’s government of the province, autonomous region, municipality,
directly under the Central Government, municipality separately listed on the
state plan, and the special economic zone shall be called generally as the
examining and approving organ).

    Article 9  With respect to a foreign-capital enterprise, the establishment
of which has been applied for, if its products are subject to export licence,
export quota, or import licenee, or are under restrictions by the State, prior
consent of the department of foreign economic relations and trade shall be
obtained in accordance with the limits of powers for administration.

    Article 10  A foreign investor shall, prior to the filing of an application
for the establishment of a foreign-capital enterprise, submit a report to the
local people’s government at or above the county level at the place where the
proposed enterprise is to be established. The report shall include: the aim of
the establishment of the proposed enterprise; the scope and scale of business
operation; the products to be produced; the technology and equipment to be
adopted and used; the proportion of the sales of products between the domestic
market and the foreign market; the area of land to be used and the related
requirements; the conditions and quantities of water, electricity, coal, coal
gas and other forms of energy resources required; and the requirement of public
facilities.

    The local people’s government at or above the county level shall within 30
days after receiving the report submitted by the foreign investor, give a reply
in writing to the said foreign investor.

    Article 11  In case that a foreign investor wishes to establish a
foreign-capital enterprise, an application shall be submitted to the examining
and approving organ through the local people’s government at or above the
county level at the place where the enterprise is to be established, together
with the following documents.

    (1) the written application for the establishment of a foreign-capital
enterprise;

    (2) a feasibility study report;

    (3) the articles of association of the foreign-capital enterprise;

    (4) the name-list of the legal representatives (or the candidates for
members of the board of directors) of the foreign-capital enterprise;

    (5) the legal certifying documents and the credit position certifying
documents of the foreign investor;

    (6) the written reply given by the people’s government at or above the
county level at the place, where the enterprise is to be established;

    (7) an inventory of goods and materials needed to be imported;

    (8) other documents that are required to be submitted.

    The documents mentioned in Items(1) and (3) in the preceding paragraph must
be written in the Chinese language; while the documents mentioned in Items
(2), (4) and (5) in the preceding paragraph may be written in a foreign
language, but a corresponding Chinese translation shall be attached.

    In the event that two or more foreign investors jointly file an application
for the establishment of a foreign-capital enterprise, they shall submit a
duplicate of the contract concluded and signed between them to the examining
and approving organ for the record.

    Article 12  The examining and approving organ shall, within 90 days after
receiving all the required documents with respect to an application for the
establishment of foreign-capital enterprise, make a decision whether to approve
or disapprove the application. In the event that the examining and approving
organ has found that the documents mentioned above are not complete, or that
some of them are inappropriate, it may call on the applicant to make up the
incomplete documents, or to make necessary revisions, within a prescribed time
limit.

    Artricle 13  After the approval of the application for the establishment of a foreign-capital
enterprise by the examining and approving organ, the foreign
investor shall, within 30 days after receiving the certificate of approval,
file an application with the relevant administrative department for industry
and commerce for registration, and obtain a business licence. The date on which
the business licence is issued shall be the date of the establishment of the
said enterprise.

    In the event that the foreign investor fails to file an application with
the administrative department for industry and commerce for registration on the
expiration of the 30 days after receiving the certificate of approval, the
certificate of approval for the establishment of the proposed enterprise shall
become invalid automatically,

    A foreign-capital enterprise shall, within 30 days after its establishment,
go through the procedures for taxation registration with the tax authorities.

    Article 14  Foreign investors may appoint a Chinese service agency for
enterprises with foreign investment or other economic organizations to handle,
on their behalf, the affairs stipulated in Article 9, the first paragraph of
Article 10 and Article 11 of these Rules, but a contract of entrustment shall
be concluded and signed between them.

    Article 15  The written application for the establishment of a
foreign-capital enterprise shall include the following contents:

    (1) the name or designation, the residence and the place of registration of the foreign investor, and the
name, nationality, and position of the legal
representative;

    (2) the name and residence of the foreign-capital enterprise;

    (3) the scope of business operations, the varieties of products, and the
scale of production;

    (4) the total amount of investment, the registered capital, the source of
funds, and the method of investment contribution and the operation period;

    (5) the organizational form and organs, and the legal representative of the
foreign-capital enterprise;

    (6) the primary production equipment to be used and the degrees of
depreciation, production technology, technological level and their sources;

    (7) the sales orientation and areas, the sales channels and methods, and
the sales proportion between China’s market and foreign markets;

    (8) the arrangements for the revenues and expenditures in foreign exchange;

    (9) the arrangements for the establishment of relevant organs and the
authorized size of working personnel, the engagement and use of workers and
staff members, their training, salaries and wages, material benefits,
insurance, and labour protection;

    (10) the degrees of probable environmental pollution and the measures for
tackling pollution;

    (11) the selection of sites and the area of land to be used;

    (12) the funds, energy resources, raw and processed materials needed in
capital construction and in production and business operations and the
solutions thereof;

    (13) the progress plan for the construction of the project; and

    (14) the period of business operations of the foreign-capital enterprise to
be established.

    Article 16  The articles of association of a foreign-capital enterprise
shall include the following contents:

    (1) the name and the residence;

    (2) the aim and the scope of business operations;

    (3) the total amount of investments, the registered capital, and the time
limit for contributing investment;

    (4) the form of organization;

    (5) the internal organizational structures and their functions and powers
as well as their rules of procedures; the functions, duties and limits of
powers of the legal representative as well as of the general manager, chief
engineer, chief accountant and other staff members;

    (6) the principles and system of financial affairs, accounting and
auditing;

    (7) labour administration;

    (8) the term of business operations, termination, and liquidation; and

    (9) the procedures for the amendment of the articles of association.

    Article 17  The articles of association of a foreign-capital enterprise
shall become effective after the approval by the examining and approving organ.
The same procedure shall apply when amendments are made.

    Article 18  The division or merge of foreign-capital enterprises, and the
significant change in capital resulting from other causes, shall be subject to
the approval by the examining and approving organ; in addition, the said
enterprises shall engage a Chinese registered acountant to carry out
verification, and to submit a report on the verification of capital; after the
approval by the examining and approving organ, the enterprises concerned shall
go through the procedures for the change of the registration with the relevant
administative department for industry and commerce.
Chapter III  Form of Organization and Registered Capital

    Article 19  The organizational form of a foreign-capital enterprise shall
be a limited liability company.

    With approval, the enterprise may also take any other liability form.

    With respect to a foreign-capital enterprise which is a limited liability
company, the liability of the foreign investor to the enterprise shall be
limited to the amount of investment subscribed and contributed to the
enterprise by the investor.

    With respect to a foreign-capital enterprise which takes any other
liability form, the liability of the foreign investor to the enterprise shall
be dealt with in accordance with the provisions of Chinese laws and regulations.

    Article 20  The total amount of investment of a foreign-capital enterprise
refers to the total amount of funds needed for the establishment of the
enterprises, i.e. the sum total of the funds invested in capital construction
in accordance with the scope of production and the circulating funds for
production.

    Article 21  The registered capital of a foreign-capital enterprise refers
to the total amount of capital registered with the administrative department
for industry and commerce for the purpose of establishing the foreign-capital
enterprise, i.e. the total amount of investment the foreign investor undertakes
to contribute.

    The registered capital of a foreign-capital enterprise shall fit in with
the enterprise’s scope of business operations; and the proportion between the
registereed capital and the total amount of investment shall conform with the
provisions of the relevant Chinese laws and regulations.

    Article 22  A foreign-capital enterprise shall not reduce the registered
capital during the term of business operations.

    Article 23  The increase or assignment of the registered capital of a
foreign-capital enterprise shall be subject to the approval by the examining
and approving organ; in addition, the said enterprise shall go through the
procedures for the change of the registration with the administrative
department for industry and commerce.

    Article 24  In case that a foreign-capital enterprise intends to mortgage
or assign its assets or rights and interests to a foreign unit, the case shall
be submitted to the examining and approving organ for approval, and then to the
administrative department for industry and commerce for the record.

    Article 25  The legal representative of a foreign-capital enterprise shall
be the person-in-charge who, in accordance with the stipulations in the
enterprise’s articles of association, executes his/her functions and powers on
behalf of the enterprise.

    In the event that the legal representative is unable to execute his/her
functions and powers, he/she shall entrust in writing an agent with the
execution of his/her functions and powers.
Chapter IV  Methods of Contributing Investment and the Time Limit

    Article 26  Foreign investors may use convertible foreign currencies for
the contribution of investment, or use as their investment machinery and
equipment, industrial property rights, and proprietary technology that are
assigned a fixed price.

    Foreign investors may, after approval by the examining and approving organ,
use, as their investment, their profits in Renminbi (RMB) earned from other
enterprises with foreign investment established within the territory of China.

    Article 27  In case that foreign investors intend to use machinery and
equipment, being assigned a fixed price, as their investment, the said
machinery and equipment must meet the following requirements:

    (1) those that are needed for the production of the foreign-capital
enterprise;

    (2) those that cannot be produced in China, or that can be produced in
China but cannot be guaranted to meet the needs in terms of technical
performance or time of supply.

    The price fixed for the aforesaid machinery and equipment shall not be
higher than the normal price for similar machinery and equipment sold on the
international market at the time.

    With respect to the machinery and equipment, being assigned a fixed price
and used as contributing investment, an inventory listing in detail the
assigning of fixed prices as contributing investment, including the names,
categories, quantities, and the assignment of prices, shall be made and
submitted to the examining and approval organ as an appendix to the application
for the establishment of the foreign-capital enterprise.

    Article 28  In case that foreign investors intend to use industrial
property rights and proprietary technology, being assigned a fixed price, as
their investment, the said industrial property rights and proprietary
technology must meet the following requirements:

    (1) owned by the foreign investors themselves;

    (2) capable of producing new products that are urgently needed by China, or
that are suitable for export and marketable abroad.

    The assigning of a fixed price for the aforesaid industrial property rights
and proprietary technology shall be in conformity with the general pricing
principles of the international market, and the amount of pricing thereof shall
not exceed 20% of the registered capital of the foreign-capital enterprise.

    With respect to those industrial property rights and proprietary
technology, being assigned a fixed price for contributing investment, a
detailed inventory of relevant data, including a duplcate of the proprietary
rights certificate, the effective condition, technological performance, the
practical value, the basis and standard for the calculation of pricing, shall
be prepared and submitted to the examining and approving organ as an appendix
to the application for the establishment of the foreign-capital enterprise.

    Article 29  When the machinery and equipment, being assigned a fixed price
and used as contributing investment, have arrived at China’s port, the
foreign-capital enterprise shall apply to China’s commodity inspection
authorities for inspection, which shall then issue an inspection report.

    In the event that the variety, quality and quantity of the machinery and
equipment, being assigned a fixed price and used as contributing investment,
are not in conformity with the variety, quality and quantity of the machinery
and equipment, being assigned a fixed price as contributing investment and
listed in the inventory submitted to the examining and approving organ, the
examining and approving organ has the power to require the foreign investors to
make corrections within a prescribed time limit.

    Article 30  After the industrial property rights and proprietary technology
priced as contributing investment have been put to use, the examining and
approving organ has the power to carry out inspection. In the event that the
said industrial property rights and proprietary technology are not in
conformity with the data originally provided by the foreign investors, the
examining and approving organ has the power to require the foreign investors to
make corrections within a prescribed time limit.

    Article 31  The time limit for a foreign investor to make the investment
contributions shall be clearly stipulated in the written application for the
establishment of the foreign-capital enterprise and also in the articles of
association of the enterprise. A foreign investor may make the investment
contribution by instalments, but the last instalment of the contribution shall
be made within the period of three years beginning from the day when the
business licenee is issued. The first instalment of investment contribution
shall not be less than 15% of the total amount of investment contribution that
the foreign investor undertakes to make, and shall be made in full within a
period of 90 days beginning from the day when the business licenee is issued.

    In the event that a foreign investor fails to make in full the first
instalment of the investment contribution within the time limit stipulated in
the preceding paragraph, the certificate of approval for the establishment of
the proposed foreign-capital enterprise shall become invalid automatically. The
foreign-capital enterprise in question shall go through the procedure for
registration cancellation with the relevant administrative department for
industry and commerce, and hand in its business licence for cancellation.

    In the event of the failure to go through the procedure for registration
cancellation and to hand in the business licence for cancellation, the
administrative department for industry and commerce shall revoke the business
licence and announce the case publicly.

    Article 32  After making the first instalment of investment contribution,
the foreign investor shall make the remaining instalments of contribution
strictly as scheduled. In the event that a foreign investor is in arrears with
the contribution for 30 days without any justification, the case shall be
handled in accordance with the provisions of paragraph 2 of Article 31 of these
Rules.

    In the event that a foreign investor has proper reasons for requesting the
postponement of investment contribution, prior consent of the examining and
approving organ shall be obtained, and the case shall also be reported to the
administrative department for industry and commerce for the record.

    Article 33  After the foreign investor’s each instalment of investment
contribution, the foreign-capital enterprise shall engage a Chinese registered
accountant to carry out verification, and to prepare a report on the
verification of capital, which shall be submitted to the examining and
approving organ and the administrative department for industry and commerce for
the record.
Chapter V  Use of Site and the Site Use Fees

    Article 34  With espect to the site to be used by a foreign-capital
enterprise, the local people’s government at or above the county level in the
place where the enterprise is to be located, shall make arrangements after
examination and verification in the light of the local conditions.

