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MEASURES FOR EXAMINATION AND APPROVAL OF ACCOUNTING FIRMS WITH LIMITED LIABILITY

The Ministry of Finance

Circular of the Ministry of Finance on Printing and Distributing Measures for Examination and Approval of Accounting Firms with Limited
Liability

CaiKuaiXieZi [1998] No.55

July 3,1998

Finance departments (bureaus) of various provinces, autonomous regions, municipalities directly under the Central Government:

Measures for Examination and Approval of Accounting Firms with Limited Liability is hereby delievred to you, please abide by and carry
out accordingly.

Measures for Examination and Approval of Accounting Firms with Limited Liability

Article 1

These Measures are formulated in accordance with the provisions of the Law of the People’s Republic of China on Certified Public Accountants
and other relevant laws and regulations.

Article 2

An accounting firm with limited liability (hereinafter referred to as a firm) is a social intermediary organization in which certified
public accountants contribute capital to initiate its establishment, undertake certified public accountancy and assume limited liability.

Article 3

Establishment of a firm shall be approved by the Ministry of Finance or the finance department (bureau) of the province, autonomous
region or municipality directly under the Central Government.

Article 4

A firm shall assume liability for its debts to the extent of all its assets.

Contributors of a firm shall assume liability to the extent of their respective capital contributions.

Article 5

The following conditions shall be met for the establishment of a firm:

(1)

having more than five promoters who conform to the requirements provided in Article 6 of these Measures;

(2)

having more than 10 full-time practitioners of an age within the age limit for the profession prescribed by the State, including more
than five certified public accountants registered in China;

(3)

having a registered capital of more than RMB300,000 yuan;

(4)

having fixed office premises; and

(5)

other conditions provided by the examining and approving authority.

The finance department (bureau) of the province, autonomous region or municipality directly under the Central Government may, depending
on the specific circumstances of their respective areas, formulate specific provisions on the number of practitioners and certified
public accountants and the amount of registered capital which shall not below those conditions provided in Item 2 and 3 in the preceding
paragraph.

Article 6

A promoter who applies to establish a firm shall meet the following conditions:

(1)

having obtained a certificate of a Chinese certified public accountant, and having more than three years’ experience in conducting
independent audit work in a firm and having a sound professional ethics record;

(2)

being a contributor to the firm;

(3)

not working in other units for obtaining labor remuneration such as wages;

(4)

being of an age within the age limit for the profession prescribed by the State; and

(5)

other conditions provided by the examining and approving authority.

Article 7

A contributor who applies to establish a firm shall meet the following conditions:

(1)

having obtained a certificate of a Chinese certified public accountant;

(2)

practicing business in the firm and not working in other units for obtaining labor remuneration such as wages; and

(3)

other conditions provided by the examining and approving authority.

Article 8

A firm effectuates a chief accountant accountability system, and the chief accountant is the legal representative of a firm.

A promoter shall serve as the chief accountant, and the relevant procedures for recommendation and election and specific requirements
shall be provided by the articles of association of the firm.

Article 9

The name of a firm shall not be preceded by such name as industry or department which can easily cause misunderstanding, nor shall
China or merely the post_title of an area be used as the name of a firm.

Article 10

To establish a firm, a promoter shall submit an application report to the institutes or associations of certified public accountants
of the province, autonomous region or municipality directly under the Central Government where the firm is located, and shall have
the following materials attached thereto:

(1)

articles of association(draft) of the firm;

(2)

promoters’ resume, originals and photocopies of the certified public accountants’ certificates, originals and photocopies of the ID
cards and a work appraisal report issued by their original firms;

(3)

contributors’ resume, originals and photocopies of the certified public accountants’ certificates, originals and photocopies of the
ID cards and a work appraisal report issued by their original firms;

(4)

contributors’ agreement;

(5)

materials relating to the person proposed to serve as the chief accountant;

(6)

certification of capital contribution;

(7)

other certified public accountants’ originals and photocopies of the ID cards, originals and photocopies of the certified public accountants’
certificates and a work appraisal report issued by their original firms;

(8)

other practitioners’ basic information and the photocopies of their ID cards;

(9)

the firm’s internal management system (draft);

(10)

a valid certification of property right of the office premises or the right to use it; and

(11)

other materials required by the examining and approving authority.

The articles of association (draft)of a firm and contributors’ agreement shall be notarized.

Article 11

The articles of association of a firm (draft) shall clearly specify the following matters:

(1)

name and address of the firm;

(2)

scope of business operations;

(3)

registered capital;

(4)

name of the promoters and contributors;

(5)

rights and obligations of contributors;

(6)

forms, time and amount of contributions made by the contributors;

(7)

conditions and methods for an contributor to change his contributions;

(8)

the legal representative;

(9)

measures for the establishment and creation of its internal organizations, its functions and powers and deliberation rules;

(10)

measures of the firm’s dissolution and liquidation; and

(11)

other matters necessary to be stipulated.

Article 12

The contributors’ agreement shall clearly specify the following matters:

(1)

rights of contributors;

(2)

liability which shall be assumed by contributors;

(3)

forms, time and amount of contributions;

(4)

conditions and methods to change contributions; and

(5)

other matters which are required by the examining and approving authority or contributors deem necessary to be clearly specified.

Article 13

The firm’s internal management system (draft) shall include the following systems:

(1)

a personnel management system;

(2)

a financial management system;

(3)

a quality control system of practicing business;

(4)

a business records management system; and

(5)

other management systems which are required by the examining and approving authority or the firm deems necessary to be worked out.

Article 14

The examination and approval of a firm shall be handled in accordance with the following procedures:

(1)

Contributors submit an application report and relevant materials to the institutes of certified public accountants of the province,
autonomous region or municipality directly under the Central Government.

(2)

The institutes of certified public accountants of the province, autonomous region or municipality directly under the Central Government
shall, within 30 days of receipt of the application report, complete its examination, put forward its opinions of approval or disapproval
and make a report to the head of the finance department (bureau) of the province, autonomous region or municipality directly under
the Central Government, and the head of the finance department (bureau) of the province, autonomous region or municipality directly
under the Central Government shall make a decision of approval or disapproval. The applicant shall be notified within 15 days after
the decision of approval or disapproval is made.

(3)

A firm approved by the finance department (bureau) of the province, autonomous region or municipality directly under the Central Government
shall be sent to the Chinese Institute of Certified Public Accountants for reporting to the Ministry of Finance for the record. Where
the Chinese Institute of Certified Public Accountants in its review finds that the examination and approval are improper, it shall
make a report to the Minister-in-charge of the Ministry of Finance within 30 days of receipt of the report for the record, and the
Minister-in-charge of the Ministry of Finance shall decide whether it is necessary to notify the original examining and approving
authority to carry out re-examination.

Article 15

An approved firm shall, within 20 days of receipt of the approval document, obtain an Accounting Firm Practicing Business License
uniformly printed by the Ministry of Finance from the local institute of certified public accountants of the province, autonomous
region or municipality directly under the Central Government and undergo relevant registration formalities in accordance with provisions.

Article 16

A firm shall conduct independent accounting, pay taxes according to law and implement the financial accounting systems for accounting
firms with limited liability formulated by the Ministry of Finance.

Article 17

“More than” or “:within” referred to in these Measures all includes the given figure.

Article 18

These Measures shall enter into force as of the date of promulgation. The Interim Measures on Establishing, Examining and Approving
Accounting Firms with Limited Liability promulgated y the Ministry of Finance on December 31, 1993 (Caikuaixiezi [93] No. 121) shall
be nullified simultaneously.



 
The Ministry of Finance
1998-07-03

 







INTERIM REGULATIONS ON MANAGEMENT OF FUTURES TRANSACTION

Category  BANKING Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1999-06-02 Effective Date  1999-09-01  


Interim Regulations on Management of Futures Transaction

Chapter 1  General Principles
Chapter 2  Futures Exchange
Chaper 3  Futures Brokering Company
Chapter 4  Fundamental Principles for Futures Transaction
Chapter 5  Supervision and Administration
Chapter 6  Legal Liability
Chapter 7  Supplementary Provisions

(Adopted at the 18th Executive Meeting of the State Council on May 25, 1999, promulgated by Decree NO. 267 of the State Council of the People’s Republic of China on June
2 , 1999, and effective as of September 1, 1999)

Chapter 1  General Principles

    Article 1  These Regulations are enacted in order to regulate futures transaction, to strengthen the regulation on the futures market,
to safeguard the order of futures market, to keep away the risk and to protect the lawful rights and interests of the parties and
public interests of the society.

    Article 2  These Regulations must be abided by if futures transaction and other relative conducts are engaged in.

    Article 3  Futures transaction shall be engaged in according to the principles of openness, fairness and equitability. Illegal conducts
such as fraud, inside transaction and the manipulation on the price of futures transaction are prohibited.

    Article 4  Futures transaction shall be conducted inside futures exchange and any transaction in the unorganized market is prohibited.

    Article 5  The China Securities Regulatory Commission (hereinafter referred to as CSRC) excises centralized and unified management
on the futures market.
Chapter 2  Futures Exchange

    Article 6  The establishment of a futures exchange shall be subject to the examination and approval by the CSRC.

    No unit or individual is allowed to set up a futures exchange or in disguised form without the approval of
the CSRC.

    Article 7  A futures exchange is not established for making profit and implements self-discipline in accordance with its Articles
of Association. A futures exchange takes civil liabilities with all of its own properties.

    Article 8  The members of a futures exchange shall be the corporations and enterprises having been registered within the territory
of People’s Republic of China. Acquisition of the membership shall be subject to the approval of futures exchange, and membership
dues shall be paid.

    The members of a futures exchange are composed both of the members of futures brokering company and of the
members of non-futures brokering company.

    Article 9  A futures exchange shall have a board of governors, and the chairman of the board of governors and the deputy chairman
of the board of governors are nominated by the CSRC and elected by the board of governors.

    A future exchange shall have a general manager and deputy general managers who are appointed and removed by
the CSRC. The general manager is the legal representative of futures exchange.

    Article 10  None of the persons having the situations prescribed in the Article 101 of the Securities Law or other situations prescribed
by the CSRC may hold the positions of senior management persons and financial accountants of futures exchange.

    Article 11  The staff of a futures exchange shall perform their duties with due loyalty, and are prohibited from engaging in any futures
transaction for himself, from divulging the inside information and from taking advantage of the inside information to obtain any
illegal benefits.

    Article 12  In performing their duties, the staff of a futures exchange shall be recused where they themselves or any of their relatives
have an interest.

    Article 13  No staff of a futures exchange may hold a post in a member unit of futures exchange during the tenure of office or within
one year after dimission.

    No civil servant may concurrently hold position in a futures exchange.

    Article 14  A futures exchange performs the following functions:

    (1) providing sites, facilities and services for futures transaction;

    (2) designing futures contracts and arranging the listing of them;

    (3) organizing and supervising the transaction, clearing and settling of futures;

    (4) guaranteeing the performance of futures contracts;

    (5) formulating and carrying out the system of risk management prescribed in the Article 35 of these Regulations;

    (6) other functions stipulated by the CRSC.

    Article 15  A futures exchange may not engage in any business irrelevant to its functions such as trust investment, stock exchange
and investment of non-personal real estates.

    A futures exchange may not participate in any futures transaction directly or indirectly.

    Article 16  When abnormal circumstances exist in futures market, a futures exchange may determine the adoption of the following emergent
measures and shall immediately report to the CSRC in accordance with the competence and procedures stipulated in the Articles of
Association:

    (1) increasing the bail;

    (2) adjusting the scope of limit up and limit down;

    (3) restricting the maximum volume of futures-holding of its members and clients;

    (4) suspending the exchange;

    (5) adopting other emergent measures.

    The abnormal circumstances mentioned in the preceding paragraph refer to the conducts manipulating the market
and severely distorting the formation of market price during the transaction, or the sudden events of force majeure and other situations
stipulated by the CSRC.

    After the vanishing of the abnormal circumstances, a futures exchange shall abolish the emergent measures
promptly.

    Article 17  It shall be subject to the approval of the CSRC if any one of the following circumstances exists:

    (1) formulating or amending its Articles of Association and business regulations;

    (2) listing, suspending, canceling or resuming the varieties of futures transaction;

    (3) listing, amending or terminating the futures contracts;

    (4) other circumstances stipulated by the CSRC.

    Article 18  The earnings of a futures exchange shall be administered and used in accordance with the relevant provisions of the State,
and may not be distributed to its members and misappropriated for other purposes.

    After being derived for public welfare fund according to the relevant provisions of the State, the after-tax
income of a futures exchange shall be completely transferred into accumulation fund to make up the loss of the year hereafter.

    Article 19  The incorporation and division of futures exchanges shall be subject to the examination and approval of the CSRC.

    Article 20  A future exchange shall be dissolved if any one of the following circumstances exists:

    (1) the operation term stipulated in the Articles of Association expires and the members’ conference rules
out of its continuous operation;

    (2) the member’s conference makes a decision of dissolve;

    (3) The CSRC makes a decision to close it down.

    The dissolution of a futures transaction due to the circumstances stipulated in Items (1) and (2) of the preceding
paragraph shall be examined and approved by the CSRC.
Chaper 3  Futures Brokering Company

    Article 21  The establishment of a futures brokering company shall conform to the provisions of the Company Law and meet the following
conditions:

    (1) the minimum registered capital is thirty million RMB yuan;

    (2) the chief administrators and business persons are qualified to engage in futures transaction;

    (3) a fixed business sites and up-to-standard transaction facilities are required;

    (4) a sound management system is required;

    (5) other conditions stipulated by the CSRC.

    Article 22  To be established, a futures brokering company shall obtain the approval as well as the business license for futures brokerage
of the CSRC, and register with the State Administration for Industry and Commerce.

    Without the approval of the CSRC, no unit or individual may engage in futures brokerage and include the words
“Futures Brokerage”, “Futures Agent” or other similar words in its name.

    Article 23  A futures brokering company may set up sales departments as its branches in accordance with the need of its business.
The establishment of the sales departments shall meet the conditions stipulated by the CSRC, be approved by the CSRC, obtain the
license for operation issued by the CSRC, and register with the State Administration for Industry and Commerce.

    The sales departments shall carry out their operations within the scope of authorization of the futures brokering
company, and the civil liability shall be borne by the futures brokering company.

    Article 24  Entrusted by its clients, a futures brokering company engages in futures transaction for them in the name of itself, and
the consequence of futures transaction shall be assumed by the clients.

    Article 25  A futures brokering company may engage in no business but the transaction, clearing, settling and other relevant services
of the listed futures contracts as the trustee of its clients.

    A futures brokering company is prohibited from engaging in any futures transaction or does so in disguised
forms.

    Article 26  If any one of the following circumstances exists, a futures brokering company shall obtain the approval of the CSRC, and
undergo registration of modification procedures with the State Administration of Industry and Commerce:

    (1) the legal representative is replaced;

    (2) the registered capital is modified;

    (3) the shareholders or the structure of shareholding is modified;

    (4) the domicile or the business office is modified;

    (5) the sales department is modified or terminated;

    (6) other circumstances as stipulated by the CSRC exist.

    Article 27  A futures brokering company shall settle its entrusted business and refund the clients’ bails in accordance with the law,
if it is dissolved for any one of the following circumstances:

    (1) the operation term expires, and the decision of the shareholders’ conference rules out of its continuous
operation;

    (2) the shareholders’ conference makes a decision of dissolution;

    (3) it is need to be dissolved because of merger or division;

    (4) bankruptcy;

    (5) the CSRC makes a decision to close it down.

    If a futures brokering company is dissolved because of the circumstances stipulated in Items (1), (2) and
(3) of the preceding paragraph, the matter shall be examined and approved by the CSRC.

    To dissolve a futures brokering company, the cancellation registration procedures shall be undergone with
the State Administration of Industry and Commerce.
Chapter 4  Fundamental Principles for Futures Transaction

    Article 28  Only the members of a futures exchange may trade inside a futures exchange. A futures brokering company may engage in
no business but futures brokerage entrusted by its clients, and non-futures brokering company may engage in no business but futures
transaction on his own account.

    The members of a futures exchange shall accredit a representative to enter a future exchange to trade. The
representative may only obey the transaction instructions from his own company, and is prohibited from obeying any instruction from
other units or individuals, from providing any consultation for them, and trading for himself.

    Article 29  When accepting entrust of a client to conduct futures transaction, a futures brokering company shall produce its Risk
Prospectus to the clients in advance, and after the clients have signed to affirm it, the futures brokering company shall sign a
written contract with the clients.

