CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING SORTING OUT AND CONSOLIDATING NON-EXPERIMENTAL COMMERCIAL ENTERPRISES WITH FOREIGN INVESTMENT

The State Council

Circular of the General Office of the State Council Concerning Sorting out and Consolidating Non-experimental Commercial Enterprises
with Foreign Investment

GuoBanFa [1998] No.98

July 1,1998

To uphold the uniformity and seriousness of the policy of experiment of absorbing investment by foreign businesses in the commercial
sector in China, ensure sound and orderly progress of the experiment, former State Planning Commission, former Ministry of Domestic
Trade, the Ministry of Foreign Economic Relations and Trade and the State Administration for Industry and Commerce formed, in pursuance
of the spirit of the “Circular of the General Office of the State Council Concerning the Questions Related to Sorting out and Consolidation
of Non-experimental Foreign Business Invested Commercial Enterprises”(GuoBanFa [1997] No.26), a sorting out and consolidation group
and starting from August 1997, conducted sorting out and consolidation of foreign business invested commercial enterprises the establishment
of which were approved by all localities on their own beyond their mandate. Upon the approval of the State Council, the state of
sorting out and consolidation is hereby notified as follows:

Permission has been granted to 42 commercial enterprises with foreign investment to continue operations within the duration of joint
operations after examination and verification of the percentage of contribution made by foreign businesses, the status of capital
in place, duration of joint operations, business scope and status of operations in accordance with relevant state policy of absorbing
foreign business investment in the commercial sector.

II.

199 foreign business invested commercial enterprises need to make rectifications after sorting out. Specific requirements for rectification
are: the percentage of contribution and profit-sharing of the Chinese side in a foreign business invested commercial enterprise must
be over 50%(over 40% in the midwest region), holdings of chain stores and warehouse marts must be controlled by the Chinese side,
duration of joint operations shall not exceed 30 years(not exceeding 40 years in the Midwest region) and they shall not operate wholesale
business; commercial enterprises of sole foreign business investment shall, in accordance with the above-mentioned standards, be
transformed into Sino-foreign joint ventures or Sino-foreign cooperative commercial enterprises. Sorting out and consolidation groups
formed in all localities should, by the end of 1998 and in pursuance of the requirements, complete rectification of the above-mentioned
enterprises and submit reports to the State Development and Planning Commission, the Ministry of Foreign Economic Relations and Trade,
the State Administration for Industry and Commerce and the State Administration of Domestic Trade for examination and verification.

III.

The aforesaid enterprises permitted to continue operations after sorting out and consolidation and the rectified enterprises found
to be in line with the requirements after examination and verification shall have no right to operate import and export, shall not
operate wholesale business, shall not expand the business scope and scale of construction any more, shall not open branches and extend
the duration of joint operations and shall not benefit from the policy of tax reduction and tax exemption for import equipment and
materials for own use.

IV.

With respect to the 36 foreign business invested commercial enterprises examined and approved after the issuance of the ((Urgent Circular
of the General Office of the State Council Concerning the Immediate Stoppage of Examination and Approval of Foreign Business Invested
Commercial Enterprises by Localities on their own))(GuoBanFaMingDian [1997] No.15), capital not injected in accordance with the time
prescribed, that have failed to pass annual inspection or failed to take part in annual inspection, as well as those foreign business
invested commercial enterprises that fall within the scope of sorting out and consolidation but have failed to submit a report shall
be revoked the original approval certificates by departments of foreign economic relations and trade and departments for industry
and commerce administration at the provincial level, and formalities of nullification of registration or revocation of business licenses
completed.

The State Development and Planning Commission, the Ministry of Foreign Economic Relations and Trade, the State Administration for
Industry and Commerce and the State Administration of Domestic Trade shall jointly issue a document notifying all localities of detailed
list of the aforesaid non-experimental commercial enterprises with foreign investment retained, rectified and nullified(revoked),
and shall be responsible for the supervision of implementation.

VI.

Local people’s governments that arbitrarily exceeded the mandate of examination and approval of foreign business invested commercial
enterprises in contravention of the state policy of experiment in absorbing foreign business investment in the commercial sector
and in particular the people’s governments of the municipalities of Chongqing, Chengdu, Xian and Nanchang that still approved the
establishment of non-experimental commercial enterprises with foreign investment on their own after the issuance of the ((Urgent
Notice)) are meted out criticism in the circular. All localities should learn a lesson therefrom and do the work well of successful
handling of rectification and correction and nullification (revocation) of nonexperimental commercial enterprises with foreign investment
in accordance with the requirements of this Circular.

China will continue to implement the policy of actively, rationally and effectively make use of foreign investment in the light of
the spirit of the 15th National Congress of the Chinese Communist Party and expand the opening up to the outside world in the commercial
sector step by step on the basis of summing up the experiences in experiment. People’s governments of all localities should carry
out their work in pursuance of the state policy and the unified arrangement of the State Council and each shall not act in its own
way, be strict in the execution of orders and prohibitions and jointly uphold the seriousness of the state policy so as to ensure
that the work of absorption of foreign business investment proceeds in a sound and orderly way.

The State Council
1998-07-01

REGULATIONS ON THE ADMINISTRATION OF CONSTRUCTION PROJECT ENVIRONMENTAL PROTECTION

Category	ENVIRONMENTAL PROTECTION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1998-11-29	Effective Date	1998-11-29

Regulations on the Administration of Construction Project Environmental Protection

Chapter I  General Provisions
Chapter II  Environmental Impact Evaluation
Chapter III  Construction of Environmental Protection Facilities
Chapter IV  Legal Liability
Chapter V  Supplementary Provisions

(Promulgated by Decree No. 253 of the State Council of the People’s

Republic of China on November 29, 1998)
Chapter I  General Provisions

Article 1 These Regulations are formulated with a view to preventing
construction projects from generating new pollution and damaging the
ecological environment.

Article 2 These Regulations shall be applicable to building of construction projects having impacts on the environment within the
territory of the People’s Republic of China and other territorial sea
areas under the jurisdiction of the People’s Republic of China.

Article 3 State standards and local standards for the discharge of pollutants must be complied with in building construction projects
that
generate pollution;requirements for aggregate control of discharge of major pollutants must be met in areas under aggregate control
of discharge
of major pollutants.

Article 4 Industrial construction projects should adopt clean
production techniques with low energy consumption, low materials
consumption and low pollutants generation, rationally exploit natural
resources to prevent environmental pollution and ecological damage.

Article 5 Measures must be taken in reconstruction, expansion projects
and technological transformation projects to treat original environmental
pollution and ecological damage related to the said projects.
Chapter II Environmental Impact Evaluation

Article 6 The state practises the construction project environmental
impact evaluation system.

The work of construction project environmental impact evaluation shall
be undertaken by units having acquired certificates of corresponding
qualifications.

Article 7 The state practises classified control over construction
project environmental protection in accordance with the extent of environmental impact of construction projects in pursuance of the
following provisions:

(1)a report on environmental impact should be compiled for a construction
project that may cause major impact on the environment, giving comprehensive
and detailed evaluation of the pollution generated and environmental impact
caused by the construction project;

(2)a statement on environmental impact should be compiled for a
construction project that may cause light impact on the environment,
giving analysis or special-purpose evaluation of the pollution generated
and environmental impact caused by the construction project; and

(3)a registration form should be filled out and submitted for a
construction project that has slight impact on the environment and
necessitates no environmental impact evaluation.

Catalog for the classified control of construction project environmental
protection shall be compiled and published by the competent department of environmental protection administration under the State
Council.

Article 8 The report on construction project environmental impact should
contain the following contents:

(1)an overview of the construction project;

(2)current state of environment surrounding the construction project;

(3)analysis and predictions of impacts which may be caused by the
construction project on the environment;

(4)measures for environmental protection and their financial and
technical authentication;

(5)environmental impact economic loss-benefit analysis;

(6)proposals for environment monitoring of the construction project; and

(7)conclusions of the environmental impact evaluation.

A scheme for water and soil conservation examined and approved by the
competent department of water administration must be prepared for the
construction project involving water and soil conservation.

Contents and formats of the construction project environmental impact
statement and environmental impact registration form shall be prescribed by
the competent department of environmental protection under the State Council.

Article 9 A construction unit should, in the phase of construction
project feasibility study, sumbit the construction project environmental
impact report, environmental impact statement or environmental impact
registration form for approval; however, for such construction projects as
railways and communications, environmental impact report or environmental
impact statement may, prior to the completion of preliminary design, be
submitted for approval upon the consent of the competent department of environmental protection administration with authority of
examination and
approval.

For a construction project that necessitates no feasibility study
pursuant to relevant state provisions, the construction unit should,
prior to the start of construction of the construction project, submit
the construction project environmental impact report, environmental impact
statement or environmental impact registration form for approval; among
which where application for a business licence is required, the construction
unit should, prior to the application for business licence, submit the
construction project environmental impact report, environmental impact
statement or environmental impact registration form for approval.

Article 10 Construction project environmental impact reports,
environmental impact statements or environmental impact registration
forms shall be submitted by construction units to competent departments of environmental protection administration with authority
of examination and
approval for examination and approval; where construction projects have
competent departments of trades, their environmental impact reports or
environmental impact statements should, upon preliminary examination of the competent departments of trades, be submitted to the
competent departments
of environmental protection administration with authority of examination and
approval for examination and approval.

Coastal engineering construction project environmental impact report or
environmental impact statement shall, upon the examination and verification
of the competent department of maritime administration with views attached
thereonto, be submitted to the competent department of environmental
protection administration for examination and approval.

Competent departments of environmental protection administration should,
within 60 days starting from the date of receipt of the construction project
environmental impact report, within 30 days starting from the date of receipt
of the environmental impact statement and within 15 days starting from the
date of receipt of the environmental impact registration form, make a
decision on examination and approval and notify the construction units
in writing respectively.

No fee whatsoever shall be collected for the preliminary examination,
examination and verification, and examination and approval of construction
project environmental impact reports, environmental impact statements or
environmental impact registration forms.

Article 11 The competent department of environmental protection
administration under the State Council shall be responsible for the
examination and approval of the following construction project environmental
impact reports, environmental impact statements or environmental impact
registration forms:

(1)special-nature construction projects such as nuclear facilities and
top-secret projects;

(2)construction projects transcending the administrative areas of the
provinces, autonomous regions and municipalities directly under the Central
Government; and

(3)construction projects subject to the examination and approval of the
State Council or the examination and approval of the departments concerned
authorized by the State Council.

Limits of authority of examination and approval of the construction
project environmental impact reports, environmental impact statements or
environmental impact registration forms beside those provided for in the
preceding paragraph shall be prescribed by people’s governments of the
provinces, autonomous regions and municipalities directly under the
Central Government.

Where a construction project causes trans-administrative area
environmental impact and a dispute arises between the competent departments
concerned of environmental protection administration over the conclusions of environmental impact evaluation, the environmental impact
report or
environmental impact statement shall be submitted to the joint competent
department of environmental protection administration at the next higher
level for examination and approval.

Article 12 Where major changes take place in the nature, scale, location
or production techniques adopted of the construction project upon approval of
the construction project environmental impact report, environmental impact
statement or environmental impact registration form, the construction unit
should once again submit the construction project environmental impact report,
environmental impact statement or environmental impact registration form for
approval.

Where a construction project starts construction on expiry of 5 years
starting from the date of approval of the construction project environmental
impact report, environmental impact statement or environmental impact
registration form, its environmental impact report, environmental impact
statement or environmental impact registration form should be submitted to
the original examination and approval organ for re-examaination and re-
verification. The original examination and approval organ should, within
10 days starting from the date of receipt of the construction project
environmental impact report, environmental impact statement or environmental
impact registration form, notify the construction unit in writing of the
views on examination and verification; failure to notify on expiry shall
be construed as approval upon examination and verification.

Article 13 The state practises the qualificaton examination system of units engaging in the work of construction project environmental
impact
evaluation.

Units engaging in the work of construction project environmental impact
evaluation must obtain a qualification certificate issued by the competent
department of environmental protection administration under the State Council,
engage in the work of construction project environmental impact evaluation
pursuant to the grade and scope prescribed in the qualification certificate,
and be responsible for the evaluation conclusions. The competent department
of environmental protection administration under the State Council should
publish at regular intervals the list of units engaging in the work of construction project environmental impact evaluation which
have already
been issued qualification certificates. Specific measures shall be worked
out by the competent department of environmental protection administration
under the State Council.

Units engaging in the work of construction project environmental impact
evaluation must strictly comply with the rates for the collection of charges
prescribed by the state.

Article 14 Construction units may adopt the form of open tender to
select the units engaging in the work of environmental impact evaluation
for environmental impact evaluation of the construction projects.

No administrative organ shall appoint units engaging in the work of environmental impact evaluation for construction
units for environmental
impact evaluation.

Article 15 Construction units should, in compiling the environmental
impact reports, solicit the views of the units and residents concerned of the locality wherein the construction project is located
pursuant to relevant
provisions of law.
Chapter III Construction of Environmental Protection Facilities

Article 16 Simultaneous design, simultaneous construction and
simultaneous going into operation with the main body project must be
realized for matching environmental protection facilities construction
which is required for the construction project.

Article 17 The preliminary design of a construction project should,
pursuant to the requirements of environmental protection design standards,
contain compilation of a chapter on environmental protection, and ascertain
measures for the prevention and treatment of environmental pollution and
ecological damage as well as budgetary estimate for investment in the
chapter on environmental protection on the basis of the approved
construction project environmental impact report or environmental impact
statement.

Article 18 Where trial production is required upon completion of the main body project of a construction project, its matching environmental
protection facilities built must go into simultaneous trial run with the
main body project.

Article 19 The construction unit should, during the trial production of a construction project, monitor the operations of the environmental

protection facilities and the environmental impact of the construction
peoject.

Article 20 The construction unit should, upon completion of a
construction project, file an application with the competent department
of environmental protection administration that examined and approved
the said construction project environmental impact report, environmental
impact statement or environmental impact registration form for acceptance
checks on completion of matching construction of environmental protection
facilities required for the said construction project.

Acceptance checks for completion of construction of environmental
protection facilities should be conducted simultaneously with the acceptance
checks for completion of construction of the main body project. Where trial
production is required for the construction project, the construction unit
should, within 3 months starting from the date of the said construction
project going into trial production, file an application with the competent
department of environmental protection administration that examined and
approved the said construction project environmental impact report,
environmental impact statement or environmental impact registration form
for acceptance checks on completion of matching construction of environmental protection facilities required for the said construction
project.

Article 21 For construction projects that are built in phases, go into
production or are delivered for use in phases, acceptance checks for their
corresponding environmental protection facilities should be conducted in
phases.

Article 22 Competent departments of environmental protection
administration should, within 30 days starting from the date of receipt
of the application for acceptance checks on completion of construction of the environmental protection facilities, complete the acceptance
checks.

Article 23 The said construction project may only formally go into
production or be delivered for use when the matching construction of the
environmental protection facilities required for the construction project
has passed acceptance checks.
Chapter IV Legal Liability

Article 24 Whoever commits any of the following acts in violation of the provisions of these Regulations shall be ordered by the
competent
department of environmental protection administration responsible for
the examination and approval of the construction project environmental
impact report, environmental impact statement or environmental impact
registration form to make up the formalities within a given time period;
whoever fails to make up the formalities on expiry of the given time period
and start construction without authorization shall be ordered to stop the
construction and may be imposed a fine of less than RMB 100000 Yuan:

(1)failure to file an application for approval of the construction
project environmental impact report, environmental impact statement or
environmental impact registration form;

(2)failure to file a new application for approval of the construction
project environmental impact report, environmental impact statement or
environmental impact registration form in the event of major changes
taking place in the nature, scale, location or production techniques
adopted of the construction project; and

(3)failure to submit the construction project environmental impact
report, environmental impact statement or environmental impact registration
form to the original examination and approval organ for re-examination and
re-verification of the construction project that starts construction on
expiry of 5 years starting from the date of approval of the construction
project environmental impact report, environmental impact statement or
environmental impact registration form.

Article 25 Whoever starts construction without authorization, without
the approval of the construction project environmental impact report,
environmental impact statement or environmental impact registration form
or without the consent upon re-examination and re-verification of the
original examination and approval organ shall be ordered by the competent
department of environmental protection administration responsible for the
examination and approval of the said construction project environmental
impact report, environmental impact statement or environmental impact
registration form to stop the construction, restore the original state
within the given time period, and may be imposed a fine of less than
RMB 100000 Yuan.

Article 26 The matching environmental protection facilites built
for the construction project that goes into trial production fail to
go into trial run simultaneouly with the main body project in violation
of the provisions of these Regulations shall be ordered by the competent
department of environmental protection administration responsible for the
examination and approval of the said construction project environmental
impact report, environmental impact statement or environmental impact
registration form to make a rectification within the given time period;
whoever fails to make a rectification on expiry of the given time period
shall be ordered to stop the trial production, and may be imposed a fine of less than RMB 50000 Yuan.

Article 27 A construction unit that fails to file an application for
acceptance checks on completion of construction of the environmental
protection facilities of a construction project having gone into trial
production for more than 3 months in violation of the provisions of these
Regulations shall be ordered by the competent department of environmental
protection administration that examined and approved the said construction
project environmental impact report, environmental impact statement or
environmental impact registration form to go through the formalities of acceptance checks on completion of the environmental protection
facilities
within the given time period; whoever fails to complete the said formalities
shall be ordered to stop the trial production and may be imposed a fine of less than RMB 50000 Yuan.

Article 28 Where the main body project formally goes into production or
is delivered for use without the completion of construction of matching
environmental protection facilities required for the construction project,
without going through acceptance checks or without passing the acceptance
checks in violation of the provisions of these Regulations shall be ordered
by the competent department of environmental protection administration that
examined and approved the said construction project emvironmental impact
report, environmental impact statement or environmental impact registration
form to stop the production or use, and may be imposed a fine of less than
RMB 100000 Yuan.

