China Laws

REGULATIONS ON THE ADMINISTRATION OF SAVINGS

Category	BANKING	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1992-12-11	Effective Date	1993-03-01

Regulations on the Administration of Savings

Chapter I  General Provisions
Chapter II  Savings Institutions
Chapter III  Savings Services
Chapter IV  Rates and Calculation of Interests on Saving Deposits
Chapter V  Withdrawing Ahead of Time, Registration of Loss, Inquiry and
Chapter VI  Legal Liability
Chapter VII  Supplementary Provisions

(Adopted at the 97th Executive Meeting of the State Council, promulgated

by Decree No. 107 of the State Council of the People’s Republic of China on
December 11, 1992, and effective as of March 1, 1993)
Chapter I  General Provisions

Article 1 These Regulations are formulated for the purposes of developing
savings, protecting the legitimate rights and interests of depositors, and
strengthening the administration of savings.

Article 2 Any savings institution handling savings as a business and any
individual participating in savings within the territory of China must observe
the provisions of these Regulations.

Article 3 “Savings” mentioned in these Regulations refer to those
activities in which an individual deposits his own RMB or foreign currency in
a savings institution while the savings institution issues a bankbook or
deposit certificate in return; and when the individual withdraws the principal
and interest on his deposits against his bankbook or deposit certificate, the
savings institution will pay him the principal and interest according to
provisions.

No unit or individual may convert public funds into savings deposited on
an individual’s behalf.

Article 4 “Savings institution” mentioned in these Regulations refers to
those institutions under banks or credit cooperatives which handle savings
services with the approval of the People’s Bank of China or one of its
branches, and those under postal enterprises which handle savings services
statutorily.

Article 5 The State protects the ownership, other legitimate rights and
interests over legal savings deposits of individuals and encourages
individuals’ participation in savings.

In handling savings businesses, savings institutions shall observe the
principles of voluntariness in depositing, freedom of withdrawal, interest on
every deposit and keeping secret for depositors.

Article 6 The People’s Bank of China shall be responsible for the
administration of savings throughout the country.

The People’s Bank of China and its branches shall be responsible for the
approval of savings institutions and savings services, for the coordination of
various savings institutions in their savings businesses and for the mediation
of their disputes, for the supervision and auditing of savings services, and
for correction and punishment of violations of the State laws, regulations and
policies governing savings.

Article 7 The People’s Bank of China may, with the approval of the State
Council, take proper actions in the interest of depositors for the stability
of savings.

Article 8 With the exception of savings institutions, no other unit or
individual may handle savings services.
Chapter II Savings Institutions

Article 9 To establish a savings institution, the principles of unified
planning, convenience for the masses, focusing on efficiency and ensuring
security shall be abided by.

Article 10 To establish a savings institution, a report shall be
submitted to the People’s Bank of China or one of its branches for approval
according to the relevant State provisions, and a Permit for Financial
Business be applied for, unless otherwise provided for by the State laws and
administrative regulations.

Article 11 To establish a savings institution, the following requirements
must be met:

(1) having its own name, organizational structure and place of business;

(2) having no less than four workers qualified for savings services; and

(3) having necessary security and protective equipment.

Article 12 A savings institution may establish its agency with the
approval of the local branch of the People’s Bank of China. Measures for the
administration of savings agencies shall be formulated by the People’s Bank of
China.

Article 13 A savings institution shall conduct its business during its
fixed business hours and shall not suspend business or shorten its business
hours at will.

Article 14 Savings institutions shall ensure the payment of the principal
and interest on savings deposits and shall not illegally refuse payment.

Article 15 Savings institutions shall not resort to unfair means to
absorb savings deposits.
Chapter III Savings Services

Article 16 A savings institution may handle the following RMB savings
services:

(1) current deposits;

(2) time deposits by which a fixed sum may be put in and withdrawn when it
becomes due;

(3) time deposits by which odd money may be put in as savings and a round
sum made up and withdrawn when it becomes due;

(4) time deposits by which the interest may be withdrawn and the principal
remaining till it becomes due;

(5) time deposits by which a round sum may be put in and petty cash be
withdrawn within a fixed time period;

(6) deposits with a current or fixed account at the depositor’s
convenience;

(7) time deposits for a fixed sum of overseas Chinese RMB; and

(8) savings deposits of other kinds approved by the People’s Bank of China.

Article 17 With the approval of foreign exchange control departments, a
savings institution may handle the following foreign currency savings services:

(1) current deposits;

(2) time deposits by which a fixed sum may be put in and withdrawn when it
becomes due; and

(3) foreign currency savings deposits of other kinds approved by the
People’s Bank of China.

The principle and interest on foreign currency savings deposits shall be
paid in foreign currency.

Article 18 In handling a time deposit service, a savings institution may,
at the request of the depositor, handle the automatic renewing of the time
deposit account when it becomes due.

Article 19 Based on the State policies regarding housing reform and
actual needs and with the approval of the local branch of the People’s Bank of
China, a savings institution may handle personal housing savings services.

Article 20 With the approval of the People’s Bank of China or one of its
branches, a savings institution may handle the following financial services:

(1) distributing and cashing securities offered to individual residents
such as State treasury bonds, financial bonds and enterprise bonds;

(2) extending small secured loans on personal time deposit certificates;
and

(3) other financial services.

Article 21 A savings institution may act as an agent issuing wages,
collecting house rents, water and electricity charges, and providing other
services.
Chapter IV Rates and Calculation of Interests on Saving Deposits

Article 22 Rates of interests on savings deposits shall be proposed by
the People’s Bank of China and published with the approval of the State
Council, or shall be fixed and published by the People’s Bank of China with
the authorization of the State Council.

Article 23 Savings institutions shall openly list interest rates of
savings deposits and shall not change them without approval.

Article 24 For an undue time deposit the whole of which is to be
withdrawn ahead of time, the interest shall be calculated at the rate
of current deposits listed openly on the date of withdrawal. If only part of
an undue deposit is to be withdrawn ahead of time, the interest on this part
withdrawn ahead of time shall be calculated at the rate of current deposits
listed openly on the date of withdrawal, and the interest on the remaining
shall, when it becomes due, be calculated at the rate of time deposits listed
openly on the date of the opening of the account.

Article 25 For an overdue time deposit, the interest during the
overdue period shall be calculated at the rate of current deposits listed
openly on the date of withdrawal unless a renewal of the time deposit has been
handled as agreed upon between parties.

Article 26 For a time deposit of which the interest rate has changed
before it becomes due, the interest shall be calculated at the rate of
the time deposit listed openly on the date of the opening of the account.

Article 27 For a current deposit of which the interest rate has changed
during the period in which it was deposited, the interest shall be calculated
at the rate of current deposits listed openly on the date of the settlement of
the interest. If the whole of a current deposit is to be withdrawn, the
interest shall be calculated at the rate of current deposits listed openly on
the date of the closing of the account.

Article 28 Any depositor who thinks the payment of the interest on his
savings deposits is in error shall be enpost_titled to apply for a review by the
savings institution concerned, which shall accept the application and review
the calculation of the interest in time.
Chapter V Withdrawing Ahead of Time, Registration of Loss, Inquiry and
Transfer of Ownership

Article 29 A depositor must hold his deposit certificate and his own
identity certificate when withdrawing ahead of time his undue time deposits.
If another person acts as an agent withdrawing the deposits for the depositor,
the person must hold his own identity certificate.

Article 30 Bankbooks or deposit certificates shall be in the form of
nominated or unnominated certificates. The loss of nominated certificates may
be registered and the loss of unnominated ones may not be registered.

Article 31 A depositor must without delay apply to the savings
institution with which he opened his account to register the loss of his
deposit certificate, bankbook or his seal having its impression on record by
holding his own identity certificate and providing the relevant data such as
the depositor’s name and address, date of the opening of the account, category
and amount of the deposits, and account number. If special circumstances
exist, a depositor may register the loss orally or by letter or by telegram
provided that he complete the formality of registering the loss in writing
within five days.

The savings institution must suspend payment on the savings deposits
concerned upon acceptance of the application for registration. If the savings
deposits has been withdrawn by another person before the acceptance of the
application, the savings institution shall be exempted from the liability for
compensation.

Article 32 Savings institutions and their personnel shall have an
obligation to keep secret the depositors’ savings and relevant information.

Savings institutions shall not inquire into, freeze or allocate savings
deposits on behalf of any unit or individual, unless otherwise provided for by
laws and administrative regulations of the State.

Article 33 If a dispute arising from a savings deposit results in the
transfer of ownership, the savings institution shall handle the formality of
the transfer according to the legally effective written judgments or orders or
conciliation statements made by the people’s court.
Chapter VI Legal Liability

Article 34 If any unit or individual commits any of the following actions
in violation of the provisions of these Regulations, the People’s Bank of
China or one of its branches shall order it or him to make corrections, and
may impose a fine, or order it or him to suspend business operations for
rectification, or revoke the Permit for Financial Business according to the
seriousness of the circumstances. If the circumstances are serious enough to
constitute a crime, the offender shall be investigated for criminal liability.

(1) handling savings services without approval;

(2) establishing a savings institution without approval;

(3) handling a new savings service by a savings institution without
approval;

(4) handling financial businesses not described in these Regulations by a
savings institution without approval;

(5) suspending business or shorten business hours without approval;

(6) absorbing savings deposits by unfair means by a savings institution;

(7) changing interest rates of savings deposits in violation of the State
provisions governing interest rates;

(8) disclosing information concerning a depositor’s savings, or inquiring
into, freezing or allocating savings deposits on others’ behalf without
completing legal procedures; or

(9) committing other actions violating the State laws, administrative
regulations or policies governing savings.

Any violator of the provisions of the second paragraph of Article 3 in
these Regulations shall be punished according to the relevant State provisions.

Article 35 Any party who refuses to accept a decision of punishment may
apply for reconsideration according to the provisions of the Administrative
Reconsideration Regulations. If he refuses to accept the reconsideration
decision, he may bring a lawsuit before a people’s court according to the
Administrative Procedure Law of the People’s Republic of China.

Article 36 In a case where an applicant for reconsideration neither
brings a lawsuit nor performs the decision of reconsideration within a time
limit, the provisions of the Administrative Reconsideration Regulations shall
apply.

Article 37 A savings institution that, in violation of the relevant State
provisions, infringes upon the legitimate rights and interests of depositors
and thereby causes losses to them shall be bear liability for compensation
according to law.
Chapter VII Supplementary Provisions

Article 38 For those time deposits with their accounts opened prior to
the implementation of these Regulations, the interest during the period in
which savings are deposited shall be calculated according to the previous
relevant provisions of the State.

Article 39 The People’s Bank of China shall be responsible for the
interpretation of these Regulations and for the formulation of the
implementation rules.

Article 40 These Regulations shall come into effect on March 1, 1993. The
Rules of the People’s Bank of China for Savings Deposits, promulgated by the
People’s Bank of China on May 28, 1980, shall be invalidated on the same date.

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON AUTHORIZING THE PEOPLE’S CONGRESS OF SHENZHEN CITY AND ITS STANDING COMMITTEE AND THE PEOPLE’S GOVERNMENT OF SHENZHEN CITY TO FORMULATE REGULATIONS AND RULES RESPECTIVELY FOR IMPLEMENTATION IN THE SHENZHEN SPECIAL ECONOMIC ZONE

Category	SPECIAL ECONOMIC ZONES AND COASTAL ECONOMIC DEVELOPMENT ZONES	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	In Force
Date of Promulgation	1992-07-01	Effective Date	1992-07-01

Decision of the Standing Committee of the National People’s Congress on Authorizing the People’s Congress of Shenzhen City and Its Standing Committee and the People’s Government of Shenzhen City to Formulate Regulations and Rules Respectively for Implementation in the Shenzhen Special Economic Zone

(Adopted on July 1, 1992)

In accordance with the Decision of the Second Session of the Seventh
National People’s Congress Regarding the Proposal Submitted for Deliberation
by the State Council on Authorizing Shenzhen City to Formulate Regulations
and Rules for the Shenzhen Special Economic Zone, the 26th Meeting of the
Standing Committee of the Seventh National People’s Congress, having
considered the proposal submitted by the State Council for authorizing the
People’s Congress of Shenzhen City and its Standing Committee and the People’s
Government of Shenzhen City to formulate respectively regulations and rules
for the Shenzhen Special Economic Zone, decides that the People’s Congress of
Shenzhen City and its Standing Committee are authorized to formulate, in light
of the specific conditions and actual needs and pursuant to the provisions of
the Constitution and the basic principles laid down in laws and administrative
regulations and rules, regulations to be implemented in the Shenzhen Special
Economic Zone which shall be submitted to the Standing Committee of the
National People’s Congress, the State Council and the Standing Committee of
the People’s Congress of Guangdong Province for the record, and that the
People’s Government of Shenzhen City is authorized to formulate rules and is
responsible for their implementation in the Shenzhen Special Economic Zone.

