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CIVIL PROCEDURE LAW (FOR TRIAL IMPLEMENTATION)

Category  LITIGATION Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  Invalidated
Date of Promulgation  1982-03-08 Effective Date  1982-10-01 Date of Invalidation  1991-04-09


Civil Procedure Law of the People’s Republic of China (for Trial Implementation)

Contents
Chapter I  The Aim and Basic Principles
Chapter II  Jurisdiction
Chapter III  Trial Organizations
Chapter IV  Withdrawal
Chapter V  Participants in Proceedings
Chapter VI  Evidence
Chapter VII  Time Periods and Service
Chapter VIII  Compulsory Measures Against Impairment of Civil Actions
Chapter IX  Litigation Costs
Chapter X  Ordinary Procedure
Chapter XI  Summary Procedure
Chapter XII  Special Procedure
Chapter XIII  Procedure of Second Instance
Chapter XIV  Procedure for Trial Supervision
Chapter XV  General Stipulations
Chapter XVI  Referral of and Application for Execution
Chapter XVII  Execution Measures
Chapter XVIII  Suspension and Conclusion of Execution
Chapter XIX  General Principles
Chapter XX  Arbitration
Chapter XXI  Service and Time Periods
Chapter XXII  Preservative Measures in Litigation
Chapter XXIII  Judicial Assistance

(Adopted at the 22nd Meeting of the Standing Committee of the Fifth

National People’s Congress and promulgated by Order No. 8 of the Standing
Committee of the National People’s Congress on March 8, 1982, and implemented
on a trial basis as of October 1, 1982) (Editer’s Note: This law has been
annulled by The Civil Procedure Law of The People’s Republic of China
promulgated on April 9, 1991 and effective as of the same date)
Contents

    Part One  General Provisions

    Chapter I  The Aim and Basic Principles

    Chapter II  Jurisdiction

        Section 1  Jurisdiction by Level

        Section 2  Territorial Jurisdiction

        Section 3  Referral and Designation of Jurisdiction

    Chapter III  Trial Organization

    Chapter IV  Withdrawal

    Chapter V  Participants in Proceedings

        Section 1  Parties

        Section 2  Agent ad Litem

    Chapter VI  Evidence

    Chapter VII   Time Periods and Service

        Section 1  Time Periods

        Section 2  Service

    Chapter VIII  Compulsory Measures Against Impairment of Civil Actions

    Chapter IX  Litigation Costs

    Part Two  Procedure of First Instance

    Chapter X  Ordinary Procedure

        Section 1  Bringing a Suit and Accepting a Case

        Section 2  Preparations for Trial

        Section 3  Preservative Measures in Litigation and Advance Payment

        Section 4  Conciliation

        Section 5  Trial in Court

        Section 6  Suspension and Conclusion of a Lawsuit

        Section 7  Judgment and Order

    Chapter XI  Summary Procedure

    Chapter XII  Special Procedure

        Section 1  General Stipulations

        Section 2  Cases Concerning Rolls of Voters

        Section 3  Cases Concerning the Proclamation of the Death of

                   a Missing Person

        Section 4  Cases Concerning the Determination of a Citizen as

                   Incompetent

        Section 5  Cases Concerning the Determination of a Property as

                   Ownerless

    Part Three  Procedure of Second Instance and Procedure for Trial

                Supervision

    Chapter XIII  Procedure of Second Instance

    Chapter XIV  Procedure for Trial Supervision

    Part Four  Procedure of Execution

    Chapter XV  General Stipulations

    Chapter XVI  Referral of and Application for Execution

    Chapter XVII  Execution Measures

   Chapter XVIII  Suspension and Conclusion of Execution

    Part Five  Special Stipulations for Civil Procedures Involving Foreign

               Interests

    Chapter XIX  General Principles

    Chapter XX  Abritration

    Chapter XXI  Service and Time Periods

    Chapter XXII  Preservative Measures in Litigation

    Chapter XXIII  Judicial Assistance

    Part One  General Provisions
Chapter I  The Aim and Basic Principles

    Article 1  The Civil Procedure Law of the People’s Republic of China is
formulated on the basis of the Constitution and in the light of the actual
conditions of our country and its experience in trying civil cases.

    Article 2  The aim of the Civil Procedure Law of the People’s Republic of
China is to ensure that the people’s courts ascertain facts, distinguish right
from wrong, apply the law correctly, try civil cases promptly, affirm the
rights and duties in civil affairs, impose sanctions for civil wrongs, protect
the rights and interest of the state, collectives and individuals, and educate
citizens to voluntarily abide by the law.

    Article 3  All those who engage in civil lawsuits within the territory of
the People’s Republic of China must abide by this Law.

    The provisions of this Law are applicable to administrative cases that by
law are to be tried by the people’s courts.

    Article 4  The people’s courts shall exercise the judicial authority with
respect to civil cases.

    The people’s courts shall try civil cases independently, in accordance
with the law, and shall not be subject to interference by any administrative
organ, public organization or individual.

    Article 5  In conducting civil proceedings, the people’s courts must base
themselves on facts and take the law as the criterion; the law applies equally
to all parties to a lawsuit; and the parties shall be guaranteed equal
exercise of their litigation rights.

    Article 6  In conducting civil proceedings, the people’s courts shall
stress conciliation; if conciliation efforts are ineffective, they shall
render judgments without delay.

    Article 7  In handling civil cases, the people’s courts shall, wherever
necessary and possible, send out circuit tribunals to conduct trials on the
spot.

    Article 8  In trying civil cases, the people’s courts shall, as provided
for by law, apply the system whereby the second hearing is final, and the
systems of public trial, collegial panel and withdrawal of judicial personnel.

    Article 9  Citizens of all nationalities shall have the right to use their
native spoken and written languages in civil proceedings.

    Where people of a minority nationality live in a concentrated community
or where a number of nationalities live together in one area, the people’s
courts shall conduct hearings and issue legal documents in the spoken and
written languages commonly used by the local nationalities.

    The people’s courts shall provide translations for any party to the court
proceedings who is not familiar with the spoken or written languages commonly
used by the local nationalities.

    Article 10  The parties to a civil lawsuit shall have the right to argue
about the issues in dispute.

    Article 11  The parties to a civil lawsuit shall be enpost_titled, within the
scope stipulated by law, to dispose of their rights in civil affairs and
their litigation rights.

    Article 12  The people’s procuratorates shall have the right to exercise
legal supervision over the civil proceedings of the people’s courts.

    Article 13  If the civil rights and interests of the state, a collective
or an individual have been infringed, a state organ, public organization,
enterprise or institution may support the injured unit or individual to
initiate legal action in a people’s court.

    Article 14  The people’s conciliation committees shall be mass
organizations to conciliate disputes among the people, which are to function
under the guidance of the grass-roots people’s governments and the basic
people’s courts.

    A people’s conciliation committee shall conduct its conciliation through
persuasion and education in accordance with the provisions of the law and the
principle of voluntariness. The parties concerned shall execute the agreement
reached upon in the conciliations; those who refuse a conciliation or those
for whom a conciliation has failed may initiate legal action in a people’s
court.

    If a people’s conciliation committee violates any policies or laws in
conciliating a case, a people’s court shall make corrections.

    Article 15  The people’s congresses of the national autonomous areas and
their standing committees may formulate certain adoptive or supplementary
provisions in accordance with the principles of the Constitution and this Law
and with the specific circumstances of the local nationalities. Such
provisions made by an autonomous region shall be reported to the Standing
Committee of the National People’s Congress for the record. The provisions
made by an autonomous prefecture or autonomous county shall be submitted to
the standing committee of the people’s congress of the relevant autonomous
region or province for approval and to the Standing Committee of the National
People’s Congress for the record.
Chapter II  Jurisdiction

    Section 1  Jurisdiction by Level

    Article 16  The basic people’s courts shall have jurisdiction as courts of
first instance over civil cases, unless otherwise stipulated in this Law.

    Article 17  The intermediate people’s courts shall have jurisdiction as
courts of first instance over the following civil cases:

    (1) cases involving foreign interests; and

    (2) cases that have major impact on the area under their jurisdiction.

    Article 18  The higher people’s courts shall have jurisdiction as courts
of first instance over civil cases that have major impact on the areas under
their jurisdiction.

    Article 19  The Supreme People’s Court shall have jurisdiction as the
court of first instance over the following civil cases:

    (1) cases that have major impact on the whole country; and

    (2) cases that it deems it should try.

    Section 2  Territorial Jurisdiction

    Article 20  A civil lawsuit shall be under the jurisdiction of the
people’s court in the place where the defendant has his domicile; if the
defendant’s domicile is different from his residence, the lawsuit shall be
under the jurisdiction of the people’s court in the place of his residence.

    A civil lawsuit against an enterprise, institution, state organ or public
organization shall be under the jurisdiction of the people’s court in the
place where the defendant unit is located.

    Where the domiciles or residences of several defendants in one lawsuit
fall under the jurisdiction of two or more people’s courts, all of those
people’s courts shall have jurisdiction over the lawsuit.

    Article 21  The civil lawsuits described below shall be under the
jurisdiction of the people’s court in the place where the plaintiff has his
domicile; if a plaintiff’s domicile is different from his residence, the
lawsuit shall be under the jurisdiction of the people’s court in the place of
his residence. The relevant lawsuits are:

    (1) those brought by civilians against servicemen;

    (2) those concerning the status of persons not residing in the People’s
Republic of China;

    (3) those against persons who are undergoing rehabilitation through
labour; and

    (4) those against imprisoned persons.

    Article 22  A lawsuit initiated over an infringing act shall be under the
jurisdiction of the people’s court in the place where the infringement took
place.

    Article 23  A lawsuit initiated over a contract dispute shall be under the
jurisdiction of the people’s court in the place where the contract is
performed or where it was signed.

