OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION ABOUT HOW TO DEAL WITH THE TAX ISSUES CONCERNING THE INCOMES OBTAINED BY FOREIGN-FUNDED ENTERPRISES ENGAGING IN REAL ESTATE DEVELOPMENT FROM LEASEBACK BUSINESS

Official Reply of the State Administration of Taxation about How to Deal With the Tax Issues Concerning the Incomes Obtained by Foreign-funded
Enterprises Engaging in Real Estate Development from Leaseback Business

Guo Shui Han [2007] No.603

The State Taxation Bureau of Hunan Province:

We have received your Request for Instructions on Tax Issues Concerning the Incomes Obtained by Enterprises Engaging in Real Estate
Development and Operation from Leaseback Business (Xiang Guo Shui Fa [2006] No.106). We hereby make a reply as follows:

In case any foreign-funded enterprise that engages in real estate development and operation transfers any estate such as premise or
building, etc, as built and developed by itself by means of distribution, and then leases back the estate from the buyer, it shall
split the leaseback business into distributing business and leasing business, and handle the tax affairs of each business respectively
whatever leasing mode it takes. The balance between the income as obtained by the enterprise from distributing or transferring the
post_title to the estate and the related cost and expenses on the post_title to the transferred estate shall be counted into the taxable amount
of income in the current period as the business profits and losses in the current period.

In case any enterprise transfers one or more of the following rights and interests or risks of assets via leaseback business, it shall
be regarded as that the enterprise has transferred part or whole post_title to the estate no matter whether the formalities for the alteration
of legal ownership of the estate (such as estate rights registration or ownership transfer) has been handled:

(1)

rights and interests to obtaining the income from the appreciation of fixed assets;

(2)

assuming the losses as incurred from various kinds of damage (including physical damage and depreciation);

(3)

rights and interests to the possession of assets;

(4)

rights and interests to using assets during the period of continued existence of the assets in the future;

(5)

rights and interests to disposing the assets.

With respect to any leaseback transactions of estate between an enterprise and any of its affiliated parties, the provisions of this
Reply, as well as related taxation administrative provisions on business contact between affiliated enterprises shall be applicable.

Where overdue tax or tax refund is involved when handling tax affairs under the provisions of this Reply, it shall be handled pursuant
to the related provisions of the Law of the People’s Republic of China on the Administration of Tax Collection and the Detailed Rules
for its implementation.

State Administration of Taxation

May 31, 2007

State Administration of Taxation
2007-05-31

INTERPRETATION OF THE SUPREME PEOPLE’S COURT ON SOME MATTERS ABOUT THE APPLICATION OF LAW IN THE TRIAL OF CIVIL CASES INVOLVING UNFAIR COMPETITION

Announcement of the Supreme People’s Court

Fa Shi [2007] No. 2

The Interpretation of the Supreme People’s Court on Some Matters about the Application of Law in the Trial of Civil Cases Involving
Unfair Competition, has been adopted by the 1412th meeting of the Judicial Committee of the Supreme People’s Court on December 30,
2006. It is hereby promulgated and shall enter into force as of February 1, 2007.
The Supreme People’s Court

January 12, 2007

Interpretation of the Supreme People’s Court on Some Matters about the Application of Law in the Trial of Civil Cases Involving Unfair
Competition

(Adopted at the 1412th meeting of the Judicial Committee of the Supreme People’s Court on December 30, 2006 )

For the purpose of correctly hearing the civil cases involving unfair competition, lawfully protecting the legitimate rights and interests
of business operators, and maintaining the order of market competition, the present Interpretation is constituted in accordance with
the General Principles of the Civil Law of the People’s Republic of China, the Anti-unfair Competition Law of the People’s Republic
of China, and the Civil Procedure Law of the People’s Republic of China and in combination with the experiences and actual situation
of the trial practice.

Article 1

Well-known commodities as stipulated in Subparagraph (2) of Article 5 of the Anti-unfair Competition Law refer to those commodities
that have certain market popularity within the territory of China and are known by the public concerned. The people’s court shall
take into account the time, region, volume and targets for selling such commodities, the duration, degree and scope for any promotion
of such commodities, as well as the protection situation as well-known commodities, and make comprehensive judgments when affirming
well-known commodities. The burden of proof for the market popularity of commodities shall be assumed by the plaintiff.