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING THE APPROVAL AND TRANSMISSION OF PROPOSALS SUBMITTED BY THE BUREAU OF LEGISLATIVE AFFAIRS OF THE STATE COUNCIL ON MATTERS RELATING TO HEALTH CERTIFICATES OF CHINESE CREW MEMBERS ON BOARD SHIPS CONDUCTING INTERNATIONAL VOYAGES

Category	COMMUNICATIONS AND TRANSPORT	Organ of Promulgation	The General Office of the State Council	Status of Effect	In Force
Date of Promulgation	1992-08-30	Effective Date	1992-08-30

Circular of the General Office of the State Council Concerning the Approval and Transmission of Proposals Submitted by the Bureau of Legislative Affairs of the State Council on Matters Relating to Health Certificates of Chinese Crew Members on Board Ships Conducting International Voyages

APPENDIX: PROPOSALS ON MATTERS RELATING TO HEALTH CERTIFICATES OF CHINESE

(August 30, 1992)

The State Council has approved the Proposals on Matters Relating to Health
Certificates of Chinese Crew Members on Board Ships Conducting International
Voyages, submitted by the Bureau of Legislative Affairs of the State Council,
and hereby transmits them to you for implementation.
APPENDIX: PROPOSALS ON MATTERS RELATING TO HEALTH CERTIFICATES OF CHINESE
CREW MEMBERS ON BOARD SHIPS CONDUCTING INTERNATIONAL VOYAGES

Through repeated consultation with the Ministries of Public Health and
Communications, and with the consent of the two ministries, our Bureau has
made the following proposals on matters relating to health certificates of
Chinese crew members on board ships conducting international voyages:

1. Chinese crew members on board ships conducting international voyages
shall hold their health certificates and show them to the frontier health and
quarantine offices for examination when they leave the country.

The above-mentioned “health certificate” shall, under the supervision of
the administrative department of public health under the State Council, be
printed by the administrative department of communications under the State
Council.

2. Based on the incorporation of proposals from the administrative
department of communications, the items and form of a health certificate shall
be determined and published by the administrative department of public health
under the State Council. Other items of health check-ups for seaworthiness
shall be determined by the administrative department of communications under
the State Council.

3. Health certificates shall be required for Chinese crew members working
on board ships which leave or enter international ports or boundary river
ports of our country.

In cases where they leave the country by other means of transport to meet
a ship, or are sent to work on board a foreign ship, the above-mentioned
persons may, on the strength of the certifications issued by the sending units
and their seamen’s papers, also use the same health certificates to be
examined by the frontier health and quarantine offices.

4. Chinese crew members on board ships conducting international voyages,
except those who engage in the supply of food and drinking water, shall hold
their health certificates to undergo health check-ups in the health and
quarantine offices, or in hospitals at or above the county level, or in other
medical and health institutions qualified for health check-ups and designated
or having already been designated by the administrative department of public
health under the State Council. For those who pass the health check-ups, the
check-up units shall fill in the health certificates with check-up results and
affix their official seals or special seals for health check-ups thereto. Such
health certificates shall become effective immediately upon sealing.

With regard to the health check-ups and visas for crew members of local
fleets, the ships’ companies may reach an agreement with the local health and
quarantine offices through consultation.

5. Health certificates of crew members who engage in the supply of food
and drinking water on ships conducting international voyages shall be issued
by the health and quarantine offices. For those who undergo health check-ups
in the health and quarantine offices, their health certificates shall be
directly issued by the health and quarantine offices. Those who undergo health
check-ups in other health check-up units mentioned in the preceding article
shall bring their laboratory test reports (regarding liver function tests and
faeces sample culture) and chest fluoroscopy reports to the health and
quarantine offices for verification. After the health and quarantine offices
verify health check-up results in such reports according to the items listed
in the health certificates (not including the items of health check-up for
seaworthiness) and issue the health certificates to them, the health
certificates shall become effective.

Under special circumstances, carriers may one day ahead of time apply for
the issuance of health certificates, and the health and quarantine offices may
issue health certificates by boarding ships before joint inspections.

The health and quarantine offices shall promptly issue health certificates
which have been verified up to standard.

6. The term of validity for a health certificate shall be five years. The
term of validity for a health check-up shall be 12 months.

7. If anyone falls under any of the following categories, the health and
quarantine offices may declare a health check-up null and void or refuse to
issue a health certificate.

(1) failing to undergo a health check-up according to the items listed in
the health certificate (not including the items for seaworthiness);

(2) forging a health certificate, or forging or altering health check-up
results;

(3) having an expired health certificate or health check-up results;

(4) undergoing a health check-up in a disqualified unit; or

(5) having a health certificate with its form and items printed not in
accordance with the provisions of the administrative department of public
health under the State Council.

The health and quarantine offices shall have the power to confiscate
health certificates mentioned in Items (2), (3), (4) and (5) and to handle the
cases according to the relevant provisions of laws and regulations.

If the aforesaid matters cannot be found inappropriate, we propose that
the General Office of the State Council, with the approval of the State
Council, transmit them to the Ministries of Public Health and Communications
for implementation.

SETTLEMENT OF LABOUR DISPUTES IN ENTERPRISES REGULATIONS

Regulations of PRC on Settlement of Labour Disputes in Enterprises

(Effective Date:1993.08.01–Ineffective Date:)

CHAPTER I GENERAL RULES CHAPTER II MEDIATION IN ENTERPRISES CHAPTER III ARBITRATION CHAPTER IV RULES OF PUNISHMENT CHAPTER V SUPPLEMENTARY
PROVISIONS

Article 1 The present Regulations are drawn up to properly handle labour disputes in enterprises, protect the legitimate rights and interests
of the enterprise and the workers and employees, maintain the order of normal production and management, develop sound labour relations,
and promote the smooth progress of the reform and the implementation of the open policy.

Article 2 The Regulations are applicable to the following labour disputes between the enterprise and the workers and employees within the territory
of the People’s Republic of China:

(1) Disputes arising out of dismissal, discharge or lay-off of workers and employees by enterprises, or resignation by workers and
employees or leaving their jobs of their own volition;

(2) Disputes concerning implementation of relevant State policies on wages, insurance, welfare, training and labour protection;

(3) Disputes regarding execution of the labour contract;

(4) Disputes that other laws and regulations stipulate should be handled with reference to the regulations.

Article 3 The enterprise and the worker(s) and employee(s) involved shall be the parties to a case of labour dispute.

Article 4 Settlement of labour disputes shall observe the following principles:

(1) Emphasis is given to mediation and prompt handling;

(2) Labour disputes shall be dealt with in accordance with law on a fact-finding basis;

(3) The parties involved are equal before applicable laws.

Article 5 When there are more than three workers and employees with the same grievances as one of the parties, the workers and employees involved
shall nominate their representative to participate in the work of mediation and arbitration.

Article 6 In case of a labour dispute, the parties shall first find solution through negotiations. If the parties are unwilling to go for negotiations
or negotiations fail, the case may be referred to the mediation committee of the enterprise in which the dispute has occurred; if
mediation fails, the case may be referred to the labour dispute arbitration committee for arbitration. The parties may also petition
directly to the labour dispute arbitration committee for arbitration. When one of the parties or both parties refuse to accept the
arbitration award, he or they may bring a lawsuit before the people’s court.

In the course of handling a labour dispute, neither party shall aggravate the dispute.

CHAPTER II MEDIATION IN ENTERPRISES

Article 7 An enterprise may set up a labour dispute mediation committee (hereinafter referred to as mediation committee) to be responsible
for mediation of labour disputes within the enterprise.

The mediation committee shall be composed of the following persons:

(1) Representative(s) of workers and employees;

(2) Representative(s) of the enterprise;

(3) Representative(s) of the enterprise trade union.

The workers’ representatives shall be nominated by the congress of workers’ representatives or the workers’ congress, the enterprise
representatives appointed by the enterprise director or manager, and the enterprise trade union representatives appointed by the
enterprise trade union committee.

The number of members to the mediation committee shall be determined through negotiations between workers’ congress and the enterprise
director or manager, at the proposal of the former. The number of enterprise representatives shall not exceed one third of the total.

Article 8 The post of chairman of the mediation committee shall be taken up by a representative of the enterprise trade union.

The mediation committee shall set up its office at the enterprise trade union committee.

Article 9 In an enterprise without any trade union organization, the establishment and composition of the mediation committee shall be determined
through negotiations between the workers’ representatives and the enterprise representatives.

Article 10 Disputes taken up by the mediation committee shall wind up within 30 days starting from the date of application by the parties; otherwise,
mediation shall be considered unsuccessful.

Article 11 The mediation committee shall observe the policy of voluntariness for both parties during mediation. Agreements reached through mediation
shall be written in a mediation note for voluntary execution by the two parties; if mediation fails, the case may be referred to
the labour dispute arbitration committee within a set time limit.

Article 12 Counties, cities and city districts shall set up labour dispute arbitration committees (hereinafter referred to as arbitration committees).

Article 13 The arbitration committee shall be composed of the following persons:

(1) Representatives of the department in charge of labour administration;

(2) Representatives of the trade union council;

(3) Representatives of the department of overall economic administration appointed by the government.

The members to the arbitration committee must be in odd numbers, and the post of chairman is to be taken up by an official in charge
of the department of labour administration.

The labour dispute settlement section of the department of labour administration shall ensure the secretarial work of the arbitration
committee, and be responsible for dealing with its day-to-day routine.

Article 14 The system of arbitrators and arbitration tribunals shall be adopted by the arbitration committee in the settlement of labour disputes.

Article 15 The arbitration committee may engage personnel from the department in charge of labour administration or from other relevant government
departments, trade union officials, experts and scholars, and lawyers as full-time or part-time arbitrators.

Part-time and full-time arbitrators shall enjoy equal rights in discharging their duties of arbitration.

In executing their duties of arbitration, part-time arbitrators shall receive the support of their own work units.

Article 16 In handling a labour dispute, the arbitration committee shall form an arbitration tribunal which shall be composed of three arbitrators.

A simple labour dispute may be handled by a single arbitrator appointed by the arbitration committee.

The arbitration tribunal may submit major or complicated labour dispute cases to the arbitration committee for deliberation and decision.
The arbitration tribunal must implement the decisions of the arbitration committee.

Article 17 The arbitration committees set up in counties, cities and city districts shall be in charge of handling labour disputes in their
respective administrative areas.

The scope of jurisdiction of the arbitration committees in cities with districts and in such districts in handling labour disputes
shall be decided by the people’s governments of the provinces and autonomous regions.

Article 18 When the enterprise and the worker(s) involved in a dispute are not located in areas under the jurisdiction of the same arbitration
committee, the dispute shall be handled by the arbitration committee located at the place where the worker(s) in question has wage
relations.

Article 19 Any party may mandate one to two lawyers or other agents to act for him in arbitration. The party that mandates others to act for
him in arbitration shall submit to the arbitration committee a Power of Attorney bearing his signature or seal. The Power of Attorney
shall specify clearly the terms and powers of the mandate.

Article 20 A worker with limited capacity to take part in civil cases or without such capacity, or a deceased worker, may be represented in
arbitration proceedings by his legal representative. The arbitration committee may appoint an agent for a worker without a legal
representative.

Article 21 The two parties in dispute may reach a compromise on their own.