Article 29 Any unit engaging in the work of construction project
environmental impact evaluation that practises fraud in the work of environmental impact evaluation shall be revoked of its qualification
certificate by the competent department of environmental protection
administration under the State Council, and may concurrently be imposed
a fine of more than 100% less than 300% of the fee collected.

Article 30 Any functionary of the competent department of environmental
protection administration who indulges in malpractices for selfish gains,
abuse of power, negligence of duty that constitute a crime shall be
investigated of the criminal liability according to law; where a crime
has not been constituted, administrative sanctions shall be imposed
according to law.
Chapter V Supplementary Provisions

Article 31 Environmental impact evaluation should be done in compiling
construction planning for such regional development as valley development,
development zone construction, new urban district construction and old
urban district reconstruction. Specific measures shall be worked out
separately by the competent department of environmental protection
administration under the State Council in conjunction with the competent
departments concerned under the State Council.

Article 32 Environmental protection administration of offshore oil
prospecting and exploitation construction projects shall abide by the
provisions of the State Council concerning environmental protection
administration of offshore oil prospecting and exploitation.

Article 33 Environmental protection administration of construction
projects of military installations shall abide by the relevant provisions
of the Central Military Commission.

Article 34 These Regulations come into force as of the date of promulgation.

FIRE CONTROL LAW

Fire Control Law of the People’s Republic of China

(Passed by the Second Session of the Ninth National People’s Congress on April 29, 1998)

CHAPTER ONE GENERAL RULES

Article 1 This law is formulated in the purpose of preventing fire and reducing fire damage, safeguarding citizen’s personal security, public
property and civil assets, upholding public security and ensuring the smooth construction of the socialist modernization.

Article 2 Fire control work shall follow the policy of devoting major efforts into prevention and combining fire prevention with fire fighting,
and shall adhere to the principle of combining the efforts of both specialized organizations and the masses and carry out responsibility
system on fire prevention and safety.

Article 3 The State Council shall led and the people’s governments at all levels be responsible for fire control work. The people’s government
at all levels shall bring fire control work in line with the national economy and social development plan, and ensure that fire control
work fit in with the economic construction and social development.

Article 4 The public security department of the State Council shall monitor and administer the nationwide fire control work; the public security
organs of local people’s governments above county level shall monitor and administer the fire control work within their administrative
region and the fire control institutions of public security organs of the people’s government at the same level shall be responsible
for the implementation. Fire control work for military facilities, underground parts of mines and nuclear power plant shall be monitored
and administered by their competent units.

For fire control work on forest and grassland, in case there are separate regulations, the separate regulations shall be followed.

Article 5 Any unit and individual shall have the obligation of keeping fire control safety, protecting fire control facilities, preventing
fire disaster and reporting fire alarm. Any unit and adult shall have the obligation to take part in organized fire fighting work.

Article 6 The people’s government at all levels shall carry out regular fire control propaganda and education and strengthen citizens’ awareness
on fire control.

Administrative department on education and labor shall put fire control knowledge into teaching and training.

Competent departments in journalism, publishing, broadcasting, movie and television sector shall have the obligation to conduct propaganda
and education on fire control safety.

Article 7 Units and individuals who make prominent contribution or achievements in fire control work shall be awarded.

CHAPTER TWO FIRE PREVENTION

Article 8 Urban people’s governments shall bring the fire control plan into the overall urban planning, including fire control safety layout,
fire control station, fire control communication, fire truck passageway and fire control equipment, etc, and take the charge of organizing
relevant departments for its implementation. In case public fire control facilities and equipage are insufficient or do not fit in
with actual demand, efforts should be made on expansion, rebuilding, allocation and purchase or technical reform.

Science research and promotion on fire control work should be reiterated and advanced fire control technology and equipage should
be adopted.

Article 9 Existing factories and warehouses and specialized depots and wharves for production, storage, loading and unloading of inflammable
and explosive dangerous goods, shall be established at urban border area or independent safety zone. Filling and loading stations,
supply stations and pressure regulating stations for inflammable and explosive gas and liquid shall be set up in an appropriate location
and shall conform to the requirements on prevention of fire and explosion.

For existing factories and warehouses and specialized depots and wharves for production, storage, loading and unloading of inflammable
and explosive dangerous goods, and filling and loading stations, supply stations and pressure regulating stations for inflammable
and explosive gas and liquid, in case they do not conform to the regulations of this article, relevant units shall adopt measures
to give a solution within a time limit.

Article 10 For construction project conducting fire control design in accordance with requirements of the State Technical Standards on Fire
Control for Engineering Construction, the design unit shall conduct the design in accordance with requirements of the State Technical
Standards on Fire Control for Engineering Construction; the construction unit shall submit the drawings of fire control design for
the construction project and relevant materials to relevant public security fire control institution for review and approval; for
project not going through review and approval formalities or considered unqualified after the review and examination, the competent
construction administrative department shall not issue the license for construction and the construction unit shall not carry out
the construction.

For fire control design for construction project approved by relevant public security fire control institution, in case the design
needs changes, it shall be submitted to the previous public security fire control institution granting the approval for examination
and approval; without approval, no unit or individual shall be allowed to make the changes.

Upon the completion of a construction project containing a fire control design conducted in accordance with requirements of the State
Technical Standards on Fire Control for Engineering Construction, the project must go through acceptance check on fire control by
relevant public security fire control institutions; project without going through the acceptance check or considered unqualified
after the acceptance check shall not be put into use.

Article 11 The fire proof performance of constructional elements and construction materials must conform to the state standards or industrial
standards.

The indoor fittings and decoration of public places using inflammable and flame retardant materials in accordance with requirements
of the State Technical Standards on Fire Control for Engineering Construction, shall choose materials passing qualification check
by inspection institution designated in accordance with regulations of the Product Quality Law.

Article 12 Song and dance hall, cinema, hotel, restaurant, commercial center and market fair where the public gather, before putting into use
or starting business, shall be reported to local public security fire control institutions and can only be put into use or start
business after passing the acceptance check on fire control safety.

Article 13 For mass activities with fire danger, such as large gatherings, fireworks evening party and lantern party, the host unit shall formulate
preproposal on fire fighting and emergency evacuation and put into effect relevant fire control security measures, and report to
public security fire control institutions which will conduct fire control security check. The activities can only be held when qualification
check is granted.

Article 14 State organs, organizations, enterprises and institutions shall perform the following duties on fire control security:

(I) Formulate fire control safety system and operation rules on fire control safety;

(II) Exercise fire prevention safety responsibility system, appoint person-in-charge for fire control safety of the unit and various
departments and posts under the unit;

(III) Conduct fire control propaganda and education on employees in light of the characteristics of the unit,

(IV) Organize fire prevention inspection and remove hidden danger in time;

(V) Allocate and purchase fire control facilities and devices, set up fire control safety marks in accordance with relevant state
regulations, and organize regular inspection and maintenance to ensure a perfect and effective condition of fire control facilities
and device;

(VI) Ensure that evacuation passageway and safety exit are unblocked and set up evacuation marks on fire control safety conforming
to the state regulations.

The administrative unit of residential areas shall perform duties and responsibilities on fire control safety in accordance with regulations
of this article and do a good job on fire control safety in the residential areas.

Article 15 Rooms within the same building of workshop or warehouse shall not be used as dormitory. In case rooms in a building with workshop
or warehouse have already been used as dormitory, the problem shall be solved within a time limit. Those who indeed have difficulties
for the time being, shall take necessary fire control safety measures and can only continue to use the dormitory after acquiring
approval from public security fire control institutions.

Article 16 For units with higher risk of fire disaster and units that may cause major casualties and deaths or heavy loss of assets in case
of fire disaster, the public security fire control institutions of local people’s governments above county level shall select these
units as key units on fire control safety of their administrative region and file with the people’s government of the same level
for reference.

Key units on fire control safety shall, in addition to performing the duties and responsibilities as stipulated in Article 14 of this
law, perform the following duties and responsibilities on fire control safety:

(I) Set up file system on fire prevention, locate critical parts for fire control safety, set up fire prevention marks and exercise
strict administration;

(II) Exercise daily fire prevention patrol and set up patrol record;

(III) Conduct fire control safety training on employees;

(IV) Formulate pre-proposal on fire fighting and emergency evacuation and organize regular fire drill.

Article 17 Any unit and individual engaged in production, storage, transportation, sales or use and destroy of inflammable and explosive dangerous
goods, must execute relevant state regulations on fire control safety.

Units producing inflammable and explosive dangerous goods shall attach instruction book with datas such as the ignition point, flash
point and explosion limit of the product, and give points of attention for fire and explosion prevention. Inflammable and explosive
dangerous goods with independent packing shall be attached with a tag of dangerous goods.

Those who enter places where inflammable and explosive dangerous goods are produced and stored, must execute the state regulations
on fire control safety. It is prohibited to carry kindling into places where inflammable and explosive dangerous goods are produced
and stored. It is prohibited to illegally carry inflammable and explosive dangerous goods into public places or on public transportation
means.

The management of warehouses storing inflammable goods must be in execution of relevant state regulations on fire control safety.

Article 18 It is prohibited to use naked light in places with fire and explosion danger; in case naked light operation is required for special
reasons, examination and approval formalities shall be handled in accordance with relevant regulations. Operators shall follow the
regulations on fire control safety and adopt corresponding measures on fire control safety.

Operators conducting operation with fire danger like electrical welding and gas welding or operators for automatic fire control system,
must hold relevant certificates and strictly observe operation rules on fire control safety.

Article 19 The quality of fire control products must conform to the state standards or industrial standards. It is prohibited to produce, sell
or use fire control products without passing qualification check by the inspection organ designated in accordance with regulations
of the Product Quality Law.

It is prohibited to use complementary fire control parts, extinguishant, maintenance and fire control facilities and devices not conforming
to the state standards or industrial standards.

Public security fire control institutions and their staff shall not specify sales units and brands of fire control products in the
capacity of their functions.

Article 20 The quality of electrical products and gas utensils must conform to the state standards or industrial standard. The installation,
use and design and laying of circuit and pipes must conform to relevant technical regulations on fire control.

Article 21 Any unit or individual shall not damage or arbitrarily use, dismantle and stop using fire control facilities and devices, and shall
not bury and occupy hydrant, occupy fire prevention space and block fire control passageway.

Public utility units or urban construction units, when building road and cutting off power, water supply and communication lines that
may affect fire brigade in fire fighting and rescue work, must inform local public security fire control institutions in advance.

Article 22 During farm products harvest seasons and fire prevention period of forest and grassland, major holidays and frequent fire disaster
seasons, local people’s government at all levels shall organize and carry out fire control propaganda and education according to
the specific situations, adopt fire prevention measures and conduct fire control safety inspection.

Article 23 Villagers committee and neighborhood committee shall organize the masses to carry out fire control work, formulate fire prevention
safety convention and conduct fire control safety inspection. The township people’s governments and urban neighborhood offices shall
give guidance and supervision.

Article 24 Public security fire control institutions shall monitor and conduct inspection on state organs, organizations, enterprises and institutions
in terms of their observance of fire control laws and regulations. For key units for fire control safety, regular monitoring and
inspection shall be conducted.

Working staff of public security fire control institutions, when

conducting supervision and inspection, shall produce certificates.

Public security fire control institutions, when conducting fire control examination and approval and acceptance check, shall not collect
fees.

Article 25 Public security fire control institutions, when finding out hidden fire danger, shall inform relevant units or individuals in time
to take measures and order to remove the hidden danger within a time limit.

CHAPTER THREE FIRE CONTROL ORGANIZATIONS

Article 26 The people’s government at all levels shall, in accordance with the requirement of economic and social development, set up fire control
organizations in multi forms, strengthen construction of fire control organizations and the abilities on fire fighting.

Article 27 Urban people’s governments shall, in accordance with the standards on fire control station construction, set up public security fire
brigade, full time fire brigade to undertake fire fighting and rescue work.

Township people’s governments may, in accordance with the requirements of economic development and fire control work, set up full
time and voluntary fire brigades to undertake fire fighting and rescue work.

Public security fire brigades, except guaranteeing to carry out fire fighting and rescue work as stipulated in this law, should also
do rescue and relief work of other disasters or accidents.

Article 28 The following units shall set up full time fire brigades to undertake fire fighting and rescue work.

(I) Nuclear power plant, large power plant, civil airports and large wharves;

(II) Large enterprises producing and storing inflammable and explosive dangerous goods;

(III) Large warehouses and bases storing inflammable important goods;

(IV) Other large enterprises other than those listed in Item (I) (II) (III), but with high risk of fire disaster and are far from
local public security fire brigades.

Article 29 The establishment of full time fire brigade shall conform to relevant regulations of the state and be submitted to fire control institutions
of public security organs of the people’s government at provincial level.

Article 30 State organs, organizations, enterprises and institutions as well as towns and villages may set up obligatory fire brigade consisting
of working staff or villager based on need.

Article 31 Public security fire control institutions shall give business guidance to full time and obligatory fire brigades, and shall have
the right to direct and muster full time fire brigade for fire fighting and rescue work.

CHAPTER FOUR FIRE FIGHTING AND RESCUE

Article 32 Any one who discover a fire shall immediately report to the police. Any unit and individual shall provide convenience for fire alarm
reporting gratis and shall not obstruct the reporting. It is strictly prohibited to make false reporting of fire.

In case a fire occurs in a public place, the on site working staff of the public place shall have the obligation to organize and guide
the evacuation of on-site masses.

Units suffering fire disaster shall immediately organize fire fighting and rescue work. Neighboring units shall provide support.

Fire brigades, upon receiving fire reporting, must rush to fire site immediately to rescue people under mishap, eliminate dangerous
case and extinguish fire.

Article 33 Public security fire control institutions, when making unified organization and direction of on site fire fighting and rescue, the
chief commander shall have the right to determine the following matters in accordance with the requirements of fire fighting and
rescue work:

(I) Use of various water sources;

(II) Cut off transmission of power, inflammable gas and liquid, and restrict the use of fire and power;

(III) Delimit warning zone and exercise local transportation control;

(IV) Make use of neighboring constructions and related facilities;

(V) Dismantle or damage neighboring constructions and structures of fire site so as to prevent fire spreading;

(VI) Muster relevant units of water and power supply, medical and rescue and transportation to assist the fire fighting and rescue
work.

For ultra large fire disaster, relevant local people’s government shall organize relevant personnel and assemble necessary goods to
support the fire fighting.

Article 34 Public security fire control institutions, when conducting relief and rescue work of other disasters or accidents other than fire
disaster, shall carry out the task under unified direction of relevant local people’s government.

Article 35 Fire trucks and fire boats, when rushing for fire fighting and rescue work or relief and rescue task for other disaster and accidents,
shall not be restricted by its driving speed, driving route,

driving direction and traffic signals; other vehicles, ships and pedestrians must make way and shall not conduct overtaking. Traffic
commander shall guarantee the fast and smooth passing of fire trucks and fire boats.

Article 36 Fire truck, fire boats and fire control devices, equipage and facilities shall not be used for purposes other than fire fighting
and rescue work.

Article 37 Fire brigades shall not charge any fee for fire fighting and rescue work from units and individuals suffering fire disaster.

Full time fire brigade and obligatory fire brigade shall be compensated for fuel, extinguishant and device and equipage used in taking
part of fire fighting and rescue for other units.

Article 38 Personnel suffering injury, cripple and death as a result of taking part of fire fighting and rescue work, shall be given medical
treatment and compensation.

Article 39 After a fire is extinguished, public security fire control institutions shall, based on need, have the right to seal up fire site,
be responsible for investigation, identify fire cause, check and ratify fire losses and find out responsibilities of fire disasters.

For ultra large fire disasters, in case the State Council or the people’s government at provincial level consider it necessary, an
investigation can be organized.

After a fire is extinguished, fire breaking units shall protect fire site in accordance with requirements of public security fire
control institutions, accept investigation on the accident and provide accurate facts on the fire disaster.

CHAPTER FIVE LEGAL RESPONSIBILITIES

Article 40 Any one who violates the rules of this law and has one of the following conducts, shall be ordered to make corrections within a time
limit; those who do not make the corrections after the time limit, shall be ordered to stop construction, stop use of things concerned
or stop production or business, and may be punished with penalty simultaneously:

(I) Those who start construction when the fire control design of the construction projects have not be reviewed and approved or be
considered disqualified after the review and examination by relevant public security fire control institutions.

(II) Those who make arbitrary use of a completed construction project which should conduct fire control design in accordance with
law but has not passed or fail to pass the fire control acceptance check;

(III) Those who arbitrarily make use of or start business in places where the public gather without going through fire control safety
check or fail to pass the qualification check;

(IV) Units with conduct of this article shall be punished in accordance with rules of this article and the person in charge with direct
responsibility or other personnel with direct responsibility shall be given warning or penalty.

Article 41 Those who, in violation of this law, arbitrarily hold mass activities like large gatherings, fireworks evening party, lantern party
with risk of fire disaster, shall be ordered to make corrections by public security fire control institutions; those who can not
make the corrections, shall be ordered to suspend the activities and may be imposed with penalty.

(V) Units with the conduct of this article shall be punished in accordance with the rules of this article, and the person in charge
with direct responsibility or other personnel with direct responsibility shall be given disciplinary warning or penalty.

Article 42 Those who, in violation of this law, arbitrarily lower technical standards on fire control in construction, us construction parts
and materials not conforming the state standards or industrial standards or disqualified fitting and decoration materials during
construction, shall be ordered to make corrections within a time limit; those who do not make the corrections within the time limit,
shall be ordered to stop construction, and can be imposed with penalty simultaneously.

Units with the conduct of this article, shall be punished in accordance with rules of this article; and the person in charge with
direct responsibility or other personnel with direct responsibility shall be given disciplinary warning or penalty.

