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The National People’s Congress
Order of the President of the People’s Republic of China
No.15
Contract Law of the People’s Republic of China has been adopted at the Second Session of the Ninth National People’s Congress on March
15, 1999, and is hereby promulgated, it will come into force as of October 1, 1999.
President of the People’s Republic of China Jiang Zemin
March 15, 1999
Contract Law of the People’s Republic of China
General Provisions
Chapter 1 General Provisions
Article 1
This Law is enacted in order to protect the lawful rights and interests of the contracting parties, to maintain social and economic
order, and to promote the process of socialist modernization.
Article 2
A contract in this Law refers to an agreement among natural persons, legal persons or other organizations as equal parties for the
establishment, modification of a relationship involving the civil rights and obligations of such entities.
Agreements concerning personal relationships such as marriage, adoption, guardianship, etc. shall be governed by the provisions in
other laws.
Article 3
Contracting parties shall have equal legal status, and no party may impose its will on the other party.
Article 4
The parties have the right to lawfully enter into a contract of their own free will in accordance with the law, and no unit or individual
may illegally interfere therewith.
Article 5
The parties shall adhere to the principle of fairness in deciding their respective rights and obligations.
Article 6
The parties shall observe the principle of honesty and good faith in exercising their rights and performing their obligations.
Article 7
In concluding and performing a contract, the parties shall comply with the laws and administrative regulations, respect social ethics,
and shall not disrupt the social and economic order or impair the public interests.
Article 8
A lawfully established contract shall be legally binding on the parties thereto, each of whom shall perform its own obligations in
accordance with the terms of the contract, and no party shall unilaterally modify or terminate the contract.
The contract established according to law is protected by law.
Chapter 2 Conclusion of Contracts
Article 9
In entering into a contract, the parties shall have appropriate capacities for civil rights and civil acts.
A party may appoint an agent to enter into a contract on its behalf in accordance with the law.
Article 10
The parties may use written, oral or other forms in entering into a contract.
A contract shall be in written form if the laws or administrative regulations so provide. A contract shall be concluded in written
form if the parties so agree.
Article 11
“Written form” refers to a form such as a written contractual agreement, letter, electronic data text(including a telegram, telex,
fax, electronic data exchange and e-mail)that can tangibly express the contents contained therein.
Article 12
The contents of a contract shall be agreed upon by the parties, and shall generally contain the following clauses:
(1)
post_titles or names and domiciles of the parties;
(2)
subject matter;
(3)
quantity;
(4)
quality;
(5)
price or remuneration;
(6)
time limit, place and method of performance;
(7)
liability for breach of contract; and
(8)
method to settle disputes.
The parties may conclude a contract by reference to a model text of each kind of contract.
Article 13
The parties shall conclude a contract in the form of an offer and an acceptance.
Article 14
An offer is an expression of an intent to enter into a contract with another person. Such expression of intent shall comply with the
following:
(1)
its contents shall be specific and definite;
(2)
it indicates that the offeror will be bound by the expression of intent in case of acceptance by the offeree.
Article 15
An invitation for offer is an expression of an intent to invite other parties to make offers thereto. Mailed price lists, public notices
of auction and tender, prospectuses and commercial advertisements, etc. are invitations for offer.
Where the contents of a commercial advertisement meet the requirements for an offer, it shall be regarded as an offer.
Article 16
An offer becomes effective when it reaches the offeree.
If a contract is concluded through data-telex, and a recipient designates a specific system to receive the date-telex, the time when
the data-telex enters such specific system shall be the time of arrival; if no specific system is appointed, the time when the data-telex
first enters any of the recipient’s systems shall be regarded as the time of arrival.
Article 17
An offer may be withdrawn. The withdrawal notice shall reach the offeree before or at the same time when the offer arrives.
Article 18
An offer may be revoked. The revocation notice shall reach the offeree before it has dispatched a notice of acceptance.
Article 19
An offer may not be revoked, if
(1)
the offeror indicates a fixed time for acceptance or otherwise explicitly states that the offer is irrevocable; or
(2)
the offeree has reasons to rely on the offer as being irrevocable and has made preparation for performing the contact.
Article 20
An offer shall lose efficacy under any of the following circumstances:
(1)
the notice of rejection reaches the offeror;
(2)
the offeror revokes the offer in accordance with the law;
(3)
the offeree fails to dispatch an acceptance before the expiration of the time limit for acceptance;
(4)
the offeree makes substantial changes to the contents of the offer.