    Article 35  A foreign-capital enterprise shall, within 30 days from the day
the business licence is issued, go through the procedure for the use of land
and obtain the land certificate by presenting the certificate of approval and
the business licence to the land administration department under the local
people’s government at or above the county level in the place where the
enterprise is to be located.

    Article 36  The land certificate shall be the legal instrument for the
foreign-capital enterprise to use land. The foreign-capital enterprise within
its term of operations, may not assign its land-use right without permission.

    Article 37  A foreign-capital enterprise shall, when obtaining the land
certificate, pay its land use fee to the land administrative department in the
place where the enterprise is located.

    Article 38  In case that a foreign-capital enterprise uses land that has
already been developed, it shall pay the land development fee.

    The land development fee, as mentioned in the preceding paragraph, includes
the expense for the requisition of land, the expense for the pulling down of
houses and the settlement allowance, and the expense for the

PROTECTION OF DISABLED PERSONS LAW

Law of the People’s Republic of China on the Protection of Disabled Persons

(Adopted at the 17th Meeting of the Standing Committee of the Seventh National People’s Congress on December 28,
1990 and promulgated by Order No.36 of the President of the People’s Republic of China on December 28, 1990)     

Contents    

Chapter I      General Provisions  

Chapter II     Rehabilitation   

Chapter III    Education  

Chapter IV     Employment  

Chapter V      Cultural Life  

Chapter VI     Welfare  

Chapter VII    Environment  

Chapter VIII   Legal Liabilities 

Chapter IX     Supplementary Provisions     

Chapter I 

General Provisions 

Article 1   This Law is formulated in accordance with the Constitution for the purposes of protecting the lawful rights
and interests of, and developing  undertakings for, disabled persons, and ensuring their equal and full participation in social
life and their share of the material and cultural wealth of the society.  

Article 2   A disabled person refers to one who suffers from abnormalities or loss of a certain organ or function, psychologically
or physiologically,  or in anatomical structure and who has lost  wholly or  in part the ability to engage in activities
in a normal way.  

“Disabled persons” refers to those with visual, hearing, speech or physical disabilities, mental retardation, mental disorder, multiple
disabilities and/or other disabilities.  

The criteria for classification of disabilities shall be established by the State Council.  

Article 3   Disabled persons shall enjoy equal rights with other citizens in political, economic. cultural and social fields,
in family life and other aspects.  

The citizen’s rights and personal dignity of disabled persons shall be protected by law.  

Discrimination against, insult of and infringement upon disabled persons shall be prohibited.  

Article 4   The State shall provide disabled persons with special assistance by adopting supplementary methods and supportive
measures with a view to alleviating or eliminating the effects of their disabilities and external barriers and ensuring the realization
of their rights.  

Article 5   The State and society shall provide special assurance, treatment and pension to wounded or disabled servicemen
and persons disabled while on duty or for protecting the interests of the State and people.  

Article 6   The people’s governments at all levels shall incorporate undertakings for disabled persons into plans for economic
and social development through budget arrangement, overall planning and coordination and other measures under  strengthened
leadership with  a view to ensuring that  undertakings for disabled persons develop in coordination with economic and social
progress.  

The State Council and the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government
shall adopt organizational measures to coordinate departments concerned in the work for the disabled. The establishment of specific
institutions shall be decided upon by the State Council and/or the people’s governments of provinces, autonomous regions and municipalities
directly under the Central Government.  

Departments concerned under the people’s governments at various levels shall keep in close contact with disabled persons, solicit
their opinions and fulfil their respective duties in the work for disabled persons.  

Article 7   The whole society should display socialist humanitarianism, understand, respect, care for and assist people
with disabilities and support the work for disabled persons.  

State organs, public organizations, enterprises, institutions and urban and rural organizations at grassroots level shall do their
work for the disabled well, as is within their responsibility.  

State functionaries and other personnel engaged in the work for the disabled should work hard to fulfil their lofty duties in serving
the disabled.  

Article 8   The China Disabled Persons’ Federation (CDPF) and its local branches shall represent the common interests of
disabled persons, protect their lawful rights and interests, unite, educate and provide service to disabled persons.  

Disabled persons’ federations shall undertake tasks entrusted by the government, conduct work for disabled persons and mobilize social
forces in developing  undertakings for disabled persons.  

Article 9   Legal fosterers of disabled persons must fulfil their duties toward their charge.  

Guardians of disabled persons must fulfil their duties of guardianship and protect the lawful rights and interests of their charge.
 

Family members and guardians of disabled persons should encourage and assist disabled persons to enhance their capability of self-reliance.
 

Maltreatment and abandoning of disabled persons shall be prohibited. 

Article 10   Disabled persons must abide by laws, carry out their due obligations, observe public order and respect social
morality.  

Disabled persons should display an optimistic and enterprising spirit, have a sense of self-respect, self-confidence, self-exertion
and self-reliance, and make contributions to the socialist construction.  

Article 11   The State shall undertake, in a planned way, the work  of disability prevention, strengthen leadership
in this regard, publicize and popularize knowledge of eugenics and disability prevention,  formulate laws and regulations 
dealing with disability-causing factors such as heredity, diseases, medical poisoning, accidents, calamity and environmental pollution 
and adopt measures to prevent the occurrence and aggravation of disabilities by organizing and mobilizing social forces.  

Article 12   Governments and departments concerned shall award those disabled persons who make notable achievements in
socialist construction and those units or individuals who make remarkable contributions to safeguarding the lawful rights and interests
of, promoting undertakings for, and providing service to, disabled persons.  

     

Chapter  II 

Rehabilitation 

Article 13  The State and society shall adopt measures of rehabilitation to help disabled persons regain normal functions or
compensate for lost functions, thus enhancing their ability to participate in social life.  

Article 14  The work of rehabilitation shall, proceeding from the actual conditions, combine modern rehabilitation techniques
with traditional Chinese techniques, with rehabilitation institutions at the core and the community as the base and relying on the
families of disabled persons for support. Emphasis shall be laid on rehabilitation projects which are practical, easy to realize
and widely beneficial. Efforts shall also be made in the research, exploration and application of new rehabilitation technology so
as to provide more effective rehabilitation service to disabled persons.  

Article 15  The  governments and departments concerned should  establish in a planned way medical rehabilitation departments
(sections) in hospitals, set up appropriate special institutions of rehabilitation and carry out clinical practice and training,
scientific research, personnel training and work of technical guidance in the field of rehabilitation.  

The people’s governments and departments concerned at various levels shall organize and guide urban and rural community service networks,
medical prevention and health care networks, organizations and families of disabled persons and other social forces in carrying out
community-based rehabilitation work.  

Departments of education, welfare enterprises and institutions and other service organizations for disabled persons shall create
conditions for rehabilitation training activities.  

Disabled persons, with guidance from professional personnel and help from relevant staff, volunteers and family members, should 
actively take part in training programmes for functional recovery, and acquiring self-care ability  and  work skills.  

The State Council and departments concerned shall determine priority rehabilitation projects in different phases, formulate plans
thereof  and organize forces for their implementation.  

Article 16  Medical colleges and schools and other relevant educational institutes shall, in a planned way, offer courses and
specialties on rehabilitation so as to train various kinds of special personnel for rehabilitation work.  

The State and society shall provide various forms of technical training for personnel engaged in rehabilitation work, popularize
knowledge of rehabilitation among disabled persons, their family members, relevant staff and volunteers and teach them methods of
rehabilitation.  

Article 17  Governmental  departments concerned shall organize and support the research, production, supply and maintenance
of rehabilitation appliances, equipment for self-service, special articles and other auxiliary facilities for disabled persons.  
 

Chapter  III 

Education 

Article 18  The State shall guarantee the right of disabled persons to education.  

People’s governments at various levels shall make education of disabled persons a component of the State educational programme, strengthen
leadership in this respect and include it in their overall planning.  

The State, society, schools and families shall provide compulsory education to disabled children and juveniles.  

The State shall exempt disabled students who accept compulsory education from tuition and reduce fees or exempt them from fees in
the light of actual conditions. The State shall offer grants to aid students who are poor and disabled.  

Article 19  The education of disabled persons shall be  carried out according to  their physical and psychological
features and needs  and shall meet the following requirements:  

(1) Strengthen physical and psychological compensation and vocational and technical training while providing ideological and cultural
education;  

(2) Adopt normal or special methods of education according to different categories of disability and varied abilities of response;
and  

(3) The curricula, teaching materials and methods  for special education  and the age requirement for admission and schooling
may be determined with appropriate flexibility.  

Article 20  The principle of combining popularization with upgrading of quality  shall be implemented in education of disabled
persons, with emphasis on the former. Priority shall be given to compulsory education and vocational and technical education while
efforts shall be made to  carry out preschool education and gradually develop education at and above the senior middle school
level.  

Article 21  The State shall set up educational institutions for disabled persons and encourage social forces to run schools
and donate funds for schools.  

Article 22  Ordinary educational institutions shall provide education to disabled persons who are able to respond to ordinary
education.  

Ordinary primary schools and junior middle schools must admit disabled children or juveniles who are able to adapt themselves to
life and study there; ordinary senior middle schools, secondary polytechnic schools, technical schools and institutions of higher
learning  must admit disabled students who meet the state admission requirements  and shall not deny their admission for
their disabilities; in case of such denial, the disabled student, his/her family members or guardian may appeal to the relevant authorities
for disposition. The relevant authorities shall instruct the  school concerned to accept the student.  

Ordinary institutions of preschool education shall admit disabled children who are able to adapt themselves to the life there.  

Article 23  Preschool education institutions for the disabled, classes for disabled children attached to ordinary preschool
education institutions, preschool classes of special education schools, welfare institutions for disabled children and families of
disabled children shall be responsible for preschool education of disabled children.  

Special schools at or below junior middle school level and special classes attached to ordinary schools shall be responsible for
the implementation of compulsory education for disabled children and juveniles who are not able to respond to ordinary education.
 

Special schools and special classes attached to ordinary schools at or above senior middle  school level as well as institutions
of vocational and technical education for disabled persons shall be responsible for providing cultural education at or above senior
middle school level and vocational and technical education for eligible disabled persons.  

Article 24  Governmental departments concerned, units where disable persons work and society shall carry out anti-illiteracy
education, vocational training and other forms of adult education for disabled persons and encourage them to tap their talents through
self-studies.  

Article 25  The State shall systematically set up various forms of normal schools and specialties for special education at different
levels  and special education classes (departments) attached to ordinary normal schools to educate and train teaching staff
for special education. Ordinary normal schools shall offer courses or lectures on special education so that teachers in ordinary
education may  have some necessary knowledge of special education.   

Teachers of special education and sign language interpreters shall enjoy allowances for special education.  

Article 26  Governmental departments concerned shall organize and support the research and application of braille and sign language,
the compilation, writing and publication of  special education teaching materials and the research, production and supply of
teaching apparatus and other auxiliary facilities for special education.    

Chapter  IV 

Employment 

Article 27  The State shall guarantee disabled persons’  right to work.  

People’s governments at various levels shall formulate overall plans for employment of disabled persons and create conditions for
their employment.  

Article 28  Employment of disabled persons shall follow the principle of combining collective arrangement with individual arrangement.
Preferential policies and measures of support and protection shall be adopted with a view to  gradually popularizing, stabilizing
and rationalizing employment of disabled persons through multiple channels, at various levels and in a variety of forms.  

Article 29  The State and society shall set up welfare enterprises for disabled persons, workers sanatoria, massage therapy
centres and other enterprises and institutions of welfare nature as a way of providing concentrated  employment for disabled
persons.  

Article 30  The State shall promote the employment of  disabled persons by various units. People’s governments at all levels
and departments concerned shall organize and provide guidance in this regard. State organs, public organizations, enterprises, institutions
and urban and rural collective economic organizations shall employ  a certain proportion of disabled persons in appropriate
types of jobs and posts. The specific ratio may be determined by the people’s governments of provinces, autonomous regions and municipalities
directly under the Central Government in line with their actual conditions.  

Article 31  Governmental departments concerned shall encourage and assist disabled persons to find employment through voluntary
organization or to open individual business.  

Article 32  Local people’s governments at various levels and rural grassroots organizations shall organize and support disabled
persons in rural areas to engage in crop planting, animal breeding, handicraft industry and other forms of production.  

Article 33  The State shall implement the policy of tax reduction or exemption in relation to welfare enterprises and institutions
for disabled persons and self-employed disabled workers in urban and rural areas, and provide assistance in production, management,
technology, funds, materials supply, working sites and other fields.  

Local people’s governments and departments concerned shall determine the types of products suitable for production by disabled persons,
give priority to the production of such products by welfare enterprises for disabled persons and gradually determine which products
are to be produced exclusively by such enterprises.  

Governmental departments concerned shall, in determining the quota for employing and engaging workers and staff members, allot a
certain proportion of the quota to disabled persons.  

Departments concerned shall, in verifying and issuing business licenses, give priority to disabled persons who apply for licenses
as self-employed workers or businessmen and give them preferential treatment in  allotting work sites and loans  and in
other ways.  

Departments concerned shall provide assistance to disabled persons engaged in various kinds of labour in rural areas by way of production
services, technical guidance, supply of materials for agricultural use, collection and purchase of farm and sideline products and
loans.  

Article 34  The State shall protect the property ownership and the managerial decision-making power of welfare enterprises and
institutions for disabled persons, whose lawful rights and interests shall not be violated.  

No discrimination shall be practised against disabled persons in employment, engagement, status regularization, promotion, determining
technical or professional post_titles, payment for labour, welfare, labour insurance or in other aspects.  

