OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION ON ISSUES CONCERNING TAXATION ON INTEREST INCOME OF ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES FROM PURCHASING TREASURY BONDS

The State Administration of Taxation

Official Reply of the State Administration of Taxation on Issues Concerning Taxation on Interest Income of Enterprises with Foreign
Investment and Foreign Enterprises from Purchasing Treasury Bonds

GuoShuiHan [1999] No.818

December 1,1999

Beijing State Taxation Bureau:

Your Request for Instruction on the Taxation of Interest Income of Enterprises with Foreign Investment and Foreign Enterprises from
Purchasing Treasury Bonds has been received. The reply is given as follows upon deliberation:

According to Article 12 of the Regulations on Treasury Bonds of the People’s Republic of China (the decree No.95 of the State Council)
promulgated by the State Council on March 18,1992, the interest income of enterprises with foreign investment and foreign enterprises
from purchasing treasury bonds is exempted from corporate income tax. But proceeds from assignment of treasury bonds shall be levied
corporate income tax according to law.

The State Administration of Taxation
1999-12-01

RESOLUTION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON CONTINUED DISSEMINATION OF AND EDUCATION IN THE LEGAL SYSTEM

Resolution of the Standing Committee of the National People’s Congress on Continued Dissemination of and Education in the Legal System

Dissemination of and education in the legal system, which began in 1986, has been going on for ten years and has played a positive
role in enhancing the whole nation’s understanding of the legal system, promoting the development of socialist democracy and the
socialist legal system and ensuring success in reform and the open policy and progress of the socialist modernization drive. In order
to meet the need of building and improving the system of a socialist market economy and promoting fulfillment of the Ninth Five-Year
Plan for national economic and social development and attainment of the Outline of the Long-Range Objectives through the Year 2010,
the Standing Committee of the National People’s Congress believes that it is necessary to implement a third five-year plan (1996-2000)
for dissemination of and education in the legal system among citizens. The purpose is, through continued and deepened dissemination
of and education in the legal system, focusing on the Constitution, the basic laws and the knowledge of laws governing the socialist
market economy, to further enhance all citizens’ conception of the legal system and their awareness of the importance of laws, help
cadres at all levels steadily raise their level and increase their ability of handling matters and administering affairs in accordance
with law, see to it that acts mut be compatible with the existing laws, laws must be enforced strictly and any violation of law must
be investigated, and push forward the process of administering State affairs according to law and building the country under a socialist
legal system. Hence, the Standing Committee has adopted the resolution as follows:

1. All citizens who are able to do so should receive publicity of and education in the legal system and carefully study the Constitution
and acquire knowledge of the relevant laws, so that they will be able to understand the laws, observe them and protect the lawful
rights and interests of the State, the collective and the individual in accordance with law.

2. Leading cadres at all levels, senior leading cardres in particular, should take the lead in studying the Constitution and acquiring
knowledge of the laws, abiding by the Constitution and laws and handling matters strictly in accordance with law, so that they will
make policy decisions and administer affairs according to law.

Cadre schools of all types and at all levels should make education in the legal system a required course. When examining or appraising
their cadres, all departments and local authorities should see whether they have acquired the necessary knowledge of laws and whether
they can handle matters strictly in accordance with law, which should be made one of the major qualifications.

3. Law-enforcing officers of judicial organs and administrative law- enforcing organs should, according to need of their work, receive
training in the knowledge of laws, proficiently master and apply the laws and rules and regulations as required by their own jobs,
enhance their own understanding of laws and perform their duties in accordance with law, so that they can administer affairs according
to law and execute justice impartially.

4. Managers and administers of enterprises and institutions should make mastery of the knowledge of the laws governing the socialist
market economy a necessary qualification and study the relevant laws, rules and regulations in connection with the actual conditions
of their own enterprise or institution, so that they can manage or administer affairs strictly in accordance with law, conscientiously
observe market order and safeguard public interests.

5. Teenagers should acquire the necessary knowledge of laws. Universities, colleges, secondary schools (including the secondary
technical schools) and primary schools should all offer education in the legal system. Organizations at the grassroots level should
pay attention to education in the general knowledge of laws among teenagers in society at large.

