AGREEMENT ON ENCOURAGEMENT AND RECIPROCAL PROTECTION OF INVESTMENTS BETWEEN THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE KINGDOM OF THE NETHERLANDS

AGREEMENT ON ENCOURAGEMENT AND RECIPROCAL PROTECTION OF INVESTMENTS BETWEEN THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE
GOVERNMENT OF THE KINGDOM OF THE NETHERLANDS

The Government of the People’s Republic of China and the Government of the Kingdom of the Netherlands (hereinafter referred to as
the “Contracting Parties”),

Desiring to strengthen their traditional ties of friendship and to extend and intensify the economic relations between them, particularly
with respect to investments by the investors of one Contracting Party in the territory of the other Contracting Party,

Recognising that agreement upon the treatment to be accorded to such investments will stimulate the flow of capital and technology
and the economic development of the Contracting Parties and that fair and equitable treatment of investment is desirable,

Have agreed as follows:

Article 1

DEFINITIONS

For the purpose of this Agreement,

The term “investment” means every kind of asset invested by investors of one Contracting Party in the territory of the other Contracting
Party, and in particular, though not exclusively, includes:

(a)

movable and immovable property and other property rights such as mortgages and pledges;

(b)

shares, debentures, stock and any other kind of participation in companies;

(c)

claims to money or to any other performance having an economic value associated with an investment;

(d)

intellectual property rights, in particular copyrights, patents, trade-marks, trade-names, technological process, know-how and goodwill;

(e)

business concessions conferred by law or under contract permitted by law, including concessions to search for, cultivate, extract
or exploit natural resources.

Any change in the form in which assets are invested does not affect their character as investments.

The term “investor” means,

(a)

natural persons who have the nationality of either Contracting Party in accordance with the laws of that Contracting Party;

(b)

economic entities, including companies, corporations, associations, partnerships and other organizations, incorporated and constituted
under the laws and regulations of either Contracting Party and have their seats in that Contracting Party, irrespective of whether
or not for profit and whether their liabilities are limited or not.

The term “returns” means the amounts yielded from investments, including profits, dividends, interests, capital gains, royalties and
other legitimate income.

For the purposes of this Agreement, the term “territory” means respectively:

– for the People’s Republic of China, the territory of the People’s Republic of China (including the territorial sea and air space
above it)as well as any area beyond its territorial sea within which the People’s Republic of China has sovereign rights of exploration
for and exploitation of resources of the seabed and its sub-soil and superjacent water resources in accordance with Chinese law and
international law;

– for the Kingdom of the Netherlands, the territory of the Kingdom of the Netherlands and any area adjacent to the territorial sea
which, under the laws applicable in the Kingdom of the Netherlands, and in accordance with international law, is the exclusive economic
zone or continental shelf of the Kingdom of the Netherlands, in which the Kingdom of the Netherlands exercises jurisdiction or sovereign
rights.

Article 2

PROMOTION AND ADMISSION OF INVESTMENTS

Each Contracting Party shall encourage investors of the other Contracting Party to make investments in its territory and admit such
investments in accordance with its laws and regulations.

Article 3

TREATMENT OF INVESTMENT

Investments of investors of each Contracting Party shall all the time be accorded fair and equitable treatment in the territory of
the other Contracting Party. Investments of the investors of either Contracting Party shall enjoy the constant protection and security
in the territory of the other Contracting Party.

Neither Contracting Party shall take any unreasonable or discriminatory measures against the management, maintenance, use, enjoyment
and disposal of the investments by the investors of the other Contracting Party.

Each Contracting Party shall accord to investments and activities associated with such investments by the investors of the other Contracting
Party treatment no less favourable than that accorded to investments and activities by its own investors or investors of any third
State.

Each Contracting Party shall observe any commitments it may have entered into with the investors of the other Contracting Party with
regard to their investments.

If the provisions of law of either Contracting Party or obligations under international law existing at present or established hereafter
between the Contracting Parties in addition to the present Agreement contain a regulation, whether general or specific, entitling
investments by investors of the other Contracting Party to a treatment more favourable than is provided for the present Agreement,
such regulation shall, to the extent that it is more favourable, prevail over the present Agreement.

The provisions of paragraphs 1 to 5 of this Article shall not be construed so as to oblige one Contracting Party to extend to the
investors of the other Contracting Party the benefit of any treatment, preference or privilege by virtue of:

(a)

agreements establishing customs unions, economic unions, monetary unions or similar institutions, or on the basis of interim agreements
leading to such unions or institutions:

(b)

any international agreement or international arrangement relating wholly or mainly to taxation;

(c)

any international agreement or arrangement for facilitating small scale investments in border areas.

Article 4

ENTRY AND SOJOURN OF PERSONNEL

Each Contracting Party shall, with in the framework of its legislation, give sympathetic consideration to application for visas and
working permits to investors of the other Contracting Party engaging in activities associated with investments made in the territory
of that Contracting Party.

Article 5

EXPROPRIATION

Neither Contracting Party shall expropriate, nationalise or take other similar measures (hereinafter referred to as “expropriation”)
against the investments of the investors of the other Contracting Party in its territory, unless the following conditions are met:

a)the expropriation is done in the public interest and under domestic legal procedures;

b)the expropriation is not discriminatory or contrary to any undertaking which the Contracting Party, which takes such measures, may
have given;

c)the expropriation is done against compensation.

The compensation referred to in paragraph 1 c) shall be equivalent to the fair market value of the expropriated investment immediately
before the expropriation measures were taken. The fair market value shall not reflect any change in value because the expropriation
had become publicly known earlier. It shall include interest at the prevailing commercial rate from the date the expropriation was
done until the date of payment and shall, in order to be effective for the affected investors, be paid and made transferable, without
delay to the country designated by the investor concerned and in the currency of the country of the affected investor, or in any
freely convertible currency accepted by the affected investor.

Article 6

COMPENSATION FOR DAMAGES AND LOSSES

Investors of one Contracting Party whose investments in the territory of the other Contracting Party suffer losses owing to war, a
state of national emergency, insurrection, riot or other similar events in the territory of the latter Contracting Party, shall be
accorded by the latter Contracting Party treatment, as regards restitution, indemnification, compensation and other settlements no
less favourable than that accorded to the investors of its own or any third State, whichever is more favourable to the investor concerned.

Article 7

REPATRIATION OF INVESTMENTS AND RETURNS

Each Contracting Party shall, guarantee to the investors of the other Contracting Party the transfer of their investments and returns
held in its territory, including though not exclusively:

(a)

profits, dividends, interests and other legitimate income;

(b)

proceeds obtained from the total or partial sale or liquidation of investments;

(c)

payments pursuant to a loan agreement in connection with investments;

(d)

royalties in relation to the matters in paragraph 1 (d) of Article1;

(e)

payments of technical assistance or technical service fee, management fee;

(f)

payments in connection with contracting projects;

(g)

earnings of investors of the other Contracting Party who work in connection with an investment in its territory.

Nothing in paragraph 1 of this Article shall affect the free transfer of compensation paid under Article 5 and 6 of this Agreement.

The transfer mentioned above shall be made in a freely convertible currency and at the prevailing market rate of exchange applicable
within the Contracting Party accepting the investments on the date of transfer.

Article 8

SUBROGATION

If one Contracting Party or its designated agency makes a payment to its investor under an indemnity given in respect of an investment
made in the territory of the other Contracting Party, the latter Contracting Party shall recognize the assignment of all the rights
and claims of the indemnified investor to the former Contracting Party or its designated agency, by law or by legal transactions,
and the right of the former Contracting Party or its designated agency to exercise by virtue of subrogation any such right to the
same extent as the investor.

Article 9

SETTLEMENT OF DISPUTES BETWEEN CONTRACTING PARTIES

Any dispute between the Contracting Parties concerning the interpretation or application of this Agreement shall, as far as possible,
be settled with consultation through diplomatic channel.

If a dispute cannot thus be settled within six months, it shall, upon the request of either Contracting Party, be submitted to an
ad hoc arbitral tribunal.

Such tribunal comprises of three arbitrators. Within two months of the receipt of the written notice requesting arbitration, each
Contracting Party shall appoint one arbitrator. Those two arbitrators shall, within a further two months, together select a national
of a third State having diplomatic relations with both Contracting Parties as Chairman of the arbitral tribunal.

If the arbitral tribunal has not been constituted within four months from the receipt of the written notice requesting arbitration,
either Contracting party may, in the absence of any other agreement, invite the President of the International Court of Justice to
make any necessary appointments. If the President is a national of either Contracting Party or is otherwise prevented from discharging
the said functions, the Member of the International Court of Justice next in seniority who is not a national of either Contracting
Party, or is not prevented from discharging the said functions, shall be invited to make such necessary appointments.