Article 21
An acceptance is the expression of an intention to by the offeree to assent to the offer.
Article 22
The acceptance shall be made in the form of a notice, except where acceptance may be made by an act on the basis of customary business
practice or as expressed in the offer.
Article 23
An acceptance shall reach the offeror within the time limit prescribed in the offer.
Where no time limit is prescribed in the offer, the acceptance shall reach the offeror in accordance with the following provisions:
(1)
if the offer is made in dialogues, the acceptance shall be made immediately unless otherwise agreed upon by the parties;
(2)
If the offer is made in forms other than a dialogue, the acceptance shall reach the offeror within a reasonable period of time.
Article 24
Where an offer is made by letter or telegram, the time limit for acceptance shall accrue from the date shown in the letter or from
the date on which the telegram is handed in for dispatch. If no such date is shown in the letter, it shall accrue from the postmark
date on the envelope. Where an offer is made by means of instantaneous communication, such as telephone or facsimile, etc. the time
limit for acceptance shall accrue from the moment that the offer reaches the offeree.
Article 25
A contract is established when the acceptance becomes effective.
Article 26
An acceptance becomes effective when its notice reaches the offeror. If notice of acceptance is not required, the acceptance shall
become effective when an act of acceptance is performed in accordance with transaction practices or as required in the offer.
Where a contract is concluded in the form of date-telex, the time of arrival of an acceptance shall be governed by the provisions
of Paragraph 2, Article 16 of this Law.
Article 27
An acceptance may be withdrawn, but a notice of withdrawal shall reach the offeror before or at the same time when the notice of acceptance
reaches the offeror.
Article 28
Where an offeree makes an acceptance beyond the time limit for acceptance, the acceptance shall be a new offer except that the offeror
promptly informs the offeree of the effectiveness of the said acceptance.
Article 29
If the offeree dispatched the acceptance within the time limit specified for acceptance, and under normal circumstances the acceptance
would have reached the offeror in due time, but due to other reasons the acceptance reaches the offeror after the time limit for
acceptance has expired, such acceptance shall be effective, unless the offeror notifies the offeree in a timely manner that it does
not accept the acceptance due to the failure of the acceptance to arrive within the time limit.
Article 30
The contents of an acceptance shall comply with those of the offer. If the offeree substantially modifies the contents of the offer,
it shall constitute a new offer. The modification relating to the subject matter, quality, quantity, price or remuneration, time
or place or method of performance, liabilities for breach of contract and method of dispute resolution, etc. shall constitute the
substantial modification of an offer.
Article 31
If the acceptance does not substantially modifies the contents of the offer, it shall be effective, and the contents of the contract
shall be subject to those of the acceptance, except as rejected promptly by the offeror or indicated in the offer that an acceptance
may not modify the offer at all.
Article 32
Where the parties conclude a contract in written form, the contract is established when it is signed or sealed by the parties.
Article 33
Where the parties conclude the contract in the form of letters or data-telex, etc., one party may request to sign a letter of confirmation
before the conclusion of the contract. The contract shall be established at the time when the letter of confirmation is signed.
Article 34
The place of effectiveness of an acceptance shall be the place of the establishment of the contract.
If the contract is concluded in the form of data-telex, the main business place of the recipient shall be the place of establishment.
If the recipient does not have a main business place, its habitual residence shall be considered to be the place of establishment.
Where the parties agree otherwise, such agreement shall apply.
Article 35
Where the parties conclude a contract in written form, the place where both parties sign or affix their seals on the contract shall
be the place of establishment.
Article 36
Where a contract is to be concluded in written form as required by relevant laws and administrative regulations or as agreed by the
parties, and the parties failed to conclude the contract in written form, but one party has performed the principal obligation and
the other party has accepted it, the contract is established.
Article 37
Where a contract is to be concluded in written form, if one party has performed its principal obligation and the other party has accepted
it before signing or sealing of the contract, the contract is established.
Article 38
Where the State has issued a mandatory plan or a State purchasing order based on necessity, the relevant legal persons and the other
organizations shall conclude a contract between them in accordance with the rights and obligations as stipulated by the relevant
laws and administrative regulations.
Article 39
Where standard terms are adopted in concluding a contract, the party supplying the standard terms shall define the rights and obligations
between the parties abiding by the principle of fairness, and shall inform the other party to note the exclusion or restriction of
its liabilities in a reasonable way, and shall explain the standard terms upon request by the other party.