6. Vivid dissemination of and education in the legal system should be conducted in different forms to suit the different characteristics
of people and stress should be placed on actual results. Departments of culture, the press, publishing, radio, television and film
should give full play to the important role of the mass media and actively disseminate and conduct education in the legal system.

7. Dissemination of and education in the legal system should be conducted in connection with the application of the system and the
actual economic and social development and with the aim of promoting the lawful management of all undertakings. Lawful administration
of the affairs of a village, town, county, city or province and lawful management of different trades and departments should be promoted
with the high aim of administering State affairs according to law in mind.

8. Implementation of the third five-year plan for disseminating and conducting education in the legal system among citizens and its
continued and deepened dissemination and education are the common obligation of the society as a whole and must be accomplished under
the leadership of the Chinese Communist Party and by mobilizing and relying on all sectors of the society. All State organs and armed
forces, all political parties and public organizations, and all enterprises and institutions should conscientiously disseminate and
conduct education in the legal system among citizens working in there. The standing committees of the people’s congresses and the
people’s governments at all levels should exercise firm leadership and supervision over the implementation of the plan and this Resolution
and take effective measures to carry out the work steadily as a regular practice and make it a rule, so that studying and applying
laws and handling matters in accordance with law will become a social conduct throughout the society and a good legal environment
will be created for reform and the open policy and for the socialist modernization drive.

MOFTEC P.R.C.

EDITOR:Victor

CIRCULAR OF THE CHINA INSURANCE REGULATORY COMMISSION ON THE INTERIM MEASURES ON THE ADMINISTRATION OF CONCURRENT-BUSINESS INSURANCE AGENCY

The China Insurance Regulatory Commission

Circular of the China Insurance Regulatory Commission on the Interim Measures on the Administration of Concurrent-business Insurance
Agency

BaoJianFa [2000] No.144

August 4, 2000

Chapter I General Provisions

Article 1

These Measures are enacted in accordance with the “Insurance Law of the People’s Republic of China” in order to strengthen the administration
of concurrent-business insurance agents, regulate the acts of concurrent-business insurance agencies, maintain the order of the insurance
market, and promote the healthy development of the insurance industry.

Article 2

Concurrent-business insurance agents shall refer to the entities which are entrusted by the insurers to handle insurance business
on behalf of the latter at the time of engaging in their own business.

Article 3

Concurrent-business insurance agents shall, when engaging in the business of insurance, abide by the relevant laws and regulations
of the State and administrative rules, and shall comply with the principles of volunteerism, honesty and credibility.

Article 4

The legal liabilities occurred from a concurrent-business insurance agent’s agency of insurance business within the scope of the insurer’s
authorization shall be borne by the insurer.

Article 5

No party or governmental organization or its functional department, public institution or social organization shall engage in the
business of insurance agency.

Chapter II Administration on the Agency Qualifications

Article 6

The application for the qualification of concurrent-business insurance agent and the modification of relevant contents shall be reported
by the principal insurance company to China Insurance Regulatory Commission (hereinafter referred to as “CIRC”) for approval.

Article 7

Whoever applies for the qualification for concurrent-business insurance agency shall meet the following conditions:

(1)

having the business license checked and issued by the administrative organ of industry and commerce;

(2)

having the source of a certain scale of business of insurance agency directly relating to its major business;

(3)

having a fixed business premises;

(4)

having the conveniences to directly undertake the agency of insurance business in its business premises.

Article 8

Whoever applies for the qualification for concurrent-business insurance agency shall submit the following documents to CIRC:

(1)

an application form for the qualification to be a concurrent-business insurance agent (in triplet);

(2)

a duplicate of the copy of industrial and commercial business license;

(3)

a duplicate of the “Organization Code Certificate”;

(4)

a computer data disk for applying for the qualification to be a concurrent-business insurance agent;

(5)

a duplicate of the principal insurance company’s “License for Operating Insurance Business”;

(6)

PROVISIONAL PROCEDURES OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA GOVERNING THE LEVYING OF VESSEL TONNAGE DUES IMPORT GOODS

PROVISIONAL RULES OF PROCEDURE OF THE MARITIME ARBITRATION COMMISSION OF THE CHINA COUNCIL FOR THE PROMOTION OF INTERNATIONAL TRADE

REGULATIONS ON ARREST AND DETENTION

Regulations of the PRC on Arrest and Detention

(Effective Date:1979.02.23–Ineffective Date:)

Article 1. These Regulations are formulated in accordance with the provisions of Articles 18 and 47 of the Constitution of the People’s Republic
of China, in order to safeguard the socialist system, maintain public order, punish crimes, uphold citizens’ freedom of the person
and protect their homes against any violation.