Article 22 A third party whose personal interest will be affected by the outcome of a labour dispute may file a petition to participate in the
proceedings or may participate when so notified by the arbitration committee.

Article 23 A party to a labour dispute should petition for arbitration to the arbitration committee in writing within 6 months from the date
when he knows or should know that his rights have been infringed upon.

The arbitration committee shall accept a petition when a party fails to observe the time limit stipulated in the aforesaid clause
due to force majeure or other justifiable reasons.

Article 24 When a party petitions for arbitration to the arbitration committee, the petition shall be submitted to the arbitration committee,
and copies of the petition shall also be submitted in accordance with the number of respondents.

The petition shall specify the following:

(1) the name, occupation, address and work unit of a worker who is a party to the case, or, if the party is an enterprise, its name,
address and legal representative’s name and position;

(2) the claim of arbitration and the facts and grounds on which it is based; and

(3) any evidence as well as the names and addresses of witnesses.

Article 25 Within seven days from the date of receipt of a petition, the arbitration committee shall decide whether to accept it or not. If
the decision is in the affirmative, the arbitration committee shall send a copy of the petition to the respondent and form an arbitration
tribunal. If it is in the negative, the committee shall make the reasons clear.

The respondent shall within 15 days after receipt of the copy of the petition file a bill of defence with related evidence. Delay
or failure by the respondent to file a bill of defence shall not prevent the case from being heard by the committee.

The arbitration committee shall have the authority to request the parties to provide or supplement their evidence.

Article 26 The arbitration tribunal shall notify the parties in dispute four days in advance and in writing the start of its time and place
of hearing. If a party has received the notice in writing but refuses to appear at the hearing without justifiable reasons or walks
out in the course of deliberations without permission of the arbitration tribunal, and if he is the claimant, the arbitration tribunal
may decide that the case is withdrawn; and if it is the respondent, the arbitration tribunal may make an award by default.

Article 27 In handling disputes, the tribunal shall firstly mediate and try to bring the two parties involved together to reach an agreement
on their own on a fact-finding basis. The contents of the agreement shall not contradict existing laws and regulations.

Article 28 In case an agreement is reached through mediation, the arbitration tribunal shall produce a mediation note in accordance with the
contents of the agreement. The note is legally binding as from the date of receipt by the parties.

If no agreement is reached through mediation or if one party retracts before the note is delivered, the arbitration tribunal shall
proceed promptly with a ruling.

Article 29 The arbitration tribunal shall hand out its rulings under the principle of the minority of its members submitting to the majority.
Differing views shall be placed on record.

After the tribunal has made a ruling, an arbitration award shall be produced and sent to the parties in dispute.

Article 30 If a party refuses to accept the arbitration award, he may bring a lawsuit before the people’s court within 15 days from receiving
the arbitration award. Otherwise, the arbitration award shall come into force legally.

Article 31 The legally effective mediation note and arbitration award shall be implemented within the set time limit by both parties. In case
one party fails to implement the note or the award upon expiration of the time limit, the other party may petition with the people’s
court for enforcement of the note or the award.

Article 32 All disputes handled by an arbitration tribunal shall be concluded within 60 days from the date of its setting up. If a case is complicated
requiring an extension of its mandate, it shall be submitted to the arbitration committee for approval, and the extension shall not
exceed 30 days.

Article 33 In the course of handling a labour dispute, the arbitration committee has the authority to consult files, documents and other evidences
pertaining to the case from the units concerned, and also to investigate insiders. Such units and persons shall not refuse.

The arbitration committees may entrust each other with the work of investigation.

If in investigating labour disputes certain information involves secrets or private affairs, the arbitration committee and its personnel
shall keep them confidential.

Article 34 When a party involved in a labour dispute applies for arbitration, he shall pay arbitration fees according to the relevant rules
set by the State.

Arbitration fees include an acceptance fee and a fee for dealing with the case. The rates and procedures for charging arbitration
fees shall be determined by the department in charge of labour administration under the State Council jointly with the departments
in charge of finance administration and commodity prices administration under the State Council.

Article 35 Any member of the arbitration committee and any arbitrator shall himself request withdrawal from his office, and the parties to the
dispute also have the right to request, orally or in writing, that he be withdrawn from his office, in any one of the following circumstances:

(1) if he is one of the parties, or a close relative of a party to the dispute;

(2) if he has a personal interest in the labour dispute; or

(3) if he has some other relations with a party to the labour dispute that might affect the impartial handling of the case.

Article 36 The arbitration committee shall make a prompt decision on a request of withdrawal, and notify the parties orally or in writing.

Article 37 If in the course of handling a labour dispute a party or any related person commits any of the following acts, the arbitration committee
may criticize and admonish him, or order him to correct his mistakes; if the case is serious, he shall be punished according to relevant
provisions of the Regulations of the People’s Republic of China on Administrative Penalties for Public Security; in case of a crime,
he shall be dealt with for his criminal liabilities according to law:

(1) if he interferes with mediation and arbitration, and hinders the arbitration personnel from performing their duties;

(2) if he provides false information;

(3) if he refuses to provide relevant documents, materials and other evidences; or

(4) if he retaliates against the arbitration personnel, assistants, witnesses or assistant executive personnel.

Article 38 If any of the arbitration personnel in the course of handling a labour dispute bends the law for his own benefit, takes bribes, abuses
his powers, or reveals secrets and private affairs of individuals, he shall be dealt disciplinary sanction by his work unit or its
superior organ; if he is an arbitrator, he shall be discharged by the arbitration committee; in case of a crime, he shall be dealt
with for his criminal liabilities according to the law.

CHAPTER V SUPPLEMENTARY PROVISIONS

Article 39 Labour disputes between state organs, institutions and social organizations and their workers, or disputes between individual businesses
and their assistants or apprentices shall be handled with reference to the present Regulations.

Article 40 The Rules of Organization and the Procedure Rules of the arbitration committee shall be formulated by the department in charge of
labour administration under the State Council jointly with relevant departments.

Article 41 The people’s governments of the provinces, autonomous regions and municipalities may formulate their own measures of application
in accordance with the present Regulations.

Article 42 The department in charge of labour administration under the State Council shall be responsible for the interpretation of the Regulations.

Article 43 The present Regulations shall come into force from August 1, 1993. The Provisional Regulations on Settlement of Labour Disputes in
State-Owned Enterprises promulgated by the State Council on July 31,

REGULATIONS GOVERNING PERFORMANCES FOR BUSINESS

Category	CULTURE	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1997-08-11	Effective Date	1997-10-01

Regulations Governing Performances for Business

Chapter I  General Provisions
Chapter II  Examination and Approval of Performing Units and Individual
Chapter III  Control over Performing Activities for Business
Chapter IV  Penalty Provisions
Chapter V  Supplementary Provisions

(Adopted at the 61st Executive Meeting of the State Council on August 1,

1997, and promulgated by Decree No.229 of the State Council of the People’s
Republic of China on August 11, 1997)
Chapter I  General Provisions

Article 1 These Regulations are formulated for the purpose of enhancing
control over performances for business, bringing about the flourishing of
the cause of socialist art and literature, satisfying the requirements of
the people in cultural life and promoting the building of socialist spiritual
civilization.

Article 2 These Regulations shall be observed in engaging in performing
activities for business and in the exercise of supervision and control over
performing activities for business within the territory of the People’s
Republic of China.

Art performing troupes, sites for performances and brokerage agencies for
performances (hereinafter referred to as performing units for business) as
well as individual performers may engage in all types of performing activities
for business only upon acquisition of a licence of performances for business
pursuant to the provisions of these Regulations.

Article 3 Performances for business must adhere to the orientation of
serving the people and socialism, persist in putting social benefits first,
carry forward fine national culture, and enrich and improve people’s
spiritual life.

Article 4 The State encourages and supports performances of fine
national arts, encourages and supports performances for rural areas,
teenagers and children.

Article 5 The State prohibits and bans illegal performing activities,
and safeguards the legitimate rights and interests of performing units and
performers.

Article 6 The administrative department of culture under the State
Council shall be responsible for the work related to the control of
performances for business nationwide. The department of public security
and the department of industry and commerce administration under the State
Council shall exercise control over performing activities according to law
pursuant to the division of their respective duties and responsibilities.

Administrative departments of culture of local people’s governments at
or above the county level shall be responsible for the work related to the
control of performances for business within their respective administrative
areas. The departments of public security and departments of industry and
commerce administration of local people’s governments at or above the county
level shall exercise control over performing activities for business within
their respective administrative areas according to law pursuant to the
division of their respective duties and responsibilities.

Article 7 The State gives rewards to units and individuals having made
outstanding contributions to the cause of performing arts.
Chapter II Examination and Approval of Performing Units and Individual
Performers

Article 8 The administrative department of culture under the State
Council shall be responsible for the formulation of the overall plan for
performing units nationwide; administrative departments of culture of people’s
governments of the provinces, autonomous regions and municipalities directly
under the Central Government should, pursuant to the overall state plan,
determine the aggregate, distribution and structure of performing units
within their respective administrative areas.

Article 9 Establishment of an art performing troupe should fulfil the
following qualifications:

(1) having a unit name, an organization and a constitution;

(2) having performers and staff members with performing skills;

(3) having a fixed address and instruments and equipment commensurate
with the requirement of performances; and

(4) having funds commensurate with its size.

In addition to the qualifications prescribed in the preceding paragraph,
examination and approval of establishment of art performing troupes should
also conform to the plan of the aggregate, distribution and structure of
art performing troupes.

Article 10 For application for the establishment of an art performing
troupe for business, an application should be filed with the administrative
department of culture of the people’s government at or above the county level
pursuant to the authority of examination and approval prescribed by the State;
that which has been approved upon examination and verification shall obtain
a “licence for performances for business”.

The unit having obtained the “licence for performances for business”
should apply to the department of industry and commerce administration for
registration on the strength of the licence and may engage in performing
activities for business only upon obtaining a business licence; however,
art performing troupes whose funds are verified and allocated by the
State are exceptions.

Article 11 Establishment of a site for performances for business should
fulfil the following qualifications:

(1) having a unit name, an organization and a constitution;

(2) having a building suitable for performances, necessary instruments and
equipment and appropriate specialized managers;

(3) with security facilities and hygiene conditions conforming to
prescribed state standards; and

(4) having necessary funds.

Article 12 For application for the establishment of a site for
performances for business, an application should be filed with the
administrative department of culture of the people’s government at or above
the county level pursuant to the authority of examination and approval
prescribed by the State; that which has been approved upon examination
and verification shall obtain a “licence for performances for business”.

The unit having obtained the “licence for performances for business”
should apply to the public security organ for security examination and
approval and to the administrative department of health for the acquisition
of a “hygiene licence” on the strength of the licence, and apply to the
department of industry and commerce administration for registration on the
strength of the licence, and may engage in performing activities for
business at the said site for performances only upon acquisition of a
business licence.

Article 13 Establishment a brokerage agency for performances should
fulfil the following qualifications:

(1) having a unit name, an organization and a constitution;

(2) having competent business departments;

(3) having employees with corresponding professional levels;

(4) having a fixed address and business scope; and

(5) having funds commensurate with its size.

Article 14 For application for the establishment of a brokerage agency
for performances, an application should be filed with the administrative
department of culture of the people’s government at or above the provincial
level pursuant to the authority of examination and approval prescribed by the
State; that which has been approved upon examination and verification shall
obtain a “licence for performances for business”.

Article 15 Performing units for business should have qualifications of
a legal person and acquire the qualifications of a legal person upon
registration after verification and approval according to law and undertake
civil responsibilities independently with all its corporate property.

Article 16 The State prohibits the establishment of art performing
troupes, sites for performances and brokerage agencies for performances
operated by Sino-foreign joint ventures, Sino-foreign cooperative ventures
and foreign capital.

The State permits the reconstruction and new construction of sites for
performances for business with external funds; however, external contributors
shall not take part in operations and management. Specific measures shall be
worked out separately.

Article 17 Individual performers engaging in performing activities for
business should file an application with the administrative department of
culture of the people’s government at or above the county level of the
locality wherein he/she resides pursuant to the authority of examination
and approval prescribed by the State on the strength of personal ID cards
and the certification of the neighborhood office or the village or
township people’s government of the place of domicile; he/she who has been
approved upon examination and verification shall obtain a “licence for
performances for business”.

