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The Standing Committee of the National People’s Congress
Order of the President of the People’s Republic of China
No.8
Adopted at the 16th Meeting of the Standing Committee of the Sixth National People’s Congress on June 25, 1986, amended in pursuance
of the(Decision on the Amendment of the Land Administration Law of the People’s Republic of China) made at the 5th Meeting of the
Standing Committee of the Seventh National People’s Congress on December 29, 1988 and revised at the 4th Meeting of the Standing
Committee of the Ninth National People’s Congress on August 29, 1998.
The Standing Committee of the National People’s Congress
August 29, 1998
Land Administration Law of the People’s Republic of China
Chapter I General Provisions
Article 1
This Law is enacted in accordance with the Constitution with a view to strengthening land administration, safeguarding the socialist
public ownership of land, protecting and developing land resources, rationally utilizing the land, earnestly protecting the cultivated
land and promoting sustainable socio-economic development.
Article 2
The People’s Republic of China practises the socialist public ownership of land, namely ownership by the whole people and collective
ownership by the laboring masses.
Ownership by the whole people namely the ownership of state-owned land shall be exercised by the State Council on behalf of the state.
No unit or individual shall infringe on and occupy, buy and sell or illegally transfer land in other forms. Land use right may be
transferred in accordance with law.
The state may, one of necessity of public interest, requisition land collectively owned in accordance with law.
The state practises the system of paid-for use for state-owned land in accordance with law. However, appropriation of state-owned
land use right by the state within the scope prescribed by law is excluded.
Article 3
Most sparing and rational land utilization and earnest protection of cultivated land constitute China’s basic state policy. People’s
governments at all levels should take measures in overall planning, strict administration, protection and development of land resources
and curbing illegal acts of occupation of land.
Article 4
The state practises the system of land use control.
The state compiles overall planning for land utilization, provides for land uses and classifies land as farm land, land for construction
and un-utilized land. Strict restriction shall be imposed on turning farm land into land for construction, quantum of land for construction
shall be controlled and special protection provided for cultivated land.
Farm land referred to in the preceding paragraph means land used directly for agricultural production including cultivated land, forest
land, grassland, land for farmland water conservancy and water surface for cultivation and breeding; land for construction means
land for building constructions and structures including land for urban and rural residences and public facilities, land for industries
and mines, land for communications and water conservancy works, land for tourism and land for military installations; un-utilized
land means land other than farm land and land for construction.
Any unit or individual that uses land must use the land in strict accordance with the uses determined by the overall planning for
land utilization.
Article 5
The competent department of land administration under the State Council shall be uniformly responsible for the work of land administration
and supervision nationwide.
The establishment of competent departments of land administration of local people’s governments at or above the county level and their
responsibilities shall be determined by the people’s governments of the provinces, autonomous regions and municipalities directly
under the Central Government pursuant to the relevant provisions of the State Council.
Article 6
Any unit or individual has the obligation to abide by the laws and regulations on land administration and has the right to report
on or file a charge against any act violating the laws and regulations on land administration.
Article 7
Units and individuals that have made remarkable achievements in the protection and development of land resources, rational utilization
of land and conduct of related scientific research shall be rewarded by the people’s government.
Chapter II Land Ownership and Use Right
Article 8
Land in urban areas of cities belongs to the state.
Land in rural areas and suburban areas of cities excluding those belonging to the state prescribed by law belongs to peasants’ collective
ownership; house sites, land allotted for personal needs and hilly land allotted for private use belongs to peasants’ collective
ownership.
Article 9
State-owned land and land collectively owned by peasants may be determined in accordance with law to be used by units or individuals.
Units and individuals using the land have the obligation to protect, manage and rationally utilize the land.
Article 10
Peasants’ collectively-owned land that belongs to peasants’ collective ownership of a village according to law shall be managed and
administered by the village collective economic organization or villagers’ committee; the land that belongs separately to more than
two rural collective economic organizations and owned collectively by peasants shall be managed and administered by the respective
rural collective economic organizations or villagers’ teams; the land that belongs to village(township) peasants’ collective ownership
shall be managed and administered by the village(township) rural collective economic organization.
Article 11
People’s governments at the county level shall enter into registration in a register, issue certificates in confirmation of the ownership
for the land collectively owned by peasants.
People’s governments at the county level shall enter into registration in a register, issue certificates in confirmation of the land
use right for construction for land collectively owned by peasants to be used for non-agricultural construction in accordance with
law. People’s governments at or above the county level shall enter into registration in a register and issue certificates in confirmation
of the right to use for state-owned land used by units and individuals in accordance with law; among which the specific registration
and certificate-issuing organ for state-owned land used by the Party and state organs shall be determined by the State Council. Confirmation
of ownership or the right to use of forest land and grassland, confirmation of the right to use for cultivation and breeding of water
surface and beaches and shoals shall be handled pursuant to the relevant provisions of the ((Forest Law of the People’s Republic
of China)),the ((Grassland Law of the People’s Republic of China)) and the ((Fishery Law of the People’s Republic of China)).
Article 12
Whoever changes land ownership and use in accordance with law should go through formalities of change in registration of land.
Article 13
The land the ownership and the right to use of which have been registered in accordance with law is protected by law, upon which no
unit and individual shall infringe.
Article 14
Land collectively owned by peasants shall be contracted for management by members of the respective collective economic organization
for cultivation, forestry, animal husbandry and fishery production. The duration of land contracting and management shall be 30 years.
The contract issuing party and the contractor should conclude a contract agreeing on the rights and obligations of both parties.