    Article 24  A lawsuit arising from railway, highway or water transport or
through transport shall be under the jurisdiction of the people’s court in the
place where the administrative organ in charge of investigating and handling
such disputes is located.

    Article 25  A lawsuit arising from air transport shall be under the
jurisdiction of the people’s court in the place where the transport began,
where it ended or where the contract was signed.

    Article 26  A lawsuit concerning claims for damages caused by an aviation
accident shall be under the jurisdiction of the people’s court in the place
where the accident took place or where the aircraft first landed after the
accident.

    Article 27  A lawsuit concerning claims for damages caused by a ship
collision or any other maritime accident shall be under the jurisdiction of
the people’s court in the place where the injured ship first docked after the
accident or where the ship at fault was detained or in the port area where
the ship at fault is registered.

    Article 28  A lawsuit concerning claims for maritime salvage shall be
under the jurisdiction of the people’s court in the place where the salvage
took place or where the salvaged vessel first docked after the disaster.

    Article 29  In cases where the implementation of Articles 22 to 28 proves
difficult, the provisions of Article 20 or 21 may be applied.

    Article 30  The following cases shall be under the exclusive jurisdiction
of the people’s courts herein specified:

    (1) A lawsuit initiated over real estate shall be under the jurisdiction
of the people’s court in the place where the real estate is located.

    (2) A lawsuit concerning harbour operations shall be under the
jurisdiction of the people’s court in the place where the harbour is located.

    (3) A lawsuit concerning a registration shall be under the jurisdiction of
the people’s court in the place where the registration office is located.

    (4) A lawsuit concerning an inheritance shall be under the jurisdiction of
the people’s court in the place where the decedent had his domicile, or where
the principal part of his estate is located.

    Article 31  When two or more people’s courts have jurisdiction over a
lawsuit, the plaintiff may bring by choice his lawsuit in one of the these
people’s courts; if the plaintiff brings the lawsuit in two or more people’s
courts that have jurisdiction over the lawsuit, it shall be handled by the
people’s court that first receives the bill of complaint.

    Section 3  Referral and Designation of Jurisdiction

    Article 32  If a people’s court discovers that a case it has accepted is
not under its jurisdiction, it shall refer the case to the people’s court that
does have jurisdiction over the case; the people’s court to which a case has
been referred shall not independently refer it again to another people’s
court.

    Article 33  If a people’s court which has jurisdiction over a case is
unable to exercise the jurisdiction for special reasons, a superior people’s
court shall designate another court to exercise the jurisdiction.

    In the event of a jurisdictional dispute, it shall be resolved by the
disputing parties through consultation; if the disputes cannot be resolved
through consultation, it shall be reported to a people’s court superior to
both disputing parties for the designation of jurisdiction.

    Article 34  People’s courts at higher levels shall have the authority to
try civil cases over which people’s courts at lower levels have jurisdiction
as courts of first instance; they may also transfer civil cases over which
they themselves have jurisdiction as courts of first instance to people’s
courts at lower levels for trial.

    If a people’s court deems it necessary for a civil case of first instance
under its jurisdiction to be tried by a people’s court at a higher level, it
may request such a people’s court to try the case.
Chapter III  Trial Organizations

    Article 35  Civil cases of first instance shall be tried in a people’s
court by a collegial panel consisting of both judges and assessors or of
judges alone. The collegial panel must have an odd number of members.

    Simple civil cases shall be tried by a single judge alone.

    Where carrying out their duties in a people’s court, the assessors shall
have equal rights with the judges.

    Article 36  Civil cases of second instance shall be tried in a people’s
court by a collegial panel of judges. The collegial panel must have an odd
number of members.

    When retrying a case remanded by a people’s court of second instance, the
people’s court of first instance shall form a new collegial panel in
accordance with the procedures of first instance.

    If a case for retrial was originally tried at first instance, a new
collegial panel shall be formed according to the procedure of first instance;
if the case was originally tried at second instance; a new collegial panel
shall be formed according to the procedure of second instance.

    Article 37  The president of the court or the chief judge of a division
shall designate one member of the judicial personnel to serve as the presiding
judge of the collegial panel; if the president or the chief judge participates
in the trial, he himself shall serve as the presiding judge.

    Article 38  When deliberating a case, a collegial panel shall observe the
principle that the minority shall defer to the majority. The deliberations
shall be recorded in writing, and the transcript shall be signed by the
members of the collegial panel. Diverging opinions in the deliberations must
be truthfully entered in the transcript.

    Article 39  The president of the court shall submit major and difficult
civil cases to the judicial committee for discussion and decision. The
collegial panel must carry out the decisions of the judicial committee.
Chapter IV  Withdrawal

    Article 40  A member of the judicial personnel must voluntarily withdraw,
and the parties to the case shall also have the right to request, orally or in
writing, that he be withdrawn, in any of the following circumstances:

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

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

    (3) if he has some other relationship with a party to the case that could
influence the impartial handling of the case.

    The above provisions shall also apply to clerks, interpreters and expert
witnesses.

    Article 41  When a party requests the withdrawal of a member of the
judicial personnel, he shall explain the reason for this request and submit
the request at the beginning of the proceedings; the request may also be
submitted before the end of court debate if the reason for the withdrawal
becomes known or occurs only after the beginning of the proceedings.

    Personnel who have been requested to withdraw shall temporarily suspend
their functions unless emergency measures are required by the case.

    Article 42  The withdrawal of a court president who serves as the
presiding judge shall be decided by the judicial committee; the withdrawal of
judicial personnel shall be decided by the court president; the withdrawal of
other personnel shall be decided by the presiding judge.

    Article 43  The decision of a people’s court on a request for withdrawal
may be made orally or in writing. If a party refuses to accept the decision,
it may apply for one reconsideration. The trial of the case shall not be
suspended during the time of reconsideration.
Chapter V  Participants in Proceedings

    Section 1  Parties

    Article 44  Any person who has the capacity for litigation rights may
become a party to a civil lawsuit.

    Enterprises, institutions, state organs and public organizations may
become parties to a civil lawsuit, and their principal leaders shall be their
legal representatives.

    Article 45  The parties shall have the right to appoint agents, request
withdrawals, provide evidence, engage in debate, request conciliation, file
an appeal and apply for execution.

    With the permission of the people’s court, the parties may consult the
materials relating to the court proceedings of the case and may request that
copies of the materials and other legal documents be made at their own
expense. However, materials involving state secrets and the private affairs
of individuals shall be exceptions.

    The parties must exercise their litigation rights in accordance with the
law, observe litigation procedures and carry out legally effective judgments,
orders and conciliation agreements.

    Article 46  The two parties may reach a compromise on their own. The
plaintiff may relinquish or modify his claim. The defendant may confirm or
repudiate the claim and shall have the right to file a counter-claim.

    Article 47  A joint lawsuit shall be constituted when one party or both
parties consist of two or more persons and the object of their lawsuits are
the same or of the same category and the people’s court considers that the
claims can be tried together.

    If the individuals constituting a party to a joint lawsuit have identical
rights and obligations with respect to the object of the lawsuit and the
procedural acts of one person is recognized by the others of his party, then
such acts shall be effective for all; if the individuals in one party do not
have identical rights and obligations with respect to the object of the
lawsuit, then the procedural acts of one person shall have no effect on the
others of his party.

    Article 48  If a third party considers that he has an independent claim
to the object disputed by the parties to a lawsuit, he shall have the right
to bring an action and become a party to the lawsuit.

    If a third party has no independent claim to the object disputed by the
parties to a lawsuit, but the outcome of the case will affect his interest
legally, he may file a request to participate in the proceedings or may
participate when so notified by the people’s court.

    Section 2  Agents ad Litem

    Article 49  Any person with no capacity to engage in litigation shall have
one or more agents ad litem to represent him in a lawsuit. The people’s court
may appoint an agent for any person who does not have an agent ad litem.

    If the agents ad litem try to shift their responsibilities onto each
other, the people’s court may appoint one of them to represent the principal
in litigation.

    Article 50  Each party, legal representative or agent ad litem may entrust
one or two persons to represent him in litigation.

    A party’s near relative, a lawyer, a person recommended by a public
organization or the unit to which a party belongs or any other citizen
approved by the people’s court may be entrusted as the party’s agent ad litem.

    Article 51  When a person entrusts another to act on his behalf in
litigation, he must submit to the people’s court a power of attorney bearing
his signature or seal.

    The power of attorney must specify the matter and limits of authority
entrusted. An agent ad litem must possess special authorization from his
principal to confirm, relinquish or modify the claim and to institute a
compromise or file a counterclaim or an appeal.

    A power of attorney issued by a Chinese citizen residing in a foreign
country must be certified by the Chinese embassy or consulate in that country,
if there is no Chinese embassy or consulate in that country, the power of
attorney must be certified by an overseaas Chinese organization loyal
to China.

    Article 52  A party to a lawsuit shall inform the people’s court in
writing if he changes or revokes the authority of an agent ad litem, and the
court shall notify the other party of the change or revocation.

    Article 53  A lawyer who serves as an agent ad litem may consult
materials pertaining to the case in accordance with relevant stipulations.
However, if such materials involve state secrets or the private affairs of
individuals, he must keep the confidential information from his client and
others. With the approval of the people’s court, other agents ad litem may
also consult the materials relating to the court proceedings of the case,
except those that involve state secrets or the private affairs of individuals.