The arbitral tribunal shall determine its own procedure. The arbitral tribunal shall reach its award in accordance with the provisions
of this Agreement and the applicable principles of international law.

The arbitral tribunal shall reach its award by a majority of votes. Such award shall be final and binding upon both Contracting Parties.
The arbitral tribunal shall, upon the request of either Contracting Party, explain the reasons of its award.

Each Contracting Party shall bear the costs of its appointed arbitrator and of its representation in arbitral proceedings. The relevant
costs of the Chairman and tribunal shall be borne in equal parts by the Contracting Parties.

Article 10

SETTLEMENT OF DISPUTES BETWEEN AN INVESTOR AND A CONTRACTING PARTY

Disputes which might arise between one of the Contracting Parties and an investor of the other Contracting Party concerning an investment
of that investor in the territory of the former Contracting Party shall, whenever possible, be settled amicably between the Parties
concerned.

An investor may decide to submit a dispute to a competent domestic court. In case a legal dispute concerning an investment in the
territory of the People’s Republic of China has been submitted to a competent domestic court, this dispute may be submitted to international
dispute settlement, on the condition that the investor concerned has withdrawn its case from the domestic court. If a dispute concerns
an investment in the territory of the Kingdom of the Netherlands an investor may choose to submit a dispute to international dispute
settlement at any time.

If the dispute has not been settled amicably within a period of six months, from the date either party to the dispute requested amicable
settlement, each Contracting Party gives its unconditional consent to submit the dispute at the request of the investor concerned
to:

(a)

the International Center for Settlement of Investment Disputes, for settlement by arbitration or conciliation under the Convention
on the Settlement of Investment Disputes between States and Nationals of Other States, opened for signature at Washington on 18 March
1963;or

(b)

an ad hoc arbitral tribunal, unless otherwise agreed upon by the parties to the dispute, to be established under the Arbitration Rules
of the United Nations Commission on International Trade Law (UNCITRAL)

The ad hoc tribunal shall decide a dispute in accordance with such rules of law as may be agreed by the parties. In absence of such
agreement the tribunal shall apply the law of the Contracting Party to the dispute (including its rules on the conflict of laws),
the provisions of this Agreement and such rules of international law as may be applicable.

The arbitral awards shall be final and binding on both parties to the dispute.

Article 11

CONSULTATIONS

Either Contracting Party may propose to the other Party that consultations be held on any matter concerning interpretation, application
and implementation of the Agreement. The other Party shall accord sympathetic consideration to the proposal and shall afford adequate
opportunity for such consultations.

Article 12

APPLICATION

This present Agreement shall also apply to investments which have been made prior to its entry into force by investors of the one
Contracting Party in the territory of the other Contracting Party in accordance with the laws and regulations of the Contracting
Party concerned, which were in force at the time the investment was made. The provisions of the present Agreement shall apply irrespective
of the existence of diplomatic or consular relations between the Contracting Parties.

Article 13

TRANSITION

This Agreement substitutes and replaces the Agreement on reciprocal encouragement and protection of investments between the Government
of the People’s Republic of China and the Government of the Kingdom of the Netherlands, signed June 17th, 1985 in Hague.

The present Agreement shall apply to all investments made by investors of either Contracting Party in the territory of the other Contracting
Party, whether made before or after the entry into force of this Agreement, but shall not apply to any dispute or any claim concerning
an investment which was already under judicial or arbitral process before its entry into force. Such disputes and claims shall continue
to be settled according to the provisions of the Agreement of 1985 mentioned in paragraph 1 of this Article.

Article 14

APPLICATION AND TERMINATION OF THE AGREEMENT CONCERNING THE KINGDOM OF THE NETHERLANDS

As regards the Kingdom of the Netherlands, the present Agreement shall apply to the part of the Kingdom of the Netherlands in Europe
and shall also apply to the Netherlands Antilles and to Aruba, unless the notification provided for in Article 15 , paragraph (1)
states otherwise.

Subject to the provisions of Article 15 , the Kingdom of the Netherlands shall be enpost_titled to terminate the application of the present
Agreement separately in respect of the Kingdom of the Netherlands in Europe, of the Netherlands Antilles and of Aruba.

Article 15

ENTRY INTO FORCE, DURATION AND TERMINATION

This Agreement shall enter into force on the first day of the following month after the date on which both Contracting Parties have
notified each other in writing that their respective internal legal procedures necessary therefore have been fulfilled and remain
in force for a period of fifteen years.

Unless notice of termination has been given by either Contracting Party at least six months before the date of the expiry of its validity,
the present Agreement shall be extended tacitly for periods of five years.

With respect to investments made prior to the date of termination of this Agreement, the preceding provisions of Article 1 to 14
shall continue to be effective for a further period of fifteen years from such date of termination.

In Witness Whereof the undersigned, duly authorized thereto by their respective Governments, have signed this Agreement.

Done in two originals at BEIJING on 26 NOVEMBER 2001,in Chinese, Netherlands and English languages, all texts being equally authoritative.
In case of difference of interpretation the English text will prevail.

FOR THE_FOR THE

GOVERNMENT OF GOVERNMENT OF

THE PEOPLE’S REPUBLIC OF THE KINGDOM OF

CHINATHE NETHERLANDS

Protocol to the Agreement on encouragement and reciprocal protection of investments between the People’s Republic of China and the
Kingdom of the Netherlands

On the signing of the Agreement on encouragement and reciprocal protection of investments between the People’s Republic of China and
the Kingdom of the Netherlands, the undersigned representatives have agreed on the following provisions which constitute an integral
part of the Agreement:

Ad Article 1

The term “investments” mentioned in Article 1 (1) includes investments of legal persons of third State which are owned or controlled
by investors of one Contracting Party in accordance with the laws and regulations of the latter. The relevant provisions of this
Agreement shall apply to such investments only when such third State has no right or abandons the right to claim compensation after
the investments have been expropriated by the other Contracting Party.

The Agreement shall also apply to reinvestments made by investors of one Contracting Party in the territory of the other Contracting
Party and in accordance with the laws and regulations of that Party.

Ad Article 3 , paragraphs 2 and 3

In respect of the People’s Republic of China, paragraphs 2 and 3 of Article 3 do not apply to:

(a)

any existing non-conforming measures maintained within its territory;

(b)

the continuation of any non-conforming measure referred to in subparagraph a);

(c)

an amendment to any non-conforming measure referred to in subparagraph a) to the extent that the amendment does not increase the non-conformity
of the measure, as it existed immediately before the amendment, with those obligations.

It will be endeavored to progressively remove the non-conforming measures.

Ad Article 7

With regard to the People’s Republic of China, the transfer referred to in Article 7 of this Agreement shall comply with relevant
formalities stipulated by the present Chinese laws and regulations relating to exchange control.

In this respect the People’s Republic of China shall accord to the investors of the Kingdom of the Netherlands treatment not less
favourable than that accorded to the investors of any third State.

These formalities shall not be used as a means of avoiding the Contracting Party’s commitments or obligations under this Agreement.

The provisions of Article 7 of this Agreement shall not affect the rights and obligations with respect to exchange restrictions that
either Contracting Party has or may have as a member to the International Monetary Fund.

Ad Article 10

The Kingdom of the Netherlands takes note of the statement that the People’s Republic of China requires that the investor concerned
exhausts the domestic administrative review procedure specified by the laws and regulations of the People’s Republic of China, before
submission of the dispute to international arbitration under Article 10 , paragraph 3. The People’s Republic of China declares that
such a procedure will take a maximum period of three months.

FOR THEFOR THE

GOVERNMENT OFGOVERNMENT OF

THE PEOPLE’S REPUBLIC OF THE KINGDOM OF

CHINATHE NETHERLANDS

The Government of the People’s Republic of China
2001-11-26

ANNOUNCEMENT OF THE STATE ADMINISTRATION FOR QUALITY SUPERVISION, INSPECTION AND QUARANTINE ON THE CATALOG OF THE FIRST SET OF ABOLISHED DEPARTMENTAL REGULATIONS

The State Administration for Quality Supervision, Inspection and Quarantine

Order of the State Administration for Quality Supervision, Inspection and Quarantine

No.11

In order to accelerate the transformation of the government functions and improve the administrative level according to law, the State
Administration for Quality Supervision, Inspection and Quarantine has cleaned up the present departmental rules and is now issuing
the First Set of Abolished Departmental Regulations(4 pieces,see attachment) which are abolished at the same date of promulgation.