Peasants who contract management of the land have the obligation to protect and utilize the land pursuant to the agreement in the
contract. Peasants’ right to contract land for management is protected by law.
Within the duration of land contracting and management, in the event of appropriate adjustment of land contracted among individual
contractors, it must have the consent of over two thirds of the members of the villagers’ conference or over two thirds of the villagers’
representatives, and be submitted to the competent department of agriculture administration of village(township) people’s government
and people’s government at the county level for approval.
Article 15
State-owned land may be contracted for management by units or individuals for cultivation, forestry, animal husbandry and fishery
production. Land collectively owned by peasants may be contracted and managed by units or individuals other than those in the collective
economic organization for cultivation, forestry, animal husbandry and fishery production. The contract issuing party and the contractor
should conclude a contract agreeing on the rights and obligations of both parties. The duration of land contracting and management
shall be agreed on in the contract. The units and individuals that contract the land for management have the obligation to protect
and rationally utilize the land pursuant to the use agreed on in the contract.
For land collectively owned by peasants contracted out for management by units or individuals other than those in the respective collective
economic organization, it must have the consent of over two thirds of the members of the peasants’ conference or over two thirds
of the villagers’ representatives and be submitted to the village(township) people’s government for approval.
Article 16
Disputes over land ownership and the right to use shall be resolved by the parties interested through consultation; it shall be handled
by the people’s government in the event of failure of consultation.
Disputes between units shall be handled by people’s governments at or above the county level; disputes between individuals and those
between an individual and a unit shall be handled by the village-level people’s governments or people’s governments at or above the
county level.
The party interested that refuses to obey the decision on the handling by the people’s government concerned may, within 30 days starting
from the date of receipt of the notice on the decision on handling, file a suit at a people’s court.
Neither party shall alter the status of land utilization prior to the resolution of the dispute over the land ownership and the right
to use.
Chapter III Overall Planning for Land Utilization
Article 17
People’s governments at all levels should, pursuant to the planning for national socio-economic development, requirements of territorial
treatment and resources and environment protection, land supply ability as well as the demand for land for various construction,
organize the compilation of overall planning for land utilization.
The duration of planning for overall planning for land utilization shall be determined by the State Council.
Article 18
The overall planning for land utilization at the lower level shall be compiled pursuant to the overall planning for land utilization
at the next higher level.
The quantum of land for construction in the overall planning for land utilization compiled by local people’s governments at all levels
shall not exceed the control targets determined in the overall planning for land utilization at the next higher level, and the quantum
of preserved cultivated land shall not be lower than the control targets determined by the overall planning for land utilization
at the next higher level.
The overall planning for land utilization compiled by people’s governments of the provinces, autonomous regions and municipalities
directly under the Central Government should ensure that there is no reduction in the quantum of cultivated land within their respective
administrative areas.
Article 19
The overall planning for land utilization shall be compiled in accordance with the following principles:
(1)
strict protection of basic farmland, control of occupation of farmland for non-agricultural construction;
(2)
improvement of land use rate;
(3)
overall arrangement for land for various purposes and various areas;
(4)
protection and improvement of the ecological environment, and guarantee of sustainable land use; and
(5)
balance between occupation of cultivated land and development and reclamation of cultivated land.
Article 20
The overall planning for land utilization at the county level should delimit land use zones and define land uses.
Village(township) overall planning for land utilization should delimit land use zones, determine the use of every plot of land on
the basis of the conditions for land use and an announcement to the effect shall be made.
Article 21
Overall planning for land utilization shall be examined and approved by different levels.
The overall planning for land utilization of the provinces, autonomous regions and municipalities directly under the Central Government
shall be submitted to the State Council for approval.
The overall planning for land utilization of municipalities wherein the people’s governments of the provinces and autonomous regions
are located and municipalities of a population of over one million as the municipalities designated by the State Council shall, upon
the examination and consent of the people’s governments of the provinces and autonomous regions, be submitted to the State Council
for approval.
The overall planning for land utilization other than those prescribed in the Second Paragraph and Third Paragraph of this Article
shall be submitted level by level to the people’s governments of the provinces, autonomous regions and municipalities directly under
the Central Government for approval; among which the village(township) overall planning for land utilization may be approved by the
people’s governments of municipalities and autonomous prefectures with subordinate districts with authorization by the people’s governments
at the provincial level.
The overall planning for land utilization once approved must be strictly implemented.
Article 22
The scale of land used for urban construction should meet the standards set by the state, full use of the existing land for construction
should be made, and no farmland or as less as possible farmland should be occupied.
Urban overall planning, village and township planning should be coupled with overall planning for land utilization, the scale of land
used for construction in urban overall planning, village and township planning must not exceed the scale of land used for urban,
village and township construction determined in the overall planning for land utilization.
Within urban planning zones, village and township planning zones, land used for urban, village and township construction should accord
with urban planning and village and township planning.
Article 23
Planning for integrated harnessing, development and exploitation of rivers and lakes should be coupled with overall planning for land
utilization. Within the range of administration and protection of rivers, lakes and reservoirs as well as within flood storage areas
and flood detention areas, land utilization should accord with the planning for integrated harnessing, development and exploitation
of rivers and lakes, accord with the requirements for flood passage, flood storage and discharge of water in river courses and lakes.
Article 24
People’s governments at all levels should strengthen administration of land utilization plan and practise quantum control of land
used for construction.
Annual land use plan shall be compiled pursuant to the national socio-economic development plan, state industrial policies, overall
planning for land utilization as well as the actual conditions of land used for construction and land utilization. The annual land
use plan, the procedures for the compilation, examination and approval of which are identical to those for the compilation, examination
and approval of the overall planning for land utilization, once examined, approved and transmitted to the lower levels, must be strictly
adhered to.
