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MEASURES RELATING TO IMPORT SUBSTITUTION OF MECHANICAL AND ELECTRICAL PRODUCTS MANUFACTURED BY CHINESE-FOREIGN JOINT VENTURES AND CHINESE-FOREIGN COOPERATIVE VENTURES

GENERAL PRINCIPLES OF THE CIVIL LAW OF THE PEOPLE’S REPUBLIC OF CHINA






The National People’s Congress

General Principles of the Civil Law of the People’s Republic of China

Order No. 37 [1986] of President

April 12, 1986

(Adopted at the Fourth Session of the Sixth National People’s Congress on April 12, 1986 , Promulgated by Order No.37 of the President
of the People’s Republic of China on April 12, 1986 , Effective as of January 1, 1987)

ContentsChapter I General Provisions

Chapter II Citizen (Natural Person)

Section 1 Capacity for Civil Rights and Capacity for Civil Conduct

Section 2 Guardianship

Section 3 Declarations of Missing Persons and Death

Section 4 Individual Businesses and Leaseholding Farm Households

Section 5 Individual Partnership

Chapter III Legal Persons

Section 1 General Stipulations

Section 2 Enterprise as Legal Person

Section 3 Official Organ, Institution and Social Organization as

Legal Persons

Section 4 Economic Association

Chapter IV Civil Juristic Acts and Agency

Section 1 Civil Juristic Acts

Section 2 Agency

Chapter V Civil Rights

Section 1 Property Ownership and Related Property Rights

Section 2 Creditors’ Rights

Section 3 Intellectual Property Rights

Section 4 Personal Rights

Chapter VI Civil Liability

Section 1 General Stipulations

Section 2 Civil Liability for Breach of Contract

Section 3 Civil Liability for Infringement of Rights

Section 4 Methods of Bearing Civil Liability

Chapter VII Limitation of Action

Chapter VIII Application of Law in Civil Relations with Foreigners

Chapter IX Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is formulated in accordance with the Constitution and the actual situation in our country, drawing upon our practical experience
in civil activities, for the purpose of protecting the lawful civil rights and interests of citizens and legal persons and correctly
adjusting civil relations, so as to meet the needs of the developing socialist modernization.

Article 2

The Civil Law of the People’s Republic of China shall adjust property relationships and personal relationships between civil subjects
with equal status, that is, between citizens, between legal persons and between citizens and legal persons.

Article 3

Parties to a civil activity shall have equal status.

Article 4

In civil activities, the principles of voluntariness, fairness, making compensation for equal value, honesty and credibility shall
be observed.

Article 5

The lawful civil rights and interests of citizens and legal persons shall be protected by law; no organization or individual may infringe
upon them.

Article 6

Civil activities must be in compliance with the law; where there are no relevant provisions in the law, they shall be in compliance
with state policies.

Article 7

Civil activities shall have respect for social ethics and shall not harm the public interest, undermine state economic plans or disrupt
social economic order.

Article 8

The law of the People’s Republic of China shall apply to civil activities within the People’s Republic of China, except as otherwise
stipulated by law.

The stipulations of this Law as regards citizens shall apply to foreigners and stateless persons within the People’s Republic of China,
except as otherwise stipulated by law.

Chapter II Citizen (Natural Person)

Section 1 Capacity for Civil Rights and Capacity for Civil Conduct

Article 9

A citizen shall have the capacity for civil rights from birth to death and shall enjoy civil rights and assume civil obligations in
accordance with the law.

Article 10

All citizens are equal as regards their capacity for civil rights.

Article 11

A citizen aged 18 or over shall be an adult. He shall have full capacity for civil conduct, may independently engage in civil activities
and shall be called a person with full capacity for civil conduct.

A citizen who has reached the age of 16 but not the age of 18 and whose main source of income is his own labour shall be regarded
as a person with full capacity for civil conduct.

Article 12

A minor aged 10 or over shall be a person with limited capacity for civil conduct and may engage in civil activities appropriate to
his age and intellect; in other civil activities, he shall be represented by his agent ad litem or participate with the consent of
his agent ad litem.

A minor under the age of 10 shall be a person having no capacity for civil conduct and shall be represented in civil activities by
his agent ad litem.

Article 13

A mentally ill person who is unable to account for his own conduct shall be a person having no capacity for civil conduct and shall
be represented in civil activities by his agent ad litem.

A mentally ill person who is unable to fully account for his own conduct shall be a person with limited capacity for civil conduct
and may engage in civil activities appropriate to his mental health; in other civil activities, he shall be represented by his agent
ad litem or participate with the consent of his agent ad litem.

Article 14

The guardian of a person without or with limited capacity for civil conduct shall be his agent ad litem.

Article 15

The domicile of a citizen shall be the place where his residence is registered; if his habitual residence is not the same as his domicile,
his habitual residence shall be regarded as his domicile.

Section 2 Guardianship

Article 16

The parents of a minor shall be his guardians.

If the parents of a minor are dead or lack the competence to be his guardian, a person from the following categories who has the competence
to be a guardian shall act as his guardian:

(1)

paternal or maternal grandparent;

(2)

elder brother or sister; or

(3)

any other closely connected relative or friend willing to bear the responsibility of guardianship and having approval from the units
of the minor’s parents or from the neighbourhood or village committee in the place of the minor’s residence.

In case of a dispute over guardianship, the units of the minor’s parents or the neighbourhood or village committee in the place of
his residence shall appoint a guardian from among the minor’s near relatives. If disagreement over the appointment leads to a lawsuit,
the people’s court shall make a ruling.

If none of the persons listed in the first two paragraphs of this article is available to be the guardian, the units of the minor’s
parents, the neighbourhood or village committee in the place of the minor’s residence or the civil affairs department shall act as
his guardian.

Article 17

A person from the following categories shall act as guardian for a mentally ill person without or with limited capacity for civil
conduct:

(1)

spouse;

(2)

parent;

(3)

adult child;

(4)

any other near relative;

(5)

any other closely connected relative or friend willing to bear the responsibility of guardianship and having approval from the unit
to which the mentally ill person belongs or from the neighbourhood or village committee in the place of his residence.

In case of a dispute over guardianship, the unit to which the mentally ill person belongs or the neighbourhood or village committee
in the place of his residence shall appoint a guardian from among his near relatives. If disagreement over the appointment leads
to a lawsuit, the people’s court shall make a ruling.