Director general of the State Administration for Quality Supervision, Inspection and Quarantine Li Changjiang

December 11,2001

Announcement of the State Administration for Quality Supervision, Inspection and Quarantine on the Catalog of the First Set of Abolished
Departmental Regulations htm/e02831.htmAppendix

Attachment:

Catalog of the State Administration for Quality Supervision, Inspection and Quarantine of the First Set of Abolished Departmental
Regulations

Order number	Name of the departmental regulation	Promulgating departments	Promulgation date	Reason for abolishment
1	Regulations on the License Administration of Export Mechanical and Electrical Products (for trial implementation)	Former State Administration for Commodity Inspection, Former State Economic Commission, Office of Mechanical and Electrical Product Export under the State Council	Feb.20. 1986	New regulations have been promulgated
2	Measures for the Administration of Export Mechanical and Electrical Products and Accreditation of Inspection Laboratories Thereof	Former State Administration for Commodity Inspection, Office of Mechanical and Electrical Product Export under the State Council	May 21, 1987	New regulations have been promulgated
3	Measures for the Implementation of Accreditation of Export Mechanical and Electrical Product Inspection Laboratories	Former State Administration for Commodity Inspection, Office of Mechanical and Electrical Product Export under the State Council	May 25, 1987	New regulations have been promulgated
4	Opinions on Strengthening the International Accreditation of Mechanical and Electrical Product Export	Former State Administration for Commodity Inspection, Office of Mechanical and Electrical Product Export under the State Council	Feb.10, 1993	New regulations have been promulgated

RULES FOR THE IMPLEMENTATION OF THE ADMINISTRATION OF IMPORT QUOTAS FOR MACHINERY AND ELECTRONIC PRODUCTS

e00514

The Ministry of Foreign Trade and Economic Cooperation, the General Administration of Customs

Order of the Ministry of Foreign Trade and Economic Cooperation and the General Administration of Customs

No.23

The “Rules for the Implementation of the Administration of Import Quotas for Machinery and Electronic Products”, which were, in accordance
with the “Foreign Trade Law of the People’s Republic of China”, the “Regulations of the People’s Republic of China on the Administration
of Import and Export of Goods” and the “Measures on the Administration of Import of Machinery and Electronic Products”, discussed
and adopted at the 10th minister’s working meeting of the Ministry of Foreign Trade and Economic Cooperation in 2001, and which have
been consented by the General Administration of Customs with whom these Detailed Rules were negotiated, are hereby promulgated, and
shall come into force on January 1, 2002. The “Import Quota Attestations” issued by the Ministry of Foreign Trade and Economic Cooperation
before January 1, 2002 shall continue to be valid within the validity period, and shall be invalidated after the expiry as the validity
period shall not be extended.

Minister of the Ministry of Foreign Trade and Economic Cooperation: Shi Guangsheng

December 20, 2001

Rules for the Implementation of the Administration of Import Quotas for Machinery and Electronic Products

Article 1

These Detailed Rules are enacted in accordance with the “Regulations of the People’s Republic of China on the Administration of Import
and Export of Goods” and the “Measures on the Administration of Import of Machinery and Electronic Products” in order to regulate
the administration of the import quotas for machinery and electronic products.

Article 2

These Detailed Rules shall be applicable to the import by importing entities of machinery and electronic products under quotas inside
the customs territory of the People’s Republic of China.

Article 3

The Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of China (hereinafter referred to as “the MOFTEC”)
shall be responsible for enacting, adjusting and promulgating jointly with the General Administration of Customs the catalogue of
import quotas for machinery and electronic products, as well as working out the annual plans on national import quotas for machinery
and electronic products and organizing the implementation.

Article 4

The MOFTEC shall, through electronic network system or by other means, carry out exchanges, checks and feedbacks of data with the
customs and other relevant administrative departments, and shall be responsible for inspecting and supervising the implementation
of the import quotas for the machinery and electronic products all over the country.

The institution in charge of foreign trade and economic cooperation of each province, autonomous region, municipality directly under
the Central Government, municipality separately listed on the State plan, coastal city open to the world and special economic zone,
as well as the office for the import and export of machinery and electronic products of each relevant department under the State
Council (hereinafter respectively referred to as “the local institution in charge of foreign trade and economic cooperation” and
“the departmental office of machinery and electronic products”), shall be responsible for inspecting and supervising the implementation
of the import quotas for the machinery and electronic products in its own area or department, and shall report the situation to the
MOFTEC.

Article 5

The MOFTEC shall, before July 31 of each year, promulgate the total quantity of the import quotas of the next year for the machinery
and electronic products all over the country.

The MOFTEC may, on the basis of its needs, adjust the total quantity of the annual quotas for machinery and electronic products, and
shall promulgate such adjustment 21 days before its enforcement.

Article 6

The qualifications and conditions for applying for import quotas for machinery and electronic products are as follows:

(1)

The entity applying for import shall have no such acts in violation of laws or regulations within the latest three years as evasion
of exchange, arbitrage of exchange, fraudulently obtaining tax refund for exports, smuggling, etc.;

(2)

The entity applying for import shall be enpost_titled to operate the products under the quotas in application;

(3)

The entity applying for import shall have the actual effective performance of importing and selling the products under the quotas
in application for a consecutive period of three years;

(4)

The entity applying for import shall have the capabilities of manufacture, sale, maintenance, provision of services and supply of
fittings, which are suitable for the quantity of the quotas in application;

(5)

The entity applying for import shall be in a good financial status;

(6)

Newly increased entities applying for import do not have to fulfill the conditions provided for in Item (3) of this Article;

(7)

An applicant who applies for import quotas for its own use does not have to fulfill the qualifications and conditions provided for
in Items (2), (3), (4) and (5) of this Article, provided that it shall submit a justifiable reason for application and appropriate
quantity of quotas in application.

Article 7

The time for applying for and distributing the import quotas is as follows:

(1)

The entity applying for import shall, during the period from August 1 to August 31 of each year, submit to the MOFTEC the application
for import quotas of the next year for machinery and electronic products, which shall not be accepted after the expiry;

(2)

The MOFTEC shall, before October 31 of each year, distribute the quotas, and issue the “Attestations on Import Quotas for Machinery
and Electronic Products” to the entities applying for import who have obtained the quotas.

Article 8

The time for re-distributing the import quotas is as follows:

(1)

The importing entities holding quotas shall, no later than September 1 of each year, return the quota licenses which cannot be used
up in the present year to the MOFTEC;

(2)

The MOFTEC shall, within 10 working days as of September 1 of each year, re-distribute the quotas stated in the returned quota licenses.

Article 9

The principles for distributing the import quotas are as follows:

(1)

To guarantee the needs in scientific research, education, culture, hygiene and other commonweal careers if the goods are imported
for the importer’s own use;

(2)

To give priority to considering the applications of the importing entities with strong capability of manufacture, sale and provision
of services;

(3)

To consider the actual effective performance of the entities applying for import in respect of the import of products under the quotas
in the latest three years;

(4)

To consider distributing a certain proportion of the total quantity of annual quotas to the newly increased entities applying for
import;

(5)

To properly increase the quantity of quotas of the next year upon request if the quotas of the last year have been used up; or

To deduct the quantity of quotas of the next year if the quotas of the last year have not been used up and the remaining quotas are
not returned within the provided time limit;

(6)

Some certain import quotas shall be distributed in a method of bidding, and the specific measures for administration shall be enacted
and promulgated by the MOFTEC.

Article 10

The procedures for applying for the “Attestation on Import Quotas for Machinery and Electronic Products” are as follows: An entity
applying for import shall, when importing machinery and electronic products subject to quota administration, truthfully fill out
the “Application Form for Import of Machinery and Electronic Products” in duplicate, and provide the application report and other
relevant documents, as well as go through the verification formalities in the relevant local institution in charge of foreign trade
and economic cooperation and the departmental office of machinery and electronic products. If no office of machinery and electronic
products is established in the department, the entity applying for import shall go through the verification formalities in the institution
in charge of foreign trade and economic cooperation located in the place of its industrial and commercial registration or legal person
registration.

Upon verification by the relevant local institution in charge of foreign trade and economic cooperation and the departmental office
of machinery and electronic products, an entity applying for import shall, within the provided time limit for applying for quotas,
apply for and obtain the “Attestation on Import Quotas for Machinery and Electronic Products” from the MOFTEC with the relevant documents
and the “Application Form for Import of Machinery and Electronic Products”.

Article 11

The importing entity shall apply for and obtain the “Import Quota License” with the “Attestation on Import Quotas for Machinery and
Electronic Products” issued by the MOFTEC. The validity period for the application and obtaining shall be the year when the “Attestation
on Import Quotas for Machinery and Electronic Products” is issued. Where the “Import Quota License” is not applied for or obtained
within the validity period, the “Attestation on Import Quotas for Machinery and Electronic Products” shall be invalidated.