Article 25
People’s governments of the provinces, autonomous regions and municipalities directly under the Central Government should list the
state of implementation of the annual land use plan as content of the state of implementation of the national socio-economic development
plan and report to the people’s congresses at the corresponding level.
Article 26
Revision of the approved overall planning for land utilization must be submitted to the original approval organ for approval; no alteration
shall be made in land uses determined in the overall planning for land utilization without approval.
In case of necessity of alteration in overall planning for land utilization for land for construction of big-size energy, transport
and water conservancy infrastructure approved by the State Council, revision of the overall planning for land utilization shall be
made pursuant to the approval document of the State Council.
In case of necessity of alteration in overall planning for land utilization for land for construction of energy, transport and water
conservancy infrastructure approved by people’s governments of the provinces, autonomous regions and municipalities directly under
the Central Government, where it falls within the authority of approval for the overall planning for land utilization of people’s
governments at the provincial level, revision of the overall planning for land utilization shall be made pursuant to the approval
document of the people’s governments at the provincial level.
Article 27
The state establishes the land survey system.
The competent departments of land administration of people’s governments at and above the county level shall, in conjunction with
the departments concerned at the corresponding level, conduct land survey. Land owners or users should cooperate in the survey and
provide relevant materials.
Article 28
The competent departments of land administration of people’s governments at and above the county level shall, in conjunction with
the departments concerned at the corresponding level and in pursuance of land survey results, planned land uses and uniform standards
set by the state, evaluate the grades of land.
Article 29
The state establishes land statistics system.
The competent departments of land administration of people’s governments at and above the county level and the statistics departments
at the corresponding level jointly formulate statistical survey schemes, carry our land statistics in accordance with law and publish
land statistical information at regular intervals. Land owners or users should provide relevant information and must not make false
reports, concealments, refuse to report and delay in report.
The competent departments’ of land administration and statistics departments’ jointly published land area statistical information
constitute the basis of people’s governments at all levels for the compilation of overall planning for land utilization.
Article 30
The state establishes the national land administration information system for dynamic monitoring of the state of land utilization.
Chapter IV Cultivated Land Protection
Article 31
The state protects cultivated land and strictly controls turning cultivated land into non-cultivated land.
The state practises the system of compensation for the occupation and use of land. For the occupation and use of cultivated land for
non-agricultural construction with approval, the unit that occupies and uses cultivated land shall be responsible for the reclamation
of cultivated land equivalent to the quantity and quality of cultivated land occupied and used in accordance with the principle of
“quantity of reclaimed land being equivalent to that occupied”; where there are no conditions for reclamation or the reclaimed land
does not conform to requirements, cultivated land reclamation fee should be paid as prescribed by the provinces, autonomous regions
and municipalities directly under the Central Government, the special-purpose fund shall be used for the reclamation of new cultivated
land.
People’s governments of the provinces, autonomous regions and municipalities directly under the Central Government should work out
cultivated land reclamation plan, supervise units that occupy and use cultivated land in the reclamation of cultivated land in accordance
with the plan or in the organization of reclamation of cultivated land in accordance with the plan and carry out acceptance checks.
Article 32
Local people’s governments at and above the county level may demand the units that occupy and use cultivated land to use the soil
of the cultivated layer of cultivated land for soil improvement of newly reclaimed cultivated land, inferior quality land or other
cultivated land.
Article 33
People’s governments of the provinces, autonomous regions and municipalities directly under the Central Government should strictly
implement the overall planning for land utilization and annual land use plan and take measures to ensure that there is no decrease
in the quantum of cultivated land within their respective administrative areas; where there is decrease in the quantum of cultivated
land, the locality shall be ordered by the State Council to organize reclamation of cultivated land the quantity and quality of which
is equivalent to those reduced within the specified time period, and the competent department of land administration under the State
Council shall in conjunction with the competent department of agriculture administration conduct acceptance checks. Individual province
or municipality directly under the Central Government whose quantum of newly reclaimed cultivated land is not adequate to compensate
the quantum of cultivated land occupied and used after land used for newly added construction for paucity of reserve land resources,
a report must be submitted to the State Council for approval for the reduction and exemption of the quantity of reclamation of cultivated
land within the respective administrative area and reclamation be carried out in another place.
Article 34
The state practises the system of protection for basic farmland. The following cultivated land shall be included in the basic farmland
protection zones in accordance with the overall planning for land utilization and strict administration exercised:
(1)
cultivated land within production bases for food grains, cotton and oils determined upon approval by the competent departments concerned
under the State Council or local people’s governments at and above the county level;
(2)
cultivated land with good water conservancy and water and soil conservation works, medium and low yield farmland the transformation
plan of which is being carried out as well as those that may be transformed;
(3)
production bases for vegetables;
(4)
experimental plots for agricultural scientific research and teaching; and
(5)
other cultivated land that should be included in basic farmland protection zones as prescribed by the State Council.
The basic farmland delimited by the provinces, autonomous regions and municipalities directly under the Central Government should
account for over eighty percent of the cultivated land within the respective administrative areas.
A basic farmland protection zone shall be delimited and demarcated with a village(township) as a unit, the delimitation of a zone
and demarcation of the boundary shall be organized and carried out by the competent department of people’s government at the county
level in conjunction with the competent department of agriculture administration at the same level.
Article 35
People’s governments at all levels should take measures to maintain irrigation and drainage works, improve soil and soil fertility,
prevent land desertification, salinization, water and soil erosion and land pollution.