Standard terms are clauses that are prepared in advance for general and repeated use by one party, and which are not negotiated with
the other party when the contract in concluded.
Article 40
When standard terms are under the circumstances stipulated in Articles 52 and 53 of this Law, or the party which supplies the standard
terms exempts itself from its liabilities, increases the liabilities of the other party, and deprives the material rights of the
other party, the terms shall be invalid.
Article 41
If a dispute over the understanding of the standard terms occurs, it shall be interpreted in accordance with common understanding.
Where there are two or more kinds of interpretation, an interpretation unfavorable to the party supplying the standard terms shall
prevail. Where the standard terms are inconsistent with non-standard terms, the latter shall prevail.
Article 42
The party shall be liable for damage if it is under one of the following circumstances in concluding a contract and thus causing losses
to the other party:
(1)
pretending to conclude a contract, and negotiating in bad faith;
(2)
deliberately concealing important facts relating to the conclusion of the contract or providing false information;
(3)
performing other acts which violate the principle of good faith.
Article 43
A trade secret the parties learn in concluding a contract shall not be disclosed or improperly used, no matter the contract is established
or not. If the party discloses or improperly uses such trade secret and thus causing loss to the other party, it shall be liable
for damages.
Chapter 3 Validity of Contracts
Article 44
The contract established according to law becomes effective upon its establishment.
With regard to contracts that are subject to approval or registration as stipulated by relevant laws or administrative regulations,
the provisions thereof shall be followed.
Article 45
The parties may agree on that the effectiveness of a contract be subject to certain conditions. A contract whose effectiveness is
subject to certain conditions shall become effective when such conditions are accomplished. The contract with dissolving conditions
shall become invalid when such conditions are satisfied.
If a party improperly prevent the satisfaction of a condition for its own interests, the condition shall be regarded as having been
accomplished. If a party improperly facilitates the satisfaction of a condition, such condition shall be regarded as not to have
been satisfied.
Article 46
The parties may agree on a conditional time period as to the effectiveness of the contract. A contract subject to an effective time
period shall come into force when the period expires. A contract with termination time period shall become invalid when the period
expires.
Article 47
A contract concluded by a person with limited civil capacity of conduct shall be effective after being ratified afterwards by the
person’s statutory agent, but a pure profit-making contract or a contract concluded which is appropriate to the person’s age, intelligence
or mental health conditions need not be ratified by the person’s statutory agent.
The counterpart may urge the statutory agent to ratify the contract within one month. It shall be regarded as a refusal of ratification
that the statutory agent does not make any expression. A bona fide counterpart has the right to withdraw it before the contract is
ratified. The withdrawal shall be made by means of notice.
Article 48
A contract concluded by an actor who as no power of agency, who oversteps the power of agency, or whose power of agency has expired
and yet concludes it on behalf of the principal, shall have no legally binding force on the principal without ratification by the
principal, and the actor shall be held liable.
The counterpart may urge the principal to ratify it within one month. It shall be regarded as a refusal of ratification that the principal
does not make any expression. A bona fide counterpart has the right to withdraw it before the contract is ratified. The withdrawal
shall be made by means of notice.
Article 49
If an actor has no power of agency, oversteps the power of agency, or the power of agency has expired and yet concludes a contract
in the principal’s name, and the counterpart has reasons to trust that the actor has the power of agency, the act of agency shall
be effective.
Article 50
Where a statutory representative or a responsible person of a legal person or other organization oversteps his/her power and concludes
a contract, the representative act shall be effective except that the counterpart knows or ought to know that he/she is overstepping
his/her powers.
Article 51
Where a person having no right to disposal of property disposes of other persons’ properties, and the principal ratifies the act afterwards
or the person without power of disposal has obtained the power after concluding a contract, the contract shall be valid.
Article 52
A contract shall be null and void under any of the following circumstances:
(1)
a contract is concluded through the use of fraud or coercion by one party to damage the interests of the State;
(2)
malicious collusion is conducted to damage the interests of the State, a collective or a third party;
(3)
an illegitimate purpose is concealed under the guise of legitimate acts;
(4)
damaging the public interests;
(5)
violating the compulsory provisions of laws and administrative regulations.
Article 53
The following exception clauses in a contract shall be null and void:
(1)
those that cause personal injury to the other party;
(2)
those that cause property damages to the other party as result of deliberate intent or gross negligence.