Article 12

The “Attestation on Import Quotas for Machinery and Electronic Products” shall be in quintuplicate with five sheets. The first sheet
(blue, with anti-counterfeiting shading) shall be the document for applying for and obtaining the “Import Quota License”; the second
sheet (green, with white shading) shall be the document for order of goods; the third sheet (red, with anti-counterfeiting shading)
shall be the document kept in the customs for record; the fourth sheet (red, with white shading) shall be the banking document for
the purchase of and payment in foreign exchange; and the fifth sheet (black, with white shading) shall be kept in the quota administration
organ for file.

Article 13

Where, after obtaining the “Attestation on Import Quotas for Machinery and Electronic Products”, the importing entity needs to modify
any content in such items in the “Attestation on Import Quotas for Machinery and Electronic Products” as the importing entity, mode
of trade, uses of products, name, quantity or amount of products (with the range of change exceeding 10%) and performance of equipment,
etc. within the validity period due to a particular reason, it shall go through the formalities of modifying or changing the attestation
in the original organ which issued the attestation with the original “Attestation on Import Quotas for Machinery and Electronic Products”;
the original organ which issued the attestation shall take back the old attestation, and shall print the characters of “(change of
certificates)” in the remark column of the newly issued attestation. Where the amount of actually used exchange does not exceed 10
% of the planned amount, the “Attestation on Import Quotas for Machinery and Electronic Products” does not need to be modified, and
the importing entity shall not, when applying for and obtaining the “Import Quotas License” with the “Attestation on Import Quotas
for Machinery and Electronic Products”, modify any content in such items in the “Attestation on Import Quotas for Machinery and Electronic
Products” as the importing entity, mode of trade, uses of products, name, quantity or amount of products (with the range of change
exceeding 10%) and performance of equipment, etc..

Article 14

Where the “Attestation on Import Quotas for Machinery and Electronic Products” is lost, the importing entity shall immediately report
the loss to the original import quota administration organ, the original license administration organ and the customs at the port
of declaration. If no bad consequence occurs, the importing entity may apply to the MOFTEC for re-issuance.

Article 15

For any entity who concludes contracts with foreign parties before applying for the “Attestation on Import Quotas for Machinery and
Electronic Products” and the “Import Quotas License” in accordance with the provisions in these Detailed Rules, the MOFTEC shall
not re-issue the import quota attestation, and the customs and other administrative department shall deal with the matter in accordance
with the relevant laws and administrative regulations.

Article 16

These Detailed Rules shall also be applicable in any of the following circumstances:

(1)

The imported parts of the products under quotas constitute the feature of a whole machine;

(2)

The products under quotas are imported in processing trade for manufacturing products of domestic sale or for the importer’s own use;

(3)

The products under quotas are imported by enterprises with foreign investment for manufacturing products of domestic sale or for their
own use;

(4)

The products under quotas are imported in such modes of trade as leasing trade, compensation trade, etc.;

(5)

The products under quotas are imported in such manners as gratis aid, donation or present in economic exchanges, etc.;

(6)

The products under quotas, which are purchased outside the territory by Chinese institutions abroad or Chinese enterprises carrying
out construction projects outside the territory, need to be moved back to China for their own use;

(7)

Other circumstances separately provided for in laws and administrative regulations.

Article 17

These Detailed Rules shall not be applicable in any of the following circumstances:

(1)

The products imported in processing trade are re-exported;

(2)

The products under quotas are imported into China’s bonded zones or export processing zones for re-export;

(3)

The products under quotas are temporarily imported under the supervision and administration of the customs;

(4)

The products under quotas are imported by enterprises with foreign investment for investment or for their own use;

(5)

Other circumstances separately provided for in laws and administrative regulations.

Article 18

The power to interpret the present Detailed Rules shall remain with the MOFTEC. In case of any previous relevant provision inconsistent
with these Detailed Rules, these Detailed Rules shall prevail.

Article 19

These Detailed Rules shall enter into force on January 1, 2002.

The Ministry of Foreign Trade and Economic Cooperation, the General Administration of Customs
2001-12-20

RESOLUTION ON THE CAPITAL, THE WAY OF NUMBERING THE YEARS, THE ANTHEM AND THE FLAG

Category	NATIONAL FLAG, NATIONAL EMBLEM, CAPITAL, NATIONAL ANTHEM AND NATIONAL DAY	Organ of Promulgation	The Chinese People’s Political Consultative Conference (CPPCC)	Status of Effect	In Force
Date of Promulgation	1949-09-27	Effective Date	1949-09-27

Resolution on the Capital, the Way of Numbering the Years, the Anthem and the Flag of the People’s Republic of China

(Adopted by First Plenary Meeting of the Chinese People’s Political

Consultative Conference at September 27, 1949)

1. It is adopted unanimously that the capital of the People’s Republic
of China is Beijing. Beiping shall be renamed as Beijing as of this day.

2. It is adopted unanimously that the People’s Republic of China adopts
the Christian era as the way of numbering the years. This year is 1949.

3. It is adopted unanimously that the March of the Volunteers shall be
the national anthem of the People’s Republic of China until the formal one
is formulated.

4. It is adopted unanimously that the flag of the People’s Republic of
China is a red flag with five stars, symbolizing the great unity of Chinese
revolutionary people.

REGULATIONS REQUIRED TO BE OBSERVED BY MERCHANT VESSELS PASSING THROUGH THE LAO TIEH SHAN CHANNEL

RULES FOR THE CONTROL OF NON-MILITARY VESSELS OF FOREIGN NATIONALITY PASSING THROUGH THE QIONGZHOU STRAIT

Category	COMMUNICATIONS AND TRANSPORT	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1964-06-08	Effective Date	1964-06-08

Rules for the Control of Non-military Vessels of Foreign Nationality Passing Through the Qiongzhou Strait

Note:

(Promulgated by the State Council on June 8, 1964)

Article 1 According to the Declaration of the Government of the People’s
Republic of China concerning the Territorial Waters, the Qiongzhou Strait is
an inland sea of China, which is closed to all military vessels of foreign
nationality. Non-military vessels of foreign nationality to pass through the
Strait must be subject to an application for approval according to the
provisions of these Rules.

Article 2 The Qiongzhou Strait Administrative Office of the People’s
Republic of China (hereinafter referred to as “the Qiongzhou Strait
Administrative Office”) shall be set up to facilitate the administration
of the Qiongzhou Strait.

These Rules shall be implemented under the supervision of the Qiongzhou
Strait Administrative Office.

Article 3 The area under the administration of the Qiongzhou Strait
Administrative Office with respect to the Qiongzhou Strait (hereinafter
referred to as the administrative area) is tentatively delimited as follows:
the water area west of the line (the east line for short) linking the Mulantou
Lamp Stake (approximately 20 degrees 9 minutes 37 seconds north latitude,
110 degrees 41 minutes east longitude) and the Shenggouhousha Lamp Stake (
approximately 20 degrees 26 minutes north latitude, 110 degrees 31 minutes 22
seconds east longitude) and east of the line (the west line for short) linking
the Jiaoweijiao Lamp Stake (approximately, 20 degrees 13 minutes 30 seconds
north latitude, 110 degrees 55 minutes 30 seconds east longitude) and the
Lingaojiao Lamp Stake (approximately 20 degrees 22 seconds north latitude,
109 degrees 42 minutes 6 seconds east longitude).

Article 4 Non-military vessels of foreign nationality that need to
pass through the Qiongzhou Strait must go through the following formalities:

(1) Report in detail by telegram such information as the ship’s name,
nationality, gross tonnage, speed, hull colour, funnel marks, date and time
and port of departure, port to destination, etc. to the Qiongzhou Strait
Administrative Office and ask for permission to pass through the Strait 48
hours before entering the administrative area or before leaving the port of
departure.

(2) Report accurately, after receiving the notice of approval for
passing through the Strait, the time of entering the administrative area to
the Qiongzhou Strait Administrative Office 24 hours before entering the
administrative area, or within 2 hours of weighing anchor at the port of
departure.

The above-mentioned telegrams concerning request and approval for
passing through the Strait shall all be conveyed through the Haikou Branch
of the China Ocean-shipping Agency Corporation.

Article 5 When deemed necessary, the Qiongzhou Strait Administrative
Office may send a summary notice to forbid a non-miliatary vessel of foreign
nationality which has obtained the approval to pass through the Strait.

Article 6(Note 1.) All non-military vessels of foreign nationality to
pass through the administrative area shall do so without exception within
daytime. All of them must enter the administrative area after sunrise and
leave it before sunset. The Qiongzhou Strait Administrative Office shall check
and approve the exact time for entering and leaving the Strait according to
the speed of the non-military vessels of foreign nationality which have
applied to pass through the Strait.

Article 7 Except those which have obtained special permission from the
Qiongzhou Strait Administrative Office, all non-military vessels of foreign
nationality entering and leaving the Qiongzhou Strait must use the middle
water course.