Article 36
Economy in land use must be practised for non-agricultural construction, no cultivated land shall be occupied and used where barren
land can be used; no good land shall be occupied and used where inferior land can be used.
Occupation and use of cultivated land for setting up kilns, building tombs or building of houses, sand digging, quarrying, mining
and earth gathering on cultivated land without authorization shall be prohibited.
Occupation and use of basic farmland for the development of forestry and fruit industry and digging of ponds for fish breeding shall
be prohibited.
Article 37
All units and individuals shall be prohibited to let cultivated land lie idle or make it barren. The cultivated land occupied and
used for non-agricultural construction the formalities of examination and approval of which have been completed which has been left
unused within a year but may be cultivated and harvested should be recultivated by the collective or individuals that previously
cultivated the said plot of cultivated land, and cultivation may be organized by the land use unit; where construction has not been
started for over a year, idle fee should be paid in accordance with the provisions of the provinces, autonomous regions and municipalities
directly under the Central Government; where the land has not been used for two consecutive years, the people’s government at the
county level shall, subject to the approval of the original approval organ, withdraws the land use right of the land use unit without
compensation; the said plot of land previously collectively owned by peasants should be handed back to the original rural collective
economic organization for resumption of cultivation.
Idle land the land use right of which has been obtained in the form of transfer for real estate development within the range of an
urban planning zone shall be handled in pursuance of the relevant provisions of the ((Urban Real Estate Administration Law of the
People’s Republic of China)).
For a unit or an individual contracting the management of cultivated land that let the land uncultivated and lie barren, the original
contract issuing unit should terminate the contract and withdraw the cultivated land contracted.
Article 38
The state encourages units and individuals in the development of unexploited land in accordance with the overall planning for land
utilization and under the prerequisite of protection and improvement of the ecological environment, prevention of water and soil
erosion and land desertification; the land suitable to be developed into agricultural land should be developed into agricultural
land on a priority basis.
The state protects the legitimate rights and interests of developers in accordance with law.
Article 39
Reclamation of unexploited land must undergo scientific authentication and evaluation and it must be carried out within the reclaimable
areas delimited in the overall planning for land utilization upon approval in accordance with law. Reclamation of cultivated land
through destruction of forests and prairie shall be prohibited, reclaiming farmland from lakes and infringement on shoals of rivers
shall be prohibited.
The land reclaimed and land reclaimed from lakes with the destruction of the ecological environment shall, in accordance with the
overall planning for land utilization, be returned to forests, grazing and lakes in a planned way and step by step.
Article 40
Development of state-owned barren hills, barren land and barren shoals the right to use of which is undetermined for cultivation,
forestry, animal husbandry and fishery production may, subject to approval by people’s government at or above the county level, be
determined and given to development units or individuals for long-term use.
Article 41
The state encourages land arrangement. County, village(township) people’s governments should organize rural collective economic organizations
in integrated treatment of farmland, water, roads, woods and villages in accordance with the overall planning for land utilization
to improve the quality of cultivated land, increase the area of effective cultivated land and improve conditions for agricultural
production and the ecological environment.
Local people’s governments at all levels should take measures to transform the medium and low yield plots, treat idle and scattered
plots and abandoned plots.
Article 42
For destruction of land caused by damage due to digging, caving in and pressurized occupation, the land use unit and individual should,
in accordance with relevant state provisions, be responsible for the reclamation; where there are no conditions for reclamation or
reclamation does not conform to requirements, land reclamation fee should be paid to be used specifically for land reclamation. The
reclaimed land should be used for agriculture on a priority basis.
Chapter V Land for Construction
Article 43
Any unit or individual that needs to use land for construction must apply for the use of state-owned land in accordance with law;
however, use of land collectively owned by peasants by the respective collective economic organization approved in accordance with
law for the establishment of rural and township enterprises and construction of residences by villagers, or use of land collectively
owned by peasants approved in accordance with law for the construction of village(township)public facilities and non-profit undertakings
is excluded.
Application for the use of state-owned land in accordance with law referred to in the preceding paragraph includes the state-owned
land and the land that originally belonged to collective ownership by peasants and has been requisitioned by the state.
Article 44
For occupation and use of land for construction involving turning agricultural land into land for construction, formalities of examination
and approval for turning agricultural land into other uses should be completed.
Occupation and use of land involving turning agricultural land into land for construction for construction projects of roads, pipelines,
cables and big-size infrastructure approved by people’s governments of the provinces, autonomous regions and municipalities directly
under the Central Government and construction projects approved by the State Council shall be subject to the approval of the State
Council.
Turning agricultural land into land for construction for the implementation of the said planning within the scale of land for construction
for municipalities and villages and townships determined by the overall planning for land utilization shall be subject to the approval
of the organ that originally approved the overall planning for land utilization in batches in accordance with the annual land use
plan. Within the scope of agricultural land turning into other uses already approved, land for specific construction projects can
be approved by municipal and county people’s governments.
Occupation and use of land involving turning agricultural land into land for construction for construction projects other than those
prescribed in the Second Paragraph and Third Paragraph of this Article shall be subject to the approval of people’s governments of
the provinces, autonomous regions and municipalities directly under the Central Government.
Article 45
Requisition of the following land shall be subject to the approval of the State Council:
(1)
basic farmland;
(2)
cultivated land other than the basic farmland exceeding 35 hectares; and
(3)
other land exceeding 70 hectares.
Requisition of land other than those prescribed in the preceding paragraph shall be subject to the approval of people’s governments
of the provinces, autonomous regions and municipalities directly under the Central Government, and submitted to the State Council
for the record.