If none of the persons listed in the first paragraph of this article is available to be the guardian, the unit to which the mentally
ill person belongs, the neighbourhood or village committee in the place of his residence or the civil affairs department shall act
as his guardian.

Article 18

A guardian shall fulfil his duty of guardianship and protect the person, property and other lawful rights and interests of his ward.
A guardian shall not handle the property of his ward unless it is in the ward’s interests.

A guardian’s rights to fulfil his guardianship in accordance with the law shall be protected by law.

If a guardian does not fulfil his duties as guardian or infringes upon the lawful rights and interests of his ward, he shall be held
responsible; if a guardian causes any property loss for his ward, he shall compensate for such loss. The people’s court may disqualify
a guardian based on the application of a concerned party or unit.

Article 19

A person who shares interests with a mental patient may apply to a people’s court for a declaration that the mental patient is a person
without or with limited capacity for civil conduct.

With the recovery of the health of a person who has been declared by a people’s court to be without or with limited capacity for civil
conduct, and upon his own application or that of an interested person, the people’s court may declare him to be a person with limited
or full capacity for civil conduct.

Section 3 Declarations of Missing Persons and Death

Article 20

If a citizen’s whereabouts have been unknown for two years, an interested person may apply to a people’s court for a declaration of
the citizen as missing.

If a person’s whereabouts become unknown during a war, the calculation of the time period in which his whereabouts are unknown shall
begin on the final day of the war.

Article 21

A missing person’s property shall be placed in the custody of his spouse, parents, adult children or other closely connected relatives
or friends. In case of a dispute over custody, if the persons stipulated above are unavailable or are incapable of taking such custody,
the property shall be placed in the custody of a person appointed by the people’s court.

Any taxes, debts and other unpaid expenses owed by a missing person shall defrayed by the custodian out of the missing person’s property.

Article 22

In the event that a person who has been declared missing reappears or his whereabouts are ascertained, the people’s court shall, upon
his own application or that of an interested person, revoke the declaration of his missing-person status.

Article 23

Under either of the following circumstances, an interested person may apply to the people’s court for a declaration of a citizen’s
death:

(1)

if the citizen’s whereabouts have been unknown for four years or

(2)

if the citizen’s whereabouts have been unknown for two years after the date of an accident in which he was involved.

If a person’s whereabouts become unknown during a war, the calculation of the time period in which his whereabouts are unknown shall
begin on the final day of the war.

Article 24

In the event that a person who has been declared dead reappears or it is ascertained that he is alive, the people’s court shall, upon
his own application or that of an interested person, revoke the declaration of his death.

Any civil juristic acts performed by a person with capacity for civil conduct during the period in which he has been declared dead
shall be valid.

Article 25

A person shall have the right to request the return of his property, if the declaration of his death has been revoked. Any citizen
or organization that has obtained such property in accordance with the Law of Succession shall return the original items or make
appropriate compensation if the original items no longer exist.

Section 4 Individual Businesses and Leaseholding Farm Households

Article 26

“Individual businesses” refers to business run by individual citizens who have been lawfully registered and approved to engage in
industrial or commercial operation within the sphere permitted by law. An individual business may adopt a shop name.

Article 27

“Leaseholding farm households” refers to members of a rural collective economic organization who engage in commodity production under
a contract and within the spheres permitted by law.

Article 28

The legitimate rights and interests of individual businesses and leaseholding farm households shall be protected by law.

Article 29

The debts of an individual business or a leaseholding farm household shall be secured with the individual’s property if the business
is operated by an individual and with the family’s property if the business is operated by a family.

Section 5 Individual Partnership

Article 30

“Individual partnership” refers to two or more citizens associated in a business and working together, with each providing funds,
material objects, techniques and so on according to an agreement.

Article 31

Partners shall make a written agreement covering the amount of funds to provide, the distribution of profits, the responsibility for
debts, the entering into and withdrawal from partnership, the ending of partnership and other such matters.

Article 32

The property provided by the partners shall be under their unified management and use.

The property accumulated in a partnership operation shall belong to all the partners.

Article 33

An individual partnership may adopt a shop name; it shall be approved and registered in accordance with the law and conduct business
operations within the range as approved and registered.

Article 34

The operational activities of an individual partnership shall be decided jointly by the partners, who each shall have the right to
carry out and supervise those activities.

The partners may elect a responsible person. All partners shall bear civil liability for the operational activities of the responsible
person and other personnel.

Article 35

A partnership’s debts shall be secured with the partners’ property in proportion to their respective contributions to the investment
or according to the agreement made.

Partners shall undertake joint liability for their partnership’s debts, except as otherwise stipulated by law. Any partner who overpays
his share of the partnership’s debts shall have the right to claim compensation from the other partners.

Chapter III Legal Persons

Section 1 General Stipulations

Article 36

A legal person shall be an organization that has capacity for civil rights and capacity for civil conduct and independently enjoys
civil rights and assumes civil obligations in accordance with the law.

A legal person’s capacity for civil rights and capacity for civil conduct shall begin when the legal person is established and shall
end when the legal person terminates.

Article 37

A legal person shall have the following qualifications:

(1)

establishment in accordance with the law;

(2)

possession of the necessary property or funds;

(3)

possession of its own name, organization and premises; and

(4)

ability to independently bear civil liability.

Article 38

In accordance with the law or the articles of association of the legal person, the responsible person who acts on behalf of the legal
person in exercising its functions and powers shall be its legal representative.

Article 39

A legal person’s domicile shall be the place where its main administrative office is located.

Article 40

When a legal person terminates, it shall go into liquidation in accordance with the law and discontinue all other activities.

Section 2 Enterprise as Legal Person

Article 41

An enterprise owned by the whole people or under collective ownership shall be qualified as a legal person when it has sufficient
funds as stipulated by the state; has articles of association, an organization and premises; has the ability to independently bear
civil liability; and has been approved and registered by the competent authority.

A Chinese-foreign equity joint venture, Chinese-foreign contractual joint venture or foreign-capital enterprise established within
the People’s Republic of China shall be qualified as a legal person in China if it has the qualifications of a legal person and has
been approved and registered by the administrative agency for industry and commerce in according with the law.

Article 42

An enterprise as legal person shall conduct operations within the range approved and registered.

Article 43

An enterprise as legal person shall bear civil liability for the operational activities of its legal representatives and other personnel.

Article 44

If an enterprise as legal person is divided or merged or undergoes any other important change, it shall register the change with the
registration authority and publicly announce it.

