China Laws

ADMINISTRATIVE PROCEDURE LAW

Category	LITIGATION	Organ of Promulgation	The National People’s Congress	Status of Effect	In Force
Date of Promulgation	1989-04-04	Effective Date	1990-10-01

Administrative Procedure Law of the People’s Republic of China

Contents
Chapter I  General Provisions
Chapter II  Scope of Accepting Cases
Chapter III  Jurisdiction
Chapter IV  Participants in Proceedings
Chapter V  Evidence
Chapter Vl  Bringing a Suit and Accepting a Case
Chapter VII  Trial and Judgment
Chapter VII  Execution
Chapter IX  Liability for Compensation for Infringement of Rights
Chapter X  Administrative Procedure Involving Foreign Interests
Chapter XI  Supplementary Provisions

(Adopted at the Second Session of the Seventh National People’s Congress

on April 4, 1989, promulgated by Order No. 16 of the President of the People’s
Republic of China on April 4, 1989, and effective as of October 1, 1990)
Contents

Chapter I General Provisions

Chapter II Scope of Accepting Cases

Chapter III Jurisdiction

Chapter IV Participants in Proceedings

Chapter V Evidence

Chapter VI Bringing a Suit and Accepting a Case

Chapter VII Trial and Judgment

Chapter VIII Execution

Chapter IX Liability for Compensation for Infringement of Rights

Chapter X Administrative Procedure Involving Foreign Interest

Chapter XI Supplementary Provisions
Chapter I General Provisions

Article 1 Pursuant to the Constitution, this Law is enacted for the
purpose of ensuring the correct and prompt handling of administrative cases
by the people’s courts, protecting the lawful rights and interests of
citizens, legal persons and other organizations, and safeguarding and
supervising the exercise of administrative powers by administrative organs in
accordance with the law.

Article 2 If a citizen, a legal person or any other organization
considers that his or its lawful rights and interests have been infringed upon
by a specific administrative act of an administrative organ or its personnel,
he or it shall have the right to bring a suit before a people’s court in
accordance with this Law.

Article 3 The people’s courts shall, in accordance with the law, exercise
judicial power independently with respect to administrative cases, and shall
not be subject to interference by any administrative organ, public
organization or individual.

The people’s courts shall set up administrative divisions for the handling
of administrative cases.

Article 4 In conducting administrative proceedings, the people’s courts
shall base themselves on facts and take the law as the criterion.

Article 5 In handling administrative cases, the people’s courts shall
examine the legality of specific administrative acts.

Article 6 In handling administrative cases, the people’s courts shall, as
prescribed by law, apply the systems of collegial panel, withdrawal of
judicial personnel and public trial and a system whereby the second instance
is the final instance.

Article 7 Parties to an administrative suit shall have equal legal
positions.

Article 8 Citizens of all nationalities shall have the right to use their
native spoken and written languages in administrative proceedings.

In an area where people of a minority nationality live in concentrated
communities or where a number of nationalities live together, the people’s
courts shall conduct adjudication and issue legal documents in the language or
languages commonly used by the local nationalities.

The people’s courts shall provide interpretation for participants in
proceedings who do not understand the language or languages commonly used by
the local nationalities.

Article 9 Parties to an administrative suit shall have the right to
debate.

Article 10 The people’s procuratorates shall have the right to exercise
legal supervision over administrative proceedings.
Chapter II Scope of Accepting Cases

Article 11 The people’s courts shall accept suits brought by citizens,
legal persons or other organizations against any of the following specific
administrative acts:

(1) an administrative sanction, such as detention, fine, rescission of a
license or permit, order to suspend production or business or confiscation of
property, which one refuses to accept;

(2) a compulsory administrative measure, such as restricting freedom of
the person or the sealing up, seizing or freezing of property, which one
refuses to accept;

(3) infringement upon one’s managerial decision-making powers, which is
considered to have been perpetrated by an administrative organ;

(4) refusal by an administrative organ to issue a permit or license, which
one considers oneself legally qualified to apply for, or its failure to
respond to the application;

(5) refusal by an administrative organ to perform its statutory duty of
protecting one’s rights of the person and of property, as one has applied for,
or its failure to respond to the application;

(6) cases where an administrative organ is considered to have failed to
issue a pension according to law;

(7) cases where an administrative organ is considered to have illegally
demanded the performance of duties; and

(8) cases where an administrative organ is considered to have infringed
upon other rights of the person and of property.

Apart from the provisions set forth in the preceding paragraphs, the
people’s courts shall accept other administrative suits which may be brought
in accordance with the provisions of relevant laws and regulations.

Article 12 The people’s courts shall not accept suits brought by
citizens, legal persons or other organizations against any of the following
matters:

(1) acts of the state in areas like national defence and foreign affairs;

(2) administrative rules and regulations, regulations, or decisions and
orders with general binding force formulated and announced by administrative
organs;

(3) decisions of an administrative organ on awards or punishments for its
personnel or on the appointment or relief of duties of its personnel; and

(4) specific administrative acts that shall, as provided for by law, be
finally decided by an administrative organ.
Chapter III Jurisdiction

Article 13 The basic people’s courts shall have jurisdiction as courts of
first instance over administrative cases.

Article 14 The intermediate people’s courts shall have jurisdiction as
courts of first instance over the following administrative cases:

(1) cases of confirming patent rights of invention and cases handled by
the Customs;

(2) suits against specific administrative acts undertaken by departments
under the State Council or by the people’s governments of provinces,
autonomous regions or municipalities directly under the Central Government;
and

(3) grave and complicated cases in areas under their jurisdiction.

Article 15 The higher people’s courts shall have jurisdiction as courts
of first instance over grave and complicated administrative cases in areas
under their jurisdiction.

Article 16 The Supreme People’s Court shall have jurisdiction as a court
of first instance over grave and complicated administrative cases in the whole
country.

Article 17 An administrative case shall be under the jurisdiction of the
people’s court in the locality of the administrative organ that initially
undertook the specific administrative act. A reconsidered case in which the
organ conducting the reconsideration has amended the original specific
administrative act may also be placed under the jurisdiction of the people’s
court in the locality of the administrative organ conducting the
reconsideration.

Article 18 A suit against compulsory administrative measures restricting
freedom of the person shall be under the jurisdiction of a people’s court in
the place where the defendant or the plaintiff is located.

Article 19 An administrative suit regarding a real property shall be
under the jurisdiction of the people’s court in the place where the real
property is located.

Article 20 When two or more people’s courts have jurisdiction over a
suit, the plaintiff may have the option to bring the suit in one of these
people’s courts. If the plaintiff brings the suit in two or more people’s
courts that have jurisdiction over the suit, the people’s court that first
receives the bill of complaint shall have jurisdiction.

Article 21 If a people’s court finds that a case it has accepted is not
under its jurisdiction, it shall transfer the case to the people’s court that
does have jurisdiction over the case. The people’s court to which the case has
been transferred shall not on its own initiative transfer it to another
people’s court.

Article 22 If a people’s court which has jurisdiction over a case is
unable to exercise its jurisdiction for special reasons, a people’s court at a
higher level shall designate another court to exercise the jurisdiction.

If a dispute arises over jurisdiction between people’s courts, it shall be
resolved by the parties to the dispute through consultation. If the dispute
cannot be resolved through consultation, it shall be reported to a people’s
court superior to the courts in dispute for the designation of jurisdiction.

Article 23 People’s courts at higher levels shall have the authority to
adjudicate administrative cases over which people’s courts at lower levels
have jurisdiction as courts of first instance; they may also transfer
administrative cases over which they themselves have jurisdiction as courts of
first instance to people’s courts at lower levels for trial.

If a people’s court deems it necessary for an administrative case of first
instance under its jurisdiction to be adjudicated by a people’s court at a
higher level, it may report to such a people’s court for decision.
Chapter IV Participants in Proceedings

Article 24 A citizen, a legal person or any other organization that
brings a suit in accordance with this Law shall be a plaintiff.

If a citizen who has the right to bring a suit is deceased, his near
relatives may bring the suit.

If a legal person or any other organization that has the right to bring a
suit terminates, the legal person or any other organization that succeeds to
its rights may bring the suit.

Article 25 If a citizen, a legal person or any other organization, brings
a suit directly before a people’s court, the administrative organ that
undertook the specific administrative act shall be the defendant.

For a reconsidered case, if the organ that conducted the reconsideration
sustains the original specific administrative act, the administrative organ
that initially undertook the act shall be the defendant; if the organ that
conducted the reconsideration has amended the original specific administrative
act, the administrative organ which conducted the reconsideration shall be the
defendant.

If two or more administrative organs have undertaken the same specific
administrative act, the administrative organs that have jointly undertaken the
act shall be the joint defendants.

If a specific administrative act has been undertaken by an organization
authorized to undertake the act by the law or regulations, the organization
shall be the defendant.

If a specific administrative act has been undertaken by an organization as
entrusted by an administrative organ, the entrusting organ shall be the
defendant.

If an administrative organ has been abolished, the administrative organ
that carries on the exercise of functions and powers of the abolished organ
shall be the defendant.

Article 26 A joint suit shall be constituted when one party or both
parties consist of two or more persons and the administrative cases are
against the same specific administrative act or against the specific
administrative acts of the same nature and the people’s court considers that
the cases can be handled together.

Article 27 If any other citizen, legal person or any other organization
has interests in a specific administrative act under litigation, he or it may,
as a third party, file a request to participate in the proceedings or may
participate in them when so notified by the people’s court.

Article 28 Any citizen with no capacity to take part in litigation shall
have one or more legal representatives who will act on his behalf in a suit.
If the legal representatives try to shift their responsibilities onto each
other, the people’s court may appoint one of them as the representative of the
principal in litigation.

Article 29 Each party or legal representative may entrust one or two
persons to represent him in litigation.

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

Article 30 A lawyer who serves as an agent ad litem may consult materials
pertaining to the case in accordance with relevant provisions, and may also
investigate among and collect evidence from the organizations and citizens
concerned. If the information involves state secrets or the private affairs of
individuals, he shall keep it confidential in accordance with relevant
provisions of the law.

With the approval of the people’s court, parties and other agents ad litem
may consult the materials relating to the court proceedings of the case,
except those that involve state secrets or the private affairs of individuals.
Chapter V Evidence

Article 31 Evidence shall be classified as follows:

(1) documentary evidence;

(2) material evidence;

(3) audio-visual material;

(4) testimony of witnesses;

(5) statements of the parties;

(6) expert conclusions; and

(7) records of inquests and records made on the scene.

Any of the above-mentioned evidence must be verified by the court before
it can be taken as a basis for ascertaining a fact.

Article 32 The defendant shall have the burden of proof for the specific
administrative act he has undertaken and shall provide the evidence and
regulatory documents in accordance with which the act has been undertaken.