Article 18 Administrative departments of culture of people’s governments
at or above the county level should make a decision on the approval or
non-approval within 60 days starting from the date of receipt of an
application for the establishment of a performing unit.

Article 19 For change in name, residence, leading person-in-charge or
legal representative by an art performing troupe, or a site for performances,
or a brokerage agency for performances for business, or change in business
scope by a brokerage agency for performances, an application should be filed
with the original licensing organ for going through the formalities of change
in registration.

A performing unit or an individual performer for business not engaging in
performing activities without any justifiable reason in one year shall have
the “licence for performances for business” nullified by the original
licensing organ.
Chapter III Control over Performing Activities for Business

Article 20 The State encourages and supports art performing troupes and
individual performers to go into the midst of the common people and exert
their efforts to create and perform fine programs with unity of ideological
content and artistic content which are highly attractive and have strong
appeal and are welcomed by broad masses of people.

Article 21 The State encourages and supports performing units and
individual performers for business to present free performing activities
to the common people, rural areas and industrial and mining enterprises on a
regular basis.

Article 22 The State prohibits holding of performing activities
containing the following contents:

(1) that which endangers state security, honour and social stability;

(2) that which instigates nationality separation, infringes on minority
nationality customs and habits and disrupts solidarity of nationalities;

(3) that propagates obscenity, pornography and superstition or plays up
violence;

(4) that which performs in ways that are terror-striking, cruel or
ruin performers’ health;

(5) that which attracts audience with physical defects or display of
physical deformities; and

(6) other contents prohibited under provisions of laws and regulations.

Article 23 An art performing troupe for business may organize on its own
performing activities for business of the unit itself, or may organize
performing activities for business in association with other art performing
troupes.

Any unit should obtain the consent of the employer unit in employing
personnel of an art performing troupe to take part in performances of the
unit.

Article 24 Holding of combined performances for business should be
sponsored by a brokerage agency for performances.

Combined performances for business referred to in the preceding paragraph
mean temporary combination of performances for business in addition to
the independent performances of an art performing troupe or combined
performances.

Article 25 For sponsorship of combined performances by a brokerage
agency for performances, a submission shall be made to the department which
issued the “licence for performances for business” for examination and
approval 20 days prior to the date of performance; for holding of
performances in provinces, autonomous regions and municipalities directly
under the Central Government outside the locality wherein the brokerage
agency for performances is located, a submission should be concurrently
made to the relevant administrative department of culture of the people’s
government at or above the county level of the locality wherein the
performances are to be held for examination and approval.

Article 26 An individual performer may take part in performing activities
for business sponsored by an art performing troupe for business or by a
brokerage agency for performances, but must not hold performing activities
for business on his/her own.

Article 27 For holding of national performing activities for business or
holding of performing activities for business enpost_titled with such words as
“China”, “Chinese” or “National”, a submission should be made to the
administrative department of culture under the State Council for examination
and approval.

Article 28 Sponsorship of evaluation and award-giving activities for
cultural and artistic performances shall be handled pursuant to the relevant
state provisions.

Article 29 Invitations to art performing troupes or individuals from the
Hong Kong Special Administrative Region and the regions of Macau and Taiwan
as well as foreign countries for performances for business shall be handled
by brokerage agencies for performances for foreign-related performance
businesses; the sponsor unit should make a submission to the administrative
department of culture under the State Council for examination and approval
30 days prior to the date of performance, and it may sign a formal contract
only upon approval; unless it is provided for otherwise by the State.

An art performing troupe or an individual performer for business
leaving the country for performances for business should make a submission
to the administrative department of culture under the State Council for
approval pursuant to relevant state provisions.

Article 30 An art performing troupe or a brokerage agency for
performances for business sponsoring performances for business should sign
a performance contract with the site of performances, units and individuals
participating in combined performances should sign performance contracts
with the brokerage agency for performances. The performance contract shall
carry the following particulars:

(1) time of performance and number of performances;

(2) place of performance;

(3) leading performers and program contents;

(4) ticketing arrangement of the performance;

(5) mode of final settlement of the revenue and expenditure of the
performance; and

(6) other matters that require to be carried.

Article 31 Parties signing the performance contract should strictly
implement the agreement in the performance contract. A violator of the
agreement in the performance contract should bear responsibility for the
violation according to law.

Causing losses to the audience due to violation of the agreement in
the performance contract should give compensation according to law.

Article 32 For holding of performing activities for business by occupying
a park, or a square, or a street, or a guest house, or a hotel, or a stadium
(indoor stadium) or other sites for non-business performances, a submission
should be made to the administrative department of culture, the public
security organ and other departments concerned of local people’s government
of the locality for approval.

Article 33 On-the-job performers of art performing troupes for business
or teachers and students of specialized art colleges and schools participating
in performing activities outside their own units shall be subject to the
consent of the unit he/she is in. Specific measures shall be worked out by the
administrative department of culture under the State Council.

Article 34 For necessity of change in sponsor unit or holding unit, or
art performing troupe or leading performers, time, place and number of
performance and main contents of program of performance of
a performing activity for business upon approval, a separate report should
be submitted pursuant to the provisions of this Chapter for approval.

Article 35 Sites for performances for business shall not provide services
in site for art performing troupes or individual performers without a “licence
for performances for business” and performing activities for business without
approval.

While holding performances for business, the number of audience a site
for performance accommodates shall not exceed the maximum number of persons
allowed. The site for performance should be responsible for the maintenance
of order during performance and ensure the safety of the audience.

Article 36 Art performing troupes or individual performers for business
shall not suspend performance without any justification or deceive audience
with such falsified means as feigned singing or passing oneself off as others.

Contents of advertisements for performances for business must be true and
lawful, and must not mislead or deceive audience.

Contents of advertisements for performances for business should be subject
to the verification and approval of the examination and approval department of
the performing activities.

Article 37 The ticket price of performances for business and rate for
site rent for the site for performances for business shall observe state
provisions concerning price control.

Article 38 Income accrued from performances by performers shall be taxed
according to law.

Article 39 Revenue from performances at charity shows for donation
shall, excluding the necessary expenditure for costs, be paid to the unit
accepting the donation in full, the sponsor unit and performers (staff
members) must not take remuneration out of it. For organization of
performances for donation for social welfare, a report shall be submitted to
the administrative department of culture at the same level for examination and
approval upon verification and approval of the department of civil affairs of
the local people’s government at or above the county level of the locality.
Chapter IV Penalty Provisions

Article 40 Establishment of a performing unit for business on one’s own
without approval, or engagement in performances for business without
acquisition of a licence for performances for business in violation of the
provisions of these Regulations shall be banned by the administrative
department of culture, with the illegal income confiscated and be
concurrently imposed a fine more than three times and less than five times of
the illegal income; where there is no illegal income, a fine less than RMB
5,000 Yuan may concurrently be imposed.

Article 41 For performances containing contents prohibited under
Article 22 of these Regulations in violation of the provisions of these
Regulations, the administrative department of culture shall direct the
offender to stop the performing activities, confiscate the illegal income;
where the circumstances are serious, the original licensing organ
shall direct the offender to suspend operations for consolidation or revoke
the “licence for performances for business”; violations of provisions of
public security administration shall be subject to penalties for public
security violations by the public security organ; where the offence
constitutes a crime, criminal responsibility shall be investigated
according to law.

Article 42 For sponsorship of combined performances on one’s own or
invitation on one’s own of art performing troupes or individuals from
the Hong Kong Special Administrative Region and the regions of Macau and
Taiwan as well as foreign countries for performances for business in
violation of the provisions of these Regulations, the administrative
department of culture shall direct the offender to stop performing activities,
confiscate the illegal income of the units or individuals participating in
the performances; confiscate the illegal income of the organizer(s) and
concurrently impose a fine more than five times and less then ten times of
the illegal income; where there is no illegal income, a fine more than RMB
5,000 Yuan and less than RMB 20,000 Yuan shall be imposed; where the
circumstances are serious, the original licensing organ shall direct
the offender to suspend operations for consolidation or revoke the “licence
for performances for business”.

Article 43 For suspension of performances without any justification or
practice of fraud and engagement in deceptive performances by such means as
feigned singing or passing oneself off as somebody else in violation of the
provisions of these Regulations, the administrative department of culture
shall issue a criticism of the performer himself/herself in a circular,
confiscate the illegal income and concurrently impose a fine more than
twice and less than five times of the illegal income; where there is no
illegal income, a fine less than RMB 5,000 Yuan may be imposed; where the
circumstances are serious, the offender shall be banned from taking
part in performing activities for business for one year.

Article 44 For reception on one’s own by a site for performances for
business of art performing troupes for business, performances organized by
a brokerage agency without a “licence for performances for business”, or of
performing activities for business without approval in violation of the
provisions of these Regulations, the administrative department of culture
shall direct it to stop the performing activities, confiscate the illegal
income, and concurrently impose a fine more than three times and less than
five times of the illegal income; where the circumstances are serious, the
original licensing organ shall direct it to suspend operations for
consolidation or revoke the “licence for performances for business”.

Article 45 For a site for performances for business causing disorder
during performances or a safety accident in violation of the provisions of
these Regulations, the administrative department of culture shall direct it
to amend and give it a warning; where the circumstances are serious, the
original licensing organ shall direct it to suspend operations for
consolidation or revoke the “licence for performances for business”; for
violations of the provisions of public security administration, the
public security organ shall impose penalties for public security violations
according to law; where the offence constitutes a crime, criminal
responsibility shall be investigated according to law.

Article 46 For embezzlement of revenue from charity performances in
violation of the provisions of these Regulation, the administrative
department of culture shall, in conjunction with the department of civil
affairs, direct the holding unit to hand over the illegal income to the
unit accepting the donation and impose a fine more than three times and less
than five times of the illegal income; where the circumstances are serious,
the original licensing organ shall direct it to suspend operations for
consolidation or revoke the “licence for performances for business”;
where the offence constitutes a crime, criminal responsibility shall be
investigated according to law.

Article 47 For an art performing troupe or a brokerage agency for
performances for business employing on its own members without gaining advance
consent of their employer units or individuals without obtaining a “licence
for performances for business” in violation of the provisions of these
Regulations to participate in performing activities for business, the
administrative department of culture shall administer a warning, and
concurrently impose a fine of more than RMB 500 Yuan and less than RMB
5,000 Yuan; for a unit subject to more than three cumulative administrative
penalties, the original licensing organ shall revoke its “licence for
performances for business”.

Article 48 For an individual participating in performances for business
on one’s own without the consent of the employer unit in violation of the
provisions of these Regulations, the administrative department of culture
shall direct the person in question to stop performing activities, confiscate
the illegal income, impose a fine of more than 100% and less than 300% of the
illegal income and impose administrative sanctions according to law.

Article 49 For an individual performer holding on one’s own performances
for business in violation of the provisions of these Regulations, the
administrative department of culture shall direct the person in question to
stop performing activities, confiscate the illegal income, and concurrently
impose a fine of more than RMB 5,000 Yuan and less than RMB 10,000 Yuan;
where the circumstances are serious, the original licensing organ shall
revoke the “licence for performances for business”.

Article 50 For leasing or transfer of a “licence for performances for
business” in violation of the provisions of these Regulations, the
administrative department of culture shall direct the violator to stop
the illegal activities, confiscate the illegal income, and impose a
fine of more than three times and less than five times of the illegal income;
where there is no illegal income, a fine of less than RMB 5,000 Yuan may
concurrently be imposed; where the circumstances are serious, the
original licensing organ shall revoke the “licence for performances for
business”.

Article 51 Performances infringing on the copyright of others shall be
dealt with pursuant to the provisions of the Copyright Law of the People’s
Republic of China.

Violations of state laws and regulations governing industry and commerce,
taxation and public health administration shall be penalized by the
departments of administration concerned according to law.