Article 43 State organs, organizations, enterprises and institutions who violates rules of this law and do not perform responsibilities or fire
control safety, shall be ordered to make corrections within a time limit; for units who do not make the corrections within the time
limit, the person in charge with direct responsibility or other personnel with direct responsibility shall be given administrative
sanction or disciplinary warning.

Operational places with one of the following conducts shall be ordered to make corrections within a time limit; those who do not make
the corrections within the time limit, shall be ordered to stop production and business, and can be imposed with penalty simultaneously;
the person in charge with direct responsibility or other personnel with direct responsibility shall be imposed with penalty:

(I) Those who do not remove fire danger in time;

(II) Those who do not, in accordance with relevant regulations of the state, allocate and purchase fire control facilities and devices;

(III) Those who do not guarantee the evacuation passageway and safety exist unblocked.

Those who use rooms in a building with workshop or warehouse as dormitory shall be punished in accordance with rules of Article 2.

Article 44 Those who, in violation the rules of this law, produce and sell fire control products that have not passed qualification check by
inspection institutions designated in accordance with rules of the Product Quality Law, shall be ordered to stop illegal action,
and be confiscated with product and illegal income, and be strictly punished in accordance with the rules of the Product Quality
Law.

Those units engaged in maintenance and check and test of fire control facilities and devices, carry out maintenance and check and
test in violation of rules on fire control technology, shall be ordered to make corrections within a time limit and can be imposed
with penalty simultaneously; and the person in charge with direct responsibility or other personnel with direct responsibility shall
be given disciplinary: warning or penalty.

Article 45 In case the installation of electrical appliances and gas utensils or the laying of circuits and pipelines do not conform to the
rules of fire control technology, the person in charge shall be ordered to make corrections within a time limit; those who do not
make the corrections within the time limit, shall be ordered to stop the use.

Article 46 Those who, in violation the rules of this law, produce, store, transport, sell or use, destroy inflammable and explosive dangerous
goods, shall be ordered to stop illegal activities, and can be given disciplinary warning, penalty or disciplinary warning or penalty.

Those units with the conduct of this article, shall be ordered to stop illegal activities, and can be given disciplinary warning or
penalty, and the person in charge with direct responsibility or other personnel with direct responsibility shall be punished in accordance
with rules of this article.

Article 47 Those who, in violation the rules of this law, have one of the following conducts, shall be given disciplinary warning or penalty,
or detention less than 15 days:

(I) Those who, in violation the rules of this law, enter places where inflammable and explosive dangerous goods are produced and stored;

(II) Those who, in violation law, use naked light in operation or who, in violation of prohibition, smoke, use naked light in places
with fire and explosion danger.

(III) Those who obstruct fire alarm reporting or make false report on fire disaster;

(IV) Those who deliberately obstruct fire truck and fire boasts from rushing to fire site or who disturb the order of fire site;

(V) Those who refuse to obey the command of fire site commander and influence fire fighting and rescue work;

(VI) Those whose blunder causes fire but has not resulted in heavy losses.

Article 48 Those who violates the rules of this law and have one of the following conducts, shall be given disciplinary warning or penalty:

(I) Those who instigate or force others to conduct operation at risk in violation the rules on fire control safety, but have not cause
serious results;

(II) Those who bury, occupy fire hydrant or occupy fire prevention space, block fire control passageway, or damage and arbitrarily
use, dismantle and stop use fire control facilities and devices;

(III) Those who do not remove serious fire danger after being informed by public security fire control institutions;

Units with the conduct of this article shall be punished in accordance with rules of this article; and the person in charge with direct
responsibility or other personnel with direct responsibility shall be disciplinary warning or penalty.

Those who have the conduct listed in item 2 of Clause 1, shall be further ordered to make restoration or compensate the losses within
a time limit; for those who do not make the restoration after the time limit, a forcible execution will be carried out on the dismantle
or cleaning up at the expense of the person(s) with illegal conduct.

Article 49 On site working staff of public places, in case of a fire, do not perform the obligation of organizing and guiding the evacuation
of the on site masses, and cause casualty and death, but do not constitute a criminal charge, shall be punished with detention less
than 15 days.

Article 50 For those who, after a fire is extinguished, deliberately destroy the fire site or make a simulated scene in the purpose of concealing
and covering up fire causes and shirking their responsibility, but do not constitute a criminal charge, shall be given disciplinary
warning or penalty and the person in charge with direct responsibility or other personnel with direct responsibility shall be punished
in accordance with this article.

Article 51 The punishment on conducts violating the rules of this law shall be decided by public security fire control institutions; punishment
of detention shall be decided by public security organs in accordance with rules of penal clauses on public order administration.

Article 52 The working staff of public security fire control institutions, in case of abusing their authority, ignoring their duty and playing
favoritism and committing irregularities, and having one of the following conducts, causing loss to the benefit of the state and
people, but having not constituted a criminal charge, shall be given administrative sanction in accordance with law:

(I) Those who pass the examination and approval and acceptance check to fire control design and construction projects that do not
conform to the state technical standards on fire control for construction projects;

(II) Those who deliberately delay in giving and do not give examination and approval and acceptance check to fire control design and
construction projects that shall be given examination and approval and acceptance check in accordance with law.

(III) Those who do not inform relevant units or individual to make corrections when finding hidden danger of fire.

(IV) Those who, in the capacity of their function, specify sales units or brands of fire control products or specify construction
units of fire control facilities.

(V) Other conducts involving abusing authority, dereliction of duty and playing favoritism and committing irregularities.

Article 53 Those who violate this law and commit a criminal offence will be pu

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING MAINTAINING CONTACT WITH COMPANIES BY MINISTRIES AND COMMISSIONS

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

Circular of the General Office of the State Council Concerning Maintaining Contact With Companies by Ministries and Commissions

(March 29, 1998)

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

For the convenience of large state-owned enterprises and companies to
contact the government, persistence of the principle of separating government
functions from enterprise management, the companies with which ministries and
commissions are responsible for maintaining contact are hereby circulated as
follows:

State Electric Power Company, with which State Economic and Trade
Commission responsible for maintaining contact;

China National Offshore Oil Corporation (CNOOC), with which State Economic
and Trade Commission responsible for maintaining contact;

China National Nonferrous Metals Corporation, with which State Economic
and Trade Commission responsible for maintaining contact;

China International Trust and Investment Corporation (CITIC), with which
the People’s Bank of China responsible for maintaining contact;

China Everbright Holding Co., Ltd., with which the People’s Bank of China
responsible for maintaining contact.

CURRENT CATALOGUE OF KEY INDUSTRIES, PRODUCTS AND TECHNOLOGIES THE DEVELOPMENT OF WHICH IS ENCOURAGED BY THE STATE (PROVISIONAL)

Category	GENERAL	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1997-12-31	Effective Date	1997-12-31

Current Catalogue of Key Industries, Products and Technologies the Development of Which Is Encouraged by the State (Provisional)

(Approved by the State Council on December 31, 1997 and promulgated by

the State Planning Commission on December 31, 1997)

I.Agriculture

Technologies for the improvement of fine breeds of animals and good
strains of plant seeds and control of major diseases and pests

Toxin-free seedlings

Soilless cultivation of vegetables and flowers

High-yield, high-efficiency modal cultivation

Development and extension of advanced agricultural technologies

Storage, preservation, processing and comprehensive utilization of
agricultural products

Integrated treatment of median- and low-yield farmland

Development of cultivable wasteland, barren hills and mountains, barren
deserts and shoals

Construction of farm produce bases of commodity foodgrains, cotton,
oils, sugar and other crops

Dry farming, water-saving farming and ecological farming

Natural rubber

Construction of the grass industry and grasslands

Cultivation and breeding of brand-name, special and excellent aquatic
products

Dairy industry

Biological agricultural chemicals

High-efficiency, low-toxin and pollution-free agricultural chemicals

New-type agricultural plastic films

New veterinary vaccines and veterinary pharmaceutical chemicals

Bovine and sheep embryo transplant

Technological transformation of fishing vessels

Fodder additives and their matching exploitation

II.Forestry

Selection, cultivation and hereditary improvement of fine seeds for
forests

Cultivation and storage of fine species of economic forests and good
strains of flower seeds

Prevention and control of forest disasters

Afforestation on extraordinarily difficult lands in ecologically
vulnerable regions

Fast-growing high-yield forests

Shelter forest projects

Forest resources restoration projects

Prevention and control of desertification

Pulp paper making in raw materials forest bases

Deep processing and serial products of wood, artificial forests,
small-diameter wood and residues in forest regions

Bamboo engineering materials and plant fibre engineering materials

Deep processing of forestry chemical products

Physiological active matters of trees

New materials for sand fixing, water conservation and soil improvement

III.Water Conservancy

Flood-control harnessing projects of big rivers and lakes

Trans-valley water diversion projects

Water source projects in regions short of water resources

Drinking water and water improvement projects for humans and cattle
in drought areas

Safety construction of flood storage and retention areas

Maintenance and construction of sea dykes

Silt clean-up in rivers, lakes and reservoirs

Danger removal and consolidation of sick and dangerous reservoirs and
embankments

Integrated utilization of water conservancy hubs

Technology and construction of facilities for water and soil conservation

Development and exploitation of slightly salty water, poor quality water
and sea water and desalination of sea water

Protection and development of water energy resources

Civil engineering composite materials in water conservancy projects

Technology, equipment and methodology of high-efficiency water
transmission and distribution and water-saving irrigation

High-efficiency friction-enduring low-lift big-flow water pumps

Automated systems for automatic measurement and reporting of water
situation and flood control

CAD series software for the survey and design of water conservancy
projects

Instruments and equipment for hydrological data gathering

IV.Meteorology

Systems technology and equipment for automated meteorological stations

Equipment for observation and analysis of special weather conditions

Doppler radar technology and equipment

V.Coal

Geological and geophysical survey of mines

Big- and medium-size high-efficiency open strip mines

Big- and medium-size high-efficiency coal washeries

Prevention and control of gas, coal dust, mine water and mine fire

Industrial shaped coal

Liquefied coal pulp

Coal gasification and liquefaction

Survey, development and exploitation of coal rake gas

Development and utilization of low-heat value fuels and associated
resources in coal mines

Pipeline coal transmission

VI.Electricity

Hydropower generation

Big-size coal mine mouth power plants

Integrated thermal power generation

Solar energy, ground thermal energy, marine energy, trash and
bio-matter energy power generation and big-size wind energy power generation

Joint gas cycling power generation

Clean coal power generation

Long-distance ultra-high-pressure power transmission and transformation

Transformation and construction of power networks

VII.Nuclear Energy

One-mega kilowatt pressurized water reactor nuclear power station

Low-temperature heat supply nuclear reactor, fast neutron breeder
reactor and fusion reactor

Advanced mining and smelting of uranium mine

High-performance nuclear fuel elements

Fuel-short after-treatment

Instruments and apparatuses for nuclear analysis and nuclear survey

Isotopes and their radiation applications

VIII.Petroleum and Natural Gas

Petroleum and natural gas exploration

Petroleum and natural gas exploitation

Pipeline transmission of crude oil

Pipeline transmission of natural gas

Liquefied natural gas

Petroleum reserve

Integrated exploitation of petroleum, gas and associated resources

IX.Railway

Trunk railway network

Speed improvement of existing railway lines

High-speed railway system

25-ton axle-weight cargo heavy load

Railway operations safety technology assurance system

Heavy-duty fine-quality rails and new-type soft sleepers

Marshalling yard automation, loading-and-unloading operation mechanization
and goods yard equipment

Railway passenger and cargo transport equipment

Railway passenger and cargo transport information system

Railway container transportation

X.Highway

National trunk highway network

Intelligent highway transport system

Highway rapid passenger and cargo transportation

New highway engineering materials

Design and manufacture of new highway machinery and equipment

Highway container transportation

XI.Water Transport

Main coastal hub ports

Inland-river trunk navigation channels and wharves

Standardization, serialization and modernization of ship transport

Loading and unloading automation of big ports

Ocean shipping electronic data exchange system

Maritime traffic control system

Design and manufacture of new port machinery and equipment

Maritime container transportation

Multi-modal coordinated transportation of containers

XII.Air Transport

Civil airports

High-performance airport security-check equipment

Air traffic control system

XIII.Posts and Telecommunications

Key technologies and equipment of stratosphere telecommunications systems

Optical fibre telecommunications system and equipment for 622Mb/s and
over digital synchronous series

Microwave telecommunications system and equipment for 155Mb/s and over
digital synchronous series

Digital mobile telecommunications systems and equipment (GSM, CDMA,
DCS1800 etc.)

ISDN systems and equipment

New technologies and equipment supporting telecommunications networks

Satellite telecommunications systems and ground station equipment

Broadcasting satellites and ground station equipment

Satellite mobile telecommunications systems and equipment

Cable-and-wireless-user-access-to-the-network system and equipment

Asynchronous transfer-mode wide-band optical electronic transmission
systems and equipment

Intelligent network and its applied equipment

Digital cluster telecommunications systems and equipment

Automated disposal systems for postal letters and parcels

XIV.Iron and Steel

High-efficiency ore dressing and integrated exploitation of
mineral resources

Direct reduction

Pellets burning and pellet-grouping burning

Blended coal coking and tamping coking

Dry coke quenching

High-wind-temperature long-life hot-air blast furnace

Blast furnace oxygen-enriched coal spray

Integrated technology for high-efficiency long-life blast furnace

Ultra-high power electric furnace and integrated energy-saving
technology

Converter splash protection technology

High-efficiency continuous casting

Hot loading and hot feeding of continuous casting blanks

Melting reduction

Near-terminal continuous casting and rolling of thin plate blanks and
thin belt blanks

Integrated automation of metallurgy

Controlled rolling and controlled cooling

Plate shape control

Surface coating and plating

Low alloy steel and micro alloy steel

50-ton and over converter steel

Stainless steel smelting

Silicon steel sheet cold rolling

Hot and cold rolling of stainless steel plates

Petroleum steel pipes

Scrap steel processing and disposal

Mining of high-alumina bauxite and hard clay ore, and production of
chamotte

Metallurgical environmental protection and integrated utilization of
metallurgical wastes

XV.Nonferrous Metals

Exploitation of deep and difficult mine beds

Nonferrous metal composite materials and new alloy materials

Production of alumina with monohydrate hard bauxite ore

Nonferrous metal fortified smelting and wet process smelting

Non-crystal alloy thin belts

Supercritical extraction

High-efficiency energy-saving mine washery and electro-chemically
controlled flotation

Big pre-roasted vat electrolytic aluminium

Aluminium and aluminium alloy rapid casting and rolling

8-inch and over monocrystalline silicon chips and polycrystalline silicon

High-efficiency ore dressing chemicals

High-performance high-precision hard alloy, tin compound, antimony
compound and ceramics materials

High-performance magnetic materials

Superfine materials, electronic pulp and its products

New braking materials

Integrated exploitation of multi-metal intergrown mines

Development and integrated utilization of rare earth, rare and scattered
metals

Integrated exploitation of salt lake resources

Development, exploitation and integrated recovery of difficult gold
ores and difficult gold tailings in gold mines by adopting new roasting
technique, hot-pressure pre-oxidization and cyanidation gold extraction
technique and bacteria-oxidization and cyanidation gold extraction
technique

XVI.Chemical Industry

Scientific fertilizer applications (soil-survey-based fertilizer
applications, new chemical fertilizers and all types of special-purpose
fertilizers)

Big-size synthetic ammonia and urea

Big- and medium-size high-density phospho-potash fertilizer and its
compound fertilizer

Compound fertilizers with trace elements required by crops

Pressurized gasification of liquefied coal pulp

New high-efficiency catalysts

Potassium chloride with an annual production of 200,000 tons and over
and potassium sulphate with an annual production of 100,000 tons and over

Improved calcium-magnesium-phosphorus compound fertilizer

Granular ammonium phosphate and ternary compound fertilizer made with
tubular reactor

Coated urea

Joint production of cement and sulphuric acid having an annual capacity of
30,000 tons and over with pulp-process ammonium phosphate and phosphorus
limestone

Sulphur-based ternary fertilizer

Rare earth compound fertilizers

High-purity phosphorus pentasulphide

Advanced wet-process refining of phosphoric acid

Anti-aging special polythene

Low-toxin aluminite sodium

10,000-ton grade sodium cyanide

5,000-ton/year gaseous-phase white carbon black

Big- and medium-size chemical mines

Organosilicon monoblocks, organic fluoride and other new chemical products

New fine chemical products

Big-size coal chemical industry

Ion film for caustic soda

Titanium white chloridization

High-performance meridian tyres

Bone materials for high-performance meridian tyres

Treatment and integrated utilization of chemical wastes (waste water,
waste gases and waste residues)

XVII.Petroleum Chemical Industry

Single-series scale 5-million-ton and over oil refinery

Economy-scale deep processing of crude oil

600,000-ton and over ethylene and big-size after-processing

Polyvinyl chloride resin

Engineering plastics and new plastic alloys

Matching raw materials for composite materials: biphenol-A, butadiene
styrene latex, pyridine, 4.4′ dibenzo-methane diisocyanate and methylbenzene
diisocyanate

Synthetic rubber and its applications

Single-series capacity 100,000-ton and over acrylic

Single-series capacity 350,000-ton and over PTA

Nylon 6 and nylon 66 new products

New products of organic chemical raw materials

Integrated utilization of gas and chemical by-products of refineries

Treatment and integrated utilization of petroleum chemical wastes
(waste water, waste gases and waste residues)

XVIII.Construction Materials

4,000-ton/day and over ripe-material new dry-process cement

New walling materials, decoration and renovation materials, water-proof
and insulation materials

10,000-ton glass fibre of direct melting process

High-quality composite plastic materials for doors, windows, pipes
and wall and floor coverings

Deep processing of sheet glass

High-grade sanitary ware and its metal parts

Super-fine improved processing of non-metal ores and their
products

Diamond processing (from rough diamonds ground into finished diamonds)

