DECISION OF THE THIRD SESSION OF THE SIXTH NATIONAL PEOPLE’S CONGRESS ON AUTHORIZING THE STATE COUNCIL TO FORMULATE INTERIM PROVISIONS OR REGULATIONS CONCERNING THE REFORM OF THE ECONOMIC STRUCTURE AND THE OPEN POLICY

Category	LEGISLATION AND MISCELLANEOUS AFFAIRS	Organ of Promulgation	The National People’s Congress	Status of Effect	In Force
Date of Promulgation	1985-04-10	Effective Date	1985-04-10

Decision of the Third Session of the Sixth National People’s Congress on Authorizing the State Council to Formulate Interim Provisions or Regulations Concerning the Reform of the Economic Structure and the Open Policy

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

April 10, 1985)

With a view to ensuring the smooth progress of the reform of the economic
structure and the implementation of the open policy, the Third Session of the
Sixth National People’s Congress has decided to authorize the State Council to
formulate, promulgate and implement, whenever necessary, interim provisions or
regulations concerning the reform of the economic structure and the open
policy in accordance with the Constitution without contravening the relevant
laws and the basic principles of the relevant decisions of the National
People’s Congress and its Standing Committee, and to report them to the
Standing Committee of the National People’s Congress for the record. These
provisions and regulations shall be made into law by the National People’s
Congress or its Standing Committee after they are tested in practice and when
conditions are ripe.

CUSTOMS NOTICE TO FOREIGN EXPERTS EMPLOYED TO WORK IN CHINA GOVERNING CUSTOMS PROCEDURES FOR THEIR ENTRY AND EXIT

PROVISIONS OF THE STATE COUNCIL ON SEVERAL ISSUES CONCERNING THE IMPORT AND EXPORT OF TEXTILES

Category	FOREIGN TRADE	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1985-01-08	Effective Date	1985-01-08

Provisions of the State Council on Several Issues Concerning the Import and Export of Textiles

(Promulgated on January 8, 1985)

The following provisions are formulated, in accordance with the spirit of
the economic restructuring of the country, in respect of several issues
concerning the import and export of textiles.

1. In the exportation of textiles, it is advisable to combine industry with
trade; the combination may take various forms, of which the “Qingdao Textile
Unico.Ltd” is one; and enterprises may freely adopt other combinative forms.
From now on, case concerning the establishment of various forms of textile
industry and trade combination companies and other combination complexes or
production enterprises having direct links with foreign businesses in the open
coastal cities and municipalities under separate planning shall all be handled
and examined jointly by the departments of foreign economic relations and trade
and the departments of textile industry in the cities or municipalities where
the companies or enterprises are located; the cases shall, then, be submitted
to the municipal people’s government for examination and approval; and the
cases shall be further submitted to the people’s government of the province or
autonomous region and to the Ministry of Foreign Economic Relations and Trade
and the Ministry of Textile Industry for record.

2. Issues concerning the export planning for textiles, foreign exchange,
earnings from exports, and the distribution of export quotas and the issuance
of import and export licences:

(1) it is necessary to implement the principle of taking into consideration
the historical conditions as well as the importance of encouraging the
advanced, facilitating competition, selecting quality products for export, and
promoting combination; a specific distribution plan shall be worked out jointly
by the Ministry of Foreign Economic Relations and Trade and the Ministry of
Textile Industry, and shall be transmitted directly by the Ministry of Foreign
Economic Relations and Trade to the people’s governments of various provinces
(and/or autonomous regions, municipalities directly under the Central
Government), municipalities under separate planning, and the national
corporations undertaking export tasks; the distribution plan shall no longer,
be transmitted according to the subordinating relationship by the National
Textile Import and Export Corporation.

(2) the departments of foreign economic relations and trade in various
regions shall, jointly with the departments of textile industry, work out the
local specific distribution plan in accordance with the aforesaid principle,
and then submit it to the people’s government at the same level for approval,
which shall then be transmitted through the office (or commission, bureau) of
foreign economic relations and trade to various branch offices of the textile
import and export corporations, the industry and trade combination companies,
textile industry companies that undertake export tasks assigned by the state,
and combination complexes and production enterprises vested with the external
operating rights.

(3) in the course of implementation, the department of foreign economic
relations and trade shall strengthen administration. The racketeering in export
quotas and import and export licences shall be strictly banned; and the
offender shall be dealt with seriously.

(4) trade conducted between countries at the state level in accordance with
relevant agreements shall be carried out by the national import and export
corporations by organizing the relevant branch offices of foreign trade
corporations, industry and trade combination companies, and production
enterprises in holding business negotiations with foreign businesses and
concluding relevant transactions.

3. The key to expanding the export of textiles and bettering the quality of products lies in bringing into
play the initiative of production enterprises
and in actually devolving the power to them, so that the production enterprises
may sharpen their sensitivity towards and clarity about the international
market, thereby heightening their competitiveness. At the same time, it is
essential to bring into full play the role of various branch offices of foreign
trade corporations, of various companies situated at ports, and of various
industry and trade combination companies. From now on, the National Textile
Import and Export Corporation shall devote its attention to doing a better job
in providing information and consultancy services; it may also handle directly
a portion of the import and export business operations.

The industry and trade combination companies and production enterprises,
which have obtained, with approval, the right to operate in foreign trade,
shall enjoy the same treatment as the textile import and export corporations in
such aspects as export quota, import and export licence, and the right to
handle import and export business; and shall also have the right to export all
commodities within the scope of business operations of their own companies
(including the right to export the two kinds of yarns and the two kinds of
cloth, but they must carry on the unified provisions formulated by the State
Council), and the right to import various kinds of raw materials required by
their companies in production (not including such kinds of raw materials as
terylene and poly acrylonitrile fibre; however, in order to develop new
varieties of commodities, to guarantee the quality of products, and to meet the
urgent needs of production, they may, with the approval of the Ministry of
Textile Industry and the Ministry of Foreign Economic Relations and Trade,
import a small quantity of such raw materials), as well as dyestuffs, chemical
and auxiliary materials, and the right to act as an agent for the exportation
of the commodities within their scope of business operations. Those companies
and enterprises with the necessary qualifications may, after obtaining the
approval in accordance with the provisions of the state, accredit
representatives abroad or establish business offices there to conduct studies
and investigations and to promote the sale of their products.

With respect to textiles under the scheme of agency in foreign trade, the
export quota and the export licence shall be issued, along with the production
task, to the production enterprises. The production enterprises shall have the
right to select their agents by themselves and may take part in business
negotiations with foreign firms. The agents shall be responsible for concluding
contract, and, at the same time, offer satisfactory services and consultancy,
and collect service charges according to the stipulations.

From now on, with respect to those industry and trade combination companies
and production enterprises that are vested with the right to operate in
foreign trade, the state will mainly evaluate their fulfilment of the task of
foreign exchange earnings from exports, and make statistics concerning the
level of foreign exchange earnings and the costs in terms of foreign exchange,
in order to select from among them the more successful companies and
enterprises for future arrangement.

4. With a view to changing the existing financial structure, that is
“everybody eating from the common pot”, under which the state takes the sole
responsibility for gains and losses, various types of industry and trade
combination companies and enterprises that manufacture textile goods for export
shall follow the principle of settling the accounts for imported raw materials
in accordance with the international price level, and pay the Customs duties
and the product tax according to the regulations when they are imported; then,
after the products are exported, the portion of import Customs duties and the
product tax already paid shall be refunded annually on the basis of the actual
quantity of raw materials used in the exported products, and, at the same time,
the product tax or the value added tax in the process of production shall also
be refunded; by so doing they shall take the sole responsibility for gains and
losses themselves.

5. After liberalizing the business operations in the export of textiles,
the Ministry of Foreign Economic Relations and Trade shall play the role of
overall administration of foreign economic relations and trade of the country:
strengthening the administration at home in accordance with its competence and
duty prescribed by the State Council, setting ceiling prices for the imported
raw materials used in the production of textiles and floor prices for the
export textiles, and providing promptly information concerning the
international market. All the textile import and export corporations, industry
and trade combination companies, combination complexes and production
enterprises vested with the external operating rights, shall conduct their
business operations in accordance with the unified policies governing China’s
foreign economic relations and trade.?

INTERIM REGULATIONS ON THE ADMINISTRATION OF TOURIST AGENCIES

Category	TOURISM	Organ of Promulgation	The State Council	Status of Effect	Invalidated
Date of Promulgation	1985-05-11	Effective Date	1985-05-11	Date of Invalidation	1996-10-15

Interim Regulations on the Administration of Tourist Agencies

(Promulgated by the State Council on May 11, 1985)(Editor’s Note: These

Interim Regulations have been annulled by Regulations on the Administration
of Tourist Agencies promulgated on October 15, 1996)

Article 1 These Regulations are formulated to strengthen the
administration of tourist agencies, to protect the lawful rights and interests
of tourists, and to promote the development of the tourist industry.

Article 2 “Tourist agencies” (or tourist companies, or other similar
organizations of the same nature; the same below) refer to those enterprises
which are established according to law, have the status of legal persons, are
engaged in soliciting and receiving tourists and in organizing tourist
activities, and conduct business accounting independently.

Article 3 Tourist agencies shall, in accordance with the principle of
expanding the friendly contacts among peoples, enriching the socialist
cultural life and promoting the prosperity of socialist tourist economy,
conduct operational activities for the advancement of socialist spiritual
civilization and material civilization.

Article 4 The tourism administration department shall, in its
administration of tourist agencies, adopt the policy of unified leadership,
graded administration, and decentralized operations.

Article 5 The following terms used in these Regulations, except as
otherwise provided in the articles of these Regulations, shall convey the
meanings as defined below:

(1) “Solicit” refers to the efforts made by a tourist agency in carrying
out publicity and promotion activities both at home and abroad, as well as the
organizational work so involved, in accordance with the scope of business
approved by the competent authorities.

(2) “Receive” refers to the operational activities of a tourist agency
which, at the request of tourists, include making travel plans and
arrangements for meals, accommodation, transportation and sightseeing.

(3) “Tourism administration department” refers to the National Tourism
Administration and the tourism bureaus in various provinces, autonomous
regions, and municipalities directly under the Central Government, as well as
the corresponding administrative organs in municipalities and counties.

Article 6 Tourist agencies shall be divided into three categories
according to the scope of their business:

Category 1: Tourist agencies that handle such business as both soliciting
tourists abroad and making arrangements for foreigners, overseas Chinese,
compatriots from Hong Kong, Macao and Taiwan to come to China, or to return to
China or China’s inland, for a visit or sightseeing.

Category 2: Tourist agencies that do not solicit tourists abroad, but
handle such tourist business as making travel arrangements for those
foreigners, overseas Chinese, compatriots from Hong Kong, Macao and Taiwan,
who are received by tourist agencies of Category 1 or by other departments
with relevance to external affairs.

Category 3: Tourist agencies that handle domestic tourist business for
Chinese citizens.

Article 7 Tourist agencies of Category 1 and Category 2 may register and
commence operations only under the following prerequisites:

(1) having articles of association for the tourist agency to be
established, which are in conformity with the State plovisions;

(2) having a definite organization and a legal representative, a fixed
site for setting up an office and for conducting business operations, and the
necessary communication facilities;

(3) tourist agencies that handle such tourist business as both soliciting
and receiving tourists abroad shall have a registered capital of RMB 500,000
yuan or more; tourist agencies that handle only reception business shall have
a registered capital of RMB 250,000 yuan or more;

(4) having the organizing ability to provide tourists with such services
as meals, accommodation and transportation, and such services are up to the
standard; and

(5) having a contingent of managerial and operational personnel who can
guarantee the quality standard of various services, can conduct normal
business operations, and are familiar with tourist business; and having a
contingent of interpreters and tourist guides who have passed qualifications
examinations.