When an enterprise as legal person is divided or merged, its rights and obligations shall be enjoyed and assumed by the new legal
person that results from the change.

Article 45

An enterprise as legal person shall terminate for any of the following reasons:

(1)

if it is dissolved by law;

(2)

if it is disbanded;

(3)

if it is declared bankrupt in accordance with the law; or

(4)

for other reasons.

Article 46

When an enterprise as legal person terminates, it shall cancel its registration with the registration authority and publicly announce
the termination.

Article 47

When an enterprise as legal person is disbanded, it shall establish a liquidation organization and go into liquidation. When an enterprise
as legal person is dissolved or is declared bankrupt, the competent authority or a people’s court shall organize the organs and personnel
concerned to establish a liquidation organization to liquidate the enterprise.

Article 48

An enterprise owned by the whole people, as legal person, shall bear civil liability with the property that the state authorizes it
to manage. An enterprise under collective ownership, as legal person, shall bear civil liability with the property it owns. A Chinese-foreign
equity joint venture, Chinese-foreign contractual joint venture or foreign-capital enterprise as legal person shall bear civil liability
with the property it owns, except as stipulated otherwise by law.

Article 49

Under any of the following circumstances, an enterprise as legal person shall bear liability, its legal representative may additionally
be given administrative sanctions and fined and, if the offence constitutes a crime, criminal responsibility shall be investigated
in accordance with the law:

(1)

conducting illegal operations beyond the range approved and registered by the registration authority;

(2)

concealing facts from the registration and tax authorities and practising fraud;

(3)

secretly withdrawing funds or hiding property to evade repayment of debts;

(4)

disposing of property without authorization after the enterprise is dissolved, disbanded or declared bankrupt;

(5)

failing to apply for registration and make a public announcement promptly when the enterprise undergoes a change or terminates, thus
causing interested persons to suffer heavy losses;

(6)

engaging in other activities prohibited by law, damaging the interests of the state or the public interest.

Section 3 Official Organ, Institution and Social Organization as Legal Person

Article 50

An independently funded official organ shall be qualified as a legal person on the day it is established.

If according to law an institution or social organization having the qualifications of a legal person needs not go through the procedures
for registering as a legal person, it shall be qualified as a legal person on the day it is established; if according to law it does
need to go through the registration procedures, it shall be qualified as a legal person after being approved and registered.

Section 4 Economic Association

Article 51

If a new economic entity is formed by enterprise and an institution that engage in economic association and it independently bears
civil liability and has the qualifications of a legal person, the new entity shall be qualified as a legal person after being approved
and registered by the competent authority.

Article 52

If the enterprises or an enterprise and an institution that engage in economic association conduct joint operation but do not have
the qualifications of a legal person, each party to the association shall, in proportion to its respective contribution to the investment
or according to the agreement made, bear civil liability with the property each party owns or manages. If joint liability is specified
by law or by agreement, the parties shall assume joint liability.

Article 53

If the contract for economic association of enterprises or of an enterprise and an institution specifies that each party shall conduct
operations independently, it shall stipulate the rights and obligation of each party, and each party shall bear civil liability separately.

Chapter IV Civil Juristic Acts and Agency

Section 1 Civil Juristic Acts

Article 54

A civil juristic act shall be the lawful act of a citizen or legal person to establish, change or terminate civil rights and obligations.

Article 55

A civil juristic act shall meet the following requirements:

(1)

the actor has relevant capacity for civil conduct;

(2)

the intention expressed is genuine; and

(3)

the act does not violate the law or the public interest.

Article 56

A civil juristic act may be in written, oral or other form. If the law stipulates that a particular form be adopted, such stipulation
shall be observed.

Article 57

A civil juristic act shall be legally binding once it is instituted. The actor shall not alter or rescind his act except in accordance
with the law or with the other party’s consent.

Article 58

Civil acts in the following categories shall be null and void:

(1)

those performed by a person without capacity for civil conduct;

(2)

those that according to law may not be independently performed by a person with limited capacity for civil conduct;

(3)

those performed by a person against his true intentions as a result of cheating, coercion or exploitation of his unfavorable position
by the other party;

(4)

those that performed through malicious collusion are detrimental to the interest of the state, a collective or a third party;

(5)

those that violate the law or the public interest;

(6)

economic contracts that violate the state’s mandatory plans; and

(7)

those that performed under the guise of legitimate acts conceal illegitimate purposes.

Civil acts that are null and void shall not be legally binding from the very beginning.

Article 59

A party shall have the right to request a people’s court or an arbitration agency to alter or rescind the following civil acts:

(1)

those performed by an actor who seriously misunderstood the contents of the acts;

(2)

those that are obviously unfair.

Rescinded civil acts shall be null and void from the very beginning.

Article 60

If part of a civil act is null and void, it shall not affect the validity of other parts.

Article 61

After a civil act has been determined to be null and void or has been rescinded, the party who acquired property as a result of the
act shall return it to the party who suffered a loss. The erring party shall compensate the other party for the losses it suffered
as a result of the act; if both sides are in error, they shall each bear their proper share of the responsibility.

If the two sides have conspired maliciously and performed a civil act that is detrimental to the interests of the state, a collective
or a third party, the property that they thus obtained shall be recovered and turned over to the state or the collective, or returned
to the third party.

Article 62

A civil juristic act may have conditions attached to it. Conditional civil juristic acts shall take effect when the relevant conditions
are met.

Section 2 Agency

Article 63

Citizens and legal persons may perform civil juristic acts through agents.

An agent shall perform civil juristic acts in the principal’s name within the scope of the power of agency. The principal shall bear
civil liability for the agent’s acts of agency.

Civil juristic acts that should be performed by the principal himself, pursuant to legal provisions or the agreement between the two
parties, shall not be entrusted to an agent.

Article 64

Agency shall include entrusted agency, statutory agency and appointed agency.

An entrusted agent shall exercise the power of agency as entrusted by the principal; a statutory agent shall exercise the power of
agency as prescribed by law; and an appointed agent shall exercise the power of agency as designated by a people’s court or the appointing
unit.

Article 65

A civil juristic act may be entrusted to an agent in writing or orally. If legal provisions require the entrustment to be written,
it shall be effected in writing.

Where the entrustment of agency is in writing, the power of attorney shall clearly state the agent’s name, the entrusted tasks and
the scope and duration of the power of agency, and it shall be signed or sealed by the principal.