Article 33 In the course of legal proceedings, the defendant shall not by
himself collect evidence from the plaintiff and witnesses.

Article 34 A people’s court shall have the authority to request the
parties to provide or supplement evidence.

A people’s court shall have the authority to obtain evidence from the
relevant administrative organs, other organizations or citizens.

Article 35 In the course of legal proceedings, when a people’s court
considers that an expert evaluation for a specialized problem is necessary,
the expert evaluation shall be made by an expert evaluation department as
specified by law. In the absence of such a department, the people’s court
shall designate one to conduct the expert evaluation.

Article 36 Under circumstances where there is a likelihood that evidence
may be destroyed or lost or difficult to obtain later on, the participants
in proceedings may apply to the people’s court for the evidence to be
preserved. The people’s court may also on its own initiative take measures to
preserve such evidence.
Chapter Vl Bringing a Suit and Accepting a Case

Article 37 A citizen, a legal person or any other organization may,
within the scope of cases acceptable to the people’s courts, apply to an
administrative organ at the next higher level or to an administrative organ as
prescribed by the law or regulations for reconsideration, anyone who refuses
to accept the reconsideration decision may bring a suit before a people’s
court; a citizen, a legal person or any other organization may also bring a
suit directly before a people’s court.

In circumstances where, in accordance with relevant provisions of laws or
regulations, a citizen, a legal person or any other organization shall first
apply to an administrative organ for reconsideration and then bring a suit
before a people’s court, if he or it refuses to accept the reconsideration
decision, the provisions of the laws or regulations shall apply.

Article 38 If a citizen, a legal person or any other organization applies
to an administrative organ for reconsideration, the organ shall make a
decision within two months from the day of the receipt of the application,
except as otherwise provided for by law or regulations. Anyone who refuses to
accept the reconsideration decision may bring a suit before a people’s court
within 15 days from the day of the receipt of the reconsideration decision.

If the administrative organ conducting the reconsideration fails to make a
decision on the expiration of the time limit, the applicant may bring a suit
before a people’s court within 15 days after the time limit for
reconsideration expires, except as otherwise provided for by law.

Article 39 If a citizen, a legal person or any other organization brings
a suit directly before a people’s court, he or it shall do so within three
months from the day when he or it knows that a specific administrative act has
been undertaken, except as otherwise provided for by law.

Article 40 If a citizen, a legal person or any other organization fails
to observe the time limit prescribed by law due to force majeure or other
special reasons, he or it may apply for an extention of the time limit within
ten days after the obstacle is removed; the requested extention shall be
decided by a people’s court.

Article 41 The following requirements shall be met when a suit is brought:

(1) the plaintiff must be a citizen, a legal person or any other
organization that considers a specific administrative act to have infringed
upon his or its lawful rights and interests;

(2) there must be a specific defendant or defendants;

(3) there must be a specific claim and a corresponding factual basis for
the suit; and

(4) the suit must fall within the scope of cases acceptable to the
people’s courts and the specific jurisdiction of the people’s court where it
is filed.

Article 42 When a people’s court receives a bill of complaint, it shall,
upon examination, file a case within seven days or decide to reject the
complaint. If the plaintiff refuses to accept the decision, he may appeal to a
people’s court.
Chapter VII Trial and Judgment

Article 43 A people’s court shall send a copy of the bill of complaint to
the defendant within five days of filing the case. The defendant shall provide
the people’s court with the documents on the basis of which a specific
administrative act has been undertaken and file a bill of defence within ten
days of receiving the copy of the bill of complaint. The people’s court shall
send a copy of the bill of defence to the plaintiff within five days of
receiving it.

Failure by the defendant to file a bill of defence shall not prevent the
case from being tried by the people’s court.

Article 44 During the time of legal proceedings, execution of the
specific administrative act shall not be suspended. Execution of the specific
administrative act shall be suspended under one of the following circumstances:

(1) where suspension is deemed necessary by the defendant;

(2) where suspension of execution is ordered by the people’s court at the
request of the plaintiff because, in the view of the people’s court, execution
of the specific administrative act will cause irremediable losses and
suspension of the execution will not harm public interests; or

(3) where suspension of execution is required by the provisions of laws or
regulations.

Article 45 Administrative cases in the people’s courts shall be tried in
public, except for those that involve state secrets or the private affairs of
individuals or are otherwise provided for by law.

Article 46 Administrative cases in the people’s courts shall be tried by
a collegial panel of judges or of judges and assessors. The number of members
of a collegial panel shall be an odd number of three or more.

Article 47 If a party considers a member of the judicial personnel to
have an interest in the case or to be otherwise related to it, which may
affect the impartial handling of thc case, the party shall have the right to
demand his withdrawal.

If a member of the judicial personnel considers himself to have an
interest in the case or to be otherwise related to it, he shall apply for
withdrawal.

The provisions of the two preceding paragraphs shall apply to court
clerks, interpreters, expert witnesses and persons who conduct inquests.

The withdrawal of the president of the court as the chief judge shall be
decided by the court’s adjudication committee; the withdrawal of a member of
the judicial personnel shall be decided by the president of the court; the
withdrawal of other personnel shall be decided by the chief judge. Parties who
refuse to accept the decision may apply for reconsideration.

Article 48 If the plaintiff refuses to appear in court without justified
reasons after being twice legally summoned by the people’s court, the court
shall consider this an application for the withdrawal of the suit; if the
defendant refuses to appear in court without justified reasons, the court may
make a judgment by default.

Article 49 If a participant in the proceedings or any other person
commits any of the following acts, the people’s court may, according to the
seriousness of his offence, reprimand him, order him to sign a statement of
repentance or impose upon him a fine of not more than 1,000 yuan or detain him
for not longer than 15 days; if a crime is constituted, his criminal
responsibility shall be investigated:

(1) evading without reason, refusing to assist in or obstructing the
execution of the notice of a people’s court for assistance in its execution by
person who has the duty to render assistance;

(2) forging, concealing or destroying evidence;

(3) instigating, suborning or threatening others to commit perjury or
hindering witnesses from giving testimony;

(4) concealing, transferring, selling or destroying the property that has
been sealed up, seized or frozen;

(5) using violence, threats or other means to hinder the personnel of a
people’s court from performing their duties or disturbing the order of the
work of a people’s court; or

(6) insulting, slandering, framing, beating or retaliating against the
personnel of a people’s court, participants in proceedings or personnel who
assist in the execution of duties;

A fine or detention must be approved by the president of a people’s court.
Parties who refuse to accept the punishment decision may apply for
reconsideration.

Article 50 A people’s court shall not apply conciliation in handling an
administrative case.

Article 51 Before a people’s court announces its judgment or order on an
administrative case, if the plaintiff applies for the withdrawal of the suit,
or if the defendant amends its specific administrative act and, as a result,
the plaintiff agrees and applies for the withdrawal of the suit, the people’s
court shall decide whether or not to grant the approval.

Article 52 In handling administrative cases, the people’s courts shall
take the law, administrative rules and regulations and local regulations as
the criteria. Local regulations shall be applicable to administrative cases
within the corresponding administrative areas.

In handling administrative cases of a national autonomous area, the
people’s courts shall also take the regulations on autonomy and separate
regulations of the national autonomous area as the criteria.

Article 53 In handling administrative cases, the people’s courts shall
take, as references, regulations formulated and announced by ministries or
commissions under the State Council in accordance with the law and
administrative rules and regulations, decisions or orders of the State Council
and regulations formulated and announced, in accordance with the law and
administrative rules and regulations of the State Council, by the people’s
governments of provinces, autonomous regions and municipalities directly under
the Central Government, of the cities where the people’s governments of
provinces and autonomous regions are located, and of the larger cities
approved as such by the State Council.

If a people’s court considers regulations formulated and announced by a
local people’s government to be inconsistent with regulations formulated and
announced by a ministry or commission under the State Council, or if it
considers regulations formulated and announced by ministries or commissions
under the State Council to be inconsistent with each other, the Supreme
People’s Court shall refer the matter to the State Council for interpretation
or ruling.

Article 54 After hearing a case, a people’s court shall make the
following judgments according to the varying conditions:

(1) If the evidence for undertaking a specific administrative act is
conclusive, the application of the law and regulations to the act is correct,
and the legal procedure is complied with, the specific administrative act
shall be sustained by judgment.

(2) If a specific administrative act has been undertaken in one of the
following circumstances, the act shall be annulled or partially annulled by
judgment, or the defendant may be required by judgment to undertake a specific
administrative act anew:

a. inadequacy of essential evidence;

b. erroneous application of the law or regulations;

c. violation of legal procedure;

d. exceeding authority; or

e. abuse of powers.

(3) If a defendant fails to perform or delays the performance of his
statutory duty, a fixed time shall be set by judgment for his performance of <

PROVISIONS GOVERNING THE FOREIGN EXCHANGE OF CHINESE INVESTORS IN CHINESE-FOREIGN EQUITY JOINT VENTURES AND CONTRACTUAL JOINT VENTURES

The State Administration of Foreign Exchange

Provisions Governing the Foreign Exchange of Chinese Investors in Chinese-foreign Equity Joint Ventures and Contractual Joint Ventures

the State Administration of Foreign Exchange

January 7, 1989

The following Provisions are enacted to strengthen control over the foreign exchange of Chinese investors in Chinese-foreign equity
joint ventures and contractual joint ventures (hereinafter referred to as joint ventures), ensure the healthy development of these
ventures, and protect the interests of the State.

Article 1

The Chinese investor in a joint venture may, starting from the day the joint venture obtains its business licence, retain all the
foreign exchange it earns in the first five-year, and 50% of it after the five-year period.

Article 2

When Chinese employees of a joint venture go abroad on duty together with foreign employees out of the need of business, the expenses
abroad of the Chinese employees may be reimbursed for what they have actually spent according to the standards set by the joint venture.

Article 3

When Chinese employees of a joint venture go abroad on duty alone, their expenses may be computed according to the standards set by
the joint venture, while the actual sum to be spent shall be computed with reference to the standards set by the state for those
going abroad on public duties.

Article 4

The surplus foreign exchange resulting from the difference between the sum received according to the standards of joint venture and
that spent abroad by Chinese employees according to the State standards may be settled with the bank as foreign exchange receipts
of the Chinese investor in the joint venture, which may retain a portion of it by presenting the exchange memos to and completing
the formalities with the exchange control authorities.

Article 5

The Chinese investor of a joint venture shall settle with the bank the foreign exchange it has received as wages of the Chinese employees,
and the foreign exchange for its services, from industrial property, as dividends etc. and may retain a portion of the foreign exchange
by presenting the exchange memos to and completing the formalities with the exchange control authorities.