XIX.Pharmaceutics

Medicines listed in the Catalogue of Basic Medicines of the State

Important products having an edge for export

Bioengineering medicine

Radioactive drugs

New anti-carcinogen drugs (including anti-hepatitis drugs) and
new cardio- and cerebro-vascular drugs

Diagnosis agents for AIDS and radiation immunization

New medicines for endemic diseases

New fever and pain relievers

New medicaments, auxiliary materials and medicaments produced
according to GMP

Special-purpose medicinal intermediaries in short supply and new
antibiotics

New biochemical medicine series (including agents for biochemical
diagnosis)

New packing materials for medicine

New pharmaceutics and medical apparatuses

New sanitary materials and dressings

Medicines and tools for planned parenthood

Selection technology and selection models for new medicines

New bacteria for amino acids

Fodder-grade biotin

Virginiamycin and tylosin

Penicillin salt refining and purification

Fermentation and automated temperature control system

Large-scale multi-peptide synthesis and purification

Large-scale medicinal nucleic acid synthesis and purification

High-yield gene engineering bacteria

Natural drugs

Research and development of new traditional Chinese medicine

XX.Machinery

Precision shaping technology and equipment

Triple axes joint-operation digital programmed machine tools, digital
control systems and servo devices

Advanced computer hardware and software technologies and equipment for
the development of machinery products

Advanced testing and measuring technologies and equipment for the
development of machinery products

High-speed super-hard precision cutters and precision automatic
measurers and measuring instruments

New sensors

Ball bearings for cars, ball bearings for railway rolling stocks,
precision ball bearings, high-speed ball bearings

8.5M rotor and over mixed current and axle current hydropower generation
equipment and its key matching auxiliary engines

Big-size constant flow and pumping energy conservation hydropower
generating units and its key matching auxiliary engines

Super critical thermal power generating units

600,000-kilowatt and over big-size air-cool power generating units

100,000-kilowatt and over cyclic fluidized bed boiler

36,000-kilowatt and over gas and steam joint cycling equipment

Big-size wind energy power generating units

Nuclear power generating units and its key matching auxiliary engines

500,000-volt and over ultra-high-pressure direct or alternate current
transmission and transforming equipment

Equipment for heave-current breaking-capacity test and equipment for
transformer abrupt short-circuit test

New insulation materials

450,000-ton/year and over key production technologies and equipment for
chemical fertilizers and ethylene

Scattered control systems for major technical equipment

Online automatic testing technologies and systems

New electric and electronic technologies and devices

Precision and ultra-precision processing technologies and equipment

Laser processing technologies and equipment

Big-size precision instruments

New hydraulic airtight pneumatic elements and parts

Low-pressure electronic appliances

High-strength special-shape tighteners and fixers

20-ton/hour and over resin sand casting equipment

Design, manufacturing technology and equipment for advanced moulds

Big-size vacuum electronic cluster welding technology and equipment

Controllable atmospheric and vacuum heat treatment technology and
equipment

New-technology equipment manufacture for testing and measuring
instruments for safe production and environmental protection

Urban garbage disposal technology and equipment

Big-size sewage treatment equipment

Smoke and gas desulphurization and denitration equipment

Sea water desalination technology and equipment

Industrial robots

5-million-ton/year and over trackless mining, loading and transport
equipment

Complete plant for 20-million-ton and over big-size open strip mines

Tunnelers

Underground railway excavating equipment

2m and over big-size cold and hot continuous rolling and process
control technology and equipment

30,000 cubic-meter/hour and over air-separation equipment mechanical
parkade

Natural gas gathering and transmission equipment

Key equipment for soft-plate printing

Machinery and equipment for moderate scale operations of agriculture

Equipment for deep processing of farm produce and animal products and
integrated utilization of resources

Equipment for agricultural environment and ecological agriculture

Agricultural harvesters, farm machinery and tools (for cotton, paddy,
corn, beans and green fodder, etc.)

Vacuum refining and casting technologies and equipment

Elements, parts and materials for new instruments

Big-size engineering construction machinery and equipment

Advanced internal-combustion engines and their key components and parts

XXI.Electronics and Information

0.8 micron wire width and below large-scale integrated circuits

New electronic elements and parts (including elements and parts in
chips) and electronic elements and parts for electricity

New surface stick-on assembly elements and parts

Optic-electro components, sensitive elements, parts and sensors

Development of special-purpose materials for transistors and
photo-electronics

Big- and medium-size electronic computers

High-performance micro-electronic computers

Work stations and servers

Software development

3D CAD, CAT, CAM, CAE systems and other computer application systems

Special-purpose electronic equipment, instruments, tools and moulds

Digital cross-connection equipment

Large-capacity CD and magnetic disc memory and their parts

New display apparatuses (LCD, panel display)

New printing devices (laser printers)

Equipment for data communications multimedia systems

Monomode optical fibre

Routers and other network equipment

Digital audio-visual broadcasting systems and products

High-definition laser disc (following MPEG-II standards such as DVD)

HDTV

Digital image recording and playing technology

Digital color television

Big-screen color projection television

VCD core, optical head and special-purpose chips

Ordinary paper fax machine

New encryption machines

Multimedia terminals

Wideband digital programmed switches (ATM)

High-speed wireless paging products

Digital multi-function telephones

XXII.Automobiles

Automobile body and body accessories

New automobile and motorcycle engines

Key auto components and parts

Precision forging, ferrous casting and nonferrous casting and
rough blanks of important auto components

Automobile moulds

Auto-borne electronic products

New materials for light-weight vehicles

Development systems for complete vehicle, complete motorcycle and engines,
components and parts

Engine control systems and vehicle exhaust control systems such as
ternary catalysis conversion devices, etc.

Testing systems for vehicle and motorcycle type authentication for
national testing centres

XXIII.Shipbuilding

High-tech high-performance and 60,000-ton and over giant vessels

Main engine for vessels

Shipborne power stations

Ship crankshafts, special auxiliary engines and electronic instruments

XXIV.Aviation and Aerospace

Civilian aircraft and components and parts

Aeroengines

Integrated avionics systems

Airborne equipment systems

Helicopter body, rotor system and transmission system

New materials and their applications for aviation and aerospace

Gas Turbines

Satellites, carrier rockets and their components and parts

Satellite applications

Aerospace technology applications

XXV.Light Industries and Textiles

Mould design, processing and manufacture of non-metal products

Economy-scale standards pulp, paper and paper board

New high-speed nine-layer and over corrugated paper

Leather after-treatment processing

Mercury-free alkaline manganese second battery cell, nickel hydrogen
battery cell and lithium battery cel

OFFICIAL REPLY OF THE STATE COUNCIL CONCERNING ACID RAIN CONTROL AREAS AND SULPHUR DIOXIDE POLLUTION CONTROL AREAS

Category	ENVIRONMENTAL PROTECTION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1998-01-12	Effective Date	1998-01-12

Official Reply of the State Council Concerning Acid Rain Control Areas and Sulphur Dioxide Pollution Control Areas

Appendix I: Acid Rain Control Areas
Appendix II: Sulphur Dioxide Pollution Control Areas

(January 12, 1998)

State Bureau of Environmental Protection:

We have received the Request of your Bureau for Approval of the Plan for
Delimiting Acid Rain Control Areas and Sulphur Dioxide Pollution Control Areas
(Huanfa [1997] No. 634). Our reply is hereby sent to you as follows:

1. We have approved the Plan for Delimiting Acid Rain Control Areas and
Sulphur Dioxide Pollution Control Areas in principle and Your Bureau can
promulgate the plan. We also approve the delimitation of acid rain control
areas and sulphur dioxide pollution control areas (Hereinafter referred to
“the two types of control areas”. See the appendices for the details).

2. The objectives of the two types of control areas: By the year 2000, the
industrial pollution sources discharging sulphur dioxide will have attained
the standard for discharging sulphur dioxide and a system for controlling the
total amount of discharged sulphur dioxide will have been practised; in
municipalities directly under the Central Government, capital cities of
provinces, cities as special economic zones, open coastal cities and major
tourist cities which are polluted by sulphur dioxide, the density of sulphur
dioxide in the environment air will have attained the national environmental
quality standards and the worsening of acid rain in the acid rain control
areas will have been alleviated. By the year 2010, the total amount of
discharged sulphur dioxide shall be controlled under the level of sulphur
dioxide discharged in 2000; the density of sulphur dioxide in the environment
air in cities shall have reached the national environmental quality standards
and sections of the acid rain control areas in which the precipitation has pH
value below 4.5 shall be obviously decreased by comparing with those in 2000.

3. It is prohibited to establish new mines with the coal bed having above
three percent sulphur contents. Those having already been established with the
coal bed having above three percent sulphur contents shall be step by step
ordered to cut down the output, suspend the production or close up. For the
construction or transformation of coal mines with above 1.5 percent sulphur
contents, coal washing facilities shall be set up correspondingly. Existing
coal mines shall be according to planning fitted with coal washing facilities
by stages and in groups. The sulphur contents of fuel coal and fuel heavy oil
in cities shall conform to the prescriptions of the local people’s governments
of cities.

4. Construction of any new coal-burning thermal power plant in urban areas
and suburbs of large or medium-sized cities is prohibited except for those
heat and power plants generating power by producing heat. For the construction
and transformation of power plants with fuel coal having above one percent
sulphur contents, desulphurization equipment shall be set up correspondingly.
Existing power plants with fuel coal having above one percent sulphur contents
shall take measures to reduce the discharge of sulphur dioxide before the year
2000, and shall be fitted with desulphurization equipment by stages and in
groups or take other similarly effective measures to reduce the discharge of
sulphur dioxide before the year 2010. Enterprises engaged in chemical
industry, metallurgical industry, building materials industry, nonferrous
metal industry and other industries causing serious pollution must be fitted
with technical facilities for treatment of waste gas or take other measures to
reduce the discharge of waste gas.

5. At the time of readjusting the industrial structure and the structure
of products, great effort shall be made to carry out cleaning production,
strengthen technological transformation, promote the saving and comprehensive
utilization of resources and lower the level of discharged sulphur dioxide in
real earnest.

6. The collection, administration and use of fees for discharging sulphur
dioxide shall be conducted conscientiously as required by the Reply of the
State Council Concerning Expanding Experiments of Collecting Fees for
Discharging Sulphur Dioxide (Guohan [1996] No. 24). Special funds for major
pollutant-discharging units to treat sulphur dioxide pollution shall not be
less than 90 percent of the discharge fees.

    7. Local people’s governments concerned and departments concerned in
charge of electric power and coal shall, in accordance with the requirement of
this Reply, work out relevant planning and plans and take effective measures
in order to realize objectives and requirements of the two types of control
areas. Your Bureau should ensure the guidance over the prevention and control
of pollution in the two types of control areas and strengthen the
environmental monitoring, supervision and inspection.

Appendix I: Acid Rain Control Areas

Provinces, Autonomous
Regions and
Scopes of Control Zones
Municipalities               (Impoverished Counties to Which
the State Gives
Directly under the                 Special Support
Are Exceptions)
Central Government

Shanghai Municipality   Shanghai Municipality

Jiangsu Province        Nanjing City, Yangzhou City, Nantong City, Zhenjiang

City,
Changzhou City, Wuxi City, Suzhou City, Taizhou

City

Zhejiang Province Hangzhou City, Ningbo City, Wenzhou City (urban

districts
and Ruian City, Yongjia County, Cangnan

County),
Jiaxing City, Huzhou City, Shaoxing City,

Jinhua
City, Quzhou City (urban districts and

Jiangshan
City, Qu County, Longyou County), Taizhou

City

Anhui Province Wuhu City, Tongling City, Maanshan City, Huangshan

City,
Caohu Prefecture, Xuancheng Prefecture

Fujian Province Fuzhou City, Xiamen City, Sanming City, Quanzhou City,

Zhangzhou
City, Longyan City

Jiangxi Province Nanchang City, Pingxiang City, Jiujiang City, Yingtan

City,
Fuzhou Prefecture, Ji’an City, Ganzhou City

Hubei Province Wuhan City, Huangshi City, Jingzhou City, Yichang

City,
Jingmen City, Ezhou City, Qianjiang City,

Xianning
Prefecture

Hunan Province Changsha City, Zhuzhou City, Xiangtan City, Hengyang

City,
Yueyang City, Changde City, Zhangjiajie City,

Chenzhou
City, Yiyang City, Loudi Prefecture, Huaihua

City,
Jishou City

Guangdong Province Guangzhou City, Shenzhen City, Zhuhai City, Shantou

City,
Shaoguan City, Huizhou City, Shanwei City,

Dongguan
City, Zhongshan City, Jiangmen City, Foshan

City,
Zhanjiang City, Zhaoqing City, Yunfu City,

                        Qingyuan
City, Chaozhou City, Jieyang City

Guangxi Zhuang          Nanning City, Liuzhou City, Guilin City, Wuzhou City,
Autonomous Region       Yulin City, Guigang City, Nanning Prefecture (Shanglin

County,
Chongzuo County, Binyang County, Heng County),

Liuzhou
Prefecture (Heshan County, Laibin County,

Luzhai
County), Guilin Prefecture (Lingchuan County,

Quanzhou
County, Xing’an County, Lipu County, Yongfu

County),
Hezhou Prefecture (Hezhou City, Zhongshan

County),
Hechi Prefecture (Hechi City, Yizhou City)

Chongqing Municipality Yuzhong District, Jiangbei District, Shapingba

District,
Nan’an District, Jiulongpo District, Dadukou

District,
Yubei District, Beibei District, Banan

District
as well as Wansheng District, Shuangqiao

District,
Fuling District, Yongchuan City, Hechuan

City,
Jiangjin City, Changshou County, Rongchang

County,
Dazu County, Qijiang County, Bishan County,

Tongliang
County, Tongnan County

Sichuan Province Chengdu City, Zigong City, Panzhihua City, Luzhou

City,
Deyang City, Mianyang City, Suining City,

Neijiang
City, Leshan City, Nanchong City, Yibin City,

Guang’an
Prefecture, Meishan Prefecture

Guizhou Province Guiyang City, Zunyi City, Anshun Prefecture, Xingyi

City,
Kaili City, Duyun City

Yunnan Province Kunming City, Qujing City, Yuxi City, Zhaotong City,

                        Gejiu
City, Kaiyuan City, Chuxiong City

Appendix II: Sulphur Dioxide Pollution Control Areas

Provinces, Autonomous
Regions and
Scopes of Control Zones
Municipalities               (Impoverished Counties to Which
the State Gives
Directly under the                 Special Support
Are Exceptions)
Central Government

Beijing Municipality    Dongcheng District, Xicheng District, Xuanwu District,

Chongwen
District, Chaoyang District, Haidian

District,
Fengtai District, Shijingshan District as

well
as Mentougou District, Tongzhou District,

                        Fangshan
District, Changping County and Daxing County

Tianjin Municipality    Urban districts

Hebei Province          Urban districts of Shijiazhuang City, and Xinji City,

Gaocheng
City, Jinzhou City, Xinle City, Luquan City

Urban
districts of Handan City, and Wu’an City

Urban
districts of Xingtai City, and Nangong City,

Shahe
City

Urban
districts of Baoding City, and Zhuozhou City,

Dingzhou
City, Anguo City, Gaobeidian City

Urban
districts of Zhangjiakou City

Urban
districts of Chengde City

Urban
districts of Tangshan City, and Zunhua City,

Fengnan
City

Urban
districts of Hengshui City

Shanxi Province Urban districts of Taiyuan City, and Gujiao City

Urban
districts of Datong City

Urban
districts of Yangquan City

Urban
districts of Shuozhou City

Xinzhou
City

Yuci
City

Linfen
City

                        Yuncheng
City

Inner Mongolia          Urban districts of Huhhot City
Autonomous Region       Urban districts of Baotou City, and Shiguai Mining

District,
Tumote Right Banner

Urban
districts of Wuhai City

Urban
districts of Chifeng City

Liaoning Province Urban districts of Shenyang City, and Xinmin City

Urban
districts of Dalian City

Urban
districts of Anshan City, and Haicheng City

Urban
districts of Fushun City

Urban
districts of Benxi City

Urban
districts of Jinzhou City, and Linghai City

Urban
districts of Huludao City, and Xingcheng City

Urban
districts of Fuxin City

Urban
districts of Liaoyang City

Jilin Province Urban districts of Jilin City, and Huadian City,

Jiaohe
City, Shulan City

Urban
districts of Siping City, and Gongzhuling City

Urban
districts of Tonghua City, and Meihekou City,

Ji’an
City

Yanji
City

Jiangsu Province Urban districts of Xuzhou City, and Pizhou City, Xinyi

City

Shandong Province Urban districts of Jinan City, and Zhangqiu City

Urban
districts of Qingdao City, and Jiaonan City,

Jiaozhou
City, Laixi City

Urban
districts of Zibo City

Urban
districts of Zaozhuang City, and Tengzhou City

Urban
districts of Weifang City, and Qingzhou City,

Gaomi
City, Changyi City

Urban
districts of Yantai City, and Longkou City,

Laiyang
City, Laizhou City, Zhaoyuan City, Haiyang City

Urban
districts of Jining City, and Qufu City, Yanzhou

City,
Zoucheng City

Urban
districts of Tai’an City, and Xintai City,

Feicheng
City

Urban
districts of Laiwu City

Urban
districts of Dezhou City, and Leling City,

Yucheng
City

Henan Province Urban districts of Zhengzhou City, and Gongyi City

Urban
districts of Luoyang City, and Yanshi City,

Mengjin
County

Urban
districts of Jiaozuo City, and Qinyang City,

Mengzhou
City, Xiuwu County, Wen County, Wuzhi County,

Bo’ai
County

Urban
districts of Anyang City, and Linzhou City

Urban
districts of Sanmenxia City, and Yima City,

Lingbao
City

Urban
districts of Jiyuan City

Shaanxi Province Urban districts of Xi’an City

Urban
districts of Tongchuan City

Urban
districts of Weinan City, and Hancheng City,

Huayin
City

Shangzhou
City

Gansu Province Urban districts of Lanzhou City

Urban
districts of Jinchang City

Urban
districts of Baiyin City

                        Zhangye
City

Ningxia Hui             Urban districts of Yinchuan City
Autonomous Region       Urban districts of Shizuishan City

Xinjiang Uygur          Urban districts of Urumqi City
Autonomous Region

REGULATIONS ON THE RUNNING OF EDUCATIONAL INSTITUTIONS WITH SOCIAL RESOURCES

Category	EDUCATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1997-07-31	Effective Date	1997-10-01

Regulations on the Running of Educational Institutions With Social Resources

Chapter I  General Provisions
Chapter II  Establishment of Educational Institutions
Chapter III  Teaching and Administration of Educational Institutions
Chapter IV  Property and Financial Management of Educational Institutions
Chapter V  Change and Disbandment of Educational Institutions
Chapter VI  Security and Support
Chapter VII  Legal Responsibility
Chapter VIII  Supplementary Provisions

(Promulgated by Decree No. 226 of the State Council of the People’s

Republic of China on July 31, 1997)
Chapter I  General Provisions

Article 1 These Regulations are formulated with a view to encouraging
the running of educational institutions with social resources, safeguarding
the legitimate rights and interests of sponsors, schools and other
educational institutions, teachers and other educational workers and
those receiving education and promoting the healthy development of the
cause of running educational institutions with social resources.