Article 8 Non-military vessels of foreign nationality passing through
the administrative area shall navigate in the following prescribed area:
north of the line linking the point on the east four nautical miles from the
Mulantou Lamp Stake and the point on the west four nautical miles from the
Lingaojiao Lamp Stake, and south of the line linking the point on the east
six nautical miles from the Mulantou Lamp Stake and the point four nautical
miles due south of the Paiweijiao Lamp Stake and then the point on the west
14 nautical miles from the Lingaojiao Lamp Stake.

Article 9 Non-military vessels of foreign nationality to pass through
the Qiongzhou Strait must do so in strict accordance with the reported time
and the prescribed area. If they see any signals sent from ashore or naval
vessels while they are navigating into or within the administrative area,
they shall give an immediate reply and unconditionally carry out the
instructions conveyed by the signals. Any consequences arising from failure
to observe the above-mentioned stipulations shall be borne by the vessels
themselves.

Article 10 Non-military vessels of foreign nationality passing through
the Qiongzhou Strait shall not use radars. If it is necessary to use the radar
in case of dense fog, rainstorm, or other bad conditions affecting visibility,
the vessels shall report to the Qiongzhou Strait Administrative Office to
explain the necessity and report their positions, speeds and other information.
They may use the radar only after obtaining permission. In case of an
emergency endangering navigational safety of the vessels, they may use the
radar while making the reports; and after the emergency, the vessels shall
make a detailed report concerning the length of time for using the radar and
the whole course of the incident to the Qiongzhou Strait Administrative
Office for the record.

Article 11 Photographs, surveys or other activities violating the
relevant laws and regulations of the People’s Republic of China are forbidden
when non-military vessels of foreign nationality pass through the Qiongzhou
Strait.

Article 12 Where non-military vessels of foreign nationality violate
these Rules, the cases shall be dealt with as prescribed below:

(1) Those vessels that have not yet entered the administrative area may
be ordered not to enter but to go back by the original route and navigate
round the Hainan Island; or they may be ordered to go through the necessary
formalities for approval before passing through the Strait.

(2) Those vessels that have entered the administrative area may be
ordered to stop navigation and taken to the Haikou Harbour for inspection,
the result of which shall determine the penalty to be given. The Qiongzhou
Strait Administrative Office may then, depending on circumstances, allow the
vessels to pass through the administrative area, or order them to go back,
or even send them under escort out of the Strait.

Note:

Note 1. On April 17, 1985, upon approval of the State Council and the
Central Military Commission, this Article was amended as follows:
“Non-military vessels of foreign nationality may pass through the Strait
upon receiving notice of approval, but their speed may not exceed 10 knots
when they are navigating into and within the administrative area.” — The
Editor.

TRIAL MEASURES CONCERNING THE PROMOTION OF EXPORTS BY IMPORTATION

Category	FOREIGN TRADE	Organ of Promulgation	The Stade Council	Status of Effect	In Force
Date of Promulgation	1979-03-26	Effective Date	1979-03-26

Trial Measures Concerning the Promotion of Exports by Importation

(Approved and promulgated by the State Council on March 26, 1979)

In order to carry out the general task of the new period and to shift the
focus of the work on to the track of socialist modernization, foreign trade
should be greatly expanded and developed. Exports must be greatly increased
for the purpose of introducing new technology and importing equipment in
complete sets. All departments concerned and all regions should try their
best and use every possible means to develop the production of export
commodities; while tapping fully the domestic potentials for increasing the
sources of export commodities, raw materials and technology from abroad
should be utilized fully so as to bring into full play the domestic
production capacity, to devote major efforts to the promotion of exports
by importation and to expand export trade extensively and in a flexible way,
thus increasing foreign exchange earnings, and strengthening the country’s
paying capability in foreign exchange.

1. The scope of promoting exports through importation:

(1) to import materials for processing, including the importation of all
raw and semifinished materials or key raw and semifinished materials, and to
process them into finished products for export;

(2) to import main component parts or fittings, and to process and
assemble them into finished products for export; for example, to import
ships’ main engines or instruments for assembling vessels for export;

(3) to mainly use home-produced raw and semifinished materials, and import
auxiliary materials, then to process them into finished products for export;
and

(4) to import animal feeds, fertilizers, seeds, and breeding stocks, and
to use them in growing and breeding occupations, then to use the animal,
farm, and side-line products and local specialties for export; or to exchage
imported commodities for home-produced farm and side-line products and local
specialties, and to use them for export.

2. With respect to the raw, semifinished and auxiliary materials now
supplied domestically for the production of export commodities, such supplies
shall be guaranteed through the current supplying channel of materials and
shall not be reduced or cut; the materials which can be supplied domestically
shall not be imported or their importation shall be reduced. After the
implementation of the policy of promoting exports by imports, various
departments and areas, which are at present supplying commodities for export,
shall maintain a normal increase in export with the development of production.

3. The commodities manufactured under the policy of promoting exports by
importation, shall be marketable on the international market; profitable in
earning foreign exchange; up to the quality standards for export; and can be
manufactured domestically with a guarantee for the supply of fuels and power.

4. The amount of foreign exchange needed for carrying out the policy of
promoting exports by importation shall be included in the state plan for the
allocation of foreign exchange for imports, which shall be executed solely by
the Ministry of Foreign Trade. The specific business operations shall be
organized by the head offices of various national import and export
corporations. The bureaus of foreign trade of various provinces, autonomous
regions and municipalities directly under the Central Government shall be
responsible for supervising and examining the use of foreign exchange for
promoting exports by importation and the situation of business operations.
Where bank loans in foreign exchange are needed for commodities for promoting
exports by importation, the case shall be handled in accordance with the
measures for granting short-term foreign exchange loans. With respect to the
raw and semifinished materials, auxiliary materials and other materials
supplied by businessmen abroad for processing on the basis of materials
supplied, no matter letters of credit are mutually opened or not, so long as
the payment is not actually effected in foreign exchange, the aforesaid
materials shall not be counted as the materials used for promoting exports by
importation.

5. The commodities for promoting exports by importation shall, after
consultation made by the foreign trade departments with the relevant regions
or departments, be included in the state plans for production and for foreign
trade, and the following principles shall be implemented step by step;
separate plans; direct allocation of materials; production at designated
units and production quota fixed according to sales conditions. On the
condition that the fulfilment of the state plan is guaranteed, if there still
exist production potentials and products marketable on the international
market can be timely exported, then arrangements may be made for extra
exports for promoting exports by importation beyond the plans, and the
foreign trade bureaus of provinces, autonomous regions, or municipalities
directly under the Central Government shall be responsible for organizing
this matter; the foreign exchange needed for the production shall be alloted
specially by the Ministry of Foreign Trade.

6. The materials imported, and the products exported for promoting
exports by importation, shall not be included in the domestic scheme for
balanced distribution; imported materials shall, step by step, be allocated
directly by foreign trade companies to production units, and the products
shall be supplied directly by the production units to foreign trade companies
which shall purchase the products for export.

7. The production of products for promoting exports by importation shall
be arranged on the basis of good quality. For the manufacture of industrial
commodities, only factories with better production conditions shall be
designated specially for the said purpose. With respect to farm and side-line
products and local specialities, the production shall be developed in the
light of local conditions with tracts of land assigned for the purpose. The
aforesaid designation of factories and division of arable land shall remain
relatively stable.

8. In accordance with the principle of “integration of military production
and civil production” and “integration of production in peacetime and that in
wartime”. it is imperative to tap the productive potentials of the military
industrial enterprises, and to made full use of these military industrial
enterprises in promoting the production of export commodities for promoting
exports by importation. The prices of export commodities manufactured by the
military industrial enterprises shall be fixed according to the principle of
“same quality, same price” as the export commodities manufactured by civil
enterprises.

9. With respect to industrial commodities for promoting exports by
importation, the foreign trade company and the production or supplying unit
shall conclude and sign an economic contract or agreement, in which are
stipulated their respective obligations. In the event that either of the two
parties fails to execute the said contract or agreement, which consequently
has given rise to economic losses, the violator shall be liable for
compensating for the economic losses.

10. With respect to the farm and side-line products, livestock products
and local specialties for promoting exports by importation, while arrangements
are being made for the importation of animal feeds, fertilizers, seeds and
breeding stocks, the foreign trade company and the production or supplying
unit shall reach an agreement through consultation concerning the increase
of varieties and quantity, the specifications and quality of the commodities
they supply for export, as well as the time for delivery.

11. With respect to the industrial products for promoting exports by
importation, the foreign trade company and the production or supplying unit
shall reach an agreement through consultation concerning the rate of quality
products for export, the rating for the consumption of raw, semifinished, and
auxiliary materials, and the time for delivery. Those production enterprises,
whose rate of quality products for export is low, thus unable to guarantee the
quality of their products, and whose consumption of raw and semifinished
materials and production costs are high, are not eligible to be engaged in
“promoting exports by importation”.