If the power of attorney is not clear as to the authority conferred, the principal shall bear civil liability towards the third party,
and the agent shall be held jointly liable.

Article 66

The principal shall bear civil liability for an act performed by an actor with no power of agency, beyond the scope of his power of
agency or after his power of agency has expired, only if he recognizes the act retroactively. If the act is not so recognized, the
performer shall bear civil liability for it. If a principal is aware that a civil act is being executed in his name but fails to
repudiate it, his consent shall be deemed to have been given.

An agent shall bear civil liability if he fails to perform his duties and thus causes damage to the principal.

If an agent and a third party in collusion harm the principal’s interests, the agent and the third party shall be held jointly liable.

If a third party is aware that an actor has no power of agency, is overstepping his power of agency, or his power of agency has expired
and yet joins him in a civil act and thus brings damage to other people, the third party and the actor shall be held jointly liable.

Article 67

If an agent is aware that the matters entrusted are illegal but still carries them out, or if a principal is aware that his agent’s
acts are illegal but fails to object to them, the principal and the agent shall be held jointly liable.

Article 68

If in the principal’s interests an entrusted agent needs to transfer the agency to another person, he shall first obtain the principal’s
consent. If the principal’s consent is not obtained in advance, the matter shall be reported to him promptly after the transfer,
and if the principal objects, the agent shall bear civil liability for the acts of the transferee; however, an entrusted agency transferred
in emergency circumstances in order to safeguard the principal’s interests shall be excepted.

Article 69

An entrusted agency shall end under any of the following circumstances:

(1)

when the period of agency expires or when the tasks entrusted are completed;

(2)

when the principal rescinds the entrustment or the agent declines the entrustment;

(3)

when the agent dies;

(4)

when the principal loses his capacity for civil conduct; or

(5)

when the principal or the agent ceases to be a legal person.

Article 70

A statutory or appointed agency shall end under any of the following circumstances:

(1)

when the principal gains or recovers capacity for civil conduct;

(2)

when the principal or the agent dies;

(3)

when the agent loses capacity for civil conduct;

(4)

when the people’s court or the unit that appointed the agent rescinds the appointment; or

(5)

when the guardian relationship between the principal and the agent ends for other reasons.

Chapter V Civil Rights

Section 1 Property Ownership and Related Property Rights

Article 71

“Property ownership” means the owner’s rights to lawfully possess, utilize, profit from and dispose of his property.

Article 72

Property ownership shall not be obtained in violation of the law.

Unless the law stipulates otherwise or the parties concerned have agreed on other arrangements, the ownership of property obtained
by contract or by other lawful means shall be transferred simultaneously with the property itself.

Article 73

State property shall be owned by the whole people.

State property is sacred and inviolable, and no organization or individual shall be allowed to seize, encroach upon, privately divide,
retain or destroy it.

Article 74

Property of collective organizations of the working masses shall be owned collectively by the working masses. This shall include:

(1)

land, forests, mountains, grasslands, unreclaimed land, beaches and other areas that are stipulated by law to be under collective
ownership;

(2)

property of collective economic organizations;

(3)

collectively owned buildings, reservoirs, farm irrigation facilities and educational, scientific, cultural, health, sports and other
facilities; and

(4)

other property that is collectively owned.

Collectively owned land shall be owned collectively by the village peasants in accordance with the law and shall be worked and managed
by village agricultural production cooperatives, other collective agricultural economic organizations or villages’ committees. Land
already under the ownership of the township (town) peasants’ collective economic organizations may be collectively owned by the peasants
of the township (town).

Collectively owned property shall be protected by law, and no organization or individual may seize, encroach upon, privately divide,
destroy or illegally seal up, distrain, freeze or confiscate it.

Article 75

A citizen’s personal property shall include his lawfully earned income, housing, savings, articles for daily use, objects d’art, books,
reference materials, trees, livestock, as well as means of production the law permits a citizen to possess and other lawful property.

A citizen’s lawful property shall be protected by law, and no organization or individual may appropriate, encroach upon, destroy or
illegally seal up, distrain, freeze or confiscate it.

Article 76

Citizens shall have the right of inheritance under the law.

Article 77

The lawful property of social organizations, including religious organizations, shall be protected by law.

Article 78

Property may be owned joint

PROVISIONS OF THE CUSTOMS GOVERNING THE IMPORT OF MATERIALS AND PARTS NEEDED BY ENTERPRISES WITH FOREIGN INVESTMENT TO PERFORM PRODUCT EXPORT CONTRACTS

OFFICIAL REPLY OF THE STATE COUNCIL TO THE REPORT SUBMITTED BY THE MINISTRY OF FINANCE REQUESTING THE INSTRUCTION ON THE REDUCTION OF THE APPRAISED AND SPECIFIED RATE OF PROFIT FOR TAXATION ON THE RESIDENT REPRESENTATIVE OFFICES OF FOREIGN ENTERPRISES

The State Council

Official Reply of the State Council to the Report Submitted by the Ministry of Finance Requesting the Instruction on the Reduction
of the Appraised and Specified Rate of Profit for Taxation on the Resident Representative Offices of Foreign Enterprises

September 29, 1986

The State Council hereby approves the following amendment to the Interim Provisions of the Ministry of Finance of the People’s Republic
of China concerning the Imposition of Consolidated Industrial and Commercial Tax and Enterprise Income Tax on the Resident Representative
Offices of Foreign Enterprises: The provisions in Article 4 which read, “tax shall …… be calculated and determined on the basis
of an appraised and specified rate of profit, provisionally determined to be 15% of the amount of business revenue”, shall be amended
as follows: “tax shall …… be calculated and determined on the basis of an appraised and specified rate of profit, provisionally
determined to be 10% of the amount of business revenue”. The aforesaid amendment shall be announced by your Ministry, and the amendment
shall enter into force as of October 1, 1986. Attachment:Circular of the Ministry of Finance Concerning the Reduction of the Appraised and Specified Rate of Profit for Taxation on the Resident
Representative Offices of Foreign Enterprises

With the approval of the State Council, this Ministry promulgated, on May 15, 1985, Interim Provisions Concerning the Imposition of
Consolidated Industrial and Commercial Tax and Enterprise Income Tax on the Resident Representative Offices of Foreign Enterprises,
and Article 4 of these Provisions stipulates “in respect of the assessment of enterprise income tax, except for those cases in which
accurate cost and expense vouchers can be provided and where the correct amount of tax can be calculated, tax shall, in accordance
with the provisions of Article 24 of the Rules for the Implementation of the Income Tax Law of the People’s Republic of China for
Foreign Enterprises, be calculated and determined on the basis of an appraised and specified rate of profit, provisionally determined
to be 15% of the amount of business revenue.” in order to further encourage the aforesaid representative offices to expand business
operations, and in consideration of the actual condition of the differences in profit rates between the representative offices, it
is decided, with the approval of the State Council, to reduce, for the benefit of the resident representative offices, the appraised
and specified rate of profit from 15% to 10%.