In case an identical or similar name, package or ornament with that typical to a well-known commodity is used within a different region,
it will not constitute the unfair competition as stipulated in Subparagraph (2) of Article 5 of the Anti-unfair Competition Law
if the later user can prove its good faith in using it. Where the sources of commodities of the earlier user are confused due to
the later business activities conducted within the same zone, the people’s court shall give support when the earlier user pleads
the court to order the later to add other signs to make a distinction on the sources of its commodities.

Article 2

In case the name, package and ornament of commodities is the notable characteristics for distinguishing the source of commodities,
it shall be deemed as the typical name, package and ornament as stipulated in Subparagraph (2) of Article 5 of the Anti-unfair Competition
Law. In case of any of the following circumstances, the people’s court shall not ascertain them as the typical name, package and
ornament of well-known commodities:

(1)

the commonly-used name, graphics or model of the commodities;

(2)

the name of the commodities that just directly specifies the quality, major raw materials, functions, utilities, weight, quantity
or any other characteristic of the commodities;

(3)

the shape produced due to the nature of the commodities, the shape of the commodities that should be produced for the purpose of obtaining
technical effects, as well as the shape that produces substantial value to the commodities; or

(4)

other name, package or ornament of the commodities that has no notable characteristic.

In case the notable characteristic occurs upon use under any circumstance as stipulated in Subparagraph (1), (2) or (4) of the preceding
paragraph, it can be regarded as a typical name, package and ornament.

In case the typical name, package or ornament of a well-known commodity includes the name, graphics, or model common to the said commodity
in question, or directly indicates the quality, major raw materials, functions, utilities, weight, quantity or any other characteristic
of the said commodity, or involves the name of the place, if it is used by any other party for narrating commodities impartially,
it shall be deemed that an unfair competition is not constituted.

Article 3

In case the ornament of the business place, the pattern of business appliances, or the clothes of operating personnel, and etc. constitutes
an overall business image with a unique style, it may be ascertained as the ornament as stipulated in Subparagraph (2) of Article
5 of the Anti-unfair Competition Law.

Article 4

In case of any confusion concerning the source of a commodity in the public concerned, including the misapprehension of such a typical
relationship as licensed use or affiliation with the business operator of a well-known commodity, it shall be regarded as causing
the confusion with the well-known commodity of someone else, and making the consumers mistake it to be a well-known commodity as
stipulated in Subparagraph (2) of Article 5 of the Anti-unfair Competition Law.

In case any identical name, package or ornament of a commodity or the one that is no difference with the forged one in terms of visual
effect is used on the same commodity, it shall be deemed as sufficiently to cause the confusion with the well-known commodity of
someone else.

The identity or similarity with the typical name, package or ornament of a well-known commodity may be ascertained with reference
to the principles and methods for judging identical or similar trademarks.

Article 5

In case the name, package or ornament of a commodity is a sign that can not be used as a trademark as stipulated in Paragraph 1 of
Article 10 of the Trademark Law, if the party concerned applies to the court for protection in accordance with Subparagraph (2)
of Article 5 of the Anti-unfair Competition Law, the people’s court shall not give support.

Article 6

A name of any enterprise registered by the enterprise registration competent authority, or a name of any foreign enterprise used
within the territory of China for commercial use shall be ascertained as an enterprise name as stipulated in Subparagraph (3) of
Article 5 of the Anti-unfair Competition Law. A shop name in the name of enterprise that has certain market popularity and is acknowledged
by the public concerned may be ascertained as a enterprise name as stipulated in Subparagraph (3) of Article 5 of the Anti-unfair
Competition Law.

The name of any natural person used in the business operation of commodities shall be ascertained as a name as stipulated in Subparagraph
(3) of Article 5 of the Anti-unfair Competition Law. The pen name or stage name of any natural person that has certain market popularity
and is acknowledged by the public concerned may be ascertained as a name as stipulated in Subparagraph (3) of Article 5 of the Anti-unfair
Competition Law.

Article 7

As regards the commercial use within the territory of China that includes the use of the typical name, package or ornament of a well-known
commodity, or use of the enterprise post_title or name for a commodity, commodity packages or commodity exchange documents, or for advertisements,
exhibitions or any other commercial activities, it shall be ascertained as the use as stipulated in Subparagraphs (2) and (3) of
Article 5 of the Anti-unfair Competition Law.

Article 8

In case of any of the following acts committed by a business operator, if it is sufficient to cause the misapprehension of the public
concerned, it may be ascertained as a false or misleading promotion as stipulated in Paragraph 1 of Article 9 of the Anti-unfair
Competition Law:

(1)

implementing biased or contrastive promotion of commodities;

(2)

implementing the promotion of commodities by adopting unsure scientific viewpoints or phenomena as the facts for final conclusions;
or

(3)

implementing the promotion of commodities by way of using vague language or other deceptive methods.