Article 6

Unless approved by the exchange control authorities, the Chinese investor of a joint venture may be punished by the said authorities
for any of the following actions, on the merit of each case and in accordance with the “Rules for the Implementation of Penalty on
Offenses Against Exchange Control”:

(1)

depositing those foreign exchange receipts that are required by State regulations to be settled with the bank in the foreign exchange
accounts of the joint venture, instead of settling these receipts with the State bank;

(2)

using such foreign exchange to import commodities or defray other expenses through the bank accounts of the joint venture; or

(3)

depositing such foreign exchange abroad.

Article 7

The right to interpret these provisions resides in the State Administration of Exchange Control.

Article 8

These Provisions shall enter into force on March 1, 1989.

The State Administration of Foreign Exchange
1989-01-07

RULES OF PROCEDURE FOR THE NATIONAL PEOPLE’S CONGRESS OF THE PEOPLE’S REPUBLIC OF CHINA

Rules of Procedure for the National People’s Congress of the People’s Republic of China

(Adopted at the Second Session of the Seventh National People’s Congress on April 4, 1989 and promulgated by Order
No.17 of the President of the People’s Republic of China on April 4, 1989)

Contents

Chapter I Holding of Meetings

Chapter II Submission of and Deliberation on Bills and Proposals

Chapter III Deliberation of Work Reports and Examination of State Plans and Budget

Chapter IV Election, Recall, Appointment, Removal from Office, and Resignation of Members of State Organs

Chapter V Inquiries and the Addressing of Questions

Chapter VI Investigation Committees

Chapter VII Speaking and Voting

Article 1 These Rules are formulated in accordance with the Constitution, the Organic Law of the National People’s Congress
and the practical experience of the National People’s Congress.

Chapter I

Holding of Meetings

Article 2 The National People’s Congress shall meet in session in the first quarter of each year. When the Standing Committee
of the National People’s Congress deems it necessary, or upon a proposal by at least one fifth of the number of deputies to the National
People’s Congress, an interim session of the National People’s Congress may be convened.

Article 3 Sessions of the National People’s Congress shall be convened by the Standing Committee of the National People’s Congress.
The first session of each National People’s Congress shall be convened by the Standing Committee of the previous National People’s
Congress within two months of the election of deputies to the current National People’s Congress.

Article 4 Sessions of the National People’s Congress shall be held only when two thirds or more of the number of deputies are
present.

Article 5 The Standing Committee of the National People’s Congress shall, before a session of the National People’s Congress
is held, conduct the following preparatory work for the session:

(1) to submit a draft agenda for the session;

(2) to submit a draft namelist of the Presidium and the Secretary-General;

(3) to decide on the namelist of non-voting participants; and

(4) to make other preparations for the session.

Article 6 A month before the holding of a session of the National People’s Congress, its Standing Committee shall notify
the deputies of the date of the session and of the main items on the proposed agenda and shall distribute to the deputies
the draft laws to be submitted to the session for deliberation.

The provisions of the preceding paragraph shall not apply to an interim session of the National People’s Congress.

Article 7 Before a session of the National People’s Congress is held, deputies shall be grouped into delegations based on the
units that elected them. The head and deputy-heads of a delegation shall be elected at a general meeting of the delegation. The head
of a delegation shall call and preside over the general meetings of the delegation. The deputy-heads shall assist in the work of
the head of the delegation.

Each delegation may be subdivided into groups of deputies. The convener of a group shall be elected at a group meeting of deputies.

Article 8 Before a session of the National People’s Congress is held, a preparatory meeting shall be convened to elect the
Presidium and the Secretary-General, adopt the agenda for the session and make decisions on other preparations for the session.

The preparatory meeting shall be presided over by the Standing Committee of the National People’s Congress. The preparatory
meeting of the first session of each National People’s Congress shall be conducted by the Standing Committee of the previous National
People’s Congress.

All delegations shall deliberate and give their opinions on the draft namelist of the Presidium and the Secretary- General, the draft
agenda and other matters preparatory to the session submitted by the Standing Committee of the National People’s Congress.

The Council of Chairmen of the Standing Committee of the National People’s Congress may, based on the opinions expressed by the various
delegations, put forward proposals on adjustments in the draft name list of the Presidium and the Secretary-General, the draft agenda
for the session and other matters preparatory to the session and refer them to the preparatory meeting for deliberation.

Article 9 The Presidium shall preside over the sessions of the National People’s Congress.

The Presidium shall adopt its decisions by a simple majority vote of all its members.

Article 10 The first meeting of the Presidium shall elect a number of standing chairmen of the Presidium, elect members
of

the Presidium to be the executive chairmen of each plenary meeting of the session and decide on the following matters:

(1) choice of the Deputy Secretaries-General;

(2) schedule of the session;

(3) procedure for voting on the bills and proposals;

(4) deadline for the submission of bills and proposals by deputies; and

(5) other matters requiring decision by the first meeting of the Presidium.

Article 11 The standing chairmen of the Presidium shall convene and preside over meetings of the Presidium. The first meeting of
the Presidium shall be convened by the Chairman of the Standing Committee of the National People’s Congress.

The standing chairmen of the Presidium may put forward suggestions to the Presidium regarding matters that fall within the scope
of functions and powers of the Presidium, and may also make necessary adjustments in the schedule of the session.

Article 12 Bills or proposals and the relevant reports which are to be deliberated by the delegations shall be deliberated
at the general meetings and group meetings of the delegations.

Bills, proposals for addressing questions and proposals for removal from office that are to be submitted in the name
of a delegation shall be adopted by a simple majority vote of all the members of the delegation.

Article 13 The standing chairmen of the Presidium may convene meetings of heads of delegations to hear and discuss
the deliberation reports of various delegations on major issues concerning bills or proposals and the relevant reports. and
report the discussions and comments to the Presidium.

The standing chairmen of the Presidium may conduct discussions of important specialized problems by calling together relevant
deputies elected by various delegations; leaders of relevant departments under the State Council shall attend the meeting, report
the related circumstances and answer questions. The standing chairmen of the Presidium shall report the discussions and comments
to the Presidium.

Article 14 The Presidium may convene a plenary meeting of the session, at which speeches shall be made and opinions
expressed on a bill or proposal or a relevant report.

Article 15 For each session, the National People’s Congress shall set up a Secretariat which shall be composed of a Secretary-General
and Deputy Secretaries-General.

The Secretariat shall, under the direction of the Secretary-General, handle matters assigned by the Presidium and the day-to-day
affairs of the session. The Deputy Secretaries-General shall assist the Secretary-General in his work.

Article 16 When the National People’s Congress is in session, its deputies shall attend the meetings; those who are not able
to attend the meeting on account of illnesses or for other reasons must ask for leave.

Article 17 Members of the State Council, members of the Central Military Commission, the President of the Supreme People’s
Court and the Procurator-General of the Supreme People’s Procuratorate may attend meetings of the National People’s Congress
without voting rights. By decision of the Standing Committee of the National People’s Congress, leaders of other state organs and
public organizations concerned may attend meetings of the National People’s Congress without voting rights.

Article 18 Sessions of the National People’s Congress shall be held in public.

During a session of the National People’s Congress, speeches by deputies at the various meetings shall be printed in bulletins for
distribution at the session; the minutes or summaries of the speeches may, upon the request of the speakers, be printed for distribution
at the session as well.

Visitors’ seats shall be provided at the plenary meetings of a session. Measures for visiting the meeting shall be stipulated separately.

News briefings and press conferences shall be held for a session of the National People’s Congress.

Article 19 When necessary, the National People’s Congress may hold a closed session. The holding of a closed session shall,
after the Presidium has solicited opinions from the various delegations, be decided by the meeting of the Presidium with the participation
of the heads of all the delegations.

Article 20 When the National People’s Congress is in session, the Secretariat and delegations concerned shall provide deputies
from the minority nationalities with the necessary interpretation.

Chapter II

Submission of and Deliberation on Bills and Proposals

Article 21 The Presidium, the Standing Committee and the special committees of the National People’s Congress, the State Council,
the Central Military Commission, the Supreme People’s Court and the Supreme People’s Procuratorate may submit to the National People’s
Congress bills or proposals that fall within the scope of its functions and powers, which shall be put on the agenda of a session
by decision of the Presidium.

A delegation or a group of thirty or more deputies may submit to the National People’s Congress bills or proposals that fall within
the scope of its functions and powers. The Presidium shall decide whether or not to put the bills or proposals on the agenda of the
session, or to refer them to the relevant special committees for deliberation and, after receiving their opinions, decide whether
or not to put them on the agenda of the session. The Presidium shall also print the report on the disposition of the bills or proposals
approved by the Presidium for distribution at the session. When bills or proposals are deliberated at meetings of the special committees,
their sponsors may be invited to attend the meetings as nonvoting participants to express their opinions.

Bills or proposals that are to be submitted by a group of deputies or a delegation may be submitted before a session of the National
People’s Congress is held.

Article 22 With regard to bills or proposals that have been placed on the agenda of a session, the sponsors, the relevant special
committees of the National People’s Congress and the relevant office of the Standing Committee of the National People’s Congress
shall provide the pertinent information.

Article 23 With regard to bills or proposals that have been placed on the agenda of a session, the sponsors shall submit explanations
to the session. The bills or proposals shall be deliberated by the various delegations and the Presidium may, in the meantime, refer
them to the relevant special committees for deliberation. The result of the deliberations shall then be reported to the Presidium
which may, after its own deliberation, decide to put the bills or proposals to the vote at a plenary meeting of the session.

Article 24 With regard to legislative bills that have been placed on the agenda of a session, after explanations about them
are heard at a plenary meeting, they shall be deliberated by the various delegations and, in the meantime, by the Law Committee
and the relevant special committees.

The Law Committee shall, in the light of opinions expressed during deliberations by the various delegations and the relevant special
committees, conduct unified deliberation on the legislative bills and submit to the Presidium a report on the results of deliberation
and the revised draft laws. The Law Committee shall include major dissenting opinions in the report on the results of deliberation.
The Presidium shall, after deliberation and approval, print it for distribution at the session and also submit the revised legislative
bills to a plenary meeting of the session for the vote.

Reports on the results of deliberation prepared by the relevant special committees shall be promptly printed and distributed at the
session.

The procedure for deliberation and voting on the legislative bills prepared and submitted by a special law-drafting committee
established by decision of the National People’s Congress shall be formulated separately.

Article 25 Before a session of the National People’s Congress is held, the Standing Committee of the National People’s Congress
may publish for extensive comment the major legislative bills for basic laws that are to be submitted to the session
for deliberation, and may print the summarized comments for distribution at the session.

Article 26 During deliberations on bills or proposals or the relevant reports involving specialized problems, the
special committees may invite the relevant deputies and specialists to attend the meeting as nonvoting participants to express
their opinions.

The special committees may decide on the holding of a closed meeting.