This Provision shall enter into force as of October 1,1986.

 
The State Council
1986-09-29

 




DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON APPROVING THE OPENING OF NANJING PORT ON THE YANGTZE RIVER TO FOREIGN VESSELS

Category  COMMUNICATIONS AND TRANSPORT Organ of Promulgation  the Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1986-01-20 Effective Date  1986-01-20  


_

Decision of the Standing Committee of the National People’s Congress on Approving the Opening of Nanjing Port on the Yangtze River
to Foreign Vessels

(Adopted at the 14th Meeting of the Standing Committee of the Sixth

National People’s Congress on January 20, 1986)

    After considering the proposal put forward by the Central Military
Commission for approval of the opening of Nanjing Port to foreign vessels,
the 14th Meeting of the Standing Committee of the Sixth National People’s
Congress has decided to approve the opening of Nanjing Port on the Yangtze
River to foreign vessels. The State Council is authorized to grant approval
in the future when there is a need to open other ports along the Yangtze
River between Nanjing Port and the mouth of the river to foreign vessels.






REGULATIONS FOR THE TRIAL IMPLEMENTATION OF CONTROL OF QUALITY CONTROL PERMITS FOR MECHANICAL AND ELECTRICAL PRODUCTS FOR EXPORT

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL FOR TRANSMITTING THE REPORT SUBMITTED BY THE PEOPLE’S INSURANCE COMPANY OF CHINA ON DEVELOPING INSURANCE BUSINESS INVOLVING FOREIGN INTERESTS IN ORDER TO INCREASE FOREIGN EXCHANGE REVENUE

Category  BANKING Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1985-11-30 Effective Date  1985-11-30  


Circular of the General Office of the State Council for Transmitting the Report Submitted by the People’s Insurance Company of China
on Developing Insurance Business Involving Foreign Interests in Order to Increase Foreign Exchange Revenue

Circular
Report of the People’s Insurance Company of China on Developing Insurance
Chapter I
Chapter II
Chapter III

(November 30, 1985)

Circular

    The Report on Developing Insurance Business Involving Foreign Interests
in Order to Increase Foreign Exchange Revenue, which was submitted by the
People’s Insurance Company of China, has been approved by the State Council
and is hereby transmitted to you for you to act upon accordingly.
Report of the People’s Insurance Company of China on Developing Insurance
Business Involving Foreign Interests in Order to Increase Foreign Exchange
Revenue (Excerpts)

    In accordance with the essence of the policies of the State on striving
to increase non-trade foreign exchange revenue, we have recently made a study
of the question as to how to develop insurance business involving foreign
interests in order to increase foreign exchange revenue. We now submit the
report on the relevant questions as follows:
Chapter I

    With the implementation of China’s policy of opening to the outside world,
the insurance business involving foreign interests handled by our Insurance
Company has developed rapidly in recent years. At present, there are already
over 40 types of insurance coverage. The handling of the insurance business
involving foreign interests so as to give financial protection against risks
(including material losses and indemnity liability) involved in China’s
foreign trade and economic exchanges and provide services with a view to
preventing losses has played a positive role in promoting China’s foreign
trade and economic exchanges and in enhancing the confidence of foreign
businessmen coming to make investment in China.
Chapter II

    As the income from the premiums of insurance involving foreign interests
is an important item of foreign exchange revenue of invisible trade, the
various countries in the world have attached great importance to and are
actively developing this business. At present, China’s insurance business
involving foreign interests is developing at a relatively slow pace and the
premiums only account for a very small proportion of the State’s total
non-trade foreign exchange revenue, which ill conforms with the new situation
in which China is implementing the policy of opening to the outside world.
Take, for example, the transportation insurance for import and export goods
the handling of which has lasted for a relatively long time and the premium
income of which ranks first. Only 50 percent of the export goods is insured
domestically and such bulk goods as petroleum, which account for over
one-third of the total export business volume of China, are rarely insured
with our Company. Nearly 90 percent of the import goods in normal trade is
insured domestically, but most of the equipment imported under loans China has
obtained from abroad is insured by insurance companies abroad. Furthermore
only a very small proportion of the insurance related to the Chinese-foreign
contractual joint ventures and foreign-capital enterprises in China and under
the project contracts China has undertaken abroad or the labour service
co-operative contracts with foreign countries, of the insurance taken out by
foreigners or compatriots from Hong Kong and Macao coming to China’s mainland
for tourist purposes, of the public liability insurance that the personnel of
foreign institutions in China are supposed to bear in China, and of the
insurance related to Chinese institutions abroad and the trade centres, joint
ventures and contractual joint ventures China has established abroad is
effected by our Company. In some cases, the insurance is even not effected in
China at all. All the above mentioned circumstances show that China’s
insurance business involving foreign interests still has great potentials and
bright prospects.
Chapter III

    With a view to further developing China’s insurance business involving
foreign interests, it is imperative to adopt the following measures at present:

    1. It is imperative to conduct publicity drives actively, The Insurance
Company shall, with the support and help by the various departments, people
from all walks of life and the public opinion circles, employ varied means
and actively propagate the significance of developing insurance business
involving foreign interests and increasing foreign exchange revenue from
non-trade sources and of the advantages of handling insurance business
involving foreign interests to the expansion of international economic
exchanges in order to mobilize the various forces to support the development
of insurance business involving foreign interests.

    2. It is imperative to perfect the clauses related to insurance in China’s
foreign economic laws and regulations. All clauses on insurance that need to
be included in the various foreign economic laws and regulations China
formulates and promulgates shall be handled in strict accordance with the
provisions in Article 3 of the Interim Regulations on the Administration of
Insurance Enterprises, which was promulgated by the State Council, it is
imperative for China to expedite the formulation and promulgation of
regulations concerning the public liability insurance that shall be effected
with respect to foreign enterprises, institutions and personnel in China
and the motor vehicle third-party liability insurance.