Article 54
A party shall have the right to request the people’s court or an arbitration institution to modify or revoke the following contracts:
(1)
those concluded as a result of significant misconception;
(2)
those that are obviously unfair at the time when concluding the contract.
If a contract is concluded by one party against the other party’s true intentions through the use of fraud, coercion, or exploitation
of the other party’s unfavorable position, the injured party shall have the right to request the people’s court or an arbitration
institution to modify or revoke it.
Where a party requests for modification, the people’s court or the arbitration institution may not revoke the contract.
Article 55
The right to revoke a contract shall extinguish under any of the following circumstances:
(1)
a party having the right to revoke the contract fails to exercise the right within one year from the day that it knows or ought to
know the revoking causes;
(2)
a party having the right to revoke the contract explicitly expresses or conducts an act to waive the right after it knows the revoking
causes.
Article 56
A contract that is null and void or revoked shall have no legally binding force ever from the very beginning. If part of a contract
is null and void without affecting the validity of the other parts, the other parts shall still be valid.
Article 57
If a contract is null and void, revoked or terminated, it shall not affect the validity of the dispute settlement clause which is
independently existing in the contract.
Article 58
The property acquired as a result of a contract shall be returned after the contract is confirmed to be null and void or has been
revoked; where the property can not be returned or the return is unnecessary, it shall be reimbursed at its estimated price. The
party at fault shall compensate the other party for losses incurred as a result therefrom. If both parties are fault, each party
shall respectively be liable.
Article 59
If the parties have maliciously conducted collusion to damage the interests of the State, a collective or a third party, the property
thus acquired shall be turned over to the State or returned to the collective or the third party.
Chapter 4 Performance of Contracts
Article 60
Each party shall fully perform its own obligations as agreed upon.
The parties shall abide by the principle of good faith, and perform obligations of notification, assistance, and confidentiality,
etc. in accordance with the nature and purpose of the contract and the transaction practice.
Article 61
Where, after the contract becomes effective, there is no agreement in the contract between the parties on such contents as quality,
price or remuneration, or place of performance etc., or such agreement is ambiguous, the parties may agree upon supplementary terms
through consultation; if a supplementary agreement cannot be reached, such terms shall be determined in accordance with the relevant
provisions of the contract or the transaction practices.
Article 62
Where certain contents agreed upon by the parties in the contract are ambiguous and cannot be determined in accordance with the provisions
in Article 61 of this Law, the following provisions shall be applied:
(1)
if quality requirement is not clear, performance shall be in accordance with the state standard or industry standard; absent any state
or industry standard, performance shall be in accordance with the customary standard or any particular standard consistent with the
purpose of the contract;
(2)
if price or remuneration is not clear, performance shall be in accordance with the prevailing market price at the place of performance
at the time the contract was concluded, and if adoption of a price commissioned by the government or based on government issued pricing
guidelines is required by law, such requirement applies;
(3)
where the place of performance is not clear, if the obligation is payment of money, performance shall be at the place where the payee
is located; if the obligation is delivery of immovable property, performance shall be at the place where the immovable property is
located; for any other subject matter, performance shall be effected at the place of location of the party fulfilling the obligations.
(4)
if the time of performance is not clear, the obligor may perform, and the obligee may require performance, at any time, provided that
the other party shall be given the time required for preparation;
(5)
if the method of performance is not clear, performance shall be rendered in a manner which is conducive to realizing the purpose of
the contract;
(6)
if the responsibility for the expenses of performance is not clear, the party fulfilling the obligations shall bear the expenses.
Article 63
Where the government-fixed price or government-directed price is followed in a contract, if the said price is readjusted within the
time limit for delivery as stipulated in the contract, the payment shall be calculated according to the price at the time of delivery.
Where a party delays in delivering the subject matter, the original price shall be adopted if the price rises; and the new price
shall be adopted if the price falls. Where a party delays in taking delivery of the subject matter or making payment, the new price
shall be adopted if the price rises, and the original price shall be adopted if the price falls.
Article 64
Where the parties agree that the obligor shall perform the obligations to a third party, and the obligor fails to perform its obligations
to such third party or its performance of the obligations is not in conformity with the agreement, the obligor shall be liable to
the obligee for breach of contract.
Article 65
Where the parties agree that a third party performs the obligations to the obligee, and the third party fails to perform the obligations
or the performance is not in conformity with the agreement, the obligor shall be liable to the obligee for breach of contract.