No enterprises or institutions shall deny disabled graduates assigned by the State from institutions of higher learning, polytechnic
schools or technical schools solely on the ground of their disabilities; in case of such denial, the disabled graduates may appeal
to departments concerned for disposition and the relevant departments shall instruct the  enterprises or institutions concerned
to accept the said graduate students.  

Enterprises and institutions where disabled persons work shall provide the disabled workers with appropriate working conditions and
labour protection.  

Article 35  Enterprises and institutions where disabled persons work shall provide in-service  technical training to disabled
employees with a view to upgrading their skills and techniques.    

Chapter V 

Cultural Life 

Article 36  The State and society shall encourage and assist disabled persons to participate in various cultural, sports and
recreative activities and strive to meet the needs of the spiritual and cultural life of disabled persons.       

Article 37  Cultural, sports and recreative activities for disabled persons should be directed at grassroots levels, integrated
in public cultural life and geared to the different characteristics and needs  of different categories of disabled persons with
a view to bringing about extensive participation.  

Article 38  The State and society shall adopt the following measures to enrich the spiritual and cultural life of disabled persons:
 

(1) Reflect the life of disabled persons through radio, film, television, press and periodicals, books and other media in the interests
of disabled persons.  

(2) Organize and support the compilation, writing and publication of braille books, audio materials for the blind and reading materials
for the deaf and mentally retarded; offer TV programmes in sign language and put in subpost_titles or narrations in some movies and TV
programmes.  

(3) Organize and support disabled persons for mass cultural, sports and recreative activities, and in staging special art performances,
holding special sports meets and participating in major international sports games and exchanges; and  

(4) Provide facilities and accommodations for disabled persons at places of cultural, sports, recreative and other public activities
and set up in a planned way activity centres for disabled persons.  

Article 39  The State and society shall encourage and assist disabled persons to engage in creative work beneficial to the people,
such as in literature, art, education, science and technology.    

Chapter VI 

Welfare 

Article 40  The State and society shall adopt supportive, relief and other welfare measures to secure and improve the life of
disabled persons.  

Article 41  The State and society shall provide relief and subsidies through various channels to disabled persons with real
financial difficulties.  

The State and society shall foster and provide relief, in accordance with relevant regulations, to disabled persons without work
capabilities, or legal fosterer, or financial resource.  

Article 42  Units where disabled persons work, urban and rural grassroots organizations and families of disabled persons should
encourage and assist disabled persons to join social insurance.  

Article 43  People’s governments at various levels and the society shall establish welfare centres and other placement and foster
institutions, settle and foster disabled persons in accordance with relevant regulations and gradually improve their living standards.
 

Article 44  Agencies of public services shall provide preferential and auxiliary services to disabled persons.  

In taking public transport vehicles, disabled persons  shall be given convenience and special consideration; they shall be permitted
to carry on board their  indispensable and auxiliary facilities free of charge.  

Blind persons may take local buses, trolleybuses, subways and ferries free of charge. Mailing and delivery of braille books shall
be free of charge.   

People’s governments at county and township levels shall, in line with the actual conditions, reduce or exempt disabled persons in
rural areas from obligatory labour, public utilities fees and other social obligations.  

People’s governments at various levels shall step by step increase their care and support for the disabled.     

Chapter  VII 

Environment 

Article 45  The State and society shall step by step create a sound  environment to improve the conditions for disabled
persons to participate in  social life.  

Article 46  The State and society shall gradually regularize the design of urban roads and buildings to the convenience of disabled
persons and adopt barrier-free measures.  

Article 47  The State and society shall promote mutual understanding and exchanges between disabled persons and their fellow-citizens,
publicize undertakings for disabled persons and deeds of assisting disabled persons, promulgate the unyielding spirit of disabled
persons and foster a social environment of unity, fraternity and mutual assistance.  

Article 48  The third Sunday of May each year is the National Day of Assisting Disabled Persons.    

Chapter  VIII 

Legal Liabilities 

Article 49   Where the lawful rights and interests of disabled persons are violated, the offended persons or their agents
shall have the right to appeal to the competent authorities for disposition, or institute lawsuits at people’s courts in accordance
with law.  

Article 50   Where government functionaries neglect their duties, in violation of law, and infringe upon the lawful rights
and interests of disabled persons, the units to which they belong  or their higher authorities shall instruct such persons to
correct their wrong doings or subject them to administrative sanctions.  

Article 51   Whoever infringes upon the lawful rights and interests of a disabled person and causes property or other losses
or damage shall compensate for the losses or damage according to law or bear other civil liabilities. 

Article 52  Whoever infringes upon the right of person or other lawful rights of disabled persons by taking advantage of their
disabilities and constitutes a crime shall be given a heavier punishment in accordance with the relevant provisions of the Criminal
Law.  

Whoever, by violence or other means, publicly insults disabled persons, shall, if the circumstances are serious, be investigated
for criminal responsibility in accordance with the provisions of Article 145 of the Criminal Law, and, if the circumstances are less
serious, be subject to punishment in accordance with the provisions of Article 22 of the Regulations on Administrative Penalties
for Public Security.  

Whoever maltreats disabled persons shall be punished in accordance with the provisions of Article 22 of the Regulations on Administrative
Penalties for Public Security; and, if the circumstances are flagrant, he shall be investigated for criminal responsibility in accordance
with the provisions of Article 182 of the Criminal Law.  

Whoever refuses to perform his  duty of fostering a disabled person who is unable to live independently, shall, if the circumstances
are flagrant, or if he abandons such a disabled person, be investigated for criminal responsibility in accordance with the provisions
of Article 183 of the Criminal Law.  

Whoever has illicit sexual relations with a disabled person who is unable to account for her own conduct due to mental retardation
or mental disorder shall be deemed to have  committed rape and shall be investigated for criminal responsibility in accordance
with the provisions of Article 139 of the Criminal Law.     

Chapter IX 

Supplementary Provisions 

Article 53  Departments concerned under the State Council shall formulate relevant regulations in accordance with this Law and
submit them to the State Council for approval before implementation.  

The standing committees of the people’s congresses of provinces, autonomous regions and municipalities directly under the Central
Government may formulate measures of implementation in accordance with this Law.  

Article 54  This Law shall enter into force as of May 15, 1991.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.






CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING PORT SUPPLY TO FOREIGN AND CHINESE OCEANGOING VESSELS

Category  COMMUNICATIONS AND TRANSPORT Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1992-01-08 Effective Date  1992-01-08  


Circular of the General Office of the State Council Concerning Port Supply to Foreign and Chinese Oceangoing Vessels



(January 8, 1992)

    With the rapid development of China’s economy and foreign trade, the
amount of foreign and Chinese oceangoing vessels entering and leaving our
ports increases with each passing day, which makes the port supply of ship’s
materials and provisions an ever heavier burden. The State Council has paid a
considerable attention to this work, and has formulated explicit regulations
in this regard. However, problems of price confusion, loss of foreign exchange
and violations of the law and discipline have arisen time and again in the
work of port supply owing to the meddling of different quarters in this
service during recent years. With a view to further improving port supply, it
is hereby noticed with the consent of the State Council as follows:

    1. Ports are windows of China’s opening  to  the outside world. It is of
great economic and political significance to do well the work of ship’s supply
and receiption of foreign and Chinese seamen. For this reason, the people’s
governments of the localities where the ports are situated and the relevant
departments of the State Council shall, proceeding from the general situation,
accomplish this work satisfactorily in harmonious cooperation through earnest
efforts.

    2. The supply of the materials required by Chinese and foreign vessels is
a foreignrelated task, which shall be properly centralized. Except the foreign
ships supply companies of the commercial system (hereinafter referred to as
the foreign ships supply companies) and the supply stations (companies) of the
China Ocean Shipping Company, none of the non-designated supply units
(including port labour services) and individuals may engage in the service of
supplying materials and provisions for Chinese and foreign ships.

    3. After several decades’ build-up, the foreign ships supply companies
have laid a good foundation of manpower and material resources and accumulated
much experience in the work of supply. In future, the foreign ships supply
companies shall still function as the principal channel in supplying the
materials needed by Chinese and foreign ships at ports. In the meantime, the
foreign ships supply companies shall further improve their operation and
management, constantly raise their efficiency and enhance the quality of their
service so as to make the supply work better cater to the needs of the opening
to the outside world and the development of ocean shipping.

    4. The China Ocean Shipping Company’s businesses of supplying materials
and provisions at the ports of Guangzhou, Shanghai, Tianjin, Qingdao and
Dalian, and forwarding the same to the China Ocean Shipping Company ships in
long service overseas is beneficial to the strengthening of the enterprise’s
own management and the raising of its economic benefits. The China Ocean
Shipping Company may continue to supply materials and provisions at the five
major ports and forward the same to its ships abroad, but this shall be
confined to the China Ocean Shipping Company’s vessels. As to whether the
provisions supply service shall cover Lianyungang, Zhanjiang, Qinhuangdao and
other ports shall be determined by the State Planning Commission through
consultation with the departments concerned in light of the development of the
China Ocean Shipping Company’s fleet.

    5. The foreign ships supply companies and supply stations (companies)
under China Ocean Shipping Company shall implement conscientiously the rules
and regulations of the State governing commodity prices,  tax revenue and
foreignexchange control,  and enhance mutual support and cooperation in their
business so as to accomplish jointly the task of supplying ships at ports. The
China Ocean Shipping Agency (PENAVICO) shall, in accordance with the relevant
provisions, render conscientious and enthusiastic services to the ships
engaged in international marine transport at ports.

    6. The people’s governments in the localities where the ports are situated
shall instruct the departments concerned to formulate corresponding
port-management measures to tackle the problems existing in the material
supply in the port areas comprehensively. The control on ships operating at
ports as well as men and vehicles entering the ports shall be strengthened,
and illegal activities such as black-marketing of foreign exchange,
prostitution, whore-visiting and unlawful business operations shall be
resolutely combated and banned. Anyone that has violated the criminal laws
shall be handed over to the judicial organs for punishment.





MEASURES OF THE CUSTOMS OFFICE CONCERNING ADMINISTRATION OF GOODS, MEANS OF TRANSPORT, ARTICLES CARRIED BY INDIVIDUALS AND POSTAL ARTICLES LEAVING OR ENTERING THE YANGPU ECONOMIC DEVELOPMENT ZONE OF HAINAN PROVINCE

Category  CUSTOMS Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1992-07-27 Effective Date  1992-07-27  


Measures of the Customs Office of the People’s Republic of China Concerning Administration of Goods, Means of Transport, Articles
Carried by Individuals and Postal Articles Leaving or Entering the Yangpu Economic Development Zone of Hainan Province

Chapter I  General Provisions
Chapter II  Administration of Import and Export Goods and
Chapter III  Administration of Goods Coming and Going between
Chapter IV  Administration of Means of Transport Entering or
Chapter V  Administration of Articles Carried by Individuals
Chapter VI  Supplementary Provisions

(Approved by the State Council on July 7, 1992, promulgated

by Decree No.32 of the General Administration of Customs on
July 27, 1992)
Chapter I  General Provisions

    Article 1  These Measures are formulated in accordance with
the Customs Law of the People’s Republic of China and the
provisions of other relevant laws and regulations promulgated by
the state in order to promote the construction in Yangpu Economic
Development Zone (hereinafter referred to as the Development
Zone) and develop the export-oriented economy.

    Article 2  The Development Zone is under the supervision and
administration of Customs, and Customs shall carry out the tasks
of supervision and administration in the Development Zone in
accordance with the law. A closed and separate installation shall
be established between the Development Zone and non-development
areas (i.e. other areas within the territory of China, the same
below).

    Article 3  Enterprises in the Development Zone shall present
valid certificates issued by the administrative department in the
Development Zone to Customs for registration.

    Article 4  Goods, means of transport, articles carried by
individuals and postal articles which enter or leave the
Development Zone must go through the channel designated by
Customs. The consignee and consignor of the goods, the owner of
the articles, the person in charge of the means of transport and
their agents shall make truthful declarations to Customs, fill in
the declaration form for import and export commodities in
accordance with provisions, present the relevant documents and
agree to inspections by Customs.

    Article 5  Goods imported by the Development Zone shall be
used only in the Development Zone; these goods are strictly
forbidden to be transferred or sold to non-development areas
without approval. Products produced in the Development Zone are
in principle for export.

    Article 6  Goods and articles for which import or export is
forbidden by the state shall not be brought into or out of the
Development Zone.

    Article 7  Enterprises in the Development Zone shall, in
accordance with the provisions of relevant laws and regulations,
establish accounting headings, account books and report forms,
and shall fill in the report forms regularly and submit them to
Customs for examination and verification.

    Article 8  Customs is enpost_titled to inspect, in accordance with
the provisions of Customs Law of the People’s Republic of China,
the persons, the means of transport, and relevant locations in
the Development Zone, who or which are suspected of being
involved in smuggling.
Chapter II  Administration of Import and Export Goods and
Preferential Treatment in Taxation

    Article 9  Import or export licenses shall not be required
for the following cases: the importation into the Development
Zone of machinery, equipment, goods and materials for capital
construction, motor vehicles for production, means of transport,
and articles for office use which are to be used within the
Development Zone; importation into the Development Zone of raw
and processed materials, spare and component parts, primary
parts, fuels, and packaging supplies needed for processing export
products in the Development Zone; transit goods; the importation
into the Development Zone of consumption goods and materials to
be sold in markets within the Development Zone; and products
processed in the Development Zone and destined for export.