    Article 54  The parties to a divorce case which has been entrusted to
agents ad litem shall appear in court in person, unless they are incapable
of presenting their own case. A party who is truly unable to appear in court
due to a special reason shall submit his or her opinion in writing to the
people’s court.
Chapter VI  Evidence

    Article 55  Evidence shall be classified as follows:

    (1) documentary evidence;

    (2) material evidence;

    (3) audio-visual reference material;

    (4) testimony of witnesses;

    (5) statements of the

PROVISIONAL REGULATIONS, ISSUED BY THE GENERAL BUREAU OF INDUSTRIAL AND COMMERCIAL ADMINISTRATION OF THE PEOPLE’S REPUBLIC OF CHINA, ON THE STANDARDS OF REGISTRATION FEES TO BE PAID BY JOINT VENTURES USING CHINESE AND FOREIGN INVESTMENT

PROVISIONS CONCERNING THE ADMINISTRATION OF FOREIGNERS TRAVELING IN CHINA

Category  TOURISM Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1982-10-09 Effective Date  1982-10-09  


Provisions Concerning the Administration of Foreigners Traveling in China



(Approved and transmitted by the State Council and the Central Military

Commission on October 9, 1982, promulgated by the Ministry of Public
Security, the Headquarters of the General Staff, the Ministry of Foreign
Affairs and the National Tourism Administration)

    In line with the spirit of safeguarding national security
and guarding state secrets while appropriately and step-by-step
relaxing restrictions for foreigners’ traveling in China, these
Provisions are formulated in order to meet the needs of China’s
open door policy and to simplify the examination and approval
procedures for foreigners traveling in various areas of China.

    1. Requirements for Open Areas:

    (1) Scenic spots or historical sites which have a tourist
value to foreigners and are worth opening, or large or medium-
sized cities with economic, cultural or scientific and
technological exchanges with foreign countries;

    (2) A stable public order and good transportation
conditions;

    (3) Reception conditions (including interpreters, tourist
guides, accommodations, vehicles and the provision of non-staple
foods, ect.); and

    (4) Those areas not in any restricted military zone.

    2. Examination and Approval Procedures for Open Areas:

    An area satisfying the requirements for open areas may
become a national open area with the consent of the people’s
government of the province, autonomous region or municipality
directly under the central government in consultation with the
relevant military area command and after review and approval by
the State Council; the closure of a city or area in the event of
a natural disaster or military operation shall be submitted by
the people’s government of the province, autonomous region or
municipality directly under the central government and the
military area command to the State Council and the Central
Military Commission for examination and approval.

    The Ministry of Public Security shall undertake the work of
examination and approval for the opening and closing of areas,
and shall collect and publish such information.

    3. Areas which may be open to foreigners are classified into
the following categories:

    (1) Category I: Neither a travel certificate nor advance
notice is required for foreigners going to areas of this
category. Twenty-eight cities and one county are now included in
this category:

    Beijing City, Tianjin City, Shanghai City, Qinhuangdao City,
Taiyuan City, Shenyang City, Changchun City, Harbin City, Nanjing
City, Suzhou City, Wuxi City, Hangzhou City, Jinan City, Qingdao
City, Zhengzhou City, Kaifeng City, Luoyang City, Wuhan City,
Changsha City, Guangzhou City, Foshan City, Zhaoqing City,
Nanning City, Guilin City, Xi’an City, Chengdu City, Chongqing
City, Kunming City and Lunan County (Stone Forest).

    (2) Category II (see the Appendix): Includes areas which
are already open, under controlled opening or are newly opened
and which are not included in Category I. A travel certificate is
still required for foreigners going to areas of this category,
and applications for certificates are generally approved.

    (3) Category III: Includes ordinarily non-open areas where
foreigners often go to make investigations, carry out scientific
and technological exchanges, on-site construction or other
official business. Relevant foreigners may be allowed to go to
these areas, provided that they shall apply for a travel
certificate. The list of areas of this category shall be examined
and approved by the various military area commands, and shall be
collected and related by the Ministry of Public Security to the
relevant departments and public security organs of the various
localities.

    (4) Category IV: Includes non-open areas other than those of
Category I, II and III. Where any foreigner needs to go to an
area of this category, the reception organization shall in
advance ask for the consent of the people’s government of the
relevant province or autonomous region and the relevant military
area command, and then apply for travel certificates to the
public security organ.

    4. Important military installations in areas of Category I or
II shall be delimited as non-open areas.

    5. Travels by personnel of diplomatic missions to China or
resident agencies of international organizations shall generally
be dealt with in accordance with these Provisions, or if
circumstances require, on the basis of reciprocity.

    6. Foreigners traveling in China shall not use their own
vehicles except traveling between Beijing and Tianjin.

    7. Reception organizations and relevant personnel shall
arrange foreigners’ activities in non-open areas in accordance
with the prescribed routes and limitations, and shall not alter
them at will.

    8. For Chinese-foreign equity joint venture projects,
Chinese-foreign contractual joint ventures or for any
Chinese-foreign joint investigations in non-open areas that
involve more than one province, autonomous region or municipality
directly under the central government, the opinion of the Ministry
of Public Security shall be sought beforehand; those involving one
military area command shall obtain the consent of the military
area command; those involving more than one military area command
shall, in addition, seek the opinion of the Headquarters of the
General Staff, and then go through the prescribed procedures for
examination and approval.

    9. Foreign Chinese visiting relatives or traveling to non-
open areas shall be dealt with in accordance with the provisions
of the Report for Instructions Regarding Lifting the Restrictions
for Travel by Overseas Chinese and Compatriots from Hong Kong and
Macao submitted by the Ministry of Public Security and approved
by the State Council and the Central Military Commission in 1980.

    10. Localities and organizations involving national security
shall do their best at security work. Those areas and locations
involving national security or precious relics under the state’s
priority protection which may not be photographed or video-taped
shall be made known to the accompanying persons and foreigners in
advance.

    11. These Provisions shall go into effect on the date of
approval. In case of discrepancy between any existing relevant
provisions and these Provisions, the latter shall be regarded as
authoritative.

    Appendix:  Areas of Category II


——————————————————————————
Areas Already Open           |  Areas Newly Opened |   Open
Areas Determined
or under Controlled Opening  |                    
|   by Provinces and

                            
|                     |  
Autonomous Regions
—————————–|———————|————————–
Hebei: Shijiazhuang City     |                    
| Pingshan County (Xibaipo,

       Chengde City          |                    
| Gangnan Reservoir)

       Zhuoxian County       |                    
| Zhaoxian County

       Zunhua County         |                    
| (Zhaozhou Bridge)

       (Dongling)            |                    
| Zunhua County (Shashiyu)

                            
|                     |
Shanxi: Datong City          |                    
|

                            
|                     |
Inner Monloglia: Baotou City |                    
|

                 Hohhot City |                    
|

                            
|                     |
Liaoning: Dalian City        | Jinzhou City        |

          Anshan City        | Dandong City        |

          Fushun City        | Liaoyang
City       |

                            
| Yingkou City        |

                            
| Benxi City          |

                            
|                     |
Jilin: Jilin City            | Antu County        
|

                            
|(Changbaishan Nature |

                            
| Reserve)            |

                            
|                     |
Heilongjiang: Daqing City    | Qiqiha’er City      |

                            
| Mudanjiang City     |

                            
| Jiamusi City        |

                            
| Yichun City         |

                            
|                     |
Jiangsu: Xuzhou City         |                    
|

         Yangzhou City       |                    
|

         Changzhou City      |                    
|

         Zhenjiang City      |                    
|

         Lianyungang City    |                    
|

         Huai’an County      |                    
|

         Yixing County       |                    
|

                            
|                     |
Zhejiang: Shaoxing City      |                    
|

          Ningbo City        |                    
|

          Wenzhou City       |                    
|

          Deqing County      |                    
|

          (Mt. Moganshan)    |                    
|

                            
|                     |
Anhui: Hefei City            | Bengbu City        
|

       Wuhu City             | Tunxi City          |

       Ma’anshan City        |                    
|

       Qingyang County       |                    
|

       (Mt. Jiuhuashan)      |                    
|

       Huangshan Tourist     |                    
|

       Zone                  |                    
|

                            
|                     |
Fujian: Fuzhou City          |                    
| Wuyishan Tourist Zone

        Quanzhou City        |                    
|

        Zhangzhou City       |                    
|

        Xiamen City          |                    
|

                            
|                     |
Jiangxi: Nanchang City       | Pengze County       |

         Jingdezhen City     | (Longgong Caves)    |

         Jiujiang City       |                    
|

         (including          |                    
|

         Mt. Lushan)         |                    
|

         Jinggangshan County |                    
|

                            
|                     |
Shandong: Yantai City        |                    
|

          Zibo City          |                    
|

          Tai’an City        |                    
|

          Qufu County        |                    
|

          Kenli County       |                    
|

         (Shengli Oil Field) |                    
|

                            
|                     |
Henan: Anyang City           |                    
| Sanmenxia City

       Xinxiang City         |                    
| Xinxiang County

       Linxian County        |                    
| Huixian County

       Gongxian County       |                    
| Yuxian County

       Xinyang City          |                    
|

       (Mt. Jigongshan)      |                    
|

                            
|                     |
Hubei: Shashi City           | Yichang City        |

       Xiangfan City         | Jiangling County    |

       Xianning City         |                    
|

       Junxian County        |                    
|

       (Danjiang River)      |                    
|

                            
|                     |
Hunan: Yueyang City          | Hengshan County     |

       Hengyang City         | (Hengshan Tourist  
|

       Xiangtan City         | Zone)              
|

       Xiangtan County       |                    
|

       (Shaoshan)            |                    
|

                            
|                     |
Guangdong:                   | Shenzhen
City       | Qingyuan County

                            
| Zhuhai City         | Xinhui County

                            
| Jiangmen City       |

                            
| Haikou City         |

                            
| Nanhai County       |

                            
| Zhongshan County    |

                            
|  Shunde County      |

                            
|                     |
Guangxi: Liuzhou City        |  Wuzhou City        |
the urban district of          Wuming County       |  Xing’an
County     | Beihai City

         Binyang County      |                    
| Lingchuan County

         Guiping County      |                    
| (Qingshitan Reservoir)

                            
|                     | Yongning
County

                            
|                     |(Wukuang
People’s Commune)

                            
|                     |
Sichuan: Leshan City         |  Xindu Count

REGULATIONS ON THE ARBITRATION OF DISPUTES OVER ECONOMIC CONTRACTS

Regulations of the PRC on the Arbitration of Disputes Over Economic Contracts

    

(Effective Date 1983.08.22)

CONTENTS

CHAPTER I GENERAL PRINCIPLES

CHAPTER II JURISDICTION

CHAPTER III ORGANISATION

CHAPTER IV PROCEDURES

CHAPTER V APPENDIX

CHAPTER I GENERAL PRINCIPLES

   Article 1. Pursuant to the “Economic Contract Law of the People’s Republic of China”, the present regulations are hereby formulated to correctly
handle disputes over economic contracts, protect the legitimate rights and interests of disputing parties and maintain social and
economic order.