    3. Departments for foreign affairs and departments for foreign economic
relations and trade under the governments at various levels shall give
guidance and assistance to the development of insurance business involving
foreign interests. Departments for foreign economic relations and trade that
are to call important meetings or hold talks with foreign businessmen on major
projects shall keep the Insurance Company advised of the relevant developments
and shall, if necessary, invite people from the Insurance Company to attend
such meetings or talks. In examining and approving the feasibility study
report and the draft contract with respect to a project involving a foreign
party, the inclusion of clauses on insurance shall be one of the items for
consideration. Chinese labour service units that are contracting foreign
engineering projects shall try their best to effect in China the insurance
with respect to the projects, provided this shall not constitute a violation
of the laws of the foreign governments involved. If insurance is required for
the property and personnel of Chinese embassies, consulates and other
institutions abroad, it shall be effected in China, unless the laws of the
countries or regions concerned stipulate that the insurance shall be effected
in their localities. Chinese banking institutions based overseas shall work in
close co-operation with the Chinese insurance institutions in the localities
and actively engage in various types of insurance business.

    When these banks are handling loans on mortgage, they shall try hard to
cover the insurance with the Chinese insurance institutions there with respect
to the security of the loans. The Insurance Company may, when necessary, send
their personnel to, and station them in, the corporations, trade centres and
other institutions established abroad by departments and organizations
affiliated to the Chinese Ministry for Foreign Economic Relations and Trade to
co-ordinate work in handling insurance business. Chinese departments for
tourism shall give active assistance to the Insurance Company in providing the
insurance required by tourists in China.

    4. The Insurance Company shall be permitted to employ economic means to
promote the development of insurance business. A considerable part of the
insurance business involving foreign interests has been canvassed through
efforts on the part of the business personnel of the departments for foreign
economic relations and trade and other departments concerned. Take, for
example, the transportation insurance for import and export goods. Faced
with the fierce competition in the international insurance market, Chinese
departments for foreign economic relations and trade and other departments
concerned, in order to increase foreign exchange revenue from insurance
business, often have to conduct strenuous negotiations and do extra amounts
of laborious work before they can succeed in obtaining some insurance
business involving foreign exchange. In order to encourage the workers and
staff of the departments for foreign economic relations and trade and other
departments concerned who actively assist the Insurance Company in developing
the insurance business involving foreign interests so as to earn more foreign
exchange revenue for the State from non-trade sources, the Insurance Company
may draw a certain proportion (ranging from less than one percent to less
than ten percent) from the premium income as labour service fee to be paid to
the aforesaid units to be paid with RMB, which shall, on top of the common
bonus, reward those workers and staff members who have performed well in this
regard. Such rewards may be exempted from bonus tax. The Ministry of Finance
shall formulate measures in this respect and promulgate them for
implementation.

    5. Foreign insurance companies shall for the time being not he permitted
to begin their business operations in China.

    6. The Insurance Company shall strengthen its own organization setup.
Since the Insurance Company itself separated from the People’s Bank of China
last year, although there has been a relatively big increase in its agencies
and personnel, this increase still cannot meet the needs of its business
development. It is an urgent task to improve the quality of the personnel
engaged in insurance business involving foreign interests, who shall be
required, to have a better knowledge of the international economy and of
China’s laws and regulations governing its external economic activities and
have a fairly good command of foreign languages. Therefore, in addition to
intensifying our work to offer in-service training to our cadres, we hope
that the departments for education will provide us every year with a certain
number of university graduates who major in foreign languages, finance or
insurance, and will arrange in a planned way for some institutions of higher
learning to initiate the specialty of insurance so as to quicken the
cultivation of cadres who will specialize in insurance business. The Insurance
Company shall work hard to improve the quality of service, increase the
types of insurance coverage and strengthen China’s competitive position in
insurance business.

    If the above contains nothing inappropriate, it is requested that the
report be approved and transmitted to departments concerned for implementation.






REGULATIONS OF CUSTOMS ON IMPLEMENTING THE REGISTRATION SYSTEM OF DECLARANT UNITS

Regulations of Customs of the PRC on Implementing the Registration System of Declarant Units

    

(Promulgated by the Customs General Administration on February 25, 1985)

   Article 1. The regulations are hereby formulated in order to meet the requirements of the opening policy to the outside world and further perfect
the system of import and export goods declaration.

   Article 2. For the purposes of the regulations, the term “declarant units” means:

(1) Enterprises directly performing the customs procedures for imports and exports and customs formalities applicable to incoming
and outgoing means of transport;

(2) Enterprises performing customs procedures and formalities for import and export, for or on behalf of consignors, consignees, passengers
and/or owners or responsible persons of means of transport.

   Article 3. Declarant units shall go through the customs formalities for registration with customs by presenting the following documents:

(1) Copies or photo-copies of certificates for operation approved by administrative departments of the State Council, provinces, autonomous
regions, or municipalities directly under the Central Government, or by their authorized departments;

(2) Copies or photo-copies of licences for operation issued by the administrative departments for industry and commerce;

(3) Economic guarantee issued by banks (where the customs consider necessary, it should be submitted.);

(4) Applications for registration of declarant units.

Upon customs’ examination and approval, a registration certificate for a declarant unit shall be issued and a deposit of 500 RMB yuan
and service charges approximate to the cost shall be collected by customs.

   Article 4. In accordance with customs requirements the declarant units should designate persons solely or specially assigned for the task of
customs clearance, and submit to the customs concerned copies of their resumes together with two pieces of their bareheaded, fullfaced
photoes when applying for registration with customs. After customs’ examination and approval certificates for customs declarants
shall be issued to them and then they are enpost_titled to conduct the business of arranging for the customs clearance. The declarant
unit shall be legally responsible for all the activities of its declarants concerning customs clearing matters. In case of altering
declarants for some reasons, it should report to the customs for examination and approval. The customs may instruct the declarant
units to alter their declarants when necessary; in case of refusal to change, their status of declarant units shall be cancelled.
Declarants shall accept customs’ training.

   Article 5. Declarant units shall submit to the customs concerned the specimens of the seals for customs clearing, declarants seals or their
signature for customs reference and file. The import or export declarations handed in by them to the customs each time must bear
the seals of the declarant units and declarants (or their signatures) which have been filed with the customs. Otherwise the customs
shall not accept the declarations.