    A futures brokering company may not give any commitment of profits, or make an agreement with the clients
to share the profits or the risks, or accept the trust of futures transaction from any company, enterprise or other economic organizations
in the name of an individual, or re-mandate the business or accepted re-mandated business.

    Article 30  The following units or individuals may not engage in futures transaction, nor a futures brokering company may accept their
entrustment to engage in futures transaction for them:

    (1) banking institutions, institutions and State organs;

    (2) staff of the CSRC;

    (3) those who are barred from entering into a futures market;

    (4) units which do not provide any certifying document of account-opening;

    (5) other units or individuals who are prohibited from engaging in futures trading by the CSRC.

    Article 31  Clients may issue their transaction instructions to a futures brokering company by means of writing, telephoning, or other
ways as provided by the CSRC.

    Clients’ transaction instructions shall be clear and complete.

    Article 32  A futures brokering company shall engage in futures transaction in accordance with clients’ transaction instructions,
and is prohibited from engaging in futures transaction without the trust of the clients or exceeding the scope of authorization.

    Article 33  A futures brokering company shall provide truthful and accurate information on futures market to clients, and may not
inveigle clients into issuing transaction instructions by holding back major information or by other illegal means.

    Article 34  A futures exchange shall announce the information on the listed varieties of futures contracts promptly such as turnover,
purchase price, amount of storage, ceiling and floor prices, opening price and closing price, etc.. Meanwhile, the futures exchange
shall guarantee the truthfulness and accuracy of the information. However, the futures exchange may not announce any forecast information
on price.

    Article 35  A futures exchange shall set up and complete the following systems of risk administration in accordance with the relevant
provisions of the State:

    (1) the system of bail;

    (2) the system of daily clearing;

    (3) the system of limit up and limit down;

    (4) the system of limitation on futures holding and reporting the futures holding of the pit traders;

    (5) the system of risk reserve;

    (6) other systems of risk administration stipulated by the CSRC.

    Article 36  The system of bail shall be implemented in futures transaction. The bail that a futures exchange collects from its members
or a futures brokering company collects from its clients may not be lower than the standard prescribed by the CSRC, and shall be
separated from their own funds and be deposited in a special account.

    The bail that a futures exchange collects from its members is still in the ownership of the members; a futures
exchange is prohibited from appropriating it except for the transaction and clearing of the members.

    The bail that a futures brokering company collects from its clients is still in the ownership of its clients;
a futures brokering company is prohibited from appropriating it except depositing it in a futures exchange and clearing the transaction
for its clients in accordance with the provisions of the CSRC.

    A futures brokering company shall open an account, set a transaction code for each of its clients respectively,
and the different transactions with only one code are prohibited.

    Article 37  A futures exchange and a futures brokering company shall derive, manage and utilize the risk reserve in accordance with
the provisions of the CSRC and the Ministry of Finance, and they are prohibited from misappropriating it.

    Article 38  The collection of handling fees by a futures exchange from its members or by a futures brokering company from its clients
shall be executed in accordance with the uniform provisions of relevant departments under the State Council.

    Article 39  Centralized price competition shall be implemented in futures transaction, and shall follow the match transaction principle
of price precedence and time precedence.

    Article 40  A futures exchange executes uniform administration on the clearing of futures transaction.

    A futures exchange implements a system of daily clearing and shall inform its members of the clearing results
of the same day immediately after the closing.

    A futures brokering company shall make clearing for its clients in accordance with the clearing results of
the futures exchange, and shall inform its clients of the results promptly.

    Article 41  When the bail of one member of a futures exchange is insufficient, the member shall supplement the bail. If the bail is
not supplemented within the term prescribed by the futures exchange, the latter shall execute a mandatory selling order for the member’s
futures contract, and the fee and loss thus induced shall be taken on by the member.

    When the client’s bail is insufficient and is not supplemented within the term prescribed by a futures exchange,
a futures brokering company shall execute a mandatory selling order for the client’s futures contract. The fee and the loss thus
induced shall be taken on by the client.

    Article 42  The settlement of futures transaction shall be organized and executed uniformly by a futures exchange. A futures exchange
may not place any restriction on the amount of practicality settlement.

    The settlement warehouse shall be designated by a futures exchange, and the two parties shall make an agreement
to definitude the rights and obligations.

    Article 43  It is prohibited for the settlement warehouse from committing any one of the following acts:

    (1) to provide false warehouse warrants;

    (2) to restrict the storing and the selling of the settled commodities in violation of the business rules
of a futures exchange;

    (3) to divulge commercial secrets in connection with futures transaction;

    (4) to participate in futures transaction;

    (5) other acts stipulated by the CSRC.

    Article 44  When breaching agreement in futures transaction, the member shall assume the liability with its bail first; if the bail
is insufficient, the futures exchange shall assume the liability with the risk reserve and its own fund for the member, and the futures
exchange acquires the right of recourse to the member by this way.

    When the client breaches agreement in futures transaction, a futures brokering company shall take the measures
by reference to the provisions of the preceding paragraph.

    Article 45  A futures exchange and a futures brokering company shall ensure the completeness and safety of materials of futures transaction,
clearing and settling.  

    Article 46  It is prohibited for any unit or individual from fabricating and disseminating false information on futures transaction,
and from manipulating the transaction price of futures by malicious collaboration, joint transaction and other means.

    Article 47  It is prohibited for any unit or individual from engaging in any futures transaction with credit fund and financial fund.

    Banking institutions may not finance futures transaction by providing funds and offer any warrant.

    Article 48  Futures transaction of State-owned enterprises and enterprises where State-owned assets constitute a controlling and leading
interest is only restricted to hedging, and the following provisions shall be abided by:

    (1) the varieties of futures transaction are restricted to the products they manufacture or sell, or the raw
materials that are in need for their manufacture;

    (2) the gross amount of futures transaction shall conform to the gross amount of the spot transactions of
the corresponding period;

    (3) other provisions of the CSRC.

    If an enterprises described in the preceding paragraph engages in hedging, it shall produce the documents
signed by its legal representative to a futures exchange or a futures brokering company, and shall be subject to the examination
and approval of the futures exchange and the futures brokering company according to the provisions of the preceding paragraph.

    Article 49  No units or individuals may engage in trading futures abroad directly or indirectly without approval. If the market abroad
is indeed in need for the hedging, it shall be examined by the CRSC together with the relevant departments under the State Council
and be approved by the State Council before a license for overseas futures business is issued.

    A futures brokering company is prohibited from engaging in overseas futures trading.
Chapter 5  Supervision and Administration

    Article 50  A futures exchange and a futures brokering company shall periodically send statements of financial accounting, relevant
materials and audit reports to the CSRC.

    Article 51  The CSRC is enpost_titled to inspect the business and finance situations of a futures exchange or a futures brokering company
at any moment, to request them to hand in certain materials, and certain information and materials on their members or clients, and
when necessary, to inspect the business and finance situations in connection with futures transaction of the members and clients.

    During the inspection, if the CSRC finds they may have violated the law, the CSRC is enpost_titled to obtain and
seal up certain documents and materials, and to make a decision within a prescribed period.

    When inspecting, the staff of the CSRC shall produce their legal credentials.

    Article 52  The CSRC is enpost_titled to inquire and investigate the units and individuals who are suspected of violating the law concerning
futures, to inspect the deposit accounts of a futures exchange or a futures brokering company, as well as those opened by their members
or clients in a commercial bank or other banking institutions, and to apply to the judicial organs to freeze the accounts if there
is evidence to substantiate that illegally obtained funds have been removed or concealed. The units and individuals concerned may
not refuse to provide support or cooperation.

    Article 53  When abnormal circumstances exist in the futures market, the CSRC may take certain necessary measures to dispose of the
risks.

    Article 54  The CSRC executes a system of qualification cognizance for the senior management persons and other business persons of
a futures exchange and a futures brokering company.

    Article 55  A futures exchange shall, in accordance with the provisions of these Regulations and of the CSRC, set up and complete
the different rules and systems, strengthen the control on the risk in its transaction conducts and the supervision and management
on its members and staff.

    A futures brokering company shall set up and complete its administrative rules of internal business, strengthen
the examination on the client’s credit status, and report the list and trading information of the pit traders to a futures exchange
in accordance with its provisions.

    Article 56  When its General Manager leaves his post, a futures exchange shall retain an intermediary organization qualified to engage
in audit business to audit the manager. The CSRC may designate an intermediary organization to take such an audit when necessary.
Chapter 6  Legal Liability

    Article 57  A futures exchange shall be ordered to make rectification and be given a warning, and its illegal gains shall be confiscated
for any of the following acts:

    (1) to recruit a member in violation of provisions;

    (2) to charge handling fees in violation of provisions;

    (3) to use and distribute profits in violation of provisions;

    (4) not to publicize information according to provisions;

    (5) not to fulfill the obligation of making reports to the CSRC according to provisions;

    (6) not to submit relevant documents and materials to the CSRC according to provisions;

    (7) not to withdraw, manage and use the risk reserve according to provisions;

    (8) to restrict gross amount of the practicality settlement of its members;

    (9) to appoint unqualified futures business persons;

    (10) other acts that are in violation of the provisions of the CSRC.

    If a futures exchange commits any one of the acts listed in the preceding paragraph, the persons in charge
directly responsible and the other directly responsible persons shall be imposed disciplinary sanctions, and may also be fined not
less than 10,000 yuan nor more than 100,000 yuan.

    If a futures exchange commits the act stipulated in Item 2 of Paragraph 1 of this Article, it shall refund
the overcharged handling fees.

    Article 58  If a futures exchange commits any one of the following acts, it shall be ordered to make rectification, be given a warning,
be confiscated the illegal gains and also be fined not less than one time nor more than five times the illegal gains; if there are
no illegal gains or the illegal gain is less than 100,000 yuan, a fine of not less than 100,000 yuan nor more than 500,000 yuan shall
be imposed; if the circumstances are serious, the futures exchange shall be ordered to suspend business for rectification:

    (1) to formulate and modify the articles of association and business rules without approval;

    (2) to list, suspend, cancel or resume the varieties of futures transaction without approval;

    (3) to list, amend or terminate the futures contracts without approval;

    (4) to permit its members to engage in futures transaction when the bail is insufficient;

    (5) to participate in futures transaction directly or indirectly, or to engage in the businesses irrelevant
to its functions;

    (6) to charge bail in violation of provisions, or to misappropriate the bail;

    (7) to forge, alter or preserve the materials of futures transaction, clearing and settling not comforting
to provisions;

    (8) not to set up or execute the system of limit up and limit down, of limit on futures holding or of reporting
the pit traders;

    (9) to refuse or obstruct the supervision and examination of the CSRC;

    (10) other acts violating the provisions of the CSRC.

    If a futures exchange commits any one of the acts listed in the preceding paragraph, the persons in charge
directly responsible and the other directly responsible persons shall be imposed disciplinary sanctions and also be fined not less
than 10,000 yuan nor more than 100,000 yuan.

    Article 59  If a futures brokering company commits any one of the following acts, it shall be ordered to make rectification, be given
a warning, be confiscated the illegal gains and also be fined no less than one time nor more

FIRE PROTECTION LAW

Fire Protection Law of the People’s Republic of China






(Adopted at the 2nd Meeting of the Standing Committee of the Ninth National People’s Congress on April 29, 1998 and
promulgated by Order No. 4 of the President of the People’s Republic of China on April 29, 1998) 

Contents 

Chapter I    General Provisions 

Chapter II   Fire Prevention 

Chapter III  Fire Protection Organizations 

Chapter IV   Fire Fighting and Rescuing 

Chapter V    Legal Responsibility 

Chapter VI   Supplementary Provisions 

Chapter I 

General Provisions 

Article 1  This Law is enacted for the purpose of preventing fire and reducing harm caused by fire hazards, safeguarding citizens’
personal safety, the security of public and citizens’ property, maintaining public security and ensuring the smooth progress of the
socialist modernization drive. 

Article 2  In fire protection, the guideline of putting prevention first and combining prevention with fire fighting shall be
applied, the principle of coordinating the efforts of special organs with those of the masses shall be adhered to and the responsibility
system for security against fire shall be practised. 

Article 3  The State Council shall exercise leadership over the work of fire protection and the local people’s governments at
all levels shall be responsible for it. The people’s governments at all levels shall incorporate the work of fire protection into
their plans of national economic and social development to ensure that the work of fire protection is suited to economic and social
development. 

Article 4  The public security department under the State Council shall supervise and administer the work of fire protection
throughout the country; the public security organs of the local people’s governments at or above the county level shall supervise
and administer the work of fire protection within their own administrative regions, and the departments for fire protection of the
public security organs under these people’s governments shall be responsible for exercising such supervision and administration.
The work of fire protection for military installations, for the underground areas of mines and for nuclear power plants shall be
supervised and administered by the units in charge of them. 

Where there are provisions governing the work of fire protection for forests and grasslands in other laws or administrative rules
and regulations, those provisions shall be followed. 

Article 5  All units and individuals shall have the duty of maintaining security against fire, preserving fire protection facilities,
preventing the occurrence of fire and giving an alarm of fire once it occurs. All units and adult citizens shall have the duty of
helping to put out a fire in an organized manner. 

Article 6  The people’s governments at all levels shall constantly disseminate among citizens knowledge about fire protection
so as to enhance their awareness of the importance of fire protection. 

The administrative departments for education, labor, etc. shall incorporate knowledge about fire protection into their teaching and
training programs. 

The competent departments for the press, publishing, broadcasting, film and, television and the other departments concerned shall
have the duty of disseminating knowledge about the importance of security against fire. 

Article 7  Units or individuals that have made outstanding contributions to or have accomplished notable achievements in the
work of fire protection shall be rewarded. 

Chapter II 

Fire Prevention 

Article 8  The people’s governments of cities shall incorporate into their overall urban planning the plans for fire protection,
which include the location of fire-fighting facilities, fire stations, water supply for fire fighting, fire service communications,
passageways for fire engines and fire-fighting equipment, and shall be responsible for mobilizing the competent departments concerned
to carry them out. Where public fire protection facilities or fire-fighting equipment are inadequate or cannot meet practical needs,
the said governments shall see to it that these are increased, rebuilt, installed or upgraded. 

Scientific research in fire protection shall be enhanced, and the use of advanced technology and equipment for fire protection shall
be encouraged. 

Article 9  Factories that produce such hazardous substances as combustibles and explosives, warehouses that store them and the
stations and wharves that are used specially for loading and unloading them shall be built on the outskirts of cities or in relatively
separate, safe areas. Fueling, supplying and voltage regulating stations for combustible or explosive gases or liquids shall be built
in proper locations in conformity with the requirements for preventing fire and explosion. 

Where factories that produce such hazardous substances as combustibles and explosives, warehouses that store them, stations and wharves
that are used specially for loading and unloading them, or fueling, supplying and voltage regulating stations for combustible or
explosive gases or liquids were built at variance with the provisions in the preceding paragraph, the relevant units shall take measures
to have the problem solved within a time limit. 

Article 10  Where a construction project needs to be designed for fire protection in accordance with the national standards
of construction technology for such a project, the designer shall do the designing in conformity with the said standards, and the
construction unit shall submit for examination the blueprint of the design for fire protection and the related data to the department
for fire protection of a public security organ; if they are not examined or fail to pass the examination, the administrative department
for construction may not issue the construction permit and the construction unit may not start work. 

If the design of a construction project for fire protection that has passed examination by the department for fire protection of
the public security organ need be altered, the matter shall be submitted to the said department for examination and approval; without
such examination and approval, no unit or individual may alter the design. 

When a construction project which is designed in accordance with the national standards of construction technology for fire protection
is completed, it shall be inspected for acceptance by the department for fire protection of the public security organ; if the project
is not inspected for acceptance or fails to pass the inspection, it may not be put to use. 

Article 11  All construction components and materials shall conform to the national or trade standards in their properties of
fire prevention. 

Where the national standards of construction technology for fire protection require the use of incombustible or fire retardant materials
in the internal furnishing and decoration of public places, only quality materials which are tested and verified by the inspection
institutions authorized in accordance with the provisions of the Law on Product Quality shall be used. 

Article 12  Before the use or start of business operation of public places, such as song and dance halls, cinemas, theaters,
hotels, restaurants, department stores or markets, an application shall be submitted to the department for fire protection of the
local public security organ for inspection; and these places may only be put to use or start business operation when they pass the
inspection for security against fire. 