    Article 10  Customs duty and consolidated industrial and
commercial taxes (product taxes or value-added taxes) on import
and export goods of the Development Zone shall be handled in
accordance with the following provisions:

    (1) The machinery, equipment and goods and materials for
capital construction needed to be imported for the construction
of infrastructure in the Development Zone shall be exempted from
duty;

    (2) The construction and repair materials, production and
administration equipment, fuels necessary for production and
operation, a reasonable number of motor vehicles necessary for
production, other means of transport, articles for office use and
spare parts and fittings needed for the maintenance of the
aforesaid machinery, equipment and motor vehicles which are
imported by enterprises in the Development Zone for their own use
shall be exempted from duty;

    (3) A reasonable quantity of means of transport, articles for
office use and equipment for administration imported by
administrative departments or institutions in the Development
Zone for their own use shall be handled in accordance with the
provisions of Item 2 of this Article;

    (4) Imported goods and materials covered in Items 1, 2 and 3
which are necessary for the operation of transportation,
communications, real estate, commercial business, catering trades
and other service trades in the Development Zone shall be
exempted from duty;

    (5) Goods imported within the specified quotas and variety by
state-operated duty-free stores established with the approval of
the competent authority of the state shall be exempted from duty;

    (6) Transit goods, raw and processed materials, spare and
components parts, primary parts and packaging supplies imported
by enterprises in the Development Zone for production of export
products shall be held in bond;

    (7) Consumption goods and materials imported by the
Development Zone for supply to markets in the Zone shall be
allowed a 50 percent reduction of duty, excepting imported
tobacco and liquor, which shall be subject full duty; and

    (8) The exportation of products produced in the Development
Zone shall be exempt from export duty.

    Article 11  Goods for entrepot trade in the Development Zone
shall be stored in warehouses or sites designated by Customs and
shall be subject to the supervision and administration of
Customs. Transit goods, with the approval of Customs, may undergo
simple processing in warehouses, such as grading, selecting,
pasting labels and changing packaging.
Chapter III  Administration of Goods Coming and Going between
the Development Zone and Non-Development Areas

    Article 12  Goods coming and going between the Development
Zone and non-development areas shall be treated as imported and
exported goods that shall be declared at Customs by the consignee
or consignor and be subject to the inspection of Customs.

    Article 13  The building materials, construction machinery
and consumption goods for daily use supplied to the Development
Zone by non-development areas shall, upon entering the
Development Zone, be examined and approved by Customs and be
subject to the supervision and administration of Customs.

    Article 14  Where any products produced in the Development
Zone are to be sold to non-development areas, or any goods
imported by the Development Zone are to be transported to non-
development areas, approval from Customs shall be obtained and
the specified approval certificates shall be presented to Customs
for examination. Customs shall go through formalities in
accordance with relevant provisions.

    Article 15  If any materials or components imported by
enterprises in the Development Zone are to be transported to non-
development areas for processing for export-oriented finished
products, approval from Customs shall be obtained.

    If any enterprises in non-development areas wish to transport
materials or components to the Development Zone for processing by
enterprises therein, they shall go through the appropriate
Customs procedures. If there is a need to use or expend the
imported materials or components of enterprises in the
Development Zone, it shall be submitted to Customs for approval.
If the said imported materials or components are to be
transported from the Development Zone, relevant import
formalities shall be completed.

    Article 16  Finished products produced or assembled by
enterprises in the Development Zone with duty-free imported raw
or processed materials, spare and component parts or primary
parts may be allowed a 50 percent reduction of duties if they are
to be sold within the Development Zone; where said products are
approved for transport to non-development areas, duties shall be
either exempted or levied by Customs in accordance with relevant
provisions. In the event that the consignors or their agents
cannot submit an accurate report on the names, quantities and
values of the imported materials or components contained in the
products composed of imported materials, Customs shall consider
the products as imported and levy duties as such.

    Article 17  Goods imported and exported by non-development
areas via the Development Zone shall be subject to the
supervision and administration of Customs. They shall be
administered in accordance with Customs’ provisions concerning
the transport of goods from one place with a Customs
establishment to another, and shall go through the Development
Zone by a designated route within a period specified by Customs.
Chapter IV  Administration of Means of Transport Entering or
Leaving the Development Zone

    Article 18  Inward and outward means of transport of the
Development Zone shall be declared at Customs by the owners of
the means of transport or by their agents, and shall be subject
to the supervision, administration and inspection of Customs.

    Article 19  Means of transport running between the
Development Zone and non-development areas shall go through the
registration procedures with the approval certification issued by
the people’s government of Hainan province or other designated
competent authorities. Means of transport entering or leaving the
Development Zone shall be declared at Customs and be subject to
the inspection of Customs.
Chapter V  Administration of Articles Carried by Individuals
and Articles Sent by Post

    Article 20  Inward and outward articles carried by
individuals and inward and outward articles sent by post shall be
declared at Customs, and Customs shall, after examination and
inspection, give customs clearance according to relevant
provisions, except for those articles for which entry or exit is
forbidden by the state.

    Article 21  Articles carried along by individuals leaving the
Development Zone for non-development areas shall be declared at
Customs, and be subject to the inspection of Customs. Customs shall
act in accordance with the measures for the supervision and
administration of luggage and articles carried by travelers
entering or leaving the country.

    Articles posted by individuals from the Development Zone to
non-development areas shall be handled by Customs acting in
accordance with the measures for the supervision and
administration of postal articles entering or leaving the country.
Articles for which import is restricted by the state may not be
posted from the Development Zone to other areas.
Chapter VI  Supplementary Provisions

    Article 22  Supervision charges for bonded goods or goods for
which customs duties have been reduced or exempted that have been
imported into the Development Zone shall be handled in accordance
with the Measures of the Customs of the People’s Republic of
China Concerning the Collection of Customs Supervision Charges
for Bonded Goods or Goods for Which Customs Duties Have Been
Reduced or Exempted.

    Article 23  Smuggling and other violations of Customs’
provisions shall be dealt with by Customs in accordance with
provisions of the Customs Law of the People’s Republic of China
and other relevant laws and regulations. Those in violation of
the Criminal Law shall be referred to judicial organs for
investigation of criminal responsibility.

    Article 24  Related matters which are not covered in these
Measures shall be handled in accordance with the relevant
existing provisions of Customs for the Hainan Special Economic Zone.

    Article 25  The date of implementation of these Measures shall
be determined by the General Administration of Customs after the
separate installations for the Development Zone have passed
inspection by Customs.

    Article 26  The Customs of Haikou shall formulate its
implementation rules according to these Measures and implement
the rules after they have been submitted to and approved by the
General Administration of Customs.

    Article 27  The General Administration of Customs shall be
responsible for interpreting these Measures.





REGULATIONS FOR THE IMPLEMENTATION OF INTERNATIONAL COPYRIGHT TREATIES

Regulations for the Implementation of International CopyrightTreaties

     (Promulgated on September 25, 1992)

Whole Doc.

   Article 1

These Regulations are formulated in order to implement international

copyright treaties and to protect the lawful rights and interests of owners of copyrights in foreign works.

   Article 2

The protection of foreign works shall be governed by the PRC

Copyright Law (the Copyright Law), the PRC Copyright Law Implementing Rules, the Computer Software Protection Regulations
and these Regulations.

   Article 3

The term “international copyright treaties” as used in these

Regulations shall refer to the Berne Convention for the Protection of

Literary and Artistic Works (the Berne Convention) acceded to by the PRC

and bilateral copyright agreements entered into with foreign countries.

   Article 4

The term “foreign works” as used these Regulations shall include the

following:

(1) works, of which the author or one of the authors, or the owners

or one of the owners of the copyright, is a national of a country that is

a member of an international copyright treaty or a resident of such member

country with habitual residence in such member country;

(2) works that are not authored by a national of a country that is a

member of an international copyright treaty or by a resident of such

member country with habitual residence in such member country, but that

are first or simultaneously published in such member country; and

(3) works, the creation of which was commissioned to another party by

a Sino-foreig n equity joint venture, a Sino-foreign cooperative joint

venture or a wholly foreign owned enterprise, and for which a contract

provides that such joint venture or enterprise is the owner or one of the

owners of the copyright.

   Article 5

Articles 20 and 21 of the Copyright Law shall apply to the term of

protection of unpublished foreign works.

   Article 6

The term of protection of foreign works of applied art shall be 25

years from the completion of such works.

The preceding paragraph shall not apply to works of fine art

(including designs of animated cartoon imaged) used on industrial

products.

   Article 7

Foreign computer programs shall be protected as literary works and

shall not require registration. The term of protection shall be 50 years

from the end of the year of first publication of such a program.

   Article 8

Foreign works that are a compilation of unprotected material but that

are original in terms of the selection or arrangement of the material

shall be protected under Article 14 of the Copyright Law. Such protection

shall not exclude others from using the same material for a compilation.

   Article 9

Foreign video recordings that under international copyright treaties

constitute cinematographic works shall be protected as cinematographic

works.

   Article 10

Where a foreigner has created and published a work in the language of

the Han nationality, the publication and distribution of a translation of

such work into the language of a minority nationality shall be subject to

prior authorization of the copyright owner.

   Article 11

Owners of copyright in foreign works may authorize others publicly to

perform their works, or to communicate to the public the performance of

their works, by any means or process.

   Article 12

Owners of copyright in foreign cinematographic, television and video

recording works may authorize others to publicly p erform their works.

   Article 13

Reproduction by the press of foreign works shall be subject to prior

authorization of the copyright owners, except in the case of reproduction

of articles on current social topics such as political and economic

issues.

   Article 14

After owners of copyright in foreign works have authorized other

persons to distribute copies of their works, they may authorize or

prohibit the rental of copies of their works.

   Article 15

The owner of the copyright in a foreign work shall have the right to

prohibit import of the following reproductions of his work:

(1) infringing copies; and

(2) reproductions coming from a country where the work is not

protected.

   Article 16

The performance, recording or broadcasting of foreign works shall be

governed by the Berne Convention. Where collective administration

organizations exist, prior authorization shall be obtained from such

organizations.

   Article 17

Foreign works that have not yet fallen into the public domain in the

country of origin on the date of the international copyright treaty coming

into force in China, shall be protected until the expiry of the term of

protection provided for in the Copyright Law and these Regulations.

The provisions of the preceding paragraph shall not apply to the use

of foreign works prior to the date of the international copyright treaty

coming into force in China.

Chinese citizens or legal persons that owned and used particular

reproductions of foreign works for particular purposes prior to the

international copyright treaty coming into force in China, may continue to

use the reproductions of such works without liability, provided that such

reproductions are neither reproduced nor used in any way that would

unreasonably prejudice the legitimate rights and interests of the owners

of copyright in the works.

The provisions of the preceding 3 paragraphs shall be implemented in

accordance with the relevant bilateral copyright agreements between China

and the relevant countries.

   Article 18

Articles 5, 12, 14, 15 and 17 of these Regulations shall apply to

products of sound recordings.

   Article 19

In the event of any discrepancies between these Regulations and

administrative laws and regulations concerning copyright that were

promulgated prior to the implementation of these Regulations, these

Regulations shall prevail. In the event of any discrepancies between these

Regulations and international copyright treaties, the international

copyright treaties shall prevail.

   Article 20

The State Copyright Administration shall be responsible for the

implementation of international copyright treaties in China.

   Article 21

The State Copyright Administration shall be responsible for the

interpretation of these Regulations.

   Article 22

These Regulations shall be implemented as of September 30, 1992.

    





PROCEDURES OF SHANGHAI MUNICIPALITY ON ENDOWMENT INSURANCE FOR TOWN EMPLOYEES

Procedures of Shanghai Municipality on Endowment Insurance For Town Employees

     CHAPTER I GENERAL PROVISIONS CHAPTER II ORGANIZATION CHAPTER III PAYMENT OF ENDOWMENT INSURANCE PREMIUMS CHAPTER IV ENJOYMENT OF ENDOWMENT
INSURANCE TREATMENT CHAPTER V USE AND ADMINISTRATION OF ENDOWMENT INSURANCE FUND CHAPTER VI SETTLEMENT OF DISPUTES AND PUNISHMENT
CHAPTER VII SUPPLEMENTARY PROVISIONS

   Article 1 In order to guarantee the basic needs of life after retirement for town employees, these Procedures are formulated in accordance
with the Plan of Shanghai Municipality for the Implementation of Reform of Endowment Insurance System for Town Employees.

   Article 2 The endowment insurance as defined in these Procedures refers to the social security system, set up through legal procedures, organized
and controlled by the competent government department, under which units and employees have the mutual obligation to pay endowment
insurance premiums, and retirees enjoy basic endowment insurance treatment according to the payment of premiums for endowment insurance.

   Article 3 These Procedures shall apply to town administrative agencies, enterprises and institutions (hereinafter referred to as units), and
employees and retirees of these units.

These Procedures shall not apply to aliens in foreign-invested enterprises or units and personnel otherwise stipulated by the State.

   Article 4 The endowment insurance follows the principles of sharing expenses among the State, units and individuals, combining individual savings
with unified planning and mutual aid, and combining guaranty of the basic needs of life for retirees with stimulation of the initiative
of employees.

Units have the obligation to pay endowment insurance premiums for their employees while employees have the obligation to pay insurance
premiums for themselves.

An employee’s rights to have his/her unit pay endowment insurance premiums and to enjoy endowment insurance treatment after retirement
are protected by the law and no infringement of these rights by any unit or individual is allowed.

   Article 5 The reform of this Municipality’s endowment insurance system aims at phasing in a multi-layer endowment insurance system. In addition
to the endowment insurance stipulated in these Procedures, unit supplementary endowment insurance shall be phased in units whose
conditions permit, and the employees who can afford it shall be encouraged to carry individual savings endowment insurance.