   Article 6. Declarant units and their declarants must abide by national policies,decrees and regulations, and customs regulations and procedures
regarding the importation and exportations; must ensure that they shall conscientiously and honestly fill in the declarations, present
the relevant certificates for examination, and perform customs clearing procedures for imports and exports; must take charge of opening
the packages or cases of goods and of repackaging; and must pay customs duties, fines and various charges prescribed by customs in
accordance with the customs regulations and requirements. If customs consider it necessary, the declarant units and declarants shall
take charge of providing the contracts, accounts, bills and other relevant documents of the enterprises concerned for the customs.
In case of an offence or a smuggling case having been found, customs may deal with it according to law and besides that, may suspend
the clearing business of the declarant unit concerned for a definite time and revoke the certificate for the declarant involved.
Any declarant unit which needs the alteration of the contents of registration should apply to the customs for the same and only
after customs check and approval, can the alternation be made.

   Article 7. In case a declarant unit wants to terminate its clearing operation,it should apply to the customs concerned within one month, and
hand in the “registration certificate for declarant units” and the “certificates for customs declarants” to the customs for cancellation.
The customs shall refund the deposit of 500 RMB yuan collected at registration.

   Article 8. Enterprises which have not registered with customs are not enpost_titled to carry out customs clearing procedures directly.

   Article 9. The regulations are applicable to the various special economic zones and economic and technical development zones.

   Article 10. The regulations shall come into effect as of July 1, 1985. Local customs may formulate detailed rules for implementation according
to the present regulations.

    






CIRCULAR OF THE MINISTRY OF FINANCE, THE STATE ADMINISTRATION OF TAXATION AND THE GENERAL ADMINISTRATION OF CUSTOMS ON PRINTING AND DISTRIBUTING THE INTERIM PROVISIONS ON EXEMPTING IMPORT TAX ON THE IMPORTED MATERIALS FOR EXPLOITING OIL (NATURAL GAS) IN OCEANS OF CHINA AND THE INTERIM PROVISIONS ON EXEMPTING IMPORT TAX ON THE IMPORTED MATERIALS FOR EXPLOITING OIL (NATURAL GAS) IN CERTAIN LAND AREAS OF CHINA

The Ministry of Finance, the State Administration of Taxation, the General Administration of Customs

Circular of the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs on Printing and
Distributing the Interim Provisions on Exempting Import Tax on the Imported Materials for Exploiting Oil (natural Gas) in Oceans
of China and the Interim Provisions on Exempting Import Tax on the Imported Materials for Exploiting Oil (natural Gas) in Certain
Land Areas of China

CaiShui [2001] No.186

December 21,2001

In accordance with the spirit of the Request for Instructions by the Ministry of Finance, the State Administration of Taxation and
the General Administration of Customs on the Preferential Taxation Policies Expiring at the End of 2000 (CaiShui [2001] No.3) approved
by the State Council on keeping the taxation policies on exemption of import tax for the import materials used for exploiting oil
(natural gas) in the oceans and certain land areas of China after the adjustment of the “tenth-five-year plan”, the Interim Provisions
on Exempting Import Tax on the Imported Materials for Exploiting Oil (Natural Gas) in Oceans of China (attachment 1) and the Interim
Provisions on Exempting Import Tax on the Imported Materials for Exploiting Oil (Natural Gas) in Certain Land Areas of China (attachment
2) are hereby formulated, please carry them out accordingly.

Attachment: 1Interim Provisions on Exempting Import Tax on the Imported Materials for Exploiting Oil (Natural Gas) in Oceans of China

1.

These Provisions are formulated in accordance with the instructions of the State Council on adjusting the taxation policies on import
materials for exploiting oil and natural gas in the oceans and certain land areas of China during the “tenth-five-year-plan”.

2.

The oceans as referred to in these Provisions are: the interior sea, marginal sea, continental shelf of China and other sea areas
(including shallow seas and mudflats) subject to the jurisdiction of ocean resources of the People’s Republic of China.

3.

Where any project of exploitation of oil and natural gas in the oceans of China imports equipments, instruments, spare parts and accessories,
special tools (see attachment 1 for the list of the specific materials) directly used in the exploitation operations, the import
duty and added value tax for import links shall be exempted according to these Provisions. The import commodities for which the taxes
may not be reduced or exempted as prescribed by the State Council shall not be included in the aforesaid scope of tax exemption.

4.

The list of attachment 1 includes the tariff nomenclature heading numbers and the commodity names, focus shall be put on the consistence
of commodity name and actual use. That list shall be adjusted once a year in principle. When the customs examine the tax exemption
of import commodities of that category, if the commodity name and the classification of tariff nomenclature are inconsistent with
these provisions, the commodity names listed in these Provisions shall be the standard ones for the tax exemption formalities.

5.

The General Administration of Customs jointly with the Ministry of Finance and the State Administration of Taxation shall examine
and approve the equipments, instruments, spare parts and accessories, special tools that are not listed in attachment 1 but are indeed
necessary to be imported for use in the exploitation of oil (natural gas) in the oceans of China.

6.

Where the project units and the foreign cooperators import the materials within the scope of the list attached to these Provisions
temporarily, tax exemption shall be granted. The customs shall handle the formalities as those for the temporarily imported goods.
Where it is needed to use the materials exceeding the import time limit, the period may be extended upon the approval of the customs,
and tax exemption shall be granted within the period of temporary import (including the period extended).

7.

With respect to the oil field, prospecting and development projects within the “ocean” scope as referred to in Article 2 of these
Provisions, the departments in charge of the projects shall gather the information and report to the Ministry of Finance, and the
latter shall, consulting with the relevant departments, make examination and determination.

8.

With respect to the tax-free import materials listed in Article 3 and Article 7 of these Provisions, the China National Petroleum
Corporation, China Offshore Oil Corporation, China Petroleum & Chemical Corporation and the Ministry of Land Resources shall present
their uniform annual plan or list of import equipments respectively to the Ministry of Finance, the State Administration of Taxation
and the General Administration of Customs for record. The importing units shall send the list of imported materials to the customs
directly under the General Administration of Customs of the places where the projects are located for the formalities for tax reduction
and exemption. The specific procedures for examination and verification and the measures for supervision shall be formulated separately
by the General Administration of Customs.

9.

The “old projects” as indicated in attachment 1 shall refer to the foreign cooperation projects that were approved prior to Dec. 31
of 1994 (see attachment 2).