For the requisition of agricultural land, formalities of examination an
| Category |
BANKING |
Organ of Promulgation |
The General Office of the State Council |
Status of Effect |
In Force |
| Date of Promulgation |
1999-05-21 |
Effective Date |
1999-05-21 |
|
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Circukar of the General Office of the State Council on Issuing the Interim Provisions of the Ministry of Science and Technology and
the Ministry of Finance on Technological Innovation Funds of Science-and-Technology-Oriented Small and Medium-sized Enterprises |
(Promulgated by Document No. [1999] 47 of the General Office of the State Council on May 21st, 1999)
In order to support and promote the technological innovation of science-and-technology-oriented small and
medium-sized enterprises (hereinafter referred to as small and medium-sized enterprises), upon the approval of the State Council,
a special government fund (hereinafter referred to as innovation fund) is established to support technological innovation projects
in science-and-technology-oriented small and medium-sized enterprises (hereinafter referred to as small and medium-sized enterprises). In
order to strengthen the management of the innovation fund, and increase its employing benefits, provisions are hereby made as follows:
1 The innovation fund is an introductory fund, through which a new investment system is to be gradually built
catering to the objective discipline of socialist market economy and supporting the technological innovation of small and medium-sized
enterprises by attracting investment into technological innovation of small and medium-sized enterprises from localities, enterprises,
investment institutions of science and technology and financial organizations.
2 The innovation fund, not aiming at making profit, is to strengthen the innovative capability of small and
medium-sized enterprises by supporting their innovation programs.
3 The employment and management of innovation fund must conform to the relevant laws, administrative regulations
and financial regulations and rules of the State, and follow the principle of applying honestly, consider justly, manage scientifically,
support favorably, publicize clearly and special funds used specially.
4 The innovation fund comes form the allocation of the Central finance and the interests thereof.
5 The innovation fund is geared to the needs of all types of small and medium-sized enterprises registered
within China. The program the fund supports and the enterprises taking the program must meet the following conditions:
(1) the program the fund supports must be a program involving the transference of high and new technological
achievements and conforming to the State’s policy of industrial technology, having high level of innovation and strong competitive
power in the market, possessing the potentialities of producing economic and social benefits, and having the possibility to form
jumped-up industry.
(2) the enterprise has register with the administrative department for industry and commerce at
the place where it is located, possesses the qualification of enterprise legal person and a complete financial system; the number
of its workers and staff should, in principal, not exceed 500, among them, the technological personnel with the academic degree higher
than that conferred by an institution of higher education should have a ratio of not less than 30% to the total amount of the workers
and staff. As for an high and new technology enterprises recognized by the competent department of science and technology under the
people’s government at or above the provincial level which engages in scaled production of technological innovation programs,
the requirements for the ration of the technological personnel to its workers and staff may be properly relaxed.
(3) the enterprises should mainly engage in research, development, production and service of products with
high and new technology, and the persons in charge of the enterprise should have strong sense of innovation, market development
capability and managing skills. The money used in the research and development of products with high and new technology should not
be less than 3% of the sales volume, and the number of workers and staff directly engaged in research and development must be not
less than 10% of the total number of the workers and staff. Those enterprises with leading products which will be produced in batches
or those engaged in scaled production must have a good operating record.
6 The innovation fund encourages and gives priority to the support to joint innovation of production, study
and research, and also gives priority to the support to those programs which possess independent intellectual property right, contain
high technology and high added value and which can provide employment, save energy, reduce costs, improve environment and make profits
from export.
7 The innovation fund should not support repeated construction at a low level, infrastructure construction
with merely purpose, technology introduction and ordinary processing projects.
8 According to different characteristics of small and medium-sized enterprises and programs, the innovation
fund gives support in different forms such as subsidization to the interests of loan, gratis financial aid and input of capital fund:
(1) subsidization to the interests of loan: for those innovation programs with certain level, scale and profits,
the measure of giving subsidy to the interests of loan is usually taken to encourage loaning in order to enlarge the production scale.
The subsidy is equal to 50% -100% of the annual interest of loan. The total interest should not exceed 1 million yuan and the total
interest of some major program should not exceed 2 million yuan.
(2) gratis financial aid: this financial aid is mainly used to subsidize the research, development and test
of products in the technological innovation of small and medium-sized enterprises and to help researching personnel transfer the
achievements when they establish enterprises with their scientific and technological achievements. The sum of this financial aid
is usually no more than 1 million yuan and no more than 2 million yuan with some major programs. In addition, the enterprises must
have the same amount of matching capital or more.
(3) input of capital fund: the fund provides capital money to those programs which have high starting point,
rich innovation content, high innovation level, innovation potential, great potential demand in market and the possibility of becoming
a new industry. The capital money is invested in order to induce the investment of other capitals. The sum is usually no more than
20% of the enterprise’s registered capital. In principle, the capital money can be transferred according to law or retracted by joint
operation within the time limit. The specific measure is to be formulated separately.
9 The Ministry of Science and Technology is the competent department of the innovative fund, which is responsible
for considering and announcing the annual priorities of support and work guidelines of the innovative fund, discussing major events
in the operation of the innovation fund, approving the annual working plan of the innovative fund, examining and approving programs
to be supported in cooperation with the Ministry of Finance, submitting reports on the implementation to the State Council annually.
10 The Ministry of Finance is the supervision department of the innovative fund, which participates in considering
and announcing the annual priorities of support and work guidelines of the innovative fund, allocates in two batches each year the
innovative fund into the special account of the Innovative Fund Administration Center through the Ministry of Science and Technology
according to the annual working plan of the innovative fund, supervises and inspects the operation and use of the fund.