In case the commodities are publicized by way of obviously exaggerating, if it is insufficient to cause the misapprehension of the
public concerned, it shall not be ascertained as the false or misleading promotion.

The people’s court shall ascertain the false or misleading promotion in light of daily life experiences, the general attention of
the public concerned, the fact misunderstood, as well as the reality of the promotion objects, and etc..

Article 9

If the related information may not be aware of by the related personnel in the field therefrom and is difficult to be obtained, it
shall be ascertained as unknown to the public as stipulated in Paragraph 3 of Article 10 of the Anti-unfair Competition Law.

In case of any of the following circumstances, it may be ascertained that the related information is not unknown to the public:

(1)

It is the common sense or industrial practice as known by people in the related technical or economic field;

(2)

It only involves the simple combination of dimensions, structures, materials and components of products, and can be directly obtained
by observing the products by the public concerned after the products enter into the market;

(3)

It has been publicly revealed on any publication or any other mass medium;

(4)

It has been publicized by reports or exhibits;

(5)

It can be obtained through other public channels; or

(6)

It can be easily obtained with no price.

Article 10

In case the related information has practical or potential commercial value, and can be used for enhancing the competitive advantage
for the obligee, it shall be ascertained as capable of bringing about benefits to the obligee, and having practical applicability
as stipulated in Paragraph 3 of Article 10 of the Anti-unfair Competition Law.

Article 11

If the obligee takes proper protection measures that is suitable for the commercial value or any other specific circumstance for
the purpose of avoiding information divulgence, it shall be deemed as confidentiality measures as stipulated in Paragraph 3 of Article
10 of the Anti-unfair Competition Law.

The people’s court shall ascertain whether the obligee has taken confidentiality measures in accordance with the features of the related
information carrier, the willingness for keeping secret of the obligee, the identifiability degree of the confidentiality measures,
the difficulty for others to obtain it by justifiable methods and other elements.

In case of any of the following normal circumstances that is sufficient to prevent the divulge of any classified information, it shall
be ascertained that the obligee has taken the confidentiality measures:

(1)

To limit the access scope of the classified information, and the contents shall only be notified to related personnel that must be
aware of the information;

(2)

To take such preventive measures as locking the carrier of the classified information up;

(3)

To tag a confidentiality sign on the carrier of classified information;

(4)

To adopt passwords or codes on the classified information;

(5)

To conclude a confidentiality agreement;

(6)

To limit visitors to the classified machinery, factory, workshop or any other place or bring forward any confidentiality request;
or

(7)

Any other reasonable measure for guaranteeing the confidentiality of information.

Article 12

As regards obtaining business secrets through development and research by itself or reverse engineering, it shall not be ascertained
as an infringement upon business secrets as stipulated in Subparagraphs (1) and (2) of Article 10 of the Anti-unfair Competition
Law.

Reverse engineering referred to in the preceding paragraph means to obtain the related technical information on the products in technical
methods by way of disassembling, mapping or analyzing the products gotten from public channels. Any party concerned that knows the
business secrets of someone else by unjustifiable methods and then claims its acquisition as lawful in excuse of reverse engineering
shall not be supported.

Article 13

The name list of clients among business secrets generally refers to the special client information that is different from related
public information, including the name, address, contact information, business habits, intent, and contents of the clients and comprise
the name roll of clients that collects lots of customers as well as the specific customers that have kept a long-term and stable
transaction relationship.

In case a client develops market transactions with the entity due to relying on an employee thereof, after this employee leaves his
post, if it can be proved that this client voluntarily chooses to perform market transactions with the said employee or the new entity
he works for, it shall be ascertained that no unfair methods has been adopted, except it is otherwise stipulated between this employee
and the former entity.

Article 14

As regards any party concerned that claims that someone else has infringed upon its business secret, it shall be responsible for
providing proof to verify that its business secret satisfies the statutory requirements, the information of the other party concerned
is identical or substantially identical with its business secret, and the other party concerned has adopted unfair methods. Among
others, the evidence for proving that its business secret satisfies the statutory requirements shall comprise the carrier, specific
contents, and commercial value of this business secret as well as the specific confidentiality measures taken for this business secret.

Article 15

If the licensee of the license contract for sole use of the business secret raises an action as regards infringement upon any business
secret, it shall be accepted by the people’s court in accordance with related laws.