   Article 2. The State General Administration for Industry and Commerce and the economic contract arbitration boards established by local administrations
for industry and commerce are organs of arbitration for economic contracts.

   Article 3. Arbitration organs shall handle cases of disputes over economic contracts within their terms of reference and practise the system
of arbitration award being final and conclusive.

   Article 4. In handling cases of disputes over economic contracts, organs of arbitration upholds the principle of carrying out investigations
to find out facts and abide by the laws, administrative regulations and policies of the state. Disputing parties are equals in the
application of the law and they are ensure of exercising equal rights.

   Article 5. In places where minority nationality people live in compact community,languages, oral or written, of local minority people shall
be used in mediating, arbitrating and writing mediation documents and arbitration awards. Disputing parties who do not understand
local languages commonly in use by local minority nationalities shall be provided with interpreters.

   Article 6. Disputing parties should apply for arbitration with the organs of arbitration within one year starting from the date when they get
to know or ought to have known that their rights have been encroached upon. But no time limit is imposed on cases where the party
which has encroached upon the rights of others is willing to assume liabilities.

   Article 7. Disputing parties or their legal representatives may entrust one or two persons to take action on their behalf. In entrusting others
to take action, they must present to the arbitration board a power of attorney which should specify matters to be entrusted and their
terms of reference.

   Article 8. The regulations apply to disputes over economic contracts between legal persons as well as to disputes over economic contracts signed
by legal persons with self-employed or rural peasants.

CHAPTER II JURISDICTION

   Article 9. Cases of disputes over economic contracts shall be handled by arbitration organizations in places where the contracts are implemented
or signed. If there is difficulty in execution, it may be referred to arbitration organizations in places of the accused.

Disputes over construction engineering contracts shall be handled by arbitration organizations in places where the project is built.

Disputes over economic contracts arising from the course of transportation by rail,road, water or through transport, shall be handled
by arbitration organizations in places where the transportation control organization responsible for handling the cases are located.

Disputes over economic contracts arising from air transport shall be handled by arbitration organizations in places where the contracts
are signed, or where the goods are dispatched or the place of destination or where the accidents occur.

   Article 10. Disputes over economic contracts shall be handled by arbitration organizations of counties (cities) and city districts, with the
exception of the following cases:

(1) Cases that have a big influence or involve a sum of over 500, 000 to 5 million Yuan shall be handled by arbitration organizations
of cities under the direct administration of provinces, or prefectures and autonomous prefectures;

(2) Major economic disputes of great impact or involving a sum of 5 million to 10 million yuan shall be handled by provincial, municipal
or autonomous regional arbitration organizations;

(3) Disputes over economic contracts that will have great impact nationwide or disputes between provinces,municipalities and autonomous
regions or between central departments on the one hand and provinces, municipalities or autonomous regions on the other or between
central departments and involve a sum of above 10 million yuan shall be handled by the arbitration board of the State Administration
for Industry and Commerce.

   Article 11. Arbitration organizations at a higher level have the right to handle cases within the jurisdiction of arbitration organizations
at a lower level and they may also hand over cases within their own jurisdiction down to arbitration organizations at a lower level.

Arbitration organizations at a lower level may submit cases within their jurisdiction to arbitration organizations at a higher level
if they deem it necessary.

   Article 12. Cases within the jurisdiction of two arbitration organizations may be accepted by the arbitration organization which first received
the letter of appeal.

Arbitration organizations shall not accept cases where one of the disputing parties has applied for arbitration while the other has
brought the cases before the law court.

   Article 13. Disputes arising from jurisdiction shall be settled through Consultation between disputing parties. Should consultation fails, the
cases should be submitted to arbitration organizations at a higher level to decide on jurisdiction.

CHAPTER III ORGANIZATION

   Article 14. Economic contract arbitration boards of the state administration for industry and commerce at all levels are composed of one chairman,
one to two vice-chairmen and a number of members. The chairman, vice-chairmen and members of the arbitration boards should be assumed
by people with rich experience and professional knowledge.

Economic contract arbitration boards designate a number of arbitrators to handle cases of disputes over economic contracts.

   Article 15. Arbitration organizations at all levels may appoint according to needs part-time arbitrators from among prominent figures, professional
technicians or judicial workers as part-time arbitrators, who shall enjoy equal rights with professional arbitrators in fulfilling
their duties.

Part-time arbitrators should have the support of their own units in performing their duties.

   Article 16. In handling cases of disputes over economic contracts, arbitration organizations shall form arbitration tribunals each composed
of two arbitrators and one umpire appointed by the arbitration board concerned.

In discussing cases, the arbitration tribunal should follow the principle of the minority subordinating to the majority. Records should
be kept for the discussions and signed by members of the tribunal. Differences of opinions should be faithfully recorded.

Difficult cases may be submitted for discussion and decision by the arbitration boards. The decisions by the arbitration boards shall
be executed by the tribunals.

Simple cases may be handled by one arbitrator appointed.

   Article 17. If any member of the arbitration tribunal is deemed unsuitable for handling a case, he should apply for “withdrawal”, If any of
the disputing parties discovers any member of the tribunal is associated with the case, it has the right to apply, orally or in writing,
for his or her withdrawal.

   Article 18. The withdrawal of the umpire shall be determined by the arbitration board. The withdrawal of arbitrators shall be decided by the
Chairman or vice-chairmen of the arbitration board.

An arbitration organization may inform the disputing parties orally or in written form of its decision on withdrawal.

CHAPTER IV PROCEDURES

   Article 19. Application should be filed with the arbitration organization for arbitration according to the provisions of the regulations and
duplicated copies of the application should be provided according to the number of people accused.

The application must specify the follow items:

(1) Name and address of the accuser, name and function of the legal representative.

(2) Name and address of the accused, name and function of the legal representative.

(3) Reasons and claims of the application.

(4) Evidence and the name and address of witnesses.

   Article 20. The arbitration organization should put the case on file for investigation and prosecution within seven days after the application
for arbitration is received if it proves in conformity with the provisions of the present regulations after examination. If the
application does not accord with the provisions, the accuser should be notified within seven days of the unacceptability of the case,
with reasons stated.

After a case is accepted, the duplicates of the application should be delivered to the accused within five days from the date of acceptance.
The accused should, within 15 days of the receipt of the duplicates of the application presents a letter of reply and related evidence.

The handling of a case is not affected whether the accused has presented the letter of reply or not within the prescribed period of
time.

   Article 21. An arbitrator must make a careful study of the application, reply and carry out investigations to collect evidence.

In order to obtain evidence, an arbitration organization may request the permission to examine files related to the case, data and
original vouchers or documents related to the case. The units concerned should present the materials as they are and assist it in
the investigations and, if necessary, produce certificates.

Arbitration organizations must keep secret evidences involving state secrets.

   Article 22. When conducting the spot survey or technical examinations, the disputing parties and personnels involved should be informed present;
if necessary, the arbitration organization can ask for help from the personnels of the departments concerned.

The records on the spot survey and technical examinations should specify the time, place and the result of the survey or examination
and have the signatures or seals of the personnel involved in the survey or examination.

If a unit is entrusted to carry out the technical examination by an arbitration organization, it should conduct the testing according
to the item and standards as entrusted.

   Article 23. If an arbitration organization is required to carry out the investigations, items and requirements should be specified. The arbitration
organization entrusted should conduct the investigations carefully and may carry out additional investigations within the required
limits and gives a timely reply. If the investigations cannot be carried out within 3 days after the letter of trust is received,
the trustee must notify the trustee of it while continuing the investigations and striving for an earliest possible reply.

   Article 24. While the handling of a case is in process, the arbitration organization may rule to take measures to prevent more serious property
losses according to the applications of the disputing parties. Measures to save from damage is confined to the property within the
scope covered by arbitration as applied or associated with the case.

In deciding measures to save damage,the arbitration organization may demand the applicant of providing a guarantor. If the applicant
refuses to provide the guarantor, the application shall be turned down.

If the applicant loses the case, he should compensate for the losses in property inflicted by taking the measures to save from damage.

Measures to save from damage may include termination of the execution of the contract, sealing up and detain the goods, selling of
the goods difficult to preserve and keeping the proceeds, ordering the object of application to provide a guarantor or other methods
allowed by law.

   Article 25. An arbitration organization should first exercise mediation in handling a case, either by an arbitrator or by an arbitration tribunal.

   Article 26. An arbitration organization should mediate on the basis of finding out facts and affixing responsibilities so as to promote mutual
understanding and reach agreement.

The agreement should be reached on a voluntary basis and should not be forced upon the disputing parties.

The contents of the agreements shall not violate the law, administrative regulations or other rules and regulations and policies or
at the expense of the public interests or the interests of others.