Article 52 Administrative departments of culture and their functionaries
infringing on the legitimate rights and interests of art performing troupes
or individual performers, sites for performances and brokerage agencies for
performances or abusing their power, neglecting their duties, indulging in
self-seeking misconduct, taking part in or covering up illegal performing
activities in violation of the provisions of laws and regulations constituting
a criminal offence shall be investigated of the criminal responsibilities
according to law; where the offence does not constitute a crime,
administrative sanctions shall be imposed according to law.
Chapter V Supplementary Provisions

Article 53&nb

CIRCULAR OF THE TARRIF COMMISSION OF THE STATE COUNCIL AND MINISTRY OF FINANCE CONCERNING ISSUING THE INTERIM PROVISIONS ON IMPORT TAXES ON ARTICLES TAKEN INTO CHINA BY FOREIGNERS PERMANENTLY RESIDING IN CHINA

The Tariff Commission of the State Council, the Ministry of Finance

Circular of the Tarrif Commission of the State Council and Ministry of Finance concerning Issuing the Interim Provisions on Import
Taxes on Articles Taken into China by Foreigners Permanently Residing in China

ShuiWeiHui[1999]No.5

January 7,1999

General Administration of Customs:

The Interim Provisions on Import Taxes on Articles Taken Into China by Foreigners Permanently Residing in China,adopted by the State
Council,is now printed and distributed to you for issuing before March 1,1999 and promulgating on April 1, 1999. Attachment:Interim Provisions on Import Taxes on Articles Taken into China by Foreigners Permanently Residing in China

Article 1

These Provisions reformulated in order to implement opening-up policy, strengthen international exchange and promote the development
of foreign trade and economy.

Article 2

For permanent resident offices established by foreign enterprises, news agencies, economic and trade organizations, cultural associations
and foreign legal persons upon approval by competent departments of the People’s Republic of China, if their permanent residents
such as foreign citizens, overseas Chinese and dwellers form Hong Kong, Macao and Taiwan (including their spouses and minor children
living with them) as well as other permanent residents (hereinafter referred to as permanent residents), who have been allowed to
enter into China and have lived in China for more than one year, import articles for self use, these Provisions shall be applied.
These persons include:

(1)

permanent residents in permanent resident offices established in China by foreign enterprises, economic, trade and cultural organizations;

(2)

permanent residents in permanent resident offices established in China by foreign non-government organizations of economic, trade
and cultural associations;

(3)

permanent correspondents of permanent foreign news agencies in China;

(4)

permanent foreign residents in Chinese-foreign equity joint ventures, cooperative joint ventures and wholly foreign-funded enterprises
in China;

(5)

foreign experts (including experts from Hong Kong, Macao and Taiwan) and overseas Chinese experts who have been long working in China;

(6)

foreign students and overseas Chinese students who have been long studying in China.

Article 3

Articles for self use such as household pickup camera, camera, portable radio cassette player, portable laser phonograph and portable
computer taken into China by the six categories of permanent residents mentioned above who live in China for more than one year (i.e.
their work visas or study visas are valid for more than one year) when they enter into China for the first time during the term of
validity of their visas are exempted from import taxes, upon the examination and verification by the competent Customs at the places
where they are situated, with the limit of only one for each variety; taxes shall be levied according to the provisions on articles
exceeding the limit.

Article 4

Teaching and researching articles such as books, materials, instruments for scientific research, tools, samples and reagents taken
into China by foreign experts (including experts from Hong Kong, Macao and Taiwan) and overseas Chinese experts conforming to the
provisions of Article 2 are exempted from import taxes within the reasonable number for self use.

Article 5

Articles other than those as stipulated in Articles 3 and 4 taken into China by above-mentioned foreigners during the period of living,
working and studying in China shall be handled in accordance with the Measures of the Customs of the People’s Republic of China for
Supervision and Control over Belongs and Articles Carried by Passengers Entering or Exiting China.

Article 6

Imported duty-free articles prescribed above shall be supervised and controlled by the Customs according to its relevant provisions
on duty-free import articles.

Article 7

Articles taken into China by permanent residents (including their spouses and minor children coming with them and residing in China)
working for embassies ( or consulates) of foreign countries (including regions) in China, special organizations of the United Nations
and permanent resident (representative) offices of international organizations shall be handled in accordance with current provisions.

Article 8

If there is any divergence between previous policies and provisions and these Provisions, these Provisions shall prevail.

Article 9

The General Administration of Customs are to formulate implementing rules in accordance with these Provision.

Article 10

These Provision take effect as of April 1, 1999.

The Tariff Commission of the State Council, the Ministry of Finance
1999-01-07

CONTRACT LAW OF THE PEOPLE’S REPUBLIC OF CHINA

The National People’s Congress

Order of the President of the People’s Republic of China

No.15

Contract Law of the People’s Republic of China has been adopted at the Second Session of the Ninth National People’s Congress on March
15, 1999, and is hereby promulgated, it will come into force as of October 1, 1999.

President of the People’s Republic of China Jiang Zemin

March 15, 1999

Contract Law of the People’s Republic of China

General Provisions

Chapter 1 General Provisions

Article 1

This Law is enacted in order to protect the lawful rights and interests of the contracting parties, to maintain social and economic
order, and to promote the process of socialist modernization.

Article 2

A contract in this Law refers to an agreement among natural persons, legal persons or other organizations as equal parties for the
establishment, modification of a relationship involving the civil rights and obligations of such entities.

Agreements concerning personal relationships such as marriage, adoption, guardianship, etc. shall be governed by the provisions in
other laws.

Article 3

Contracting parties shall have equal legal status, and no party may impose its will on the other party.

Article 4

The parties have the right to lawfully enter into a contract of their own free will in accordance with the law, and no unit or individual
may illegally interfere therewith.

Article 5

The parties shall adhere to the principle of fairness in deciding their respective rights and obligations.

Article 6

The parties shall observe the principle of honesty and good faith in exercising their rights and performing their obligations.

Article 7

In concluding and performing a contract, the parties shall comply with the laws and administrative regulations, respect social ethics,
and shall not disrupt the social and economic order or impair the public interests.

Article 8

A lawfully established contract shall be legally binding on the parties thereto, each of whom shall perform its own obligations in
accordance with the terms of the contract, and no party shall unilaterally modify or terminate the contract.

The contract established according to law is protected by law.

Chapter 2 Conclusion of Contracts

Article 9

In entering into a contract, the parties shall have appropriate capacities for civil rights and civil acts.

A party may appoint an agent to enter into a contract on its behalf in accordance with the law.

Article 10

The parties may use written, oral or other forms in entering into a contract.

A contract shall be in written form if the laws or administrative regulations so provide. A contract shall be concluded in written
form if the parties so agree.

Article 11

“Written form” refers to a form such as a written contractual agreement, letter, electronic data text(including a telegram, telex,
fax, electronic data exchange and e-mail)that can tangibly express the contents contained therein.

Article 12

The contents of a contract shall be agreed upon by the parties, and shall generally contain the following clauses:

(1)

post_titles or names and domiciles of the parties;

(2)

subject matter;

(3)

quantity;

(4)

quality;

(5)

price or remuneration;

(6)

time limit, place and method of performance;

(7)

liability for breach of contract; and

(8)

method to settle disputes.

The parties may conclude a contract by reference to a model text of each kind of contract.

Article 13

The parties shall conclude a contract in the form of an offer and an acceptance.

Article 14

An offer is an expression of an intent to enter into a contract with another person. Such expression of intent shall comply with the
following:

(1)

its contents shall be specific and definite;

(2)

it indicates that the offeror will be bound by the expression of intent in case of acceptance by the offeree.

Article 15

An invitation for offer is an expression of an intent to invite other parties to make offers thereto. Mailed price lists, public notices
of auction and tender, prospectuses and commercial advertisements, etc. are invitations for offer.

Where the contents of a commercial advertisement meet the requirements for an offer, it shall be regarded as an offer.

Article 16

An offer becomes effective when it reaches the offeree.

If a contract is concluded through data-telex, and a recipient designates a specific system to receive the date-telex, the time when
the data-telex enters such specific system shall be the time of arrival; if no specific system is appointed, the time when the data-telex
first enters any of the recipient’s systems shall be regarded as the time of arrival.

Article 17

An offer may be withdrawn. The withdrawal notice shall reach the offeree before or at the same time when the offer arrives.

Article 18

An offer may be revoked. The revocation notice shall reach the offeree before it has dispatched a notice of acceptance.

Article 19

An offer may not be revoked, if

(1)

the offeror indicates a fixed time for acceptance or otherwise explicitly states that the offer is irrevocable; or

(2)

the offeree has reasons to rely on the offer as being irrevocable and has made preparation for performing the contact.

Article 20

An offer shall lose efficacy under any of the following circumstances:

(1)

the notice of rejection reaches the offeror;

(2)

the offeror revokes the offer in accordance with the law;

(3)

the offeree fails to dispatch an acceptance before the expiration of the time limit for acceptance;

(4)

the offeree makes substantial changes to the contents of the offer.

Article 21

An acceptance is the expression of an intention to by the offeree to assent to the offer.

Article 22

The acceptance shall be made in the form of a notice, except where acceptance may be made by an act on the basis of customary business
practice or as expressed in the offer.

Article 23

An acceptance shall reach the offeror within the time limit prescribed in the offer.

Where no time limit is prescribed in the offer, the acceptance shall reach the offeror in accordance with the following provisions:

(1)

if the offer is made in dialogues, the acceptance shall be made immediately unless otherwise agreed upon by the parties;

(2)

If the offer is made in forms other than a dialogue, the acceptance shall reach the offeror within a reasonable period of time.

Article 24

Where an offer is made by letter or telegram, the time limit for acceptance shall accrue from the date shown in the letter or from
the date on which the telegram is handed in for dispatch. If no such date is shown in the letter, it shall accrue from the postmark
date on the envelope. Where an offer is made by means of instantaneous communication, such as telephone or facsimile, etc. the time
limit for acceptance shall accrue from the moment that the offer reaches the offeree.

Article 25

A contract is established when the acceptance becomes effective.

Article 26

An acceptance becomes effective when its notice reaches the offeror. If notice of acceptance is not required, the acceptance shall
become effective when an act of acceptance is performed in accordance with transaction practices or as required in the offer.

Where a contract is concluded in the form of date-telex, the time of arrival of an acceptance shall be governed by the provisions
of Paragraph 2, Article 16 of this Law.

Article 27

An acceptance may be withdrawn, but a notice of withdrawal shall reach the offeror before or at the same time when the notice of acceptance
reaches the offeror.

Article 28

Where an offeree makes an acceptance beyond the time limit for acceptance, the acceptance shall be a new offer except that the offeror
promptly informs the offeree of the effectiveness of the said acceptance.

Article 29

If the offeree dispatched the acceptance within the time limit specified for acceptance, and under normal circumstances the acceptance
would have reached the offeror in due time, but due to other reasons the acceptance reaches the offeror after the time limit for
acceptance has expired, such acceptance shall be effective, unless the offeror notifies the offeree in a timely manner that it does
not accept the acceptance due to the failure of the acceptance to arrive within the time limit.

Article 30

The contents of an acceptance shall comply with those of the offer. If the offeree substantially modifies the contents of the offer,
it shall constitute a new offer. The modification relating to the subject matter, quality, quantity, price or remuneration, time
or place or method of performance, liabilities for breach of contract and method of dispute resolution, etc. shall constitute the
substantial modification of an offer.

Article 31

If the acceptance does not substantially modifies the contents of the offer, it shall be effective, and the contents of the contract
shall be subject to those of the acceptance, except as rejected promptly by the offeror or indicated in the offer that an acceptance
may not modify the offer at all.

Article 32

Where the parties conclude a contract in written form, the contract is established when it is signed or sealed by the parties.

Article 33

Where the parties conclude the contract in the form of letters or data-telex, etc., one party may request to sign a letter of confirmation
before the conclusion of the contract. The contract shall be established at the time when the letter of confirmation is signed.

Article 34

The place of effectiveness of an acceptance shall be the place of the establishment of the contract.

If the contract is concluded in the form of data-telex, the main business place of the recipient shall be the place of establishment.
If the recipient does not have a main business place, its habitual residence shall be considered to be the place of establishment.
Where the parties agree otherwise, such agreement shall apply.