11 An Experts Consulting Committee of Innovation Fund is to be constituted by the authoritative experts on
technology, economy and management and entrepreneurs, which is responsible for researching into the fields given priority in support
and major programs for each year, guiding the formulation of annual priorities in support and work guidelines of the innovative fund,
and providing technical consultation to the Innovative Fund Administration Center.
12 To establish Innovative Fund Administration Center of Small and Medium-Sized Enterprises (hereinafter referred
to as Administration Center), as a non-profit institution legal person, which is responsible for the administration of the innovative
fund and performs the following functions under the direction of the Ministry of Science and Technology and the Ministry of Finance:
(1) making research and putting forward annual priorities in support and work guidelines of the innovative
fund, uniformly accepting applications for innovation fund and conducting procedural examination;
(2) making research and putting forward the standard for evaluation, assessment and bid of innovative fund
programs, putting forward the qualifications of evaluating organs and other intermediary organs participating in the innovation fund
administration;
(3) accrediting or organizing related units or organs to conduct the evaluation, assessment and bid of innovation
fund programs;
(4) being responsible for working out the annual final settlement of accounts and working plan of the innovation
fund, making proposals on annual programs to be supported by innovation fund, and being responsible for the operation of innovation
fund;
(5) being responsible for the integrative administration in the course of implementation of innovation fund
programs, and for the audit, supervision and periodical report of the innovation fund program.
13 The Ministry of Science and Technology annually promulgates priorities in support and work guidelines of
the innovative fund. For programs conforming to the requirements for support of the innovation fund, enterprises may submit corresponding
application materials according to requirements for applications; application materials should be submitted with recommendation opinions
of the recommending units, those applying for subsidization to the interests of loan should also provide the promise on offering
the loan of the banks concerned.
14 The recommending units of programs should conduct serious examination on the applying enterprises’ qualifications,
accuracy and truth of the materials; and provide recommendation opinions to programs conforming to the applying conditions and requirements.
15 Competition system should be introduced actively and the systems of evaluation and bid for innovation fund
be implemented. Units conforming to bid conditions should be selected for the program through public competition.
16 The Administration Center handles and investigates the applications according to relevant standards and
submit to related evaluating organs or experts for evaluation, investigation or consultation; those conforming to the conditions
must be selected through the evaluation of bidding materials and performance.
17 Assessment organs and evaluation experts should objectively assess and evaluate the marketing prospect,
technological innovation, technical feasibility, risks and profits of the applying program as well as the managing and operating
skills of the applying enterprises and give definite opinions.
18 The Administration Center provides suggestions on the supporting programs of innovation fund according
to the bid condition and evaluating opinions; if necessary, the Ministry of Science and Technology and the Ministry of Finance may
reconsider the evaluating results. After the program proposal has been examined and approved by the Ministry of Science and Technology
together with the Ministry of Finance, the Administration Center should conclude a contract with the enterprise, on the basis of
which the corresponding procedures should be gone through.
19 the Ministry of Science and Technology and the Ministry of Finance publicize annually in batches the supported
programs and enterprises of the innovation fund and receive the supervision form the society.
20 For programs have not passed the procedural examination or not been given support of the innovation fund
after evaluation, assessment and bid, the Administration Center should inform the applying enterprises in written form within 4 months
of the date of the acceptance of the applications.
21 The annual budget for innovation fund is decided by the Ministry of Finance. The Ministry of Science and
Technology should report the use of the innovation fund according to related provisions of the Ministry of Finance and receive supervision
from the Ministry of Finance.
22 The Administration Center should allocate the innovation fund completely to the units who are in charge
of the programs in accordance with the requirements of contract. The innovation fund should not be used in financing, stocks, futures,
real estate, sponsoring, donation, etc. and should not be appropriated.
23 The Administration Center should budget the fees used in evaluation, assessment and bid as well as daily
administration of the innovation fund, which are disbursed from the interests of innovation fund after the approval of the Ministry
of Finance.
24 The unit responsible for the project should report the implementation of the program to the Administration
Center annually; the Administration Center should submit the annual budget and implementation situation to the Ministry of Science
and Technology, which in turn submit to the Ministry of Finance.
25 If the enterprise needs to adjust the objective, progress or outlay of the project owing to objective reasons,
it should submit a written application, which can only be implemented after the verification of the Administration Center and examination
and approval of the Ministry of Science and Technology and the Ministry of Finance.
26 If the contracted projects are retracted or held in abeyance after the approval of the Administration Center,
enterprises should clear the accounts and turned the left funds completely to the Administration Center.
27 The implementation scheme concerning the administration of programs and expenditures put forward by the
Administration Center should come into effect after being submitted to and approved by the Ministry of Science and Technology
and the Ministry of Finance.
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Organic Law of the Villagers Committees of the People’s Republic of China
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(Adopted at the 5th Meeting of the Standing Committee of the Ninth National People’s Congress on November 4, 1998
and promulgated by Order No. 9 of the President of the People’s Republic of China on November 4, 1998)
Article 1 This Law is enacted in accordance with the Constitution with a view to ensuring self-government by the villagers
in the countryside, who will administer their own affairs according to law, developing democracy at the grassroots level in the countryside,
and promoting the building of a socialist countryside which is materially and ethically advanced.
Article 2 The villagers committee is the primary mass organization of self-government, in which the villagers manage their
own affairs, educate themselves and serve their own needs and in which election is conducted, decision adopted, administration maintained
and supervision exercised by democratic means.