Article 2 These Regulations shall be applicable to the running of society-oriented schools and other educational institutions(hereinafter
referred to as educational institutions) by enterprises, institutions,
societies and other social organizations and individual citizens with
non-state financed educational funds.

Article 3 The cause of running educational institutions with social
resources constitutes a component part of the cause of socialist education.
People’s Governments at all levels should strengthen leadership over the
work of running educational institutions with social resources and integrate
the cause of running educational institutions with social resources into
national socio-economic development plans.

Article 4 The State adheres to the policy of giving active encouragement,
rendering strong support, correct guidance and strenghtening administration
with respect to the running of educational institutions with social resources.

Article 5 Social resources should be focused on the running of
educational institutions conducting vocational education, adult education,
senior secondary education and pre-school education. The State encourages
the running of educational institutions conducting compulsory education
with social resources as a supplement to the conducting of compulsory
education by the State. The State exercises strict control over the running
of higher educational institutions with social resources.

Social resources must not be used in the running of religious schools
and covert religious schools.

Article 6 Profit-making must not be the aim in the running of educational
institutions with social resources.

Article 7 No organiation or individual shall seek apportionment of educational funds from enterprises, institutions and individuals
in the
name of running educational insstitutions with social resources.

Article 8 The State safeguards the legitimate rights and interests of educational institutions run with social resources.

Educational institutions run with social resources have the independent
right in managing these institutions.

Article 9 Educational institutions run with social resources should
abide by laws and regulations, adhere to the socialist orientation in
running these institutions, implement the State’s educational policy to
ensure educational and teaching quality.

Article 10 Educational institutions run with social resources and their
teachers and students have the equal legal status of the educational
institutions run by the State and their teachers and students.

Article 11 The department of education administration under the State
Council shall be responsible for the overall planning, integrated coordination
and macro-control of the work related to the running of educational
institutions with social resources nationwide.

The department of education administration, the department of labor
administration and other departments concerned under the State Council
shall be responsible for the work related to the running of educational
institutions with social resources within the scope of functions and
responsibilities defined by the State Council.

The departments concerned of People’s Governments at or above the county
level shall be responsible for the work related to the running of educational
institutions with social resources in accordance with the functions and
responsibilities defined by the People’s Governments of the provinces,
autonomous regions and municipalities directly under the Central Government.

Article 12 Rewards shall be given to organizations and individuals
having made outstanding contributions to the running of educational
institutions with social resources.
Chapter II Establishment of Educational Institutions

Article 13 Units applying for the running of educational institutions
should have the qualifications of a legal person; individuals applying for
the running of educational insitutions should have political rights and
complete capability of civil acts.

Examination agencies conducting state education examinations, vocational
qualification examinations and technical grade examinations must not run
educational institutions related to their examination businesses.

Article 14 Establishment of educational institutions should fulfil the
basic conditions prescribed in the Education Law and the Vocational Education
Law.

Standards for the establishment of schools conducting higher curricula-
based education shall be worked out by the department of education
administration under the State Council; standards for the establishment of
other educational institutions shall be worked out by the People’s Governments
of the provinces, autonomous regions and municipalities directly under the
Central Government according to different categories.

Article 15 Running of educational institutions conducting curricula-
based education, literacy make-up courses, pre-school education and
grant-aided self-taught examinations shall be subject to the examination
and approval by the departments of education administration of People’s
Governments at or above the county level pursuant to the authority of
examination and approval prescribed by the State; running of educational
institutions conducting vocational qualification training and technical grade
training with vocational skills as the main contents and running of
educational institutions conducting labor employment vocational skills
training shall be subject to the examination and approval by the department
of labor administration of People’s Governments at or above the county level
pursuant to the authority of examination and approval prescribed by the State
with copies despatched to the department of education administration at the
same level for the record; running of other educational institutions shall be
subject to the examination and approval by the department of education at the
same level upon the examination, verification and consent of the competent
department of administration pursuant to the authority of examination and
approval prescribed by the State.

Article 16 Sponsors applying for the running of educational institutions
should present the following materials to the organs of examination and
approval:

(1)an application report;

(2)certification documents of qualifications of the sponsor;

(3)certification documents of qualifications of the headmaster-designate
or chief administrator-designate and teachers to be employed;

(4)certification documents of assets and sources of funds of the
proposed educational institution;

(5)constitution and development plan of the proposed educational
institution; and

(6)other materials required by the organ of examination and approval.

For joint running of an educational institution, an agreement on joint
running of the educational institution should likewise be presented.

Article 17 Terms and conditions and standards for the establishment of educational institutions should be the basis for the examination
and approval
of an educational institution and in keeping with national interests and
public interests of society and the requirements for rational educational
structure and distribution.

Organs of examination and approval accept applications for the running of educational institutions conducting
curricula-based education before the third
quarter of every year and give a reply in writing before the end of April of the following year; organs of examination and approval
should give a reply
in writing within three months starting from the date of acceptance of the
application for the running of other educational institution.

Article 18 Organs of examination and approval shall issue licenses for
the running of educational institution to the educational institutions the
establishment of which have been approved. Format of the license for the
running of an educational institution shall be determined by the department
of education administration under the State Council, and the printing shall
be organized respectively by the department of education administration and
the department of labor administration under the State Council according to
the division of responsibilities.

Upon obtainment of the license for the running of an educational
institution, the educational institution should enter into registration
pursuant to the Regulations on the Running of Non-enterprise Units with
Social Resources before it can conduct educational and teaching activities.

Article 19 Educational institutions must not set up branches.

Article 20 The name of an educational institution should indicate
precisely its category, level and the administrative area in which it is
located; no such characters as “Zhonghua”(Chinese), “Zhonggou”(China) and
“Gouji”(international) should be put ahead the names without the approval of the department of education administration or the department
of labor
administration under the State Council according to the division of responsibilities.
Chapter III Teaching and Administration of Educational Institutions

Article 21 An educational institution may set up a board of directors.
The board of directors proposes candidates for the position of headmaster or
chief administrator, decides on such major issues as the development,
fund-raising, budget and final accounting of revenue and expenditure of the educational institution.

The board of directors shall be composed of the sponsor or his/her
representative, representatives of the staff of the educational institution
and social personages enthusiastic about the cause of education and with
moral integrity and good behavior, among them more than one third of the
directors should have more than five years of educational and teaching
experiences.

The first batch of directors shall be elected on the proposal of the
sponsor, and later directors shall be elected according to the prescribed
procedures of the board of directors. The directors shall be employed upon
verification and approval by the organ of examination and approval.

Active-duty state functionaries must not concurrently serve as
directors of educational institutions; however, those desigated by
People’s Governments at or above the county level or their concerned
departments out of special requirements are exceptions.

Article 22 The headmaster or chief administrator of an educational
institution shall be responsible for teaching and other administrative work.

Qualifications for the position of the headmaster or chief administrator
of the state-run educational institution at the same level and of the same
category shall be taken as reference for the qualifications for the position
of the headmaster or chief administrator of an educational institution;
however, there may be appropriate relaxation in age.

Candidacy for the headmaster or chief administrator of an educational
institution shall be proposed by the board of directors where there is a
board of directors; where there is no board of directors, it shall be
proposed by the sponsor and employed upon verification and approval by the
organ of examination and approval.

Article 23 Rules for relatives and dependents avoidance shall be
observed between those serving as directors, headmaster or chief administrator
and those serving in positions of general services, accountants and
personnel management.

Article 24 Teachers and other educational workers of educational
institutions have the right to form trade unions pursuant to the Trade Union
Law to safeguard their legitimate rights and interests.

Article 25 Educational institutions employ teachers and other educational
workers independently pursuant to the relevant provisions of the State.
Teachers employed by educational institutions should meet the qualifications
and conditions for teachers prescribed by the State. Educational institutions
should strengthen political and ideological education and professional
training of the teachers employed by them.

Employment contracts should be signed by educational institutions and
teachers and other educational workers employed by them.

Employment of teachers of foreign nationalities by educational
institutions shall be processed pursuant to the relevant provisions of the State.

Article 26 Educational institutions conduct enrollment independently
pursuant to the provisions of the State on enrollment.

Constitutions and advertisements for enrollment of educational
institutions can only be made public upon examination by organs of examination and approval.

Enrollment of students from abroad by educational institutions shall be
handled pursuant to the relevant provisions of the State.

Article 27 Educational institutions decide on the establishment of specialities independently pursuant to the relevant provisions
of the State.

Article 28 Contents of teaching of educational institutions should
conform to the provisions of the Constitution, laws and regulations.

Middle and primary schools run with social resources should carry out
education and teaching in accordance with the requirements of the
curricula plans and teaching programs worked out by the department of education administration under the State Council and the departments
of education administration of People’s Governments of the provinces, autonomous
regions and municipalities directly under the Central Government wherein
they are located, and the textbooks chosen should be subjected to the
examination and finalization of the departments of education administration
of People’s Governments of the provinces, autonomous regions and
municipalities directly under the Central Government.

Article 29 Educational institutions should make full use of public
educational facilities, equipment and information of society and rely fully
on the role of broadcasting and television universities and broadcasting
and television schools to carry out educational and teaching activities
and improve educational and teaching quality.

Article 30 Educational institutions should establish and implement rules
for students’ status and teaching management.

Article 31 Students of schools conducting curricula-based education upon
approval having completed the studies and passed the examination shall be
issued certificates of curricula by the schools they are in pursuant to the
relevant provisions of the State.

Students of other educational institutions shall, upon completion of studies, be issued certificates of training
or other certificates of studies
by the educational institutions they are in, annotating the subjects learnt
and examination scores, and they may take part in vocational qualification
examinations or technical grade examinations pursuant to the relevant
provisions of the State and obtain corresponding certificates of vocational
qualifications or technical grade certificates upon passing the examinations.

Article 32 For engraving and making of seals and stamps, educational
institutions should go through the formalities of examination and approval at
the public security organ of the People’s Government at or above the county
level of the locality wherein it is located on the presentation of the license
for the running of educational institution and certification issued by the
organ of examination and approval.

Educational institutions should submit samples of their seals and stamps
to the organs of examination and approval and public security organs for the
record.

Article 33 Departments of education administration and departments of labor administration and other departments concerned should
step up
supervision and control over the work related to the running of educational
institutions with social resources. Local People’s Governments at or above the
county level should strengthen supervision, guidance and evaluation of the
educational level, quality of the educational institutions within their
respective administrative areas.

No administrative department should collect any fee in the exercise of supervision and control over educational
institutions.
Chapter IV Property and Financial Management of Educational Institutions

Article 34 Educational institutions should establish financial and
accounting rules and property management rules in accordance with law and
keep accounting books pursuant to the provisions for accounting rules for
administrative institutions.

Article 35 Educational institutions shall collect fees in accordance with
the relevant provisions of the State.

The items and rates for fee collection of educational institutions
shall be set forth by them and, upon being given remarks after examination
and verification by organs of examination and approval, be verified and
determined by the departments of finance and departments of price control
according to the division of responsibilities in the light of the actual
conditions pertaining to the education, teaching costs and acceptance of subsidies of the educational institutions.

Article 36 Educational institutions may, during their existence and
continuation, manage and use their properties which however must not be
transferred or used for guarantee.

No organization or individual shall infringe on or occupy the properties
of educational institutions.

Article 37 Educational institutions should determine the percentage of expenditure in wages and benefits of all categories of personnel
in the
constant expenses of running the educational institutions which should be
submitted to the organs of examination and approval for the record.

The accumulated funds of educational institutions can only be used
to increase input into education and improve conditions in running the
educational institutions and must not be used for distribution and
extra-school investment.

Article 38 Educational institutions should make financial and
accounting reports at the end of every accounting year, and entrust
auditing institutions of society to audit their financial and accounting
condition in accordance with the requirements of the organs of examination
and approval and submit the reports to the organs of examination and
approval for scrutiny.
Chapter V Change and Disbandment of Educational Institutions

Article 39 Changes in the name, nature and level of an educational
institution should be submitted to the organ of examination and approval
for approval; changes in other items should be submitted to the organ of examination and approval for the record.

Article 40 Check-up of properties and final financial settlements
should be made in the merger of educational institutions, and the amalgamated
educational institution shall resettle the students in the previous
educational institutions in a satisfactory manner.

Article 41 Educational institutions having any of the following
circumstances should be disbanded:

(1)The board of directors or sponsor of an educational institution
requests disbandment in accordance with the provisions of the constitution
of the educational institution; and

(2)Inability to carry on normal educational and teaching activities
on account of various reasons.

Disbandment of an educational institution shall be subjected to the
verification and approval of the organ of examination and approval.

Article 42 An educational institution should, in disbandment, resettle
the in-school students in a satisfactory manner, and the organ of examination
and approval may provide assistance. During disbandment of an educational
institution conducting compulsory education, the organ of examination and
approval should make arrangements for the in-school students receiving
compulsory education to continue their studies.

Article 43 Clearing of properties should be carried out in accordance
with law in the disbandment of an educational institution.

The educational institution should, in clearing, first of all pay the
salaries of teachers and staff members due and the social security expenses;
surplus properties of an educational institution after clearing, upon
returning or returning in terms of money the input of the sponsor, overall
arrangement shall be made by the organ of examination and approval for the
remaining portion to be used in the development of the cause of running
educational institutions with social resources.

Article 44 An announcement shall be made by the organ of examination
and approval of the educational institution verified and approved for
disbandment which shall be notified to hand back the license for the
running of an educational institution and its seals and stamps that
should be kept in sealed storage.
Chapter VI Security and Support

Article 45 The departments concerned of People’s Governments at or above
the county level should provide support to the running of educational
institutions with social resources pursuant to the provisions of relevant
laws and regulations.

Article 46 The departments of education administration, departments of labor administration and other conceerned departments of
People’s Governments
at or above the county level should give equal treatment to educational
institutions run with social resources as given to educational institutions
run by the State in professional guidance, teaching and research activities,
teacher management and citations and rewards.

Article 47 For land required for the construction of educational
institutions, local People’s Governments at or above the county level should
integrate it into plans in accordance with the relevant provisions of the
State and in the light of actual conditions, handle it as land use for
non-profit undertakings, and may give priority to it in making the
arrangement.

Article 48 Salaries, social security and benefits of teachers and
other educational workers of educational institutions shall be insured
by the educational institutions in accordance with law.

The teaching age of special-subject teachers shall be calculated on
a continuous basis during their work in the educational institutions.

Article 49 Students of educational institutions run with social
resources have equal rights as those of the educational institutions
run by the State in going to a higher grade, taking part in examinations
and social activities in accordance with law.

The principle of orientation to society, equal competition and
employment on merit shall be followed in the employment of students of educational institutions, and employer units must not discriminate.
Chapter VII Legal Responsibility

Article 50 Whoever violates the provisions of the Education Law
in activities of running educational institutions with social resources
shall be penalized pursuant to the relevant provisions of the Education
Law.

Article 51 A sponsor who makes false contribution to funds or withdraw
the funds after the establishment of the educational institution shall be
directed by the organ of examination and approval to amend; one
who refuses to amend shall be imposed a fine less than 200% of the amount he/she should have contributed or the amount he/she has
withdrawn; where the circumstances are serious, the organ of examination
and approval shall direct him/her to stop enrollment and revoke the license
for the running of an educational institution.

Article 52 Whoever engages in the forgery, alteration and buying and
selling of licences for the running of educational institutions shall be
penalized by the public security organ according to the Penalties for
Violation of Public Security Regulations; one whose offence constitutes
a crime shall be investigated of the criminal responsibilities.

Article 53 An educational institution which indulges in indiscriminate
collection of fees exceeding the verified items and rates shall be directed
by the organ of examination and approval to refund the fees overcharged
within the specified time period, and shall be penalized by the department
of finance and the department of price control according to relevant laws
and regulations.

Article 54 An educational institution which fails to determine the
percentage of expenditure of salaries and benefits in the constant expenditure
of running the educational institution or fails to implement the percentage
determined, or use the accumulation for distribution or extra-school
investment shall be directed by the organ of examination and approval to
amend and may be administered a warning; where the circumstances are serious
or one who refuses to amend shall be directed by the organ of examination
and approval to stop enrollment, its license for the running of the
educational institution revoked or the educational institution taken over.