Article 27 Deliberation on a bill or proposal already placed on the agenda of a session shall be terminated upon approval by
the Presidium of a request made by the sponsor for its withdrawal before it is put to the vote. Article 28 If important issues
are raised during deliberations on a bill or proposal placed on the agenda of a session and call for further study, upon decision
by a plenary meeting of a session on a proposal made by the Presidium, the Standing Committee of the National People’s Congress
may be authorized to deliberate on it, after which it shall either make a decision and report it to the next session of the
National People’s Congress for the record or refer the bill or proposal to the next session of the National People’s Congress
for deliberation.

Article 29 The proposals, criticisms and opinions put forward by deputies to the National People’s
Congress concerning any sphere of work shall be referred by the office of the Standing Committee of the National People’s Congress
to the relevant organs or organizations, which shall study them, handle them and be responsible to give an answer within
three months of the conclusion of the session or within six months at the latest. If the deputies are not satisfied with
the answer, they may raise their opinions, which shall be referred by the office of the Standing Committee of the National People’s
Congress to the relevant organs or organizations or those at a higher level to be studied and handled anew for a responsible
answer.

Chapter III

Deliberation of Work Reports and Examination of State Plans and Budget

Article 30 When the National People’s Congress is in session each year, resolutions may be adopted at the
session corresponding to the work reports submitted to it by the Standing Committee of the National People’s Congress, the State
Council, the Supreme People’s Court and the Supreme People’s Procuratorate, after deliberation by the various delegations.

Article 31 A month before the holding of a session of the National People’s Congress, the competent departments concerned
under the State Council shall report to the Financial and Economic Committee and the relevant special committees of the National
People’s Congress the main points of the plan for national economic and social development and the basic situation regarding
the implementation of the previous year’s plan as well as the main points of the state budget and the basic situation
regarding the implementation of the previous year’s state budget for preliminary examination by the Financial and Economic
Committee.

Article 32 When the National People’s Congress is in session each year, the State Council shall submit to the session a report
on the plan for national economic and social development and the implementation of the previous year’s plan and a report
on the state budget and the implementation of the previous year’s state budget, and print for distribution at the session,
together with the above reports, the main targets in the national economic and social development plan (draft),
the tables of revenue and expenditure in the state budget (draft) and the tables showing the implementation of the previous
year’s state budget (draft), which shall be examined by the various delegations and also by the Financial and Economic Committee
and the relevant special committees.

The Financial and Economic Committee shall, in the light of the examination reports prepared by the various delegations and the relevant
special committees, examine the report on the plan for national economic and social development and on the implementation
of the previous year’s plan, and the report on the state budget and the implementation of the previous year’s State budget,
and submit to the Presidium a report on the results of its examination. The Presidium shall, after deliberation and approval,
print the report for distribution at the session; the Presidium shall also submit a draft resolution on the plan for national economic
and social development and a draft resolution on the state budget and the implementation of the previous year’s state budget to a
plenary meeting of the session for the vote.

Reports on the results of deliberation prepared by the relevant special committees shall be promptly printed and distributed at the
session.

Article 33 If, in the course of implementation, adjustment must be made to part of the plan for national economic and social development
and the state budget approved by the National People’s Congress, the State Council shall submit the adjusted plan to the Standing
Committee of the National People’s Congress for examination and approval.

Chapter IV

Election, Recall, Appointment, Removal from Office,

and Resignation of Members of State Organs

Article 34 Candidates for the Chairman, Vice-Chairmen, Secretary-General and other members of the Standing Committee
of the National People’s Congress, for the President and Vice-President of the People’s Republic of China, for the Chairman
of the Central Military Commission, for the President of the Supreme People’s Court and the Procurator-General of the Supreme People’s
Procuratorate shall be nominated by the Presidium which shall, after consultation among the various delegations, decide upon a formal
list of candidates based on the opinion of the majority of deputies.

The Premier and other members of the State Council and members of the Central Military Commission other than its Chairman shall be
nominated in accordance with the relevant provisions of the Constitution.

Candidates for the chairman, vice-chairmen and other members of the special committees shall be nominated by the Presidium from among
the deputies.

Article 35 Nominators of candidates shall provide the meeting with basic information on the candidates and make necessary explanations
to questions raised by deputies.

Article 36 At a session of the National People’s Congress, elections shall be conducted and appointments decided by secret
ballot. Candidates shall be elected and decisions adopted by a simple majority vote of all the deputies.

When elections are conducted or proposals for appointment are put to the vote at a plenary meeting of a session, ballot-writing booths
shall be installed.

The outcome of an election or vote shall be announced on the spot by the person presiding over the meeting. The number of votes received
by a candidate shall be announced.

Article 37 Specific measures for elections and decisions on appointment at a session of the National People’s Congress shall
be adopted at a plenary meeting of the session.

Article 38 During a session of the National People’s Congress, if a member of the Standing Committee of the National People’s
Congress, the President or Vice-President of the People’s Republic of China, a member of the State Council, a member of the
Central Military Commission, the President of the Supreme People’s Court or the Procurator-General of the Supreme People’s Procuratorate
tenders his resignation, the Presidium shall first forward the resignation to the delegations for deliberation and then submit it
to a plenary meeting of the session for decision; if a resignation is tendered when the National People’s Congress is
not in session, the Council of Chairmen shall submit the resignation to the Standing Committee of the National People’s Congress
for deliberation and decision. If the Standing Committee of the National People’s Congress accepts the resignation of a member
of the Standing Committee of the National People’s Congress, the President or Vice-President of the People’s Republic of China, the
Premier or a Vice-Premier of the State Council, a State Councilor, the Chairman of the Central Military Commission, the President
of the Supreme People’s Court or the Procurator-General of the Supreme People’s Procuratorate, it shall refer the resignation to
the next session of the National People’s Congress for confirmation.

When the National People’s Congress is not in session, should the office of the Premier of the State Council, the chairman of the
Central Military Commission, the President of the Supreme People’s Court or the Procurator-General of the Supreme People’s Procuratorate
becomes vacant, the Standing Committee of the National People’s Congress shall choose a person to act in his capacity
respectively from among the Vice-Premiers of the State Council, the Vice-Chairmen of the Central Military Commission,
the Vice-Presidents of the Supreme People’s Court or the Deputy Procurators-General of the Supreme People’s Procuratorate.

Article 39 The Presidium, three or more delegations or a group of at least one tenth of the number of deputies to the National
People’s Congress may submit a proposal for removal from office of a member of the Standing Committee of the National People’s
Congress, the President or Vice-President of the People’s Republic of China, a member of the State Council, a member of the
Central Military Commission, the President of the Supreme People’s Court or the Procurator-General of the Supreme People’s Procuratorate.
The Presidium shall refer the proposal to the delegations for deliberation and then put it to the vote at a plenary meeting of the
session; or in accordance with the provisions of Chapter VI of these Rules, an investigation committee shall be organized by decision
of a plenary meeting of the session on a proposal by the Presidium and, on the basis of the report of the investigation
committee, the proposal for removal from office shall be deliberated and decided at the next session of the National People’s Congress.

For a proposal for removal from office, the reasons thereof shall be stated and the relevant information provided.

Before a proposal for removal from office is put to the vote at a plenary meeting of a session, the person proposed to be removed
from office shall have the right to defend himself at a meeting of the Presidium or a plenary meeting of the session, or to present
a written statement in his defence, which shall be printed by the Presidium for distribution at the session.

Article 40 For a member of the Standing Committee or a special committee of the National People’s Congress whose position as
a deputy to the National People’s Congress is recalled by the unit that elected him, the position he holds as a member of the Standing
Committee or a special committee of the National People’s Congress shall be annulled accordingly, which shall be announced by the
Presidium or the Standing Committee of the National People’s Congress.

Chapter V

Inquiries and the Addressing of Questions

Article 41 During deliberations by delegations on a bill or proposal and a relevant report, the department concerned
shall send leading personnel to attend the meeting to listen to comments and answer questions raised by deputies.

During deliberations on the work report of the government and examinations of the report on the plan for national economic and social
development and the implementation of the previous year’s plan, and of the report on the state budget and the implementation of the
previous year’s state budget, at the general meetings of the various delegations, leaders of the State Council and of departments
under the State Council shall respectively attend the meeting, listen to comments and answer inquiries.

During deliberations by the Presidium and by the special committees on a bill or proposal and a relevant report, leaders of the State
Council or the organs concerned shall attend the meeting to listen to comments and answer inquiries and may also make additional
explanations about the bill or proposal and the relevant report.

Article 42 During a session of the National People’s Congress, a delegation or a group of thirty or more deputies may submit
a written proposal for addressing questions to the State Council and departments under the State Council.

Article 43 In the proposals for the addressing of questions, the objects to be questioned and the topics and contents
to be questioned about must be clearly stated.

Article 44 With regard to a proposal for addressing questions, the Presidium shall decide whether to request the head
of the organ questioned to give an oral reply at a meeting of the Presidium, a meeting of the relevant
special committee or a meeting of the relevant delegation, or to refer the questions to the organ concerned for a written reply.
If the reply is to be given at a meeting of the Presidium or of a special committee, the head of the delegation or the deputies
who addressed the questions shall have the right to attend the meeting to express their opinions.

If the delegation or the deputies who submitted the proposal for addressing questions are not satisfied with the reply, they may
raise their request. The organ questioned shall, by decision of the Presidium, give another reply.

If the reply is given at a meeting of a special committee or a delegation, the relevant special committee or delegation shall report
the reply and the related circumstances to the Presidium.

The Presidium may, when it deems it necessary, print for distribution at the session the report on the reply to the proposal
for addressing questions and the related circumstances.

If the reply is given in written form, it shall be signed by the head of the organ questioned and shall, by decision of the
Presidium, be printed for distribution at the session.

Chapter VI

Investigation Committees

Article 45 The National People’s Congress may, when it deems it necessary, appoint committees for the investigation of specific
questions.

Article 46 The Presidium, three or more delegations or a group of one tenth or more of the number of deputies
may put forward a proposal for appointing committees for the investigation of specific questions. The proposal shall be submitted
by the Presidium to a plenary meeting of the session for decision.

An investigation committee shall be composed of a chairman and a certain number of vice-chairmen and members, who shall be nominated
by the Presidium from among the deputies and approved by a plenary meeting of the session. An investigation committee may invite
specialists to participate in its investigations.

Article 47 When an investigation committee conducts investigations, all state organs, public organizations and citizens concerned
shall be obliged to truthfully furnish the necessary information. If the citizens who furnish the information request
the investigation committee to keep the sources of information confidential, the investigation committee shall keep them confidential.

The investigation committee may, in the course of its investigation, choose not to make public the information or materials obtained
through investigation.

Article 48 An investigation committee shall submit an investigation report to the National People’s Congress. The National
People’s Congress may adopt appropriate resolutions based on the report of the investigation committee.