Article 8 Tourist agencies of Category 3 may register and commence
operations only under the following prerequisites:

(1) having articles of association for the tourist agency to be
established, which are in conformity with the State provisions;

(2) having a fixed site for setting up an office and for conducting
business operations;

(3) having a registered capital of RMB 30,000 yuan or more;

(4) having the organizing ability to provide, within their scope of
business, the tourists with various services that meet the standard service
requirements; and

(5) having a contingent of administrative and service personnel who are
familiar with tourist business.

Article 9 Those who wish to establish tourist agencies of Category 1, in
a local area, shall submit an application to the tourism bureau of the
province, autonomous region, or municipality directly under the Central
Government where their tourist agencies are located, and the application shall
be transmitted to the National Tourism Administration for examination and
approval; if such a tourist agency is to be established by a department at the
central level, the application shall be submitted to the National Tourism
Administration for examination and approval.

The tourist agencies mentioned in the preceding paragraph shall, after
obtaining the approval from the tourism administration department, go through
the application and registration procedures in accordance with the State
provisions concerning the administration of industry and commerce, and start
their business operations only after their applications have been verified and
approved and the business licences have been issued to them.

Article 10 Those who wish to establish tourist agencies of Category 2, in
a local area, shall have their applications examined and approved by the
tourism bureau of the province, autonomous region, or municipality directly
under the Central Government where their tourist agencies are located; if such
a tourist agency is to be established by a department at the central level,
the application shall be submitted to the National Tourism Administration for
examination and approval.

Article 11 Those who wish to establish tourist agencies of Category 3
shall start their business operations only after their applications have been
examined and approved by the local tourism administration department, and have
been verified and approved for registration by the local administrative
department for industry and commerce, and the business licences have been
issued to them.

Article 12 In the event that tourist agencies of Category 1 wish to
establish or withdraw their representative business offices abroad or in the
regions of Hong Kong and Macao, they must report to the National Tourism
Administration for examination and approval.

Article 13 Foreign tourist agencies, and tourist agencies in the regions
of Hong Kong and Macao, shall not be permitted to establish their
representative business offices in China without the approval from the
National Tourism Administration. Their representative business offices, after
being established with approval, shall not be permitted to handle such
tourist business as soliciting and receiving tourists.

Article 14 The basic duties of tourist agencies shall be as follows:

(1) to conclude and sign contracts or agreements with the operating units
concerned, and to handle tourist business in accordance with the laws and
regulations of the State and the principles and policies for tourist industry;

(2) to draw up touring itineraries and to conduct soliciting activities in
accordance with the unified plan and the market demands;

(3) to make arrangements for meals, accommodation, transportation, and
sightseeing in accordance with the itineraries selected by tourists;

(4) to provide tourists with the necessary services of interpreters and
tourist guides;

(5) to improve operations and management, to raise the quality of service,
to listen to the criticisms and suggestions by tourists, and to investigate
and handle violators of rules and regulations by personnel of their own units;
and

(6) to handle commission business relating to tourism.

Article 15 With respect to business contacts between tourist agencies and
such business departments as airlines, railways, transportation, hotels and
restaurants, and automobile companies, or the business contacts between
tourist agencies, the parties concerned shall, in accordance with the
provisions of the Law of the People’s Republic of China on Economic Contracts,
conclude and sign a certain form of economic agreement or contract, on the
basis of the principle of equality and mutual benefit, reaching unanimity
through consultation, exchange at equal value and offering services with
remunerations.

Article 16 Tourist agencies shall strictly abide by the laws and
regulations of the State, implement the principles and policies relating to
tourism, strengthen the system of financial administration, and pay taxes and
other fees according to pertinent provisions.

Article 17 Tourist agencies shall strengthen the education on complying
with discipline and laws, and on professional ethics, among their employees,
and lay great stress on professional training, in order to unceasingly improve
the quality of the employees to meet the needs of the development of tourism.

Article 18 Tourist agencies and their workers and staff members shall not
be permitted to seek and accept commission or other remuneration. Stores that
sell tourist articles and catering units shall not be permitted to pay
commission or other remuneration to tourist agencies or their workers and
staff members. The competent authorities shall impose necessary administrative
and disciplinary sanctions on those who have violated the aforesaid provisions.

Article 19 Tourist agencies shall accept the administration, guidance,
supervision and investigation by the departments respectively in charge of
tourism, commodity prices, and taxation, and by the administrative department
for industry and commerce.

Article 20 In case a tourist agency wishes to wind up its business
operations, it shall submit an application to the tourism administration
department and the administrative department for industry and commerce and go
through the procedures for cancellation of its registration.

Article 21 Tourist agencies and the individuals of their workers and
staff members that have carried out the provisions of these Regulations
conscientiously, and have made important contributions to the improvement of
operations and management, or to the improvement of the quality standard of
services, shall be duly awarded by the tourism administration department.

Article 22 With respect to those who have violated the provisions of
these Regulations and conducted tourist business operations presumptuously
without the approval by the competent authorities, and without going through
the procedures for registration, and those who, without authorization, have
transferred their business licences to others, have cheated tourists, or have
sought profits by illegal means, the tourism administration department shall,
depending on the seriousness of the case, impose a fine on the managerial
personnel of the tourist agency concerned or on the person directly held
responsible or order the tourist agency concerned to cease its business
operations for rectification; with respect to serious cases, the
administrative department for industry and commerce shall confiscate the
illegal gains of the violator(s), revoke his/her/its/their business
licence(s), and order the violator(s) to cease business operations.

Article 23 The right to interpret these Regulations shall reside in the
National Tourism Administration.

Article 24 These Regulations shall go into effect on the date of
promulgation.

INTERIM MEASURES FOR THE ADMINISTRATION OF PETTY TRADE IN THE BORDER AREAS

Category	FOREIGN TRADE	Organ of Promulgation	The State Council	Status of Effect	Invalidated
Date of Promulgation	1984-12-20	Effective Date	1984-12-20	Date of Invalidation	1994-05-16

Interim Measures for the Administration of Petty Trade in the Border Areas

(Approved by the State Council on December 15, 1984 and promulgated by

the Ministry of Foreign Economic Relations and Trade on December 20, 1984)
(Editor’s Note: The Measures have been annulled by Decision of the State
Council Repealing Some Administrative Regulation Promulgated Prior to the End
of 1993 promulgated by Decrce No. 154 of the State Council on May 16, 1994)

1. These Measures are formulated to invigorate economy in the border areas,
to satisfy to a larger extent the needs of the inhabitants in the border areas
in their production and life, to promote the contacts and communication
between the border inhabitants of two neighbouring countries, and to develop
their good neighbourly relations.

2. The petty trade in the border areas, as mentioned in these Measures,
refers to the petty trade carried out in the border towns of China, a between
the departments or enterprises designated by the people’s governments of
provinces or autonomous regions and the border towns on the other side, as well
as to the mutual market trade between the border inhabitants of the two
neighbouring countries.

3. The petty trade in the border areas shall be carried out at the ports
and trading points in the border areas as agreed on by the two sides through
consultation.

4. The petty trade in the border areas shall be subject to the
administration by the relevant people’s governments of the provinces and
autonomous regions. Matters involving the opening of ports, external relations,
security, frontier defence, the Customs, banking, commodity inspection, animal
and plant quarantine, and administration for industry and commerce shall be
handled by relevant competent departments under the State Council on the
proposal of the people’s governments of the provinces or autonomous regions.

5. The petty trade in the border areas shall be conducted in accordance
with the following principles: finding the sources of goods and the markets by
themselves; holding business talks by sellers and buyers of their own accord;
acquiring balance of accounts in their own ways, and assuming sole
responsibility for their profits and losses.

6. With respect to the petty trade carried out between the border towns,
the Customs duty, product tax and value added tax shall, in accordance with the
tax regulations, be levied.

7. The mutual market trade between the border inhabitants shall be carried
out within the scope of a definite quota. The specific quota shall be
prescribed by the people’s governments of the provinces or autonomous regions
concerned, and submitted to the Ministry of Foreig Economic Relations and Trade
and the General Administration of Customs for the record.

8. The commodities involved in the mutual market trade between the border
inhabitants may be exempted from the Customs duty, product tax and value added
tax if they do not exceed the quota.

9. All contraband goods are forbidden to be imported or exported.

10. With respect to the import and export commodities subject to the
licences, the Ministry of Foreign Economic Relations and Trade shall authorize
the department (commission, bureau) of foreign economic relations and trade
under the province or autonomous region concerned to handle the matter of
examiation and approval.

11. The department (commission, bureau) of foreign economic relations and
trade under the provinces or autonomous regions shall be responsible for
submitting the reports on the annual operational conditions and statistics of
the petty trade in the border areas to the Ministry of Foreign Economic
Relations and Trade for the record.

12. The petty trade in the border areas shall strictly comply with the laws
and administrative regulations of the State. The people’s governments of
various provinces and autonomous regions shall, in the light of the local
conditions, formulate practicable specific measures to facilitate the
development of the petty trade in the border areas. ?

ORGANIC LAW OF THE PEOPLE’S COURTS

Category	STATE INSTITUTIONS	Organ of Promulgation	The National People’s Congress	Status of Effect	In Force
Date of Promulgation	1983-09-02	Effective Date	1983-09-02

Organic Law of the People’s Courts of the People’s Republic of China

Contents
Chapter I  General Provisions
Chapter II  Organization, Functions and Powers of the People’s Courts
Chapter III  Judicial and Other Personnel of People’s Courts

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

July 1, 1979, and revised according to the Decision Concerning the Revision
of the Organic Law of the People’s Courts of the People’s Republic of China
adopted at the Second Meeting of the Sixth National People’s Congress on
September 2, 1983)
Contents

Chapter I General Provisions

Chapter II Organization, Functions and Powers of the People’s Courts

Chapter III Judicial and Other Personnel of People’s Courts

Chapter I General Provisions

Article 1 The people’s courts of the People’s Republic of China are the
judicial organs of the state.

Article 2 The judicial authority of the People’s Republic of China is
exercised by the following people’s courts:

(1) local people’s courts at various levels;

(2) military courts and other special people’s courts (revised on
September 2, 1983); and

(3) the Supreme People’s Courts.

The local people’s courts at various levels are divided into: basic
people’scourts, intermediate people’s courts and higher people’s courts.

(Paragraph 3 was deleted on September 2, 1983)

Article 3 The task of the people’s courts is to try criminal and civil
cases and, through judicial activities, to punish all criminals and settle
civil disputes, so as to safeguard the system of dictatorship of the
proletariat, maintain the socialist legal system and public order, protect
socialist property owned by the whole people, collective property owned by
working people and the legitimate private property of citizens, the citizens’
right of the person and their democratic and other rights, and ensure the
smooth progress of the socialist revolution and socialist construction in the
country.

The people’s courts, in all their activities, educate citizens in loyalty
to their socialist motherland and voluntary observance of the Constitution and
the law.

Article 4 The people’s courts shall exercise judicial power
independently, in accordance with the provisions of the law, and shall not be
subject to interference by any administrative organ, public organization or
individual. (Revised on September 2, 1983)

Article 5 In judicial proceedings in the people’s courts, the law is
applied equally to all citizens, regardless of ethnic status, race, sex,
occupation, family background, religious belief education, property status or
length of residence. No privilege whatsoever is allowed.