   Article 27. When an agreement is reached through mediation, a letter of mediation should be written, which should specify the names and addresses
of the disputing parties and the names and addresses of the representatives or agents, main facts about the disputes, responsibilities,
contents of agreement and the bearer of expenses. The letter of mediation should have the signatures of the disputing parties, the
arbitrators and the secretaries and the seal of the arbitration organization.

   Article 28. When the mediation letter is delivered, the disputing parties should automatically observe it.

   Article 29. If no agreement is reached through mediation or one disputing party or both parties have backed up their commitments, the arbitration
tribunal should conduct arbitration.

   Article 30. Before an arbitration tribunal hears a case, the disputing parties should be informed in written form of the time, place of the
hearing of the tribunal. If any of the disputing parties refuses to show up at the tribunal without justifiable reasons after it
is informed twice, arbitration may be conducted by default.

   Article 31. In hearing a case, the umpire should announce the list of arbitrators and secretaries and ask whether the disputing parties request
withdrawal.

The tribunal should carefully listen to the statements and replies of the disputing parties and the presenting of evidences, then
inquire about for the last time the opinions of the accuser, the accused in that order before another round of mediation is carried
out. If the mediation still fails, arbitration awards shall be passed after discussion by the tribunal.

   Article 32. Arbitration awards should specify:

(1) The names, addresses of the representatives or agents of the accuser and the accused.

(2) Reasons for application, facts about the disputes and claims.

(3) Facts established by the ruling, reasons and the law provisions applied.

(4) Result of the ruling and the bearer of the arbitration fees.

(5) Time limit for appeal if the ruling is not accepted.

The arbitration awards must be signed by the arbitrations and sealed by the arbitration organizations.

   Article 33. If one of the disputing parties or both refuse to accept the arbitration award, he or they may bring the case before the people’s
court within 15 days from the date of receiving the arbitration award. If no action is taken within the prescribed time limit, the
arbitration award becomes legally binding.

   Article 34. If the chairman or vice-chairmen of the economic contract arbitration board find there is indeed errors in the ruling which has
already become legally binding, he or they may submit it for discussion and decision by the economic contract arbitration board if
a re-arbitration is necessary.

If an arbitration organization at a higher level discovers errors in an arbitration award that has already become legally binding,
it has the right to revoke the award and demand re-arbitration.

A new arbitration tribunal should be formed in re-arbitration.

   Article 35. Parties to an economic contract should automatically implement the mediation instruments or arbitration awards that have already
become legally binding according to regulations. If one party refuses to implement within the prescribed time limit, the other party
may apply for enforcing the implementation with the people’s court within its jurisdiction.

CHAPTER V APPENDIX

   Article 36. Disputing parties shall be charged arbitration fees, which include acceptance fees and handling fees.

Case handling fees (including fees for testing, survey and investigation, examination, travel expenses and the subsidy for witnesses
for absence in work) should be paid in the actual amount spent.

Case acceptance fees are paid in advance by the applicant.

After the case is completed, the arbitration fees should be borne by the losing party. If the disputing parties partially lose or
win, the expenses should be borne according to a certain percentage each.

The standard of arbitration fees shall be fixed by the State Administration for Industry and Commerce.

   Article 37. If the mediation works, the arbitration fees should be borne by both parties through consultation.

   Article 38. The present regulations becomes effective from the date of promulgation. Other regulations on economic contract arbitration promulgated
by the people’s governments at all levels and State Council departments shall be superseded.

    





REGULATIONS ON LABOR MANAGEMENT IN THE XIAMEN SPECIAL ECONOMIC ZONE

Regulations on Labor Management in the Xiamen Special Economic Zone

    

(Effective Date 1984.07.14)

   Article 1. The present regulations are formulated in accordance with the relevant laws and decrees of the People’s Republic of China.

   Article 2. SEZ enterprises decide their own labor plans and composition of their staff and report to the Xiamen City Bureau of Labor for the
record.

   Article 3. The workers and staff members of an enterprise may be recruited by the enterprise itself or may be recommended by the labor service
company of the special economic zone, and shall be selected by the enterprise through examination on the strength of their individual
qualifications.

Those recruited may undergo a probation period lasting three to six months.

   Article 4. SEZ enterprises should not employ school children or those under 16, and if they recruit those from the rural areas or inland areas,
they must have the approval of the Xiamen City Bureau of Labor.

   Article 5. SEZ enterprises should conclude contracts with workers and staff members for their employment. The labor contract should include
terms on the following: employment, dismissal, resignation of the workers and staff members, contract duration, job responsibilities
in production and other work, wages, rewards and punishment, working time and vacations, labor insurance and welfare, labor protection
and discipline. The labor contracts must be reported to the Xiamen City Bureau of Labor for the record.

   Article 6. SEZ enterprises have the right of management over their own employees in accordance with the terms of the labor contracts. The
employees enjoy all the rights protected by law and stipulated in the contracts.

   Article 7. The structure and scale of wages, and the ways of reward and subsidy for the workers and staff members are determined by the SEZ
enterprises themselves.

   Article 8. The labor insurance system the SEZ practises is one which is provided by a social labor insurance fund.

SEZ enterprises must each contribute every month to a social labor insurance fund the equivalent of 25% of the enterprise’s total
monthly wages of the Chinese workers. Payment of the contribution is to be made to the organization designated by the Xiamen City
People’s Government to be used as pension for the retired, spendings for funerals of those whose death is due to causes other than
accidents, pension for the disabled or for the family of the deceased, medical fee for the retired, and allowance for those waiting
for re-employment after dismissal.

   Article 9. SEZ enterprises should draw a certain amount of money from their profits to be paid into a workers’ welfare fund for such purposes
as welfare, medical care and assistance for those who are in difficulty.

   Article 10. SEZ enterprises must each take out an employer responsibility policy at the insurance company designated by the Xiamen City People’s
Government. On-the-job injuries, disability and deaths and occupational diseases of workers and staff members shall be handled by
the insurance company in accordance with relevant regulations.

   Article 11. SEZ enterprises follow the six-day work-week and eight-hour work-day practice. Overtime work must not be longer than 12 hours a
week and extra pay will not be lower than 150% of the wage of the individual concerned and extra pay for those who work on holidays
will not be lower than 200% of the wage.

   Article 12. Public holidays and paid vacations of the workers and staff members of the SEZ enterprises are as follows:

General holiday: one day per week

Statutory holidays: seven days with pay, namely New Year’s Day (one day), the Spring Festival (three days), the International Labor
Day (one day), and the National Day (two days)

Wedding leave: three days with pay

Maternity leave: not less than 56 days with pay

Sick leave: full pay to those whose sick leave is less than 13 days, and 60%, 70% and 80% of the pay to those whose sick leave is
13 to 24 days and whose length of service is less than ten years, ten to 15 years, and more than 15 years, respectively. The length
of time and the amount of pay shall be decided by the enterprises themselves for the yearly vacation, leave for attending the funerals
of the employee’s next of kin and sick leave exceeding 24 days.

   Article 13. Workers and staff members of the SEZ enterprises have the right to establish grassroots trade union organizations and organize activities
in accordance with the Trade Union Law of the People’s Republic of China.

The main tasks for these trade unions are: to safeguard the legitimate rights of the workers and staff members, help the enterprise
to plan the use of welfare funds, organize sports, cultural and recreational activities for the workers and staff members, educate
them to observe labor discipline and work hard to fulfil the various economic tasks of the enterprise.

The SEZ enterprises should actively support the work of the trade unions, and allocate an equivalent of 2% of the total wages of the
workers and staff members as the trade union fees every month.

   Article 14. A SEZ enterprise may dismiss its workers and staff members in line with its labor contracts, but it must inform the individual concerned,
the enterprise trade union and the SEZ labor service company of the dismissal one month in advance. No dismissal is allowed when
a worker or a staff member is receiving medical care for injuries as a result of on-the-job accidents and occupational diseases,
and for illness and non-accident injuries, and when women workers who are pregnant for more than six months or who are spending their
maternity leave.

When a worker or a staff member is dismissed before or upon the expiration of the labor contract, the SEZ enterprise concerned is
to pay a compensation fee calculated on the basis of the individual’s seniority in the enterprise and average monthly pay of the
six months prior to his resignation.

The norms for the compensation fee are: 50% of the average monthly pay if the individual has worked for less than half a year; one
month’s pay for one year, including those who have worked for more than six months but less than one year; one-and-a-half months’
pay for one year starting from the 11th year for those who have worked for more than ten years.

   Article 15. Workers and staff members may resign according to the labor contract and they should notify the enterprise one month in advance.

Workers and staff members who have worked for less than two years and who have been released for training by the enterprise but want
to resign after training should pay the enterprise a certain amount of training expenses. What the amount should be and other conditions
may be covered by the labor contract.

The SEZ enterprise should submit a list of those who have resigned to the special economic zone’s labor service company.

   Article 16. The employment contract should include regulations on employment, dismissal, resignation, pay, welfare, reward and punishment as
well as social insurance of the foreign and Hongkong, Macao and Taiwan workers and staff members in the enterprise of the zone, and
a duplicate of the contract should be submitted to the Xiamen City Bureau of Labor for the record.

   Article 17. The SEZ enterprises must follow the laws and decrees of the People’s Republic of China on labor protection and special protection
for women workers, guarantee safe operations and health of the workers and staff members, over which the Xiamen City Bureau of Labor
has the right to examine and supervise.

   Article 18. The SEZ enterprise may, according to the seriousness of each case, give the necessary punishment and even dismissal to those workers
and staff members who violate rules and regulations and cause certain consequences. The enterprise should inform the dismissed and
the enterprise trade union of the decision in writing, and report to the Xiamen City Bureau of Labor for the record.