Article 35

Where the parties conclude a contract in written form, the place where both parties sign or affix their seals on the contract shall
be the place of establishment.

Article 36

Where a contract is to be concluded in written form as required by relevant laws and administrative regulations or as agreed by the
parties, and the parties failed to conclude the contract in written form, but one party has performed the principal obligation and
the other party has accepted it, the contract is established.

Article 37

Where a contract is to be concluded in written form, if one party has performed its principal obligation and the other party has accepted
it before signing or sealing of the contract, the contract is established.

Article 38

Where the State has issued a mandatory plan or a State purchasing order based on necessity, the relevant legal persons and the other
organizations shall conclude a contract between them in accordance with the rights and obligations as stipulated by the relevant
laws and administrative regulations.

Article 39

Where standard terms are adopted in concluding a contract, the party supplying the standard terms shall define the rights and obligations
between the parties abiding by the principle of fairness, and shall inform the other party to note the exclusion or restriction of
its liabilities in a reasonable way, and shall explain the standard terms upon request by the other party.

Standard terms are clauses that are prepared in advance for general and repeated use by one party, and which are not negotiated with
the other party when the contract in concluded.

Article 40

When standard terms are under the circumstances stipulated in Articles 52 and 53 of this Law, or the party which supplies the standard
terms exempts itself from its liabilities, increases the liabilities of the other party, and deprives the material rights of the
other party, the terms shall be invalid.

Article 41

If a dispute over the understanding of the standard terms occurs, it shall be interpreted in accordance with common understanding.
Where there are two or more kinds of interpretation, an interpretation unfavorable to the party supplying the standard terms shall
prevail. Where the standard terms are inconsistent with non-standard terms, the latter shall prevail.

Article 42

The party shall be liable for damage if it is under one of the following circumstances in concluding a contract and thus causing losses
to the other party:

(1)

pretending to conclude a contract, and negotiating in bad faith;

(2)

deliberately concealing important facts relating to the conclusion of the contract or providing false information;

(3)

performing other acts which violate the principle of good faith.

Article 43

A trade secret the parties learn in concluding a contract shall not be disclosed or improperly used, no matter the contract is established
or not. If the party discloses or improperly uses such trade secret and thus causing loss to the other party, it shall be liable
for damages.

Chapter 3 Validity of Contracts

Article 44

The contract established according to law becomes effective upon its establishment.

With regard to contracts that are subject to approval or registration as stipulated by relevant laws or administrative regulations,
the provisions thereof shall be followed.

Article 45

The parties may agree on that the effectiveness of a contract be subject to certain conditions. A contract whose effectiveness is
subject to certain conditions shall become effective when such conditions are accomplished. The contract with dissolving conditions
shall become invalid when such conditions are satisfied.

If a party improperly prevent the satisfaction of a condition for its own interests, the condition shall be regarded as having been
accomplished. If a party improperly facilitates the satisfaction of a condition, such condition shall be regarded as not to have
been satisfied.

Article 46

The parties may agree on a conditional time period as to the effectiveness of the contract. A contract subject to an effective time
period shall come into force when the period expires. A contract with termination time period shall become invalid when the period
expires.

Article 47

A contract concluded by a person with limited civil capacity of conduct shall be effective after being ratified afterwards by the
person’s statutory agent, but a pure profit-making contract or a contract concluded which is appropriate to the person’s age, intelligence
or mental health conditions need not be ratified by the person’s statutory agent.

The counterpart may urge the statutory agent to ratify the contract within one month. It shall be regarded as a refusal of ratification
that the statutory agent does not make any expression. A bona fide counterpart has the right to withdraw it before the contract is
ratified. The withdrawal shall be made by means of notice.

Article 48

A contract concluded by an actor who as no power of agency, who oversteps the power of agency, or whose power of agency has expired
and yet concludes it on behalf of the principal, shall have no legally binding force on the principal without ratification by the
principal, and the actor shall be held liable.

The counterpart may urge the principal to ratify it within one month. It shall be regarded as a refusal of ratification that the principal
does not make any expression. A bona fide counterpart has the right to withdraw it before the contract is ratified. The withdrawal
shall be made by means of notice.

Article 49

If an actor has no power of agency, oversteps the power of agency, or the power of agency has expired and yet concludes a contract
in the principal’s name, and the counterpart has reasons to trust that the actor has the power of agency, the act of agency shall
be effective.

Article 50

Where a statutory representative or a responsible person of a legal person or other organization oversteps his/her power and concludes
a contract, the representative act shall be effective except that the counterpart knows or ought to know that he/she is overstepping
his/her powers.

Article 51

Where a person having no right to disposal of property disposes of other persons’ properties, and the principal ratifies the act afterwards
or the person without power of disposal has obtained the power after concluding a contract, the contract shall be valid.

Article 52

A contract shall be null and void under any of the following circumstances:

(1)

a contract is concluded through the use of fraud or coercion by one party to damage the interests of the State;

(2)

malicious collusion is conducted to damage the interests of the State, a collective or a third party;

(3)

an illegitimate purpose is concealed under the guise of legitimate acts;

(4)

damaging the public interests;

(5)

violating the compulsory provisions of laws and administrative regulations.

Article 53

The following exception clauses in a contract shall be null and void:

(1)

those that cause personal injury to the other party;

(2)

those that cause property damages to the other party as result of deliberate intent or gross negligence.

Article 54

A party shall have the right to request the people’s court or an arbitration institution to modify or revoke the following contracts:

(1)

those concluded as a result of significant misconception;

(2)

those that are obviously unfair at the time when concluding the contract.

If a contract is concluded by one party against the other party’s true intentions through the use of fraud, coercion, or exploitation
of the other party’s unfavorable position, the injured party shall have the right to request the people’s court or an arbitration
institution to modify or revoke it.

Where a party requests for modification, the people’s court or the arbitration institution may not revoke the contract.

Article 55

The right to revoke a contract shall extinguish under any of the following circumstances:

(1)

a party having the right to revoke the contract fails to exercise the right within one year from the day that it knows or ought to
know the revoking causes;

(2)

a party having the right to revoke the contract explicitly expresses or conducts an act to waive the right after it knows the revoking
causes.

Article 56

A contract that is null and void or revoked shall have no legally binding force ever from the very beginning. If part of a contract
is null and void without affecting the validity of the other parts, the other parts shall still be valid.

Article 57

If a contract is null and void, revoked or terminated, it shall not affect the validity of the dispute settlement clause which is
independently existing in the contract.

Article 58

The property acquired as a result of a contract shall be returned after the contract is confirmed to be null and void or has been
revoked; where the property can not be returned or the return is unnecessary, it shall be reimbursed at its estimated price. The
party at fault shall compensate the other party for losses incurred as a result therefrom. If both parties are fault, each party
shall respectively be liable.

Article 59

If the parties have maliciously conducted collusion to damage the interests of the State, a collective or a third party, the property
thus acquired shall be turned over to the State or returned to the collective or the third party.

Chapter 4 Performance of Contracts

Article 60

Each party shall fully perform its own obligations as agreed upon.

The parties shall abide by the principle of good faith, and perform obligations of notification, assistance, and confidentiality,
etc. in accordance with the nature and purpose of the contract and the transaction practice.

Article 61

Where, after the contract becomes effective, there is no agreement in the contract between the parties on such contents as quality,
price or remuneration, or place of performance etc., or such agreement is ambiguous, the parties may agree upon supplementary terms
through consultation; if a supplementary agreement cannot be reached, such terms shall be determined in accordance with the relevant
provisions of the contract or the transaction practices.

Article 62

Where certain contents agreed upon by the parties in the contract are ambiguous and cannot be determined in accordance with the provisions
in Article 61 of this Law, the following provisions shall be applied:

(1)

if quality requirement is not clear, performance shall be in accordance with the state standard or industry standard; absent any state
or industry standard, performance shall be in accordance with the customary standard or any particular standard consistent with the
purpose of the contract;

(2)

if price or remuneration is not clear, performance shall be in accordance with the prevailing market price at the place of performance
at the time the contract was concluded, and if adoption of a price commissioned by the government or based on government issued pricing
guidelines is required by law, such requirement applies;

(3)

where the place of performance is not clear, if the obligation is payment of money, performance shall be at the place where the payee
is located; if the obligation is delivery of immovable property, performance shall be at the place where the immovable property is
located; for any other subject matter, performance shall be effected at the place of location of the party fulfilling the obligations.

(4)

if the time of performance is not clear, the obligor may perform, and the obligee may require performance, at any time, provided that
the other party shall be given the time required for preparation;

(5)

if the method of performance is not clear, performance shall be rendered in a manner which is conducive to realizing the purpose of
the contract;

(6)

if the responsibility for the expenses of performance is not clear, the party fulfilling the obligations shall bear the expenses.

Article 63

Where the government-fixed price or government-directed price is followed in a contract, if the said price is readjusted within the
time limit for delivery as stipulated in the contract, the payment shall be calculated according to the price at the time of delivery.
Where a party delays in delivering the subject matter, the original price shall be adopted if the price rises; and the new price
shall be adopted if the price falls. Where a party delays in taking delivery of the subject matter or making payment, the new price
shall be adopted if the price rises, and the original price shall be adopted if the price falls.

Article 64

Where the parties agree that the obligor shall perform the obligations to a third party, and the obligor fails to perform its obligations
to such third party or its performance of the obligations is not in conformity with the agreement, the obligor shall be liable to
the obligee for breach of contract.

Article 65

Where the parties agree that a third party performs the obligations to the obligee, and the third party fails to perform the obligations
or the performance is not in conformity with the agreement, the obligor shall be liable to the obligee for breach of contract.

Article 66

Where both parties have obligations toward one another and there is no order of priority in respect of the performance of obligations,
the parties shall perform the obligations simultaneously. Each party has the right to reject any demand by the other party for performance
prior to the performance by the other party. If the performance of the obligations of the party who is to perform first is not in
conformity with the agreement, the party who is perform later has the right to reject the other party’s demand for corresponding
performance.

Article 67

Where both parties have obligations toward each other and there is an order of priority in respect of the performance, and the party
who is to perform first fails to perform, the party who is to perform later has the right to reject the other party’s demand for
performance. If the performance of the obligations of the party who is to perform first is not in conformity with the agreement,
the party who is to perform later has the right to reject the other party’s demand for corresponding performance.

Article 68

The party required to perform first may suspend its performance if it has conclusive evidence showing that the other party is under
any of the following circumstances:

(1)

its business has seriously deteriorated;

(2)

it has engaged in transfer of assets or withdrawal of funds for the purpose of evading debts;

(3)

it has lost its business creditworthiness;

(4)

it is in any other circumstance which will or may cause it to lose its ability to perform.

Where a party suspends performance without conclusive evidence, it shall be liable for breach of contract.

Article 69

If a party suspends its performance in accordance with the provisions of Article 68 of this Law, it shall timely notify the other
party. If the other party provides appropriate assurance for its performance, the party shall resume performance. After performance
was suspended, if the other party fails to regain its ability to perform and fails to provide appropriate assurance within a reasonable
time, the suspending party may terminate the contract.

Article 70

Where the obligee fails to notify the obligor of its separation, merger, or change of the domicile, thereby making it difficult for
the obligor to perform its obligations, the obligor may suspend its performance or escrow the subject matter.

Article 71

The obligee may reject the obligor’s advance performance of its obligations, except that the advance performance does not harm the
obligee’s interests.

Any additional expense incurred by the obligee due to the obligor’s advance performance of its obligations shall be borne by the obligor.

Article 72

An obligee may reject the obligor’s partial performance, except that the partial performance of its obligations does not harm the
obligee’s interests.

Any additional expense incurred by the obligee due to the obligor’s partial performance of its obligations shall be borne by the obligor.

Article 73

Where the obligor is remiss in exercising its due creditor’s right, thereby harming the obligee’s interests, the obligee may petition
the People’s Court for subrogation in its own name, except that the creditor’s right exclusively belongs to the obligor.

The extent to which the subrogation rights can be exercised is limited to the obligee’s rights. The expenses necessary for the obligee
to exercise such subrogation rights shall be borne by the obligor.