Article 6 Citizens of all nationalities have the right to use the spoken
and written languages of their own nationalities in court proceedings. The
people’s courts shall provide translation for any party to the court
proceedings who is not familiar with the spoken or written languages commonly
used in the locality. In an area where people of a minority nationality live
in concentrated communities or where a number of minority nationalities live
together, the people’s courts shall conduct bearings in the language or
languages commonly used in the locality and issue judgments, notices and other
documents in the language or languages commonly used in the locality.

Article 7 All cases in the people’s courts shall be heard in public,
except for those involving state secrets, private affairs of individuals and
the commission of crimes by minors.

Article 8 The accused has the right to defence. Besides defending
himself, the accused has the right to delegate a lawyer to defend him. He may
also be defended by a citizen recommended by a people’s organization or his
place of employment, by a citizen approved by the people’s court, or by a near
relative or guardian. The people’s court may also, when it deems it necessary,
appoint a counsel to defend him.

Article 9 (Deleted on September 2, 1983)

Article 10 The people’s courts adopt the collegial system in the
administration of justice.

Cases of first instance in the people’s courts shall be tried by a
collegial panel of judges or of judges and people’s assessors; simple civil
cases, minor criminal cases and cases otherwise provided for by law may be
tried by asingle judge. (Revised on September 2, 1983)

Appealed or contested cases in the people’s courts are handled by a
collegial panel of judges.

The president of the court or the chief judge of a division appoints one
of the judges to act as the presiding judge of the collegial panel. When the
president of the court or the chief judge of a division participates in the
judicial proceedings, he acts as the presiding judge.

Article 11 People’s courts at all levels set up judicial committees which
practise democratic centralism. The task of the judicial committees is to sum
up judicial experience and to discuss important or difficult cases and other
issues relating to the judicial work.

Members of judicial committees of local people’s courts at various levels
are appointed and removed by the standing committees of the people’s
congresses at the corresponding levels, upon the recommendation of the
presidents of these courts. Members of the Judicial Committee of the Supreme
People’s Court are appointed and removed by the Standing Committee of the
National People’s Congress, upon the recommendation of the President of the
Supreme People’s Court.

The presidents of the people’s courts preside over meetings of judicial
committees of the people’s courts at all levels; the chief procurators of the
people’s procuratorates at the corresponding levels may attend such meetings
without voting rights.

Article 12 In the administration of justice, the people’s courts adopt
the system whereby the second instance is the last instance.

From a judgment or orders of first instance of a local people’s court, a
party may bring an appeal to the people’s court at the next higher level in
accordance with the procedure prescribed by law, and the people’s
procuratorate may present a protest to the people’s court at the next higher
level in accordance with the procedure prescribed by law.

Judgments and orders of first instance of the local people’s courts at
various levels become legally effective judgments and orders if, within the
period for appeal, none of the parties has appealed and the procuratorate has
not protested.

Judgments and orders of second instance of intermediate courts, higher
people’s courts and the Supreme People’s Court and judgments and orders of
first instance of the Supreme People’s Court are all judgments and orders of
last instance, that is, legally effective judgments and orders.

Article 13 Cases involving sentences of death, except for cases with
sentences imposed by the Supreme People’s Court, shall be submitted to the
Supreme People’s Court for approval. The Supreme People’s Courts may, when it
deems it necessary, authorize higher people’s courts of provinces, autonomous
regions, and municipalities directly under the Central Government to exercise
the power to approve cases involving the imposition of death sentences for
homicide, rape, robbery, causing explosions and others gravely endangering
public security and disrupting social order. (Revised on September 2, 1983)

Article 14 If the president of a people’s court finds, in a legally
effective judgment or order of his court, some definite error in the
determination of facts or application of law, he must submit the judgment or
order to the judicial committee for disposal.

If the Supreme People’s Court finds some definite error in a legally
effective judgment or order of the people’s court at a lower level or if the
people’s court at a higher level finds such error in a legally effective
judgment or order of the people’s court at a lower level, it has the authority
to review the case itself or to direct the lower-level people’s court to
conduct a retrial.

If the Supreme People’s Procuratorate finds some definite error in a
legally effective judgment or order of a people’s court at any level or if the
people’s procuratorate at a higher level finds such error in a legally
effective judgment or order of any people’s court at a lower level, it has the
authority to lodge a protest in accordance with the procedure of judicial
supervision.

The people’s courts at all levels shall hold themselves responsible for
seriously handling a petition lodged by a party to a case against a legally
effective judgment or order.

Article l5 If a people’s court considers that the principal facts of a
case in which a people’s procuratorate has initiated a public prosecution are
not clear and the evidence is insufficient, or there are illegalities in the
prosecution, the court may remand the case to the people’s procuratorate
for supplementary investigation or notify the people’s procuratorate to
rectify them.

Article 16 If a party to a case considers that a member of the judicial
personnel has an interest in the case or, for any other reason, cannot
administer justice impartially, he has the right to ask that member to
withdraw. The president of the court shall decide whether the member
should withdraw.

If a member of the judicial personnel considers that be should withdraw
because he has an interest in the case or for any other reason, he should
report the matter to the president of the court for decision.

Article l7 The Supreme People’s Court is responsible to and reports on
its work to the National People’s Congress and its Standing Committee. Local
people’s courts are responsible to and report on their work to the local
people’s congresses at corresponding levels and their standing committees.

The judicial work of people’s courts at lower levels is subject to
supervision by people’s courts at higher levels.

(Paragraph 3 was deleted on September 2, 1983)
Chapter II Organization, Functions and Powers of the People’s Courts

Article 18 Basic people’s courts are:

(1) county people’s courts and municipal people’s courts:

(2) people’s courts of autonomous counties; and

(3) people’s courts of municipal districts.

Article 19 A basic people’s court is composed of a president,
vice-presidents and judges.

A basic people’s court may set up a criminal division, a civil division
and an economic division, each with a chief judge and associate chief judges.
(Revised on September 2, 1983)

Article 20 A basic people’s court may set up a number of people’s
tribunals according to the conditions of the locality, population and cases. A
people’s tribunal is a component part of the basic people’s court, and its
judgments and orders are judgments and orders of the basic people’s courts.

Article 21 Except for cases otherwise provided for by laws or decrees,
a basic people’s court adjudicates criminal and civil cases of first instance.
When a basic people’s court considers that a criminal or civil case it is
handling is of major importance and requires trial by the people’s court at
a higher level, it may request that the case be transferred to that court for
trial.

Article 22 Besides trying cases, a basic people’s court undertakes the
following tasks:

(1) settling civil disputes and handling minor criminal cases that do not
need to be determined by trials;

(2) directing the work of people’s mediation committees. (Revised on
September 2, 1983)

(Item (3) was deleted on September 2, 1983)

Article 23 Intermediate people’s courts are:

(1) intermediate people’s courts established in prefectures of a province
or autonomous region:

(2) intermediate people’s courts established in municipalities directly
under the Central Government:

(3) intermediate people’s courts of municipalities directly under the
jurisdiction of a province or autonomous region; and

(4) intermediate people’s courts of autonomous prefectures.

Article 24 An intermediate people’s court is composed of a president,
vice-presidents, chief judges and associate chief judges of divisions, and
judges.

Each intermediate people’s court shall set up a criminal division, a civil
division, an economic division, and such other divisions as are deemed
necessary. (Revised on September 2, 1983)

(Paragraph 3 was deleted on September 2, 1983)

Article 25 An intermediate people’s court handles the following cases:

(1) cases of first instance assigned by laws and decrees to their
jurisdiction;

(2) cases of first instance transferred from the basic people’s courts;

(3) cases of appeals and of protests lodged against judgments and orders
of the basic people’s courts; and

(4) cases of protests lodged by the people’s procuratorates in accordance
with the procedures of judicial supervision.

When an intermediate people’s court considers that a criminal or civil
case it is handling is of major importance and requires trial by the people’s
court at a higher level, it may request that the case be transferred to that
court for trial.

Article 26 Higher people’s courts are:

(1) higher people’s courts of provinces;

(2) higher people’s courts of autonomous regions; and

(3) higher people’s courts of municipalities directly under the Central
Government.

Article 27 A higher people’s court is composed of a president,
vice-presidents, chief judges and associate chief judges of divisions, and
judges.

A higher people’s court shall set up a criminal division, a civil
division, an economic division, and such other divisions as are deemed
necessary.

Article 28 A higher people’s court handles the following cases:

(1) cases of first instance assigned by laws and decrees to their
jurisdiction;

(2) cases of first instance transferred from people’s courts at lower
levels:

(3) cases of appeals and of protests lodged against judgments and orders
of people’s courts at lower levels; and

(4) cases of protests lodged by people’s procuratorates in accordance with
the procedures of judicial supervision.

Article 29 The organization, functions and powers of special people’s
courts shall be prescribed separately by the Standing Committee of the
National People’s Congress.

Article 30 The Supreme People’s Court is the highest judicial organ of
the State.

The Supreme People’s Court supervises the administration of justice by the
local people’s courts at various levels and by the special people’s courts.

Article 31 The Supreme People’s Court is composed of a president,
vice-presidents, chief judges and associate chief judges of divisions, and
judges.

The Supreme People’s Court shall set up a criminal division, a civil
division, an economic division, and such other divisions as are deemed
necessary.

Article 32 The Supreme People’s Court handles the following cases:

(1) cases of first instance assigned by laws and decrees to its
jurisdiction and which it considers should itself try;

(2) cases of appeals and of protests lodged against judgments and orders
of higher people’s courts and special people’s courts; and

(3) cases of protests lodged by the Supreme People’s Procuratorate in
accordance with the procedures of judicial supervision.

Article 33 The Supreme People’s Court gives interpretation on questions
concerning specific application of laws and decrees in judicial proceeding.
Chapter III Judicial and Other Personnel of People’s Courts

Article 34 Citizens who have the right to vote and to stand for election
and have reached the age of 23 are eligible to be elected presidents of
people’s courts or appointed vice-presidents of people’s courts, chiefjudges
or associate chief judges of divisions, judges or assistant judges; but
persons who have ever been deprived of political rights are excluded.

Judicial personnel of people’s courts must have an adequate knowledge of
the law. (This paragraph was added on September 2, 1983)

Article 35 Presidents of local people’s courts at various levels are
elected by the local people’s congresses at corresponding levels, and their
vice-presidents, chief judges and associate chief judges of divisions, and
judges are appointed and removed by the standing committees of the local
people’s congresses at corresponding levels.

Presidents of intermediate people’s courts established in prefectures of provinces or in municipalities.
directly under the Central Government are
elected by the people’s congresses of the provinces and municipalities
directly under the Central Government, and their vice-presidents, chiefjudges
and associate chief judges of divisions, and judges are appointed and removed
by the standing committees of the people’s congresses of the provinces and
municipalities directly under the Central Government.

Presidents of local people’s courts at various levels established in
national autonomous areas are elected by local people’s congresses at
corresponding levels in these areas, and their vice-presidents, chief judges
and associate chief judges of divisions, and judges are appointed or removed
by the standing committees of local people’s congresses at corresponding
levels in these areas.

The President of the Supreme People’s Court is elected by the National
People’s Congress, and its vice-presidents, chief judges and associate chief
judges of divisions, and judges are appointed or removed by the Standing
Committee of the National People’s Congress.

Article 36 The term of office of presidents of people’s courts at all
levels is the same as that of people’s congresses at corresponding levels.

People’s congresses at all levels have the power to remove from office
the presidents of people’s courts elected by them. If the standing committee
of a people’s congress deems it necessary to replace the president of a local
people’s court at the corresponding level when the congress is not in session,
it shall report the matter to the people’s court at the next higher level for
submission to the standing committee of the people’s congress at the next
higher level for approval.