   Article 6 This Municipality shall set up the Municipal Social Insurance Committee that is responsible for the examination of the development
plan of endowment insurance, the study and decision of major policies on endowment insurance, and the plan for maintaining or raising
the value of endowment insurance fund.

   Article 7 The Municipal Social Insurance Administration is responsible for the administration of endowment insurance of this Municipality.
Its functions are:

1. To organize the implementation of endowment insurance system;

2. To prepare the development plan of endowment insurance;

3. To draft local laws and regulations on endowment insurance;

4. To formulate, jointly with relevant departments, the financial, accounting, statistical and internal auditing systems for endowment
insurance fund;

5. To supervise the collection of endowment insurance premiums, the disbursement of pensions, and the operation of endowment funds
for its appreciation;

6. To direct the work of endowment insurance management centers at the municipal, district and county levels; and

7. To execute the decisions of the Municipal Social Insurance Committee.

   Article 8 Endowment insurance industry management centers are the agencies that undertake the routine business about endowment insurance. Their
functions are:

1. To take charge of the collection of endowment insurance premiums and the payment of pensions;

2. To manage individual endowment insurance accounts;

3. To answer inquiries about endowment insurance from units, employees and retirees; and

4. To handle other matters commissioned or authorized by the Municipal Social Insurance Administration.

CHAPTER III PAYMENT OF ENDOWMENT INSURANCE PREMIUMS

   Article 9 All units referred to in Paragraph 1, Article 3 of these Procedures shall register endowment insurance for the units and their employees
in the endowment insurance administrative center designated by the Municipal Social Insurance Administration. Newly-established units
shall complete the procedures of endowment insurance registration within 1 month from the date of their establishment.

When a unit is divided or merged, goes bankrupt or is shut down, and recruits or dismisses employees (including resignation, unauthorized
quit, discharge, and removal), the unit shall, within 1 month, go through the formalities for alteration or cancellation of the endowment
insurance registration with the endowment insurance management center that handled the registration.

When registering endowment insurance, the endowment insurance management center shall set endowment insurance codes for units, open
individual endowment insurance accounts for employees and issue Endowment Insurance Books.

   Article 10 An employee’s individual endowment insurance account shall remain unchanged for life. The Endowment Insurance Book must be used for
recording the employee’s successive working years before the implementation of these Procedures and the savings amount in his individual
endowment insurance account after the implementation of these Procedures, which are the basis for computing pensions granted upon
retirement.

When an employee changes his/her work unit, the Endowment Insurance Book must be transferred with the employee accordingly.

   Article 11 Units and employees shall pay monthly endowment insurance premiums within the prescribed time limit. No delay or failure of payment
nor underpayment is allowed.

   Article 12 A unit shall pay endowment insurance premium at the rate of 25.5% of the total amount of wages paid to all its employees in the preceding
month.

An employee shall pay endowment insurance premiums at the rate of 3% of his/her monthly average wage in the previous year, which is
to serve as the payment base. If an employee’s monthly average wage in the previous year is over 200% of those of the employees of
the whole city in the previous year, the excess above the 200% shall not be included in the base for premium payments. In case the
average monthly wage of an employee in the previous year is below 60% of those of the employees in the whole city in the previous
year, 60% of the monthly average wages of the employees in the whole city in the previous year shall be used as the payment base.

The same approach must be taken to computing the payment base of endowment insurance premium for units and for employees.

The adjustment of the rates of endowment insurance premium paid by units and employees shall be proposed by the Municipal Social Insurance
Administration and reported to the Municipal Social Insurance Committee for decision.

   Article 13 The endowment insurance premiums paid by units shall be entered as expenditures through the following channels:

1. Entered as expenditures before tax for enterprises and institutions that balance their revenue and expenditures by themselves;
or

2. Entered as administrative expenses or operating expenses for administrative agencies and institutions with total or differential
budget.

   Article 14 The endowment insurance premiums shall be paid in the following ways:

1. A unit shall withhold the endowment insurance premiums to be paid by employees from their monthly wages. The deduction from an
employee’s wages for endowment insurance premium may be exempt from individual income tax.

2. A unit shall go to the endowment insurance management center at regular time every month to verify the endowment insurance premiums
to be paid by the unit and its employees and pay the full amount as verified.

   Article 15 The endowment insurance management center shall settle the savings amount in the individual endowment insurance account each year
and issue to each employee a statement of the endowment insurance premiums paid.

   Article 16 The endowment insurance premium to be entered in the individual endowment insurance account shall include:

1. The endowment insurance premium paid by the individual; and

2. The portion of endowment insurance premium paid by the unit, which is to be entered in the individual account;

a. The amount to be entered at certain rates (8% for enterprises and institutions that balance revenue and expenditures by themselves,
10% for administrative agencies and institutions with full budget and 9% for institutions with differential budget) of the employee’s
individual payment base (not more than 150% of the monthly average wages of the employees in the whole city in the previous year);
and

b. The amount to be entered at 5% of the monthly average wages of the employees in the whole city in the previous year.

The portion of the endowment insurance premiums paid by the unit, which is to be entered in the individual account, shall be adjusted
in proportion to the rise of the individual payment rate.

   Article 17 All the endowment insurance premiums paid by units must be used for social unified plannings except for the portion entered in the
individual endowment insurance account.

   Article 18 The interest on the savings amount entered in the individual endowment insurance account shall be computed at a rate not lower than
the bank interest rate for residents’ time deposits mature in one year’s time in the same period.

   Article 19 The endowment insurance fund shall be channeled to the financial special account under the city treasury for the independent social
security fund. The fund shall operate on two separate lines, the line of receipts and that of disbursement, which are to be put under
specialized management with the fund earmarked and used exclusively for its specified purpose.

CHAPTER IV ENJOYMENT OF ENDOWMENT INSURANCE TREATMENT

   Article 20 A retiree who is enpost_titled to endowment insurance treatment shall satisfy the following requirements at the same time:

1. The employee has reached the retirement age stipulated by the State or this Municipality;

2. The unit and the employee have paid endowment insurance premiums as stipulated; and

3. The employee employed before the implementation of these Procedures has 10 successive working years (including premium payment
years) or the employee employed after the implementation of these Procedures and has paid premiums for fifteen years.

The retiree who meets the above requirements may go through the formalities for drawing pensions with the endowment insurance management
center and draw pensions monthly upon verification and determination by the endowment insurance industry management center.

   Article 21 A jobless person who meets the requirement in Section 1 of Article 20 of these Procedures may go through the formalities for drawing
monthly pensions with the endowment insurance center.

   Article 22 A person who got employment before the implementation of these Procedures and has been working for more than 5 but less than 10 successive
years (including payment years) by the retirement age shall quit working. An employee who has 5 successive working years and is incapacitated
by illness or non-working related injury may quit working after being ascertained by the Labor Appraisal Committee as having totally
lost working ability.

A person who has quit working for the above reasons is enpost_titled to corresponding pension treatment as stipulated.

   Article 23 A person who got employment before the implementation of these Procedures with less than 5 successive years (including premium payment
years) or who got employment after the implementation of these Procedures and has paid premiums with less than 15 payment years may,
at the retirement age, apply to the endowment insurance industry management center for the payment of the total savings amount in
his/her individual endowment insurance account to be made to him/her and for the termination of his/her endowment insurance at the
same time.

   Article 24 The person who meets the pension-drawing requirements may draw pensions for life. When the savings amount in his/her individual endowment
insurance account is exhausted, the pension may be paid from the pool of unified social security funds.

   Article 25 After the death of an employee or retiree, the balance of the savings amount in his/her individual endowment insurance account paid
by himself/herself may be given in one lump sum to his/her heir determined through legal procedures.

   Article 26 The Municipal Social Insurance Administration may require pensioners to go through the check-up formalities with the endowment insurance
industry management center at regular time. The payment of pension may be suspended for failure to complete the check-up formalities.

When a retiree can not go through the check-up formalities because of going abroad, or out of border or for other reasons, he/she
must produce a certificate of his/her survival in accordance with relevant provisions of the State.

When a retiree can not draw his/her pension in person because of going abroad or out of border or for other reasons and has to entrust
someone else to draw pensions for him/her, a notarized power of attorney shall be presented.

   Article 27 The formula for computing the pension of the person who got employment after the implementation of these Procedures is:

Monthly pension = total savings in individual endowment insurance account/120

   Article 28 The monthly pension the person who got employment before the implementation of these Procedures and retired or quit working before
the end of 1995 shall first be computed by the said formula and then augmented with a certain percentage of the individual accumulated
payment. The augmentation shall be determined according to the following provisions:

1. The monthly pension shall be augmented with 11% for the person who retired and whose payment years plus his/her successive working
years before the implementation of these Procedures are 10 or more years but less than 15 years. On this base, a further increase
of every 5 years shall bring in a rise of 1 percentage point accordingly, but the augmentation shall not exceed the limit of 16%.

2. The monthly pension shall be augmented with 2% for the person who retired from an administrative agency or institution and whose
payment years plus his/her successive working years before the implementation of these Procedures are 10 or more years but less than
15 years. On this base, an increase of every 5 years shall bring in a rise of 1 percentage point accordingly, but the augmentation
shall not exceed the limit of 7%.

3. The monthly pension shall be augmented by 10% for the person who quits working from an enterprise and 1% for the person who quits
working from an administrative agency or institution.

The above-mentioned person who reaches retirement age in any month of the year shall pay the premium for 12 months in the current
year of his/her retirement and the pension shall be augmented according to the provisions in the preceding Section.

The preferential treatment enjoyed by retired veteran cadres, model workers, senior experts and those who can have an early retirement
as stipulated by the State shall be carried out according to the original provisions as before.

   Article 29 The savings amount in the individual endowment insurance account multiplied by a definite coefficient makes the savings amount for
the total working years for the person who got employment before the implementation of these Procedures and retires after January
1, 1996. The formula for computing his/her monthly pension is:

Monthly pension = savings amount in individual endowment insurance account x coefficient/120

When the pension computed according to the provision in the preceding Section is lower than the standard computed according to the
measure in Article 28 of these Procedures, the measure in Article 28 may be adopted to compute the pension instead.

   Article 30 The savings amount in the individual endowment insurance account must only be used to pay monthly retirement pensions and must not
be diverted to any other purposes.

When a pension is paid to an retiree, a corresponding deduction must be made from the savings amount in the individual endowment insurance
account according to the proportion of the amount paid by the individual to the amount paid by the unit.

   Article 31 The Municipal Social Insurance Committee shall set the lowest standard of retirement pension. In case the pension drawn by according
to the provisions is lower than the lowest standard, the pension may be granted according to the lowest standard.

The lowest standard of pension shall be adjusted with the economic development and the rising consumer price index of local residents.

   Article 32 The retirement pension shall be adjusted every year according to the extent of rise in the local residents’ consumer price index
in the previous year, which becomes effective on April 1 of the current year. The pension of the person who retires in the current
year shall be adjusted the following year. No adjustment is made when the local residents’ consumer price index drops from the previous
year.

   Article 33 This Municipality shall grant living allowances to retirees from time to time according to the national economic development and
the receipts and disbursement of the endowment insurance fund, and with reference to the employees’ actual wages. A special living
allowance may be granted additionally to retirees in special difficulties.

   Article 34 After the death of a retiree, a funeral allowance, grants for lineal dependents and relief benefits shall be paid according to the
relevant provisions of the State and this Municipality.

CHAPTER V USE AND ADMINISTRATION OF ENDOWMENT INSURANCE FUND

   Article 35 The sources of endowment insurance funds shall include:

1. Endowment insurance premiums paid by units and employees;

2. Income from the interest earned by endowment insurance fund;

3. Income from the operation of endowment insurance fund for its appreciation; and

4. Overdue fines collected according to the provisions of these Procedures.

   Article 36 The endowment insurance fund shall be mainly used to pay retirement pensions. When the fund is not enough to make payment, it shall
be subsidized by the local finance.

The endowment insurance fund shall be put under the centralized management of the Municipal Social Insurance Administration and be
earmarked and used exclusively for its specified purpose and must not be drawn on arbitrarily by any unit or individual.

   Article 37 The payments that can be made from the endowment insurance fund are:

1. Retirement pensions;

2. Funeral allowances, grants for lineal dependents, and relief benefits paid after the death of retirees according to the relevant
provisions of the State and this Municipality;

3. The balance of the part attributable to individual payment in the individual endowment insurance account to be given to the legal
inheritor(s) of the deceased employee or retiree; and

4. Living allowances granted under Article 33 of these Procedures.

The endowment insurance industry management center may draw a certain percentage of the endowment insurance premiums actually collected
as management fees upon approval by the Municipal Social Insurance Committee.

The management fees drawn according to the above Section shall be exempt from taxes or fees.

   Article 38 The endowment insurance fund may be put into operation for its appreciation on condition that the regular payment and its safety
are secured, but must not be used to make investment with long recovery period, great risks or of a speculative nature. The increment
included in the endowment insurance fund after operation shall be exempt from taxes or fees.

   Article 39 The Municipal Social Insurance Administration shall timely summarize, verify and report the use and management of the endowment insurance
fund to the Municipal Social Insurance Committee on regular basis or at the request of the latter.

   Article 40 A budget and final accounts must be made annually for the collection, payment and operation of the endowment insurance fund for its
appreciation.

   Article 41 The collection, payment and operation of the endowment insurance fund for its appreciation shall be supervised concurrently by the
public finance, and auditing departments and the financial regulatory departments.

   Article 42 The Municipality shall set up the endowment insurance fund supervisory organization, consisting of the governmental department concerned
and representatives of the social public, to supervise the collection, payment and management of the endowment insurance fund. The
specific measures shall be separately formulated.