Article 66
Where both parties have obligations toward one another and there is no order of priority in respect of the performance of obligations,
the parties shall perform the obligations simultaneously. Each party has the right to reject any demand by the other party for performance
prior to the performance by the other party. If the performance of the obligations of the party who is to perform first is not in
conformity with the agreement, the party who is perform later has the right to reject the other party’s demand for corresponding
performance.
Article 67
Where both parties have obligations toward each other and there is an order of priority in respect of the performance, and the party
who is to perform first fails to perform, the party who is to perform later has the right to reject the other party’s demand for
performance. If the performance of the obligations of the party who is to perform first is not in conformity with the agreement,
the party who is to perform later has the right to reject the other party’s demand for corresponding performance.
Article 68
The party required to perform first may suspend its performance if it has conclusive evidence showing that the other party is under
any of the following circumstances:
(1)
its business has seriously deteriorated;
(2)
it has engaged in transfer of assets or withdrawal of funds for the purpose of evading debts;
(3)
it has lost its business creditworthiness;
(4)
it is in any other circumstance which will or may cause it to lose its ability to perform.
Where a party suspends performance without conclusive evidence, it shall be liable for breach of contract.
Article 69
If a party suspends its performance in accordance with the provisions of Article 68 of this Law, it shall timely notify the other
party. If the other party provides appropriate assurance for its performance, the party shall resume performance. After performance
was suspended, if the other party fails to regain its ability to perform and fails to provide appropriate assurance within a reasonable
time, the suspending party may terminate the contract.
Article 70
Where the obligee fails to notify the obligor of its separation, merger, or change of the domicile, thereby making it difficult for
the obligor to perform its obligations, the obligor may suspend its performance or escrow the subject matter.
Article 71
The obligee may reject the obligor’s advance performance of its obligations, except that the advance performance does not harm the
obligee’s interests.
Any additional expense incurred by the obligee due to the obligor’s advance performance of its obligations shall be borne by the obligor.
Article 72
An obligee may reject the obligor’s partial performance, except that the partial performance of its obligations does not harm the
obligee’s interests.
Any additional expense incurred by the obligee due to the obligor’s partial performance of its obligations shall be borne by the obligor.
Article 73
Where the obligor is remiss in exercising its due creditor’s right, thereby harming the obligee’s interests, the obligee may petition
the People’s Court for subrogation in its own name, except that the creditor’s right exclusively belongs to the obligor.
The extent to which the subrogation rights can be exercised is limited to the obligee’s rights. The expenses necessary for the obligee
to exercise such subrogation rights shall be borne by the obligor.
Article 74
Where the obligor waives its creditor’s right against a third party that is due or assigns its property without reward, thereby harming
the obligee’s interests, the obligee may petition the People’s Court for cancellation of the obligor’s act. Where the obligor assigns
its property at a low price which is manifestly unreasonable, thereby harming the obligee’s interests, and the assignee is aware
of the situation, the obligee may also petition the People’s Court for cancellation of the obligor’s act.
The extent to which the right to cancel can be exercised is limited to the rights of the obligee. The expenses necessary for the obligee
to exercise the right to cancel shall be borne by the obligor.
Article 75
The right to cancel shall be exercised within one year form the date the obligee knows or should have known of the matter for cancellation.
Such right to cancel shall lapse if the obligee fails to exercise such rights within five years from the date of the occurrence of
such act.
Article 76
Once a contract becomes effective, a party may not refuse to perform its obligations thereunder due to a change in its name, or its
legal representative, the person in charge, or the person handling the contract.
Chapter 5 Modification and Assignment of Contracts
Article 77
A contract may be modified if the parties reach a consensus through consultation.
If the laws or administrative regulations so provide, approval and registration procedures for such modification shall be gone through
in accordance with such provisions.
Article 78
Where an agreement by the parties on the contents of a modification is ambiguous, the contract shall be presumed as not having been
modified.
Article 79
The obligee may assign its rights under a contract, in whole or in part, to a third party, except under the following circumstances:
(1)
such rights may not be assigned in light of the nature of the contract;
(2)
such rights may not be assigned according to the agreement between the parties;
(3)
such rights may not be assigned according to the provisions of the laws.
Article 80
Where the obligee assigns its rights, it shall notify the obligor. Such assignment will have no effect on the obligor without notice
thereof.