Article 2. No citizen of the People’s Republic of China may be arrested except by decision of a people’s court or with the approval of a people’s
procuratorate.

Article 3. When it is necessary to arrest an offender the principal facts of whose crime have already been clarified and who could be sentenced
to a punishment of not less than imprisonment, he shall be immediately arrested by decision of a people’s court or with the approval
of a people’s procuratorate.

If an offender liable to arrest is gravely ill or is a woman who is pregnant or is breast-feeding her own child, an alternative measure
may be adopted to allow the offender to obtain a guarantor pending trial or live at home under surveillance.

Article 4. The arrest of an offender, as decided by a people’s court or approved by a people’s procuratorate, shall be carried out by a public
security organ.

When a public security organ demands the arrest of an offender, it shall obtain the approval of a people’s procuratorate.

Article 5. When a public security organ arrests an offender, it must hold an arrest warrant and announce the arrest to the person to be arrested.
Within 24 hours after the arrest, the public security organ, the people’s procuratorate or the people’s court shall notify the family
of the arrested person of the reason for arrest and the place of custody, except where notification would hinder the investigation
or there is no way to notify them.

Article 6. In any of the following emergency circumstances, a public security organ may first detain a major suspect or an active criminal who,
on the basis of his crime, should be arrested:

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

(2) if he is identified as having committed a crime by the victim or by an eyewitness;

(3) if he is found to have criminal evidence on his person or at his residence;

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

(5) if he may possibly destroy or falsify evidence, or collude with others to devise a consistent story;

(6) if his identity is unclear and there is strong suspicion that he is a person who goes from place to place committing crimes; or

(7) if he is engaged in beating, smashing, looting or raiding and is gravely undermining work, production or public order.

Article 7. Any citizen may forthwith seize the following offenders and deliver them to a public security organ, a people’s procuratorate or
a people’s court for handling:

(1) a person who is in the process of committing a crime or is discovered immediately after committing a crime;

(2) a person who is wanted for arrest;

(3) a person who has escaped from prison; or

(4) a person who is being pursued for arrest.

Article 8. In cases where a public security organ considers it necessary to arrest an offender whom it has detained, it shall, within three
days of detention, give notice to the people’s procuratorate at the same level of the facts and evidence related to the crime of
the detained person. Under special circumstances, the time of detention may be extended for four more days. The people’s procuratorate
shall decide whether or not to approve arrest within three days after receiving the notice. In cases where the people’s procuratorate
decides not to approve arrest, the public security organ shall, immediately after being notified of the decision, release the detained
person and issue him a release certificate.

If the public security organ or the people’s procuratorate has not handled a matter in accordance with the provisions of the preceding
paragraph, the detained person and his family have the right to demand his release, and the public security organ or the people’s
procuratorate shall immediately release him.

Article 9. In dealing with offenders who resist arrest or detention, the personnel carrying out the arrest or detention may take proper coercive
measures and may use weapons when necessary.

Article 10. In order to look for criminal evidence when arresting or detaining an offender, the public security organ may conduct a search of
his person, articles and residence and other relevant places. If it suspects any other person of hiding the offender or concealing
criminal evidence, it may also conduct a search of that person, his articles and residence and other relevant places. Except in emergency
situations, the public security organ must have a search warrant during a search.

During a search, the person being searched or his family members, as well as his neighbours or other witnesses shall be present. After
the search, a record shall be made of the circumstances of the search and of any physical evidence of the crime seized. The record
shall be signed by the person searched or his family members, by his neighbours or other witnesses, and by the personnel conducting
the search. If the person to be searched or his family members are fugitives or refuse to sign, this shall be noted in the record.

Article 11. When a people’s court, a people’s procuratorate or a public security organ considers it necessary to seize the mail and telegrams
of an arrested or detained offender, they may notify the postal and telecommunications organs to do so.