Article 74

Where the obligor waives its creditor’s right against a third party that is due or assigns its property without reward, thereby harming
the obligee’s interests, the obligee may petition the People’s Court for cancellation of the obligor’s act. Where the obligor assigns
its property at a low price which is manifestly unreasonable, thereby harming the obligee’s interests, and the assignee is aware
of the situation, the obligee may also petition the People’s Court for cancellation of the obligor’s act.

The extent to which the right to cancel can be exercised is limited to the rights of the obligee. The expenses necessary for the obligee
to exercise the right to cancel shall be borne by the obligor.

Article 75

The right to cancel shall be exercised within one year form the date the obligee knows or should have known of the matter for cancellation.
Such right to cancel shall lapse if the obligee fails to exercise such rights within five years from the date of the occurrence of
such act.

Article 76

Once a contract becomes effective, a party may not refuse to perform its obligations thereunder due to a change in its name, or its
legal representative, the person in charge, or the person handling the contract.

Chapter 5 Modification and Assignment of Contracts

Article 77

A contract may be modified if the parties reach a consensus through consultation.

If the laws or administrative regulations so provide, approval and registration procedures for such modification shall be gone through
in accordance with such provisions.

Article 78

Where an agreement by the parties on the contents of a modification is ambiguous, the contract shall be presumed as not having been
modified.

Article 79

The obligee may assign its rights under a contract, in whole or in part, to a third party, except under the following circumstances:

(1)

such rights may not be assigned in light of the nature of the contract;

(2)

such rights may not be assigned according to the agreement between the parties;

(3)

such rights may not be assigned according to the provisions of the laws.

Article 80

Where the obligee assigns its rights, it shall notify the obligor. Such assignment will have no effect on the obligor without notice
thereof.

A notice by the obligee to assign its rights shall not be revoked, unless such revocation is consented to by the assignee.

Article 81

Where the obligee assigns its right, the assignee shall acquire the collateral rights related to the principal rights, except that
the collateral rights exclusively belong to the obligee.

Article 82

Upon receipt of the notice of assignment of rights, the obligor may assert against the assignee any defenses it has against the assignor.

Article 83

Upon receipt by the obligor of the notice of assignment of rights, the obligor shall have vested rights against the assignor, and
if the rights of the obligor vest prior to or at the same time as the assigned rights, the obligor may claim an offset against the
assignee.

Article 84

Where the obligor delegates its obligations under a contract in whole or in part to a third party, such delegation shall be subject
to the consent of the obligee.

Article 85

Where the obligor delegates its obligation, the new obligor may exercise any defense that the original obligor had against the obligee.

Article 86

Where the obligor delegates its obligation, the new obligor shall assume the incidental obligations related to the main obligations,
except that the obligations exclusively belong to the original obligor.

Article 87

Where the laws or administrative regulations stipulate that the assignment of rights or transfer of obligations shall undergo approval
or registration procedures, such provisions shall be followed.

Article 88

Upon the consent of the other party, one party may transfer its rights together with its obligations under contract to a third party.

Article 89

REGULATIONS ON STATE SCIENCE AND TECHNOLOGY PRIZES

Category	SCIENCE AND TECHNOLOGY	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1999-05-23	Effective Date	1999-05-23

Regulations on State Science and Technology Prizes

Chapter 1  General Principles
Chapter 2  The Establishment of State Science and Technology Prizes
Chapter 3  Evaluation and Conferment of State Science and Technology Prizes
Chapter 4  Penalty Provisions
Chapter 5  Supplementary Provisions

(Adopted at the Sixteenth Executive Meeting of the State Council on April 28, 1999, promulgated by Decree No. 265 of the State Council
of the People’s Republic of China on May 23, 1999)

Chapter 1  General Principles

Article 1 These Regulation are formulated in order to prize citizens and organizations who have made remarkable contributions to
the scientific and technological progress activities, mobilize the enthusiasm and creativity of scientific and technical workers,
promote the development of science and technology endeavors, and boost the overall national strength.

Article 2 The State Council establishes the following State science and technology prizes:

(1) State Highest Science and Technology Prize;

(2) State Natural Science Prize;

(3) State Technological Invention Prize;

(4) State Scientific and Technological Progress Prize;

(5) International Scientific and Technological Cooperation Prize of the People’s Republic of China.

Article 3 The State science and technology prizes follow the guideline of valuing knowledge and respecting talents.

Article 4 The State maintains the solemnity of the State science and technology prizes.

The evaluation and grant of the State science and technology prizes shall not be illegally interfered by any
organizations or individuals.

Article 5 The administrative department of science and technology under the State Council is responsible for organizing the evaluation
of State science and technology prizes.

Article 6 The State establishes the State Science and Technology Prizes Committee, which invites experts and scholars in relevant
fields to form an Evaluation Committee that are responsible for evaluating the State science and technology prizes according to the
provisions of these Regulations.

The candidates for members of the State Science and Technology Prizes Committee shall be proposed by the administrative
department of science and technology of the State Council, and then submitted to the State Council for approval.

Article 7 The establishment of society-oriented science and technology prizes by social non-governmental sectors shall be through
registration procedures with administrative departments of science and technology. The specific measures are to be formulated by
the administrative department of science and technology of the State Council.

Non-governmental sectors establishing society-oriented science and technology prizes upon registration shall
not charge any fees in prizeing activities.
Chapter 2 The Establishment of State Science and Technology Prizes

Article 8 The State Highest Science and Technology Prize is granted to the following scientific and technical workers:

(1) those who have made great breakthroughs at the frontier of contemporary science and technology or who
have made remarkable contributions to the development of science and technology.

(2) those who have created great economic or social profits through innovation of science and technology,
transformation of scientific and technological results, and industrialization of high-tech.

The State Highest Science and Technology Prize is granted to no more than 2 persons each year.

Article 9 The State Natural Science Prize is granted to citizens who have made significant scientific discoveries in illuminating
natural phenomena, characteristics and laws in fundamental research and applied fundamental research.

The significant scientific discoveries mentioned in the preceding paragraph shall meet the following conditions:

(1) predecessors have not yet discovered or illuminated them;

(2) they have significant scientific value;

(3) they have been acknowledged by both domestic and foreign natural science circles.

Article 10 The State Technological Invention Prize is granted to citizens who have made significant technological inventions by applying
scientific and technological knowledge to achieve products, technologies, materials and its systems.

The significant technological inventions mentioned n the preceding paragraph shall meet the following conditions:

(1) predecessors have not yet invented them or made them public;

(2) they possess innovativeness and creativeness;

(3) they can bring remarkable economic and social benefits after implementation.

Article 11 The State Scientific and Technological Progress Prize is granted to the following citizens and organizations that have
made remarkable contributions to the application and dissemination of advanced scientific and technological results and the accomplishment
of significant scientific and technological projects, plans and programs:

(1) those who, in the implementation of technological development programs, have accomplished significant
scientific and technological innovations, or transformation of scientific and technological results, thus creating remarkable economic
profits;

(2) those who, in the implementation of social and public interests programs, have been engaged
in fundamental scientific and technological work and in scientific and technological endeavors for social and public interests for
a long period, and tested through practice, have produced remarkable social benefits;

(3) those who, in the implementation of the State security programs, have made great scientific and technological
contributions to promoting the construction of modernization of national defense and safeguarding security of the State;

(4) those who, in the implementation of major engineering programs, have guaranteed the meeting of the projects
with international advanced standards.

The State Scientific and Technological Progress Prize for major engineering programs mentioned in Sub-paragraph
(4) of the preceding paragraph is only granted to organizations.

Article 12 The International Scientific and Technological Cooperation Prize of the People’s Republic of China is granted to the following
foreigners or foreign organizations that have made great contributions to China’s scientific and technological endeavors:

(1) those who have made great scientific and technological achievements in cooperative research and development
with Chinese citizens or organizations;

(2) those who have achieved particularly remarkable results in introducing advanced science and technology
to Chinese citizens and organizations as well as in training talents;

(3) those who have made great contributions to the promotion of international scientific and technological
exchange and cooperation between China and foreign countries.

Article 13 The State Highest Science and Technology Prize and the International Scientific and Technological Cooperation Prize of
the People’s Republic of China are not classified into different grades.

The State Natural Science Prize, the State Technological Invention Prize and the State Scientific and Technological
Progress Prize are classified into two grades, i.e. the First Award and the Second Award.

With regard to the State Natural Science Prize, the State Technological Invention and National Prize and the
State Scientific and Technological Progress Award, the total number of programs granted awards each year shall not be more than 400.
Chapter 3 Evaluation and Conferment of State Science and Technology Prizes

Article 14 Evaluations are carried out once a year for the State science and technology prizes.

Article 15 The candidates for State science and technology prizes shall be nominated by the following units and individuals:

(1) the people’s government of provinces, autonomous regions or municipalities directly under the Central
Government;

(2) the relevant departments of, and agencies directly subordinate to, the State Council;

(3) the general departments of the Chinese People’s Liberation Army;

(4) other units and experts of science and technology conforming to the qualification requirements provided
for by the administrative department of science and technology of the State Council that have confirmed by the administrative department
of science and technology of the State Council .

The candidate for the State science and technology prizes nominated by the nominating units mentioned in the
preceding paragraph shall be decided according to the suggestions of the experts of science and technology in the relevant fields
about the evaluation results on their scientific and technological achievements, the categories and the grades of prizes.

Measures for nominating candidates for the State science and technology prizes in Hong Kong, Macao and Taiwan
are to be formulated by the administrative department of science and technology of the State Council.

Embassies and consulates of the People’s Republic of China stationed in foreign countries may nominate candidates
for the International Scientific and Technological Cooperation Prize of the People’s Republic of China.

Article 16 Candidates nominated by nominating units and individuals for the State science and technology prizes shall be nominated
in a limited quota; and when making the nomination, the nominating units and individuals shall fill out a unified letter of nomination
and provide true and reliable materials for evaluation.

Article 17 The Evaluation Committee shall make a conclusion of verification of scientific and technological achievements, and make
a proposal on persons selected to receive prizes, the categories, and the grades of prizes to the State Science and Technology Prizes
Committee.

The State Science and Technology Prizes Committee shall make a decision on the persons selected to receive
prizes, the categories and the grades of prizes on the basis of the proposal made by the Evaluation Committee.

The rules of evaluation for the State science and technology prizes is to be formulated by the administrative
department of science and technology of the State Council.

Article 18 The administrative department of science and technology of the State Council shall examine and verify the decision made
by the State Science and Technology Prizes Committee about the persons selected to receive prizes, the categories and the grades
of prizes for the State science and technology prizes, and the report to the State Council for approval.

Article 19 The State Highest Science and Technology Prize are submitted to the President for signature and grant of the certificate
and prize money.

The certificate and prize money for the State Natural Science Prize, the Technological Invention Prize and
the State Scientific and Technological Progress Prize are granted by the State Council.

The certificate for the International Scientific and Technological Cooperation Prize of the People’s Republic
of China are granted by the State Council.

Article 20 The sum of prize money for the State Highest Science and Technology Prize is prescribed by the State Council.

The sum of prize money for the State Natural Science Prize, the State Technological Invention Prize
and the State Scientific and Technological Progress Prize is prescribed by the administrative department of science and technology
of the State Council together with the department of finance of the State Council.

The outlays for the awards for the State science and technology prizes shall be listed in and paid from the
budget of the Central government.
Chapter 4 Penalty Provisions

Article 21 The prize shall be withdrew and the prize money shall be refunded by the administrative department of science and technology
of the State Council after the approval of the State Council, if the State science and technology prizes are found to be gained by
plagiarizing or trespassing others’ discoveries, inventions or other scientific and technological achievements or by any other cheating
acts.

Article 22 The administrative department of science and technology of the State Council shall send out a circular, criticizing the
units and individuals that provide false data and materials and assist others to gain the State science and technology prizes by
cheating; for those serious cases, the qualification of nomination is suspended temporarily or withdrew permanently; people who take
direct responsibility will be given administrative punishments in accordance with laws.

Article 23 Society-oriented science and technology prizes, which are established by non-government sectors without registration and
permission, will be banned by the administrative departments of science and technology.