Article 13  Where there is a danger of fire when public activities such as large gatherings, fireworks evening parties and lantern
festivals are held, the host units shall, in advance, work out plans for possible fire fighting and emergency evacuation, make sure
that measures for security against fire are taken and apply to the department for fire protection of the public security organ; such
activities may only be held after the said department inspects the venues and considers them qualified for security against fire. 

Article 14  All government departments, public organizations, enterprises and institutions shall perform the following duties
for security against fire: 

(1) to formulate regulations and operating rules for security against fire; 

(2) to practise the responsibility system for security against fire and appoint persons to take charge of fire protection for the
units themselves and for their subordinate departments and teams or groups; 

(3) to disseminate knowledge about fire protection among the employees in light of the characteristics of the units; 

(4) to arrange inspections of fire prevention in order to remove in time any potential fire hazard; 

(5) according to relevant State regulations, to install fire-fighting facilities and apparatus, set up safety signs for fire protection
and conduct regular inspection and maintenance in order that such facilities and apparatus remain in good condition and functional;
and 

(6) to make sure that fire escapes and exits are kept unobstructed and, in compliance with State regulations, set up signs for safe
evacuation from fire. 

Administrative units for residential areas shall, according to the relevant provisions in the preceding paragraph, fulfill their
duties for security against fire and do a good job in this respect. 

Article 15  No dormitories may be built for employees within buildings in which there are workshops or warehouses. 

Where there are already dormitories for employees within buildings in which there are workshops or warehouses, the problem shall
be solved within a time limit. If it is really difficult to do so, necessary measures for fire protection shall be taken, and with
the approval of the department for fire protection of the public security organ, the dormitories may continue to be used as such. 

Article 16  The department for fire protection of the public security organ of the local people’s government at or above the
county level shall designate the units that are dangerously exposed to fire hazards or where once a fire breaks out, it may cause
heavy casualties or heavy losses of property as priority units for fire protection in its administrative region and report the matter
to the said people’s government for the record. 

In addition to the duties prescribed in Article 14 of this Law, the priority units for fire protection shall perform the following
duties for security against fire: 

(1) to keep files on fire protection, determine the key locations for fire protection, install fire danger signs and exercise strict
control; 

(2) to conduct daily fire patrol and keep records of the patrols; 

(3) to train the employees in the skills of fire protection; and 

(4) to work out plans for fire fighting and emergency evacuation, and organize regular fire-fighting drills. 

Article 17  All units and individuals that produce, store, transport, sell or use or destroy such hazardous substances as combustibles
and explosives shall observe the State regulations governing fire protection. 

The units that produce such hazardous substances as combustibles and explosives shall attach to their products information on ignition
points, flash points and explosive limits as well as precautions against fire and explosion. The individually packed such hazardous
substances as combustibles and explosives shall have warning stickers. 

Anyone who enters a place where such hazardous substances as combustibles and explosives are produced or stored shall observe the
State regulations governing fire protection. It is forbidden to enter such a place with any kindling material. It is forbidden to
enter any public places or take any public means of transportation illegally with such hazardous substances as combustibles and explosives. 

Storehouses of combustibles shall be controlled in accordance with the State regulations governing fire protection. 

Article 18  Using naked fire in places that are exposed to fire hazards or explosion is forbidden. Under special circumstances
where naked fire is needed for work, the formalities of examination and approval shall be gone through beforehand in accordance with
relevant regulations. The workers shall follow the regulations governing fire protection and take necessary measures for the purpose. 

Workers who do electric or gas welding or other jobs under the danger of fire and workers who operate automatic fire protection systems
shall have qualification certificates for such jobs and shall strictly follow the operation procedures for fire protection. 

Article 19  The quality of the products for fire protection shall meet the national or trade standards.  It is forbidden
to manufacture, sell or use products for fire protection that are not tested and verified by the inspection institutions authorized
in accordance with the provisions of the Law on Product Quality. 

It is forbidden to use fittings or fire extinguishing agents that do not conform to the national or trade standards in the maintenance
of fire-fighting facilities and apparatus is forbidden. 

No department for fire protection of the public security organs or their members may take advantage of their position to designate
sales agents or brands of fire-fighting products for consumers. 

Article 20  The quality of electric products and gas appliances shall conform to the national or trade standards. Such products
and appliances shall be installed and used and the wire and pipe lines shall be designed and laid in conformity with the State regulations
governing technology for fire protection. 

Article 21  No units or individuals may damage or, without authorization, divert the use of, or remove fire-fighting facilities
or apparatus or let them lie idle, or pile things upon or occupy the areas around the place under which a fire hydrant is installed,
occupy firebreaks or block the passageways for fire engines. 

Before public utilities or urban construction units build roads or stop the supply of power or water or cut off telecommunications
lines, which may make it difficult for fire brigades to quench a fire and rescue people and property, these units shall inform the
local department for fire protection of the public security organ of the matter. 

Article 22  During the harvest time, forest and grassland fire season, major festivals and holidays and the season when fire
occurs frequently, the local people’s governments at different levels shall make arrangements for dissemination of knowledge about
fire protection in light of local conditions, take preventive measures and inspect the preparations made against the occurrence of
fire. 

Article 23  The villagers’ committees and residents’ committees shall mobilize the masses to prevent the occurrence of fire,
making arrangements for working out pledges for fire protection, and inspect the preparations made against the occurrence of fire.
Town and township people’s governments and urban neighborhood offices shall provide guidance in this respect and supervise the work. 

Article 24  Departments for fire protection of public security organs shall, in accordance with law, conduct supervision and
inspection to see that government departments, public organizations, enterprises and institutions observe the laws and regulations
governing fire protection. They shall supervise and inspect the priority units for fire protection at regular intervals. 

When members of the departments for fire protection of the public security organs conduct supervision and inspection, they shall
show their credentials. 

No department for fire protection of the public security organ may make charges for the supervision and inspection it conducts to
examine or inspect before acceptance a construction project for fire protection. 

Article 25  When the department for fire protection of the public security organ detects a potential fire danger, it shall immediately
notify the unit or individual concerned to take measures to remove the danger within a time limit. 

Chapter III 

Fire Protection Organizations 

Article 26  People’s governments at all levels shall set up various forms of fire protection organizations in light of the need
of economic and social development, strengthen such organizations and increase their ability of putting out fires. 

Article 27  The people’s governments of cities shall organize public security fire brigades and full-time fire brigades in conformity
with the standards set by the State for the establishment of fire stations, and these brigades shall shoulder the task of fire fighting. 

People’s governments of towns may organize full-time or volunteer fire brigades in light of the need of local economic development
and fire protection, and these brigades shall shoulder the task of fire fighting. 

In addition to fulfilling the task of fire fighting specified in this Law, the public security fire brigades shall join in rescuing
efforts in other calamities or accidents. 

Article 28  The following units shall organize their own full-time fire brigades for fire fighting: 

(1) nuclear power plants, large power plants, civil airports and large ports; 

(2) large enterprises that produce or store such hazardous substances as combustibles and explosives; 

(3) large warehouses and bases where important flammable goods or materials are stored; 

(4) large enterprises, other than the ones specified in subparagraphs (1), (2) and (3), that are exposed to a greater danger of fire
and are far from the local public security fire brigades; and 

(5) units that are in charge of protecting the ancient architectural complexes included in the list of the major sites of cultural
relics to be protected at the national level and that are far from the local public security fire brigades. 

Article 29  A full-time fire brigade shall be formed in conformity with relevant State regulations and be examined for approval
by the department for fire protection of the public security organ of the people’s government at the provincial level. 

Article 30  Where necessary, volunteer fire brigades consisting of staff members and workers or villagers may be formed by government
departments, public organizations, enterprises, institutions as well as townships and villages. 

Article 31  The department for fire protection of a public security organ shall provide the full-time and volunteer fire brigades
with professional guidance and it shall have the power to mobilize and direct the full-time fire brigades in fire fighting. 

Chapter IV 

Fire Fighting and Rescuing 

Article 32 Anyone who detects a fire shall report it to the police immediately. All units and individuals shall provide free convenience
for such report and may not obstruct it. False fire alarm is strictly forbidden. 

When a fire breaks out in a public place, the workers there shall have the duty to organize evacuation and help people to leave the
scene. 

The unit where a fire breaks out shall organize people to extinguish the fire. The units in the neighborhood shall assist it in the
effort. 

As soon as a fire brigade receives a fire alarm, it shall rush to the scene to rescue the people in distress, eliminate the hazards
and put out the fire. 

Article 33  When the department for fire protection of a public security organ organizes and directs, in a unified manner, the
people to extinguish a fire on the scene, the fire chief shall have the power to make the following decisions where necessary: 

(1) to use any water sources available; 

(2) to stop the supply of electricity, flammable gas and liquid, and restrict the use of fire and electricity; 

(3) to delimit the security area and put part of the traffic under control; 

(4) to make use of the buildings and relevant facilities nearby; 

(5) to pull down or demolish the buildings or structures adjacent to the scene of the fire in order to prevent the fire from spreading;
and 

(6) to mobilize water and power supply units, medical teams, transportation units and others concerned to help put out the fire. 

In the event of a conflagration, the local people’s government concerned shall mobilize people and muster goods and materials needed
for extinguishing the fire. 

Article 34  When taking part in a rescuing effort in calamities or accidents other than fires, the public security fire brigades
shall be under the unified direction of the local people’s government concerned. 

Article 35  When on their way to extinguish fires or carry out rescuing tasks in other calamities or accidents, the fire engines
and fire boats shall not be restricted by the limits of speed, route, direction or traffic signal, and all other vehicles and vessels
and pedestrians shall make way for them and may not pass through or surpass them. Traffic controllers shall ensure quick passage
of the fire engines and fire boats. 

Article 36  No fire engines, fire boats or fire-fighting apparatus, equipment or facilities may be used for purposes that have
nothing to do with fire fighting or rescuing. 

Article 37  When a pubic security fire brigade extinguishes a fire, it may not charge the unit or individual whose buildings
or houses caught fire. 

The cost of fuels and fire-extinguishing agents and wear and tear of apparatus and equipment by full-time or volunteer fire brigades
when helping other units to extinguish fires shall be compensated in accordance with relevant regulations. 

Article 38  Persons who are injured, disabled or killed when helping to extinguish fires shall be given medical treatment or
pensions in accordance with the relevant regulations of the State. 

Article 39  After a fire is extinguished, the department for fire protection of the public security organ shall have the power
to close the scene, where necessary, in order to investigate and determine the cause of the fire, estimate the losses incurred and
find out the responsibility for the accident. 

In the case of a conflagration, the State Council or the people’s government at the provincial level may arrange for an investigation
when it deems it necessary. 

After a fire is extinguished, the unit where the fire breaks out shall, in compliance with the requirement of the department for
fire protection of the public security organ, protect the scene, submit itself to investigation into the accident and truthfully
provide the facts about the fire. 

Chapter V 

Legal Responsibility 

Article 40  Any unit that commits one of the following acts in violation of the provisions of this Law shall be ordered to set
it right within a time limit; if it fails to do so, it shall be ordered to suspend construction, stop using the project, or suspend
production or business, and it may also be fined: 

(1) to start construction before submitting the design of the project for fire protection to the department for fire protection of
a public security organ for examination or the design fails to pass the examination; 

(2) to put to use a completed construction project which, as required by law, should be designed for fire protection, before it is
inspected for acceptance by the department for fire protection or after it fails to pass the inspection; or 

(3) to use a public place or start business operation before the place undergoes inspection for fire protection or after it fails
to pass the inspection. 

The unit that commits one of the acts mentioned above shall be penalized according to the provisions in the preceding paragraph,
and the persons who are directly in charge and the other persons who are directly  responsible shall be given a disciplinary
warning or be fined. 

Article 41  Any unit that, in violation of the provisions of this Law, holds mass activities in danger of fire, such as a large
gathering, a fireworks evening party or a lantern festival, the department for fire protection of the public security organ shall
order it to remove the danger immediately; if this cannot be done, the department shall order it to stop holding such activities
and may also impose a fine on the unit. 

The unit that commits one of the acts mentioned above shall be penalized according to the provisions in the preceding paragraph,
and the persons who are directly in charge and the other persons who are directly responsible shall be given a disciplinary warning
or be fined. 

Article 42  Any unit that, in violation of the provisions of this Law, constructs a project below the technological standards
of fire protection, uses construction components and materials that do not conform to the national or trade standards in their properties
of fire prevention, or uses disqualified furnishing or decorating materials shall be ordered to set it right within a time limit;
if it fails do so, it shall be ordered to suspend construction and may also be fined. 

The unit that commits any of the acts mentioned above shall be penalized according to the provisions in the preceding paragraph,
and the persons who are directly in charge and the other persons who are directly responsible shall be given a disciplinary warning
or be fined. 

Article 43  Any government department, public organization, enterprise or institution that, in violation of the provisions of
this Law, fails to perform its duty for fire protection shall be ordered to do it within a time limit; if it fails to do so, the
persons who are directly in charge and the other persons who are directly responsible shall be given administrative sanctions or
a disciplinary warning in accordance with law. 

Any profit-making unit that commits one of the following acts shall be ordered to set it right within a time limit; if it fails to
do so, it shall be ordered to suspend production or business operation and may also be fined, and the persons who are directly in
charge and the other persons who are directly responsible shall be fined: 

(1) failing to remove the hidden danger of fire in time; 

(2) failing to install fire-fighting facilities and apparatus in accordance with the relevant regulations of the State; or 

(3) failing to ensure unobstructed fire escapes or exits. 

Any unit that builds dormitories for employees within buildings in which there are workshops or warehouses shall be penalized in
accordance with the provisions in the second paragraph. 

Article 44  Any unit that, in violation of the provisions of this Law, manufactures or sells fire-fighting products that are
not tested and verified by the inspection institutions authorized in accordance with the provisions of the Law on Product Quality
shall be ordered to stop violating the provisions, its products and illegal gains shall be confiscated and it shall be given a heavier
punishment in accordance with the provisions of the Law on Product Quality. 

If a unit that is in charge of maintaining or checking fire-fighting facilities and apparatus and does such maintaining and checking
in violation of the regulations governing the technology for fire protection, it shall be ordered to set it right within a time limit
and` may also be fined, and the persons who are directly in charge and the other persons who are directly responsible shall be given
a disciplinary warning or be fined. 

Article 45  Any unit where electric products or gas appliances are installed or wire or pipe lines are laid at variance with
the regulations governing the technology for fire protection shall be ordered to have it set right within a time limit; if this is
not done, it shall be ordered to stop using them. 

Article 46  Any individual who, in violation of the provisions of this Law, produces, stores, transports, sells, or uses or
destroys such hazardous substances as combustibles and explosives shall be ordered to stop violating the provisions and may be given
a disciplinary warning, be fined or be detained for not more than 15 days. 

Any unit that commits one of the acts mentioned above shall be ordered to stop violating the provisions and may be given a disciplinary
warning or be fined, and the persons who are directly in charge and the other persons who are directly responsible shall be punished
in accordance with the provisions in the preceding paragraph. 

Article 47 Anyone who, in violation of the provisions of this Law, commits one of the following acts shall be given a disciplinary
warning, be fined or be detained for not more than 10 days: 

(1) to enter, in violation of the regulations governing fire protection, a place where such hazardous substances as combustibles
and explosives are produced or stored; 

(2) to work illegally with naked fire or, in defiance of prohibitions, to smoke or use naked fire in places that are exposed to the
danger of fire or explosion; 

(3) to prevent others from giving an alarm of fire or to give a false alarm; 

(4) to deliberately hinder the fire engines or fire boats from rushing to the scene of a fire or to disrupt order on the scene; 

(5) to refuse to obey command of the fire chief, thus obstructing fire fighting; or 

(6) to cause the occurrence of a fire inadvertently, which incurs no serious losses. 

Article 48  Any unit or individual that, in violation of the provisions of this Law, commits one of the following acts, shall
be given a disciplinary warning or be fined: 

(1) to instigate or force others to work at risks in violation of the regulations governing fire protection, which causes no serious
consequences; 

(2) to pile things upon or occupy the place under which a fire hydrant is installed, occupy firebreaks, block passageways for fire
engines, damage or without authorization divert the use of, or remove fire-fighting facilities or apparatus, or let them lie idle;
or 

(3) to fail to remove a major potential fire danger within the time limit set by the department for fire protection of the public
security organ. 