Article 12. The people’s court, the people’s procuratorate or the public security organ must conduct interrogation of the arrested or detained
offender within 24 hours of his arrest or detention. If it is discovered that he should not have been arrested or detained, he must
immediately be released and issued a release certificate.

Article 13. The people’s procuratorate shall investigate and deal with persons responsible for any unlawful arrest, detention or search of a
citizen. Where such unlawful action has been taken for the purpose of frame-up, retaliation, taking bribes or other personal aims,
criminal responsibility shall be investigated.

Article 14. The provisions of these Regulations are not applicable to detentions executed by the public security organs as administrative sanctions
against citizens who have violated the security administration rules.

Article 15. These Regulations shall go into effect on the day of their promulgation. The Regulations on Arrest and Detention of the People’s
Republic of China promulgated on December 20, 1954 shall be invalidated simultaneously.

INCOME TAX LAW CONCERNING CHINESE-FOREIGN EQUITY JOINT VENTURES

Category	TAXATION	Organ of Promulgation	The National People’s Congress	Status of Effect	With An Amendment Existing
Date of Promulgation	1980-09-10	Effective Date	1980-09-10

Income Tax Law of the People’s Republic of China Concerning Chinese-foreign Equity Joint Ventures

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

September 10, 1980 and promulgated for implementation by Order No.10 of the
Chairman of the Standing Committee of the National People’s Congress on
September 10, 1980) (Editor’s Note: For the revised text, see Decision of the
Standing Committee of the National People’s Congress Regarding Revision of
the Income Tax Law of the People’s Republic of China Concerning
Chinese-Foreign Equity Joint Ventures promulgated on September 2, 1983)

Article 1 Income tax shall be paid in accordance with this Law by
Chinese-foreign equity joint ventures (hereinafter referred to as “joint
ventures”) within the territory of the People’s Republic of China on their
income from production, business operations and other sources.

Income tax on the income derived from production, business operations
and other sources by branches and subbranches of a joint venture that are
within and outside the territory of China shall be paid by their head office
on a consolidated basis.

Article 2 The taxable income of a joint venture shall be the amount
remaining from its gross income in a tax year after the costs, expenses and
losses have been deducted.

Article 3 The income tax rate on joint ventures shall be 30%. In addition
, a local income tax of 10% Of the assessed income tax shall be levied.

The income tax rates on joint ventures exploiting petroleum, natural gas
and other resources shall be stipulated separately.

Article 4 In the case of a foreign joint venturer remitting out of China
its share of profit obtained from the venture, an income tax of 10% shall be
levied on the remitted amount.

Article 5 A joint venture scheduled to operate for a period of 10 years
or more shall, upon approval the tax authorities of an application filed by
the venture, be exempted from income tax in the first two years after it has
begun to make a profit and allowed a 50% reduction in the third through the
fifth years.

With the approval ol the Ministry of Finance of the People’s Republic of
China, joint ventures engaged in low-profit operations such as farming and
forestry or joint ventures established in remote, economically
under-developed areas may be allowed a 15-30% reduction in income tax for a
period of another ten years following the expiration of the term for exemption
and reductions prescribed in the preceding paragraph.

Article 6 A joint venturer which reinvests in China its share of profit
obtained from the venture for a period of not less than five years shall,
upon approval by the tax authorities of an application filed by the joint
venturer, be refunded 40% of the income tax already paid on the reinvested
amount. If it withdraws the reinvested funds before the end of the fifth year,
it shall repay the refunded tax.

Article 7 Losses incurred by a joint venture in a tax year max, be made
up with a corresponding amount drawn from next year’s income. Should the
income in the subsequent tax year be insufficient to make up for the said
losses, the balance may be made up with further deductions from its income
year by year, but within a period not exceeding five years.

Article 8 Income tax on joint ventures shall be computed and levied in
an annual basis and paid advance in quarterly instalments. Such advance
payments shall be made within 15 days after the end of each quarter, and the
final settlement shall be made within five months after the end of each tax
year, with a refund for any overpayment or a supplemental payment for any
deficiency.

Article 9 Joint ventures shall file their income tax returns in respect
of advance payments with the local tax authorities within the period
prescribed for advance payments, and shall file their annual income tax
returns together with the statements of final accounts within four months
after the end of the tax year.