The Standing Committee of the National People’s Congress may be authorized by the National People’s Congress to hear the investigation
report of an investigation committee and adopt appropriate resolutions, when the National People’s Congress is not in session, and
shall report to the next session of the National People’s Congress for the record.

Chapter VII

Speaking and Voting

Article 49 Deputies to the National People’s Congress shall not be held legally liable for their speeches or votes at various
meetings of the National People’s Congress.

Article 50 A deputy who is to speak at a plenary meeting of a session may speak twice, with the first speech not exceeding
ten minutes and the second speech not exceeding five minutes.

A deputy who asks to speak at a plenary meeting of a session shall sign up at the Secretar

ADMINISTRATIVE MEASURES FOR RECEPTION OF TELEVISION PROGRAMMES TRANSMITTED VIA FOREIGN SATELLITES BY GROUND SATELLITE RECEIVING FACILITIES

Administrative Measures For Reception of Television Programmes Transmitted Via Foreign Satellites by Ground Satellite Receiving Facilities

(Effective Date:1990.05.28–Ineffective Date:)

Article 1. These Measures are formulated for the propose of strengthening the administration of reception of television programmes transmitted
via foreign satellites by ground satellite receiving facilities, safeguarding the economic, technological and cultural exchanges
with foreign countries and promoting the construction of socialist material civilization and spiritual civilization.

Article 2. The term “reception of television programmes transmitted via foreign satellites by ground satellite receiving facilities” as used
in these Measures refers to the reception by units of foreign-satellite-transmitted television programmes that are directly related
to the work or business operations of these units by utilizing their existing ground satellite receiving facilities or installing
special ground satellite receiving facilities.

Article 3. The Ministry of Radio, Film and Television shall be in charge of the administration of reception of the television programmes transmitted
via foreign satellites by ground satellite receiving facilities throughout China.

The departments (or bureaus) of radio and television of the provinces, autonomous regions and municipalities directly under the Central
Government shall be in charge of reception of the administration of the television programmes transmitted via foreign satellites
by ground satellite receiving facilities in their respective administrative areas.

Article 4. Units of education, scientific research, journalism, finance, and economic relations and trade and other units that are really necessitated
by the needs of work may, in accordance with the provisions of these Procedures, apply to utilize their existing ground satellite
receiving facilities or install special ground satellite receiving facilities to receive television programmes transmitted via foreign
satellites.

Guest houses (or hotels) and apartments which permanently accommodate foreigners may, on condition that it is really necessary for
them to provide economic information services concerning international financial and marketing situation, apply to install special
ground satellite receiving facilities to receive television programmes transmitted via foreign satellites in accordance with these
Procedures.

Services with respect to the installation and maintenance of ground satellite receiving facilities for receiving television programmes
transmitted via foreign satellites shall be organized and provided by Chinese departments of radio and television.

Article 5. A unit that applies to utilize its existing ground satellite receiving facilities or install special ground satellite receiving facilities
to receive television programmes transmitted via foreign satellites shall satisfy the following requirements:

(1) The work or business operations of the applying unit demands reception of television programmes transmitted via foreign satellites;

(2) The direction of reception, the content thereof and the scope of eligible viewers have been definitely specified;

(3) The applying unit possesses the technology and equipment that measure up to the standard of the state;

(4) The applying unit possesses qualified professional personnel for the administration of such programmes; and

(5) There is a sound system of administration in the applying unit.

Article 6. A unit that intends to utilize its existing ground satellite receiving facilities or install special ground satellite receiving facilities
to receive television programmes transmitted via foreign satellites shall apply in writing to the competent department at or above
the provincial level. If consent is granted thereto upon examination, the applying unit shall proceed to submit the application for
examination and approval to the department (or bureau) of Radio and television of the province, autonomous region or municipality
directly under the Central Government where the applying unit is located. Upon approval by the department (or bureau) of radio and
television, a permit to receive television programmes transmitted via foreign satellites( hereinafter referred to as “permit”) shall
be issued to the applying unit and the case shall be reported by the examining and approving authorities to the Ministry of Radio,
Film and Television, the Ministry of Public Security and the Ministry of State Security for the record.

Article 7. Without holding a Permit, no unit already in possession of ground satellite receiving facilities may receive television programmes
transmitted via foreign satellites, no other units may, without holding a permit, install ground satellite receiving facilities to
receive television programmes transmitted via foreign satellites.

Article 8. A unit holding a permit shall, in receiving and making use of foreign television programmes, strictly comply with the requirements
specified in the Permit as to the purpose of reception, the content, directions and modes thereof and the scope of eligible viewers.

No permit may be tampered with the transferred. If changes in the work or business operations require alterations in the provisions
of the permit or make it no longer necessary to receive television programmes transmitted via foreign satellites, the unit concerned
shall submit in good time to the examining and approving authorities a request for the issuance of new permit or for the cancellation
of the Permit already issued and the examining and approving authorities shall report the case to the authorities concerned for the
record in accordance with the provision of the Article 6 of these Measures.

Article 9. A unit holding a Permit may use the television programmes received from transmission via foreign satellites only in the work or business
operations of the unit itself and, unless otherwise approved by the leadership of the unit, no television programmes received from
transmission via foreign satellites may be recorded. It shall be strictly forbidden to replay the television programmes received
from transmission via foreign satellites at any domestic television stations, closed-circuit television stations or video-tape projection
centres or to transmit them by any other means.

The catalogue of the audio-visual materials recorded upon approval shall be submitted regularly for the records to the departments
of radio and television, public security and state security in the locality where the unit is situated.

The recorded audio-visual materials seal be placed for strict safekeeping by a specially appointed person.

Article 10. Departments of radio and television, public security and state security shall be responsible for exercising supervision and inspection
over the administration of the reception of television programmes transmitted via foreign satellites by ground satellite receiving
facilities and shall have the right to stop any acts of violation of these Procedures in receiving, recording or transmitting television
programmes transmitted via foreign satellites.

Article 11. If any unit violates the provisions in Articles 8 and 9 of these Measures, the department (or bureau) of the province, autonomous
region or municipality directly under the Central Government shall, in conjunction with the Department (or bureau) of Public Security
and the Department (Bureau) of State Security at the same level and in accordance with the seriousness of the ease, give such penalties
as issuing a warning, imposing a fine of not more than Renminbi 20,000 yuan or , in an extreme case, revoking the Permit. Where the
Permit is revoked, the ground satellite receiving facilities may also be confiscated concurrently. The department (or Bureau) of
Radio and television, the department (of bureau) of public security and the department (or bureau) of state-security of the Province,
autonomous region or municipality directly under the central Government may suggest to the competent department concerned that administrative
sanctions be imposed on the unit’s leading personnel in charge of the work and other persons directly responsible. If the violation
is so serious as to constitute a crime, criminal liability shall be investigated by the judicial department in accordance with the
law.

Article 12. If, in violation of the provision in Article 7 of these Measures, any unit without holding a permit installs ground satellite receiving
facilities or receives television programmes transmitted via foreign satellites without authorization, the department (or bureau)
of radio and television may, in conjunction with the department (or bureau) of public security and the department (or bureau) of
state security at the same level, confiscate the ground satellite receiving facilities, with an additional imposition of fine of
not more than Renminbi 50,000 yuan, and may suggest to the competent department concerned to impose administrative sanctions on the
unit’s leading personnel in charge of the work and other persons directly responsible. Those who have recorded the programmes or
disseminated them without authorization, if the circumstances are so serious as to constitute a crime, they shall be investigated
for criminal liability by the judicial department in accordance with the law.

Article 13. Any party who is not satisfied with the penalty of a fine or of the revocation of the permit may, within 15 days of receipt of the
decision on penalty, apply to the people’s government at the same level for reconsideration or may file a suit with the people’s
court. Any party who is not satisfied with the result of the administrative reconsideration may, within 15 days of receipt of the
decision of reconsideration, file a suit with the people’s court. If no application for reconsideration is submitted or no suit is
filed within the prescribed period, the penalty of revoking the permit shall go into effect. If no application for reconsideration
is submitted or no suit is filed within the prescribed period and yet the fine imposed is not turned in, the authorities that have
made the decision on penalty shall apply to the people’s court for compulsory execution.

Article 14. With respect to reception of television programmes transmitted via foreign satellites by units of the armed forces and the departments
of public security and state security utilizing their existing ground satellite receiving facilities or installing special ground
satellite receiving facilities as are necessitated by national defence and public security and state security, the Headquarters of
the General Staff of the Chinese People’s Liberation Army, the Ministry of Public Security and the Ministry of State Security shall
respectively formulate measures for the administration thereof.

If foreign embassies (or consulates) stationed in China and other institutions which enjoy diplomatic privileges and immunities intend
to install ground satellite receiving facilities to receive television programmes transmitted via foreign satellites, they shall
handle the matter through diplomatic channels.

Article 15. The Ministry of Radio, Film and Television shall be responsible for the interpretation of these Measures.

Article 16. These Measures shall go into effect as of the date of promulgation.

REGULATIONS FOR SUPERVISING INTERNATIONAL-SHIPPING-AGENCY SERVICES

Regulations for Supervising International-Shipping-Agency Services

(Effective Date:1990.03.02–Ineffective Date:)

Article 1 The present Regulations are to strengthen supervision of international-shipping-agency services and meet the Country’s foreign economic
relations development needs and international-shipping-industry requirements.

Article 2 The present regulations are applicable to agency services vessels for international navigation.

Article 3 The Ministry of Communications of the People’s Republic of China (hereinafter referred to as the Ministry of Communications) is the
State organization for supervising shipping-agency services.

Article 4 Only shipping agencies established with the approval of the Ministry of Communications are permitted to handle shipping-agency services.
The shipping agencies must be legal persons of State enterprises of the People’s Republic of China. The number of shipping agencies
permitted in each harbor shall be determined by the Ministry of Communications in the light of actual needs arising from the harbor’s
business.

Article 5 A shipping agency shall meet the following requirements before it can be established:

(1) It operates on its own and is able to bear civil responsibility independently;

(2) Its legal representative has professional knowledge and capable of handling experience in international-maritime-shipping-agency
services;

(3) It has essential full-time personnel in business, Customs declaration, finance, foreign languages and other disciplines;

(4) It is familiar with China’s laws, regulations and requirements concerning vessels for international navigation and is able to
urge and help vessels using its agency service to observe and implement them conscientiously;

(5) It has articles of association, permanent organization, work place and necessary transport and telecommunication facilities;

(6) It has funds for its business operations.

Article 6 An application for permission to establish a shipping agency shall be submitted in written form to the organization in charge of
communications in the locality where the agency is to be situated.

The application shall include the following items:

(1) The agency’s name (including its English translation), detailed address (in both Chinese and English), telephone, cable and telex
numbers, and post-code;

(2) Its projected business items;

(3) A certificate of its registered capital and the capital it actually has or guarantee fund;

(4) The name, age, profession, detailed experience and address of its legal representative;

(5) The agency’s articles of association, organizational structure and disposition of professional personnel.