The unit that commits one of the acts mentioned above shall be penalized in accordance with the provisions in the preceding paragraph,
and the persons who are directly in cha

CIRCULAR OF THE STATE COUNCIL CONCERNING THE ORGANIZATIONAL STRUCTURE OF ADVISORY AND COORDINATING ORGANS AND PROVISIONAL ORGANS

Category  STATE INSTITUTIONS Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-03-29 Effective Date  1998-03-29  


Circular of the State Council Concerning the Organizational Structure of Advisory and Coordinating Organs and Provisional Organs



(March 29, 1998)

    People’s government of the province, autonomous region and municipality
directly under the Central Government, ministries and commissions of the State
Council, organizations directly under the State Council:

    In accordance with the Plan for the Readjustment of Advisory and
Coordinating Organs and Provisional Organs of the State Council approved
through deliberation at the First Plenary Meeting of the State Council, the
restructuring and readjustment of advisory and coordinating organs and
provisional organs of the State Council are hereby circulated as follows:

    1. Advisory and Coordinating Organs and Provisional Organs of the State
Council through Restructuring and Readjustment

    State National Defence Mobilization Committee, its specific work shall be
undertaken by the State Development Planning Commission, the Headquarters of
the General Staff and the General Logistics Department;

    Special Committees of the Central Military Commission and the State
Council, its specific work shall be undertaken by the Commission of Science,
Technology and Industry for National Defence;

    State Frontier Defence Commission, its specific work shall be undertaken
by the Headquarters of the General Staff;

    Air Traffic Control Commission of the Central Military Commission and the
State Council, its specific work shall be undertaken by the Headquarters of
the General Staff;

    National Committee for Patriotic Public Health Campaign, its specific
work shall be undertaken by the Ministry of Public Health;

    National Greening Committee, its specific work shall be undertaken by the
State Forestry Bureau;

    Academic Degrees Committee of the State Council, it shall separately
establish an agency under the Ministry of Education;

    State Flood Control and Drought Relief Headquarters, it shall separately
establish an agency under the Ministry of Water Resources;

    Women and children’s Work Coordinating Committee of the State Council, its
specific work shall be undertaken by the All-China Women’s Federation;

    National Group for the Development of Army-People Relations, its specific
work shall be undertaken by the Ministry of Civil Affairs and the General
Political Department;

    Committee for Completion of the Three Gorges Project under the State
Council, it shall separately establish an agency;

    Disabled Persons’ Work Coordinating Committee of the State Council, its
specific work shall be undertaken by the China Disabled Persons’ Federation;

    Development Leading Group for Poverty Relief under the State Council, it
shall separately establish an agency under the Ministry of Agriculture;

    Tariff Policy Commission of the State Council, its specific work shall be
undertaken by the Ministry of Finance;

    China Committee of the International Decade for Natural Disaster
Reduction, its specific work shall be undertaken by the Ministry of Civil
Affair;

    Science, Technology and Education Leading Group of the State Council, its
specific work shall be undertaken by the Ministry of Science and Technology
and the Ministry of Education;

    State Leading Group for Performance of the Convention for Prohibiting the
Use of Chemical Weapon, its specific work shall be undertaken by the State
Petroleum and Chemical Industry Bureau;

    Working Group for Transferring Retired Offices to Civilian Jobs under the
State Council, its specific work shall be undertaken by the Ministry of
Personnel;

    State Commission for Economic Restructuring, its specific work shall be
undertaken by the Economic Restructuring Office of the State Council.

    Besides, the State Council Office for Correcting Malpractices in All
Trades and Professions will retain its name but have the Ministry of
Supervision undertaking its work.

    2. Advisory and Coordinating Organs and Provisional Organs of the State
Council to be Dissolved

    National Committee on Mineral Resources shall be dissolved and its
functions transferred to the Ministry of Land and Natural Resources;

    State Radio Management Commission shall be dissolved and its functions
transferred to the Ministry of Information Industry;

    Environmental Protection Committee of the State Council shall be dissolved
and its functions transferred to the State Bureau of Environment Protection;

    Leading Group for Settling Ex-Servicemen and Retired Officers under the
State Council shall be dissolved and its functions transferred to the Ministry
of Civil Affairs;

    Securities Commission of the State Council shall be dissolved and its
functions transferred to the Securities Supervisory and Regulatory Commission
of China;

    Military Goods Trade Leading Group of the Central Military Commission and
the State Council shall be dissolved and its functions transferred to the
Commission of Science, Technology and Industry for National Defence;

    Housing System Reform Leading Group of the State Council shall be
dissolved and its functions transferred to the Ministry of Construction;

    Negotiation Committee on the General Agreement on Tariffs and Trade shall
be dissolved and its functions transferred to the Ministry of Foreign Trade
and Economic Co-operation;

    National Narcotics Control Leading Group shall be dissolved and its
functions transferred to the Ministry of Public Security;

    National Anti-Smuggling Leading Group shall be dissolved and its functions
transferred to the General Administration of Customs;

    Leading Group for Foreign Investment of the State Council shall be
dissolved and its functions transferred to the Ministry of Foreign Trade and
Economic Co-operation;

    Coordination Group for Restructuring the Foreign Exchange System under the
State Council shall be dissolved and its functions transferred to the People’s
Bank of China;

    Coordination Group for Restructuring the Financial System under the State
Council shall be dissolved and its functions transferred to the Ministry of
Finance;

    Leading Group for Fixing Boundaries under the State Council shall be
dissolved and its functions transferred to the Ministry of Civil Affairs;

    Informationization Leading Group under the State Council shall be
dissolved and its functions transferred to the Ministry of Information
Industry;

    Coordination Group for Co-operation in Economy, Trade and Technology with
African Countries under the State Council shall be dissolved and its functions
transferred to the Ministry of Foreign Trade and Economic Co-operation.

    Besides, the following organs shall be deprived of their names:

    State Port Office shall be abolished and its tasks transferred to the
General Administration of Customs;

    Machinery and Electrical Products Import and Export Office of the State
Council shall be abolished and its tasks transferred to the Ministry of
Foreign Trade and Economic Co-operation;

    Planning Group for the Collating and Publication of Ancient Books shall be
abolished and its tasks transferred to the Press and Publication
Administration of China;

    Harness-Tai-Lake Leading Group under the State Council and the
Harness-Huai-River Leading Group under the State Council shall be abolished
and their tasks transferred to the Ministry of Water Resources.

    All other advisory and coordinating organs and provisional organs will be
abolished and those which retain their name previously will not exist any
longer.






CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON IMPOSING THE CONSTRUCTION FEE FOR CULTURAL UNDERTAKINGS ON ENTERPRISES WITH FOREIGN INVESTMENT, FOREIGN ENTERPRISES AND FOREIGN INDIVIDUALS

The Ministry of Finance, the State Administration of Taxation

Circular of the Ministry of Finance and the State Administration of Taxation on Imposing the Construction Fee for Cultural Undertakings
on Enterprises with Foreign Investment, Foreign Enterprises and Foreign Individuals

CaiShuiZi [1998] No.14

January 22, 1998

Interim Measures for the Administration of Levying the Construction Fee for Cultural Undertakings stipulated by the Ministry of Finance
and the State Administration of Taxation (CaiShuiZi [1997] No.95, hereinafter referred to as Measures) has been approved on June
17, 1997 by the State Council and promulgated for the implementation on July 7, 1997. It prescribes in the Measures that the enterprises
and individuals paying the sales tax of show business and advertising should be the obligors of the construction fee for cultural
undertakings. According to this, the enterprises with foreign investment, foreign enterprises and foreign individuals with above-mentioned
obligation to pay tax should pay the construction fee for cultural undertakings.

 
The Ministry of Finance, the State Administration of Taxation
1998-01-22

 




CONSERVING ENERGY

Law of the People’s Republic of China on Conserving Energy

     (Adopted at the 28th Meeting of the Standing Committee of the Eighth National People’s Congress on November 1, 1997)

CHAPTER I GENERAL PROVISIONS

   Article 1 This Law is formulated in order to promote energy conservation by all sectors of the society, increase the efficiency in the use
of energy and its economic results, protect the environment, ensure national economic and social development, and meet the people’s
needs in everyday life.

   Article 2 The term “energy” as used in this Law refers to coal, crude oil, natural gas, power, coke, coal gas, heat, processed oil, liquefied
petroleum gas, biomass energy and other resources from which useful energy can be derived directly or through processing or conversion.

   Article 3 The term “energy conservation” as used in this Law means: enhancing management in the use of energy; adopting measures which are
technologically feasible, economically rational, and, by reducing loss and waste at every stage from production through to consumption
of energy, environmentally and socially acceptable in order to use energy more efficiently and rationally.

   Article 4 Energy conservation is a long-term concept of strategy of the State for national economic development.

The State Council and the people’s governments of provinces, autonomous regions, and municipalities directly under the Central Government
shall strengthen their efforts in energy conservation; readjust in a rational way the industrial structure, pattern of enterprises,
product mix and pattern of energy consumption; facilitate technological progress for energy conservation; reduce energy consumption
per unit output value and per unit product; and improve the exploitation, processing, conversion, transmission and supply of energy
so as to gradually increase the utilization rate of energy and promote the development of the national economy in an energy-efficient
manner.

The State encourages the development and utilization of new and renewable resources of energy.

   Article 5 The State formulates policies and plans for energy conservation, which shall be incorporated into plans for national economic and
social development so as to ensure the rational utilization of energy resources and coordinate energy conservation with economic
development and environmental protection.

   Article 6 The State encourages and supports research and dissemination of science and technology for energy conservation and makes greater
efforts to publicize and educate the people in the importance of energy conservation, spreading scientific knowledge about energy
conservation among all the people so as to enhance their awareness of the need.

   Article 7 All organizations and individuals shall fulfill their obligation to conserve energy and have the right to report against any waste
of energy.

The people’s governments at all levels shall give rewards to any organizations or individuals that achieve outstanding successes in
energy conservation or in research or dissemination of science and technology for energy conservation.

   Article 8 The administrative department for energy conservation under the State Council shall be in charge of supervision over and administration
of the work for energy conservation throughout the country. The relevant departments under the State Council shall exercise supervision
and administration in the work within the scope of their functions and responsibilities respectively.

The administrative departments for energy conservation under the local people’s governments at or above the county level shall be
in charge of supervision over and administration of the work for energy conservation in their respective administrative areas. The
relevant departments of the local people’s governments at or above the county level shall exercise supervision and administration
in the work within the scope of their functions and responsibilities respectively.

CHAPTER II ADMINISTRATION OF ENERGY CONSERVATION

   Article 9 The State Council and the local people’s governments at all levels shall strengthen leadership in energy conservation, making plans
for, coordinating, supervising, inspecting and promoting the work of energy conservation every year.

   Article 10 The State Council and the people’s governments of provinces, autonomous regions, and municipalities directly under the Central Government
shall, according to the principle of making efforts simultaneously to conserve energy and exploit it while giving first priority
to the former, decide on the optional energy conservation and exploitation projects for investment and work out plans for such investment
on the basis of a comparative demonstration in terms of technology, economy and environment with regard to energy conservation and
exploitation.

   Article 11 The State Council and the people’s governments of provinces, autonomous regions, and municipalities directly under the Central Government
shall allocate funds for energy conservation in funds for capital construction and technical upgrading to support rational utilization
of energy and exploitation of new and renewable energy resources.

People’s governments at the municipal and county levels shall allocate funds for energy conservation according to their actual conditions
in order to support rational utilization of energy and exploitation of new and renewable energy resources.

   Article 12 Special demonstration of rational use of energy shall be included in the feasibility study reports of fixed assets projects for investment.

The fixed assets projects for investment shall be designed and constructed in conformity with the standards for rational use of energy
and for energy conservation design.

Organs authorized with the power of examining and approving construction projects according to law may not approve the construction
of projects which fail to conform to the standards for rational use of energy and for energy conservation design or accept such projects
when completed.

   Article 13 It is prohibited to construct new industrial projects that are technically outdated, highly energy-consuming, and prodigiously wasting
energy. The administrative department for energy conservation under the State Council shall, together with the other relevant departments
under the State Council, prepare a catalogue of highly energy-consuming industrial projects that are prohibited from being constructed
and shall formulate specific measures for implementation.

   Article 14 The administrative department for standardization under the State Council shall formulate the national standards for energy conservation.

In the absence of the national standards mentioned above, the relevant departments under the State Council may formulate according
to law trade standards for energy conservation and submit them to the administrative department for standardization under the State
Council for the record.

Standards for energy conservation shall be technically advanced and economically rational and be subject to continued improvement.

   Article 15 The administrative department for energy conservation under the State Council shall, together with the relevant departments under
the State Council, exercise strict supervision over the trades and professions that turn out widely used energy-using products in
large quantities and urge them to adopt energy-conserving measures, make efforts to improve product design and manufacturing technology
and gradually reduce energy consumption per unit product in respective trades and professions.

   Article 16 The administrative department for energy conservation of the people’s governments at or above the provincial level shall, together
with the relevant departments of the corresponding governments, set quotas for energy consumption per unit product for products which
consume excessive amounts of energy in the course of production.

The quota for energy consumption per unit product shall be set in a scientific and rational manner.

   Article 17 The State applies an elimination system for outdated and highly energy-consuming products and equipment.

A catalogue of highly energy-consuming products and equipment to be eliminated shall be decided on by the administrative department
for energy conservation under the State Council together with the relevant departments under the State Council and made known to
the public. The said departments shall likewise formulate specific measures for implementation.

   Article 18 Enterprises may, on a voluntary basis and in accordance with the State regulations regarding certification of product quality, apply
to the administrative department for supervision over product quality under the State Council or to the certification agencies confirmed
by the organs authorized by the said department under the State Council for certifying the quality of their energy-using products
in terms of energy conservation. After being proved qualified, the enterprises shall obtain the certificates for the quality of their
energy-using products in terms of energy conservation and have labels bearing such certificates affixed to their energy-using products
or to the packaging thereof.

   Article 19 The statistics institutions of the people’s governments at or above the county level shall, together with the relevant departments
of the corresponding governments, compile accurate statistics on energy consumption and utilization and regularly issue statistics
bulletins about energy consumption per unit product for major energy-consuming products, etc.

   Article 20 The State shall exercise strict administration of energy conservation in key energy-using units.

The following are key energy-using units:

(1) units that consume an annual total of energy equaling over 10,000 tons of standard coal each; and

(2) units that consume an annual total of energy equaling between 5,000 and 10,000 tons of standard coal each, as determined by the
relevant department under the State Council or the administrative departments for energy conservation of the people’s governments
of provinces, autonomous regions, and municipalities directly under the Central Government.

The administrative departments for energy conservation of the governments at or above the county level shall see to it that the relevant
departments exercise supervision over and conduct inspection of energy utilization in the key energy-using units, and they may entrust
units that are technically qualified with the test and measurement of energy conservation.

The administrative department for energy conservation under the State Council shall, together with the relevant departments under
the State Council, set the requirements and formulate measures for energy conservation and administration in the key energy-using
units.

CHAPTER III RATIONAL USE OF ENERGY

   Article 21 Energy-using units shall, in accordance with the principle of rational use of energy, exercise strict administration of energy conservation,
formulate and implement technical measures for energy conservation in respective units so as to reduce energy consumption.

Energy-using units shall conduct education in energy conservation and train the employees concerned for the purpose.

Employees who have not received any education or training in energy conservation shall not be allowed to operate energy-consuming
machines.

   Article 22 Energy-using units shall improve their quantitative management in respect of energy, and establish a sound system of energy consumption
statistics and of energy utilization analysis.

   Article 23 Energy-using units shall establish a responsibility system for energy conservation and grant rewards to collectives and individuals
that achieve successes in energy conservation.

   Article 24 Units that manufacture energy-consuming products shall comply with the quota set for energy consumption per unit product according
to law.

Units that use energy exceeding the quota for energy consumption per unit product to a serious extent shall be required to solve the
problem within a time limit. This shall be determined by the administrative departments for energy conservation of the people’s governments
at or above the county level within the limits of authority as prescribed by the State Council.

   Article 25 Units or individuals that manufacture or sell energy-using products or use energy-using equipment shall stop producing and selling
such products and using such equipment, which the State has formally decided to eliminate, within the time limit set by the administrative
department for energy conservation together with the relevant departments under the state Council, and they may not transfer such
equipment to any other users.

   Article 26 Units and individuals that manufacture energy-using products shall have the norm for energy consumption clearly indicated on the
labels affixed to their products or in the specifications thereof.

   Article 27 Units and individuals that manufacture energy-using products may not use labels bearing forged certificates for the quality of their
energy-conserving products or labels bearing the certificates for the quality of another’s energy-conserving products.