If the licensee of the license contract for exclusive use, jointly with the obligee, raises an action, or the licensee raises an action
independently under the circumstance that the obligee may not do so, it shall be accepted by the people’s court in accordance with
the related laws.

If the licensee of the license contract for common use, jointly with the obligee, raises an action, or the licensee raises an action
independently upon authorization of the obligee in written form, it shall be accepted by the people’s court in accordance with the
related laws.

Article 16

When the people’s court make an adjudication of the civil liability to stop the infringement on any business secret, the time for
stopping the infringement shall generally be prolonged to the time when this business secret has been aware of by the general public.

In case the time for stopping the infringement arbitrated in accordance with the preceding paragraph is clearly unacceptable, if it
is under the circumstance that the competitive advantage of the obligee to this business secret is protected, the infringer may be
ordered to stop using this business secret within a certain period or scope.

Article 17

As regards determining the damages for the acts infringing on business secrets as stipulated in Article 10 of the Anti-unfair Competition
Law, it may be performed with reference to the methods of determining damages for patent infringements, and as regards determining
the damages for the unfair competition acts as stipulated in Article 5 , 9 or 14 of the Anti-unfair Competition Law, it may be performed
with reference to the methods of determining damages for infringing upon registered trademark rights.

If any business secret has been aware of by the general public due to any tort, the damages shall be determined subject to the commercial
value of this business secret. The commercial value of this business secret shall be ascertained in light of such elements as the
research and development costs, the income from implementing this business secret, possible benefits, and the time for maintaining
the competitive advantage, and etc..

Article 18

The power to adjudicate the civil cases of the first instance concerning the unfair competition as stipulated in Article 5 , 9, 10
or 14 of the Anti-unfair Competition Law shall generally remain with the intermediate people’s court.

Each higher people’s court may determine some grass-roots people’s courts to accept the civil cases of the first instance concerning
unfair competition in accordance with the actual situation of its jurisdiction and upon approval of the Supreme People’s Court, and
those grass-roots people’s courts that have been approved to hear civil cases regarding intellectual property may continue the acceptance
of cases concerning unfair competition.

Article 19

The present Interpretation shall enter into force as of February 1, 2007.

The Supreme People’s Court
2007-01-12

ANNOUNCEMENT NO. 6, 2007 OF MINISTRY OF COMMERCE ON PUBLICIZING THE LIST OF THE MOST COMPETITIVE BRANDS IN 2006

Announcement No. 6, 2007 of Ministry of Commerce on Publicizing the List of The Most Competitive Brands in 2006

[2007] No. 6

Under the Measures for Evaluating and Protecting Brands in the Commercial Field (for Trial Implementation), the list of The Most Competitive
Brands in 2006 is hereby promulgated by virtue of enterprises’ voluntary declaration, primary examination and recommendation by each
province, autonomous region, municipality directly under the Central Government, city specifically designated in the state plan and
Xinjing Production and Construction Corp. and each guild and chamber of commerce, and comprehensive review by industry experts, as
well as consumer market investigation and social publicizing.

Ministry of Commerce

January 30, 2007

Ministry of Commerce
2007-01-30

INTERPRETATION OF THE RELEVANT MATTERS OF THE SUPPLEMENTARY PROVISIONS NO.2 TO THE PROVISIONS ON FOREIGN INVESTMENT IN THE CIVIL AVIATION INDUSTRY

Interpretation of the Relevant Matters of the Supplementary Provisions No.2 to the Provisions on Foreign Investment in the Civil Aviation
Industry

The Background and Content of the Supplementary Provisions No.2 to the Provisions on Foreign Investment in the Civil Aviation Industry

In order to implement the Supplementary Agreement No.2 on Mainland and Hong Kong Closer Economic Partnership Arrangement signed in
October 2005 and the Supplementary Provisions No.3 signed in June 2006, Civil Aviation Administration of China combined the provisions
concerning the relaxation of restrictions in civil aviation industry in the two Supplementary Provisions and thus formulated the
Supplementary Provisions No.2.

The Supplementary Provisions No.2 enlarges the scale of investment of Hong Kong and Macao service providers in establishing air transport
sales agencies. Hong Kong and Macao service providers may hold the controlling shares in joint ventures and cooperative businesses
or establish solely funded enterprises.

II.

Application

Mainland and Hong Kong Closer Economic Partnership Arrangement has provided a clear definition of Hong Kong and Macao service providers,
which specifies such judging criteria as profit and tax, time limit of operating, place of business and employees, etc. The businesses
Hong Kong and Macao service providers run in Mainland shall be of the same nature with and within the actual business scope of those
they run in Hong Kong and Macao. Therefore, Hong Kong and Macao service providers who suit the Supplementary Provisions No.2 shall
be air transport sales agencies.