Article 7 The application for permission to establish a shipping agency- after being checked by the departments in charge of communications
in the locality where the agency is to be situated and the province (municipality, autonomous region) concerned-shall be submitted
to the Ministry of Communications for examination and approval. The Ministry of Communications will decide to approve or disapprove
the application after examining it in the light of the actual need and the requirements of the present Regulations.

If the application is approved, the applicant shall take alone the Ministry of Communications’ document of approval and register with
the Administration for Industry and Commerce in the locality where the agency is situated and obtain its license before it can start
operations. After starting operations, it shall submit, within 15 days, photocopies of its license to the Ministry of Communications
and the departments in charge of communications in the locality where the agency is situated and in the province concerned for the
record.

Article 8 The Ministry of Communications may determine the scope of business of the shipping agency in the light of its scale, capital, capability,
conditions and relevant regulations.

Within the scope of business approved by the Ministry of Communications, the shipping agency may handle part or all of the following
agency operations at the request of a shipping company;

(1) Making contacts and arranging for the entry into or exit from a harbor, locking and loading or unloading of ships;

(2) Making customs declarations for ships, cargoes and containers;

(3) Handling consignment, transshipment and combined-through- transportation of cargoes and containers;

(4) Signing bills of lading, transport contracts and agreement for rapid ship dispatch or holdup of ships;

(5) Handling international-passenger shipping;

(6) Organizing freight and ordering shipping space for cargo owners;

(7) Arranging for rescue and salvage at sea and undertaking maritime and admiralty affairs;

(8) Acting as an agent in paying and collecting money and settling accounts;

(9) Handling other items of shipping agency and service.

Article 9 When a shipping agency, which has started operations, wants to expand or change its business scope, it shall go through the formalities
of examination and approval provided for in Articles 6, 7 and 8.

Article 10 A shipping agency shall carry out its operations on the following principles;

(1) Observing the country’s principles, policies, laws and administrative codes and regulations, safeguarding national rights and
interests and guarding State secrets;

(2) Fulfilling its responsibilities in line with the entrustment, safeguarding the mandator’s legitimate rights and interests, and
performing the committed obligations;

(3) Directing the shipping company, vessels and crew members it represents to observe relevant Chinese laws and regulations and assisting
the authorities in charge in handling matters such as violation of laws and regulations by the shipping company, vessels and crew
members;

(4) Refraining from cheating in any form and illegal competition by use of improper methods or at the cost of national interests.

Article 11 A shipping company enjoys complete independence in selecting its shipping agency and no institution or individual shall interfere
in any way. No parties concerned must include provisions to restrict the shipping company’s freedom of choosing its shipping agency
in the relevant contract.

Article 12 A shipping agency must abide by the standard rates or fees or charges set by the Ministry of Communication for all to follow and
must not pay sales commission openly or in disguised form.

Article 13 Shipping agencies designated by the Ministry of Communications shall provide agency service for the following vessels;

(1) Foreign military vessels;

(2) Ships for training and scientific investigation;

(3) Passenger ships (including tour ships) and private yachts;

(4) Engineering ships and their support vessels;

(5) Other types of vessels for which shipping agencies shall be designated.

Article 14 All shipping agencies shall report to the Ministry of Communications their business operations in the first six months of a year
and the entire year by the end of July and the end of the following February respectively. They shall send copies of the report to
the organizations in charge of communications in the localities where they are situated and to the same organizations in the relevant
provinces, municipalities directly under the central authorities and autonomous regions. The content of the reports shall include:

(1) Profits or losses in revenue and expenditure;

(2) A list of the shipping companies and vessels each agency represents, arranged in the order of their nationalities, and the total
number of vessels represented (each time a ship is represented shall be counted as one vessel);

(3) Statistics of the flow of import and export commodities carried by the vessels represented and separate lists of the amounts of
cargo transported by ships sent by the Chinese side and by ship sent by the other side;

(4) Other matters to be reported at the request of the Ministry of Communications.

Article 15 The Ministry of Communications and local organizations in charge of communications authorized by it are enpost_titled to check on the
business operations of the shipping agencis. The agencies under investigation must truthfully report their state of affairs and provide
relevant information.

Article 16 When shipping agencies violate the present Regulations, the Ministry of Communications and local organizations in charge of communications
authorized by it may, on the merit of the cases, mete out to them the following penalties:

(1) Warning;

(2) Circulating a notice of criticism;

(3) Fine;

(4) Ordering the offender to suspend operations and straighten itself out;

(5) Cancelling its approved qualifications for business operations.

Article 17 Companies approved to handle shipping agency business before the present Regulations are promulgated shall, within three months after
they come into force, go through the formalities of applying to the Ministry of Communications for approval retrospectively in line
with the requirements of Article 5 and 6 of the present Regulations. Those shipping agencies which fail to go through the formalities
within the time limits shall be disqualified.

Article 18 The Ministry of Communications is responsible for interpreting the present Regulations.

Article 19 The present Regulations shall come into force as of April 1, 1990.

CIRCULAR OF THE STATE COUNCIL CONCERNING THE QUARANTINE CONTROL SYSTEM FOR ANIMAL PRODUCTS LEAVING CHINA FOR TRADE PURPOSE

Category	AGRICULTURE, FORESTRY AND METEOROLOGY	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1991-11-15	Effective Date	1991-11-15

Circular of the State Council Concerning the Quarantine Control System for Animal Products Leaving China for Trade Purpose

(November 15, 1991)

The “Law of the People’s Republic of China on the Entry and Exit Animal
and Plant Quarantine” has already adopted at the 22nd Meeting of the Standing
Committee of the Seventh National People’s Congress, and shall enter into
force as of April 1, 1992. Article 3 of the Law stipulates: “The organ in
charge of the quarantine of animal products leaving China for trade purpose
shall be designated by the State Council as it deems appropriate.” The State
Council maintains that, from a long-term point of view, it is more appropriate
for the agricultural department to exercise a unified administration over the
quarantine of animal products leaving China for trade purpose, but this cannot
do without a process. The State Council has, therefore, decided that the
quarantine work of animal products leaving China for trade purpose shall
continue to be undertaken by the State’s department of commodity inspection.

MEASURES OF THE GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPL’S REPUBLIC OF CHINA ON ADMINISTRATION OF THE BOND OF MATERIALS IMPORTED BY MATERIALS CORPORATIONS FOR ENTERPRISES WITH FOREIGN INVESTMENT

The General Administration of Customs

Measures of the General Administration of Customs of the Peopl’s Republic of China on Administration of the Bond of Materials Imported
by Materials Corporations for Enterprises with Foreign Investment

the General Administration of Customs

March 5, 1991

Article 1

In accordance with “The Customs Law of the People’s Republic of China” and in order to improve materials supply to the enterprises
with foreign investment and to strengthen Customs control, the measures hereof are formulated.

Article 2

The Measures are applicable to the materials corporations supply to enterprises with foreign investment (hereinafter referred to as
materials corporations) that are given the right to manage the bonded cargos listed in Article 5 of the regulations upon approval
by the government department in-charge.

Article 3

The materials corporations shall go through procedures of registration for the record after presenting to the local Customs Office
the documents of approval issued by the government departments in-charge and business licences issued by the industrial and commercial
administrations.

Article 4

The materials corporations shall present to the local Customs Office and a duplicate copy to the General Administration of Customs
a list of the annual plan for imports approved by the government departments in-charge as well the import quotas and the major commodities
for the materials corporations.

Article 5

The Customs shall exercise supervision and control over the bonded materials including raw materials, knock-down parts, parts and
components, elements and devices, fittings, auxiliary materials and fuel which are in short supply in the home market and have to
be imported to meet the needs of enterprises with foreign investment.

When the above-said bonded cargos are imported, they shall be declared at the Customs office upon presenting import contracts, Customs
Declaration of Import Goods and other related declarations and certificates for deferring payment of Customs duties. The bonded cargos
shall be kept in the public bonded storehouses approved by the Customs or the bonded storehouses under the management of the materials
corporations themselves. The Customs shall oversee and control the bonded cargos in accordance with “The Customs Law of the People’s
Republic of China” and “The Measures of the Customs of the People’s Republic of China on Administration of Bonded Storehouses and
Cargos.”

Article 6

Domestically-produced cargos which are supplied to enterprises with foreign investment shall not be allowed to be stored in the bonded
storehouses.

Article 7

When the enterprises with foreign investment purchase the imported cargos stored in the bonded storehouses from the materials corporations,
they shall go through declaration formalities according to provisions on inbound import cargos. Import licences shall be presented
to the Customs for examination in case the cargos are subject to import licences. The enterprises with foreign investment are exempted
from presenting import licences when they purchase the above-said cargos, in case the materials corporations have already delivered
the import licences to the Customs for examination in accordance with the rules and regulations.

If the above-said cargos are materials or parts needed for the execution of contracts on export products, the related enterprises
shall submit to the Customs for examination export contracts, order contracts signed between the enterprises and the materials corporations,
“the Registration Manual” verified and issued by the Customs and triple copy of “the Form of Approval for Material Supply to the
Enterprises with Foreign Investment by Materials Corporations” filled in and signed by the materials corporations. One copy of the
form of approval shall be signed by the Customs and given to the materials corporation for handling delivery of the cargos and completing
the verifying and writing-off formalities; another copy is for the enterprises with foreign investment; and another copy is for the
Customs to place on file to follow verifying and writing-off procedures.

Article 8

Enterprises with foreign investment that are enpost_titled to tax reduction or exemption in their import cargos may also enjoy tax reduction
or exemption when they purchase the same kind of cargos from the material corporations. Those that are not enpost_titled to tax reduction
and exemption shall pay Customs duties and the industrial and commercial consolidated tax for the import link according to the rules
and regulations.

Article 9

The duration is one year for the materials corporations to keep the imported cargos in the bonded store-houses. The corporations may
apply to the Customs for extending the duration in special conditions. But the extension of the duration shall not exceed one year.

The cargos that are beyond the bond timelimit or are surplus to the requirements of enterprises with foreign investment shall be shipped
back out of Chinese territory. The bonded cargos that fail to be shipped back out of the territory beyond the timelimit shall be
handled by the Customs in accordance with Article 21 of “The Customs Law of the People’s Republic of China.”

Article 10

The bonded cargos imported by the materials corporations shall not be sold or transferred to domestic enterprises without approval
by the Customs and the competent economic and trade departments and shall not be exchanged with domestic cargos for use.

Article 11

Any act in violation of those Measures shall be dealt with by the Customs according to the relevant provisions of “The Customs Law
of the People’s Republic of China.”