Article 37 People’s courts at all levels may, according to their needs,
be staffed with assistant judges, who shall be appointed or removed by the
people’s courts themselves. (Revised on September 2, 1983)

Assistant judges help the judges in their work. Upon the recommendation of
the president of the court and with the approval of the judicial committee, an
assistant judge may provisionally exercise the functions of a judge.

Article 38 Citizens who have the right to vote and to stand for election
and have reached the age of 23 are eligible to be elected people’s assessors,
but persons who have ever been deprived of political rights are excluded.

During the period of the exercise of their functions in the people’s
courts, the people’s assessors are members of the divisions of the courts in
which they participate, and enjoy equal rights with the judges.

Article 39 During the period of the exercise of their functions, the
people’s assessors continue to receive wages as usual from their regular place
of employment; people’s assessors who are not wage-earners are given
reasonable allowances by the people’s courts.

Article 40 People’s courts at all levels have clerks to keep records of the court proceedings and to take charge of other matters
concerning the
trials.

Article 4l Local people’s courts at various levels have marshals to carry
out the execution of judgments and orders in civil cases and the execution, in
criminal cases, of the parts of judgments and orders concerned with property.

Local people’s courts at various levels have forensic physicians.

People’s courts at all levels have a certain number of judicial policemen.

Article 42 (Deleted on September 2, 1983)

MARINE ENVIRONMENT PROTECTION LAW

Marine Environment Protection Law of the People’s Republic of China

CONTENTS

CHAPTER I GENERAL PROVISIONS

CHAPTER II PREVENTION OF POLLUTION DAMAGE TO THE MARINE ENVIRONMENT BY COASTAL CONSTRUCTION PROJECTS

CHAPTER III PREVENTION OF POLLUTION DAMAGE TO THE MARINE ENVIRONMENT BY COASTAL CONSTRUCTION PROJECTS BY OFFSHORE
OIL EXPLORATION AND EXPLOITATION

CHAPTER IV PREVENTION OF POLLUTION DAMAGE TO THE MARINE ENVIRONMENT BY LAND-SOURCED POLLUTANTS

CHAPTER V PREVENTION OF POLLUTION DAMAGE TO THE MARINE ENVIRONMENT BY VESSELS CHAPTER VI PREVENTION OF POLLUTION
DAMAGE TO THE MARINE ENVIRONMENT BY DUMPING OF WASTES

CHAPTER VII LEGAL LIABILITIES

CHAPTER VIII SUPPLEMENTARY PROVISIONS

CHAPTER I GENERAL PROVISIONS

Article 1. This Law is formulated in order to protect the marine environment and resources, prevent pollution damage,
maintain ecological balance, safeguard human health and promote the development of marine programmes.

Article 2. This Law shall apply to the internal seas and territorial seas of the People’s Republic of China and all other sea
areas under the jurisdiction of the People’s Republic of China.

All vessels, platforms, airborne vehicles and submersibles, as well as all enterprises, institutions and individuals
engaged in navigation, exploration, exploitation, production, scientific research or other activities in the
sea areas under the jurisdiction of the People’s Republic of China shall comply with this Law.

This Law shall also apply to the discharge of harmful substances and the dumping of wastes done beyond the sea
areas under the jurisdiction of the People’s Republic of China that cause pollution damage to sea areas within the jurisdiction
of the People’s Republic of China.

Article 3. All units and individuals entering the sea areas under the jurisdiction of the People’s Republic of China shall
have the responsibility to protect the marine environment and shall have the obligation to watch for and report
on actions causing pollution damage to the marine environment.

Article 4. The relevant departments under the State Council and the people’s governments of the coastal provinces, autonomous regions,
and municipalities directly under the Central Government may, as the need to protect the marine environment requires, establish
special marine reserves, marine sanctuaries and seashore scenic and tourist areas and take corresponding measures
to protect them. The designation of special marine reserves and marine sanctuaries shall be subject to the State
Council for approval.

Article 5. The environmental protection department under the State Council shall be in charge of the marine environmental
protection of the whole country.

The state administrative department of marine affairs shall be responsible for organizing investigations and monitoring
of and exercising surveilance over the marine environment and conducting scientific research therein; it shall
also be in charge of environmental protection against marine pollution damage caused by offshore oil exploration
and exploitation and by the dumping of wastes into the sea.

The Harbour Superintendency Administration of the People’s Republic of China shall be responsible for supervising,
investigating and dealing with the discharge of pollutants from vessels and for exercising surveillance over the waters
of the port areas; it shall also be in charge of environmental protection against pollution damage caused by
vessels.

The state fisheries administration and fishing harbour superintendency agencies shall be responsible for
supervising the discharge of pollutants by vessels in the fishing harbours and for exercising surveillance over the waters
thereof.

The environmental protection department of the armed forces shall be responsible for supervising the discharge
of pollutants by military vessels and exercising surveillance over the waters of the naval ports.

The environmental protection departments of the coastal provinces, autonomous regions, and municipalities
directly under the Central Government shall be responsible for organizing, coordinating, supervising and inspecting
the marine environmental protection work in their respective administrative areas and shall be in charge of environmental
protection against pollution damage caused by coastal construction projects and land-sourced pollutants.

CHAPTER II PREVENTION OF POLLUTION DAMAGE TO THE MARINE ENVIRONMENT BY COASTAL CONSTRUCTION PROJECTS

Article 6. Units in charge of coastal construction projects must, before drawing up and submitting their project plan
descriptions, conduct scientific surveys of the marine environment, select suitable sites in the light of natural
and social conditions and formulate and submit Environmental Impact Statements in accordance with relevant
state regulations.

Article 7. Measures must be taken to protect the aquatic resources when building harbours and oil terminals, as well as water
conservancy facilities and tidal power stations in estuaries. Dams to be built across fish and crab migration routes
shall be provided with appropriate fish passage facilities.

Article 8. Facilities to receive and treat residual and waste oils, oil-polluted water and other wastes, along with the
necessary anti-pollution equipment and monitoring and alarm devices, shall be installed at ports and oil terminals.

Article 9. The development and utilization of tideland shall be subject to comprehensive planning and strict administration. The reclamation
of land from the sea, or other projects to enclose sea areas, and the excavation of sand and gravel shall be strictly
controlled. For projects that are definitely necessary, Environmental Impact Statements based on investigative
research and comparison of economic results must be prepared and submitted for approval to the environmental protection
departments of the relevant provinces, autonomous regions, or municipalities directly under the Central Government.
In the case of large-scale projects to enclose sea areas, the statements must also be submitted to the environmental
protection department under the State Council for examination and approval.

It is forbidden to destroy seashore shelter belts, scenic woods, scenic rocks, mangroves and coral reefs.

CHAPTER III PREVENTION OF POLLUTION DAMAGE TO THE MARINE ENVIRONMENT BY COASTAL CONSTRUCTION PROJECTS BY
OFFSHORE OIL EXPLORATION AND EXPLOITATION

Article 10. Enterprises engaged in offshore oil exploitation or their competent authorities shall, before drawing up and submitting
their project plan descriptions, prepare Environmental Impact Statements, which shall include effective measures
for the prevention of pollution damage to the marine environment; the statements shall be submitted to
the environmental protection department under the State Council for examination and approval.

Article 11. When offshore oil exploration and other offshore activities involve explosive operations, effective measures shall be taken
to protect fishery resources.

Article 12. Oils used in the course of exploration and exploitation shall be put under strict control so as to prevent accidents
from oil leakage. Residual and waste oils shall be recovered and must not be discharged into the sea.

Article 13. Oil-polluted water and oil mixtures from offshore oil rigs, drilling platforms and oil extraction platforms may not
be directly discharged into the sea. When they are discharged after recovery treatment, the oil content of the discharges
may not exceed the standards set by the state.

Article 14. Offshore oil rigs, drilling platforms and oil extraction platforms may not dispose oil-polluted industrial wastes into
the sea. The disposal of other industrial wastes may not cause pollution damage to fishing areas and shipping channels.

Article 15. When testing offshore wells, oils and oil mixtures may not be discharged into the sea, and the gas and oil shall be thoroughly
flared so as to prevent pollution of the sea.

Article 16. Offshore oil pipelines and oil-storage installations shall always be kept in good condition, as required for the prevention
of seepage, leakage and corrosion, so as to prevent oil leakage accidents.

Article 17. In exploring and exploiting offshore oil resources, appropriate anti-pollution facilities and equipment shall be made
available, and effective technical measures shall be taken to prevent blowouts or accidents from oil leakage.

Once a blowout or oil leakage accident occurs, the unit concerned shall immediately report it to the state
administrative department of marine affairs, take effective measures to control and eliminate oil pollution and accept
the investigation and handling of the case by the department.

CHAPTER IV PREVENTION OF POLLUTION DAMAGE TO THE MARINE ENVIRONMENT BY LAND-SOURCED POLLUTANTS

Article 18. The discharge of harmful substances into the sea by coastal units must be conducted in strict compliance with the standards
for discharge and the relevant regulations promulgated by the state or the people’s governments of provinces, autonomous
regions, and municipalities directly under the Central Government.

No additional outlet for discharging sewage shall be allowed within marine sanctuaries, aquacultural grounds and seashore
scenic and tourist areas. Those outlets already in existence before the promulgation of this Law, where the
discharge of pollutants is not in conformity with the state standards, shall be improved within a prescribed period of time.

Article 19. It is prohibited to discharge waste water containing high-level radioactive matter into the sea.

Any discharge of waste water containing low-level radioactive matter into the sea, when really necessary, shall be
carried out in strict compliance with the state provisions and standards concerning radioactive protection.

Article 20. No medical sewage or industrial waste water carrying infectious pathogens may be discharged into the sea before
it has been properly treated and strictly sterilized, with the pathogens therein exterminated.

Article 21. The discharge of industrial waste water and domestic sewage containing organic and nutrient matter into bays, semi-closed
seas and other sea areas with low capacities of self-purification shall be controlled so as to prevent eutrophication
of the sea water.

Article 22. When discharging heated waste water into the sea, measures shall be taken to ensure that the water temperature in the adjacent
fishing areas is kept within state water quality standards in order to avoid damage to the aquatic resources by heat pollution.

Article 23. The use of chemical pesticides in coastal farmlands shall conform to the state provisions and standards for the
safe use of pesticides.

Article 24. No unit may discard or pile up tailings, slags, cinders, garbage and other wastes along seashores and beaches without
the approval of the environmental protection departments of the coastal provinces, autonomous regions, or municipalities
directly under the Central Government. Those who have been approved by law to set up waste yards and treatment
facilities along seashores and beaches shall build dikes to prevent the wastes from entering the sea.

Article 25. The environmental protection departments of the coastal provinces, autonomous regions, and municipalities directly
under the Central Government and the river system administrative departments shall strengthen their control
over rivers that empty into the sea to prevent them from being polluted and ensure the quality of the water in the
estuaries.

CHAPTER V PREVENTION OF POLLUTION DAMAGE TO THE MARINE ENVIRONMENT BY VESSELS

Article 26. No vessel may, in violation of the provisions of this Law, discharge oils, oil mixtures, wastes and other harmful substances
into the sea areas under the jurisdiction of the People’s Republic of China.

Article 27. Any oil tanker with a gross tonnage of 150 tons or more or any other vessel with a gross tonnage of 400 tons or more shall
be fitted with appropriate anti-pollution equipment and facilities.

Any oil tanker with a gross tonnage of less than 150 tons and any other vessel with a gross tonnage of less than 400
tons shall be fitted with special containers for recovery of residual and waste oils.