   Article 28 Key energy-using units shall, in accordance with the relevant regulations of the State, regularly submit reports on their utilization
of energy. These reports shall include information on energy consumption, energy efficiency, analysis of the benefits derived from
energy conservation and the measures taken for energy conservation.

   Article 29 Key energy-using units shall establish positions for administration of energy, appoint employees to such positions from among the
ones who have the expertise for and practical experience in energy conservation and who have the technical post_title at or above the
level of engineer, and report the matter to the administrative department for energy conservation and the relevant departments of
the people’s government at or above the county level for the record.

Energy administrators shall be responsible for supervision over and inspection of their own units’ utilization of energy.

   Article 30 Employees of any units as well as other rural and urban residents who use such energy as electricity, coal gas, natural gas and coal
produced by enterprises shall have the amount used measured and pay for it in accordance with State regulations. Such energy may
not be used without compensation and no payment shall be made at a lump rate.

   Article 31 Units producing and supplying energy shall provide energy to energy-using units in accordance with the provisions of laws, regulations
and contracts.

CHAPTER IV BETTERMENT OF ENERGY CONSERVATION TECHNOLOGY

   Article 32 The State encourages and supports the development of advanced technology for energy conservation, determines the priority and direction
for the endeavor, establishes and keeps improving the service system for such technology, and fosters and standardizes the market
for it.

   Article 33 The State coordinates efforts for scientific research of key energy conservation projects and demonstration projects of energy conservation
and recommends energy conservation projects for dissemination, providing guidance for enterprises, institutions and individuals to
employ advanced techniques, skills, equipment and material for energy conservation.

The State formulates preferential policies in support of projects for demonstration and dissemination of energy conservation.

   Article 34 The State encourages the introduction of advanced energy conservation technology and equipment from abroad and prohibits the introduction
of outdated energy-using technology, equipment or material from abroad.

   Article 35 The funds allocated by the State Council and the people’s governments of provinces, autonomous regions, and municipalities directly
under the Central Government for scientific research shall include funds for conserving energy, which shall be used for research
in advanced technology for energy conservation.

   Article 36 People’s governments at or above the county level shall coordinate the efforts of the relevant departments to promote, in accordance
with the State’s industrial policy and policy for energy conservation technology, scientific and rational specialized production
that meets the requirements of energy conservation.

   Article 37 In designing and constructing buildings, energy-conserving building structures, materials, appliances and products shall be employed
according to the provisions of relevant laws and administrative rules and regulations in order to improve thermal and insulating
performance and reduce energy consumption for heating, cooling and lighting purposes.

   Article 38 People’s government’s at all levels shall, in accordance with the principles of suitability to local conditions, provision of multiple
forms of energy to complement each other, comprehensive utilization and stress on benefits, enhance development of energy in rural
areas and exploit and utilize methane, solar energy, wind energy, hydro energy, geothermal energy, and other renewable and new energy
resources.

   Article 39 The State encourages the development of the following universal energy conservation technologies:

(1) promote the wide use of cogeneration of heat and power and district heating, increase the utilization rate of heat and power units,
developheat-cascading technology, combined heat, power and cooling technology and combined heat, power and coal gas technology, and
increase the efficiency of thermal energy application in an all-round way;

(2) gradually achieve more-efficient operation of electric motors, fans, pumping equipment and systems; develop adjustable speed motor
drives for energy conservation and electric-electronic power saving technology; develop, produce and disseminate the use of high-quality
and low-cost energy-efficient appliances and equipment; and increase the efficiency of electric power;

(3) develop and disseminate the use of clean coal technologies, including fluidized bed combustion, smokeless combustion, and gasification
and liquefaction, that are suited to domestic coals in order to increase coal utilization efficiency; and

(4) develop and disseminate other universal energy-efficient technologies that are proved mature and yield remarkable benefits.

   Article 40 Each trade and profession shall work out policies for energy- efficient technology for its own trade or profession, develop and disseminate
new energy-efficient technologies, techniques, equipment and materials, restrict or eliminate energy-consuming outdated technologies,
techniques, equipment and materials.

   Article 41 The administrative department for energy conservation under the State Council shall, together with the relevant departments under
the State Council, formulate both general technical norms, requirements and measures for energy conservation and specific ones for
different trades and professions, and modify them in keeping with economic growth and progress in energy conservation technology
with the aim of increasing energy utilization rate, reducing energy consumption and gradually bringing China’s energy utilization
up to the advanced international level.

CHAPTER V LEGAL RESPONSIBILITY

   Article 42 Where a highly energy-consuming industrial project, the construction of which is formally prohibited by the State, is put up in violation
of the provisions of Article 13 of this Law, the administrative department for energy conservation of the people’s government at
or above the county level shall submit its proposal to the people’s government to which it belongs that the government shall, in
line with the limits of authority as prescribed by the State Council, order suspension of production or use of the project.

   Article 43 Where an enterprise that manufactures energy-consuming products uses energy exceeding the quota set for energy consumption per unit
product, in violation of the provisions of Article 24 of this Law and to a serious extent, and fails to solve the problem or meet
the requirements within the time limit, the administrative department for energy conservation of the people’s government at or above
the county level may submit its proposal to the people’s government to which it belongs that the government shall, in line with the
limits of authority as prescribed by the State Council, order suspension of production for consolidation or closedown.

   Article 44 Where an enterprise that, in violation of the provisions of Article 25 of this Law, produces or sells energy-using products which
the State has eliminated by official order, the administrative department for supervision over product quality of the people’s government
at or above the county level shall order that it stop producing or selling such products, confiscate such products and the illegal
gains therefrom and impose a fine of not less than one time but not more than five times the illegal gains; and the administrative
department for industry and commerce of the people’s government at or above the county level may revoke its business license.

   Article 45 Where an enterprise uses, in violation of the provisions of Article 25 of this Law, energy-using equipment which the State has eliminated
by official order, the administrative department for energy conservation of the people’s government at or above the county level
shall order that it stop using such equipment and have the equipment confiscated; if the circumstances are serious, the said department
may submit its proposal to the people’s government to which it belongs that the government shall, in line with the limits of authority
as prescribed by the State Council, order suspension of operation for consolidation or close-down.

   Article 46 Where a unit or individual, in violation of the provisions of Article 25 of this Law, transfers eliminated energy-using equipment
to another user, the administrative department for supervision over product quality of the people’s government at or above the county
level shall confiscate its or his illegal gains and impose a fine of not less than one time but not more than five times the illegal
gains.

   Article 47 Where a unit or individual, in violation of the provisions of Article 26 of this Law, fails to clearly indicate the norm for energy
consumption in its or his product specifications or labels, the administrative department for supervision over product quality of
the people’s government at or above the county level shall order that it or he make amends within a time limit and may impose a fine
of not more than 50,000 yuan.

Where a unit or individual, in violation of the provisions of Article 26 of this Law, indicates the norms for energy consumption,
in its or his product specifications or labels, that do not conform to the actual conditions of the products, the unit or individual
concerned shall, in addition to being punished in accordance with the provisions of the preceding paragraph, bear civil liabilities
in accordance with the provisions of relevant laws.

   Article 48 Where a unit or individual, in violation of the provisions of Article 27 of this Law, uses labels bearing forged certificates for
the quality of their energy-conserving products or labels bearing the certificates for the quality of another’s energy-conserving
products, the administrative department for supervision over product quality of the people’s government at or above the county level
shall order that it or he publicly make amends and shall confiscate its or his illegal gains and may also impose a fine of not less
than one time but not more than five times the illegal gains.

   Article 49 Any State functionary who, in the work of energy conservation, abuses his power, neglects his duty or engages in malpractices for
personal gain to such an extent as to constitute a crime shall be investigated for criminal responsibility according to law. If it
does not constitutes a crime, he shall be given administrative sanctions.

CHAPTER VI SUPPLEMENTARY PROVISIONS

   Article 50 This law shall go into force as of January 1, 1998.

    

Source:China Internet Information Center

EDITOR:Victor






LETTER OF THE GENERAL OFFICE OF THE MINISTRY OF LABOR ON ANSWER TO REQUEST FOR INSTRUCTIONS ON WHETHER THE RULES ON LABOR ADMINISTRATION OF ENTERPRISE WITH FOREIGN INVESTMENT SHALL BE APPLIED IN THE PUNISHMENT OF ENTERPRISES WITH FOREIGN INVESTMENT EMPLOYING CHILD LABOR

The General Office of the Ministry of Labor

Letter of the General Office of the Ministry of Labor on Answer to Request for Instructions on whether the Rules on Labor Administration
of Enterprise with Foreign Investment shall be Applied in the Punishment of Enterprises with Foreign Investment Employing Child Labor

LaoBanFa [1997] No.96

October 8, 1997

The Ministry of Labor of Fujian province:

Request for Instructions on whether the Rules on Labor Administration of Enterprise with Foreign Investment shall be Applied in the
Punishment on Enterprises with Foreign Investment Employing Child Labor (MinLaoGuan [1997] No.53) from your Ministry has been received.
Hereby answer the question after disquisition as follows:

Article 28 of Labor Administration of Enterprise with Foreign Investment (LaoBuFa [1994] No.246) excludes the problem of punishment
on enterprises with foreign investment employing child labor. The punishment on enterprises with foreign investment employing child
labor shall be made according to Provisions on Prohibition of Employing Child Labor (Decree No.81 of the State Council) and Provisions
on Standard of Punishment of Employing Child Labor (LaoLiZi [1992] No.27) promulgated by the Ministry of Labor.



 
The General Office of the Ministry of Labor
1997-10-08

 







REGULATIONS OF SHANGHAI MUNICIPALITY ON ROAD TRAFFIC ADMINISTRATION

Regulations of Shanghai Municipality on Road Traffic Administration

    

CHAPTER I GENERAL PROVISIONS

CHAPTER II PEDESTRIANS AND PASSENGERS

CHAPTER III VEHICLES

CHAPTER IV VEHICLE DRIVERS

CHAPTER V THE TRAFFIC OF VEHICLES

CHAPTER IV ROADS AND PARKING

CHAPTER VII PROPAGANDA AND EDUCATION FOR TRAFFIC SAFETY

CHAPTER VIII HANDLING OF TRAFFIC ACCIDENTS

CHAPTER IX LEGAL LIABILITY

CHAPTER X SUPPLEMENTARY PROVISIONS

   Article 1 With a view to strengthening road traffic administration, safeguarding traffic order, ensuring the safety of road traffic
and keeping the roads unimpeded, and in accordance with the “People’s Police Law of the People’s Republic of China”, the “Regulations
of The People’s Republic of China On Road Traffic Administration” and other relevant laws and regulations, the present Regulations
are hereby formulated by considering the actual situation of the Municipality of Shanghai.

   Article 2 The present Regulations are applicable to the traffic activities and their administration within the administrative areas
of this Municipality.

   Article 3 The Municipal Public Security Bureau is in charge of the road traffic administration of this Municipality. The municipal and
district or county traffic administrative departments of public security are specifically responsible for the road traffic
administration within areas under their jurisdiction in accordance with their respective duties.

The relevant administrative departments of the municipal, district and county people’s government shall jointly do the
road traffic administration work well.

   Article 4 The Municipality implements the system of job responsibility for traffic safety in order to reduce violations of traffic regulations
and prevent traffic accidents.

Each organ, military unit, educational institution, social organization, enterprise and institution (hereinafter referred to as
“unit”) shall put the system of job responsibility for traffic safety into effect and shall strengthen the education for
traffic safety of all the personnel in the unit and tighten vehicle control.

   Article 5 Funds for traffic control equipment, for construction, maintenance and renewal of facilities for traffic safety and funds
for propagating traffic safety shall be included in the budget of the municipal, district and county people’s government.

   Article 6 Every unit and individual person shall observe traffic regulations. Traffic administrative departments of public security
and all of the traffic policemen shall be faithful in the discharge of their duties, enforce the law impartially, and strictly
and with civility.

   Article 7 May 5th of every year shall be the publicity day for no- violation of traffic regulations, no traffic accident and road traffic
safety.

CHAPTER II PEDESTRIANS AND PASSENGERS

   Article 8 Pedestrians shall walk on the following roads:

1. Pedestrian streets;

2. Sidewalks; or

3. Pedestrian overpass or underground walk-through;

Pedestrians may walk within one mete from the edge of the street or the obstacle when there are no side walks on the street or
when there is an obstacle on sidewalks blocking the passage.

Pedestrians shall walk on the pedestrian crossings and abide by traffic signals and shall not cross over the median strip for
separating fast traffic lane from slow traffic lane when they need to cross vehicle lanes.

   Article 9 Those who push motorcycles or non-motor-driven vehicles on vehicle lanes shall observe the following rules:

1. Keep closely to the edge of the right side while pushing. They shall push along the way shown by traffic signs if there are
any;

2. When they need to cross vehicle lanes, they shall push motorcycles or non-motor vehicles in the same way as the pedestrians
cross vehicle lanes; and

3. They are not allowed to push motorcycles or non-motor vehicles two or more abreast.

   Article 10 Pedestrians are forbidden to enter any expressway, overpass and other roads of no admittance. Pedestrians are forbidden to
enter traffic control areas without authorization.

   Article 11 Pedestrians shall observe the following rules:

1. They shall not wait for cars or buses on vehicle lanes;

2. They shall not litter roads from a vehicle;

3. They shall not interfere with the driver’s operation while the motor- vehicle is going;

4. They shall not get on or off a vehicle on the vehicle lane through the left-side door; and

5. They shall not get on or off a motor-vehicle before it comes to a standstill.

   Article 12 The traffic administrative departments of public security shall inspect all vehicles.

Only after having passed the inspection conducted by the departments of public security traffic control, having been registered,
and having acquired license numberplates, driving permits or licenses can vehicles be allowed to run on roads.

   Article 13 This Municipality implements a regulatory control over the distribution of vehicle numberplates.

The annual distribution of license numberplates for motor-vehicles and the method of granting shall be put forward by the Municipal
Planning Commission jointly with the Municipal Traffic Administrative Department of Public Security and other relevant
departments and shall be implemented after approved by the Municipal Government.

This Municipality exercises a strict control over approving and issuing license numberplates for pedicabs and stops approving
and issuing license numberplates for petro-driven bicycles in urban districts.

   Article 14 A unit or an individual person that meets the conditions for applying for license numberplates may apply for the
license numberplates, driving permits or licenses from the traffic administrative department of public security
with valid certificates of vehicles in accordance with the provisions of laws and regulations of the State and this Municipality.

   Article 15 Vehicles eligible for application for vehicle license numberplates, and driving licenses and permits shall be the China-made
vehicles listed in the product catalogue of home-made vehicles published by the State and this Municipality. Imported foreign
made vehicles shall meet the requirements provided by regulations promulgated by the State.

   Article 16 This Municipality implements the third-party liability insurance for motor vehicles in accordance with the provisos of
the State law and regulations and advocates the third-party liability insurance for non-motor vehicles.

   Article 17 The traffic administrative department of public security shall inspect vehicles at regular intervals.

Those vehicles that have not been inspected at regular intervals or have been inspected but graded as unqualified by the traffic
administrative department of public securely shall not be allowed to run on roads.

Motor vehicles under one of the following conditions shall receive special inspection by public security of traffic administration.
Those motor vehicles that have not been specially inspected or have been specially inspected but graded as unqualified
shall not be allowed to run on roads:

1. Vehicles with changes in body installations, in color, or in major technical parameters;

2. Vehicles whose conditions do not tally with the State technical requirements for safe running of motor vehicles; or

3. Vehicles that have been repaired due to damage caused by major or exceptionally serious traffic accidents.

   Article 18 Those who need to have a motor vehicle refitted shall apply to the Municiple Department of Public Security and provide relevant
technical datum concerned, and are allowed to have it refitted only after examination, verification and approval.

The Municipal Department of Public Security shall participate in the expounding and proving of safety techniques and in the
appraisal of functions of new types and new models of vehicles developed in Shanghai.

   Article 19 advertisements that have been permitted to be installed on vehicle bodies shall comply with the provisions of the laws
and regulations on advertisement and shall be installed in the modes and places stipulated by the municipal Traffic Administrative
Department of Public Security.

   Article 20 A motor vehicle that need to have a transfer of owner ship, an alteration of place of registration, or to be scrapped, renovated,
alliterated, stopped using or resumed using shall comply with the relevant provisions State and municipal laws and regulations,
and the owner of the vehicle shall go to the Municipal Traffic Administrative Department of Public Security and other
relevant departments to go through the relevant procedures.