12. With respect to the earnings of foreign exchange from commodities for
promoting exports by importation, business accounting shall be carried out
item by item, and the rate of foreign exchange earnings from exporting
finished goods should generally be controlled at the rate from 30% to 50% or
higher. The rate of foreign exchange earnings from products that call for more
sophisticated production technology shall be higher, while the rate of foreign
exchange earnings from products that are turned out with simpler production
technology shall be lower, but it shall not be lower than 30%.

13. Production enterprises (including state-run farms) that engage in
promoting exports by importation shall try their best to fulfil their
production tasks on time with the required quality and quantity and deliver
their goods on schedule. In the event that a Production enterprise undertakes
the task of manufacturing a particular item of export product in small
quantity, with complicated designs and varieties and a very short time limit
for delivery, and consequently suffers a loss in its normal profit earnings,
the foreign trade company shall make compensation for this by giving the
production enterprise a necessary subsidy not included in the calculated
purchasing prices after the foreign trade department and the relevant
departments have reached an agreement through consultation.

14. The making of prices in Renminbi within the country for the imported
goods and materials needed for promoting exports by importation shall, in
principle, be handled in accordance with the current measures for making
prices for imported goods. With respect to a few varieties of export goods
included in promoting exports by importation, which, as a consequence of the
high domestic appropriation prices of imported raw and auxiliary materials or
the high profit and tax rates, give rise to great losses in exporting such
finished goods, so long as the aforesaid varieties of goods sell well on the
international market and the rate of earnings in foreign exchange is
acceptable, they may, with approval, be imported through agency by the foreign
trade department and only service fees shall be charged or Customs
duty/consolidated industrial and commercial tax be exempted from. The products
supplied by production or supplying units for export shall calculate the
production costs in accordance with the actual appropriation price of the said
raw and auxiliary materials imported through the foreign trade channel.

15. With respect to the retention quota of foreign exchange earnings from
the commodities for promoting exports by importation, the case shall be
handled in accordance with the retention measures prescribed uniformly by the
State.

With respect to the business activities carried out for promoting exports
by importation, all regions and areas, all departments concerned, as well as
foreign trade companies and production enterprises, shall set up special
register and compile statistics for the said business activities, strengthen
the cost check-up and accounting, and guarantee the completeness of all
business vouchers and original records.

16. With respect to those production or supplying units engaged in
promoting exports by importation, which maintain better business performance
and higher foreign exchange earnings, higher pay, more bonuses and welfare
allowances may be allowed. As to those production or supplying units which
turn out poor quality products, embezzle imported goods and materials, and
plot to share among themselves the products, an investigation shall be made
into their illegal acts, and their cases shall be dealt with seriously.

17. To the production or supplying units engaged in promoting exports by
importation, the foreign trade companies should, at any time, provide the
aforesaid production or supplying units with specimens and samples of foreign
advanced products as well as relevant technical data, invite the personnel
from the production or supplying units to participate in business talks with
foreign companies or businessmen, organize, according to plan, study groups to
carry out investigations abroad, and invite foreign businessmen for technical
exchange.

18. All regions and areas, and all departments concerned, should
strengthen the leadership of the work concerning the production of export
commodities for promoting exports by importation, enthusiastically organize
the implementation, and solve the problems arising in production and supply of
goods. The production and supplying units and foreign trade departments should
sum up, in good time, their experience so as to push forward the steady
development of this work.?

INTERIM REGULATIONS ON LAWYERS

Category	JUDICIAL ADMINISTRATION	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	Invalidated
Date of Promulgation	1980-08-26	Effective Date	1982-01-01	Date of Invalidation	1997-01-01

Interim Regulations of the People’s Republic of China on Lawyers

Contents
Chapter I  The Task and Rights of Lawyers
Chapter II  The Qualifications of Lawyers
Chapter III  Business Organizations of Lawyers
Chapter IV  Supplementary Provisions

(Adopted at the 15th Meeting of the Standing Committee of the Fifth

National People’s Congress and promulgated by Order No.5 of the Standing
Committee of the National People’s Congress on August 26, 1980, and effective
as of January 1, 1982) (Editor’s Note: These Regulations were annulled by the
Law of the People’s Republic of China on Lawyers promulgated on May 15, 1996.)
Contents

Chapter I The Task and Rights of Lawyers

Chapter II The Qualifications of Lawyers

Chapter III Business Organizations of Lawyers

Chapter IV Supplementary Provisions
Chapter I The Task and Rights of Lawyers

Article 1 Lawyers are state legal workers whose task is to give legal
assistance to state organs, enterprises and institutions, public
organizations, people’s communes and citizens in order to ensure the correct
implementation of the law and protect the interests of the state and
collectives as well as the lawful rights and interests of citizens.

Article 2 The principal duties of lawyers shall be:

(1) to accept the mandate of state organs, enterprises and institutions,
public organizations and people’s communes to serve as their legal advisers;

(2) to accept the mandate of a party to a civil action to serve as his
representative in litigation;

(3) to accept the mandate of a defendant or the assignment of a people’s
court to serve as his defender in a criminal case; to accept the mandate of a
private prosecutor or of the victim and his near relatives in a public
prosecution to serve as their representative in litigation;

(4) to accept the mandate of a party in a nonlitigious matter to give legal
assistance or serve as its representative in mediation or arbitration;

(5) to give consultative advice on legal questions and draft documents in
connection with litigation or other legal matters.

Lawyers shall publicize the socialist legal system through all their
professional activities.

Article 3 In performing their duties, lawyers shall serve the cause of
socialism and the interests of the people, act on the basis of facts and take
the law as the criterion.

In the performance of their functions according to law, lawyers shall be
protected by the law of the state, subject to no interference by any
organization or individual.

Article 4 When being retained by an organization as its legal adviser, a
lawyer shall have the responsibility to give advice on legal questions arising
from the client organization, draft and examine legal documents for it,
represent it in litigation, mediation or arbitration, and safeguard its lawful
rights and interests.

Article 5 When acting as representatives in litigation and nonlitigious
matters, lawyers shall have the responsibility to safeguard the lawful rights
and interests of the client within the scope of the mandate.

Within the scope of the mandate, the lawyer’s procedural and legal acts
shall have the same effect as those of the client.

Article 6 When acting as defenders in criminal cases, lawyers shall have
the responsibility to safeguard the lawful rights and interests of the
defendants on the basis of facts and the law. A lawyer may refuse to act as the
defender of a defendant if he believes that the defendant has not truthfully
stated the facts of the case to him.

Article 7 In legal proceedings, lawyers shall have the right, to consult
the materials of the case and may make enquiries from organizations and persons
concerned in accordance with relevant regulations. When acting as defenders in
criminal cases, lawyers may meet and correspond with the defendants held in
custody.

The organizations and persons concerned shall have the duty to render
assistance to the lawyers engaged in the activities mentioned in the preceding
paragraph.

Lawyers shall have the responsibility to keep confidential state secrets
and matters of personal privacy which they come into contact with in their work.
Chapter II The Qualifications of Lawyers

Article 8 The undermentioned citizens who cherish the People’s Republic of China, support the socialist system and have the right
to vote and stand for
election shall be eligible as lawyers after passing an examination:

(1) those who have graduated from law faculties of universities or colleges
and have been engaged for two or more years in judicial work, legal
instruction or jurisprudential studies;

(2) those who have had professional legal training and have worked as
judges in people’s court or as procurators in people’s procuratorates;

(3) those who have received college education, have completed three or more
years of economic, scientific and technological work, are proficient in their
professions and the relevant laws and decrees thereof, and have gone through
professional legal training and who are fit for the work of a lawyer; and

(4) those who have attained the same level of knowledge of practical legal
work as is required of persons prescribed in Items (l) and (2) above and the
same level of learning as is given by college education and who are fit for the
work of a lawyer.

Article 9 To be eligible as a lawyer, a person must be examined and
approved by the judicial department (bureau) of a province, autonomous region,
or municipality directly under the Central Government and issued a lawyer’s
certificate, and a report shall be made to the Ministry of Justice of the
People’s Republic of China for the record. Upon discovery of an improper
examination and approval, the Ministry of Justice shall instruct the relevant
judicial department (bureau) to conduct a reexamination.

Article 10 Those who are eligible as lawyers but are unable to leave their
present positions to practise law may act as part-time lawyers. The current
organizations in which they are working shall support such arrangements.

Personnel presently attached to the people’s courts, people’s
procuratorates and people’s public security organs may not act as part-time
lawyers.

Article 11 Those who have graduated from law faculties of universities or
colleges or have gone through professional legal training may act as apprentice
lawyers after examination and approval by the judicial departments (bureaus)
of provinces, autonomous regions, or municipalities directly under the Central
Government.