A notice by the obligee to assign its rights shall not be revoked, unless such revocation is consented to by the assignee.
Article 81
Where the obligee assigns its right, the assignee shall acquire the collateral rights related to the principal rights, except that
the collateral rights exclusively belong to the obligee.
Article 82
Upon receipt of the notice of assignment of rights, the obligor may assert against the assignee any defenses it has against the assignor.
Article 83
Upon receipt by the obligor of the notice of assignment of rights, the obligor shall have vested rights against the assignor, and
if the rights of the obligor vest prior to or at the same time as the assigned rights, the obligor may claim an offset against the
assignee.
Article 84
Where the obligor delegates its obligations under a contract in whole or in part to a third party, such delegation shall be subject
to the consent of the obligee.
Article 85
Where the obligor delegates its obligation, the new obligor may exercise any defense that the original obligor had against the obligee.
Article 86
Where the obligor delegates its obligation, the new obligor shall assume the incidental obligations related to the main obligations,
except that the obligations exclusively belong to the original obligor.
Article 87
Where the laws or administrative regulations stipulate that the assignment of rights or transfer of obligations shall undergo approval
or registration procedures, such provisions shall be followed.
Article 88
Upon the consent of the other party, one party may transfer its rights together with its obligations under contract to a third party.
Article 89
| Category |
SCIENCE AND TECHNOLOGY |
Organ of Promulgation |
The State Council |
Status of Effect |
In Force |
| Date of Promulgation |
1999-05-23 |
Effective Date |
1999-05-23 |
|
|
|
Regulations on State Science and Technology Prizes |
Chapter 1 General Principles
Chapter 2 The Establishment of State Science and Technology Prizes
Chapter 3 Evaluation and Conferment of State Science and Technology Prizes
Chapter 4 Penalty Provisions
Chapter 5 Supplementary Provisions
(Adopted at the Sixteenth Executive Meeting of the State Council on April 28, 1999, promulgated by Decree No. 265 of the State Council
of the People’s Republic of China on May 23, 1999)
Chapter 1 General Principles
Article 1 These Regulation are formulated in order to prize citizens and organizations who have made remarkable contributions to
the scientific and technological progress activities, mobilize the enthusiasm and creativity of scientific and technical workers,
promote the development of science and technology endeavors, and boost the overall national strength.
Article 2 The State Council establishes the following State science and technology prizes:
(1) State Highest Science and Technology Prize;
(2) State Natural Science Prize;
(3) State Technological Invention Prize;
(4) State Scientific and Technological Progress Prize;
(5) International Scientific and Technological Cooperation Prize of the People’s Republic of China.
Article 3 The State science and technology prizes follow the guideline of valuing knowledge and respecting talents.
Article 4 The State maintains the solemnity of the State science and technology prizes.
The evaluation and grant of the State science and technology prizes shall not be illegally interfered by any
organizations or individuals.
Article 5 The administrative department of science and technology under the State Council is responsible for organizing the evaluation
of State science and technology prizes.
Article 6 The State establishes the State Science and Technology Prizes Committee, which invites experts and scholars in relevant
fields to form an Evaluation Committee that are responsible for evaluating the State science and technology prizes according to the
provisions of these Regulations.
The candidates for members of the State Science and Technology Prizes Committee shall be proposed by the administrative
department of science and technology of the State Council, and then submitted to the State Council for approval.
Article 7 The establishment of society-oriented science and technology prizes by social non-governmental sectors shall be through
registration procedures with administrative departments of science and technology. The specific measures are to be formulated by
the administrative department of science and technology of the State Council.
Non-governmental sectors establishing society-oriented science and technology prizes upon registration shall
not charge any fees in prizeing activities.
Chapter 2 The Establishment of State Science and Technology Prizes
Article 8 The State Highest Science and Technology Prize is granted to the following scientific and technical workers:
(1) those who have made great breakthroughs at the frontier of contemporary science and technology or who
have made remarkable contributions to the development of science and technology.
(2) those who have created great economic or social profits through innovation of science and technology,
transformation of scientific and technological results, and industrialization of high-tech.
The State Highest Science and Technology Prize is granted to no more than 2 persons each year.
Article 9 The State Natural Science Prize is granted to citizens who have made significant scientific discoveries in illuminating
natural phenomena, characteristics and laws in fundamental research and applied fundamental research.