   Article 21 This Municipality shall take optimization measures for the composition of vehicle types, vehicle performance and vehicle fuel.

Any motor vehicle that meets the scrap standard in terms of a vehicle’s service life, traveling mileage, damage level, or energy
consumption, or discharging pollutant has to be scrapped.

The department that is to take up the responsibility for unified reclaiming and disintegrating of the scrapped motor-vehicles
shall be specifically appointed by the Municipal People’s Government.

   Article 22 The following acts are forbidden:

1. Installing a motor on a non-motor vehicle;

2. Assembling a vehicle with parts taken from different vehicles;

3. Replacing the vehicle’s engine, frame or chassis without permission; or

4. Using signs for special vehicles stipulated by the State without authorization.

   Article 23 Those who drive motor vehicles shall hold driving-licenses of the People’s Republic of China (here after referred to as driving-
license).

Those who drive special vehicles for the disabled with power installation or those who ride motorbikes shall
hold operation certificates of special vehicles for the disabled of Shanghai or operation certificates of motorbike
of Shanghai (hereinafter referred to as operation certificate).

   Article 24 Those who apply for trainee driving licenses shall meet the following conditions:

1. Possessing residential certificate of this Municipality;

2. In line with the age stipulated by the State that is permitted to learn to drive; and

3. Being tested to be qualified in driving adaptability.

For those who are in line with the rules of the previous section and have been passed the test on knowledge of traffic laws
and regulations by the Municipal Traffic Administrative Department of Public Security, the Municipal Traffic Administrative
Department of Public Secretly shall ratify and issue the trainee driving license within 15 days after receipt of the application
for motor-vehicles driving and other relevant certificates.

   Article 25 Those who learn to drive motor vehicles on roads shall carry on the driving practice on the roads and at the time stipulated
by the Municipal Traffic Administrative Department of Public Security.

   Article 26 Those who apply for driving trainer’s certificates of motor vehicles shall meet the following conditions:

1. Having been motor vehicle driving for over 5 years; and

2. Having caused no major traffic accidents or having not been primarily liable for any ordinary traffic accident within the latest
3 years.

Those who meet the conditions of the previous Section and have passed the qualification test offered by the Municipal Department
of Public Security, the Municipal Traffic Administrative Department of Public Security shall verify and grant them driving
trainer’s certificates of motor-vehicles corresponding to the vehicle model permitted to be driven within 15 days after the
test.

Those who have not been granted driving trainer’s certificates of motor vehicles are not allowed to engage in training work

   Article 27 Those who have applied for driving licenses of motor vehicles shall take examinations given by the Municipal Traffic Administrative
Department of Public Security. For those who have passed the examinations, the traffic administrative department
of public security shall approve and grant them driving licenses whining 15 days after the examinations.

   Article 28 Those motor-vehicle drivers who need to practice in accordance with the State stipulations, shall hang signs indicating
driving-practice in their vehicles during practice period.

   Article 29 Those who apply for operation certificates shall meet the following conditions:

1. Having been registered as permanent resident of this Municipality; and

2. Having reached the age of 16.

For those who meet the provisions of the previous Section, and have passed the examinations given by the district or
county traffic administrative department of public security, the district or county traffic administrative department
of public security shall approve and grant them operation certificates within 15 days after the examinations.

Those who are disabled not in lower limbs shall not be allowed to apply for operation certificates of the special vehicles for
the disabled; those whose disabled limbs have affected driving shall not be allowed to apply for operation certificates of
motorbikes.

   Article 30 This Municipality implements the totting-up system of traffic offenses for motor vehicle drivers.

The traffic administrative department of public security shall penalize the motor vehicle drivers who have violated traffic
laws and shall record one or two points according to the seriousness of the case.

Motor-vehicle drivers who have been accumutalively registered 10 points within one year shall accept education on special topics
for traffic safety; motor-vehicle drivers who have been registered 20 points shall have their driving licenses canceled.

   Article 31 Drivers shall strengthen their sense of abiding by traffic laws and regulations and accept the traffic safety education concerning
traffic laws and regulations, safe driving skills, and professional ethics of driving.

Schools of traffic safety education at different levels shall perfect their rules and regulations, make their educational
program practicable, and raise the quality of education.

   Article 32 Those motor vehicle drivers who have been involved in one of the following situations shall take driving adaptability test anew:

1. Having caused a major traffic accident with serious liability or having been more than primarily liable for an ordinary
traffic accident; or

2. Needed to be engaged in public passenger transport;

Those motor-vehicle drivers who have been involved in one of the following situations shall take driving adaptability
test at regular intervals:

1. Having been engaged in transporting dangerous articles; or

2. Having reached the age of 60 and being required to continue driving motor vehicles.

Those motor-vehicle drivers who failed in the adaptability tests shall not be allowed to be engaged in driving motor-vehicles
for public passenger transport or transport of dangerous articles. Those drivers who failed to pass the comprehensive appraisals
shall not be allowed to be engaged in driving any motor-vehicles.

   Article 33 The traffic administrative department of public security shall examine and verify the driving licenses of all drivers at regular
intervals.

Those drivers whose driving licenses have not been examined and verified within the stipulated time or have been proved to be
unqualified after examination and verification shall not be allowed to drive motor- vehicles.

   Article 34 The following acts are forbidden:

1. Forging, falsely claiming as their own, or buying and selling passes for motor vehicles;

2. Forging, or altering without authorization operation certificates, or using forged, illegally altered operation certificates,
or using operation certificates by assuming the real owners’ names;

3. Continuing to drive vehicles after their driving licenses or operation certificates have been revoked or canceled;

4. Continuing to drive vehicles beyond the valid time of the suspension certificates after their driving licenses or operation
certificates have been suspended;

5. Using mobile phones while driving vehicles;

6. Those disabled not in lower limbs driving special vehicles for the disabled; or

7. Non-nursing staff riding in special vehicles for the disabled.

CHAPTER V THE TRAFFIC OF VEHICLES

   Article 35 Each vehicle shall run in its own lane. When a vehicle runs into an obstacle and must make use of another lane, it shall let
the vehicle that is running in that another lane have priority of passing.

   Article 36 The traffic administrative department of public security may adopt various measures of balancing traffic volume, dividing the
time for different vehicles, delimiting restricted areas for the passing vehicles, and approving and issuing motor vehicle
passes in accordance with the principles of necessity, reasonableness and favoring the unimpeded flow of traffic.

The traffic administrative department of public security may set up or regulate temporary parking spaces to cope with the traffic
situation on the road and temporary parking needs in accordance with the provisions of the relevant traffic regulations. The
setting-up of temporary parking spaces shall be under strict control and shall not block the traffic.

The traffic administrative department of public security shall report to the Municipal People’s Government for approval and
shall issue an announcement 10 days before the implementation of such major measures as closing arterial roads, organizing
regional one-way traffic network and pedestrians-only streets. But special and emergent cases are excepted.

   Article 37 The following vehicles are forbidden to run on roads:

1. Animal-driven carts, wheelbarrows, and jinn rickshaws;

2. Caterpillar motor-vehicles;

3. Motor pedicabs;

4. Motor vehicles towing full trailers; or

5. Other prohibited vehicles stipulated by the Municipal People’s Government.

Motorbikes with suburban numberplates are forbidden to run on roads in urban areas.

Tractors are not allowed to run in downtown areas and at the time and road sections closed to traffic as stipulated by
the municipal department of public security traffic administration.

   Article 38 The traffic administrative department of public security shall check and ratify traveling routes and stops in accordance
with the principles of public passenger transport vehicles having priority, making things convenient for city residents and
making things orderly and safe, and shall give an answer within 30 days after receiving the application for establishing
new routes and setting up new stops.

Buses, trams and trolley buses, buses for special routes, long-distance buses, and commuter passenger vehicles shall run or stop
according to ratified routes and stops.

Vehicles for transporting building garbage and project waste residues and excavated earth shall run according to the ratified
routes and time.

   Article 39 Those motor vehicles that are faced with traffic jams on the road ahead shall go in proper order and shall not stop on pedestrian
crossings or on the No-Parking-Line of the road when they need to wait for passing through.

   Article 40 Non-motor-vehicles shall not run on motor-vehicle lanes when they are running on roads with median strips separating motor-vehicle
lanes from non-motor-vehicle lanes.

Non-motor vehicles shall not run on motor-vehicle lanes when they are running on roads which divisional lines separating motor-vehicle
lanes from non-motor-vehicle lanes. But the following circumstances are excepted: when vehicles temporarily stop on non-motor-vehide
lanes; when there are obstacles on non-motor-vehide lanes; and when the road surface of the lane has been damaged and the non-motor
vehicle has to make use of the nearby motor-vehicle lane.

Non-motor vehicles are forbidden to stop beyond the divisional line and the halt line at the crossroads.

Vehicles are forbidden to run or stop willfully on side pavements.

   Article 41 Overpasses are specially meant for motor-vehicles and the following vehicles are forbidden to pass through:

1. Non-motor vehicles;

2. Light motorcycles and two-wheeled motorcycles;

3. Storage battery cars and special wheeled machine vehicles;

4. Tractors;

5. Vehicles hanging signs of test run and coach driving;

6. Vehicles towing construction machinery;

7. Articulated buses, vehicles with trailers, and freight vehicles loading over 8 tons;

8. Motor vehicles with the designed top speed below 60 km. per hour; or

9. Other motor vehicles stipulated by the Municipal People’s Government.

   Article 42 Lanes of overpasses are divided into fast lanes and slow lanes. When the road ahead is clear of obstructions, vehicles shall
run according to the speed signs shown along the lane.

   Article 43 Vehicles running on the overpasses are not allowed to shift lanes willfully.

Those vehicles that are running on the overpasses and need to shift lanes shall not shift two lanes at one time and shall
not affect other vehicles’ normal running.

   Article 44 Vehicles that are to run on the overpass shall be kept in good conditions and shall not break down for lack of electricity,
water, and peter, and shall not stop willfully. For those vehicles that cannot go on running because of breakdowns, the drivers
shall move them to the right side, install warning signs according to the rules, and report the breakdown in time.

   Article 45 The development programmer and construction of urban roads shall meet the needs of road traffic development and enhance
road capacity. The municipal, district and county people’s government shall organize departments of public works, city
planning and the traffic administrative department of public security to draw up the development programmer and construction
plan of urban roads and to put the programmer and plan into effect according to the overall plan of this Municipality.

The detailed plan of roads shall be submitted to the Municipal Traffic Administrative Department of Public Security for advice
and shall be reported to the Municipal People’s Government for decision if difference in opinion occurs.

   Article 46 The department of road construction shall take the needs of road traffic and administration into consideration in designing
roads and shall let the traffic administrative department of public security examine, verify and approve the scheme of organizing
traffic and designs of installations for traffic safety and intersection canalization. The traffic administrative department
of public security shall participate in check and acceptance when the road construction is completed.

   Article 47 When pipelines and streamers are installed stretching across a road, the edge of the lower part of these objects shall be
at a distance of no less than 520cm from the road surface. When objects stretching over the side pavement from the buildings
along the road, the edge of the lower part of these objects shall be at a distance of no less than 250cm from the road surface,
and the edge of the object shall be at a distance of no less than 20cm from the vehicle traffic lane.

   Article 48 The following acts that have occupied and used roads in such a manner so as to jeopardize traffic safety or disturb traffic order
are forbidden:

1. Dumping building garbage and project waste residues and excavated earth;

2. Setting up spots to clean or maintain motor vehicles; or

3. Installing marks and signs containing traffic instructions without authorization.

   Article 49 The traffic administrative department of public security shall install traffic signal lights, signs and line markings to meet
the needs of road traffic administration and the requirements for convenient recognition according to law and shall restore
and renew these damaged or incomplete traffic installations in time.

   Article 50 Traffic distributing centers such as the newly-built, or reconstructed, or extended railway stations, harbors, airports
underground railway and light railway stations with big flows of passengers, and newly-built public buildings and residential
buildings shall be equipped supplementary or additionally with parking lots (or garages) by the construction units according
to relevant laws and regulations. The reconstructed or extended public buildings, or residential buildings shall
also be supplementary or additionally equipped with parking lots (or garages) according to relevant laws and regulations.
Those units that have actual difficulties in providing sufficient parking spaces as required by relevant laws and regulations,
shall obtain the assent from the relevant department of administration and the traffic administrative department of public
security, and shall pay the cost for the construction of parking lots (or garages) that are deficient.

Parking lots (or garages) shall be designed, constructed and put into use simultaneously with the principal part of the project.

   Article 51 The traffic designs of parking lots (or garages) shall tally with the installation standards for parking lots (or garages) stipulated
by the State and this Municipality. The number of parking spaces, the position of the entrances and exits the installation
of traffic signs and line markings shall be examined, verified and approved by the traffic administrative department
of public security.

When the contraction of the parking lots (or garages) is completed, the construction units shall apply to the traffic administrative
department of public security that has originally verified and approved the project for checking and acceptance of the number
of parking spaces, the position for entrances and exits, the installation of traffic signs and line markings. After they
are checked and accepted, they may be made available to users. If they have not been checked or have been checked but not
accepted, they are not allowed to be made available to users.

Social parking lots (or garages) and parking lots (or garages) attached to public buildings shall be open to the vehicles of the
whole society.

   Article 52 When there is a change in the use of the parking lots (or garages), approval of the administrative departments of planning
and construction and the assent of the traffic administrative department of public security shall be obtained, and new parking
spaces shall be built to make up the deficiency of parking spaces, or an amount equivalent to 130% of the construction cost
of the deficient number of parking spaces shall be paid.

The deficient construction cost shall be collected by the municipal administrative department of construction and it shall
be specifically used for building social parking lots (or garages), and shall not be diverted to other purposes.

   Article 53 The traffic administrative department of public security has the power to tow away following motor vehicles by compulsory means:

1. Those parked in violation of traffic regulations;

2. Those unable to run due to traffic accident; or

3. Those unable to run due to breakdowns and impeding road traffic.

CHAPTER VII PROPAGANDA AND EDUCATION FOR TRAFFIC SAFETY

   Article 54 Under the leadership of the people’s government at the same level, the traffic administrative department of public security conducts
propaganda and education for traffic safety, and perform the following duties:

1. Formulating and implementing examination and verification of responsibility and objective for traffic safety and measures
of rewards and penalties;

2. Guiding and supervising various units in implementing the system of responsibility for traffic safety;

3. Organizing competitions for traffic safety and activities of appraisal through comparison; and

4. Carrying out other activities of propaganda and education for traffic safety.

   Article 55 A unit shall clearly appoint persons to specially take charge of the work of traffic safety and perform the following duties:

1. Organizing people to formulate its own system of traffic safety, implementing responsibilities and objectives for traffic
safety and taking preventive measures;

2. Organizing the study of knowledge about traffic safety;

3. Organizing the inspections of vehicle safety, so as to guarantee the safety of vehicles, and to remove in time a hidden peril
of an accident.

   Article 56 A unit shall launch activities of propaganda and education for traffic safety among staff members.

Middle schools and primary schools shall carry out educational activities on special topics of traffic safety taking
content of knowledge of traffic safety as content.

   Article 57 Departments of the press publication broadcast, film, television, culture, and education, and mass organizations such as
trade unions, the women’s federation, and the Communist Youth

REGULATIONS ON BROADCASTING AND TELEVISION ADMINISTRATION

Category  CULTURE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-08-11 Effective Date  1997-09-01  


Regulations on Broadcasting and Television Administration

Chapter I  General Provisions
Chapter II  Broadcasting Stations and Television Stations
Chapter III  Networks of Broadcasting and Television Transmission
Chapter IV  Broadcasting and Television Programmes
Chapter V  Penalty Provisions
Chapter VI  Supplementary Provisions

(Adopted at the 61st Executive Meeting of the State Council on August 1,

1997, and promulgated by Decree No.228 of the State Council of the People’s
Republic of China on August 11, 1997)
Chapter I  General Provisions

    Article 1  These Regulations are formulated for the purpose of enhancing
broadcasting and television administration, developing the cause of
broadcasting and television and promoting the building of socialist
spiritual civilization and material civilization.

    Article 2  These Regulations shall be applicable to such activities as
the establishment of broadcasting stations and television stations and
gathering and editing, making, broadcasting and transmitting broadcasting
and television programmes within the territory of the People’s Republic of
China.

    Article 3  The cause of broadcasting and television should adhere to
the orientation of serving the people and socialism and persevere in
correct media guidance.