CHAPTER VI SETTLEMENT OF DISPUTES AND PUNISHMENT

   Article 43 Disputes between an employee and his/her unit over the payment of endowment insurance premiums or disputes between an employee or
retiree or a unit and the endowment insurance management center may be referred to the Municipal Social Insurance Administration
for adjudication.

   Article 44 An employee or retiree or a unit may ask the endowment insurance management center to check the payment of endowment insurance premiums
made by the individual or the unit and the payment of pensions. The endowment insurance management center shall provide free services.

   Article 45 The endowment insurance management center may examine the payment of endowment insurance premiums. The Municipal Social Insurance
Administration shall instruct the unit that makes no payment of, or fails to make of, or makes underpayment of endowment insurance
premiums to pay the premiums within a prescribed time limit. If the payment is not made within the deadline, the Municipal Social
Insurance Administration may ask the bank to withhold the payment and may impose a fine 1 to 2 times as much as the unpaid amount.
The fine, however, shall not exceed 30,000 yuan.

   Article 46 The endowment insurance management center shall impose an overdue fine equal to 0.2% of the payable amount for each day in arrears
on the unit that fails to make the payment of endowment insurance on time.

Income from overdue fines shall be included in the endowment insurance fund.

   Article 47 When a retiree who enjoys the endowment insurance treatment dies, his/her lineal relative(s) or the unit concerned shall go through
the endowment registration cancellation formalities with the endowment insurance management center in good time.

If any person violates the above Section, overdraws or falsely claims pension by forging documents or by other means, the endowment
insurance management center shall recover the amount overdrawn or falsely claimed. If the case is serious, the Municipal Social Insurance
Administration may impose a fine one to five times as much as the amount overdrawn or falsely claimed. However, such fine shall not
exceed 30,000 yuan for a unit and 1,000 yuan for an individual.

   Article 48 If the party concerned refuses to accept as final the specific administrative act of the Municipal Social Insurance Administration,
it may apply for administrative review according to the Regulations on Administrative Review or institute legal proceedings according
to the Administrative Litigation Law of the People’s Republic of China.

If the party concerned does not apply for review or institute legal proceedings within the prescribed period of time, nor does it
comply with the specific administrative decision, the administrative department that made the decision may apply to the people’s
court for enforcement according to the provisions of the Administrative Procedure Law of the People’s Republic of China.

   Article 49 The public security organs shall inflict penalty on those who disturb the normal working order of endowment insurance agencies according
to the Regulations of the People’s Republic of China on Public Security Administration and the Imposition of Punishment.

CHAPTER VII SUPPLEMENTARY PROVISIONS

   Article 50 The interim measures on endowment insurance for employees in foreign-funded enterprises and the measures on endowment insurance for
employees in privately-owned enterprises and individual industrialists and businessmen shall be separately formulated according to
the principles of these Procedures.

   Article 51 The procedures on unit supplementary endowment insurance and individual savings endowment insurance in this Municipality shall be
separately formulated.

   Article 52 The Municipal Social Insurance Administration shall be responsible for the interpretation of the specific application of these Procedures.

   Article 53 These Procedures shall become effective on June 1, 1994.

Any unit or individual that failed to execute the Plan of Shanghai Municipality for the Implementation of Reform of Endowment Insurance
System for Town Employees during the period from January 1, 1993 until the time of implementation of these Procedures shall fulfill
the obligations under the Plan within 3 months starting from the date of implementation of these Procedures.

    





DECISION OF THE NATIONAL PEOPLE’S CONGRESS ON THE METHOD FOR THE FORMATION OF THE FIRST GOVERNMENT, THE FIRST LEGISLATIVE COUNCIL AND THE FIRST JUDICIARY OF THE MACAO SPECIAL ADMINISTRATIVE REGION

Category  SPECIAL ADMINISTRATIVE REGION Organ of Promulgation  The National People’s Congress Status of Effect  In Force
Date of Promulgation  1993-03-31 Effective Date  1993-03-31  


Decision of the National People’s Congress on the Method for the Formation of the First Government, the First Legislative Council
and the First Judiciary of the Macao Special Administrative Region



(Adopted at the First Session of the Eighth National People’s

Congress on March 31, 1993)

    1. The First Government, the First Legislative Council and the
First Judiciary shall be formed in accordance with the principles
of state sovereignty and  smooth transition.

    2. The National People’s Congress shall establish  a
Preparatory Committee for the Macao Special Administrative Region,
which shall be responsible for preparing the establishment of the
Region and shall prescribe the specific method for forming the
First Government, the First Legislative Council and the First
Judiciary in accordance with this Decision. The Preparatory
Committee shall be composed of mainland members and of Macao
members who shall constitute not less than 50 percent of its
membership. Its Chairman and members shall be appointed by the
Standing Committee of the National People’s Congress.

    3. The Preparatory Committee for the Macao Special
Administrative Region shall be responsible for preparing the
establishment of the Selection Committee for the First Government
of the Macao Special Administrative Region (“the Selection
Committee”).

    The Selection Committee shall be composed entirely of permanent residents of Macao and must be broadly representative.
It
shall include Macao deputies to the National People’s Congress,
representatives of Macao members of the National Committee of the
Chinese People’s Political Consultative Conference, persons with
practical experience who have served in Macao’s executive,
legislative and advisory organs prior to the establishment of the
Macao Special Administrative Region, and persons representative of various strata and sectors of society.

    The Selection Committee shall be composed of 200 members,
among whom:

        Industrial, commercial and financial sectors:      60

        Cultural and educational sectors and other

        professions:                                      
50

        Labor, social services, religious and

        other sectors:                                    
50

        Former political figures, Macao deputies

        to the National People’s Congress, and

        representatives of the Macao members of the

        National Committee of the Chinese People’s

        Political Consultative Conference:                
40

    4. The Selection Committee shall recommend the candidate for
the first Chief Executive through local consultations or through
nomination and election after consultation, and report the
recommended candidate to the Central People’s Government for
appointment. The term of office of the first Chief Executive shall
be the same as the regular term.

    5. The Chief Executive of the Macao Special Administrative
Region shall be responsible for preparing the formation of the
first Government of the Region in accordance with this Law.

    6. The first Legislative Council of the Macao Special
Administrative Region shall be composed of 23 members, with 8
members returned through direct elections, 8 members returned
through indirect elections, and 7 members appointed by the Chief
Executive. If the composition of the last Macao Legislative Council
before the establishment of the Macao Special Administrative Region
is in conformity with the relevant provisions of this Decision and
the Basic Law of the Macao Special Administrative Region, those of the elected members who uphold the Basic Law of the Macao Special
Administrative Region of the People’s Republic of China and pledge
allegiance to the Macao Special Administrative Region of the
People’s Republic of China, and who meet the requirements set forth
in the Basic Law of the Region may, upon confirmation by the
Preparatory Committee, become members of the First Legislative
Council of the Region. Any vacancy in the first Legislative Council
of the Region shall be filled by a decision of the Preparatory
Committee.

     The term of office of members of the first Legislative Council
of the Macao Special Administrative Region shall last until 15
October 2001.

    7. The Preparatory Committee of the Macao Special
Administrative Region shall be responsible for organizing the Court
of the Macao Special Administrative Region in accordance with the
Basic Law of the Region.





GUARANTEE LAW

Category  OBLIGATORY RIGHT Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1995-06-30 Effective Date  1995-10-01  


Guarantee Law of the People’s Republic of China

Contents
Chapter I  General Provisions
Chapter II  Guaranty
Chapter III  Mortgage
Chapter IV  Pledge
Chapter V  Lien
Chapter VI  Deposit
Chapter VII  Supplementary Provisions

(Adopted at the 14th Meeting of the Standing Committee of the

Eighth National People’s Congress on June 30, 1995, promulgated by
Order No.50 of the President of the People’s Republic of China on June
30, 1995, and effective as of October 1, 1995 )
Contents

    Chapter I  General Provisions

    Chapter II  Guaranty

        Section 1  Guaranty and Guarantor

        Section 2  Contract of Guaranty and Mode of Guaranty

        Section 3  Liability of Guaranty

    Chapter III  Mortgage

        Section 1  Mortgage and Gage

        Section 2  Contract of Mortgage and Mortgage Registration

        Section 3  Effect of Mortgage

        Section 4  Realization of Mortgage

        Section 5  Mortgage of Maximum Amount

    Chapter IV  Pledg

        Section 1  Pledge of Movables

        Section 2  Pledge of Rights

    Chapter V  Lien

    Chapter VI  Deposit

    Chapter VII  Supplementary Provisions
Chapter I  General Provisions

    Article 1  This Law is formulated for the purpose of promoting
the capital flow and commodity circulation, safeguarding the
realization of obligatory right, and developing the socialist market
economy.

    Article 2  In such economic activities as loans, sales, goods
freight and hire of processing work, etc., where the creditor needs to
safeguard the realization of his obligatory right by the way of
guarantee, a guarantee may be established in accordance with the
provisions of this Law.

    The modes of guarantee provided for in this Law shall be guaranty,
mortgage, pledge, lien and deposit.

    Article 3  In activities of guarantee, the principle of equality,
voluntariness, fairness and good faith shall be complied with.

    Article 4  When a third party offers the creditor a guarantee on
behalf of the debtor, he may require the debtor to offer a counter-
guarantee.

    The provisions on guarantee of this Law shall be applicable
to counter-guarantee.

    Article 5  A guarantee contract shall be an accessory contract to
the master contract. Where the master contract is invalid, the
guarantee contract shall also be invalid. Where an agreement is
otherwise reached in the guarantee contract, that agreement shall
prevail.

    Where a guarantee contract is affirmed to be invalid, the
debtor, surety or creditor is in fault, they shall respectively bear
the relevant civil liability according to their own faults.
Chapter II  Guaranty

    Section 1  Guaranty and Guarantor

    Article 6  In this Law, guaranty means that the guarantor and the
creditor agree that, when the debtor fails to perform his debt, the
guarantor will perform the debt or bear the liability in accordance
with the agreement.

    Article 7  A guarantor may be a legal person, other organization
or a citizen who has ability to discharge of debts on behalf of
others.

    Article 8  The state administrative departments shall not be a
guarantor, unless they, with the approval of the State Council,
transfer loans for the purpose of using the loans of foreign
governments or international organizations.

    Article 9  Such institutions and social organizations as schools,
kindergartens and hospitals, etc., which are established for the
purpose of public interest shall not be a guarantor.

    Article 10  A branch or functional department of an enterprise as
legal person shall not be a guarantor.

    If a branch of an enterprise as legal person has been delegated in
writing by the legal person, it may offer the guaranty within the
delegation extent.

    Article 11  No organization or individual may oblige enterprises
or financial institutions such as a bank to offer guaranty for others;
enterprises and financial institutions such as a bank shall have the
right to refuse to offer guaranty for others when they are obliged to.

    Article 12  Where there are two or more guarantors for the same
debt, the guarantors shall, according to their own guaranty shares
agreed in the guaranty contract, bear the guaranty liability. In case
of no agreement on the guaranty shares, the guarantors shall bear the
joint liability. Thus the creditor may demand any of the guarantors to
bear the entire guaranty liability, and any of the guarantors shall
bear the obligation to guarantee the entire realization of the
obligatory right. The guarantor who has borne the guaranty liability
shall be enpost_titled to claim repayment from the debtor, or to demand
other guarantors bearing the joint liability to satisfy him their
shares that they shall bear.

    Section 2  Guaranty Contract and Guaranty Mode

    Article 13  The guarantor and creditor shall enter into a
guaranty contract in written form.

    Article 14  The guarantor and creditor may enter into a guaranty
contract respectively as for a single master contract, and may also,
within the maximum obligatory right amount as for a loan contract
occurred continuously during a certain period or a commodity trade
contract, enter into a guaranty contract.

    Article 15  A guaranty contract shall contain the following
contents:

    1. the categories and amount of a master obligatory right
guaranteed;

    2. the time limitation to perform the debt by the debtor;

    3. the guaranty mode;

    4. the scope guaranteed by the guaranty;

    5. the time period of guaranty; and

    6. other items which the two parties consider necessary to agree.

    If a guaranty contract has the contents prescribed in the
proceeding paragraph incomplete, it may be supplemented.

    Article 16  The guaranty mode contains:

    1. the general guaranty; and

    2. the joint liability guaranty.

    Article 17  That the parties in a guaranty contract agree that,
when the debtor cannot perform the debt, the guaranty liability is to
be borne by the guarantor, is the general guaranty.

    The guarantor of a general guaranty may, without trial or
arbitration on the disputes of a master contract, and before the debt
cannot be performed yet with compulsory enforcement on the debtors’
property according to the law, refuse to bear the guaranty liability
for the creditor.

    When there is any one of the following circumstances, the
guarantor shall not exercise the right prescribed in the proceeding
paragraph:

    1. the address of the debtor has changed, so that it becomes a
major difficulty for the creditor to demand him to perform the debt;

    2. the people’s court accepting a debtor’s bankruptcy case, orders
suspension of execution procedure; or

    3. the guarantor abandons the right described in the proceeding
paragraph in written form.

    Article 18  That the parties in a guaranty contract agree that
the guarantor and debtor bear the joint liability on a debt, is the
joint liability guaranty.

    If the debtor of a joint liability guaranty cannot perform the
debt at the date of expiration of the debt performance time limitation
prescribed in the master contract, the creditor may demand the debtor
to perform the debt, and may also demand the guarantor to bear the
guaranty liability within the extent of guaranty.

    Article 19  If no agreement or the agreement is not clear on the
guaranty mode by the parties, the guaranty liability shall be borne
according to the joint liability guaranty.