Article 28. Any oil tanker with a gross tonnage of 150 tons or more or any other vessel with a gross tonnage of 400 tons or more shall
carry on board an Oil Record Book.

Any vessels carrying more than 2,000 tons of oil in bulk as cargo shall hold a valid “insurance or other financial
security certificate for civil liability against oil pollution damage,” or a “credit certificate for civil liability against
oil pollution damage, ” or furnish other financial credit guarantees.

Article 29. The discharge of oil-polluted water from an oil tanker with a gross tonnage of 150 tons or more or any other vessel
with a gross tonnage of 400 tons or more must be conducted in compliance with the state standards and provisions for
vessel sewage discharge and shall be truthfully recorded in the Oil Record Book.

Article 30. The discharge of hold-washings and other residues by vessels carrying noxious or corrosive goods must be conducted
in compliance with the state provisions for vessel sewage discharge and shall be truthfully recorded in the Logbook.

Article 31. The discharge of radioactive substances from nuclear-powered vessels or vessels carrying such substances must
be conducted in compliance with the provisions of Article 19 of this Law.

Article 32. Vessels, when bunkering or loading and unloading oil, must observe operating instructions and take effective measures to
prevent oil spills.

Article 33. Shipbuilders and ship repairing, scrapping and salvaging units shall be provided with anti-pollution equipment and
facilities. During operations, preventive measures shall be taken against pollution of the sea by oils, oil mixtures and other
wastes.

Article 34. In case pollution has resulted from an abnormal discharge of oils, oil mixtures or other harmful substances, or from
the spilling overboard of noxious or corrosive goods, the vessel concerned shall immediately take measures to
control and eliminate such pollution and shall report the matter to the nearest harbour superintendency administration for
investigation and settlement.

Article 35. If a vessel is involved in a marine accident which has caused, or is likely to cause, a serious pollution damage
to the marine environment, the Harbour Superintendency Administration of the People’s Republic of China shall
have the power to compel action to avoid or minimize such a pollution damage.

Article 36. All vessels have the obligation to guard against pollution of the sea. Upon discovering violations of regulations or occurrences
of pollution, they shall immediately report them to the nearest harbour superintendency administration; fishing
boats may also report such occurrences to the nearest fisheries administration and fishing harbour superintendency agency.

Article 37. In the event of pollution caused by a vessel navigating, berthing or operating in a sea area under the jurisdiction
of the People’s Republic of China, officers from the Harbour Superintendency Administration of the People’s Republic
of China shall board the vessel in question to examine and handle the case. Officers from relevant government departments
authorized by the Harbour Superintendency Administration may also board the vessel to conduct examinations and report
the results thereof to the Administration for settlement.

CHAPTER VI PREVENTION OF POLLUTION DAMAGE TO THE MARINE ENVIRONMENT BY DUMPING OF WASTES

Article 38. No unit may dump any kind of waste into the sea areas under the jurisdiction of the People’s Republic of China without the
permission of the state administrative department of marine affairs.

Units that need to dump wastes must file an application with the state administrative department of marine affairs and
the dumping may be carried out only after a permit has been granted by the department.

Article 39. Units that have obtained permits for dumping wastes shall dump wastes at the designated place, within the time
limit and in accordance with the conditions specified in the permit. Wastes to be dumped shall be verified by the approving
department after their loading. Wastes to be dumped by means of vessels shall be supervised and verified by the
harbour superintendency administration at the port of departure.

Article 40. Units that have obtained permits for dumping wastes shall make a detailed record of such operations and present a
written report to the approving department thereafter. Vessels that have finished the said dumping must present a written
report to the harbour superintendency administration at the port of departure.

CHAPTER VII LEGAL LIABILITIES

Article 41. In the case of a violation of this Law that has caused or is likely to cause pollution damage to the marine environment,
the competent authorities prescribed in Article 5 of this Law may order the violator to remedy the pollution damage
within a definite time, pay a pollutant discharge fee, pay the cost for eliminating the pollution and compensate
for the losses sustained by the state; they may also give the violator a warning or impose a fine. An involved party
contesting the decision may file a suit in a people’s court within 15 days after it has received the written decision.
If a suit has not been filed and the decision has not been carried out upon the expiration of that period, the competent
authorities shall request the people’s court to enforce the decision in accordance with the law.

Article 42. Units or individuals who have suffered damage caused by marine environmental pollution shall be enpost_titled to claim compensation
from the party which caused the pollution damage. Disputes over the compensation liability and the amount
of compensation may be settled by the competent authorities. If a party contests the decision, the matter may be settled
either by resorting to the procedures specified in the Civil Procedure Law of the People’s Republic of China
or by filing a suit directly with the people’s court.

Article 43. Compensation liability may be exempted if pollution damage to the marine environment cannot be avoided, despite prompt and
reasonable measures taken, when the pollution damage is caused by any of the following circumstances:

(1) acts of war;

(2) irresistible natural calamities; or

(3) negligence or other wrongful acts in the exercise of the functions of departments responsible for the
maintenance of beacons or other navigational aids. In the case of pollution damage to the marine environment
resulting entirely from the intentional or wrongful act of a third party, that party shall be liable for compensation.

Article 44. In cases where violations of this Law result in pollution damage to the marine environment and cause heavy losses
to public or private property or deaths or injuries to persons, those who are directly responsible may be prosecuted
for criminal responsibility by judicial organs in accordance with the law.

CHAPTER VIII SUPPLEMENTARY PROVISIONS

Article 45. For the purpose of this Law, the definitions of the following terms are:

(1) ” Pollution damage to the marine environment ” means any direct or indirect introduction of substances or
energy into the marine environment which results in deleterious effects such as harm to marine living resources,
hazards to human health, hindrance to fishing and other legitimate activities at sea, impairment of the
useful quality of sea water and degradation of environmental quality.

(2) ” Fishing areas ” means spawning grounds, feeding grounds, wintering grounds and migration channels of fish and
shrimp as well as aquacultural grounds of fish, shrimp, shellfish and aquatic plants.

(3) ” Oils ” means any kind of oil and its refined products.

(4) ” Oil mixtures ” means any mixtures containing oil.

(5) ” To discharge ” means to drain pollutants into the sea, including pumping, spilling, releasing, gushing and pouring.

(6) ” To dump ” means to dispose of wastes or other harmful substances into the sea from vessels, airborne
vehicles, platforms or other means of transport, including the abandonment of vessels, airborne vehicles, platforms
and other floating apparatus.

Article 46. Where existing provisions concerning marine environmental protection contradict this Law, this Law shall prevail.

Article 47. The environmental protection department under the State Council may, in accordance with this Law, formulate
rules for its implementation, which shall be put into effect after being submitted to and approved by the State Council.

The relevant departments under the State Council and the standing committees of the people’s congresses
and people’s governments of the coastal provinces, autonomous regions, and municipalities directly under the
Central Government may, in accordance with this Law, work out concrete measures for its implementation, taking
into consideration the actual conditions prevailing at the departments or localities concerned.

Article 48. This Law shall come into force as of March 1, 1983.

ARBITRATION LAW OF THE PEOPLE’S REPUBLIC OF CHINA

The Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No.31

Arbitration Law of the People’s Republic of China adopted by the 9th Meeting of the Standing Committee of the eighth National People’s
Congress of the People’s Republic of China on August 31, 1994 are hereby promulgated and shall come into force as of the day of September
1,1995.

President of the People’s Republic of China, Jiang Zemin

August 31, 1994

Arbitration Law of the People’s Republic of China

Chapter I General Provisions

Article 1

The law is formulated with a view to ensure fair and timely arbitration of economic disputes, reliable protection to legitimate rights
and interests of parties concerned and a healthy development of the socialist market economy.

Article 2

Contractal disputes between citizens of equal status, legal persons and other economic organizations and disputes arising from property
rights may be put to arbitration.

Article 3

The following disputes cannot be put to arbitration:

Disputes arising from marriage, adoption, guardianship, bringing up of children and inheritance.

Disputes that have been stipulated by law to be settled by administrative organs.

Article 4

In settling disputes through arbitration, an agreement to engage in arbitration should first of all be reached by parties concerned
upon free will. Without such an agreement, the arbitration commission shall refuse to accept the application for arbitration by any
one single party.

Article 5

Whereas the parties concerned have reached an agreement for arbitration, the people’s court shall not accept the suit brought to the
court by any one single party involved, except in case where the agreement for arbitration is invalid.

Article 6

The members of the arbitration commission shall be chosen by the parties concerned.

Arbitration shall not be subject to the jurisdiction of administrative departments at any level and region.

Article 7

Arbitration shall be made based on true facts and relative laws to give out a fair and reasonable settlement for parties concerned.

Article 8

Arbitration shall be conducted independently according to law, free from interference of administrative organs, social groups or individuals.

Article 9

The arbitration award is final. After the award is given, the arbitration commission or the people’s court shall not accept the re-
application of the suit concerning the same dispute by any of the parties concerned.

Whereas the award cancelled or put in void under a rule by the people’s court, the parties concerned for the dispute may reach another
agreement for arbitration and apply for arbitration or bring a suit in the people’s court.

Chapter II Arbitration Commission and Arbitration Association

Article 10

An arbitration commission may be set up in the domicile of the people’s governments of municipalities directly under the Central Government
(hereinafter referred to as “municipalities”), provinces and autonomous regions or in other places according to needs. It shall not
be set up according to administrative levels.

An arbitration commission shall be set up by the relevant departments and chambers of commerce under the coordination of the people’s
governments of the cities prescribed in the preceding paragraph.

The establishment of an arbitration commission shall be registered with the judicial administrative departments of provinces, autonomous
regions and municipalities.

Article 11

An arbitration commission shall meet the following requirements:

It shall have its own name, residence and statute.

It shall have necessary property.

It shall have its own members.

It shall have appointed arbitrators.

The statute of an arbitration commission shall be formulated according to this law.

Article 12

An arbitration commission shall be composed of a chairman, two to four vice-chairmen and 7 to 11 members.

The chairman, vice-chairmen and members of an arbitration commission shall be experts in law and economy and trade with practical
work experience. Of the composition of an arbitration commission, experts in law, economy and trade shall be no less than two-thirds.

Article 13

Members of an arbitration commission shall be appointed from among the people who are fair and justice.

An arbitrator shall meet one of the following requirements:

At least eight years of work experience in arbitration.

At least eight years of experience as a lawyer.

At least eight years of experience as a judge.

Engaging in law research and teaching, with a senior academic post_title.

An arbitration commission shall prepare the list of arbitrators according to different specialties.

Article 14

An arbitration commission shall be independent of any administrative organ, without any subordinate relationship with administrative
organs. Neither would there be any subordinate relations thereof.

Article 15

The China Arbitration Association is an institutional legal person with all the separate arbitration commissions as its members. The
statute of the China Arbitration Association shall be formulated by the national congress of the association.

The China Arbitration Association is a self-disciplinary organization for arbitration commissions to supervise over the latters and
their members and arbitrators therein.

The China Arbitration Association shall formulate arbitration rules according to this law and the civil procedure law.

Chapter III Agreement for Arbitration

Article 16

An agreement for arbitration shall include the arbitration clauses stipulated in the contracts or other written agreements for arbitration
reached before or after a dispute occurs.

An arbitration agreement shall contain the following:

The expression of application for arbitration.

Matters for arbitration.

The arbitration commission chosen.

Article 17

An agreement for arbitration shall be invalid in one of the following cases:

The matters agreed for arbitration exceed the scope of arbitration provided by law.