Article 12

Customs control over the bonded means of production imported by the Shenzhen Special Economic Zone shall be exercised in accordance
with “Provisions on Administration of the Market of Bonded Means of Production in the Shenzhen Special Economic Zone.”

Article 13

The power to interpret the Measures rests with the General Administration of Customs.

Article 14

The Measures shall enter into force on April 1, 1991.

The General Administration of Customs
1991-03-05

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE REVISION OF ARTICLE 30 AND ARTICLE 31 OF THE THE PROTECTION OF CULTURAL RELICS

Category	CULTURE	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	In Force
Date of Promulgation	1991-06-29	Effective Date	1991-06-29

Decision of the Standing Committee of the National People’s Congress Regarding the Revision of Article 30 and Article 31 of the Law of the People’s Republic of China on the Protection of Cultural Relics

Appendix: Article 30 and Article 31 of the Law of the People’s Republic

(Adopted at the 20th Meeting of the Standing Committee of the Seventh

National People’s Congress on June 29, 1991, promulgated by Order No. 47 of
the President of the People’s Republic of China on June 29, 1991, and
effective as of the date of promulgation)

The 20th Meeting of the Standing Committee of the Seventh National
People’s Congress, having considered the proposal submitted by the State
Council regarding the Draft Amendment to the Law of the People’s Republic of
China on the Protection of Cultural Relics, decides to make the following
revisions of Article 30 and Article 31 of the Law of the People’s Republic of
China on the Protection of Cultural Relics:

1. The following five items are added to the acts to which administrative
sanctions shall be applicable as provided in Article 30:

(1) scrawling upon, defiling or mutilating cultural relics under State
protection in not serious manners, or damaging or destroying signs put up in
accordance with the provisions of Article 9 of this Law for places to be
protected as cultural relics, for which the persons involved shall be fined
or instructed to compensate for the losses thus incurred by the public
security department or by the units to which the cultural relics belong;

(2) undertaking construction projects within the scope of protection for
a historical and cultural site, in contravention of the provisions of Article
11 of this Law, or constructing buildings or other structures within the area
delimited for the control of construction around a site to be protected for
its historical and cultural value, in contravention of the provisions of
Article 12 of this Law, for which the persons involved shall be instructed by
the departments for urban and rural planning, or by the said departments as
suggested by the departments for cultural administration, to stop the
construction and dismantle the buildings or other structures illegally
constructed, or, shall be fined;

(3) carrying out such activities as demolition or excavation in the
vicinity of sites to be protected for their historical and cultural value,
thus endangering the safety of the cultural relics, for which the persons
involved shall be stopped from continuing such activities by the public
security department or by the said department as suggested by the departments
for cultural administration, and may concurrently be fined;

(4) dealing, by agencies of cultural relics, in any cultural relics, the
buying or selling of which is not permitted by the departments for cultural
administration, for which the agencies involved shall, after examination and
verification by the administrative departments for industry and commerce in
conjunction with the departments for cultural administration, have their
illegal earnings confiscated by the administrative departments for industry
and commerce, and may concurrently be fined or shall have the cultural relics
illegally handled confiscated;

(5) selling or presenting as gifts without permission any cultural relics
in their collection by museums, libraries or like institutions under public
ownership to other museums, libraries and like institutions under public
ownership, for which, the institutions involved shall be instructed by the
departments for cultural administration to recover the cultural relics sold
or presented as gifts and shall have the illegal earnings derived therefrom
confiscated or shall be fined; and the persons in charge and the persons
directly responsible shall be given administrative sanctions by the units to
which they belong or their higher authorities.

Item (2) of Article 30 which reads: “buying or selling cultural relics
without the approval of the departments for cultural administration, for
which the persons involved shall be warned or fined by the departments for
the administration of industry and commerce, and their illegal earnings and
the cultural relics illegally handled by them may be confiscated,” is amended
to read: “buying or selling cultural relics without the approval of the
departments for cultural administration, for which, the persons involved
shall have their illegal earnings derived therefrom and the cultural relics
illegally handled confiscated by the administrative departments for industry
and commerce on their own or as suggested by the departments for cultural
administration, and may concurrently be fined.”

A new paragraph is added to Article 30 as its second paragraph which
reads: “Anyone who is not satisfied with the administrative sanctions made in
accordance with the provisions of the preceding paragraph may apply for
reconsideration or bring a lawsuit according to law.”

2. The following provisions are added to Article 31: (1) “selling or
presenting as gifts without permission any cultural relics in their
collection by museums, libraries or like institutions under public ownership
to any institution not under public ownership or to any individual, for which
the persons in charge and the persons directly responsible shall be
investigated for criminal responsibility by applying mutatis mutandis the
provisions of Article 187 of the Criminal Law;” (2) “functionaries of the
State who, by abusing their power, illegally appropriate any cultural relics
under State protection shall be deemed as embezzlers and punished as such;
those who have caused serious damage or losses to valuable cultural relics
shall be investigated for criminal responsibility by applying mutatis
mutandis the provisions of Article 187 of the Criminal Law.”

The provisions of the first paragraph of Article 31 regarding the
investigation for criminal responsibility according to law is amended to
read: (1) the wording “smuggling valuable relics out of the country” in
Item (2) is amended to read: “smuggling cultural relics, the export of which
is prohibited by the State;” (2) a new item is added, which reads:
“excavating and robbing sites of ancient culture or ancient tombs.”

The second paragraph of Article 31, which reads: “those who excavate
sites of ancient culture or ancient tombs without permission are punishable
for larceny”, is deleted.

The third paragraph of Article 31, which reads: “those who sell valuable
cultural relics in private collections to foreigners without permission are
punishable for smuggling valuable cultural relics out of the country,” is
amended to read: “Any organization or individual who, without permission,
sells or presents as a gift to a foreigner any valuable cultural relics in
its, his or her collection, the export of which is prohibited by the State,
shall be deemed as smuggler and punished as such.”

This Decision shall take effect as of the date of its promulgation.

Article 30 and Article 31 of the Law of the People’s Republic of China on
the Protection of Cultural Relics shall be republished after being
correspondingly amended according to this Decision.
Appendix: Article 30 and Article 31 of the Law of the People’s Republic
of China on the Protection of Cultural Relics

(Amended according to the Decision Regarding the Revision of Article 30
and Article 31 of the Law of the People’s Republic of China on the Protection
of Cultural Relics adopted at the 20th Meeting of the Standing Committee of
the Seventh National People’s Congress on June 29, 1991)

Article 30 Administrative sanctions shall be applied to those who have
committed any of the following acts:

(2) hiding cultural relics discovered underground, in inland waters, in
territorial seas or in other places and failing to report and deliver them to
the State,for which the persons involved shall be warned or fined by the
public security department and the cultural relics illegally acquired by them
shall be recovered;

(3) undertaking construction projects within the scope of protection for
a historical and cultural site, in contravention of the provisions of
Article 11 of this Law, or constructing buildings or other structures within
the area delimited for the control of construction around a site to be
protected for its historical and cultural value, in contravention of the
provisions of Article 12 of this Law, for which the persons involved shall
be instructed by the departments for urban or rural planning on their own, or
by the said departments as suggested by the departments for cultural
administration, to stop the construction and dismantle the buildings or other
structures illegally constructed, or, shall be fined;

(4) carrying out such activities as demolition or excavation in the
vicinity of sites to be protected for their historical and cultural value,
thus endangering the safety of the cultural relics, for which the persons
involved shall be stopped from continuing such activities by the public
security department or by the said department as suggested by the departments
for cultural administration, and may concurrently be fined;

(5) buying or selling cultural relics without the approval of the
departments for cultural administration, for which, the persons involved
shall have their illegal earnings derived therefrom and the cultural relics
illegally handled confiscated by the administrative departments for industry
and commerce on their own or as suggested by the departments for cultural
administration, and may concurrently be fined;

(6) dealing, by agencies of cultural relics, in any cultural relics, the
buying or selling of which is not permitted by the departments for cultural
administration, for which the agencies involved shall, after examination and
verification by the administrative departments for industry and commerce in
conjunction with the departments for cultural administration, have their
illegal earnings confiscated by the administrative departments for industry
and commerce, and may concurrently be fined or shall have the cultural relics
illegally handled confiscated;

(7) selling cultural relics in private collections to foreigners without
permission, for which the persons involved shall be fined by the
administrative departments for industry and commerce, and the cultural relics
in question and the illegal earnings derived therefrom may also be
confiscated;

(8) selling or presenting as gifts without permission any cultural relics
in their collection by museums, libraries or like institutions under public
ownership to other museums, libraries and like institutions under public
ownership, for which, the institutions involved shall be instructed by the
departments for cultural administration to recover the cultural relics sold
or presented as gifts and shall have the illegal earnings derived therefrom
confiscated or shall be fined; and the persons in charge and the persons
directly responsible shall be given administrative sanctions by the units to
which they belong or their higher authorities.

Anyone who is not satisfied with the administrative sanctions made in
accordance with the provisions of the preceding paragraph may apply for
reconsideration or bring a lawsuit according to law.

Article 31 Persons who commit any of the following acts shall be
investigated for criminal responsibility according to law:

(1) misappropriating or stealing cultural relics of the State;

(2) smuggling cultural relics, the export of which is prohibited by the
State, or serious cases of speculation in cultural relics;

(3) wilful damage of valuable cultural relics or places of cultural and
historical interest under State protection;

(4) excavating and robbing sites of ancient culture or ancient tombs; or

(5) damage of, or losses to valuable cultural relics caused by the
dereliction of duty on the part of State functionaries.

Selling or presenting as gifts without permission any cultural relics in
their collection by museums, libraries or like institutions under public
ownership to any institution not under public ownership or to any individual,
for which the persons in charge and the persons directly responsible shall
be investigated for criminal responsibility by applying mutatis mutandis the
provisions of Article 187 of the Criminal Law.

State functionaries who, by abusing their power, illegally appropriate
any cultural relics under State protection shall be deemed as embezzlers and
punished as such; those who have caused serious damage of or losses to
valuable cultural relics shall be investigated for criminal responsibility by
applying mutatis mutandis the provisions of Article 187 of the Criminal Law.

Any organization or individual who, without permission, sells or presents
as a gift to a foreigner any valuable cultural relics in its, his or her
collection, the export of which is prohibited by the State, shall be deemed
as smuggler and punished as such.

Personnel in charge of cultural relics who steal cultural relics placed
under their care shall be given heavier punishment according to law.

CIRCULAR OF THE STATE COUNCIL CONCERNING THE FURTHER OPENING UP OF HEIHE CITY AND THREE OTHER FRONTIER CITIES

Category	SPECIAL ECONOMIC ZONES AND COASTAL ECONOMIC DEVELOPMENT ZONES	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1992-03-09	Effective Date	1992-03-09

Circular of the State Council Concerning the Further Opening up of Heihe City and Three Other Frontier Cities

(March 9, 1992)

The State Council has decided to further open to the outside world the
following four frontier cities: Heihe City and Suifenhe City in Heilongjiang
Province, Hunchun City in Jilin Province and Manzhouli City in the Inner
Mongolia Autonomous Region.