The Supplementary Provisions No.2 is applicable only to Hong Kong and Macao service providers who invest in and establish air transport
sales agencies in Mainland. Those with investment from a third party apart from Hong Kong and Macao service providers suit other
provisions instead of the Supplementary Provisions No.2.

III.

The Departments in Charge and Relevant Regulations and Provisions

The qualification authentication of sales agent has been transferred from the General Administration of Civil Aviation of China to
China Air Transport Association, which is responsible for the qualification authentication of national civil air transport sales
agency.

Other regulations and provisions related to civil air transport sales agencies include Provisions for the Administration of Civil
Air Transport Sales Agencies (No.37) and Measures for Qualification Authentication of China Civil Air Transport Sales Agency issued
by China Air Transport Association.

IV.

Business Scope

The business scope of air transport sales agencies established in accordance with the Supplementary Provisions No.2 include: class
I air transport sales agency, referring to sales agencies dealing in business of international routes or routes in Hong Kong, Macao
and Taiwan area, and class II air transport, referring to those dealing in domestic routes, Hong Kong, Macao and Taiwan not included.

Registered Capital

The air transport sales agencies established in accordance with the Supplementary Provisions No.2 shall meet the same standards in
registered capital with agencies in the Mainland. Those dealing in the class I air transport sales agency shall have no less than
1.5 million RMB as the registered capital and those dealing in the class II, no less than 500 thousand RMB. Sales agents shall increase
their registered capital by 500 thousand RMB for every newly set branch agency or business outlet.

VI.

Credentials of Financial Guarantee

Credentials of financial guarantee required in applying for Qualification Certificate of Civil Air Transport Sales Agency refer to
the attestation, which is provided by the applying agency, of financial guarantee from a third party, which shall be a domestically-funded
enterprise with its registered capital equal to, if not higher than, the agency being guaranteed.

Department of Policy and Regulation of General Administration of Civil Aviation of China

February 6, 2007

Department of Policy and Regulation of General Administration of Civil Aviation of China
2007-02-06

CIRCULAR OF THE MINISTRY OF COMMERCE ON ENTRUSTING WEIHAI ECONOMIC-TECHNOLOGICAL AREA TO EXAMINE, APPROVE AND ADMINISTER THE RELEVANT WORK ON FOREIGN-INVESTED ENTERPRISES IN SOME SERVICE TRADE SECTORS

Circular of the Ministry of Commerce on Entrusting Weihai Economic-Technological Area to Examine, Approve and Administer the Relevant
Work on Foreign-invested Enterprises in Some Service Trade Sectors

Shang Zi Han [2007] No. 13

Weihai Municipal People’s Government and Weihai Economic-Technological Area,

Pursuant to Some Opinions on Further Promoting the Development Level of National Economic and Technical Development Zones (Guo Ban
Fa [2005] No. 15) as forwarded by the General Office of the State Council to the Ministry of Commerce, the Ministry of Land and Resources
and the Ministry of Construction as well as the provisions of the Ministry of Commerce on the authorized examination, approval and
administration of foreign-funded enterprises, the Ministry of Commerce has finished the archival filing, examination and approval
of the management systems of all the national economic and technological development zones and the connected network for examination
and approval of foreign capital. The related matters are hereby notified as follows:

Upon research, we hereby authorize the Management Committee of Weihai Economic-Technological Area to be responsible for examining,
approving and administrating the foreign-funded enterprises in related service trade sectors set up inside its zone for the purpose
of encouraging and supporting the national economic and technological development zones to vigorously develop the high value-added
service industries.

The Management Committee of Weihai Economic-Technological Area shall, in strict accordance with the laws and regulations on foreign
investments as well as the related provisions on foreign-funded enterprises of non-vessel shipping, construction, printing, construction
engineering design, road transport, commerce and international freight forwarding (see appendix), carefully examine and approve the
related foreign-funded enterprises set up within its zone, and report the related problems found in the work to the Ministry of Commerce
in a timely manner. The Ministry of Commerce shall implement the inspection of the aforesaid examination, approval and administration,
and cancel the authorization to a national economic and technological development zone which commits illegal examination and approval
during the course of authorization.