10.

The lease of imported materials within the scope of the list shall be exempted from tax, and the lease of materials not included in
the import list shall be subject to taxation according to the provisions.

11.

The tax-free imported materials used in exploitation of oil (natural gas) in oceans and land areas may not be mortgaged, pledged,
transferred, used for other purposes or disposed of in other ways. Any violation shall be dealt with according to the relevant laws
and regulations of the State.

12.

The time for execution of these Provisions shall be from January1, 2001 to December 31, 2005.

13.

The power to interpret these Provisions shall be remain with the Ministry of Finance, the State Administration of Taxation and the
General Administration of Customs.

Attachment 2Interim Provisions on Exempting Import Tax on the Imported Materials for Exploiting Oil (Natural Gas) in Certain Land Areas of China

1.

These Provisions are formulated in accordance with the instructions of the State Council on adjusting the taxation policies on imported
materials for exploiting oil and natural gas in the oceans and certain land areas of China during the “tenth-five-year-plan”.

2.

The certain areas as refer to in these Provisions are: the deserts, gobi and wilderness areas within the territory of China (see attachment
1) and the land oil and natural gas bid-winning sections of Chinese-foreign cooperated exploitation approved by the State.

3.

Where any project of exploitation of oil and natural gas in the certain areas of China imports equipments, instruments, spare parts
and accessories, special tools (see attachment 2 for the list of the specific materials) that can’t be produced in China or the performance
of those produced in China fail to meet the requirements and that are directly used in the prospecting and development operations,
the import duty and added value tax for import links shall be exempted according to these Provisions. The imported commodities for
which the taxes may not be reduced or exempted as prescribed by the State Council shall not be included in the aforesaid scope of
tax exemption.

4.

The list of attachment 2 includes the tariff nomenclature heading numbers and the commodity names, focus shall be put on the consistence
of commodity name and actual use. That list shall be adjusted once a year in principle. When the customs examine the tax exemption
of imported commodities of that category, if the commodity name and the classification of tariff nomenclature are inconsistent with
the these provisions, the commodity names listed in these Provisions shall be the standard ones for the tax exemption formalities.

5.

The General Administration of Customs shall, in collaboration with the Ministry of Finance and the State Administration of Taxation,
examine and approve the equipments, instruments, spare parts and accessories, special tools that are not listed in attachment 1 but
are indeed necessary to be imported for use in the exploitation of oil (natural gas) in the certain land areas of China.

6.

Where the project units and the foreign cooperators import the materials within the scope of the list attached to these Provisions
temporarily, tax exemption shall be granted. The customs shall handle the formalities as those for the temporarily imported goods.
Where it is needed to use the materials exceeding the import time limit, the period may be extended upon the approval of the customs,
and tax exemption is granted within the period of temporary import (including the period extended).

7.

With respect to the oil field, prospecting and development projects in conformity to the “certain areas” conditions as referred to
in Article 2 of these Provisions, the departments in charge of the projects shall gather the information and report to the Ministry
of Finance, and the latter shall, after inquiring the relevant departments, make the examination and determination.

8.

With respect to the tax-free import materials listed in Article 3 and Article 7 of these Provisions, the China National Petroleum
Corporation, China Offshore Oil Corporation, China Petroleum & Chemical Corporation and the Ministry of Land Resources shall separately
present their uniform annual plan or list of imported equipments to the Ministry of Finance, the State Administration of Taxation
and the General Administration of Customs for record. The importing units shall send the list of imported materials to the customs
directly under the General Administration of Customs of the places where the projects are located for the formalities for tax reduction
and exemption. The specific procedures for examination and verification and the measures for supervision shall be formulated separately
by the General Administration of Customs.

9.

The import materials (same as attachment 2) needed by the projects of prospecting and exploitation of coal bed methane by the China
United Coalbed Methane Corporation shall be exempted form import duties and value-added tax for import links in analogy of these
Provisions.

10.

The lease of imported materials that within the scope of the list shall be exempted from tax, the lease of materials not included
in the import list shall be subject to taxation according to the provisions.

11.

The tax-free imported materials used in exploitation of oil (natural gas) in oceans and land areas may not be mortgaged, pledged,
transferred, used for other purposes or disposed of in other ways. Any violation shall be dealt with according to the relevant laws
and regulations of the State.

12.

The time for execution of these Provisions shall be from January 1, 2001 to December 31, 2005.

13.

The power to interpret these Provisions shall be remain with the Ministry of Finance jointly with the State Administration of Taxation
and the General Administration of Customs.



 
The Ministry of Finance, the State Administration of Taxation, the General Administration of Customs
2001-12-21

 







LETTER OF THE GENERAL OFFICE OF THE MINISTRY OF LABOR AND SOCIAL SECURITY CONCERNING ISSUES OF WHETHER ECONOMIC COMPENSATION SHALL BE MADE WHEN FACTUAL LABOR RELATIONSHIP IS TERMINATED

The General Office of the of Ministry Labor and Social Security

Letter of the General Office of the Ministry of Labor and Social Security Concerning Issues of Whether Economic Compensation Shall
be Made When Factual Labor Relationship is Terminated

LaoSheTingHan [2001] No.249

November 26, 2001

Labor and Social Security Department of Zhejiang Province:

Your department’s Request for Instructions on Whether Economic Compensation Shall Be Made When Labor Relationship is Terminated (ZheLaoSheZhong
[2001] No. 259) has been received. After discussing with the the Supreme People’s Court, hereby reply as follows:

Article 16 of the Highest People’s Court’s Interpretation of Several Questions about Application of Laws on Hearing Cases of labor
Dispute (FaShi [2001] No.14), prescribes that: “Laborer can continue working in the original employing unit after expiration of the
labor contract. If the employing unit does not object, it shall be regarded that the two parties would like to continue performing
the labor contract under the original terms. If one party claims to terminate the labor relationship, the claim shall be supported
by the people’s court.” In this provision, “termination” happens under the condition that after the expiration of the labor contract,
the labor still work in the prime employing unit and the unit does not object. The labor relationship factually exists between the
labor and the unit, but the two parties do not sign a new labor contract under the terms of the prime one. If one party claims to
terminate the labor relationship, it shall be judged that the factual labor relationship is terminated.



 
The General Office of the of Ministry Labor and Social Security
2001-11-26

 







CONSTITUTION ACT, 1982 – page 22

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