Agreements concluded by people being incapable or restricted in civil acts.

An agreement forced upon a party by the other party by means of coercion.

Article 18

Whereas an agreement for arbitration fails to specify or specify clearly matters concerning arbitration or the choice of arbitration
commission, parties concerned may conclude a supplementary agreement. If a supplementary agreement cannot be reached, the agreement
for arbitration is invalid.

Article 19

The effect of an agreement for arbitration shall stand independently and shall not be affected by the alteration, dissolution, termination
or invalidity of a contract.

An arbitration tribunal has the right to establish the validity of a contract.

Article 20

Whereas parties concerned have doubt on the validity of an agreement for arbitration, a request can be made to the arbitration commission
for a decision or to the people’s court for a ruling. If one party requests the arbitration commission for a decision while the other
party requests the people’s court for a ruling, the people’s court shall pass a ruling.

A doubt to the effectiveness of an arbitration agreement should be raised before the first hearing at the arbitration tribunal.

Chapter IV Arbitration Procedure

Section I Application and Acceptance

Article 21

The parties concerned should meet the following requirements in applying for arbitration:

There is an agreement for arbitration.

There are specific requests for arbitration and facts and reasons.

The matters to be pure to arbitration shall fall into the limits of the authority of the arbitration commission.

Article 22

In applying for arbitration, the parties concerned shall submit the agreement and the application for arbitration and their copies.

Article 23

The application for arbitration shall specify the following matters:

Name, sex, age, profession, work unit and residence of parties concerned; the name, residence of legal persons or other organizations
and the name and position of the legal representatives or principal leading members.

The claimants’ claim and the facts and evidence on which the claim is based.

Evidence and sources of evidence and name and residence of witnesses.

Article 24

An arbitration commission shall accept the application within five days after the application is received if it deems the application
conforming to requirements and notify the parties concerned. If it deems the application unconformable to requirements, it shall
notify the parties concerned in writing and state the reasons.

Article 25

After an arbitration commission has accepted an arbitration application, it shall deliver the arbitration rules and the list of the
panel of arbitrators to the claimant within the time limit prescribed in the arbitration rules and send the copies of the arbitration
application and the arbitration rules and the list of the panel of arbitrators to the respondent.

After the respondent has received the copy of the application for arbitration, the aforesaid respondent shall file a counter-claim
with the arbitration commission. After the arbitration commission has received the counter-claim of the respondent, it shall deliver
the counter-claim to the claimant within the time limit set in the arbitration rules. If a respondent fails to submit a counter-claim,
it does not affect the arbitration proceedings.

Article 26

When parties concerned have reached an agreement for arbitration but one party brings a suit in the people’s court without notifying
the court that there is an agreement for arbitration and, after the people’s court has accepted the case, the other party submits
the agreement for arbitration before the opening of the arbitration tribunal, the people’s court shall reject the suit, except in
the case that the agreement for arbitration is invalid. If the other party fails to raise objection to the acceptance of the case
by the court before first hearing, it shall be regarded as having forfeited the agreement for arbitration and the people’s court
shall continue the hearing.

Article 27

A claimant may give up or alter its claims. The respondent may acknowledge or refute the claims and has the right to raise counter-
claims.

Article 28

Whereas due to the acts of the other party or other reasons, the arbitration award cannot be or is hard to be executed, the parties
concerned may apply for putting the property under custody.

Whereas a claimant has applied for custody to the property, the arbitration commission shall, according to the relevant provisions
of the Civil Procedure Law, submit the application of the claimant to the people’s court.

Whereas there are errors in the application, the claimant shall compensate to the respondent for the losses arising from the custody
to the property.

Article 29

The parties concerned or legal attorneys may entrust lawyers or other attorneys to handle matters relating to arbitration. In the
case where lawyers or other attorneys are entrusted with the handling of arbitration matters, the attorneys shall produce a power
of attorney to the arbitration commission.

Section II Composition of Arbitration Tribunal

Article 30

An arbitration tribunal may be composed of three arbitrators or one arbitrator. In the case of three arbitrators, there should be
a chief arbitrator.

Article 31

Whereas the parties concerned agree that the arbitration tribunal is composed of three arbitrators, each of them shall chose one arbitrator
or entrust the appointment to the chairman of the arbitration commission, with the third arbitrator jointly chosen by the parties
concerned or appointed by the chairman of the arbitration commission jointly entrusted by the two parties. The third arbitrator shall
be the chief arbitrator. Whereas the parties concerned agree to have the arbitration tribunal composed of one arbitrator, the two
parties shall jointly choose the arbitrator or entrust the choice of the arbitrator to the chairman of the arbitration commission.

Article 32

Whereas the parties concerned fail to decide on the composition of the arbitration tribunal or fail to choose arbitrators within the
time limit prescribed in the arbitration rules, the chairman of the arbitration commission shall make the decision.

Article 33

After the formation of an arbitration tribunal, the arbitration commission shall notify in writing the composition of the arbitration
tribunal matters.

Article 34

An arbitrator shall be withdrawn and the parties concerned have the right to request withdrawal, whereas:

The arbitrator is a party involved in the case or a blood relation or relative of the parties concerned or their attorneys.

the arbitrator has vital personal interests in the case.

the arbitrator has other relations with the parties or their attorneys involved in the case that might effect the fair ruling of the
case.

the arbitrator meets the parties concerned or their attorneys in private or has accepted gifts or attended banquets hosted by the
parties concerned or their attorneys.

Article 35

In requesting for withdrawal, the parties concerned shall state reasons before the first hearing of the tribunal. If the reasons are
known only after the first hearing, they may be stated before the end of the last hearing.

Article 36

The withdrawal of an arbitrator shall be decided upon by the chairman of the arbitration commission. Whereas the chairman of the arbitration
commission serves as an arbitrator, the withdrawal shall be decided upon collectively by the arbitration commission.

Article 37 Whereas an arbitrator is withdrawn or unable to perform his duty due to other reasons, another arbitrator shall be chosen
or appointed according to the relevant provisions of this law.

Whereas re-selection or re-appointment of an arbitrator is made due to withdrawal, the parties concerned may apply for the re-start
of the arbitration proceedings, but the final decision shall be made by the arbitration tribunal. The arbitration tribunal may also
make its own decision as to whether or not the arbitration proceedings will restart.

Article 38

Whereas a case provided for in 4. of Article 34 of this law is found with an arbitration and the case is very serious or a case provided
for in 6. of Article 58 of this law is found with an arbitrator, the arbitrator shall bear the legal responsibility according to
law and the arbitration commission shall remove him from the panel of arbitrators.

Section III Hearing and Ruling

Article 39

An arbitration tribunal shall hold oral hearings to hear a case. Whereas the parties concerned agree not to hold oral hearings, the
arbitration tribunal may give the award based on the arbitration application, claims and counter-claims and other documents.

Article 40

The arbitration tribunal may not hear a case in open sessions. But when parties concerned agree to have the case heard in open sessions,
the hearing may be held openly, except cases that involve State secrets.

Article 41

The arbitration commission shall notify the parties concerned the date of hearing within the time limit prescribed in the arbitration
rules. With justifiable reasons, a party concerned may request the postponement of the hearing within the time limit set in the arbitration
rules. Whether or not the hearing is postponed shall be decided upon by the arbitration tribunal.

Article 42

Whereas a claimant is absent from the hearing without justifiable reasons after receiving the written notice or withdraws from hearing
half way without the prior permission by the arbitration tribunal, it may be regarded as a withdrawal of claims.

Whereas a respondent is absent from the hearing without justifiable reasons after receiving the written notice or withdraws from hearing
half way without the prior permission by the arbitration tribunal, it may give the award by default.

Article 43

The parties concerned shall provide evidence to support their respective claims.

Whereas an arbitration tribunal deems it necessary to collect evidence, it may collect it on its own initiative.

Article 44

Whereas an arbitration tribunal deems it necessary to have the specialized issues appraised, it may submit them to the appraisal department
chosen by the parties concerned by agreement or to the appraisal department designated by the arbitration tribunal.

At the request of the parties concerned or of the arbitration tribunal, the appraisal department shall send appraisers to the hearing.
Parties concerned may, with the permission of the arbitration tribunal, raise questions to the appraisers.

Article 45

Evidence shall be produced during the course of hearing and the parties concerned may question or substantiate their evidence.

Article 46

Whereas evidences are vulnerable to be destroyed or missing and would be heard to be recovered, the parties concerned may apply to
put the evidences on custody: When a party applies for custody of evidences, the arbitration commission shall submit the evidences
of the party concerned to the people’s court at the place where the evidences are obtained.

Article 47

The parties concerned have the right to debate during the process of hearing. At the end of the debate, the chief arbitrator or the
sole arbitrator shall ask the parties concerned for the final statement.

Article 48

The arbitration tribunal shall record the hearings in writing. Whereas the parties concerned or other people involved in the arbitration
find something in their statements left out in the recording or misrecorded, they have the right to apply for correction. Whereas
corrections are not made, the application shall be recorded.

The written records of the hearings shall be signed or affixed with seals by the arbitrators, minute keepers, the parties concerned
and other people participating in the arbitration.

Article 49

After the parties have applied for arbitration, they may reach reconciliation on their own initiative. Whereas a reconciliation agreement
has been reached, a request may be made to the arbitration tribunal for an award based on the reconciliation agreement or the application
for arbitration may be withdrawn.

Article 50

Whereas the parties concerned have gone back on their word after they have reached a reconciliation agreement, they may apply for
arbitration according to the arbitration agreement.

Article 51

The arbitration tribunal may re-conciliate a case before passing the award. Whereas the parties concerned accept the reconciliation
effort of their own accord, the arbitration tribunal may conduct the reconciliation. Should the reconciliation fail, the arbitration
tribunal shall pass the ruling in time.

Whereas an agreement is reached through reconciliation, the arbitration tribunal shall compile the reconciliation document or make
an award based on the results of the agreement. The document of reconciliation and the arbitral award are equally binding legally.

Article 52

The document of reconciliation shall specify the arbitration claims and the result of the agreement between the parties concerned.
The document of reconciliation shall be signed by the arbitrator and affixed with the seal of the arbitration commission before being
delivered to the parties concerned.

The document of reconciliation becomes legally binding immediately upon received by parties concerned.

If any party concerned has gone back on his word after receiving the document of reconciliation, the arbitration tribunal shall make
a timely ruling.

Article 53

An arbitral award shall be decided by the majority of the arbitrators and the views of the minority can be written down in the record.
Whereas a majority vote cannot be reached, the award shall be decided based on the opinion of the chief arbitrator.

Article 54

The arbitral award shall specify the arbitration claims, facts in disputes, reasons for the award, result of the award, arbitration
expenses and date of the award given. Whereas parties concerned object to the specification of the facts in dispute and reasons for
the ruling, such specification and reasons may be omitted. The arbitral award shall be signed by arbitrators and affixed with the
seals of the arbitration commission. An arbitrator holding differences of views may sign or may not sign the award.

Article 55

In arbitrating disputes, the arbitration tribunal may pass the ruling on part of the facts that have already been made clear.

Article 56

An arbitration tribunal should correct the errors involving context or computation and add things that have been omitted in the rulings
in the arbitral award. The parties concerned may apply for correction with the arbitration tribunal within 30 days after the receipt
of the award.

Article 57

The arbitral award takes legal effect upon its issuing.

Chapter V Application for Canceling Arbitral Ruling

Article 58

If parties concerned have evidences to substantiate one of the following, they may apply for the cancellation of arbitral award with
the intermediate people’s court at the place where the arbitration commission resides.

There is no agreement for arbitration.