   Article 19. Labor disputes that occur in the SEZ enterprises may be solved by the parties involved through consultation; the enterprise trade
union may take part in the consultation when it deems necessary; those who are involved in the labor disputes may ask for arbitration
from the Xiamen City Bureau of Labor if the disputes cannot be solved; and if those involved are dissatisfied with the arbitration
ruling the case may be brought before the people’s court.

   Article 20. The regulations shall come into force on the date of promulgation.

    





DETAILED RULES FOR THE IMPLEMENTATION OF THE INTERIM REGULATIONS ON LICENSING SYSTEM FOR IMPORT COMMODITIES OF THE PEOPLE’S REPUBLIC OF CHINA

PROVISIONAL REGULATIONS PROMULGATED BY THE STATE COUNCIL OF THE PEOPLE’S REPUBLIC OF CHINA ON REDUCTION AND EXEMPTION OF ENTERPRISES

RULES FOR THE IMPLEMENTATION OF THE REGULATIONS ON ADMINISTRATION OF TECHNOLOGY-INTRODUCTION CONTRACTS

Category  OBLIGATORY RIGHT Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1988-01-20 Effective Date  1988-01-20  


Rules for the Implementation of the Regulations of the People’s Republic of China on Administration of Technology-introduction Contracts



(Approved by the State Council on December 30, 1987, promulgated by the

Ministry of Foreign Economic Relations and Trade on January 20, 1988)

    Article 1  These Rules are formulated in accordance with the provisions of
Article 12 of the Regulations of the People’s Republic of China on
Administration of Technology-Introduction Contracts (hereinafter referred to as
the “Regulations”).

    Article 2  Regardless of the country or region of the supplier, or of the
source of funds and modes of payment of the recipient, the recipient and the
supplier as specified in Article 2 of the Regulations shall apply for
examination and approval to the examining and approving authorities in
accordance with the Regulations and these Rules when they are to conclude any
of the technology-introduction contracts listed below:

    1. Contracts for assignment or licensing of industrial property rights.
Contracts for assignment or licensing of industrial property rights refer to
those for assignment or licensing of rights relating to invention patents, new
utility model patents, exterior design patents as well as trademarks, excluding
those merely for assignment of rights of trademarks.

    2. Contracts for licensing of proprietary technology. Contracts for
licensing of proprietary technology reler to those for supply or impartment of
technical know-how which is not yet publicized nor under legal protection as
industrial property, for manufacturing a product or applying a technology as
well as for product designs, technological processes, formulae, quality control
and management, etc.

    3. Contracts for technical services. Contracts for technical services refer
to those for offering services or consultancy to the recipient by the supplier
with its technology for achieving a specific goal, including contracts for
feasibility study or engineering design undertaken by the supplier upon the
entrustment of the recipient or by the recipient in cooperation with the
supplier, contracts for providing technical services by foreign geological
exploration or engineering teams that are employed and contracts for providing
services or consultancy by the supplier upon the entrustment of the recipient
for technical transformation of an enterprise, improvement of production
technology or product design and quality control as well as enterprise
management (excluding contracts for employing foreigners in China’s
enterprises).

    4. Contracts for co-production and co-design which involve any one of such
items as assignment or licensing of industrial property rights, licensing of
know-how or technical services.

    5. Contracts for importing complete set of equipment, production line or
key equipment which involve any one of such items as assignment or licensing of industrial property rights, licensing of know-how
or technical services.

    6. Other technology-introduction contracts which, according to the
examining and approving authorities, must go through the procedure for
examination and approval.

    Article 3  When companies, enterprises, institutions or individuals with no
rights to engage in foreign technology-introduction business are to introduce
technology from abroad, they shall, with letters of commission, entrust those
companies and enterprises with such rights to conclude technology-introduction
contracts.

    Article 4  Technology-introduction contracts concluded by Chinese-foreign
equity joint ventures, Chinese-foreign contractual joint ventures and foreign
capital enterprises (hereinafter referred to as enterprises with foreign
investment) established in the territory of the People’s Republic of China for
acquiring technology from suppliers shall comply with the procedures of
examination and approval as stipulated in these Rules.

    If foreign investors in enterprises with foreign investment use industrial
property rights or technical know-how as equity shares, the case shall be dealt
with in accordance with the relevant laws and regulations of the State for
enterprises with foreign investment.

    Article 5  The examining and approving authorities for examining and
approving technology-introduction contracts are the Ministry of Foreign
Economic Relations and Trade (hereinafter referred to as MOFERT) and its
authorized departments, commissions, bureaux of foreign economic relations and
trade and other administrative organs of provinces, autonomous regions,
municipalities directly under the Central Government, coastal open cities,
special economic zones and cities under separate planning (hereinafter referred
to as the “authorized examining and approving authorities”).

    Article 6  Technology-introduction contracts shall be examined and approved
at different levels in accordance with the following stipulations:

    1. Technology-introduction contracts for projects with feasibility study
reports approved by the ministries/commissions of and agencies directly under
the State Council shall be examined and approved by MOFERT.

    2. Technology-introduction contracts for projects with feasibility study
reports approved by people’s governments or their authorized competent organs
of provinces, autonomous rigions, municipalities directly under the Central
Government, coastal open cities, special economic zones and cities under
separate planning shall be examined and approved by the authorized examining
and approving authorities at the same level; if the technology-introduction
contracts are concluded by other transregional companies with parties abroad
through entrustment, they may be examined and approved by the authorized
examining and approving authorities of the locality where the conclusion takes
place with the consent of the authorized examining and approving authorities of the locality where the entruster is located. After
approval, the authorized
examining and approving authorities of the locality where the contract is
concluded shall send a copy of the Approval Certificate to the authorized
examining and approving authorities of the locality where the entruster is
located for the record. Neverthless, technology-introduction contracts
concluded with parties abroad by companies located in Beijing pursuant to
transregional entrustment (excluding those companies directly under Beijing
municipality) shall be examined and approved by MOFERT.

    3. Technology-introduction contracts concluded by enterprises with foreign
investment for acquiring technology from suppliers shall be examined and
approved by MOFERT if the enterprises concerned were established with the
approval of ministries/commissions of and angencies directly under the State
Council; or shall be examined and approved by the relevant authorized examing
and approving authorities if the enterprises concerned were otherwise
established.

    Article 7  A technology-introduction contract shall specify the following
items:

    1. name of the contract;

    2. contents, scope and requirements of the target technology to be
introduced;

    3. criteria, timelimits and measures for quality rectification of the
introduced technology and liabilities for risks;

    4. obligation to preserve the secrets of the introduced technology,
ownership and sharing of the improved technology;

    5. price or remuneration in total, prices of separate items and modes of
payment;

    6. calculations for compensation in case of violation of the contract;

    7. settlement of disputes; and

    8. definitions of terms and phrases.

    Annex and data relating to implementation of the contract may constitute an
integral part of the technology-introduction contract in accordance with the
agreement of the contracting parties.

    Article 8  With respect to techmology-introduction contracts involving
assignment or licensing of patent or trademark rights obtained in China,
relevant patent numbers or patent application numbers, trademark registration
numbers together with trademark design shall be expressly specified. Contracts
for assignment of patent rights shall be recorded with the Patent Office in
accordance with provisions of the Patent Law of the People’s Republic of China,
and those for licensing of the trademarks shall be recorded with the Trademark
Office in accordance with the provisions of the Trademark Law of the People’s
Republic of China.

    Article 9  The supplier shall ensure that the technology or data documents
provided are complete, accurate, effective and capable of attaining the
technology target specified in the contract. The time for the delivery of
technology documents shall correspond with the progress of the engineering
programme of the recipient.

    Article 10  If the recipient requires the supplier to provide raw
materials, spare parts or equipment for the introduced technology, the prices
shall not be higher than those of the like products on international market.

    Article 11  The supplier shall ensure that it is the lawful owner of the
technology provided or that it has the right to assign or license the
technology. If the recipient, in producing or selling products with the
assigned or licensed technology, is accused of infringement by a third party,
the supplier shall respond to the lawsuit. If the infringement charged by the
third party is proved, all economic losses the recipient may suffer shall be
compensated for by the supplier.

    Article 12  Within the term of validity of the contract, the ownership of
the improved technology including the right to apply for patents belongs to the
party that has made the improvements. Where the recipient provides the
supplier with an improved technology, the terms shall be the same as those when
the supplier provides the recipient with an improved technology.

    Article 13  The recipient shall undertake the obligation to preserve the
secrets of the proprietary technology and relevant data provided or imparted by
the supplier in accordance with the scope and duration as agreed in the
contract. The duration for preserving secrets shall not generally exceed the
term of validity of the contract. If special circumstances require that the
duration exceed the term of contract, it shall be expressly specified in the
contract, and reasons shall be stated when applying for examination and
approval.

    Within the duration in which the recipient undertakes the obligation to
preserve secrets, if the technology is made public owing to reasons for which
the recipient is not responsible, the obligation undertaken in this regard by
the recipient shall immediately terminate. If it is specified in the contract
that the supplier shall also supply its developed and improved technology to
the recipient within the term of validity of the contract, the recipient may
continue to undertake the obligation of secret-preservation after expiration of the contract. In that case, the new duration shall
begin from the date when
the supplier provides the technology but shall not exceed the duration
originally specified in the contract.

    Article 14  No provisions of restrictions on exportation of products
manufactured by the recipient with the introduced technology may be included in
the contract without the approval of the examining and approving authorities,
however, either of the following cases shall be excepted:

    1. in countries and regions where exclusive license contracts have been
concluded by the supplier;

    2. in countries and regions where sole agent contracts have been concluded
by the supplier.