The significant scientific discoveries mentioned in the preceding paragraph shall meet the following conditions:
(1) predecessors have not yet discovered or illuminated them;
(2) they have significant scientific value;
(3) they have been acknowledged by both domestic and foreign natural science circles.
Article 10 The State Technological Invention Prize is granted to citizens who have made significant technological inventions by applying
scientific and technological knowledge to achieve products, technologies, materials and its systems.
The significant technological inventions mentioned n the preceding paragraph shall meet the following conditions:
(1) predecessors have not yet invented them or made them public;
(2) they possess innovativeness and creativeness;
(3) they can bring remarkable economic and social benefits after implementation.
Article 11 The State Scientific and Technological Progress Prize is granted to the following citizens and organizations that have
made remarkable contributions to the application and dissemination of advanced scientific and technological results and the accomplishment
of significant scientific and technological projects, plans and programs:
(1) those who, in the implementation of technological development programs, have accomplished significant
scientific and technological innovations, or transformation of scientific and technological results, thus creating remarkable economic
profits;
(2) those who, in the implementation of social and public interests programs, have been engaged
in fundamental scientific and technological work and in scientific and technological endeavors for social and public interests for
a long period, and tested through practice, have produced remarkable social benefits;
(3) those who, in the implementation of the State security programs, have made great scientific and technological
contributions to promoting the construction of modernization of national defense and safeguarding security of the State;
(4) those who, in the implementation of major engineering programs, have guaranteed the meeting of the projects
with international advanced standards.
The State Scientific and Technological Progress Prize for major engineering programs mentioned in Sub-paragraph
(4) of the preceding paragraph is only granted to organizations.
Article 12 The International Scientific and Technological Cooperation Prize of the People’s Republic of China is granted to the following
foreigners or foreign organizations that have made great contributions to China’s scientific and technological endeavors:
(1) those who have made great scientific and technological achievements in cooperative research and development
with Chinese citizens or organizations;
(2) those who have achieved particularly remarkable results in introducing advanced science and technology
to Chinese citizens and organizations as well as in training talents;
(3) those who have made great contributions to the promotion of international scientific and technological
exchange and cooperation between China and foreign countries.
Article 13 The State Highest Science and Technology Prize and the International Scientific and Technological Cooperation Prize of
the People’s Republic of China are not classified into different grades.
The State Natural Science Prize, the State Technological Invention Prize and the State Scientific and Technological
Progress Prize are classified into two grades, i.e. the First Award and the Second Award.
With regard to the State Natural Science Prize, the State Technological Invention and National Prize and the
State Scientific and Technological Progress Award, the total number of programs granted awards each year shall not be more than 400.
Chapter 3 Evaluation and Conferment of State Science and Technology Prizes
Article 14 Evaluations are carried out once a year for the State science and technology prizes.
Article 15 The candidates for State science and technology prizes shall be nominated by the following units and individuals:
(1) the people’s government of provinces, autonomous regions or municipalities directly under the Central
Government;
(2) the relevant departments of, and agencies directly subordinate to, the State Council;
(3) the general departments of the Chinese People’s Liberation Army;
(4) other units and experts of science and technology conforming to the qualification requirements provided
for by the administrative department of science and technology of the State Council that have confirmed by the administrative department
of science and technology of the State Council .
The candidate for the State science and technology prizes nominated by the nominating units mentioned in the
preceding paragraph shall be decided according to the suggestions of the experts of science and technology in the relevant fields
about the evaluation results on their scientific and technological achievements, the categories and the grades of prizes.
Measures for nominating candidates for the State science and technology prizes in Hong Kong, Macao and Taiwan
are to be formulated by the administrative department of science and technology of the State Council.
Embassies and consulates of the People’s Republic of China stationed in foreign countries may nominate candidates
for the International Scientific and Technological Cooperation Prize of the People’s Republic of China.
Article 16 Candidates nominated by nominating units and individuals for the State science and technology prizes shall be nominated
in a limited quota; and when making the nomination, the nominating units and individuals shall fill out a unified letter of nomination
and provide true and reliable materials for evaluation.
Article 17 The Evaluation Committee shall make a conclusion of verification of scientific and technological achievements, and make
a proposal on persons selected to receive prizes, the categories, and the grades of prizes to the State Science and Technology Prizes
Committee.
The State Science and Technology Prizes Committee shall make a decision on the persons selected to receive
prizes, the categories and the grades of prizes on the basis of the proposal made by the Evaluation Committee.