The matters ruled are out the scope of the agreement for arbitration or the limits of authority of an arbitration commission.

The composition of the arbitration tribunal or the arbitration proceedings violate the legal proceedings.

The evidences on which the ruling is based are forged.

Things that have an impact on the impartiality of ruling have been discovered concealed by the opposite party.

Arbitrators have accepted bribes, resorted to deception for personal gains or perverted the law in the ruling.

The people’s court shall form a collegial bench to verify the case. Whereas one of the aforesaid cases should be found, arbitral award
should be ordered to be cancelled by the court.

Whereas the people’s court establishes that an arbitral award goes against the public interests, the award should be cancelled by
the court.

Article 59

An application filed by the parties concerned for the cancellation of an arbitral award should be sent within six months starting
from the date of receipt of the award.

Article 60

The people’s court should rule to cancel the award or reject the application within two months after the application for cancellation
of an award is received.

Article 61

After the people’s court has accepted an application for the cancellation of an arbitral award and deems it necessary for the arbitration
tribunal to make a new award, it shall notify the arbitration tribunal for a new ruling within a certain limit of time and order
the termination of the cancellation procedure. In the case when the arbitration tribunal refuses a new ruling, the people’s court
shall rule that the cancellation procedure be restored.

Chapter VI Enforcement

Article 62

The parties concerned shall execute the arbitral award. If one of the parties refuses to execute the award, the other party may apply
for enforcement with the people’s court according to the relevant provisions of the Civil Procedure Law. The people’s court with
which the application is filed should enforce it.

Article 63

If the respondent has produced evidences to substantiate one of the following cases provided for in the second paragraph of Article
217 of the Civil Procedure Law, the award shall not be enforced after the verification by the collegiate bench of the people’s court.

Article 64

Whereas one party applies for an enforcement while the other applies for a cancellation of a award, the people’s court shall order
the termination of the performance of the award.

Whereas the people’s court has ordered the cancellation of an award, it should also order the termination of performance of the award.
Whereas an application for the cancellation of an award is rejected, the people’s court shall order the restoration of the performance
of the award.

Chapter VII Special Provision on Arbitration Involving Foreign Interests

Article 65

The provisions in this chapter apply to arbitration of disputes arising from foreign economic cooperation and trade, transportation
and maritime matters. Matters not covered by this chapter shall be handled according to other relevant provisions of this law.

Article 66

Foreign arbitration commissions may be formed by the China International Chamber of Commerce.

A foreign arbitration commission is composed of a chairman, a number of vice-chairmen and members.

The chairman, vice-chairmen and members of a foreign arbitration commission shall be appointed by the China International Chamber
of Commerce.

Article 67

Members of a foreign arbitration commission may appoint arbitrators from among foreign nationals with specialized knowledge in law,
economy and trade, science and technology.

Article 68

Whereas the parties involved in a foreign arbitration case apply for the custody of evidences, the foreign arbitration commission
shall submit the application to the intermediate people’s court at places where the evidences are produced.

Article 69

The foreign arbitration tribunal may write down its hearings on records or summary of records. The records shall be signed or affixed
with the seals of the parties concerned and other people participating in the arbitration.

Article 70

Whereas the claimant has produced evidences to substantiate one of the cases as provided for in the first paragraph of Article 260
of the Civil Procedure Law, the People’s court shall form a collegiate bench to verify the facts and order the cancellation of the
award.

Article 71

Whereas the respondent has produced evidences to substantiate one of the cases as provided for in the first paragraph of Article 260
of the Civil Procedure Law, the people’s court shall form a collegiate bench to verify the facts and order the non-performance of
the award.

Article 72

Whereas a party involved in a foreign arbitration case applies for the enforcement of the award that has taken legal effect, the party
shall apply directly with a foreign law court with the jurisdiction for recognition and enforcement if the party that should implement
the award or its property is not in the territory of the People’s Republic of China.

Article 73

The rules for foreign arbitration shall be formulated by the China International Chamber of Commerce according to this law and the
relevant provisions of the Civil Procedure Law.

Chapter VIII Supplementary Provisions

Article 74

Whereas there is a limited effective period for the arbitration stipulated in the law, the limit shall apply. Whereas there is not
a limited effective period for the arbitration stipulated by the law, the provisions about limits for proceedings shall apply.

Article 75

Before the China Arbitration Association has formulated arbitration rules, arbitration commissions may formulate interim rules for
arbitration according to this law and the relevant provisions of the Civil Procedure Law.

Article 76

Parties concerned shall pay arbitration fees according to provisions.

The schedule of arbitration fees shall be submitted for approval by the pricing administrative department.

Article 77

The arbitration of labor disputes and disputes arising from the farm work contract inside the collective agricultural organizations
shall be formulated separately.

Article 78

Whereas the relevant arbitration regulations formulated before the enforcement of this law come into conflict with the provisions
of this law, the provisions of this law shall prevail.

Article 79

The arbitration organization set up in cities where the people’s governments of the municipalities, provinces and autonomous regions
are located and other cities which have districts shall be reorganized according to the relevant provisions of this law. Those not
reorganized shall be terminated in one year’s time starting from the date of the implementation of this law.

Other arbitration organizations set up before the implementation of this law and are not in conformity to the provisions of this law
shall be terminated starting from the date of the implementation of this law.

Article 80

The law shall enter into force as of September 1, 1995.

Attachment:Relevant Provisions of the Civil Procedure Law

Article 217

Whereas the party against whom the application is made provides evidences which have proved that the arbitration award involves any
of the following circumstances, the people’s court shall, after examination and verification by a collegial panel, order not to perform
the arbitration award:

The parties have not stipulated clauses on arbitration in the contracts, or have not subsequently reached a written agreement for
arbitration;

Matters proposed for arbitration are out of scope of the agreement for arbitration or the limits of authority of the arbitration agency;

The composition of the arbitration division or the procedure for arbitration is not in conformity with the legal procedure;

The main evidences are not sufficient to substantiate the facts;

There are errors in the cited law; or

The arbitrators committed acts of malpractice for personal benefits and perverted the law in the arbitration of the case.

Article 260

Whereas the person against whom the application is made provides evidences which prove that the arbitration award made by the foreign
affairs arbitration agency of the People’s Republic of China involves any of the following circumstances, the people’s court shall,
after examination and verification by a collegial panel, order to stop the execution of the award:

The parties concerned have not stipulated clauses on arbitration in the contract or have not subsequently reached a written agreement
for arbitration;

The person against whom the application is made is not duly notified to appoint the arbitrator or to proceed with the arbitration,
or the said person fails to state its opinions due to reasons for which he is not held responsible;

The composition of the arbitration division or the procedure for arbitration is not in conformity with the rules of arbitration; or

Matters for arbitration are out of the scope of the agreement for arbitration or the limits of authority of the arbitration agency.

Teachers Law of the People’s Republic of China

CHAPTER I GENERAL PROVISIONS

CHAPTER II RIGHTS AND OBLIGATIONS

CHAPTER III QUALIFICATIONS AND EMPLOYMENT

CHAPTER IV CULTIVATION AND TRAINING

CHAPTER V ASSESSMENT

CHAPTER VI MATERIAL BENEFITS

CHAPTER VII REWARDS

CHAPTER VIII LEGAL LIABILITY

CHAPTER IX SUPPLEMENTARY PROVISIONS

Article 1 This Law is formulated for the purpose of safeguarding teachers’ legitimate rights and interests, building up a contingent of teachers
who are sound in moral character and good in professional competence, and promoting the development of socialist education.

Article 2 This Law shall apply to teachers specially engaged in education and teaching at schools of various levels and categories or other
institutions of education.

Article 3 Teachers are professionals who exercise the functions of education and teaching and are charged with the duty of imparting knowledge
and educating people, training builders and successors for the socialist cause and enhancing the quality of the nation. Teachers
shall devote themselves to the educational cause of the people.

Article 4 People’s governments at various levels shall adopt measures to strengthen ideological and political education and professional training
of teachers, improve their working and living conditions, safeguard their legitimate rights and interests and raise their social
status.

Teachers shall be respected in the whole society.

Article 5 The administrative department of education under the State Council shall be in charge of the work concerning teachers in the whole
country.

The departments concerned under the State Council shall, within the scope of their functions and powers, be responsible for the relevant
work concerning teachers.

Schools and other institutions of education shall administer the affairs of teachers on their own according to the relevant provisions
of the State.

Article 6 September 10 of each year is designated as Teachers’ Day.

CHAPTER II RIGHTS AND OBLIGATIONS

Article 7 Teachers shall enjoy the following rights:

(1) to conduct educational and teaching activities and carry out reform and experiment in education and teaching;

(2) to engage in scientific research and academic exchanges, join professional academic societies and fully express their views in
academic activities;

(3) to give guidance to students in their studies and development and evaluate students’ conduct and academic achievements;

(4) to obtain salaries and remunerations on schedule and enjoy the welfare benefits prescribed by the State and the leave with pay
in winter and summer vacations;

(5) to put forward opinions and suggestions regarding education, teaching, management of schools and the work of the administrative
departments of education; and to participate in the democratic management of schools through congresses of teachers, staff and workers,
or through other forms; and

(6) to take refresher courses or other forms of training.

Article 8 Teachers shall perform the following obligations:

(1) to abide by the Constitution, laws and professional ethics, and be paragons of virtue and learning;

(2) to implement the educational policies of the State, observe relevant rules and regulations, carry out schools’ teaching plans,
fulfil teaching contracts and accomplish educational and teaching tasks;

(3) to conduct education among students in the basic principles defined in the Constitution, education in patriotism, national unity
and the legal system, and education in ideology, morality, culture, science and technology, and to organize and lead students to
engage in beneficial social activities;

(4) to concern themselves with all students, love them, respect their dignity and promote their all-round development in such aspects
as morality, intelligence and physique;

(5) to stop acts that are harmful to students and other acts that encroach upon students’ legitimate rights and interests, criticise
and combat the phenomena that impair the sound growth of students; and

(6) to ceaselessly raise their ideological level and political consciousness and improve their professional competence in education
and teaching.

Article 9 To guarantee that teachers complete their educational and teaching tasks, people’s governments at various levels, administrative
departments of education, relevant departments, schools and other institutions of education shall perform the following functions
and duties;

(1) to provide educational and teaching facilities and equipment that are up to the safety standards set by the State;

(2) to provide necessary books, reference materials and other articles for education and teaching;

(3) to encourage and help teachers in their creative work in education, teaching and scientific research; and

(4) to back up teachers in their efforts to stop acts that are harmful to students and other acts that encroach upon students’ legitimate
rights and interests.

CHAPTER III QUALIFICATIONS AND EMPLOYMENT

Article 10 The State shall institute a system of qualifications for teachers.

All Chinese citizens, who abide by the Constitution and laws, take a keen interest in education, have sound ideological and moral
character, possess a record of formal schooling as stipulated in this Law or have passed the national teachers’ qualification examinations,
have educational and teaching ability may, after being evaluated as qualified, obtain qualifications for teachers.