    Article 20  The guarantor of a general guaranty and joint
liability guaranty shall be enpost_titled to have the counterplead right of
the debtor. If the debtor abandons his counterplead right, the
guarantor shall still be enpost_titled to have right to counterplead.

    The counterplead right means that the right of, when the creditor
exercises his obligatory right, the debtor according to legal reasons
executing the petition right against the creditor.

    Section 3  Guaranty Liability

    Article 21  The guaranteed scope of a guaranty concludes the
master obligatory right and its interest, contractual fine, damage
compensation and expense of credit realization. If there is an
agreement otherwise in the guaranty contract, it shall be complied
with.

    If no agreement or the agreement is not clear on the guaranteed
scope of a guaranty by the parties, the guarantor shall bear the
liability to the entire debt.

    Article 22  During the time period of guaranty, where the
creditor assigns the master obligatory right to a third party
according to the law, the guarantor continues to bear the guaranty
liability within the original guaranteed scope of the guaranty. If
there is an agreement otherwise in the guaranty contract, it shall
be complied with.

    Article 23  During the time period of guaranty, if the creditor
wants to permit the debtor to assign the debt, he shall get the
written consent from the guarantor, the guarantor bears no guaranty
liability on the debt assigned without his consent.

    Article 24  If the creditor and debtor agree to change the master
contract, they shall get the written consent from the guarantor,
without this written consent, the guarantor bears no longer guaranty
liability. If there is an agreement otherwise in the guaranty
contract, it shall be complied with.

    Article 25  If no agreement on guaranty period between the
guarantor and creditor of a general guaranty, the guaranty period
shall be 6 months from the date of expiration of the master debt
performance time limitation.

    During the guaranty period agreed in the contract or described in
the proceeding paragraph, if the creditor has not filed a case against
the debtor or applied for the arbitration, the guarantor shall be
exempted from the guaranty liability; if the creditor has filed a case or
applied for the arbitration, the guaranty period shall be applied to the
provisions on the discontinuance of limitation of action.

    Article 26  If no agreement on a guaranty period between the
guarantor and creditor of a joint liability guaranty, the creditor
shall be enpost_titled to have the right within 6 months from the date of
expiration of the master debt performance time limitation to demand
the guarantor to bear the guaranty liability.

    During the guaranty period agreed in the contract or described in
the proceeding paragraph, if the creditor has not demanded the
guarantor to bear guaranty liability, the guarantor shall be exempted
from the guaranty liability.

    Article 27  The guarantor shall make a guaranty on a credit
occurred continuously according to the provisions of Article 14 in
this law, if no agreement on guaranty time period, the guarantor may
at all times inform the creditor in written form to terminate the
guaranty contract, however the guarantor shall, as for the credit
occurred before having informed the creditor, bear guaranty liability.

    Article 28  Where there are both a guaranty and a guarantee of
real right on a same obligatory right, the guarantor shall bear the
guaranty liability on the obligatory right except the guarantee of
real right.

    If the creditor abandons the guarantee of real right, the
guarantor shall, within the scope of right abandoned by the creditor,
be exempted from the guaranty liability.

    Article 29  Where a branch of an enterprise as a legal person
enters into a guaranty contract with the creditor without written
delegation from the enterprise as legal person or exceeding the extent
of delegation, this contract shall be invalid or the part exceeding
the extent of delegation shall be invalid; if the creditor and the
enterprise as legal person has default, they shall bear the relevant
civil liability according to their fault respectively; if the creditor
has no default, the civil liability shall be borne by the enterprise
as legal person.

    Article 30  If there is any one of the following circumstances,
the guarantor shall not bear the civil liability:

    1. the parties of the master contract collude to defraud the
guarantor to offer a guaranty; or

    2. the creditor of the master contract take means of fraud or
coercion to force the guarantor to offer a guaranty against his true
intention.

    Article 31  After the guarantor has borne the guaranty liability,
he shall be enpost_titled to claim repayment from the debtor.

    Article 32  After the people’s court accepts a debtor’s bankruptcy
case, if the creditor does not declare his obligatory rights, the
guarantor may take part in the bankrupted property distribution,
exercise the right to claim repayment in advance.
Chapter III  Mortgage

    Section 1  Mortgage and Gage

    Article 33  The mortgage prescribed in this Law, means a
guarantee that a debtor or a third party does not transfer the
possession of the property listed in Article 34 in this Law, make the
said property as obligatory right. When the debtor does not perform
the debt, the creditor shall be enpost_titled to have right to keep the
said property to offset the debt or have priority in satisfying his
claim out of proceeds from the auction, sale of the said property
pursuant to the provisions of this Law.

    The debtor or third party prescribed in the proceeding paragraph
shall be the mortgagor, the creditor shall be the mortgagee, the
property offered to guarantee shall be the gage.

    Article 34  The following properties may be mortgaged:

    1. the house and other land fixtures owned by the mortgagor;

    2. the machine, transportation means and other property owned by
the mortgagor;

    3. the state-owned right to the use of land, house and other land
fixtures which the mortgagor is enpost_titled to dispose of pursuant to the
law;

    4. the state-owned machine, transportation means and other
property which the mortgagor is enpost_titled to dispose of pursuant to the
law;

    5. the right to the use of land on the unreclaimed land such as
unreclaimed mountains, unreclaimed valleys, unclaimed hills or
unreclaimed beaches which is contracted for management by the
mortgagor in accordance with law and is agreed to mortgage by the
contractee; or

    6. other property which may be mortgaged in accordance with the
law.

    The mortgagor may mortgage the properties listed in the
proceeding paragraph all together.

    Article 35  The obligatory right guaranteed by the mortgagor shall
not exceed the value of the gage.

    After the property is mortgaged, the surplus part that the said
property is more than the obligatory right guaranteed, may be
mortgaged once more, but shall not exceed the surplus part.

    Article 36  If the house upon the state-owned land obtained
according to the law is to be mortgaged, the right to the use of the
state-owned land within the scope the house occupies shall be
mortgaged at the same time.

    If the right to the use of state-owned land obtained by way of
transfer according to the law, when mortgaged the house upon the said
state-owned land shall be mortgaged at the same time.

    The right to the use of land of enterprises of a township (town)
or village shall not be mortgaged separately. If the buildings of
enterprises of township (town) or village such as a plant is to be
mortgaged, the right to the use of the land within the scope it
occupies shall be mortgaged at the same time.

    Article 37  the following properties shall not be mortgaged:

    1. the ownership of land;

    2. the ownership of the lands owned by collectives such as
cultivated land, house sites, private plots of cropland and hilly land
shall not be mortgaged, except that prescribed in item 5 of Article
34, paragraph 3 of Article 36 of this Law;

    3. the facilities for education, the facilities for public health
and medicine and other facilities for social benefit of the
institutions or social units for purpose of public interest such as
schools, kindergartens or hospitals;

    4. the properties whose ownership or right to use is uncertain or
in dispute;

    5. the properties sealed up, distrained or regulated; or

    6. other properties which shall not be mortgaged pursuant to law.

    Section 2  Mortgage Contract and Gage Registration

    Article 38  The mortgagor and the mortgagee shall enter into a
mortgage contract in written form.

    Article 39  A mortgage contract shall contain the following
contents:

    1. the categories and amount of master obligatory right
guaranteed;

    2. the time limitation to perform the debt by the debtor;

    3. the name, quantity, quality, situation, address, ownership or
right to the use of the gage;

    4. the extent guaranteed by the mortgage; and

    5. other items the parties consider necessary to agree.

    If a mortgage contract has the contents prescribed in the
proceeding paragraph incomplete, it may be supplemented.

    Article 40  When entering into a mortgage contract, the mortgagor
and the mortgagee shall not agree that, when the mortgagee is not
satisfied at date of expiration of the time limitation for the debt
performance, the ownership of the gage is to be transferred to the
creditor.

    Article 41  Where the parties take the properties prescribed in
Article 42 of this Law to mortgage, he shall go through the gage
registration, the mortgage contract shall be effective as the date of
registration.

    Article 42  The departments handling the gage registration are as
follows:

    1. in case that the right to the use of land without fixtures upon
the land is to be mortgaged, it shall be the land administration
departments which upon verification issue certificates for the right
to the use of land;

    2. in case that the city real estates or the building of the
township (town) or village enterprises such as a plant is to be
mortgaged, it shall be the departments prescribed by the local
people’s governments at and above the county level;

    3. in case that the woods are to be mortgaged, it shall be the
forestry administration departments at and above the county level;

    4. in case that aircraft, vessels or vehicles are to be mortgaged,
it shall be the registration departments for transportation means; or

    5. in case that the equipment or other movables of a enterprise
are to be mortgaged, it shall be the administrations of industry and
commerce where the properties are located.

    Article 43  Where the party takes other properties to mortgage,
he may go through the gage registration on a voluntary basis, the
mortgage contract shall be effective as the date of registration.

    The party who has not handled the gage registration shall not be
opposed to a third party. If the party goes through the gage
registration, the registration department is to be the notary
department of the area where the mortgagor is located.

    Article 44  When the gage registration is to be handled, the
following documents or their copies shall be produced to the
registration department:

    1. the master contract and the mortgage contract; and

    2. the certificate of ownership of or right to the use of the
gage.

    Article 45  The information registered by the registration
department shall be allowed to inquire and read, copy by hand and
copy.

    Section 3  Effect of Mortgage

    Article 46  Within the guaranteed scope of a mortgage shall
be the master obligatory and its interest, contractual fine, damage
compensation and expense of realization of mortgage. If there is an
agreement otherwise in the mortgage contract, it shall be complied
with.

    Article 47  At the date of expiration of the debt performance
period, if the debtor has not performed the debt so that the gage has
been distrained by the people’s court, from the date of distraining
the mortgagee shall be enpost_titled to collect the natural fruits
separated from the gage and the legal fruits that the mortgagee may
collect on the gage. If the mortgagee has not informed the fact of the
distraining of the gage to the obligatory person who shall satisfy the
claim out of proceeds for the legal fruits, the effect of mortgage shall
not extend to the said fruits.

    The fruits of the proceeding paragraph shall eliminate in advance
the expense of collecting the fruits.

    Article 48  If the mortgagor wants to mortgage a property that
has been leased, he shall notify the leasee in writing, and the
original lease contract continues to be effective.

    Article 49  During the period of mortgage, if the mortgagor
assigns the gage registered, he shall inform the mortgagee and also
notify the assignee of the situation that the grant has been
mortgaged; if the mortgagor does not inform the mortgagee or notify
the assignee, the assigning behavior shall be invalid.

    If the value amount of the gage assigned is obviously lower than
its value, the mortgagee may demand the mortgagor to offer the
equivalent guarantee; if the mortgagor does not offer, the gage shall
not be assigned.

    The value amount from assigning the gage by the mortgagor shall
satisfy in advance the mortgagee for the claim out of the proceeds on
the obligatory right guaranteed or be deposited to the third party he
agreed with the mortgagee. The part exceeding the amount of the
obligatory right, shall be owned by the mortgagor, while the short
part shall be satisfied by the debtor.

    Article 50  The mortgage right shall not be separated from the
obligatory right so that it is assigned solely or as a guarantee of
other obligatory rights.

    Article 51  If the behavior of the mortgagor causes the value of
the gage to decrease, the mortgagee shall be enpost_titled to have right to
demand the mortgagor to stop his behavior. When the value of the gage
decreases, the mortgagee shall be enpost_titled to have right to demand the
mortgagor to restore the value of the gage, or offer a guarantee
equivalent to the value decreased.

    If the mortgagor has no fault for the decrease of the value of the
gage the mortgagee shall demand the mortgagee to be offered only
within the extent of compensation for the damage obtained by the
mortgagor. The part of the gage of which the value does not decrease,
shall still be the guarantee of the obligatory right.

    Article 52  The mortgage shall exist simultaneously with the
obligatory right it guarantees, where the obligatory right is extinct,
the mortgage shall be extinct as well.

    Section 4  Realization of Mortgage

    Article 53  At the date of expiration of the debt performance
period if the mortgagee has not been satisfied with the claim out of
proceeds, he may make an agreement with the mortgagor to keep the said
property to offset the gage or satisfies his claim out of proceeds
from the auction, sale of the said gage; if failing to make an
agreement, the mortgagor may file a case to the People’s Court.

    After the gage is set off, auctioned or sold, the part of the
value amount exceeding the amount of the obligatory right shall be
owned by the mortgagor, the short part shall be satisfied by the
debtor.

    Article 54  If there are two or more creditors who have a mortgage
on the same property, the value amount obtained from the auction, sale
of the gage shall be satisfied pursuant to the following provisions:

    1. where the mortgage contract is effective through registration,
it shall be satisfied in the registration sequence of the gage; if
equal in sequence, then it shall be satisfied according to the
proportion of the obligatory right; or

    2. where the mortgage contract is effective as the date of
signing, and the said gage has been registered, it shall be satisfied
according to the item 1 of this Article; if the gage has not
registered, it shall be satisfied in the sequence of the effective
date of the contracts, and if equal in sequence, it shall be satisfied
according to the proportion of the obligatory right. The registered
gage has priority to the unregistered gage.

    Article 55  After the signing of the city real estates mortgage
contract, the houses built lately upon the land shall not belong to
the gage. When the said mortgaged real estates is needed to be
auctioned, the lately built houses upon the land may be auctioned
together with the gage, but as for the amount from the auction of the
lately built houses, the mortgagee shall not be enpost_titled to have
priority in satisfying the claim out of proceeds.