The villagers committee shall manage the public affairs and public welfare undertakings of the village, mediate disputes among the
villagers, help maintain public order, and convey the villagers’ opinions and demands and make suggestions to the people’s government.
Article 3 The primary organization of the Communist Party of China in the countryside shall carry out its work in accordance
with the Constitution of the Communist Party of China, playing its role as a leading nucleus; and, in accordance with the Constitution
and laws, support the villagers and ensure that they carry out self-government activities and exercise their democratic rights directly.
Article 4 The people’s government of a township, a nationality township or a town shall guide, support and help the villagers
committees in their work, but may not interfere with the affairs that lawfully fall within the scope of the villagers self-government.
The villagers committees, on their part, shall assist the said people’s government in its work.
Article 5 The villagers committee shall support the villagers and assist them in their efforts to set up various forms of co-operative
and other economic undertakings in accordance with law, provide services and coordination for production in the village, and promote
the development of rural production and construction and the socialist market economy.
The villagers committee shall respect the decision-making power of the collective economic organizations in conducting their economic
activities independently according to law, safeguard the dual operation system characterized by the combination of centralized operation
with decentralized operation on the basis of operation by households under a contract, and ensure the lawful property right and other
lawful rights and interests of the collective economic organizations, villagers, households operating under a contract, associated
households, and partnerships.
The villagers committee shall, in accordance with the provisions of laws, administer the affairs concerning the land and other property
owned collectively by the peasants of the village and disseminate knowledge among the villagers about rational utilization of the
natural resources and protection and improvement of the ecological environment.
Article 6 The villagers committee shall publicize the Constitution, laws, regulations and State policies among the villagers;
help them understand the importance of performing their obligation as proscribed by law and cherishing public property and encourage
them to do so; safeguard the villagers’ lawful rights and interests; develop culture and education, and disseminate scientific and
technological knowledge among the villagers; promote unity and mutual assistance between villages; and carry out various forms
of activities for the building of advanced socialist ethics.
Article 7 In a village where people from more than one ethnic group live, the villagers committee shall help the villagers
understand the importance of enhancing unity, mutual respect and mutual assistance among the ethnic groups and give them guidance
in this respect.
Article 8 The villagers committee shall be established on the basis of the residential areas of the villagers and the size
of the population and on the principle of facilitating self-government by the masses.
The establishment or dissolution of a villagers committee or a readjustment in the area governed by it shall be proposed by the people’s
government of a township, a nationality township or a town and submitted to a people’s government at the county level for approval
after it is discussed and agreed to by a villagers assembly.
Article 9 A villagers committee shall be composed of three to seven members, including the chairman, the vice-chairman(vice-chairmen)
and the members.
The members of a villagers committee shall include an appropriate number of women. In a village where people from more than one ethnic
group live, they shall include a member or members from the ethnic group or groups with a smaller population.
Members of a villagers committee shall not be divorced from production but may be provided with appropriate subsidies, where necessary.
Article 10 A villagers committee may, on the basis of the residential areas of the villagers, establish a number of villagers
groups, the leaders of which shall be elected at the meetings of the groups.
Article 11 The chairman, vice-chairman (vice-chairmen) and members of a villagers committee shall be elected directly by the
villagers. No organization or individual may designate, appoint or replace any member of a villagers committee.
The term of office for a villagers committee is three years; a new committee shall be elected at the expiration of the three years
without delay. Members of a villagers committee may continue to hold office when reelected.
Article 12 Any villager who has reached the age of 18 shall have the right to elect and stand for election, regardless of his
ethnic status, race, sex, occupation, family background, religious belief, education, property status and length of residence, with
the exception of persons who have been deprived of political rights in accordance with law.
The name list of the villagers who have the right to elect and stand for election shall be made public 20 days prior to the date
of election.
Article 13 Election of a villagers committee shall be presided over by a villagers electoral committee. Members of the electoral
committee shall be elected by a villagers assembly or by all the villagers groups.
Article 14 For election of a villagers committee, the villagers who have the right to elect in the village shall nominate candidates
directly. The number of candidates shall be greater than the number of persons to be elected.
The election of a villagers committee shall be valid if more than half of the villagers who have the right to elect cast their votes;
a candidate shall be elected only if he wins more than half of the votes cast by the villagers.
The election shall be by secret ballot and open vote-counting; the outcome of the election shall be announced on the spot. During
election, booths shall be installed for voters to write their ballots in private.
Specific electoral measures shall be prescribed by the standing committees of the people’s congresses of provinces, autonomous regions
and municipalities directly under the Central Government.
Article 15 If a person, by threatening, bribing, forging ballots or other illegitimate means, interferes with the villagers
in the exercise of their rights to elect and to stand for election, thus disrupting the election of a villagers committee, the villagers
shall have the right to report against him to the people’s congress, the people’s government of the township, nationality township
or town, or to the standing committee of the people’s congress and the people’s government at the county level or the competent department
under the latter, which shall be responsible for investigating the matter and handling it in accordance with law. If a person is
elected by threatening, bribing, forging ballots or other illegitimate means, his election shall be invalid.
Article 16 A group of at least one-fifth of the villagers who have the right to elect in the village may propose the removal
from office of members of the villagers committee. In the proposal, the reasons for the removal shall be stated. The member of the
villagers committee proposed to be removed from office shall have the right to present a statement in his own defence. The villagers
committee shall convene a villagers assembly without delay, at which the proposal for the removal shall be voted. The removal from
office of a member of the villagers committee shall be adopted by a simple majority vote of the villagers who have the right to elect.