    Article 4  The State develops the cause of broadcasting and television.
People’s governments at or above the county level should integrate the cause
of broadcasting and television into national socio-economic development
plans and gradually increase input in the light of requirements and
financial resources to improve the coverage of broadcasting and television.

    The State supports the development of the cause of broadcasting and
television in rural areas.

    The State supports the nationalities autonomous areas and poor remote
regions in the development of the cause of broadcasting and television.

    Article 5  The department of broadcasting and television administration
under the State Council shall be responsible for broadcasting and television
administration across the country.

    The departments or agencies in charge of broadcasting and television
administration (hereinafter referred to as departments of broadcasting and
television administration) of local people’s governments at or above the
county level shall be responsible for broadcasting and television
administration within their respective administrative areas.

    Article 6  National societies for the broadcasting and television trade
shall practise self-disciplined management in accordance with their
constitutions and conduct activities under the guidance of the department
of broadcasting and television administration under the State Council.

    Article 7  The State shall give rewards to units and individuals
having made outstanding contributions to the development of the cause
of broadcasting and television.
Chapter II  Broadcasting Stations and Television Stations

    Article 8  The department of broadcasting and television administration
under the State Council shall be responsible for the formulation of the plan
for the establishment of broadcasting stations and television stations
nationwide and the determination of the aggregate, distribution and structure
of broadcasting stations and television stations.

    The broadcasting stations and television stations referred to in these
Regulations mean agencies gathering and editing, making and broadcasting
broadcasting and television programmes via cable or wireless mode.

    Article 9  Establishment of a broadcasting station or television station
should fulfil the following qualifications:

    (1) having specialized personnel of broadcasting and television conforming
to state provisions;

    (2) having technical equipment of broadcasting and television conforming
to state provisions;

    (3) having necessary capital construction funds and stable fund guarantee;
and

    (4) having a necessary site.

    In addition to compliance of the qualifications listed in the preceding
paragraph, examination and approval of establishment of a broadcasting
station or television station should also conform to the state construction
plan for broadcasting and television and the technological development plan.

    Article 10  Broadcasting stations and television stations shall be
established by departments of broadcasting and television administration
of people’s governments of counties and municipalities without subordinate
districts and above, among which educational television stations may be
established by departments of education administration of people’s governments
of municipalities with subordinate districts and autonomous prefectures and
above. No other units or individuals shall establish broadcasting stations
and television stations.

    The State prohibits the establishment of foreign capital operated,
Sino-foreign joint venture and Sino-foreign cooperative venture broadcasting
stations and television stations.

    Article 11  The central broadcasting station and television station shall
be established by the department of broadcasting and television administration
under the State Council. For the establishment of broadcasting stations and
television stations by localities, applications shall be filed by the
departments of broadcasting and television administration of people’s
governments of counties and municipalities without subordinate districts
and above and upon the examination and consent of the people’s governments
at the same level, submitted level by level and preparations for construction
may be undertaken only upon the examination and approval of the department
of broadcasting and television administration under the State Council.

    The central educational television station shall be established by the
department of education administration under the State Council, subject to
the examination and approval of the department of broadcasting and television
administration under the State Council. For establishment of educational
television stations by localities, applications shall be filed by the
departments of education administration of local people’s governments of
municipalities with subordinate districts and autonomous prefectures and
above, submitted level by level upon gaining the consent of the department
of broadcasting and television administration at the same level and the
examination and approval of the people’s government at the same level,
and preparations for construction may be undertaken only upon the examination
and approval of the department of broadcasting and television administration
under the State Council following the examination and verification of the
department of education administration under the State Council.

    Article 12  Engineering construction of broadcasting stations and
television stations the preparations for construction of which have been
approved should proceed in accordance with the construction procedures and
technological standards for broadcasting and television prescribed by the
State.

    Licences for broadcasting station and television station shall be issued
to those broadcasting stations and television stations the construction of
which has been completed upon examination by the department of broadcasting
and television administration under the State Council which finds them to
conform to the qualifications. Broadcasting stations and television stations
should make and broadcast programmes in accordance with such particulars
as the station name, station sign, programme scope and set number of
programmes specified in the licences.

    Article 13  Changes in station names, station signs, programme scope or
set number of programmes of broadcasting stations and television stations
shall be subject to the approval of the department of broadcasting and
television administration under the State Council.

    No broadcasting station or television station shall lease or transfer
broadcasting time bands.

    Article 14  Termination of a broadcasting station or television station
shall be submitted in accordance with the original examination and approval
procedures, and its licence shall be withdrawn by the department of
broadcasting and television administration under the State Council.

    A broadcasting station or television station which finds it necessary
to suspend broadcasts owing to extraordinary circumstances should be
subject to the consent of the department of broadcasting and television
administration of the people’s government at or above the provincial level;
a broadcasting station or television station the continuous stoppage of
broadcasting of which exceeds 30 days without approval shall be regarded as
termination and shall go through the relevant formalities pursuant to the
provisions of the preceding paragraph.

    Article 15  The departments of broadcasting and television administration
of people’s governments at or above the county level of the localities shall
be responsible for the examination and verification of the establishment of
broadcasting and television stations by villages and townships therein, and
the examination and approval of which shall be handled in accordance with the
relevant provisions of the department of broadcasting and television
administration under the State Council.

    Examination and approval of establishment of cable broadcasting and
television stations by organs, army units, societies, enterprises and
institutions shall be handled pursuant to the relevant provisions of the
State Council.

    Article 16  No unit or individual shall forcibly enter broadcasting
stations and television stations, or damage the installations of broadcasting
stations and television stations, or endanger their secure broadcasts.
Chapter III  Networks of Broadcasting and Television Transmission
Coverage

    Article 17  The department of broadcasting and television administration
under the State Council shall carry out unified planning on the coverage of
broadcasting and television transmissions across the country in accordance
with uniform state standards, and construction and development shall be
carried out at different levels. The departments of broadcasting and
television administration of local people’s governments at or above the county
level should, pursuant to relevant state provisions, construct and manage
networks of broadcasting and television transmission coverage within their
respective administrative areas.

    Construction of networks of broadcasting and television transmission
coverage including full exploitation of all kinds of existing resources of
public telecommunications of the state should ensure the quality and
unimpeded traffic of transmissions of broadcasting and television programmes.

    The networks of broadcasting and television transmission coverage
referred to in these Regulations shall be composed of broadcasting and
television transmitting stations, relay stations (including differential
relay stations and reception relay stations, the same hereinafter),
broadcasting and television satellites, satellite up-link stations,
satellite reception and relay stations, microwave stations, monitoring
stations (posts) and networks of cable broadcasting and television
transmission coverage.

    Article 18  The department of broadcasting and television administration
under the State Council shall be responsible for the designation and
allocation of frequencies of special-purpose channels and bands for
broadcasting and television and the verification and issuance of certificates
of designation and allocation of special-purpose frequencies.

    Article 19  Establishment of broadcasting and television transmitting
stations, relay stations, microwave stations, satellite up-link
stations should, pursuant to relevant state provisions, go through
formalities of examination and approval at the radio control agencies of the
State, or the province, autonomous region and municipality directly under the
Central Government on the strength of the certificates of designation and
allocation of special-purpose frequencies issued by the department of
broadcasting and television administration under the State Council and obtain
radio station licences.

    Article 20  Broadcasting and television transmitting stations and
relay stations should transmit and relay broadcasting and television
programmes in accordance with the relevant provisions of the department
of broadcasting and television administration under the State Council.

    Frequencies, channels and bands of broadcasting and television
transmitting stations and relay stations the use of which has been verified
and approved shall not be leased or transferred, and all technical
parameters already approved shall not be changed without authorization.

    Article 21  No broadcasting and television transmitting station and
relay station shall broadcast self-sponsored programmes or insert
advertisements without authorization.

    Article 22  Site selection, design, construction and installation of
projects of the networks of broadcasting and television transmission coverage
should be handled pursuant to the relevant state provisions and undertaken
by units with acquisition of corresponding certificates of qualifications
according to law.

    Construction of projects of the networks of broadcasting and television
transmission coverage and the technical equipment of broadcasting and
television used therein should conform to state standards and trade
standards. Acceptance checks shall be organized by the departments of
broadcasting and television administration upon completion of the projects
which may be put into operation only upon passing the acceptance checks.

    Article 23  Regional networks of cable broadcasting and television
transmission coverage shall be set up and managed by the departments of
broadcasting and television administration of local people’s governments at
or above the county level.

    Plans and construction schemes for the regional networks of cable
broadcasting and television transmission coverage shall be carried out upon
approval by the departments of broadcasting and television administration of
people’s governments of the provinces, autonomous regions and municipalities
directly under the Central Government when submitted by the departments of
broadcasting and television administration of people’s governments at the
county level or those of the municipalities with subordinate districts and
autonomous prefectures, or carried out upon approval by the department of
broadcasting and television administration under the State Council when
submitted by the departments of broadcasting and television administration of
people’s governments of the provinces, autonomous regions and municipalities
directly under the Central Government.

    Only one regional network of cable broadcasting and television
transmission coverage shall be set up in the same administrative region. Cable
television stations shall be hooked up with the regional network of cable
television transmission coverage according to the plan.

    Article 24  No unit or individual shall broadcast any programme via a
network of cable broadcasting and television transmission coverage without
approval.

    Article 25  Control and use of satellite space band resources for the
transmission of broadcasting and television programmes should conform to the
relevant state provisions.

    Transmission of broadcasting and television programmes using the satellite
mode by broadcasting stations or television stations should conform to the
requirements prescribed by the State and be subject to the examination,
verification and approval of the department of broadcasting and television
administration under the State Council.

    Article 26  For installation and use of ground reception facilities for
satellite broadcast and television, an application for the acquisition of a
licence should, pursuant to the relevant state provisions, be submitted to the
department of broadcasting and television administration of the people’s
government of the province, autonomous region or municipality directly under
the Central Government. Import of decipherer, depressurizers and other ground
reception facilities for satellite broadcast and television for external
satellite broadcasting and television programmes shall be subject to the
examination and approval of the department of broadcasting and television
administration under the State Council.

    Article 27  Infringing on or occupying, gathering together to rob,
or destroying in other forms facilities of networks of broadcasting and
television transmission coverage by any unit or individual shall be
prohibited.

    Article 28  No unit or individual shall infringe on or occupy and
interfere with the special-purpose broadcasting and television frequencies,
or intercept the transmission of, interfere with or descramble
broadcast and television signals.

    Article 29  The departments of broadcasting and television administration
of people’s governments at or above the county level should adopt diverse
forms of satellite transmission, radio relay, cable broadcast and cable
television to improve the rate of broadcasting and television coverage in
rural areas.
Chapter IV  Broadcasting and Television Programmes

    Article 30  Broadcasting stations and television stations should run
programmes according to the scope for the setting up of programmes approved by
the department of broadcasting and television administration under the State
Council.

    Article 31  Broadcasting and television programmes shall be made by
broadcasting stations, television stations and broadcasting and television
programme production and marketing units the establishment of which has been
approved by the departments of broadcasting and television administration
of people’s governments at or above the provincial level. No broadcasting
station or television station shall broadcast broadcasting and television
programmes produced by units without the acquisition of licenses for
broadcasting and television programme production and marketing.

    Article 32  Broadcasting stations and television stations should improve
the quality of broadcasting and television programmes, increase the number of
excellent Chinese programmes and ban the production and broadcast of
programmes containing any of the following contents:

    (1) that which endangers the unity, sovereignty and territorial integrity
of the country;

    (2) that which endangers state security, honour and interests;

    (3) that which instigates nationality separation or disrupts nationality
solidarity;

    (4) that which divulges state secrets;

    (5) that which slanders or insults others;

    (6) that which propagates obscenity, superstition or plays up violence; and

    (7) other contents prohibited under provisions of laws and regulations.

    Article 33  Broadcasting stations and television stations should conduct
pre-broadcast censorship and rebroadcast censorship over the contents of
their respective broadcasting and television programmes pursuant to the
provisions of Article 32 of these Regulations.

    Article 34  Newscasts and television news should be true and just.

    Article 35  Establishment of a television opera production unit shall be
subject to the approval of the department of broadcasting and television
administration under the State Council and a licence for television
opera production obtained before it may produce television operas.

    Control measures for television opera production and broadcast shall be
formulated by the department of broadcasting and television administration
under the State Council.

    Article 36  Broadcasting stations and television stations should use
standardized spoken and written languages.

    Broadcasting stations and television stations should popularize the
common spoken Chinese in common use nationwide.

    Article 37  Local broadcasting stations, television stations or
broadcasting and television stations should relay broadcasting and
television programmes pursuant to the relevant provisions of the department
of broadcasting and television administration under the State Council.

    Broadcasting and television stations set up by villages and townships
shall not run their own television programmes.

    Article 38  Broadcasting stations and television stations should
broadcast broadcasting and television programmes according to the advance
programme announcements; for necessity of changing or adjusting the original
programmes the advance announcements of which have been made, notices should
be given to the public in advance.

    Article 39  External films and television operas to be used for
broadcast by broadcasting stations and television stations must be subject
to the examination and approval of the department of broadcasting and
television administration under the State Council. Other external
broadcasting and television programmes to be used for broadcast by
broadcasting stations and television stations must be subject to the
examination and approval of the department of broadcasting and television
administration under the State Council or its authorized agencies.

    Broadcasting and television programmes to be provided to users abroad
should be reported to the departments of broadcasting and television
administration of people’s governments at or above the provincial level for
the record pursuant to relevant state provisions.

    Article 40  The percentage of time of broadcasting external broadcasting
and television programmes and the total broadcast time of broadcasting and
television programmes by broadcasting stations and television stations shall
be determined by the department of broadcasting and television administration
under the State Council.

    Article 41  Import and relay of external broadcasting and television
programmes via satellite and other modes by broadcasting stations and
television stations must be subject to the approval of the department of
broadcasting and television administration under the State Council.

    Article 42  Broadcast of advertisements by broadcasting stations and
television stations must not exceed the time prescribed by the department
of broadcasting and television administration under the State Council.

    Broadcasting stations and television stations should broadcast non-profit
advertisements.

    Article 43  The department of broadcasting and television administration
under the State Council may, under extraordinary circumstances, make a
decision to suspend the broadcast, change a particular programme or designate
the relay of a particular programme.

    Article 44  Educational television stations should broadcast all types
of educational and teaching programmes in accordance with the relevant state
provisions, and should not broadcast films or television films not related
to the contents of teaching.

    Article 45  Sponsorship of international or national exchanges and
transactions of broadcasting and television programmes should be subject to
the approval of the department of broadcasting and television administration
under the State Council and should be handled by designated units. Sponsorship
of regional exchanges and transactions of broadcasting and television
programmes should be subject to the approval of the department of
broadcasting and television administration of the people’s government of the
province, autonomous region or municipality directly under the Central
Government of the locality wherein such activities are to be conducted,
and they shall be handled by designated units.

    No unit or individual shall sponsor any exchange or transaction of
broadcasting and television programmes without approval.

    Article 46  Broadcast and use of broadcasting and television programmes
having copyrights shall be handled pursuant to the provisions of the
Copyright Law of the People’s Republic of China.
Chapter V  Penalty Provisions

    Article 47  Whoever, in violation of the provisions of these
Regulations, establishes a broadcasting station, or a television station,
or an educational television station, or a network of cable broadcasting and
television transmission coverage, or a broadcasting and television station
without authorization shall be banned by the department of broadcasting and
television administration of the people’s government at or above the county
level with its equipment for illegal activities confiscated and be imposed
a fine more than 100% and less than 200% of the total amount of investment.

    Establishment of a broadcasting and television transmitting station, or
a relay station, or a microwave station, or a satellite up-link
station shall be banned by the department of broadcasting and television
administration of the people’s government at or above the county level with
its equipment for illegal activities confiscated and be imposed a fine more
than 100% and less than 200% of the total amount of investment; or it will be
penalized by the radio control agency pursuant to the relevant provisions
of state radio control.

    Article 48  Establishment of a broadcasting and television programme
production and marketing unit without authorization or making television
operas and other broadcasting and television programmes without authorization
in violation of the provisions of these Regulations shall be banned by the
department of broadcasting and television administration of the people’s
government at or above the county level with its special-purpose tools,
equipment and programme carriers for illegal activities confiscated, and be
concurrently imposed a fine more than RMB 10,000 Yuan and less than RMB
50,000 Yuan.