    Where the right to the use of land of the unreclaimed land
contracted for management according to this Law is to be mortgaged, or
the right to the use of the land within the extent occupied by the
buildings of the township (town) or village enterprises such as a
plant is to be mortgaged, after the realization of mortgage, the
collective ownership and purpose of the land shall not be changed
without the legal procedure is gone through.

    Article 56  The value amount obtained from the auction of the
right to the use of the stated-owned land appropriated, after paying
the amount equivalent to the transfer fee of the right to the use of
land which shall be paid, the mortgagee shall be enpost_titled to have
right in priority for the claim out of proceeds.

    Article 57  The third party who offers guarantee of a mortgage on
behalf of the debtor, after the realization of the mortgage by the
mortgagee, shall be enpost_titled to have right to claim repayment from the
debtor.

    Article 58  The mortgage right extinguishe

CRIMINAL PROCEDURE LAW

Category  LITIGATION Organ of Promulgation  The National People’s Congress Status of Effect  In Force
Date of Promulgation  1996-03-17 Effective Date  1997-01-01  


Criminal Procedure Law of the People’s Republic of China [1996]

Contents
Chapter I  Aim and Basic Principles
Chapter II  Jurisdiction
Chapter III  Withdrawal
Chapter IV  Defense and Procuration
Chapter V  Evidence
Chapter VI  Compulsory Measures
Chapter VII  Incidental Civil Actions
Chapter VIII  Time Periods and Service
Chapter IX  Other Provisions
Chapter I  Filing a Case
Chapter II  Investigation
Chapter III  Initiation of Public Prosecution
Chapter I  Trial Organizations
Chapter II  Procedure of First Instance
Chapter III  Procedure of Second Instance
Chapter IV  Procedure for Review of Death Sentences
Chapter V  Procedure for Trial Supervision
Supplementary Provisions

(Adopted at the Second Session of the Fifth National People’s Congress on

July 1, 1979, revised in accordance with the Decision on Amendments of the
Criminal Procedure Law of the People’s Republic of China adopted at the
Fourth Session of the Eighth National People’s Congress on March 17, 1996)
Contents

  Part One  General Provisions

    Chapter I     Aim and Basic Principles

    Chapter II    Jurisdiction

    Chapter III   Withdrawal

    Chapter IV    Defense and Procuration

    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 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 to
guarantee the correct implementation of the Criminal Law, punish crimes,
protect the people, ensure the national security and social public security
and maintain the social order of the socialist society.

    Article 2  The Criminal Procedure Law makes it the objective to ensure
the accurate and timely ascertainment through investigation of the criminal
facts, the proper application of the law and punishments of criminals, to
protect innocent people from undergoing criminal prosecution, to educate
citizens to observe law voluntarily and take an active part in the struggle
against criminal acts, to uphold the socialist legal system, to protect the
personal rights, property rights, democratic rights and other rights of
citizens, and to ensure the smooth progress of socialist construction.

    Article 3  The public security organs are responsible for investigation,
detention, execution of arrests and preliminary examination. The people’s
procuratorates are responsible for conducting procuratorial work, approving
arrests, investigating cases directly accepted by the procuratorates and
initiating public prosecutions. The people’s courts are responsible for
adjudication. Any other organs, organizations and individuals have no right
to exercise such power, unless otherwise provided by law.

    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  The state security organs shall, according to the stipulations
of the law, handle criminal cases endangering the state security and
exercise the functions and power identical with those of the public security
organs.

    Article 5  The people’s courts shall, according to the stipulations of the
law, exercise independently judicial power and the people’s procuratorates
shall, according to the stipulations of the law, exercise independently
procuratorial power, both of which shall be free of any interference by
administrative organs, social organizations and individuals.

    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 the law as the criterion. The law
applies equally to all citizens and no privilege whatsoever is permissible
before the law.

    Article 7  In conducting criminal proceedings, the people’s courts, the
people’s procuratorates and the public security organs shall divide the
responsibilities, coordinate their efforts and check each other to ensure the
correct and effective enforcement of the law.

    Article 8  The people’s procuratorates shall, according to law, exercise
legal supervision over criminal lawsuits.

    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 interpretations or 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. The accused shall have the right to defense,
and the people’s courts shall have the duty to guarantee his/her defense.

    Article 12  No person shall be held guilty in absence of a judgment
rendered by the 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 legal
representative of the criminal suspect or the accused may be notified to be
present at the time of interrogation and trial.

    Participants in proceedings shall have the right to file charges against
judicial, procuratorial and investigatory personnel whose acts infringe on
their citizens’ procedural rights or subject their persons to indignities.

    Article 15  Subject to one of the following instances, no criminal
responsibility shall be investigated, and if investigation has been
undertaken, the case shall be dismissed, or prosecution shall not be
initiated, or the hearing shall be terminated, or innocence shall be
declared:

    (1) If an act is obviously of minor importance, 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 the accused is deceased; or

    (6) Other instances for which 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  The judicial organs of the country and their counterparts of
foreign countries may mutually request judicial assistance in criminal cases,
in accordance with the international treaties concluded or acceded to by the
People’s Republic of China, or according to reciprocal principle.
Chapter II  Jurisdiction

    Article 18  Public security organs shall conduct investigations into
criminal cases unless otherwise stipulated by law.

    People’s procuratorates shall file cases and conduct investigations into
crimes regarding corruption, crimes regarding dereliction of duty committed
by public employees of the state, crimes regarding infringement on the
personal rights of, and on the democratic rights of, citizens committed by
staff personnel of state organizations by abusing their authority in respect
of illegal detention, extortion by torture of confession, retaliation and
false charges, and illegal rummage. Other cases involving serious crimes
committed by staff personnel of state organizations by abusing their
authority, may be filed with and investigated by people’s procuratorates,
subject to the decision made by the people’s procuratorate at provincial
level or above, when the people’s procuratorate concerned is required to
directly accept the case.

    Cases of private prosecution shall be accepted directly by the people’s
courts.

    Article 19  The basic 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) Counter-revolutionary cases and cases endangering the national
security;

    (2) Ordinary criminal cases possibly resulting in a judgment of life
imprisonment or death penalty; and

    (3) Criminal cases involving crimes committed by 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 municipality directly under the Central Government, or
autonomous region).

    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 accused 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/she is a party or a near relative of a party to the case;

    (2) If he/she or a near relative of his/her has an interest in the case;

    (3) If he/she has served as a witness, expert witness or defender in the
current case or has represented a party in an incidental civil action; or

    (4) If he/she has any other relations with a party to the case that could
affect the impartial handling of the case.

    Article 29  Judicial, procuratorial and investigatory personnel shall not
be allowed to accept invitation to entertainment or gifts by the party and
the persons entrusted by him/her, or shall not be allowed to meet, in
violation of stipulations, the party and the persons entrusted by him/her.

    Judicial personnel, procuratorial personnel and investigatory personnel
who have violated the provisions in the preceding paragraph, shall according
to law be investigated into the legal responsibility. The party and his/her
legal representative have the right to apply for the withdrawal of the
personnel concerned.

    Article 30  The withdrawal of judicial, procuratorial and investigatory
personnel 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.

    A member of the investigatory personnel may not suspend investigation of
a case before a decision is made on his/her withdrawal.

    In response to the decision on rejection of a party’s application for
withdrawal, the party and his/her legal representative may apply for a final
reconsideration.

    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  Defense and Procuration

    Article 32  In addition to the exercise by himself/herself of the right to
defense, the criminal suspect or the accused may entrust one or two persons
as his/her defenders, and following persons may be entrusted to be defenders:

    (1) Lawyers;

    (2) Persons recommended by a people’s organization or the unit by which
the criminal suspect or the accused is employed; and

    (3) Guardians, relatives and friends of the criminal suspect or the
accused.

     The persons undergoing criminal punishments or being deprived of or
restrained from personal liberty according to law shall not act as defenders.

    Article 33  The right of a criminal suspect to entrust defenders in
public prosecution accrues on the day when the case is submitted for
examination and prosecution. The accused in a private prosecution has the
right to entrust defenders at any time.

    The people’s procuratorate shall, within three days from the day of
receiving the file of the case submitted for examination and prosecution,
inform the criminal suspect of the right to entrust defenders. The people’s
court shall, within three days from the day of accepting the private
prosecution, inform the accused of the right to entrust defenders.

    Article 34  In case a public prosecutor appears in court to conduct a
public prosecution while the accused has not entrusted his/her defenders on
account of economic difficulty or for other reasons, the people’s court may
designate a lawyer duty-bound to provide legal assistance to defend him/her.

    In case the accused who is blind, deaf or mute or who is a minor, does
not entrust a defender, the people’s court shall designate a lawyer
duty-bound to provide legal assistance to defend him/her.

    In case the accused who may possibly be sentenced to death penalty
does not entrust a defender, the people’s court shall designate a lawyer
duty-bound to provide legal assistance to defend him/her.

    Article 35  The responsibility of a defender shall be to present,
according to the facts and the law, materials and opinions proving the
innocence of the criminal suspect or the accused, the pettiness of his/her
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 accused.

    Article 36  The defense lawyer may, from the day of the examination by
the people’s procuratorate of the prosecution case, consult, make extracts
from and reproduce the litigation documents, documents of technical
examination, and may meet and correspond with the criminal suspect in custody.
Other defenders with the permission of the people’s procuratorate may consult,
make extracts from and reproduce the afore-said file documents, and may meet
and correspond with the criminal suspect in custody.

    The defense lawyer may, from the day of accepting the case by the people’s
court, consult, make extracts from and reproduce the file documents on
criminal facts accused of, and may meet and correspond with the accused in
custody. Other defenders with the permission of the people’s court may
consult, make extracts from and reproduce the afore-said file documents, and
meet and correspond with the accused in custody.

    Article 37  The defense lawyer may, with the consent of the witnesses
or other relevant units and individuals, acquire information related to the
case from them, or may apply to the people’s procuratorate, or the people’s
court for collecting or obtaining by order the evidence, or apply to the
people’s court for notifying witnesses to testify in the court.

    The defense lawyer, with the permission of the people’s procuratorate or
people’s court, may with the consent of the victim, his/her near relatives
or the witnesses provided by the victim, acquire information related to the
case from them.

    Article 38  The defense lawyer and other defenders shall not assist
the criminal suspects or the accused to conceal, destroy, frame up evidence
or act to collude with each other’s confessions, and shall not threaten,
entice witnesses to make alterations in testimony or give false testimony, and
shall not commit any acts which may cause interference in prosecution
activities conducted by judicial organs.

    Legal responsibility shall be investigated into for violating the
provisions of the preceding paragraph.

    Article 39  During a trial, the accused may refuse to have his/her
defender continue to defend him/her and may entrust his/her defense to
another defender.

    Article 40  The victim and his/her legal representative or near relatives
in public prosecution, the parties and their legal representatives in an
incidental civil action, have the right to entrust agents ad litem from the
day when the case is submitted for examination and prosecution. The
prosecutor and his/her legal representative in private prosecution, the
parties and their legal representatives in an incidental civil action have
the right to entrust agents ad litem at any time.

    The people’s procuratorates shall, within three days from the day of
receiving the file of the case submitted for examination and prosecution,
inform the victim and his/her legal representative or near relatives, the
parties and their legal representatives in an incidental civil action of the
right to entrust agents ad litem. The people’s courts shall, within three
days from the day of accepting a private prosecution, inform the prosecutor
and his/her legal representative, the parties and their legal representatives
in an incidental civil action of the right to entrust agents ad litem.

    Article 41  Agents ad litem shall be entrusted by reference to the
stipulations of Article 32 of this Law.
Chapter V  Evidence

    Article 42  All facts that prove the true circumstances of a case shall
be evidence.

    There shall be the following six categories of evidences:

    (1) material evidence and documentary evidence;

    (2) testimony of witnesses;

    (3) statements of victims;

    (4) statements and exculpation of criminal suspects or the accused;

    (5) expert conclusions;

    (6) records of inquests and examination; and

    (7) video and audio materials.

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

    Article 43  Judicial, procuratorial and investigatory personnel must, in
accordance with the legally prescribed process, collect various kinds of
evidence that can prove the guilt or innocence of the criminal suspect or the
accused and the gravity of his/her 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 request 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 are empowered to collect, obtain by order evidence
from relevant units and individuals. The relevant units and individuals shall
furnish the true evidence.

    Evidence involving state secrets shall be kept confidential.

    Anyone that falsifies, conceals or destroys evidence, regardless of which
side of a case he/she belongs to, must be investigated under the 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. The accused cannot be found guilty and sentenced to a
criminal punishment if there is only his/her statement but no evidence; the
accused may be found guilty and sentenced to a criminal punishment if
evidence is sufficient and reliable, even without his/her 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 accused 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
the 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, people’s procuratorates and public
security organs shall guarantee the safety of witnesses and their near
relatives.

    Criminal responsibility shall be investigated according to law for
menace, humiliation, beating, retaliation done to witnesses and their near
relatives in case of a crime established; and if the seriousness is not
enough for criminal punishments, an administrative penalty for public
security shall be imposed according to 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, summon
by warrant the criminal suspect or the accused, or order him/her to be bailed
out for summons or reside under surveillance.

    Article 51  The people’s courts, people’s procuratorates and public
security organs may allow a criminal suspect or the accused to be bailed out
for summons or reside under surveillance, who is subjected to one of the
following conditions:

    (1) Being possibly sentenced to surveillance, criminal detention or
incidental punishment independently applicable; or

    (2) Being possibly sentenced to a punishment not less than fixed-term
imprisonment, but allowing him/her to be out on bail or reside under
surveillance may not possibly cause danger to the society.

    Bail out for summons and reside under surveillance

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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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