Article 11 To obtain qualifications for teachers, corresponding records of formal schooling are required as follows:

(1) to obtain qualifications for a teacher in a kindergarten, one shall be a graduate of an infant normal school or upwards;

(2) to obtain qualifications for a teacher in a primary school, one shall be a graduate of a secondary normal school or upwards;

(3) to obtain qualifications for a teacher in a junior middle school, or a teacher for general knowledge courses and specialized courses
in a primary vocational school, one shall be a graduate of a specialized higher normal school, or other colleges or universities
with two or three years’ schooling or upwards;

(4) to obtain qualifications for a teacher in a senior middle school, or a teacher for general knowledge courses and specialized courses
in a secondary vocational school, technical school or a vocational high school, one shall be a graduate of a normal college or other
colleges or universities with four years’ schooling or upwards; the corresponding record of formal schooling for the qualifications
of instructors who give guidance to students’ fieldwork at secondary vocational schools, technical schools or vocational high schools
shall be prescribed by the administrative department of education under the State Council;

(5) to obtain qualifications for a teacher in an institution of higher learning, one shall be a postgraduate or university graduate;
and

(6) to obtain qualifications for a teacher for adult education, one shall be a graduate respectively of an institution of higher learning,
a secondary school or upwards depending on the level and category of the adult education.

Citizens who, without the records of formal schooling for teachers’ qualifications as stipulated in this Law, apply for teachers’
qualifications must pass the national teachers’ qualification examinations. The national teachers’ qualifications examination system
shall be prescribed by the State Council.

Article 12 The administrative department of education under the State Council shall work out transition measures on qualifications for teachers
who, before the enforcement of this Law, have been teaching at schools or other institutions of education, but do not have the record
of formal schooling as stipulated in this Law.

Article 13 The qualifications for teachers in primary and middle schools shall be evaluated and approved by the administrative departments of
education under the local people’s governments at or above the county level. The qualifications for teachers in secondary vocational
schools and technical schools shall be evaluated and approved by the relevant competent departments, under the auspices of the administrative
departments of education under the local people’s governments at or above the county level. The qualifications for teachers of regular
institutions of higher education shall be evaluated and approved by the administrative departments of education under the State Council,
or of provinces, autonomous regions, or municipalities directly under the Central Government, or by schools authorized by such departments.

If a citizen who possesses a record of formal schooling as stipulated in this Law, or who has passed the national teachers’ qualification
examinations, requests the departments concerned to evaluate and approve his qualifications for teachers, the departments concerned
shall give evaluation and approval in accordance with the requirements provided for in this Law.

Those with qualifications for teachers who are for the first time appointed as teachers shall undergo a probation period.

Article 14 Those who have been deprived of political rights or subjected to fixed-term imprisonment or even more severe punishment for intentional
crime shall not be allowed to obtain qualifications for teachers; and those who have already obtained qualifications for teachers
shall forfeit such qualifications.

Article 15 Graduates of normal schools at various levels shall be engaged in education and teaching in accordance with the relevant provisions
of the State.

The State shall encourage graduates of non-normal schools of higher learning to teach at primary and secondary schools or vocational
schools.

Article 16 The State shall institute a system of professional post_titles for teachers. The specific measures shall be worked out by the State Council.

Article 17 Schools and other institutions of education shall gradually institute a system of appointment for teachers. Appointment of teachers
shall be based on the principle of equality between both parties. The school and the teacher shall sign an appointment contract
defining each other’s rights, obligations and responsibilities.

Steps and measures for implementing the appointment system for teachers shall be formulated by the administrative department of education
under the State Council.

CHAPTER IV CULTIVATION AND TRAINING

Article 18 People’s governments at various levels and the departments concerned shall make a success of normal school education and adopt measures
to encourage outstanding youth to study at normal schools at various levels. Schools for teachers’ advanced studies at different
levels shall undertake the task of training teachers for primary and secondary schools.

Non-normal schools shall undertake the task of cultivating and training primary and secondary school teachers.

Students of normal schools at various levels shall enjoy professional scholarships.

Article 19 The administrative departments of education under the people’s governments at various levels, the departments in charge of school
affairs and the schools shall work out teachers’ training programmes and conduct various forms of ideological, political and professional
training among teachers.

Article 20 State organs, enterprises, institutions and other social organizations shall provide convenience and assistance to teachers in their
social investigation and social practice.

Article 21 People’s governments at various levels shall adopt measures to cultivate and train teachers for regions inhabited by national minorities
and for outlying and poverty-stricken areas.

Article 22 Schools or other institutions of education shall conduct assessment of teachers’ political awareness and ideological level, professional
qualifications, attitude towards work and their performances.

The administrative departments of education shall guide and supervise the assessment work for teachers.

Article 23 Assessment shall be conducted in an objective, fair and accurate manner and in the process of assessment, opinions from teachers
themselves, their colleagues and students shall be taken into full consideration.

Article 24 The assessment results shall be the basis for teachers’ appointment and pay rise as well as rewards and punishments.

Article 25 Teachers’ average salary shall not be lower or shall be higher than that of State public servants and shall be gradually raised.
A regular system for promotion and pay rise shall be established, and the specific measures therefor shall be formulated by the
State Council.

Article 26 Teachers of primary and secondary schools and vocational schools shall enjoy allowances commensurate with the length of their teaching
and other allowances, and the specific measures therefor shall be formulated by the administrative department of education under
the State Council in conjunction with the departments concerned.

Article 27 Local people’s governments at various levels shall grant subsidies to teachers and graduates from secondary vocational schools or
from schools at higher levels who engage themselves in education and teaching in regions inhabited by national minorities or in outlying
and poverty-stricken areas.

Article 28 Local people’s governments at various levels and the departments concerned under the State Council shall give priority and preferential
treatment to the construction, renting and sale of houses for teachers in urban areas.

People’s governments at the county and township levels shall provide conveniences for primary and secondary school teachers in rural
areas in solving the housing problems.

Article 29 Teachers shall enjoy equal treatment in medical care as the State public servants in the localities. They shall be given regular
health check-ups and shall enjoy rest and recuperation holidays arranged in the light of local conditions.

Medical institutions shall provide conveniences in medical care for teachers in the localities.

Article 30 After retirement or quitting work, teachers shall enjoy the material benefits as prescribed by the State.

Local people’s governments at or above the county level may appropriately raise the ratio of pensions for the retired primary and
secondary school teachers who have long been engaged in education and teaching.

Article 31 People’s governments at various levels shall adopt measures to improve the material benefits of teachers who are paid, with subsidies
from the State, by the collectives, gradually making sure that such teachers receive equal pay for equal work with teachers who are
paid by the State. The specific measures therefor shall be formulated by the local people’s governments at various levels in the
light of their actual local conditions.

Article 32 The material benefits of teachers at schools run by different sectors of the society shall be determined and guaranteed by the sponsors
themselves.

Article 33 Teachers who have achieved excellent results in education and teaching, in the training of personnel, and in scientific research,
educational reform, school development, social services and work-study programmes shall be commended and awarded by the schools which
they belong to.

Teachers who have made outstanding contributions shall be commended and awarded by the State Council, the local people’s governments
at various levels and the relevant departments under them.

Teachers who have made major contributions shall be conferred honorary post_titles in accordance with relevant provisions of the State.

Article 34 The State shall encourage and support social organizations and individuals to donate money to foundations established according to
law for awarding teachers.

Article 35 Anyone who insults or assaults a teacher shall be given an administrative sanction or penalty depending on the different circumstances;
those who have caused losses or injury shall be ordered to compensate for the losses; and if the circumstances are serious enough
to constitute a crime, the offender shall be investigated for criminal responsibility according to law.

Article 36 Anyone who retaliates against the teachers who have made complaints, charges against or exposures of, any organization or individual
in accordance with the law shall be ordered by his or her unit or by the authorities at a higher level to make a rectification; if
the circumstances are serious, the offender may be given an administrative sanction in the light of the actual conditions.

State functionaries who retaliate against teachers, if the case constitutes a crime, shall be investigated for criminal responsibility
in accordance with the provisions of Article 146 of the Criminal Law.

Article 37 Teachers involved in any of the following circumstances shall be given administrative sanctions or dismissed by their schools, other
institutions of education or administrative departments of education:

(1) intentionally not accomplishing educational and teaching tasks and thus causing losses to educational and teaching work;

(2) imposing corporal punishments on students and refusing to mend their way after being criticized;

(3) having improper conduct and insulting students, thus making very bad impressions.

Teachers who are involved in any of the circumstances specified in item (2) or (3) of the preceding paragraph, if the circumstances
are serious enough to constitute a crime, shall be investigated for criminal responsibility according to law.

Article 38 The local people’s governments shall order anyone who, in violation of the provisions of this Law, defaults on paying teachers’ salaries
or infringes upon other legitimate rights and interests of teachers, to make a rectification within a specified time limit.

Anyone who violates the State’s financial and accounting rules and regulations, misappropriates the State’s funds allocated for education,
seriously hampers the work of education and teaching, defaults on paying teachers’ salaries and impairs their legitimate rights and
interests, shall be ordered by the authorities at a higher level to return the misappropriated funds within a specified time limit,
and those who are held directly responsible shall be given administrative sanctions; and if the circumstances are serious enough
to constitute a crime, the offenders shall be investigated for criminal responsibility according to law.

Article 39 Teachers whose legitimate rights and interests are infringed upon by schools or other institutions of education or who are not satisfied
with the settlement made by schools or other institutions of education may appeal to the administrative departments of education.
The administrative departments of education shall deal with the matter within 30 days from receipt of the appeal.

Teachers who hold that the administrative departments concerned under the local people’s governments have infringed upon the rights
they shall enjoy under this Law may appeal to the people’s governments at the corresponding levels or to the departments concerned
under the people’s governments at the next higher levels. The departments concerned under the people’s governments at the corresponding
levels or the departments concerned under the people’s governments at the next higher levels shall deal with the appeals.

CHAPTER IX SUPPLEMENTARY PROVISIONS

Article 40 The meanings of the following expressions as used in this Law are:

(1) “Schools of various levels and categories” refer to the schools that carry out pre-school education, regular primary education,
regular secondary education, vocational education, regular higher education, special education or adult education.

(2) “Other institutions of education” refer to children’s palaces, local teaching and research sections and institutions that conduct
audio- visual education.

(3) “Primary and secondary school teachers” refer to teachers working in kindergartens, institutions of special education, regular
primary and secondary schools, institutions of primary and secondary education for adults, secondary vocational schools and other
institutions of education.

Article 41 The relevant provisions of this Law may be applied mutatis mutandis in the light of the actual conditions to the educational and
teaching assistants of schools or other institutions of education, as well as teachers and the educational and teaching assistants
of schools of other categories.

Relevant regulations governing the teachers and the educational and teaching assistants of colleges and schools of the Army shall
be formulated by the Central Military Commission on the basis of this Law.

Article 42 The measures for the employment of foreign teachers shall be formulated by the administrative department of education under the State
Council.

Article 43 This law shall come into effect as of January 1, 1994.

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China Laws

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

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

DECISION OF THE THIRD SESSION OF THE SIXTH NATIONAL PEOPLE’S CONGRESS ON AUTHORIZING THE STATE COUNCIL TO FORMULATE INTERIM PROVISIONS OR REGULATIONS CONCERNING THE REFORM OF THE ECONOMIC STRUCTURE AND THE OPEN POLICY

CUSTOMS NOTICE TO FOREIGN EXPERTS EMPLOYED TO WORK IN CHINA GOVERNING CUSTOMS PROCEDURES FOR THEIR ENTRY AND EXIT

PROVISIONS OF THE STATE COUNCIL ON SEVERAL ISSUES CONCERNING THE IMPORT AND EXPORT OF TEXTILES

INTERIM REGULATIONS ON THE ADMINISTRATION OF TOURIST AGENCIES

INTERIM MEASURES FOR THE ADMINISTRATION OF PETTY TRADE IN THE BORDER AREAS

ORGANIC LAW OF THE PEOPLE’S COURTS

MARINE ENVIRONMENT PROTECTION LAW

ARBITRATION LAW OF THE PEOPLE’S REPUBLIC OF CHINA

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