Article 55 An educational institution where there is disorder in
administration, low quality in education and teaching resulting in pernicious
influences shall be directed by the organ of examination and approval to
consolidate within the specified time period, and may be administered a
warning; where the circumstances are serious or one which fails to meet
the requirements after consolidation shall be directed by the organ of examination and approval to stop enrollment, its license for
the running of the educational institution revoked or the educational institution taken
over.

Article 56 An organ of examination and approval that indulges in
abuse of power and malpractices for selfish gains, or neglects administration
of the educational institutions approved by it resulting in serious
consequences, the person-in-charge bearing direct responsibilities and other
personnel directly responsible shall be imposed administrative sanctions
according to law; those whose offences constitute a crime shall be
investigated of the criminal responsibility according to law.

An administrativ

MEASURES OF THE PEOPLE’S REPUBLIC OF CHINA FOR THE ADMINISTRATION OF PARTNERSHIP ENTERPRISE REGISTRATION

The State Council

Decree of the State Council of the People’s Republic of China

No. 236

Measures of the People’s Republic of China for the Administration of Partnership Enterprise Registration are hereby promulgated and
shall come into force as of the date of promulgation.

Premier of the State Council, Li Peng

November 19, 1997

Measures of the People’s Republic of China for the Administration of Partnership Enterprise Registration

Chapter I General Provisions

Article 1

These Measures are formulated in accordance with the Partnership Enterprise Law of the People’s Republic of China (hereinafter referred
to as the Partnership Enterprise Law) for the purpose of confirming the management qualifications of partnership enterprises and
standardizing the act of partnership enterprise registration.

Article 2

Formalities for enterprise registration shall be completed in pursuance of the provisions of the Partnership Enterprise Law and these
Measures for the establishment, change and nullification of a partnership enterprise.

Article 3

A partnership enterprise may engage in business operations only upon the approval and registration by the enterprise registration
organ in accordance with law and obtainment of a business license.

A partnership enterprise shall engage in business operations in accordance with law within the registration matters approved by the
enterprise registration organ.

Article 4

An organ of industry and commerce administration shall be the partnership enterprise registration organ (hereinafter referred to as
the enterprise registration organ).

The department of industry and commerce administration under the State Council shall take charge of the work of partnership enterprise
registration nationwide.

Municipal and county organs of industry and commerce administration shall be responsible for the partnership enterprise registration
in areas under their respective jurisdiction.

Chapter II Registration for the Establishment

Article 5

The qualifications prescribed inArticle 8 of the Partnership Enterprise Law shall be met for the establishment of a partnership enterprise.

Article 6

For the establishment of a partnership enterprise, the representative designated by all the partners or their jointly entrusted agent
shall apply to the enterprise registration organ for registration for the establishment thereof.

Article 7

The registration matters of a partnership enterprise shall include the name, business site, business scope, the mode of operations
of the partnership enterprise and the names of partners and their residences, amount of contribution and mode of contribution.

For any partnership enterprise that determines the partner conducting the affairs of the partnership enterprise or the establishment
of branch offices, the registration matters shall also include information on the partner conducting the affairs of the partnership
enterprise or the branch offices.

Article 8

The following documents shall be presented to the enterprise registration organ for the application for the establishment of a partnership
enterprise:

(1)

An application letter for the registration for the establishment signed by all partners;

(2)

Identification papers of all partners;

(3)

A letter of authority for the representative designated by all partners or the jointly entrusted agent;

(4)

The partnership agreement;

(5)

Certificates of contribution ownership rights;

(6)

Certificate of the business site; and

(7)

Other documents the presentation of which are prescribed by the department of industry and commerce administration under the State
Council.

For partnership enterprises the establishment of which are subject to examination and approval provided for by laws and administrative
regulations, relevant approval documents shall also be presented. For any partnership enterprise that agrees in the partnership agreement
or is decided by all partners to entrust one or several partners to conduct the affairs of the partnership enterprise, a letter of
authority of all partners shall also be presented.

Article 9

An enterprise registration organ shall, within 30 days from the date of receipt of all documents presented by an applicant pursuant
to the provisions ofArticle 8 of these Measures, make a decision of approval and registration or that of no registration.

Article 10

The date of issuance of a business license for a partnership enterprise shall be the date of establishment of the partnership enterprise.

Chapter III Change(s) in Registration

Article 11

An application for change(s) in registration shall be submitted to the original enterprise registration organ within 15 days from
the date of making the decision for change(s) or occurrence of the change(s)for the occurrence of change(s) in the registration matters
of a partnership enterprise.

Article 12

The following documents shall be presented to the original enterprise registration organ for the application for change(s) in registration
by a partnership enterprise:

(1)

An application letter for change(s) in registration;

(2)

The decision on change(s) signed all partners or the testimonial documents of the occurrence of change(s); and

(3)

Other documents the presentation of which are prescribed by the department of industry and commerce administration under the State
Council.

For change(s) in matters subject to examination and approval provided for by laws and administrative regulations, relevant approval
documents shall also be presented.

Article 13

An enterprise registration organ shall, within 30 days from the date of receipt of all documents in conformity with the provisions
ofArticle 12 of these Measures, make a decision of approval for change(s) in registration or that of no registration for the change(s).

The enterprise registration organ shall reissue a business license in the event of the change(s) in registration matters of a partnership
enterprise involving change(s) in the business license.

Chapter IV Nullification of Registration

Article 14

A partnership enterprise that is disbanded in pursuance of the provisions ofArticle 57 of the Partnership Enterprise Law shall, within
15 days from the date of completion of settlement, go through the formalities of nullification of registration at the original enterprise
registration organ.

Article 15

The following documents shall be presented when a partnership enterprise goes through the formalities of nullification of registration:

(1)

An application letter for the nullification of registration signed by all partners;

(2)

The settlement statement signed by all partners; and

(3)

Other documents the presentation of which are prescribed by the department of industry and commerce administration under the State
Council.

A partnership enterprise shall hand in the business license when going through the formalities of nullification of registration.

Article 16

A partnership enterprise is terminated upon nullification of registration by an enterprise registration organ.

Chapter V Registration of Branch Office(s)

Article 17

A partnership enterprise shall apply to the enterprise registration organ of the locality wherein the branch office(s) is (are) located
for the registration for the establishment of a branch office(s).

Article 18

The registration matters of a branch office shall include the name, business site, business scope, mode of operations of the branch
office and the name and residence of the responsible person of the branch office.

The business scope and mode of operations of a branch office shall not exceed those of the partnership enterprise.

Article 19

The following documents shall be presented to the enterprise registration organ for the establishment of a branch office by a partnership
enterprise:

(1)

An application letter for the registration for the establishment of a branch office;

(2)

The decision for the establishment of a branch office signed by all partners;

(3)

A copy of the business license of the partnership enterprise with the seal of the enterprise registration organ affixed;

(4)

A letter of authority for the responsible person entrusted by all partners to conduct the affairs of the branch office and his/her
identification papers;

(5)

Certificate of the business site; and

(6)

Other documents the presentation of which are prescribed by the department of industry and commerce administration under the State
Council.

For a partnership enterprise whose establishment of a branch office is subject to examination and approval as provided for under laws
and administrative regulations, relevant approval documents shall also be presented.

Article 20

Application by a partnership enterprise for change(s) in registration or nullification of registration of its branch office shall
be handled with reference to the provisions governing change(s) in registration and nullification of registration of partnership
enterprises of these Measures.

Chapter VI Annual Inspection and License Management

Article 21

Partnership enterprises shall, pursuant to the requirements of enterprise registration organs, present annual inspection reports and
other documents within the specified time and be subject to annual inspection.

Article 22

Enterprise registration organs shall examine the annual inspection documents presented by partnership enterprises to confirm their
qualifications for continued operations.

Article 23

The business license of a partnership enterprise has an original copy and a copy. The original copy and the copy are equally authentic
legally.

A partnership enterprise may, according to business requirements, apply to the enterprise registration organ for the issuance of a
number of copies of the business license.

A partnership enterprise shall place the original copy of the business license in an eye-catching position at the business site.

Article 24

No unit or individual shall forge, alter, sell, lease, lend or transfer the business license in other forms.

In the event of loss or damage of the business license, a partnership enterprise shall publish a statement to declare it null and
void in the newspaper designated by the enterprise registration organ and apply to the enterprise registration organ for obtainment
of a new license or change the license.

Article 25

Formats of the original copy and the copy of business license of partnership enterprise shall be formulated by the department of industry
and commerce administration under the State Council.

Chapter VII Legal Liability

Article 26

Whoever engages in business operations in the name of a partnership enterprise without the approval and registration of the enterprise
registration organ in accordance with law and obtainment of a business license shall be ordered by the enterprise registration organ
to stop the business operations and may be imposed a fine of less than RMB 5000 Yuan.

Article 27

Whoever presents fake documents or adopt other fraudulent means in going through partnership enterprise registration for the obtainment
of partnership enterprise registration shall be ordered by the enterprise registration organ to make a rectification and may be imposed
a fine of less than RMB 5000 Yuan; where the circumstances are serious, the enterprise registration shall be nullified and the business
license revoked.

Article 28

Whoever fails to go through change(s) in registration in accordance with the provisions of these Measures in the event of change(s)in
registration matters of a partnership enterprise shall be ordered by the enterprise registration organ to make a rectification within
the specified time; whoever fails to go through change(s) in registration on expiry of the specified time shall be imposed a fine
of less than RMB 2000 Yuan.

Article 29

The settler of a partnership enterprise who fails to submit the settlement statement to the enterprise registration organ or conceal
important facts or there are major omissions in the settlement statement submitted shall be ordered by the enterprise registration
organ to make a rectification.

Article 30

A partnership enterprise that fails to go through the nullification of registration upon disbandment and completion of settlement
shall be revoked of its business license by the enterprise registration organ.

Article 31

A partnership enterprise that fails to accept annual inspection pursuant to the provisions of these Measures shall be ordered by the
enterprise registration organ to accept annual inspection within the specified time and may be imposed a fine of less than RMB 3000
Yuan; a partnership enterprise that fails to accept annual inspection on expiry of the specified time shall be nullified of its registration
and revoked of the business license.

Article 32

A partnership enterprise that conceals the truth and indulges in fraudulent practices in annual inspection shall be ordered by the
enterprise registration organ to make a rectification and may be imposed a fine of less than RMB 3000 Yuan.

Article 33

A partnership enterprise that fails to place the original copy of its business license in an eye-catching position at the business
site shall be ordered by the enterprise registration organ to make a rectification within the specified time.

Article 34

A partnership enterprise that leases, lends or transfers the business license in other forms shall be ordered by the enterprise registration
organ to make a rectification and may be imposed a fine of less than RMB 5000 Yuan; where the circumstances are serious, registration
of the enterprise shall be nullified and the business license shall be revoked.

Any lessee, borrower or transferee in other forms of the business license that engages in business operations shall be ordered by
the enterprise registration organ to stop the business operations and may be imposed a fine of less than RMB 5000 Yuan.

Article 35

Any functionary of enterprise registration organs who abuses power, indulges in self-seeking misconducts, accepts bribes or infringes
on the legitimate rights and interests of partnership enterprises which constitute a crime shall be investigated of criminal liability;
where no crime has been constituted, administrative sanctions shall be administered according to law.

Chapter VIII Supplementary Provision

Article 36

These Measures shall enter into force as of the date of promulgation.

The State Council
1997-11-19

PARTNERSHIP ENTERPRISES

Category	LEGAL PERSONS AND ECONOMIC ORGANIZATIONS	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	In Force
Date of Promulgation	1997-02-23	Effective Date	1997-08-01

Law of the People’s Republic of China on Partnership Enterprises

Contents
Chapter I  General Provisions
Chapter II  Establishment of Partnership Enterprises
Chapter III  Partnership Enterprises’ Property
Chapter IV  Execution of Partnership Enterprise Affairs
Chapter V  Relations of Partnership Enterprises to Third Parties
Chapter VI  Entering into and Withdrawing from Partnerships
Chapter VII  Disbandment and Liquidation of Partnership Enterprises
Chapter VIII  Legal Liability
Chapter IX  Supplementary Provisions

(Adopted at the 24th Meeting of the Standing Committee of the Eighth

National People’s Congress on February 23, 1997 and promulgated by Order
No.82 of the President of the People’s Republic of China on February 23,
1997)
Contents

Chapter I General Provisions

Chapter II Establishment of Partnership Enterprises

Chapter III Partnership Enterprises’ Property

Chapter IV Execution of Partnership Enterprise Affairs

Chapter V Relations of Partnership Enterprises to Third Parties

Chapter VI Entering into and Withdrawing from Partnerships

Chapter VII Disbandment and Liquidation of Partnership Enterprises

Chapter VIII Legal Liability

Chapter IX Supplementary Provisions
Chapter I General Provisions

Article 1 This Law is formulated with a view of standardizing partnership
enterprises’ activities, protecting the legitimate rights and interests of
partnership enterprises and their partners, maintaining the social and
economic order, and promoting the development of the socialist market economy.

Article 2 “Partnership enterprise” mentioned in this Law refers to a
profit-making organization established within the territory of China according
to this Law with their partners associated under a partnership agreement, each
making capital contributions, carrying out business operations, distributing
profits, undertaking risks and bearing unlimited and joint liability for the
partnership enterprise’s debts.

Article 3 A partnership agreement shall be in written form after
consultation and agreement among all the partners according to law.

Article 4 In concluding a partnership agreement and establishing a
partnership enterprise, the parties shall follow the principles of
voluntariness, equality, fairness, honesty and credibility.

Article 5 Partnership enterprises shall not use words such as “limited”
or “limited liability” in their names.

Article 6 In engaging in business activities, partnership enterprises
must observe laws and administrative regulations and abide by professional
ethics.

Article 7 Property, legitimate rights and interests of partnership
enterprises and their partners shall be protected by law.
Chapter II Establishment of Partnership Enterprises

Article 8 The following conditions shall be fulfilled for the
establishment of a partnership enterprise:

(1) two or more partners each of which to bear unlimited liability
according to law;

(2) a written partnership agreement;

(3) capital contributions actually made by each of partners;

(4) the name of the partnership enterprise; and

(5) the place of business and conditions necessary for partnership
operations.

Article 9 A partner shall be a person with full capacity for civil
conduct.

Article 10 Those prohibited by laws or administrative regulations from
engaging in profit-making activities shall not be partners of a partnership
enterprise.

Article 11 A partner may make his capital contributions in currency, or
by providing material objects, land use rights, intellectual property rights
or other property rights. The capital contributions above-mentioned shall be
legal property or property rights owned by the partner.

Capital contributions in other forms than in currency may, if necessary,
be appraised and evaluated by all the partners through consultation, or by a
statutory evaluation institution with the authorization of all the partners.

A partner may provide personal services as capital contributions after
consultation and agreement among all the partners. The evaluation of
contributions in the form of services shall be determined by all the partners
through consultation.

Article 12 Partners shall perform their duties of capital contribution in
terms of the form, amount and time limit of such contribution, as agreed upon
among them in the partnership agreement.

Capital contributions actually made by each of the partners according to
the partnership agreement shall be regarded as contributing to the partnership
enterprise.

Article 13 A partnership agreement shall include the following items:

(1) the name of the partnership enterprise and address of its place of
business;

(2) the purpose of partnership and the business scope of the partnership
enterprise;

(3) names and residences of each partner;

(4) the form, amount and time limit for each partner to make capital
contributions;

(5) the method of distributing profits and undertaking risks;

(6) execution of the partnership enterprise’s affairs;

(7) entering into and withdrawal from partnership;

(8) disbandment and liquidation of the partnership enterprise; and

(9) default liability.

A partnership agreement may include the operation term of the partnership
enterprise and the means of dispute settlement among partners.

Article 14 A partnership agreement takes effect upon the signing and
sealing by all the partners of the partnership agreement. Any partner shall
enjoy rights and undertake liabilities according to the partnership agreement.

The partnership agreement may be revised or supplemented if all the
partners reach agreement through consultation.

Article 15 Anyone who applies for registration of the establishment of a
partnership enterprise shall submit to the enterprise registration authority
documents such as a written application for registration, a partnership
agreement and partners’ identity certificates.

Where it is required by laws or administrative regulations that the
establishment of the partnership enterprise must be subject to the examination
and approval by the department concerned, the applicant shall submit an
approval document in applying for registration of establishment.

Article 16 The enterprise registration authority shall, within 30 days as
of the date of receiving the documents of application for registration, make a
decision whether or not to grant registration. It shall grant registration and
issue a business licence to the applicants that meet the requirements
stipulated in this Law, and shall not grant registration to those who fail to
meet the requirements stipulated in this Law and give them a written reply
explaining the reasons.

Article 17 The date of the issuance of the partnership enterprise’s
business licence shall be the date of the establishment of a partnership
enterprise.

No partner may engage in any profit-making activities in the name of the
partnership enterprise that has not yet taken out the business licence.

Article 18 A partnership enterprise intending to establish a branch shall
apply for the registration of establishment of the branch to the enterprise
registration authority in the place where the branch is to be located for a
business licence.
Chapter III Partnership Enterprises’ Property

Article 19 During the period in which a partnership enterprise exists,
capital contributions made by partners and all proceeds earned on behalf of
the partnership enterprise shall be the property of the partnership enterprise.

Property of a partnership enterprise shall be under the unified management
and use of all the partners according to this Law.

Article 20 Partners shall not claim the partitioning of property of the
partnership enterprise before the liquidation of the enterprise unless
otherwise provided for by this Law.

If partners privately transfer or dispose of the property of the
partnership enterprise before the liquidation of the enterprise, the
partnership enterprise shall not on that ground act against a third party who
has acted in good faith and has not informed of the case.

Article 21 During the period in which a partnership enterprise exists,
any partner who intends to transfer to a person who is not one of the partners
all or part of his property shares in the partnership enterprise must obtain
the consent of all other partners.

The transfer of all or part of the shares of property in the partnership
enterprise between partners shall be notified to the other partners.

Article 22 Where a partner transfers his share of property according to
law, the other partners shall, on identical terms, have priority in acquiring
the share.