The training period for apprentice lawyers shall be two years. Upon
completion of the training period, apprentice lawyers shall be given lawyers
credentials in accordance with the procedure prescribed in Article 9 of these
Regulations; the training period may be extended if an apprentice lawyer fails
to pass the examination.

Article 12 Lawyers who are incompetent shall be disqualified as lawyers by
decision of the judicial departments (bureaus) of provinces, autonomous
regions, or municipalities directly under the Central Government and with the
approval of the Ministry of Justice.
Chapter III Business Organizations of Lawyers

Article 13 Legal advisory offices shall be the business organizations from
which lawyers perform their duties.

Legal advisory offices shall be public institutions under the
organizational leadership and professional supervision of the judicial
administrative organs of the state.

Article 14 Legal advisory offices shall be established in counties, cities
and municipal districts. When necessary, specialized legal advisory offices
may be established with the approval of the Ministry of Justice.

Legal advisory offices shall not be subordinate to one another.

Article 15 The principal functions of a legal advisory office shall be to
direct lawyers in the development of their professional work, to organize their
political studies and professional studies in law and to sum up and exchange
their work experience.

Article 16 A legal advisory office shall have one director and may have
deputy directors where necessary. The director and deputy directors shall be
elected by the lawyers in that office, subject to approval by the judicial
department (bureau) of a province, autonomous region, or municipality directly
under the Central Government. They shall be elected for a term of three years
and may be reelected to successive terms in office.

The director and deputy director(s) of a legal advisory office shall direct
the work of the office and at the same time perform their duties as lawyers.

Article 17 The mandates for lawyers to handle cases shall be accepted and
service fees collected exclusively by the legal advisory office.

In the distribution of cases to lawyers, the legal advisory office shall,
as best as possible and according to actual conditions, assign lawyers as
requested by clients.

Article 18 A legal advisory office may appoint lawyers to carry out
professioal activities in other localities, and the legal advisory office there
shall provide them with assistance.

Article 19 A lawyers association shall be established to protect the
lawful rights and interests of lawyers, to exchange work experience, to further
the progress of lawyers work and to promote contacts between legal workers
both at home and abroad.

The lawyers association is a social organization. It shall formulate its
own articles of association.
Chapter IV Supplementary Provisions

Article 20 The standards for the post_title of lawyer, the regulations on
awards and penalties for lawyers and the measures for the collection of service
fees shall be stipulated separately by the Ministry of Justice.

Article 21 These Regulations shall go into effect on January 1, 1982.?

RESOLUTION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON APPROVING THE REGULATIONS ON SPECIAL ECONOMIC ZONES IN GUANGDONG PROVINCE

Resolution of the Standing Committee of the National People’s Congress on Approving the Regulations on Special Economic Zones in Guangdong Province
(Adopted on August 26, 1980)



	The 15th Meeting of the Standing Committee of the Fifth National People’s Congress resolves to approve the Regulations on Special Economic Zones in Guangdong Province submitted by the State Council. Appendix: Regulations on Special Economic Zones in Guangdong Province (Approved for implementation at the 15th Meeting of the Standing Committee of the Fifth National People’s Congress on August 26, 1980) Contents Chapter I General Provisions Chapter II Registration and Operation Chapter III Preferential Treatment Chapter IV Labour Management Chapter V Administrative Organization Chapter VI Supplementary Provisions Chapter I General Provisions Article 1 In order to develop economic cooperation and technical exchanges with foreign countries and to promote the socialist modernization, certain areas shall be delineated respectively in the three cities of Shenzhen, Zhuhai and Shantou in Guangdong Province for the establishment of special economic zones (hereinafter referred to as “special zones”). The special zones shall encourage foreign citizens, overseas Chinese, compatriots from Hongkong and Macao and their companies and enterprises (hereinafter referred to as “investors”) to open factories and set up enterprises and other establishments with their own investment, or in joint ventures with our side, and shall protect their assets, profits due and other lawful rights and interests in accordance with law. Article 2 Enterprises and individuals in the special zones shall abide by the laws, decrees and pertinent provisions of the People’s Republic of China. Where there are specific provisions in these Regulations, the special provisions shall be observed. Article 3 A Guangdong Provincial Committee for the Administration of Special Economic Zones shall be set up to exercise unified administration of the special zones on behalf of the Guangdong Provincial People’s Government. Article 4 The special zones shall provide investors with a wide scope of businesses, create favourable operating conditions and guarantee them fixed business sites. Investors may establish, with their own investment or in joint ventures with our side, all projects that have positive significance in international economic cooperation and technical exchanges, including industry, agriculture, animal husbandry, aguaculture, tourism, housing and construction, and research and manufacture involving high technology, as well as other businesses of common interest to the investors and our side. Article 5 Land-leveling projects and various public facilities in the special zones such as water supply, drainage, power supply, roads, wharves, communications and warehouses shall be undertaken by the Guangdong Provincial Committee for the Administration of Special Economic Zones. When necessary, foreign investment may be used in building these projects. Article 6 Each of the special zones shall invite Chinese and foreign specialists and relevant personages who are enthusiastic about China’s modernization to form an advisory committee that will serve as a consultative body for that special zone. Chapter II Registration and Operation Article 7 Investors wishing to open factories or set up various economic undertakings in the special zones with their own investment shall apply to the Guangdong Provincial Committee for the Administration of Special Economic Zones, which shall issue them registration certificates and land use certificates upon examination and approval. Article 8 Investors may open accounts and engage in foreign exchange transactions with the Bank of China established in the special zones or with other banks established there with the approval of the Chinese side. Investors may take out various kinds of insurance policies at the People’s Insurance Company of China in the special zones or at other insurance companies established there with the approval of the Chinese side. Article 9 Products of the enterprises in the special zones shall be sold on the international market. If their products are to be sold in the Chinese mainland, they must have the approval of the Guangdong Provincial Committee for the Administration of Special Economic Zones and go through the procedures for paying customs duties. Article 10 Investors may operate their enterprises independently in the special zones and employ foreigner for technical and managerial work. Article 11 If an enterprise established by an investor in the special zones wishes to terminate operation before the scheduled expiration date, it shall report the matter, with reasons, to the Guangdong Provincial Committee for the Administration of Special Economic Zones, go through termination procedures and settle claims and debts. After the enterprise is terminated of operation, its assets may be assigned and its funds may be remitted out of China. Chapter III Preferential Treatment Article 12 Land in the special zones is owned by the People’s Republic of China. The land to be used by investors shall be provided according to actual needs, and preferential treatment shall, based on different types of business and use, be given with respect to the duration of its use, the amount of the user’s fee and the method of payment Provisions for specific measures shall be made separately. Article 13 Import duties shall be exempted with respect to the machinery and equipment, spare parts, raw and semi-processed materials, means of transportation and other materials necessary for production that are imported by enterprises in the special zones. The necessary consumer goods may either be subjected to import duties or allowed a reduction or exemption therefrom, depending on the specific situation of each case. When the above-mentioned goods are imported or products of the special zones are exported, customs declaration shall be filed. Article 14 The enterprise income tax rate in the special zones is 15 percent. Special preferential treatment shall be given to the enterprises established within two years after the promulgation of these Regulations, or those with an investment of U.S.$ 5 million or more, or those involving relatively high technology or having a relatively long period of capital turnover. Article 15 The lawful profits that an investor receives after payment of enterprise income tax, and the wages and salaries and other legitimate earnings of the foreign, overseas Chinese, Hongkong and Macao workers and staff members of such enterprise after payment of individual income tax, may be remitted abroad through the Bank of China or other banks in the special zones, in accordance with the provisions of the foreign exchange control measures of the special zones. Article 16 An investor that reinvests his share of the profit in the special zones for a period of five years or longer may apply for a reduction of, or an exemption from, income tax on the reinvested portion. Article 17 Enterprises in the special zones shall be encouraged to use machinery and equipment, raw and semi-processed materials and other materials produced in China, and preferential prices shall be offered on the basis of China’s current export prices for the same kinds of commodities, using foreign exchange to settle accounts. These products and materials may be shipped directly to the special zones with the sales vouchers of the selling units. Article 18 Entry and exit procedures shall be simplified to provide conveniences to foreigner, overseas Chinese and the compatriots from Hongkong and Macao for entering and leaving the special zones. Chapter IV Labour Management Article 19 A labour service company shall be set up in each of the special zones. Chinese staff members and workers to be employed by an enterprise in the special zone are recommended by the local labour service company, or recruited by the investor himself with the consent of the Guangdong Provincial Committee for the Administration of Special Economic Zones; and they shall undergo examination or interview conducted by the enterprise and shall sign labour contracts with the enterprise. Article 20 The staff members and workers employed by enterprises in the special zones shall be managed by the enterprises according to their business requirements and, when necessary, may be dismissed, after going through the procedures provided in the labour contracts. Staff members and workers of the enterprises in the special zones may submit their resignation to the enterprises in accordance with the terms of the labour contracts. Article 21 The wage levels, types of wages, award measures and the labour insurance and various state subsidies for the Chinese staff members and workers of the enterprises in the special zones shall be included in the contracts signed by the enterprises with the staff members and workers as stipulated by the Guangdong Provincial Committee for the Administration of Special Economic Zones. Article 22 Enterprises in the special zones shall adopt the necessary measures for labour protection to ensure that staff members and workers work in safe and hygienic conditions. Chapter V Administrative Organization Article 23 The Guangdong Provincial Committee for the Administration of Special Economic Zones shall exercise the following functions and powers: (1) to draw up development plans for the special zones and organize their implementation; (2) to examine and approve the investment projects of investors in the special zones; (3) to handle registration of industrial and commercial enterprises and land allotment in the special zones; (4) to coordinate working relations among the banking, insurance, taxation, Customs, frontier inspection, postal and telecommunications and other organizations in the special zones; (5) to provide the staff members and workers needed by enterprises in the special zones and protect the legitimate rights and interests of the staff members and workers; (6) to establish educational, cultural, health and various public welfare institutions in the special zones; and (7) to maintain law and order in the special zones and protect, in accordance with the law, the persons and property in the special zones against encroachment. Article 24 The Shenzhen Special Zone shall be under the direct management and administration of the Guangdong Provincial Committee for the Administration of Special Economic Zones. Necessary offices shall be set up in the Zhuhai and Shantou Special Zones. Article 25 A Guangdong Provincial Special Economic Zones Development Company shall be set up to suit the expanding economic activities in the special zones. Its scope of business shall include: undertaking to raise funds and handle trust investment business; operating, or jointing with investors in operating, relevant enterprises in the special zones; acting as agent for investors in the special zones in transactions relating to sales and purchases in trade with the Chinese mainland; and providing services for business talks. Chapter VI Supplementary Provisions Article 26 These Regulations shall go into effect after they have been adopted by the People’s Congress of Guangdong Province and submitted to and approved by the Standing Committee of the National People’s Congress of the People’s Republic of China.