After the further opening of the aforesaid four frontier cities, they are
expected to expand actively frontier trade and local trade with Russia and
other countries in the Commonwealth of Independent States; to develop economic
cooperation in various forms such as investment cooperation, technical
exchange, service cooperation and so on; and to make reasonable use of local
advantages to develop manufacturing industries and tertiary industries so as
to promote the prosperity and stability of frontier areas.

The four frontier cities shall carry out following policies:

1. With respect to the frontier trades and foreign economic cooperation,
the aforesaid four cities shall implement the “Suggestions Concerning the
Vigorous Development of Frontier Trades and Economic Cooperation for Promoting
the Prosperity and Stability of Frontier Areas” which was approved by the
State Council in 1991, and other related stipulations of the state. The
provinces and the autonomous region may, within the limits of their own
authorities, vest the people’s governments of those four cities with certain
authority in administering frontier trade and economic cooperation. Within
these delegated authorities, contracts including frontier trade, manufacturing
and service cooperation and so on, may be examined and approved by these four
cities themselves. The four cities may establish, after being ratified by the
Ministry of Foreign Trade and Economic Cooperation, one or two more frontier
trade companies at the city level.

2. Encouraging the development of manufacturing trade and foreign
exchange-making agriculture. During the Eighth Five-Year Plan period, import
custom duties and product taxes (or value-added taxes) shall be exempted for
seeds, seed plants, feed and other related technical equipment imported for
developing export-oriented agricultural products, as well as for machinery and
other goods and materials imported by enterprises for manufacturing
export-oriented products or for technical improvement.

3. The four cities shall actively absorb domestic and foreign investments
so as to accelerate economic development. At present, the first stage is to
lay stress on absorbing investments from the Commonwealth of Independent
States and those from domestic enterprises so as to promote the development of
export trade; and is meanwhile to actively create favorable conditions to
expand the absorption of foreign investment from other countries or areas. The
people’s governments of the related provinces and autonomous region may
extend, within the limit of their respective authority, the limits of power
vested in the people’s governments of the four cities for examining and
approving foreign investment programs. After being approved by local tax
authorities, the enterprise income tax may be levied at the reduced rate of 24
percent for foreign-invested enterprises.

The investors from the Commonwealth of Independent States are permitted to
include within their total investment value capital goods and other goods or
equipment as contributing investments. These goods may be sold in accordance
with the frontier trade bartering stipulations and shall be granted a 50
percent reduction in import custom duties and consolidated industrial and
commercial tax.

4. The aforesaid four cities may set aside certain areas within the
administrative region of each city so as to set up frontier economic
cooperation zones. With the intent of attracting investment from inland
enterprises, each city may establish manufacturing enterprises and relevant
tertiary industries, whose products are to be exported to countries within the
Commonwealth of Independent States. The specific limits of the frontier
economic cooperation zones shall be examined and decided by the Office for
Specific Economic Zones under the State Council in conjunction with other
departments concerned.

5. Those industrial enterprises in the frontier economic cooperation zones
which have a cooperation agreement with other domestic industrial enterprises
and which have a production capacity and export figures over certain amounts,
may be granted licenses for engaging in import from and export to the
Commonwealth of Independent States after the approval by the Ministry of
Foreign Trade and Economic Cooperation. The specific standards of permitted
import and export amounts shall be decided by the Ministry of Foreign Trade
and Economic Cooperation after a study. Enterprise income tax for the
aforesaid enterprises shall be levied at a reduced rate of 24 percent locally.
Investors in the aforesaid enterprises who bring their share of profits back
to other inland regions, shall have 9 percent more income tax collected by the
tax authorities of those inland regions. The investment direction adjustment
tax shall be exempted within the period of the Eighth Five-Year Plan of the
national economy.

6. Goods which are obtained by the aforesaid enterprises and the
foreign-invested enterprises located in the frontier economic cooperation
zones through barter trade with countries in the Commonwealth of Independent
States may be sold without authorization, and a 50 percent reduction of
customs duties and consolidated industrial and commercial taxes shall be
granted at the time of their importation. As to those commodities whose
imports are limited by the State, the enterprises shall go through the
examination and approval procedures in accordance with related stipulations by
the State.

7. With respect to machinery, equipment and other construction goods which
must be imported for the construction of the necessary infrastructure within
the frontier economic cooperation zones, import customs duties and product
taxes (or value-added taxes) may be exempted. Within the period of the Eighth
Five-Year Plan, the newly increased fiscal revenue in the frontier economic
cooperation zones may be left with the localities and used for the
construction of the necessary infrastructure.

8. Within the period of the Eighth Five-Year Plan, the People’s Bank of
China shall arrange forty million yuan (ten million yuan for each city) in
special fixed assets loans each year, which shall be used for the development
of the frontier economic cooperation zones. This shall be listed in the state
credit and investment plan.

The people’s governments of Heilongjiang Province, Jilin Province and the
Inner Mongolia Autonomous Region shall strengthen their leadership role
towards the four cities, and shall help them to perfect overall planning of
development. The scale of construction in the four cities must be appropriate
to the feasibility of development, and over-ambitious development plans must
be abandoned. While expanding the opening to the outside world and speeding up
economic construction, the four cities shall strengthen the building of a
socialist society with an advanced culture and ideology, strengthen economic
management and control, and ensure the security and stability in frontier
areas as well as the healthy development of various undertakings.

REGULATIONS ON CONTROL OF OUTBOUND AND INBOUND LUGGAGE AND ARTICLES CARRIED BY CHINESE CITIZENS

Regulations of the PRC on Control of Outbound and Inbound Luggage and Articles Carried by Chinese Citizens

(Effective Date:1992.06.01–Ineffective Date:)

Article 1. These regulations are formulated in accordance with relevant provisions of “The Customs Law of the People’s Republic of China” and
“Procedures of the Customs of the People’s Republic of China for Controlling Inbound and Outbound Luggage and Articles Carried by
Passengers”.

Article 2. Chinese citizens mentioned in these regulations refer to Chinese who reside in China and enter and exit of China through passports
for private affairs signed and issued by Chinese public security departments.

Article 3. Clearance shall be given by the Customs, upon duty levying or exemption according to Customs provisions, to items and amounts of
inbound luggage and articles within limits as prescribed in the attached “Table of Limits on Articles Carried into China by Chinese
Citizens (Referred hereafter as “Table of Limits”, see Appendix 1) if they are carried by Chinese citizens who have resided continuously
outside China for a year or more before the date of entry.

For articles beyond the limit of duty exemption as prescribed in Items 4 and 5 of the Table of Limits, clearance shall be given to
only one article upon examination and approval by the Customs.

Article 4. Clearance and exemption shall be given by the Customs to articles within limits as prescribed in Items 1, 2 and 3 of the Table of
Limits which are carried into China by Chinese citizens having resided outside China continuously for less than one year before the
current entry. For articles in Items 4 and 5 of the Table of Limits, clearance shall be given to only one article chosen from among
them after duty payment if Chinese citizens enter China for the first time in each Gregorian-calendar year.

Articles beyond the limit of those taxed and permitted to enter shall not be allowed to come into Chinese territories. Travellers
shall go through procedures to claim and send them out of China on their own within the time limit set by the Customs. The Customs
shall dispose of the articles beyond the time limit.

Article 5. For travellers under the age of 16 full years, clearance shall be given only to articles necessary for travelling.

Article 6. Except articles the exit of which is prohibited or restricted by the State, a reasonable amount of luggage and articles carried by
Chinese residents for their own use are allowed to leave Chinese territories.

Article 7. Articles listed in “Table of Articles Prohibited to Enter or Leave the People’s Republic of China” shall not be carried by Chinese
citizens into or outside of China.

Article 8. Inbound and outbound luggage and articles carried by personnel holding passports for private affairs or valid passes issued by competent
Chinese departments in charge of Hongkong, Macro and Taiwan affairs shall be processed by the Customs pursuant to other related regulations.

Clearance is given only to inbound and outbound luggage and articles necessary for travelling of personnel who hold the above-mentioned
documents and cross Chinese borders with neighbouring countries.

Article 9. Matters not provided for in these regulations are handled according to related Customs laws and regulations.

Article 10. The regulations shall come into force as of June 1, 1992.

Appendix 1

TABLE OF LIMITS ON ARTICLES CARRIED INTO CHINA BY CHINESE CITIZENS

Amount

Residing abroad Residing abroad

Item continuously continuously

for more than for less than

one year one year

1. Foodstuffs, clothing

material, clothing, arts

and crafts, ordinary

watches and other

1...210211212 Page 211 of 212

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

ADMINISTRATIVE PROCEDURE LAW

PROVISIONS GOVERNING THE FOREIGN EXCHANGE OF CHINESE INVESTORS IN CHINESE-FOREIGN EQUITY JOINT VENTURES AND CONTRACTUAL JOINT VENTURES

RULES OF PROCEDURE FOR THE NATIONAL PEOPLE’S CONGRESS OF THE PEOPLE’S REPUBLIC OF CHINA

ADMINISTRATIVE MEASURES FOR RECEPTION OF TELEVISION PROGRAMMES TRANSMITTED VIA FOREIGN SATELLITES BY GROUND SATELLITE RECEIVING FACILITIES

REGULATIONS FOR SUPERVISING INTERNATIONAL-SHIPPING-AGENCY SERVICES

CIRCULAR OF THE STATE COUNCIL CONCERNING THE QUARANTINE CONTROL SYSTEM FOR ANIMAL PRODUCTS LEAVING CHINA FOR TRADE PURPOSE

MEASURES OF THE GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPL’S REPUBLIC OF CHINA ON ADMINISTRATION OF THE BOND OF MATERIALS IMPORTED BY MATERIALS CORPORATIONS FOR ENTERPRISES WITH FOREIGN INVESTMENT

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE REVISION OF ARTICLE 30 AND ARTICLE 31 OF THE THE PROTECTION OF CULTURAL RELICS

CIRCULAR OF THE STATE COUNCIL CONCERNING THE FURTHER OPENING UP OF HEIHE CITY AND THREE OTHER FRONTIER CITIES

REGULATIONS ON CONTROL OF OUTBOUND AND INBOUND LUGGAGE AND ARTICLES CARRIED BY CHINESE CITIZENS

CONSTITUTION ACT, 1982 – page 22

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CONSTITUTION ACT, 1982 – page 18

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CONSTITUTION ACT, 1982 – page 12

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CONSTITUTION ACT, 1982 – page 9

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CONSTITUTION ACT, 1982 – page 7