Article 17 A villagers assembly shall be composed of villagers at or above the age of 18 in a village.
The villagers assembly shall be convened with a simple majority participation of the villagers at or above the age of 18 or with
the participation of the representatives from at least two-thirds of the households in the village, and every decision shall be adopted
by a simple majority vote of the villagers present. When necessary, representatives of the enterprises, institutions and mass organizations
located in the village may be invited to attend the villagers assembly without the right to vote.
Article 18 The villagers committee shall be responsible to the villagers assembly and report on its work to the latter. The
villagers assembly shall deliberate on the work report of the villagers committee every year and appraise the performance of its
members.
The villagers assembly shall be convened by the villagers committee. When proposed by one-tenth of the villagers, the villagers assembly
shall be convened.
Article 19 When the following matters that involve the interests of the villagers arise, the villagers committee shall refer
them to the villagers assembly for decision through discussion before dealing with them:
(1) measures for pooling funds for the township, and the percentage of the funds raised by the village to be retained and used by
it;
(2) the number of persons who enjoy subsidies for work delayed and the rates for such subsidies;
(3) use of the profits gained by the collective economic organizations of the village;
(4) proposals for raising funds for running schools, building roads and managing other public welfare undertakings in the village;
(5) decision on projects to be launched by the collective economic organizations of the village and the contracts proposed for the
projects as well as contracts proposed for building public welfare undertakings in the village;
(6) villagers’ proposals for operation under a contract;
(7) proposals for the use of house sites; and
(8) other matters that involve the interests of the villagers and on which the villagers assembly considers it necessary to make
decisions through discussion.
Article 20 A villagers assembly may formulate and revise the villagers charter of self-government, rules and regulations for
the village and villagers pledges, and submit them to the people’s government of the township, nationality township or town for the
record.
No villagers charter of self-government, rules and regulations for the village, villagers pledges or matters decided through discussion
by a villagers assembly or by representatives of villagers may contravene the Constitution, laws, regulations, or State policies,
or contain such contents as infringing upon villagers’ rights of the person, their democratic rights or lawful property rights.
Article 21 In a village with a larger population or with the inhabitants scattered here and there, villagers representatives
may be elected, and the villagers committee shall convene a meeting of the villagers representatives to decide on matters through
discussion with the authorization of the villagers assembly. One villagers representative shall be elected by every five to fifteen
households, or a certain number of villagers representatives shall be elected by all the villagers groups.
Article 22 The villagers committee shall apply the system of open administration of village affairs.
The villagers committee shall accept supervision by the villagers through publicizing the following matters without delay, of which
the matters involving financial affairs shall be publicized every six months at least:
(1) matters decided on through discussion by the villagers assembly as provided for in Article 19 of this Law, and implementation
of the decisions;
(2) plans for implementing the State policy for family planning;
(3) handing out of relief funds and goods; and
(4) collection of charges for the supply of water and electricity, and other matters that involve the interests of the villagers
and that all the villagers are concerned about.
The villagers committee shall guarantee the truthfulness of what is publicized and subject itself to inquiry by the villagers.
Where a villagers committee fails to publicize the matters as is required to without delay or if the matters it publicizes are not
true to facts, the villagers shall have the right to report the matter to the people’s government of the township, nationality township
or town or the people’s government at the county level and the competent departments under it, which shall be responsible for investigation
and verification and order that the matters be publicized; where unlawful acts are verified through investigation, the members concerned
shall bear the responsibility according to law.
Article 23 The villagers committee and its members shall observe the Constitution, laws, regulations and State policies, and
they shall be impartial in handling affairs, honest in performing their duties and warmhearted in serving the villagers.
Article 24 In making decisions, a villagers committee shall apply the principle whereby the minority is subordinate to the
majority.
In its work the villagers committee shall adhere to the mass line, give full play to democracy, carefully heed dissenting opinions,
and unremittingly exercise persuasion; it may not resort to coercion, commandism or retaliation.
Article 25 A villagers committee shall, when necessary, establish sub-committees for people’s mediation, public security, public
health, etc. Members of the villagers committee may concurrently be members of the sub-committees. The villagers committee of a village
with a small population may dispense with the sub-committees; instead, members of the villagers committee shall have a division of
responsibilities with respect to people’s mediation, public security, public health, etc.
Article 26 A villagers committee shall assist the relevant departments in giving ideological education and help to and exercising
supervision over the villagers who have been deprived of political rights in accordance with law.
Article 27 Members of government departments, public organizations, units of the armed forces, and enterprises and institutions owned
by the whole people, who are located in the countryside, shall not join organizations of the villagers committees; members of collectively-owned
entities that are not run by the villages may choose not to join the organizations of the villagers committees. However, all of them
shall abide by the rules and regulations for the villages and the villagers pledges related to them. When the villagers committees,
villagers assemblies or villagers representatives of the villages, where these units are located, discuss and deal with problems
related to the units, they shall solve the problems through consultation with them.
Article 28 The local people’s congresses at all levels and the standing committees of the local people’s congresses at or above
the county level shall see that this Law is implemented within their administrative regions and guarantee that the villagers exercise
their right of self-government in accordance with law.
Article 29 The standing committees of the people’s congresses of provinces, autonomous regions and municipalities directly
under the Central Government may, in accordance with this Law and in light of the conditions in their own administrative regions,
formulate measures for the implementation of this Law.
Article 30 This Law shall go into effect as of the date of promulgation. The Organic Law of the Villagers Committees of the
People’s Republic of China (for Trial Implementation) shall be annulled at the same time.
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| Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress. |
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