INCOME TAX LAW FOR FOREIGN ENTERPRISES

Category	TAXATION	Organ of Promulgation	The National People’s Congress	Status of Effect	Invalidated
Date of Promulgation	1981-12-13	Effective Date	1982-01-01	Date of Invalidation	1991-07-01

Income Tax Law of the People’s Republic of China for Foreign Enterprises

(Adopted at the Fourth Session of the Fifth National People’s Congress and

promulgated by Order No. 13 of the Chairman of the Standing Committee of the
National People’s Congress on December 13, 1981, and effective as of January
1, 1982) (Editor’s Note: This Law has been annulled by Income Tax Law of the
People’s Republic of China for Enterprises with Foreign Investment and Foreign
Enterprises promulgated on April 9, 1991 and effective as of July 1, 1991)

Article 1 Income tax shall be paid in accordance with the provisions of
this Law by foreign enterprises on their income derived from production and
business operations and other sources in the People’s Republic of China.

“Foreign enterprises” mentioned in this Law refers, with the exception of
those for whom separate provisions are stipulated in Article 11, to foreign
companies, enterprises and other economic organizations that have
establishments within the territory of the People’s Republic of China engaged
in independent business operations or in cooperative production or cooperative
business operations with Chinese enterprises.

Article 2 The taxable income of a foreign enterprise 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 on foreign enterprises shall be computed at
progressive rates on amounts in excess of specified amounts of taxable income;
the rates are as follows:

Range of Income
Tax Rate (%)

Annual income not exceeding

250,000 yuan 20

That part of annual income from

250,000 to 500,000 yuan
25

That part of annual income from

500,001 to 750,000 yuan
30

That part of annual income from

750,001 to 1,000,000 yuan
35

That part of annual income above

1,000,000 yuan 40

Article 4 When paying the income tax in accordance with the provisions
of the preceding Article, a foreign enterprise shall also pay a local income
tax of ten percent of taxable income. In cases where a foreign enterprise with
small-scale production and low profits warrants a reduction in or exemption
from the local income tax, the decision shall be made by the people’s
government of the province, autonomous region, or municipality directly under
the Central Government in which the enterprise is located.

Article 5 A foreign enterprise scheduled to operate for a period of ten
years or more in farming, foresty, animal husbandry or other low-profit
operations may, upon approval by the tax authorities of an application filed
by the enterprise, be exempted from income tax in the first profit-making year
and allowed a 50 percent reduction of income tax in the second and third years.

With the approval of the Ministry of Finance, a 15 to 30 percent reduction
in income tax may be allowed for another ten years following the expiration of
the period for exemption and reductions prescribed in the preceding paragraph.

Article 6 Losses incurred by a foreign enterprise in a tax year may be
made up with a corresponding amount drawn from the 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 7 Income tax on foreign enterprises shall be computed on an
annual basis and paid in 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 supplementary payment for any
deficiency.

Article 8 A foreign enterprise shall file its income tax returns in
respect of advance payments with the local tax authorities within each period
prescribed for advance payments; and it shall file an annual income tax
return, together with the statement of final accounts, within four months
after the end of the tax year.

Article 9 A report on the financial and accounting systems of a foreign
enterprise shall be submitted to the local tax authorities for reference.

If the procedures for financial management and accounting of a foreign
enterprise contradict the provisions of the tax laws, tax payments shall be
assessed in accordance with the provisions of the tax laws.

Article 10 When a foreign enterprise starts or ceases to operate in
accordance with the law, it shall present the relevant certificates to the
local tax authorities and go through tax registration.

Article 11 Foreign companies, enterprises and other economic
organizations that have no establishments in China, but have gained dividend,
interest, rental, royalty and other income from sources in China, shall pay an
income tax of 20 percent on such income. Such tax shall be withheld by the
paying unit from the amount of each payment.

For the payment of income tax in accordance with the provisions of the
preceding paragraph, the foreign company, enterprise or other economic
organization which earns the income shall be the taxpayer, and the paying unit
shall be the withholding agent. The tax withheld from each payment by the
withholding agent shall be turned over to the State Treasury and the
withholding income tax return submitted to the tax authorities within five
days.

Income from interest on loans made to the Chinese Government or Chinese
state banks by international financial organizations shall be exempted from
income tax. Income from interest on loans made at a preferential interest rate
by foreign banks to Chinese state banks shall also be exempted from income tax.

Foreign banks shall pay tax on their income from interest on deposits in
Chinese state banks and on loans made at a normal interest rate to Chinese
state banks. However, an exemption from income tax may be granted reciprocally
to those foreign banks in whose countries income from interest on
deposits of, and loans made by, Chinese state banks is exempt from income tax.

Article 12 The tax authorities shall have the right to inspect the
financial, accounting and tax affairs of a foreign enterprise, and the right
to inspect the withholding of tax of a withholding agent and its payment of
the withheld tax into the State Treasury. Foreign enterprises and withholding
agents must make reports according to the facts and provide relevant
information; they may not refuse to cooperate and may not conceal the facts.

Article 13 The income tax levied on foreign enterprises 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 14 Foreign enterprises and withholding agents must pay taxes
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 percent the overdue tax
for every day in arrears, starting from the first day payment becomes overdue.

Article 15 The tax authorities may, in the light of the circumstances,
impose a fine on a foreign enterprise that has violated the provisions of
Articles 8, 9, 10 or 12 of this Law.

In dealing with a withholding agent who has violated the provisions of
Article 11 of this Law, the tax authorities may, in addition to setting a new
time limit for the payment of the amount of tax that should have been
withheld, impose a fine in the light of the circumstances, up to but not
exceeding 100 percent of the amount of tax that should have been withheld.

In dealing with a foreign enterprise that has evaded or refused to pay
tax, the tax authorities, in addition to pursuing the tax payment, may impose
a fine of up to but not exceeding 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 16 In case of a dispute with the tax authorities over tax
payment, a foreign enterprise must pay tax according to the relevant
regulations before applying to higher tax authorities reconsideration. If it
does not accept the decision made after such reconsideration, it may bring a
suit in the local people’s court.

Article 17 When agreements on tax payment have been concluded between
the Government of the People’s Republic of China and foreign governments,
matters concerning tax payment shall be handled in accordance with the
provisions of the respective agreements.

Article 18 Rules for the implementation of this Law shall be formulated
by the Ministry of Finance of the People’s Republic of China.

Article 19 This Law shall go into effect on January 1, 1982.

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INCOME TAX LAW FOR FOREIGN ENTERPRISES

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

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CONSTITUTION ACT, 1982 – page 7