    Article 49  Production, broadcasting and providing to users abroad of
programmes containing contents prohibited by the provisions of Article 32 of
these Regulations in violation of the provisions of these Regulations shall be
directed to stop the production, broadcasting and providing to users abroad
with its programme carriers surrendered and taken over, and be concurrently
imposed a fine more than RMB 10,000 Yuan and less than RMB 50,000 Yuan; where
the circumstances are serious, the original approval organ shall revoke its
licence; violators of public security provisions shall be penalized for
public security violations by the public security organ according to law;
where the offence constitutes a crime, criminal responsibilities shall be
investigated according to law.

    Article 50  Whoever, in violation of the provisions of these Regulations,
commits any of the following acts shall be directed by the department of
broadcasting and television administration of the people’s government at or
above the county level to stop the illegal activity, be administered a
warning with his/her illegal income confiscated and may concurrently
be imposed a fine less than RMB 20,000 Yuan; where the circumstances are
serious, the original approval organ shall revoke the licence:

    (

DECISION OF THE STATE COUNCIL ON REVISING THE PROVISIONS ON THE ADMINISTRATION OF COLLECTION OF THE MINERAL RESOURCES COMPENSATION

Category  GEOLOGY, MINERAL RESOURCES AND ENERGY INDUSTRY Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-07-03 Effective Date  1997-07-03  


Decision of the State Council on Revising the Provisions on the Administration of Collection of the Mineral Resources Compensation


APPENDIX: PROVISIONS ON THE ADMINISTRATION OF COLLECTION OF THE MINERAL
Appendix:  Table for Rates of Mineral Resources Compensation

(Promulgated by Decree No. 222 of the State Council of the People’s

Republic of China on July 3, 1997, and effective as of the same date)

    The State Council has decided to amend the first paragraph of Article 10
of the Provisions on the Administration of Collection of the Mineral Resources
Compensation as follows: “The mineral resources compensation collected shall
be timely and fully turned over to the respective treasuries according to the
distribution ratio between the Central Government and the provinces,
autonomous regions or municipalities directly under the central government set
forth in the following paragraph, and shall not be settled again at the end of
the year.”

    This Decision shall come into effect on the date of promulgation.

    Appendix: The former provisions of the first paragraph of Article 10 of
the Provisions on the Administration of Collection of the Mineral Resources
Compensation before amended

    “The mineral resources compensation collected shall be timely and fully
turned over to the Central Treasury on the spot, and be separately settled at
the end of the year according to the distribution ratio between the Central
Government and the provinces, autonomous regions or municipalities directly
under the central government set forth in the following paragraph.”

APPENDIX: PROVISIONS ON THE ADMINISTRATION OF COLLECTION OF THE MINERAL
RESOURCES COMPENSATION (1997 revision) (Promulgated by Decree No. 150 of the
State Council of the People’s Republic of China on February 27, 1994, and
revised on July 3, 1997)

    Article 1  These Provisions are formulated, in accordance with the
relevant stipulations of the Mineral Resources Law of the People’s Republic
of China, in order to ensure and promote the exploration, protection and
rational development of mineral resources, and to safeguard the property
rights to and interests of the state to mineral resources.

    Article 2  The mineral resources compensation shall be paid, in
accordance with these Provisions, for mining mineral resources within the
territory of the People’s Republic of China and the sea areas under the
jurisdiction. Where laws or other administrative regulations provide
otherwise, their stipulations shall apply.

    Article 3  The mineral resources compensation shall be computed and
collected at a certain ratio of the sales income of mineral products. The
mineral resources compensation paid by the enterprises shall be included in
the administration fees.

    For any concessioners holding the mining licenses that process mineral
products by themselves, their sales income shall be calculated according to
state prices; where the state does not fix the prices, their sales income
shall be calculated according to the average prices of the mineral products
on the local markets at the time of collection.

    For concessioners that sell mineral products out of the territory, their
sales income shall be calculated according to the prevailing sales prices on
the international markets.

    The term “mineral products” mentioned in these Provisions shall refer to
those products extracted or mined and separated from mineral resources which,
having been mined or separated, are no longer in their natural state.

    Article 4  The mineral resources compensation shall be paid by
concessioners.

    The mineral resources compensation shall be settled in the currency used
in the sales of mineral products; where the mineral products are processed by
concessioners themselves, the settlement shall be made in the currency used
in sales of the end products.

    Article 5  The mineral resources compensation shall be calculated in
accordance with the following formulas:

    amount of the mineral resources compensation to be collected = sales
income of mineral products x compensation rate x coefficient of mining
recovery rate

    Where,

    coefficient of mining recovery rate  =

              approved mining recovery rate

             ________________________________

              actual mining recovery rate

    

    The approved mining recovery rate shall be the rate prescribed in the
mine design that has been approved in accordance with the relevant provisions
of the state. With regard to those mining enterprises that, according to the
relevant provisions of the state, are not required to prepare the mine design
in addition to the mining plan, the mining recovery rate shall be determined
by the administrative departments in charge of geology and mineral resources
under the local people’s governments at or above the county level together
with other relevant departments at the same level.

    For those minerals whose mineral resources compensation cannot be
calculated in the formulas provided for in paragraphs 1 and 2 hereof, the
competent department in charge of geology and mineral resources under the
State Council shall make other calculation formulas together with the
department of finance under the State Council separately.

    Article 6  The mineral resources compensation shall be collected at the
rates prescribed in the appendix of these Provisions.

    Any adjustment to the rates of the mineral resources compensation shall
be jointly determined by the department of finance under the State Council,
the competent department in charge of geology and mineral resources under the
State Council and the competent department in charge of planning under the
State Council, and submitted to the State Council for approval and
implementation.

    Article 7  The mineral resources compensation shall be collected by the
competent departments in charge of geology and mineral resources together
with the departments of finance.

    Where a mining district is within a county-level administrative region,
the administrative department in charge of geology and mineral resources
under the people’s government at the county level of the place where the
mining district is located shall be responsible for collecting the mineral
resources compensation.

    Where a mining district extends across more than one administrative
region at or above the county level, the administrative department in charge
of geology and mineral resources under the people’s government at the next
higher level of all the administrative regions involved shall be responsible
for collecting the mineral resources compensation.

    Where a mining district extends across more than one provincial
administrative region, or is within the territorial seas of the People’s
Republic of China or other sea areas under its jurisdiction, the competent
department in charge of geology and mineral resources under the provincial
people’s governments authorized by the competent department in charge of
geology and mineral resources under the State Council shall be responsible
for collecting the mineral resources compensation.

    Article 8  Concessioners shall pay the mineral resources compensation for
the first half of each year on or before July 31 of the year, and pay the
mineral resources compensation for the second half of the year on or before
January 31 of the following year.

    Concessioners shall, when their mining activities are suspended or
terminated, settle and pay their mineral resources compensation.

    Article 9  Concessioners shall, at the time of paying their mineral
resources compensation, submit at the same time the data as to the mineral,
the output, the sales volume, the sales price, the actual mining recovery
rate and others of their mineral products mined.

    Article 10  The mineral resources compensation collected shall be timely
and fully turned over to the respective treasures according to the
distribution ratio between the Central Government and the provinces,
autonomous regions or municipalities directly under the central government set
forth in the following paragraph, and shall not be settled again at the end of
the year.

    The distribution ratio of the mineral resources compensation between the
central government and the provinces or municipalities directly under the
central government shall be 5:5; and that between the central government and
autonomous regions shall be 4:6.

    Article 11  The mineral resources compensation shall be included in the
state budget, conducted the specific management and mainly used for mineral
resources exploration.

    The department of finance under the State Council, the competent
department in charge of geology and mineral resources under the State Council
and the competent department in charge of planning under the State Council
shall be jointly responsible for formulating the specific measures for the
use and management of the mineral resources compensation received by the
central government.

    The people’s government of a province, autonomous region or municipality
directly under the central government shall be responsible for formulating
the specific measures for the use and management of the mineral resources
compensation received by the localities.

    Article 12  Concessioners may be exempted from the mineral resources
compensation, upon joint approval of the competent department in charge of
geology and mineral resources under the provincial government and the
department of finance at the same level, under any one of the following
circumstances:

    (1) where mineral products are recovered from barren rock (waste rock);

    (2) where non-security left-over ore bodies of closed mines are mined
upon approval pursuant to the relevant provisions of the state; and

    (3) other circumstances where the exemption from the mineral resources
compensation are determined by the competent department in charge of geology
and mineral resources under the State Council together with the department of
finance under the State Council.

    Article 13  The mineral resources compensation may be reduced, upon joint
approval of the competent department in charge of geology and mineral
resources under the provincial people’s government and the department of
finance at the same level, for concessioners under the following
circumstances:

    (1) where the mineral products are recovered from tailings;

    (2) where the low grade mineral resources that are below the industrial
grade or whose reserves have not been calculated are mined;

    (3) where the mineral resources under waters, buildings, or vital
communication lines are mined in accordance with the law;

    (4) where policy losses are incurred as a result of carrying out the
state fixed prices; and

    (5) other circumstances where the reduction of the mineral resources
compensation are determined by the competent department in charge of geology
and mineral resources under the State Council together with the department of
finance under the State Council.

    Approval from the provincial people’s government shall be required if the
mineral resources compensation to be reduced for a concessioner exceeds 50%
of the amount of the mineral resources compensation payable.

    Any reduction approval of the mineral resources compensation shall be
reported to both the competent department in charge of geology and mineral
resources under the State Council and the department of finance under the
State Council for record.

    Article 14  In case any concessioner fails to pay the mineral resources
compensation in full within the prescribed time limit, the collecting
authorities shall, in addition to setting a dead line for the payment, impose
an overdue fine of 0.2% per day on the amount in arrears, counting from the
day on which the payment becomes overdue.

    In case any concessioner fails to pay the mineral resources compensation
fees and the overdue fine in accordance with the provisions of the preceding
paragraph, the collecting authorities shall impose penalty of up to three
times the amount of the compensation payable. If the case is serious, the
concessioner’s mining license shall be revoked by the original licensing
authorities.

    Article 15  In case any concessioners do not pay or underpay the mineral
resources compensation by means of misrepresenting the minerals, concealing
the output, sales volume, or misrepresenting the selling prices or actual
mining recovery rate, the collecting authorities shall pursue the payment
of the compensation payable, and impose a penalty of up to five times the
amount of the compensation payable; if the case is serious, the
concessioner’s mining license shall be revoked by the original licensing
authorities.

    Article 16  In case any concessioner fails to submit the relevant data
pursuant to the provisions of Article 9 of these Provisions, the collecting
authorities shall set a deadline for submission; in case of failure to
submit within the prescribed time limit, a fine up to 5,000 yuan shall be
imposed; and in case the concessioner still fails to submit the data, its
mining license may be revoked by the original licensing authorities.

    Article 17  The penalties imposed on and overdue fines paid by
concessioners in accordance with these Provisions shall be turned over to
the State Treasury.

    Article 18  If a party concerned is not satisfied with the decision on
administrative penalties, the party may, within 15 days from the date of
receipt of the notification on the administrative penalties, apply for
reconsideration to the authorities at the next higher level than that which
made the decision on the administrative penalties; the party may also
directly institute legal proceedings in the people’s court within 15 days
from the date of receipt of the notification on the penalties.

    In the event of the party concerned failing both to apply for
reconsideration or initiate legal proceedings with a people’s court and to
comply with the penalty decision within the specified period, the authorities
which made the decision on the penalties may apply to the people’s court for
enforcement.

    Article 19  Where the contents of any local regulations, rules or
administrative documents promulgated by local people’s governments before the
promulgation of these Provisions are in conflict with these Provisions, these
Provisions shall prevail.

    Article 20  The people’s governments of provinces, autonomous regions and
municipalities directly under the central government may, in accordance with
these Provisions, formulate measures for the implementation of these
Provisions.

    Article 21  The Ministry of Geology and Mineral Resources shall be
responsible for the interpretation of these Provisions.

    Article 22  These Provisions shall enter into force on April 1, 1994.

Appendix:  Table for Rates of Mineral Resources Compensation


_____________________________________________________________________________
Minerals                                                          
Rate ( % )
_____________________________________________________________________________
petroleum                                                            
1      
_____________________________________________________________________________
natural gas                                                          
1
_____________________________________________________________________________
coal, coal-related gas                                                1
_____________________________________________________________________________
uranium, thorium                                                      3

_____________________________________________________________________________
stone coal, oil sand                                                  1
_____________________________________________________________________________
natural bitumen                                                      
2
_____________________________________________________________________________
geothermal resources                                                  3
_____________________________________________________________________________
oil shale                                                            
2
_____________________________________________________________________________
iron, manganese, chromium, vanadium, titanium                        
2
_____________________________________________________________________________
copper, lead, zinc, bauxite, nickel, cobalt,
tungsten, tin, bismuth, molybdenum, mercury,                          2
antimony, magnesium
______________________________________________________________________________
gold, silver, platinum, palladium, ruthenium,
osmium, iridium, rhodium                                              4
_____________________________________________________________________________
niobium, tantalum, beryllium, lithium, zirconium,
strontium, rubidium, cesium                                          
3
_____________________________________________________________________________
lanthanum, cerium, praseodymium, neodymium,
samarium, europium, yttrium, gadolinium, terbium                      3
dysprosium, holmium, erbium, thulium, ytterbium                    
lutetium
_____________________________________________________________________________
ion-type rare earths                                                  4
_____________________________________________________________________________
scandium, germanium, gallium, indium, thallium,
hafnium, rhenium, cadmium, selenium, tellurium,                      
3
_____________________________________________________________________________
gemstone, jade, gem diamond                                          
4
_____________________________________________________________________________
graphite, phosphorus, natural sulphur, pyrite,
sylvite, boron, crystal (piezoelectric crystal,
smelting crystal, optical crystal, craft crystal),
corundum, kyanite, sillimanite, andalusite,                          
2
tabular spar, nitratite, talc, asbestos, crocidolite,
mica, feldspar, garnet, pyrophyllite, diopside,
tremolite, vermiculite, zeolite, alumstone,
mirabilite (including glauberite)
_____________________________________________________________________________
diamond, gypsum, anhydrite, barite, witherite,
natural alkali, calcite, Iceland spar, magnesite,
fluorite (including common fluorite and optical
fluorite), topaz, tourmaline, agate, mineral
pigments (ochre, pigment loess), limestone (for
use in calcium carbide, manufactured soda,
fertilizers, flux, glass, cement, construction
stone, mortar, and facing), marl, chalk, rock
containing potassium, dolomite (for use in
metallurgy, fertilizers, glass, and construction),
quartz (for use in metallurgy, glass, and
fertilizers), sandstone (for use in metallurgy,
glass, or as cement ingredient, or for use in brick,
fertilizers, casting molds, and ceramics), natural
quartz sand (for use in glass, casting molds,
construction, or as cement ingredient or standard sand
in cement, or for use in bricks), vein quartz (for use
in metallurgy and glass), powdered quartz, natural
oilstone, potassium-bearing shale, diatomite, shale                  
2
(including ceramsite shale, shale used for bricks,
and shale used as cement ingredient), kaolin, ceramic
clay, refractory clay, clay for convexo-concave rod,
sepiolite clay, illite clay, rectorite clay, bentonite,
iron alum, miscellaneous clays (including clay for use
in casting molds, brick, and ceramsite, clay used as
cement ingredient, red clay used as cement ingredient,
yellow clay used as cement ingredient, mudstone used
as cement ingredient, and insulating clays), peridotite
(for use in fertilizers and construction), serpentine
(for use in fertilizers, flux, and facings), basalt
(for use in stone casting and asbestos), diabase (for
use in cement, stone casting, facings, and
construction), andesite (including andesite for use
in facings, andesite for use in construction, and
andesite porphyrite for use in cement mixers), diorite
(for use in cement mixers and construction), granite
(for use in construction and facings), medical stone,
perlite, obsidian, pitch stone, pumice stone, trachyte
(for use in cement and stone casting), nepheline syenite,
tuff (for use in glass, cement, and construction),
volcanic ash, volcanic slag, marble (for use as facing,
and construction, cement, and glass), slate (for use as
facing and cement ingredient), gneiss, amphibole,
peat, magnesium salt, iodine, bromium, arsenium
_____________________________________________________________________________
lake salt, rock salt, natural brine                                  
0.5
_____________________________________________________________________________
carbon dioxide, hydrogen sulphide, helium, radon,                    
3
_____________________________________________________________________________
mineral spring water                                                  4
______________________________________________________________________________
groundwater                                                
The rate and  

                                                            
measures for

                                                            
collection

                                                            
administration

                                                            
will be

                                                            
formulated  

                                &n

CONSTITUTION ACT, 1982 – page 22

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