    Article 15  No provisions of prohibiting the continued use of the
introduced technology by the recipient after the expiration of the contract
shall be included in the contract without the approval of the examining and
approving authorities. Where the duration of the patent relating to the
introduced technology has not expired at the expiry of the contract, the
relevant stipulations of the Patent Law of the People’s Republic of China shall
govern.

    Article 16  The supplier shall pay taxes in accordance with the provisions
of the tax laws of the People’s Republic of China.

    Article 17  The recipient of a technology-introduction contract or the
company or enterprise acting as its agent to conclude the contract shall, in
accordance with the provisions of Article 6 of these Rules, submit to the
examining and approving authorities, within 30 days from the date of
conclusion, the following official documents:

    1. a written application for approval of the contract. The contents of the
application shall include the name of the contract, the country of the supplier
and the name of the firm, the contents and scope of the target technology to
be introduced, the organ that has approved the feasibility study report of the
project and its approval number, etc.;

    2. copies of the contract (with a Chinese translation attached, if it is in
a foreign language);

    3. copies for each of the documents certifying the legal status of the
contracting parties;

    4. the approved feasibility study report and statement on funds available.

    To facilitate the examination and approval, the recipient or the company or
enterprise acting as its agent may solicit opinions or request for a
pre-examination from the examining and approving authorities as to the main
contents or certain clauses of the contract either before or during
negotiations.

    Article 18  In case the technology-introduction contracts and other
documents submitted to the examining and approving authorities in accordance
with the provisions of Article 17 of these Rules fall under any one of the
following cases, the examining and approving authorities shall require the
parties concerned to make due amendments within a prescribed time limit, and
the approval shall be denied in case of failure to make amendments:

    1. where they contravene the current laws and regulations of the State and
impair social and public interests;

    2. where they impair national sovereignty;

    3. where the contents of the contract are inconsistent with the approved
feasibility study report of the project;

    4. where the basic clauses and contents of the contract are imperfect;

    5. where the contract contains no explicit and rational stipulations
concerning the responsibilities about and solutions to possible disputes over
property rights arising from the assigned or licensed technology or other
disputes that may occur in the course of implementation of the contract;

    6. where the contract contains no rational stipulations on the technical
level and economic benefits to be attained by the assigned or licensed
technology, including the quality warranty for the products manufactured with
tbe said technology;

    7. where the price or modes of payment for the introduced technology are
unreasonable;

    8. where the stipulations on rights. responsibilities and obligations of
the contracting parties are not sufficiently clear, reciprocal or rational;

    9. where the contract contains preferential tax commitment without the
consent of the state tax authorities.

    Article 19  The examining and approving authorities shall decide to approve
or disapprove the contract within 60 days from the date when the application
is received. If the examining and approving authorities require amendments in
accordance with the provisions of Article 18, the duration needed for
examination and approval shall be counted from the date when the amended
contract or an instrument of amendment is received.

    If the examing and approving authorities make no response at the expiry of
the specified period, the contract shall be deemed to have been approved.

    Article 20  The contract shall come into force as of the date of approval
and the examining and approving authorities shall issue a unified Approval
Certificate for a Technology-Introduction Contract printed and serial-numbered
by MOFERT.

    Article 21  If the term of validity of a technology-introduction contract
exceeds the period of 10 years as stipulated in Article 8 or includes the
restrictive provisions as listed in Article 9 of the Regulations, the recipient
shall submit an application with detailed explanations to the examining and
approving authorities when going through the procedure for examination and
approval in accordance with the stipulations of these Rules.

    Article 22  Any modifications of the clauses relating to the target
technology content, price, duration and secret-preserving time limit of an
approved technology-introduction contract shall be made by consultations
between the contracting parties upon a written consent of the examining and
approving authonties. If the modifications are inconsistent with the approved
content of the target technology or require an amount of foreign exchange
exceeding the approved amount, the procedure for reexamination and reapproval
shall be gone through in accordance with the provisions of Article 4 and
Article 11 of the Regulations and Article 6 of these Rules.

    Article 23  The relevant authorized examining and approving authorities
shall submit a copy of the Approval Certificate for a Technology-Introduction
Contract and other relevant data to MOFERT for the record within 10 days from
the date of the approval of a technology-introduction contract.

    Article 24  In the course of the implementation of a contract, the Approval
Certificate for a Technology-Introduction Contract or its copy must be
presented to the organs concerned in accordance with the relevant stipulations
while handling such matters as bank guarantee, letter of credit, payment,
foreign exchange settlement, Customs declaration and tax payment, etc. Banks,
Customs or tax authorities are enpost_titled to refuse to handle such matters if no
Approval Certificate or its copy is presented.

    Article 25  The authority to interpret and revise these Rules resides in
MOFERT.

    Article 26  These Rules shall enter into force as of the date of
promulgation. The Measures for Examination and Approval of
Technology-Introduction Contracts promulgated on September 18, 1985 by MOFERT
shall be abrogated as of the same date.?






MEASURES FOR THE CONTROL OF RADIOACTIVE DRUGS

Category  PUBLIC HEALTH AND MEDICINE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1989-01-13 Effective Date  1989-01-13  


Measures for the Control of Radioactive Drugs

Chapter I  General Provisions
Chapter II  Examination and Approval for the Development and Clinical
Chapter III  The Production, Sales, Import and Export of Radioactive Drugs
Chapter IV  The Packaging and Shipment of Radioactive Drugs
Chapter V  The Use of Radioactive Drugs
Chapter VI  The Standards for Radioactive Drugs and Their Testing
Chapter VII  Supplementary Provisions

(Promulgated by Decree No. 25 of the State Council of the People’s

Republic of China on January 13, 1989 and effective as of the date of
promulgation)
Chapter I  General Provisions

    Article 1  These Measures are formulated to strengthen the control of
radioactive drugs in accordance with Pharmaceutical Administration Law of the
People’s Republic of China (hereinafter referred to as the Pharmaceutical
Administration Law).

    Article 2  “Radioactive drugs” refer to any forms of radionuclide or their
tagged drugs that are used for clinical diagnosis or in radiotherapy.

    Article 3  All units or individuals in the People’s Republic of China are
required to abide by these Measures when they are engaged in research work,
production, business, transportation, consumption, examination, supervision
and administration work related to radioactive drugs.

    Article 4  The Ministry of Public Health is in charge of the supervisory
and administrative work of radioactive drugs while the Ministry of Energy is
in charge of the administration work concerning the production and sale of
radioactive drugs.
Chapter II  Examination and Approval for the Development and Clinical
Research of New Radioactive Drugs

    Article 5  “New radioactive drugs” refer to those radioactive drugs that
are made in China for the first time. The annual plan of any drug research
units for the development of new radioactive drugs must be submitted both to
the Ministry of Energy for the record and to the health administration
department at the provincial, autonomous regional or municipal (directly under
the Central Government) level. Then an itemized plan made by the latter shall
be presented to the Ministry of Public Health for the record.

    Article 6  The development of a new kind of radioactive drug includes the
research work in technological process, quality requirements,
preclinicopharmacological study and clinical study.

    The research unit, when designing the technological process for a new
drug, must study the physical and chemical properties, purity (including
pureness of radionuclide), testing method, pharmacology, toxicity, nuclein
animal dynamics, radiospecific activity, dosage, pharmaceutical forms and
stability of that radioactive drug. Furthermore, the research unit must make a
study of radio-immunity analysis container with respect to its scalability,
range, specificity, accuracy, precision and stability.

    New kinds of radioactive drugs shall be classified in accordance with the
provisions for the examination and approval of new pharmaceuticals.

    Article 7  Before the newly developed radioactive drug is put to clinical
test or verification, an application together with the data and sample must be
submitted to the Ministry of Public Health in accordance with the provisions
for the examination and approval of new pharmaceuticals.

    The newly developed radioactive drug may be used for clinical study at an
appointed hospital only after its application has been examined and approved
by the Ministry of Public Health.

    Article 8  After completion of clinical study of a newly developed
radioactive drug, the research unit must submit an application to the Ministry
of Public Health for examination and approval.

    The latter shall consult the Ministry of Energy before granting a New
Drug License.

    Article 9  Before a newly developed radioactive drug is put to production,
the production unit or the research unit that holds a license for the
production of radioactive drugs must submit an application together with a
copy of New Drug License and sample to the Ministry of Public Health. After
examination and verification, the Ministry of Public Health shall issue them
document of approval.
Chapter III  The Production, Sales, Import and Export of Radioactive Drugs

    Article 10  The enterprises that produce or sell radioactive drugs are
required to submit their production plan and business plan to the Ministry of
Energy and a duplicate to the Ministry of Public Health.

    Article 11  The State shall, according to the actual conditions, make sure
that radioactive drugs be produced at designated pharmaceutical factories
which shall be located rationally over the country. Applications for the
setting up of any enterprises to produce or sell radioactive drugs must be
approved by the Ministry of Energy before the preparations start in accordance
with related provisions.

    Article 12  Requirements for the setting up of enterprises to produce or
sell radioactive drugs are that they must have the necessary conditions as
stipulated in Article 5 of the Pharmaceutical Administration Law and that they
must meet the essential standard of radio hygiene protection set by the State.
They are also required to submit a report on environment impact to the
Ministry of Energy and the Ministry of Public Health for examination and
approval and then the health administration department in their province,
autonomous region or municipality directly under the Central Government shall
issue them “License for the Production Enterprise of Radioactive Drugs”,
“License for the Business Enterprise of Radioactive Drugs”. No enterprises
without the license shall be permitted to engage in the production or sale of
radioactive drugs.

    Article 13  The term of validity of “License for the Production
Enterprise of Radioactive Drugs” and “License for the Business Enterprise of
Radioactive Drugs” is five years. If needed, the enterprises engaged in the
production or sale of radioactive drugs shall make a new application six
months before the expiration to the health administration department which
shall, in accordance with Article 12 of these Provisions, issue them a new
license.