Article 10 Income tax on joint ventures shall be computed in terms of
Renminbi (RMB). Income in foreign currency shall be taxed on the equivalent
amount converted into Renminbi according to the exchange rate quoted by the
State General Administration of Exchange Control of the People’s Republic
of China.

Article 11 When a joint venture starts operations, changes its line of
production, moves to a new site, ceases to operate or assigns its registered
capital, it shall present the relevant certificates for tax registration
with the local tax authorities within 30 days after registering with the
General Administration for Industry and Commerce of the People’s Republic
of China.

Article 12 The tax authorities shall have the right to inspect the
financial, accounting and tax affairs of joint ventures. The joint ventures
must make reports according to the facts and provide all relevant
information; they may not refuse to cooperate and may not conceal the facts.

Article 13 A joint venture must pay its tax within the prescribed time
limit. In case of failure to do so, the tax authorities, in addition to
setting a new time limit for tax payment, shall impose a surcharge for
overdue payment equal to 0.5% of the overdue tax for every day in arrears,
starting from the first day payment becomes overdue.

Article 14 The tax authorities may, in light of the circumstances,
impose a fine on a joint venture which has violated the provisions of
Articles 9, 11 or 12 of this Law.

In dealing with any joint venture which has evaded or refused to pay tax,
the tax authorities, in addition to pursuing the tax payment, impose a fine
of not more than five times the amount of the tax underpaid or not paid, in
accordance with the seriousness of the case. Cases of gross violation shall be
handled by the local people’s courts in accordance with the law.

Article 15 In case of a dispute with the tax authorities over tax
payment, a joint venture must pay tax according to the relevant regulations
before applying to higher tax authorities for reconsideration. If it does not
accept the decision made after such reconsideration, it may bring suit in the
local people’s court.

Article 16 Income tax paid abroad by a joint venture or its branches or
subbranches may be credited against the assessed income tax of the head office.

When agreements on avoidance of double taxation have been concluded
between the Government of the People’s Republic of China and foreign
governments, income tax credits shall be handled in accordance with the
provisions of the respective agreements.

Article 17 Rules for the implementation of this Law shall be formulated
by the Ministry of Finance of the People’s Republic of China.

Article 18 This Law shall go into effect on the day of its promulgation.

REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON LABOUR MANAGEMENT IN JOINT VENTURES USING CHINESE AND FOREIGN INVESTMENT

RULES FOR THE IMPLEMENTATION OF THE INDIVIDUAL INCOME TAX LAW OF THE PEOPLE’S REPUBLIC OF CHINA

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING APPROVAL OF CASES INVOLVING THE DEATH SENTENCE

China Laws

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS CONCERNING THE SUPPRESSION OF THE FALSIFICATION, COUNTERFEITING, AND ILLEGAL...

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING HALTING THE DEVELOPMENT OF PYRAMID RETAILING

OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION ON ISSUES CONCERNING TAXATION ON INTEREST INCOME OF ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES FROM PURCHASING TREASURY BONDS

RESOLUTION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON CONTINUED DISSEMINATION OF AND EDUCATION IN THE LEGAL SYSTEM

CIRCULAR OF THE CHINA INSURANCE REGULATORY COMMISSION ON THE INTERIM MEASURES ON THE ADMINISTRATION OF CONCURRENT-BUSINESS INSURANCE AGENCY

PROVISIONAL PROCEDURES OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA GOVERNING THE LEVYING OF VESSEL TONNAGE DUES IMPORT GOODS

PROVISIONAL RULES OF PROCEDURE OF THE MARITIME ARBITRATION COMMISSION OF THE CHINA COUNCIL FOR THE PROMOTION OF INTERNATIONAL TRADE

REGULATIONS ON ARREST AND DETENTION

INCOME TAX LAW CONCERNING CHINESE-FOREIGN EQUITY JOINT VENTURES

REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON LABOUR MANAGEMENT IN JOINT VENTURES USING CHINESE AND FOREIGN INVESTMENT

RULES FOR THE IMPLEMENTATION OF THE INDIVIDUAL INCOME TAX LAW OF THE PEOPLE’S REPUBLIC OF CHINA

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING APPROVAL OF CASES INVOLVING THE DEATH SENTENCE

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7