The rules of evaluation for the State science and technology prizes is to be formulated by the administrative
department of science and technology of the State Council.
Article 18 The administrative department of science and technology of the State Council shall examine and verify the decision made
by the State Science and Technology Prizes Committee about the persons selected to receive prizes, the categories and the grades
of prizes for the State science and technology prizes, and the report to the State Council for approval.
Article 19 The State Highest Science and Technology Prize are submitted to the President for signature and grant of the certificate
and prize money.
The certificate and prize money for the State Natural Science Prize, the Technological Invention Prize and
the State Scientific and Technological Progress Prize are granted by the State Council.
The certificate for the International Scientific and Technological Cooperation Prize of the People’s Republic
of China are granted by the State Council.
Article 20 The sum of prize money for the State Highest Science and Technology Prize is prescribed by the State Council.
The sum of prize money for the State Natural Science Prize, the State Technological Invention Prize
and the State Scientific and Technological Progress Prize is prescribed by the administrative department of science and technology
of the State Council together with the department of finance of the State Council.
The outlays for the awards for the State science and technology prizes shall be listed in and paid from the
budget of the Central government.
Chapter 4 Penalty Provisions
Article 21 The prize shall be withdrew and the prize money shall be refunded by the administrative department of science and technology
of the State Council after the approval of the State Council, if the State science and technology prizes are found to be gained by
plagiarizing or trespassing others’ discoveries, inventions or other scientific and technological achievements or by any other cheating
acts.
Article 22 The administrative department of science and technology of the State Council shall send out a circular, criticizing the
units and individuals that provide false data and materials and assist others to gain the State science and technology prizes by
cheating; for those serious cases, the qualification of nomination is suspended temporarily or withdrew permanently; people who take
direct responsibility will be given administrative punishments in accordance with laws.
Article 23 Society-oriented science and technology prizes, which are established by non-government sectors without registration and
permission, will be banned by the administrative departments of science and technology.
Non-government sectors that have established society-oriented science and technology prizes, if charging fees
in the prizing activities, shall be have the fees charged confiscated by the administrative departments of science and technology,
and may be impose a fine of not less than 1 time but not more than 3 times the fees charged; for serious cases, the registration
shall be cancelled.
Article 24 Personnel participating in evaluation activities of State science and technology prizes and related work, if engaging
in deception or practicing personal favoritism, shall be imposed administrative sanctions according to law.
Chapter 5 Supplementary Provisions
Article 25 The relevant departments of the State Council may establish ministerial-level science and technology prizes according
to special situations of national defense and State security. The specific measures are to be formulated by the relevant departments
of the State Council, which shall be submitted to the administrative department of science and technology of the State Council.
The people’s governments of provinces, autonomous regions and municipalities directly under the Central Government
may establish one provincial-level prize of science and technology. The specific measures are formulated by people’s governments
of provinces, autonomous regions and municipalities directly under the Central Government, which shall be submitted to the administrative
department of science and technology of the State Council.
Article 26 These Regulation shall take effect as of the date of promulgation. The Regulations of the People’s Republic of China on
Natural Science Prizes, the Regulations of the People’s Republic of China on Invention Prizes and the Regulations of the People’s
Republic of China on Scientific and Technological Progress Prizes revised and promulgated by the State Council on June 28, 1993 are
repealed at the same time.
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The state Administration of Taxation
Circular of the State Administration of Taxation on the Tax of Donations Received by the Enterprises with Foreign Investment and Foreign
Enterprises
GuoShuiFa [1999] No.195
October 18, 1999
The state and local Bureaus of Taxation of province, autonomous region, municipality directly under the Central Government and municipality
separately listed on the State plan and Shenzhen local taxation Bureau:
The issue on the tax of donations received by the institutions and branches set up in China by the enterprises with foreign investment
and foreign enterprises (hereinafter referred as enterprises) should be clarified as following:
I.
The no-capital assets (fixed assets, immateriality assets and others goods) should be reckoned into the relevant assets after rational
assessment. As the annual income of the enterprises making up the previous loss, the balance should be levied the income tax of enterprises.
If the balance is so large that it is difficult to pay the income tax at a time, the enterprises can apply the local taxation institutions
for approval that it can be reckoned into the income tax in average within 5 years.
II.
The currency donations received by the enterprises should be reckoned into the annual income at a time and levied the income tax
III.
The fund which the debtor has not required the enterprises to pay after two years should be entered into the annual income and levied
the income tax.
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