    Article 14  Before an approved pharmaceutical enterprise produces
radioactive drugs with specifications already set by the State, it must
forward an application which has to be examined and approved by the Ministry
of Public Health in conjunction with the Ministry of Energy. If any changes in
the technological process and specifications of the drugs previously approved
by the Ministry of Public Health are to be made, the pharmaceutical factory
shall be required to go through the same procedures for approval.

    Article 15  The production and business enterprises of radioactive drugs
are required to employ technical personnel who are qualified for the work and
to have safety and protection facilities as well as waste gas, liquid and
material disposal facilities. They must also have a strict quality control
system.

    Article 16  The production and business enterprises of radioactive drugs
are required to set up quality inspection offices. The entire process of
production must be put under strict qualify control and inspection.

    All radioactive drugs are subject to quality testing. Only the products
that meet the State pharmaceutical standard shall be allowed to be shipped out
from the factories. Products that are not up to the standard are not allowed
out of the factory.

    As for the drugs with short half-life radionuclide previously approved by
the Ministry of Public Health, they may be shipped out from the factory while
having sample testing. If the drugs are found to be below the State
pharmaceutical standard, the factory must stop the production and sale of the
drugs immediately and inform consuming units to stop using the drugs without
delay. A report about the case must be submitted to both the Ministry of
Public Health and the Ministry of Energy.

    Article 17  The production, supply and sale of radioactive drugs are under
the unified administration of the Ministry of Energy.

    When ordering these stuff, the pharmaceutical factory must furnish a
License for the Production Enterprise of Radioactive Drugs while the business
unit must present a License for the Business Enterprise of Radioactive Drugs
issued by the health administration department at the provincial, autonomous
regional or municipal (directly under the Central Government) level. As for
the medical treatment unit, they must order these drugs with a License for the
Use of Radioactive Drugs jointly issued by the public security department, the
environment protection department and health administration department at the
provincial, autonomous regional or the municipal (directly under the Central
Government) level.

    Article 18  The import and export business of radioactive drugs shall be
handled by the units appointed by the Ministry of Foreign Economic Relations
and Trade in accordance with the State provisions related to foreign trade.
Prior to the import or export of radioactive drugs, an application must be
made and be examined and approved by the Ministry of Public Health. Imported
radioactive drugs are required to meet the State standards for pharmaceuticals
or other medical requirements.

    Article 19  Imported radioactive drugs are subject to sample examination
by the State Administration for the Inspection and Testing of Pharmaceuticals
and Biological Products or by an inspection and testing institution of
pharmaceuticals authorized by the Ministry of Public Health. Only those drugs
that have met the State standards are allowed to be imported.

    As for the drugs with short half-life radionuclide previously approved by
the Ministry of Public Health, they may be put to use upon being shipped in
while having import inspection. If the import inspection unit finds the
quality of imported drugs not up to the standard, they must inform the
consuming units promptly to stop using the drugs. A report about the quality
problem must be submitted to both the Ministry of Public Health and the
Ministry of Energy.
Chapter IV  The Packaging and Shipment of Radioactive Drugs

    Article 20  The packaging of radioactive drugs must be safe and reliable,
and up to the standards for the quality requirements of radioactive drug.
There must be protection devices that will match different radio dosages. The
packaging is required to consist of packing and inner packaging. There must be
trade mark, label, specifications and marker of radioactive drugs on the
packing and a label on the inner packaging. On the label there must be name of
the drug, radiospecific activity and packings.

    The specifications must indicate the name of the producer, license number,
batch number, main composition, date of manufacture, half-life of
radionuclide, indications, administration, dosage, contraindication, expiry
date and precautions in addition to name of the drug, radiospecific activity
and packings.

    Article 21  The shipment of radioactive drugs shall be handled in
accordance with the rules formulated by the State transportation and postal
departments. No unit or person shall be allowed to carry along radioactive
drugs on any means of public transportation.
Chapter V  The Use of Radioactive Drugs

    Article 22  If a medical treatment unit desires to set up a radiologic
department or a radioisotope department, it is required to employ technical
personnel who are qualified for radiotherapeutic work after special technical
training. Without prior technical training no personnel shall be allowed to
use the drugs in radiotherapy.

    Article 23  When a medical treatment unit uses radioactive drugs, it must
observe the rules formulated by the State concerning radioisotope hygiene and
protection. The health administration department, the public security
department and the environment protection department at provincial, autonomous
regional or municipal (directly under the Central Government) level shall
issue a certain grade of License for the Use of Radioactive Drugs according to
technical skill and professional level of the radiological personnel and
equipment of the medical treatment unit. No medical treatment unit without a
license is allowed to use radioactive drugs clinically.

    The term of validity of a License for the Use of Radioactive Drugs is 5
years. If needed, the medical treatment unit must make a new application 6
months before the expiration of its license to the health administration
department which, after examination and verification shall issue it a new
license.

    Article 24  Before a medical treatment unit holding a License for the Use
of Radioactive Drugs starts the preparation of any forms of radioactive drug
for clinical use, it is required to submit an application with the data
concerning pharmacology and toxicity of the radioactive drug, according to the
characteristics of the radioactive drug, to the health administration
department at the provincial, autonomous regional or municipal (directly under
the Central Government) level for approval and to the Ministry of Public
Health for the record. That form of radioactive drug can be used only in the
medical treatment unit.

    Article 25  The medical treatment units that hold a License for the Use of
Radioactive Drugs are required to conduct clinical quality testing of the
radioactive drugs and find out their undesirable reactions and submit regular
reports to the health administration department. The health administration
department at the provincial, autonomous regional or municipal (directly under
the Central Government) level shall then present an itemized report to the
Ministry of Public Health.

    Article 26  Waste material of radioactive drugs (including patients’
excrement) must be properly disposed of in accordance with the State
regulations.
Chapter VI  The Standards for Radioactive Drugs and Their Testing

    Article 27  The Pharmacopoeia Commission under the Ministry of Public
Health is entrusted to formulate and revise the State standards for
radioactive drugs and then submit it to the Ministry of Public Health for
examination and approval before it is promulgated.

    Article 28  The State Administration for the Inspection and Testing of
Pharmaceuticals and Biological Products or an inspection and testing
institution of pharmaceuticals authorized by the Ministry of Public Health is
entrusted to inspect and examine radioactive drugs.
Chapter VII  Supplementary Provisions

    Article 29  Any unit or individual that violates these Measures shall be
penalized by the health administration department at or above the county level
in accordance with the Pharmaceutical Administration Law and other rules and
regulations.

    Article 30  The right to interpret these Measures resides in the Ministry
of Public Health.

    Article 31  These Measures shall go into effect as of the date of
promulgation.





INTERIM PROVISIONS CONCERNING THE USE OF DONATIONS IN FOREIGN EXCHANGE MADE BY OVERSEAS CHINESE AND COMPATRIOTS FROM HONG KONG, MACAO AND TAIWAN IN THE REGULATION OF FOREIGN EXCHANGE

Interim Provisions Concerning the Use of Donations in Foreign Exchange Made by Overseas Chinese and Compatriots From HONG KONG, MACAO
AND TAIWAN in the Regulation of Foreign exchange

     (Effective Date:1989.07.01–Ineffective Date:)

These Provisions are formulated, in accordance with the Provisions of the State Council Concerning the Administration of Imported
Goods and Materials Donated by Overseas Chinese and Compatriots from Hong Kong, Macao and Taiwan promulgated by the State Council
on February 20, 1989, in order to handle cases concerning the use of donations in foreign exchange made by overseas Chinese and compatriots
from Hong Kong, Macao and Taiwan to domestic units in the regulation of foreign exchange.

   Article 1. The term “donor(s)”, as used in these Provisions, refers to overseas Chinese and compatriots from Hong Kong, Macao and Taiwan.

   Article 2. The term “recipient-unit(s) of donations”, as used in these Provisions, refers to non-profit making social organizations and institutions,
including various nongovernmental organizations and associations, foundations, religious organizations, units of scientific research,
culture and education, medicine and public health, and units that undertake various kinds of public welfare.

   Article 3. When recipient-units wish to participate in the regulation of foreign exchange, they shall file an application to the State Administration
of Foreign Exchange Control, or to its local offices, on the strength of the following documents:

(1) A letter of intent furnished by the donor indicating his/her willingness to make the donation (including the amount of the donation
and its intended uses);

(2) The written approval, issued by the examining and approving department designated in accordance with the stipulations on limits
of powers for examination and approval in Document No. 110 issued by the State Council in 1982, indicating its approval for recipient-unit
to accept the donation in foreign exchange;

(3) The report by the recipient-unit applying for participation in the regulation of foreign exchange.

   Article 4. The foreign exchange donated to the governments at various levels by overseas Chinese and compatriots from Hong Kong, Macao and Taiwan
for disaster relief in their respective areas, shall be permitted to be used in the regulation of foreign exchange.

   Article 5. The amount of Renminbi(RMB) obtained by a recipient-unit from regulation of foreign exchange must be used in accordance with the
purpose of the donation specified in the donor’s letter of intent; the aforesaid amount of Renminbi(RMB) must not be used for other
purposes.

   Article 6. Anyone who participates in regulation of foreign exchange under the pretext of utilizing donations in foreign exchange, once the
case is verified to be true, shall be dealt with in accordance with the provisions in Rules for the Implementation of the Imposition
of Penalties on the Violations of Foreign Exchange Control.

Donations in foreign exchange made by Chinese who have acquired foreign citizenship to domestic units may be used in the regulation
of foreign exchange with reference to these Provisions.

These Provisions shall go into effect as of July 1, 1989.

    





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CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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