Article 23 Where those who are not partners, with the consent of all the
partners, acquire shares of property in the partnership enterprise according
to law, they shall become the partners of the partnership enterprise upon the
modification of the partnership agreement and shall enjoy rights and undertake
liabilities according to the modified partnership agreement.

Article 24 Where a partner puts his share of property in the partnership
enterprise in pledge, he shall obtain the consent of all other partners.

If a partner, without the consent of all other partners, puts his share of
property in the partnership enterprise in pledge, his act shall be void or
treated as withdrawal from partnership. If he thereby causes losses to the
other partners, he shall bear liability for compensation according to law.
Chapter IV Execution of Partnership Enterprise Affairs

Article 25 Each partner shall have the equal right to execute the
partnership enterprise’s affairs. All the partners may jointly execute the
enterprise’s affairs, or, as agreed upon in the partnership agreement or by
decision of all the partners, authorize one or more partners to execute the
enterprise’s affairs.

The partner executing the partnership enterprise’s affairs shall
externally represent the partnership enterprise.

Article 26 Where one or more partners has(have) been authorized to
execute the partnership enterprise’s affairs as stipulated in the preceding
Article, the other partners shall no longer execute the enterprise’s affairs.

Partners not participating in the execution of affairs shall have the
right to supervise the partners executing affairs and inspect the execution.

Article 27 Where one or more partners execute(s) the partnership
enterprise’s affairs, the partner(s) shall report the execution of affairs,
the business operations and financial condition of the partnership enterprise
to the other partners not participating in the execution of affairs. Proceeds
earned in the execution of the partnership enterprise’s affairs shall belong
to all the partners and losses and civil liability incurred therefrom be
undertaken by all the partners.

Article 28 Partners shall have the right to consult the account book for
finding out about the business operations and financial condition of the
partnership enterprise.

Where partners make decisions on items relevant to the partnership
enterprise according to law or the partnership agreement, unless otherwise
provided for by this Law or by the partnership agreement, the items may, by
decision of all the partners, be decided on a one-person-one-vote basis.

Article 29 Where partners separately execute the partnership enterprise’s
affairs as agreed upon in the partnership agreement or by decision of all the
partners, any of partners may address oppositions to the other partners on the
execution of affairs. If an opposition is addressed, the execution of the
affairs involved shall be suspended. In case of occurrence of a dispute, all
the partners may jointly make a decision thereon.

If the partner(s) authorized to execute the partnership enterprise’s
affairs fail(s) to act in accordance with the partnership agreement or the
decision of all the partners, the other partners may make a decision to
withdraw such authorization.

Article 30 Partners shall not individually or in co-operation with others
engage in businesses competitive with their partnership enterprise.

Partners shall not trade with their partnership enterprise except
otherwise agreed upon in the partnership agreement or with the consent of all
the partners.

Partners shall not engage in any activity damaging the interests of the
partnership enterprise.

Article 31 The execution of the following affairs in a partnership
enterprise shall be subject to the consent of all the partners:

(1) disposing of real estate of the partnership enterprise;

(2) changing the name of the partnership enterprise;

(3) transferring or disposing of intellectual property rights or other
property rights of the partnership enterprise;

(4) applying to the enterprise registration authority for registration of
changes;

(5) offering others a security on behalf of the partnership enterprise;

(6) appointing persons who are not partners to act as managerial
executives of the partnership enterprise; or

(7) dealing with other relevant affairs as agreed upon in the partnership
agreement.

Article 32 Partners shall share profits and losses of the partnership
enterprise in proportion as agreed upon in the partnership agreement. In
absence of stipulations for such proportion in the partnership agreement, each
partner shall share profits and losses equally.

A partnership agreement shall not stipulate for the distribution of all
profits to part of the partners or for the sharing of all losses among part of
the partners.

Article 33 During the period in which the partnership enterprise exists,
partners may, as agreed upon in the partnership agreement or by decision of
all the partners, increase their capital contributions to the partnership
enterprise for the purpose of expanding the business scale or making up losses.

Article 34 The annual or periodic plan detailed for profit distribution
and loss sharing in a partnership enterprise shall be decided through
consultation of all the partners or as agreed upon in the partnership
agreement.

Article 35 Managerial executives appointed by a partnership enterprise
shall perform their duties within the scope of power authorized by the
partnership enterprise.

Managerial executives appointed by a partnership enterprise who exceed the
scope of power authorized by the partnership enterprise in engaging in
business activities, or cause losses to the enterprise intentionally or
through gross negligence shall bear the liability for compensation according
to law.

Article 36 Partnership enterprises shall establish their enterprise
financial and accounting systems in accordance with the provisions of laws and
administrative regulations.

Article 37 Partnership enterprises shall perform the duty of paying taxes
according to the laws.
Chapter V Relations of Partnership Enterprises to Third Parties

Article 38 No restrictions imposed by a partnership enterprise on rights
of a partner to execute the enterprise’s affairs and externally represent the
enterprise may act against a third party who has acted in good faith and has
not been informed of the case.

Article 39 A partnership enterprise shall pay off its debts first out of
all its property. If the property of the partnership enterprise is
insufficient to pay off its due debts, each partner shall bear the unlimited
and joint liability for paying off debts.

Article 40 Where a partnership enterprise pays its debts out of its
property and the debts cannot be paid off in full, each partner shall repay
the difference with his property other than his capital contributions to the
partnership enterprise in proportion as stipulated in the first paragraph of
Article 32 of this Law.

Any partner who overpays his share of the debts to bear the joint
liability shall have the right to claim compensation from the other partners.

Article 41 A creditor of one partner of a partnership enterprise shall
not set off the creditor’s rights against his debts owed to the partnership
enterprise.

Article 42 Where a partner owes personal debts, his creditor shall not
take his place in the partnership enterprise to exercise the partner’s rights.

Article 43 Where a partner’s own property is not sufficient to pay off
his personal debts, the partner may pay the debts out of his proceeds shared
in the partnership enterprise. Alternately, the creditor may apply to a
people’s court for compulsory execution of the property shares of the partner
in the partnership enterprise to pay off the debts.

The other partners shall have priority in acquiring the property shares of
the partner.
Chapter VI Entering into and Withdrawing from Partnerships

Article 44 A person intending to enter into partnership shall obtain the
consent of all original partners and shall conclude a written entering
agreement according to law.

In concluding the entering agreement, the original partners shall inform
the new partner of the business operations and financial condition of the
partnership enterprise.

Article 45 A partner newly entering into the partnership shall enjoy
the equal rights and undertake equal liabilities with the original partners.
If, however, otherwise stipulated in the entering agreement, such stipulations
shall prevail.

The new partner shall undertake joint liability for the debts of the
partnership enterprise incurred before he enters into the partnership.

Article 46 Where the partnership agreement stipulates the period of
operation of the partnership enterprise, partners may withdraw from the
partnership under any of the following circumstances:

(1) Facts resulting in withdrawal from partnership as agreed upon in the
partnership agreement occur;

(2) The withdrawal from partnership has been approved by all the partners;

(3) Facts resulting in difficulties for partners to continue participation
in the partnership enterprise occur; or

(4) The other partners have seriously broken the duties as agreed upon in
the partnership agreement.

Article 47 Where the partnership agreement does not stipulate the period
of operation of the partnership enterprise, partners may withdraw from
partnership without adversely affecting the execution of affairs in the
partnership enterprise and shall inform the other partners 30 days before.

Article 48 A partner unilaterally withdrawing from partnership in
violation of the provisions of the two preceding articles shall compensate for
losses caused to the other partners.

Article 49 A partner shall naturally withdraw from a partnership under
any of the following circumstances:

(1) Where he dies or is declared dead according to law;

(2) Where he is declared a person having no capacity for civil conduct;

(3) Where he loses personal capacity for paying debts; or

(4) Where all his property shares in the partnership enterprise have been
executed by a people’s court.

The withdrawal from partnership as stipulated in the preceding paragraph
shall take effect on the date the fact occurs.

Article 50 A partner may be removed by decision of the other partners
through agreement under any of the following circumstances:

(1) Where he fails to perform the obligation of capital contributions;

(2) Where he intentionally or through gross negligence causes losses to
the partnership enterprise;

(3) Where he acts improperly in executing the affairs of the partnership
enterprise; or

(4) Where other facts occur as agreed upon in the partnership agreement.

A decision on removal of a partner shall be notified in writing to the
removed person. The removal shall take effect in the result of the withdrawal
of the removed person on the date when he receives the notice.

The removed person may, within 30 days from the date receiving the notice
of removal, bring a lawsuit to a people’s court if he refuses to accept the
decision on his removal.

Article 51 Where a partner dies or is declared dead according to law, his
successor who is legally enpost_titled to the property shares in the partnership
enterprise shall, as agreed upon in the partnership agreement or with the
consent of all the partners, have the status of the partner as of the date the
succession begins.

If the legal successor is unwilling to be a partner, the partnership
enterprise shall return the property shares he inherits according to law.

If the legal successor is a minor, his guardian may, with the consent of
the other partners, exercise rights on his behalf till the minor comes of age.

Article 52 Where a partner withdraws from partnership, the other partners
shall clear accounts with him under the financial condition of the partner
enterprise at the time of his withdrawal and shall return his property shares.

In the case of unsettled affairs in a partnership enterprise at the time
of a withdrawal from the partnership, the clearance of accounts shall be
carried out upon settlement of such affairs.

Article 53 The method for returning property shares in the partnership
enterprise to a withdrawing partner shall be stipulated in the partnership
agreement or decided by all the partners. The shares may be returned to the
withdrawing partner in currency or in kind.

Article 54 A withdrawing partner shall bear liability jointly with the
other partners for debts of the partnership enterprise incurred before his
withdrawal from partnership.

Article 55 Where property of a partnership enterprise is less than its
debts at the time of a partner’s withdrawal, the partner shall share the
losses according to the provisions of the first paragraph of Article 32 in
this Law.

Article 56 Where the registered items of a partnership enterprise
change, or need to be renewed, due to entering into or withdrawal from
partnership, a revision of the partnership agreement or for other reasons, the
partnership enterprise shall, within 15 days from the date of making the
decision on changes or the facts occur, apply to the enterprise registration
authority for such registration.
Chapter VII Disbandment and Liquidation of Partnership Enterprises

Article 57 A partnership enterprise shall be disbanded under any of the
following circumstances:

(1) The period of operation as agreed upon in the partnership agreement
expires and partners are unwilling to continue the operations;

(2) The facts resulting in the disbandment as agreed upon in the
partnership agreement occur;

(3) The disbandment has been decided upon by all the partners;

(4) Partners have not formed the statutory number;

(5) The purpose of partnership has been achieved or cannot be achieved as
agreed upon in the partnership agreement;

(6) The business licence has been revoked according to law; or

(7) Other reasons stipulated in laws and administrative regulations for
the disbandment of the partnership enterprise arise.

Article 58 A partnership enterprise shall be liquidated after being
disbanded and shall notify its creditors by notice or announcement.

Article 59 The liquidators of a partnership enterprise after its
disbandment shall be composed of all the partners. If the partners are not all
eligible, one or more partners or a third party may, with the consent of over
half of all the partners and within 15 days after the disbandment of the
enterprise, be appointed as the liquidator(s).

In case of failure to appoint the liquidators within 15 days, partners or
other interested persons may apply to a people’s court for the appointment of
liquidators.

Article 60 Liquidators shall execute the following affairs during
liquidation:

(1) checking up on the property of the partnership enterprise, and
separately formulating a balance sheet and a detailed inventory of property;

(2) disposing of the unsettled affairs relevant to the liquidation of the
partnership enterprise;

(3) paying off taxes owed by the enterprise;

(4) clearing up claims and debts;

(5) disposing of, after paying off the debts of the partnership
enterprise, its remaining property; and

(6) participating in civil lawsuits on behalf of the partnership
enterprise.

Article 61 The property of a partnership enterprise shall, after the
payment of liquidation expenses, be applied to make repayment in the following
order:

(1) wages of employees and labour insurance expenses owed by the
partnership enterprise;

(2) taxes owed by the partnership enterprise;

(3) debts incurred by the partnership enterprise; and

(4) capital contributions returnable to partners.

With regard to the remaining property of a partnership enterprise after
repayment in the order abovementioned, it shall be distributed in proportion
as stipulated in the first paragraph of Article 32 in this Law.

Article 62 Where all property of a partnership enterprise is not
sufficient to pay off its debts at the time of liquidation, the provisions of
Articles 39 and 40 in this Law shall apply.

Article 63 After the disbandment of a partnership enterprise, its
original partners shall

ANIMAL EPIDEMIC PREVENTION LAW OF THE PEOPLE’S REPUBLIC OF CHINA

The Standing Committee of the National People’s Congress

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

No.87

The Animal Epidemic Prevention Law of the People’s Republic of China, adopted at the 26th Meeting of the Standing Committee of the
Eighth National People’s Congress on July 3, 1997, is hereby promulgated, and shall enter into force as of January 1, 1998.

President of the People’s Republic of China Jiang Zemin

July 3, 1997

Animal Epidemic Prevention Law of the People’s Republic of China ContentsChapter I General Provisions

Chapter II Prevention of Animal Epidemics

Chapter III Control and Extermination of Animal Epidemics

Chapter IV Quarantine of Animals and Animal Products

Chapter V Supervision over Animal Epidemic Prevention

Chapter VI Legal Liability

Chapter VII Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is enacted for the purpose of intensifying the administration of animal epidemic prevention, preventing, bringing under control
and exterminating animal epidemics, promoting the development of livestock, fish breeding and poultry raising and protecting human
health.

Article 2

This Law is applicable to animal epidemic prevention activities within the territory of the People’s Republic of China.

For quarantine of entry and exit animals or animal products, the Law of the People’s Republic of China on the Entry and Exit Animal
and Plant Quarantine shall apply.

Article 3

“Animal” referred to in this Law means livestock, poultry and other animals raised by man or caught legally.

“Animal product” referred to in this Law means animals’ raw hides, hairs, semen, embryos and breeder eggs as well as non-processed
products such as trunks, grease, viscera, blood, down, bones, horns, heads and hoofs.

“Animal epidemic” referred to in this Law means animal infectious diseases and parasitic diseases.

“Animal epidemic prevention” referred to in this Law includes prevention, control and extermination of animal epidemics as well as
quarantine of animals and animal products.

Article 4

Quarantine inspection and supervision shall be conducted pursuant to this Law over trunks, heads and viscera of slaughtered animals.
Those up to standards for foods after quarantine inspection shall be subjected to hygienic inspection and supervision in accordance
with the provisions of the Food Hygiene Law of the People’s Republic of China.

Article 5

The state institutes a policy of focusing on prevention of animal epidemics.

Article 6

The animal husbandry and veterinary administrative department under the State Council shall be in charge of animal epidemic prevention
throughout the country.

The animal husbandry and veterinary administrative departments under local people’s governments at or above the county level shall
be in charge of animal epidemic prevention within their respective administrative areas.

The supervising agencies for animal epidemic prevention under people’s governments at or above the county level shall execute animal
epidemic prevention and supervision on animal epidemic prevention.

The supervising agencies for animal epidemic prevention in the armed forces shall be responsible for epidemic prevention for active-duty
animals in the armed forces and animals raised by the armed forces for their own use.

Article 7

People’s governments at all levels shall strengthen the leadership over animal epidemic prevention.

Article 8

The state encourages and supports scientific research on animal epidemic prevention, spreads advanced achievements of scientific research,
popularizes scientific knowledge of animal epidemic prevention, and improves the level of animal epidemic prevention.

Article 9

Any unit or individual that has made achievements or contributions in animal epidemic prevention or scientific research on animal
epidemic prevention shall be rewarded by the people’s government or the animal husbandry and veterinary administrative department.

Chapter II Prevention of Animal Epidemics

Article 10

In the light of seriousness of damage caused by animal epidemics to the breeding production and human health, animal epidemics under
the control by this Law are composed of three classes:

(1)

Epidemics of Class I refer to those which cause serious damage to humans and animals and need to take urgent, rigorous measures to
compulsorily prevent, bring under control or exterminate them.

(2)

Epidemics of Class II refer to those which can cause great economic losses and need to take strict measures to bring under control
or exterminate them and avoid their spread.

(3)

Epidemics of Class III refer to those which are so common and so frequently occur that great economic losses may be caused and control
and purifying measures are required.

A detailed catalogue of epidemics of the three classes mentioned in the preceding paragraph shall be fixed and published by the animal
husbandry and veterinary administrative department under the State Council.

Article 11

The animal husbandry and veterinary administrative department under the State Council shall formulate the national plan for animal
epidemic prevention.

The animal husbandry and veterinary administrative department under the State Council shall, in the light of animal epidemic situation
abroad and at home and in accordance with the requirements for protection of the breeding production and human health, formulate
and publish in time measures for animal epidemic prevention.

The state practises a system of immunization planning for execution of compulsory immunization against animal epidemics which cause
serious damage to the breeding production and human health. A catalogue of animal epidemics subjected to compulsory immunization
shall be formulated and published by the animal husbandry and veterinary administrative department under the State Council.

For other animal epidemics than those subjected to compulsory immunization, the animal husbandry and veterinary administrative departments
under local people’s governments at or above the county level shall formulate prevention plans and report them to the people’s governments
at the same level for approval and implementation.

Article 12

The state should take measures to prevent and exterminate animal epidemics which cause serious damage to the breeding production and
human health.

Medicine, biological products or other relevant materials needed in prevention and extermination of animal epidemics shall be reserved
in a proper quantity and shall be included in the plan for national economy and social development.

Article 13

The supervising agencies for animal epidemic prevention shall strengthen animal epidemic prevention by conducting popularization and
education, technical advice, technical training and consultancy services and shall organize the implementation of plans for immunization
against animal epidemics.