Non-government sectors that have established society-oriented science and technology prizes, if charging fees
in the prizing activities, shall be have the fees charged confiscated by the administrative departments of science and technology,
and may be impose a fine of not less than 1 time but not more than 3 times the fees charged; for serious cases, the registration
shall be cancelled.

Article 24 Personnel participating in evaluation activities of State science and technology prizes and related work, if engaging
in deception or practicing personal favoritism, shall be imposed administrative sanctions according to law.
Chapter 5 Supplementary Provisions

Article 25 The relevant departments of the State Council may establish ministerial-level science and technology prizes according
to special situations of national defense and State security. The specific measures are to be formulated by the relevant departments
of the State Council, which shall be submitted to the administrative department of science and technology of the State Council.

The people’s governments of provinces, autonomous regions and municipalities directly under the Central Government
may establish one provincial-level prize of science and technology. The specific measures are formulated by people’s governments
of provinces, autonomous regions and municipalities directly under the Central Government, which shall be submitted to the administrative
department of science and technology of the State Council.

Article 26 These Regulation shall take effect as of the date of promulgation. The Regulations of the People’s Republic of China on
Natural Science Prizes, the Regulations of the People’s Republic of China on Invention Prizes and the Regulations of the People’s
Republic of China on Scientific and Technological Progress Prizes revised and promulgated by the State Council on June 28, 1993 are
repealed at the same time.

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE TAX OF DONATIONS RECEIVED BY THE ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES

The state Administration of Taxation

Circular of the State Administration of Taxation on the Tax of Donations Received by the Enterprises with Foreign Investment and Foreign
Enterprises

GuoShuiFa [1999] No.195

October 18, 1999

The state and local Bureaus of Taxation of province, autonomous region, municipality directly under the Central Government and municipality
separately listed on the State plan and Shenzhen local taxation Bureau:

The issue on the tax of donations received by the institutions and branches set up in China by the enterprises with foreign investment
and foreign enterprises (hereinafter referred as enterprises) should be clarified as following:

The no-capital assets (fixed assets, immateriality assets and others goods) should be reckoned into the relevant assets after rational
assessment. As the annual income of the enterprises making up the previous loss, the balance should be levied the income tax of enterprises.
If the balance is so large that it is difficult to pay the income tax at a time, the enterprises can apply the local taxation institutions
for approval that it can be reckoned into the income tax in average within 5 years.

II.

The currency donations received by the enterprises should be reckoned into the annual income at a time and levied the income tax

III.

The fund which the debtor has not required the enterprises to pay after two years should be entered into the annual income and levied
the income tax.

The state Administration of Taxation
1999-10-18

MEASURES FOR THE IMPLEMENTATION OF ADMINISTRATION OF ENTERPRISE NAME REGISTRATION

e03479

The State Administration for Industry and Commerce

Order of the State Administration for Industry and Commerce

No.93

The “Measures for the Implementation of Administration of Enterprise Name Registration” has been adopted by the standing meeting of
the State Administration for Industry and Commerce, are hereby promulgated and shall enter into force on January 1, 2000.

Director general of the State Administration for Industry and Commerce: Wang Zhongfu

December 8,1999

Measures for the Implementation of Administration of Enterprise Name Registration

Chapter I General Provisions

Article 1

These Measures are formulated in order to strengthen and perfect administration of enterprise name registration, protect lawful rights
and interests of owners of enterprise names, and maintain a fair competition order in accordance with the Provisions on Administration
of Enterprise Name Registration and relevant laws, administrative regulations.

Article 2

These Measures are applicable to registration of enterprise names of enterprise legal persons and enterprises unqualified as legal
persons by administrative organs for industry and commerce.

Article 3

Enterprises shall select their own names and apply for registration according to law.

Enterprises enjoy name rights from the date of establishment.

Article 4

Administrative organs for industry and commerce at various levels shall approve and register enterprise names according to law.

Enterprise names registered beyond power limit shall be rectified.

Article 5

Administrative organs for industry and commerce shall carry out administration of enterprise name registration at different levels.

The State Administration for Industry and Commerce takes charge of nationwide administration of enterprise name registration, and
is responsible for approval of the following enterprise names:

(1)

those preceded by such words as “Zhongguo” or”Zhonghua” (both mean China) or “Guajia” (State) or “Guoji” (international);

(2)

those using such words as “Zhongguo” or “Zhonghua” (both mean China) or “Guojia” (State) or “Guoji” (international);

(3)

those excluding administrative division.

Local administrative organs for industry and commerce are responsible for the approval of the following enterprise names other than
those stipulated in the preceding paragraph:

(1)

those preceded by administrative division at the same level;

(2)

those conforming to those including the same administrative division in Article 12 of these Measures. The administrative organs for
industry and commerce with rights to approve names of foreign investment enterprises authorized by the State Administration for Industry
and Commerce approve names of foreign investment enterprises according to these Measures.

Chapter II Enterprise Names

Article 6

Names of enterprise legal persons may not include names of other legal persons unless otherwise provided for by the State Administration
for Industry and Commerce.

Article 7

The name of an enterprise may not include the name of another enterprise.

The name of an enterprise’s branch shall be preceded by the name of the enterprise to which it is affiliated.

Article 8

Enterprise names shall be in Chinese characters which conform to the norms of the State, may not use foreign words, the Chinese phonetic
alphabet or Arabic numbers.

Where names of enterprises need to be translated into foreign languages, the enterprises will translate them by themselves according
to the word translation principles, need not to report them to administrative organs for industry and commerce for approval and registration.

Article 9

An enterprise name shall be composed of administrative division, the shop name, trade and organizational form in proper order except
as otherwise provided for by law, administrative regulations and these Measures.

Article 10

Except the enterprises the establishment of which is decided by the State Council, enterprise names shall not be preceded by such
words as “Zhongguo” or “Zhonghua” (both mean China) or “Guajia” (State) or “Guoji” (international).

Where such words as “Zhongguo” or “Zhonghua” (both mean China) or “Guajia” (State) or “Guoji” (international) are used in the middle
of the enterprise names, such words shall be attributive words to the trade.

Foreign-capital enterprises which use the shop names of the enterprises funded by the investments from a foreign country(region) may
use the word “(China)”.

Article 11

The administrative division in an enterprise name is the name or place name of the administrative division of area at the place where
such enterprise is located at or above the county level.

A name of a district under a city may not be used separately as the administrative division in an enterprise name. An enterprise name
using a district under a city together with the name of the city administration division shall be approved by the administrative
organ for industry and commerce of the city.

An enterprise name used together with the administrative division of a province, city or county shall be approved by the administrative
organ for industry and commerce of the administrative area at the highest level.

Article 12

Enterprise legal persons meeting the following conditions may place the administrative division in the names after the shop names
and before the organizational forms.

(1)

where the shop names of the holding enterprises are used;

(2)

where such the names of holding enterprises exclude administrative division.

Article 13

Upon approval of the State Administration for Industry and Commerce, enterprise legal persons meeting one of the following conditions
may use enterprise names which exclude administrative division:

(1)

where the approval is conducted by the State Council;

(2)

where the registration is conducted by the State Administration for Industry and Commerce;

(3)

where the registered capital (or registered fund) is not less than 50000000 yuan;

(4)

where it is stipulated by the State Administration for Industry and Commerce otherwise.

Article 14

A shop name in an enterprise name shall be composed of more than two Chinese characters.

An administrative region may not be used as a shop name, unless the place name of an administrative region at or above the county
level has other meanings.

Article 15

An enterprise name may use the name of a natural person investor as the shop name.

Article 16

The sector expression in an enterprise name shall be the terms reflecting the nature of economic activities of the enterprise which
belong to the national economy sector or enterprise business characteristics.

The contents of the sector expression in an enterprise name shall conform to the business scope of the enterprise.

Article 17

Where the nature of economic activities belong to the different big classifications of the national economy sector, the terms of the
classifications of the national economy sector to which the nature of economic activities belong shall be chosen to express the sector
in the enterprise name.

Article 18

Where the terms of the classifications of the national economy sector are not used to express the sector in which an enterprise is
engaged, the following conditions shall be met:

(1)

where the nature of economic activities of the enterprise belong to more than five big classifications of the national economy sector;

(2)

where the registered capital (or registered fund) is more than 100000000 yuan or is the parent company of the enterprise group;

(3)

where the shop names of the enterprise name approved or registered by the same administrative organ for industry and commerce are
different.

Article 19

An enterprise may use the name of a country (region) or the place name of the administrative division at or above the county level
after the shop name in the name to reflect its business characteristics.

The place name above shall not be deemed as an administrative division in an enterprise name.

Article 20

An enterprise name shall not explicitly or implicitly have the business exceeding its business scope.

Chapter III Registration of Enterprise Names

Article 21

Only one enterprise name shall be permitted to be indicated on the enterprise business license.

Article 22

Anyone who intends to establish a company shall apply for an approval of a name in advance.

Where establishment of an enterprise must be submitted for examination and approval as stipulated by laws and administrative regulations
or there are items which must be examined and approved as stipulated by laws and administrative regulations in its business scope,
the enterprise name approval in advance must be handled before submission for examination and approval, and the enterprise name approved
by the administrative organ for industry and commerce shall be used for submission for examination and approval.

Anyone who intends to establish other enterprises may apply for an approval of a name in advance.

Article 23

For applying for approval of an enterprise name in advance, the appointed representative or authorized agents by all the contributors,
partners or cooperators(hereinafter referred uniformly to as investors) shall submit the following documents to the administrative
organ for industry and commerce having jurisdiction over name approval:

(1)

an application for approval of an enterprise name in advance signed by all the investors, which specifies such contents as the name
of the enterprise(a candidate name may be specified) to be established, address, the business scope, registered capital(or registered
fund), tides or names of the investors and amount of contribution;

(2)

certificates on the appointed representative or authorized agent signed by all the investors;

(3)

qualifications certificates of the appointed representative or authorized agent;

(4)

qualifications certificates of all the investors; and

(5)

other documents which the administrative organ for industry and commerce requires to submit.

Article 24

The administrative organ for industry and commerce shall make a decision of approval or rejection of the application for approval
of the enterprise name in advance within ten days from the date of acceptance. If an approval is conducted , an Enterprise Name Approval
in Advance Notice will be issued; if an approval is not conducted, an Enterprise Name Rejection Notice will be issued.

Article 25

Where an enterprise establishment registration is applied and the approval of the enterprise name has been conducted, an Enterprise
Name Approval in Advance Notice shall be submitted.

Where the name of the enterprise to be established involves the provisions of laws and administrative regulations under which a report
for examination and approval must be made and the document of the examination and approval can not be submitted, the registration
organ shall not register the enterprise name approved in advance.

Where the approval of the enterprise name in advance and registration of the enterprise are not conducted at the same administrative
organ for industry and commerce, the registration organ shall, within 30 days from the date of registration of the enterprise, send
the relevant registration information to the administrative organ for industry and commerce approving the enterprise name for the
record.

Article 26

An enterprise that intends to change its name shall apply to the registration organ for change registration.

Where the name applied for change by an enterprise is subject to the jurisdiction of the registration organ, the registration organ
shall handle the change registration directly. If the original enterprise name was approved by another administrative organ for industry
and commerce, the registration organ shall, within 30 days from the date of approval of registration of the enterprise, send the
relevant registration information to the administrative organ for industry and commerce approving the original enterprise name for
the record.

Where the name applied for change by an enterprise is not subject to the jurisdiction of the registration organ, the matter shall
be handled in accordance with the provisions of Article 27 of these Measures.

An enterprise shall, within 30 days from the date of approval of the enterprise name change registration, apply for undertaking registration
in change of the names of its branches.

Article 27

Where the name applied for change by an enterprise is not subject to the jurisdiction of the registration organ, the matter shall
be handled in accordance with the following provisions:

(1)

The enterprise shall apply to the registration organ for change registration, and submit the following documents:

(i)

a written application for the enterprise name change;

(ii)

the article of associations of the enterprise;

(iii)

a duplicate copy of the business license; and

(iv)

China Laws

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MEASURES FOR THE IMPLEMENTATION OF ADMINISTRATION OF ENTERPRISE NAME REGISTRATION

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7