Animal epidemic prevention organs in townships, nationality townships and towns shall, under the guidance of the supervising agencies
for animal epidemic prevention, organize the prevention of animal epidemics.

Article 14

Units and individuals that engage in raising or marketing of animals, or production or marketing of animal products shall, pursuant
to this Law and the relevant state provisions, complete planned immunization against and prevention of animal epidemics, and shall
accept the monitoring and supervision from the supervising agencies for animal epidemic prevention.

Article 15

Any animal farm should exterminate animal epidemics in time. Stud stock and breeding poultry shall be kept healthy up to the standards
set by the state.

Article 16

Means of transport, padding materials and packing materials for animals or animal products shall meet the requirements for animal
epidemic prevention set by the animal husbandry and veterinary administrative department under the State Council.

Animals infected with epidemic diseases and their excrement, products made from animals infected with epidemic diseases, and carcasses
of animals which died of illness or died due to an unidentified cause must be disposed of according to the relevant provisions of
the animal husbandry and veterinary administrative department under the State Council and shall not be dealt with at will.

Article 17

The storage, use and transportation of animal-borne pathogenic microorganisms shall conform to the management systems and operational
rules set by the state.

The transportation of animal epidemic materials for special need in scientific research, teaching and epidemic prevention shall conform
to the relevant state provisions.

Any unit engaging in scientific research on animal epidemics shall, according to the relevant state provisions, conduct strict management
of experimental animals in order to prevent the spread of animal epidemics.

Article 18

Marketing of any animal or animal product in the following categories shall be prohibited:

(1)

those related to an animal epidemic disease occurring in a cordoned-off epidemic area;

(2)

those susceptible to an epidemic disease in an epidemic area;

(3)

those subjected to quarantine inspection according to law but failing to undergo or pass quarantine inspection;

(4)

those infected with an epidemic disease;

(5)

those which died of illness or died due to an unidentified cause; or

(6)

those not listed above but failing to conform to the state provisions regarding animal epidemic prevention.

Chapter III Control and Extermination of Animal Epidemics

Article 19

The animal husbandry and veterinary administrative department under the State Council shall exercise unified control over and publish
animal epidemic information nationwide, or may, when necessary, authorize the animal husbandry and veterinary administrative departments
under people’s governments of provinces, autonomous regions and municipalities directly under the Central Government to publish animal
epidemic information within their own administrative regions.

Article 20

Any unit or individual that finds an animal(s) having an epidemic disease or suspect of having an epidemic disease shall in time report
to the local supervising agency for animal epidemic prevention. The latter shall promptly take measures and report the case to the
higher authority according to the relevant state provisions.

No unit or individual may conceal, falsely report or hinder another person from reporting animal epidemic information.

Article 21

In the case of an animal epidemic of Class I, the animal husbandry and veterinary administrative department under the local people’s
government at or above the county level shall dispatch its personnel to the scene forthwith to delimit the epidemic point, the epidemic
area and the threatened area, collect epidemic materials, investigate into the epidemic source, report in time to the people’s government
at the same level for a decision of cordoning off the epidemic area, and report the epidemic situation and the related information
level by level to the animal husbandry and veterinary administrative department under the State Council.

The local people’s government at or above the county level shall organize departments and units concerned without delay to take compulsory
measures for control and extermination of the animal epidemic such as isolation, massacre, destruction, disinfection and emergency
immunization vaccination to exterminate the epidemic disease promptly, and shall inform the neighbouring areas of the case.

During the sanitary cordon, animals or animal products having the epidemic disease or suspect of having the epidemic disease are prohibited
from moving out of the epidemic area, and animals coming from outside the epidemic area shall be prohibited from entering the epidemic
area. As required for the extermination of the animal epidemic, persons, means of transport and relevant articles which leave or
enter the cordoned-off area shall be disinfected and imposed upon other restrictions.

Where the epidemic area involves two or more administrative regions, the decision on the cordon of the epidemic area shall be made
by the common people’s government at the next higher level than the concerned administrative regions, or jointly by the people’s
governments at the next higher level than the concerned administrative regions.

Article 22

In the case of an animal epidemic of Class II, the animal husbandry and veterinary administrative department under the local people’s
government at or above the county level shall delimit the epidemic point, the epidemic area and the threatened area.

The local people’s government at or above the county level shall, when necessary, organize departments and units concerned to take
control and extermination measures such as isolation, massacre, destruction, disinfection, emergency immunization vaccination and
imposition of restrictions upon entering and leaving of the epidemic area by animals, animal products and relevant articles that
are susceptible to the epidemic disease.

Article 23

The disestablishment of the epidemic point, the epidemic area and the threatened area and the lifting of the cordon of the epidemic
area shall be announced by the organ that made the original decision.

Article 24

In the case of an animal epidemic of Class III, the people’s government at the county or township level shall organize the prevention
and purification of the epidemic according to the plans for animal epidemic prevention and the provisions of the animal husbandry
and veterinary administrative department under the State Council.

Article 25

The provisions of Article 21 in this Law shall apply if an animal epidemic of Class II or Class III spreads violently.

Article 26

For the purpose of control or extermination of major animal epidemic situations, the supervising agencies for animal epidemic prevention
may dispatch their personnel to the inspecting stations having been set up according to law by the locality to undertake supervision
and inspection. When necessary, provisional supervising and inspecting stations for animal epidemic prevention may be set up subject
to the approval of the people’s government of the province, autonomous region and municipality directly under the Central Government
in order to perform supervision and inspection.

Article 27

In the case of an epidemic disease contracted commonly by both human beings and livestock, the animal husbandry and veterinary administrative
department, the public health administrative department and other units concerned shall exchange information on the epidemic situation
and shall take control and extermination measures in time.

Article 28

Any unit or individual within an epidemic area shall observe the stipulations of the people’s government at or above the county level
and its animal husbandry and veterinary administrative department for the control and extermination of the animal epidemic.

Article 29

In the case of an animal epidemic, transportation departments such as civil aviation, railways, highways and waterways shall give
priority to the transportation of personnel and related materials for control and extermination of the epidemic situation, and post
and telecommunications departments shall deliver and transmit reports on the epidemic situation in time.

Chapter IV Quarantine of Animals and Animal Products

Article 30

Supervising agencies for animal epidemic prevention shall, in accordance with the national standards, the trade standards and quarantine
measures set by the animal husbandry and veterinary administrative department under the State Council, and in the light of the objects
to be quarantined, carry out the quarantine of animals and animal products.

Article 31

Supervising agencies for animal epidemic prevention shall have quarantine officers responsible for the quarantine of animals and animal
products. Quarantine officers shall possess the necessary professional skills. The detailed measures for qualifications and issuance
of qualification certificates shall be formulated by the animal husbandry and veterinary administrative department under the State
Council.

The animal husbandry and veterinary administrative departments at or above the county level shall step up the training, evaluation
and administration of quarantine officers. No quarantine officer may be permitted to take up the post for quarantine unless he has
obtained the corresponding qualification certificate.

Quarantine officers shall observe quarantine rules in carrying out quarantine and bear liability for the quarantine results.

Article 32

The state exercises slaughter at designated points and centralized quarantine of livestock like pigs and other animals.

The people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall set categories
of livestock and scopes of regions within their respective administrative regions to practise slaughter at designated points and
centralized quarantine. Specific slaughterhouses (or points) shall be determined by the people’s governments in cities (including
cities without districts) and counties after studies by the departments concerned organized by them.

Supervising agencies for animal epidemic prevention shall carry out quarantine of animals slaughtered in slaughterhouses (or points)
and affix to slaughtered animals their uniform stamps for having been inspected. Slaughter quarantine in slaughterhouses and joint
meat processing factories determined subject to consultation between the animal husbandry and veterinary administrative department
and the commodity circulation department under the State Council shall be handled pursuant to the relevant provisions of the State
Council and shall be under supervision according to law.

Article 33

For quarantine of livestock like pigs and other animals slaughtered by farmers themselves for their own use, the people’s governments
of provinces, autonomous regions and municipalities directly under the Central Government shall formulate control measures.

Article 34

Supervising agencies for animal epidemic prevention shall collect fees for their legal quarantine inspections according to the provisions
of the financial and price control departments under the State Council and shall not collect other additional fees or repeat charging
for the same item of quarantine.

Article 35

Supervising agencies for animal epidemic prevention shall not engage in business activities.

Article 36

Those who intend to introduce breeding animals and their semen, embryos and breeder eggs from another place in the country shall first
apply to the supervising agency for animal epidemic prevention of the locality for examination and approval of quarantine and shall
be subject to quarantine inspection.

Article 37

Wild animals having been caught by man which are likely to spread animal epidemics shall not be sold and transported before passing
quarantine inspection by the supervising agency for animal epidemic prevention in the place where the wild animals are caught or
where the wild animals are to be received.

Article 38

If any animal or animal product has passed quarantine inspection, the supervising agency for animal epidemic prevention shall issue
a quarantine certificate and, at the same time for any animal product, affix thereto an inspection mark used by the supervising agency
for animal epidemic prevention or seal it with the inspection mark.

If any animal or animal product has not passed quarantine inspection, the owner shall conduct disinfection for epidemic prevention
or take other measures for innocent treatment. If innocent treatment cannot be carried out, the animal or animal product must be
destroyed.

Article 39

Animals can be sold, transported, put on display, shows or contests on the strength of the quarantine certificate. Animal products
can be sold or transported on the strength of the quarantine certificate and the inspection mark.

Article 40

The quarantine certificate shall not be transferred, altered or forged.

The format and control measures for the quarantine certificate shall be formulated by the animal husbandry and veterinary administrative
department under the State Council.

Chapter V Supervision over Animal Epidemic Prevention

Article 41

Supervising agencies for animal epidemic prevention shall conduct supervision on the work of animal epidemic prevention according
to law.

In performing duties of monitoring and supervision, supervising agencies for animal epidemic prevention may collect samples of animals
or animal products, seize them for inspection or make sample inspections, conduct inspections retroactively or re-inspect animals
or animal products with no quarantine certificates, and may isolate, seal up or dispose of animals having epidemic diseases or suspected
of having epidemic diseases or animal products contaminated by epidemic diseases.

Article 42

Any consignor of animals or animal products to be transported by railways, highways, waterways or by air must provide the quarantine
certificate in consigning for shipment. Any consignee must undertake the shipment on the strength of the quarantine certificate.

Supervising agencies for animal epidemic prevention shall have the right to supervise and inspect the transportation of animals and
animal products according to law.

Article 43

Functionaries of animal epidemic prevention supervision shall produce their certificates in performing duties of supervision and inspection.
Any unit or individual concerned shall lend support and cooperation to them.

Supervising agencies for animal epidemic prevention and their staff shall not collect fees for supervision and inspection of animal
epidemic prevention.

Article 44

Selecting sites and designing for works of animal farms, warehouses, slaughterhouses, joint meat processing factories, other designated
slaughterhouses or points and refrigeration sites for animal products shall conform to the requirements of animal epidemic prevention
stipulated by the animal husbandry and veterinary administrative department under the State Council.

Article 45

Raising and marketing of animals or production and marketing of animal products by animal farms, slaughterhouses, joint meat processing
factories and other designated slaughterhouses (or points) shall conform to the requirements for animal epidemic prevention stipulated
by the animal husbandry and veterinary administrative department under the State Council, and shall be subject to the supervision
and inspection of supervising agencies for animal epidemic prevention.

Diagnosis and treatment of animals shall be engaged in by qualified professional technicians who possess the permit for diagnosis
and treatment of animals issued by the animal husbandry and veterinary administrative departments.

Persons suffering from epidemic diseases contracted commonly by both human beings and livestock shall not directly engage in diagnosis
and treatment of animals, raising and marketing of animals or production and marketing of animal products.

Chapter VI Legal Liability

Article 46

Any violator of the provisions of this Law who commits any of the following acts shall be given a warning by the supervising agency
for animal epidemic prevention. In case of refusal by the violator to make corrections, the supervising agency for animal epidemic
prevention shall deal with the case according to law on the part of the violator who shall pay the expense therefor.

(1)

failing to vaccinate or disinfect for immunization timely animals he raises or markets as required by the compulsory immunization
plan against animal epidemics and the relevant state provisions;

(2)

failing to clean and disinfect means of transport, padding materials or packing materials for animals and animal products according
to the relevant state provisions; or

(3)

failing to dispose of animals infected with epidemic diseases and their excrement, products made from animals infected with epidemic
diseases, and carcasses of animals which died of illness or died due to an unidentified cause according to the relevant state provisions.

Article 47

Any violator of the provisions of Article 17 of this Law who stores, uses or transports animal-borne pathogenic microorganisms, or
transports animal epidemic materials shall be given a warning and may be concurrently fined not more than RMB 2,000 yuan by the supervising
agency for animal epidemic prevention.

Article 48

Any violator of the provisions of this Law who markets any of the following animals or animal products shall be ordered by the supervising
agency for animal epidemic prevention to stop the business operations and, with the illegal gains and animals and animal products
having not yet been sold confiscated, to take effective measures to withdraw animals and animal products having been sold. If the
circumstances are serious, the offender may be concurrently fined less than five times of the illegal gains.

(1)

those related to an animal epidemic occurring in a cordoned-off epidemic area;

(2)

those susceptible to an epidemic in an epidemic area;

(3)

those subjected to quarantine inspection according to law but failing to pass quarantine inspection;

(4)

those infected with an epidemic;

(5)

those which died of illness or died due to an unidentified cause; or

(6)

those not listed above but failing to conform to the state provisions regarding animal epidemic prevention.

Article 49

Any violator of the provisions of this Law who markets animals or animal products subjected to quarantine inspection according to
law but without quarantine certificates shall be ordered, with the illegal gains confiscated, to stop the business operations by
the supervising agency for animal epidemic prevention. Animals or animal products having not yet been sold shall undergo quarantine
inspection retrospectively according to law and be dealt with according to the provisions of Article 38 of this Law.

Article 50

Any violator of the provisions of Article 42 of this Law who fails to implement the provisions for the shipment of animals or animal
products on the strength of the quarantine certificate shall be given a warning and ordered to make corrections by the supervising
agency for animal epidemic prevention. If the circumstances are serious, the consignor and the consignee may be separately fined
less than three times of the freight.

Article 51

If anyone transfers, alters or forges the quarantine certificate, the supervising agency for animal epidemic prevention shall confiscate
the illegal gains and withdraw the quarantine certificate. Anyone who transfers or alters the quarantine certificate shall be concurrently
fined not less than RMB 2,000 yuan and not more than RMB 5,000 yuan; if the illegal gains exceed RMB 5,000 yuan, the offender shall
be concurrently fined not less than the amount of the illegal gains and not more than three times of that amount. Anyone who forges
the quarantine certificate shall be fined not less than RMB 10,000 yuan and not more than RMB 30,000 yuan; if the illegal gains exceed
RMB 30,000 yuan, the offender shall be concurrently fined not less than the amount of the illegal gains and not more than three times
of that amount. If a crime has been constituted, the offender shall be investigated for criminal responsibility according to law.

Article 52

If a unit engaging in raising or marketing of animals, or production or marketing of animal products, in violation of the provisions
of the first paragraph of Article 45 of this Law, fails to conform to the requirements for animal epidemic prevention, the supervising
agency for animal epidemic prevention shall give a warning and order it to make corrections. If it refuses to make corrections, the
offender shall be fined not less than RMB 10,000 yuan and not more than RMB 30,000 yuan.

Article 53

If a unit, in violation of the provisions of this Law, conceals, falsely reports or hinders another person to report animal epidemic
information, the supervising agency for animal epidemic prevention shall give a warning and concurrently impose a fine not less than
RMB 2,000 yuan and not more than RMB 5,000 yuan. The person in charge directly responsible and other persons directly responsible
shall be imposed administrative sanctions according to law.

Article 54

Any violator of the provisions of this Law who evades quarantine inspection, resulting in a serious animal epidemic which causes great
losses to the breeding production or does serious harm to human health, shall be investigated for criminal responsibility according
to law.

Article 55

If any animal quarantine officer, in violation of the provisions of this Law, issues the quarantine certificate and affixes the inspection
mark on animals or animal products having not undergone quarantine inspection or having not passed quarantine inspection, the unit
to which he belongs or the competent authority at the next higher level shall give him a demerit or disqualify him as an animal quarantine
officer. If the circumstances are serious, the offender shall be discharged from his office.

If the illegal act mentioned in the preceding paragraph causes damage to the interested party, the unit to which the animal quarantine
officer belongs shall bear the liability for compensation.

Article 56

Any supervisor of animal epidemic prevention who abuses powers, neglects duties, commits malpractices for selfish gains, conceals
or delays the report on epidemic situations, or forges quarantine inspection results, if a crime has been constituted, shall be investigated
for criminal responsibility according to law. If a crime has not been constituted, the offender shall be imposed administrative sanctions.

Article 57

Whoever hinders a supervisor of animal epidemic prevention in the performance of duties according to law shall, if a crime has been
constituted, be investigated for criminal responsibility according to law. If a crime has not been constituted, the offender shall
be imposed administrative penalty for public security violations according to law.

Chapter VII Supplementary Provisions

Article 58

This Law shall enter into force as of January 1, 1998.

The Standing Committee of the National People’s Congress
1997-07-03

1...8910...212 Page 9 of 212

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CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING MAINTAINING CONTACT WITH COMPANIES BY MINISTRIES AND COMMISSIONS

CURRENT CATALOGUE OF KEY INDUSTRIES, PRODUCTS AND TECHNOLOGIES THE DEVELOPMENT OF WHICH IS ENCOURAGED BY THE STATE (PROVISIONAL)

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MEASURES OF THE PEOPLE’S REPUBLIC OF CHINA FOR THE ADMINISTRATION OF PARTNERSHIP ENTERPRISE REGISTRATION

PARTNERSHIP ENTERPRISES

ANIMAL EPIDEMIC PREVENTION LAW OF THE PEOPLE’S REPUBLIC OF CHINA

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