The Management Committee of Weihai Economic-Technological Area shall conduct a good job in examination and approval, archival filing
and statistical work in strict accordance with the requirements of the Ministry of Commerce for networking and online joint annual
inspection and by taking advantage of the networking certification system for foreign-funded enterprises. The related statistical
data shall be in line with the requirements so that the Ministry of Commerce can keep informed of the situation and strengthen supervision.

Weihai Economic-Technological Area, the management system of which needs to be improved, has not set up an independent finance department
yet. Weihai Economic-Technological Area shall keep a close eye on and further resolve the problems in the management system, keep
a concise and efficient management system, and improve the level for examining, approving and administrating the foreign-funded enterprises.
Where any management system problem that may affect the work on examining, approving and administrating the foreign-funded enterprises
is found, this Ministry will withdraw the authorized power of examination, approval and administration immediately.

This circular shall enter into force as of the promulgation date.

Ministry of Commerce

February 12, 2007
Appendix:
Related documents on entrusting the competent provincial departments of commerce to examine, approve and Administer foreign-funded
service trade Enterprises

Circular of the Ministry of Commerce on Entrusting the Competent Provincial Departments of Commerce to Examine and Manage Foreign-funded
Non-vessel Shipping Enterprises (Shang Zi Han [2005] No. 89)

Circular of the Ministry of Commerce on Entrusting the Provincial Administrative Departments of Commerce to Examine, Approve and Administer
the foreign-funded Construction Enterprises (Shang Zi Han [2005] No. 90)

Circular of the Ministry of Commerce on Entrusting the Administrative Departments of Commerce at the Provincial Level to Examine and
Administer the Foreign-funded Printing Enterprises (Shang Zi Han [2005] No. 91)

Circular of the Ministry of Commerce on Entrusting the Administrative Departments of Commerce at the Provincial Level to Examine and
Administer the Foreign-funded Designing Enterprises for Engineering Projects (Shang Zi Han [2005] No. 92)

Circular of the Ministry of Commerce on Entrusting the Competent Provincial Departments of Commerce to Examine and Manage Some Foreign-funded
Road Transport Enterprises (Shang Zi Han [2005] No. 93)

Circular of the Ministry of Commerce on Entrusting Local Departments to Check Foreign-funded Commercial Enterprises (Shang Zi Han
[2005] No. 94)

Circular of the Ministry of Commerce about the related Issues on Entrusting National Economic and Technical Development Zones to Examine
and Approve foreign-funded Commercial Enterprises and International Freight Forwarding Enterprises (Shang Zi Han [2005] No. 102)

Measures for the Administration of Foreign-funded International Freight Forwarding Enterprises (Decree No. 19, 2005 of the Ministry
of Commerce)

Ministry of Commerce
2007-02-12

SOME OPINIONS OF THE MINISTRY OF EDUCATION CONCERNING FURTHER INTENSIFYING THE ABSORPTION OF EXCELLENT PEOPLE WITH OVERSEAS EDUCATIONAL BACKGROUND

Some Opinions of the Ministry of Education concerning Further Intensifying the Absorption of Excellent People with Overseas Educational
Background

Jiao Wai Liu [2007] No. 8

The education departments (commissions) of each province, autonomous region, and municipality directly under the Central Government,
the education departments (commissions) of related institutions (entities), the related institutions of higher education, the related
scientific and technological research institutions, the related entrepreneur parks for people with overseas educational background,
the education offices of Chinese embassies or consulates stationed outside the territory of China:

For the purpose of implementing the “National Outlines for Medium- and Long-term Planning for Scientific and Technological Development
(2006-2020)”, accelerating the implementation of the strategy of invigorating the country through science, technology and education
as well as the strategy of strengthening the power of the country by relying on talented people, make greater efforts to absorb excellent
people with overseas educational background, improving technical innovations and the development of new disciplines in China, setting
up a group of high-caliber talents that are able to adapt to the all-round, harmonious and sustainable development, several opinions
with respect to further intensifying the absorption of excellent people with overseas educational background by institutions of higher
education, scientific and technological research institutions and domestic employing units of entrepreneur parks for people with
overseas educational background (shortened as “domestic employing units”), etc. are hereby put forward as follows:

The definition of “excellent people with overseas educational background”.

“Excellent people with overseas educational background” may include the three levels as follows:

The first level: A group of leading scholars in certain disciplines are needed in order to form a group of excellent innovation organizations.

The second level: A large group of excellent academic leaders with a solid academic basis as well as prominent innovation capabilities
and development potentialities are needed in order to improve technical innovations and the development of certain disciplines.

The third level: A large quantity of young backbone teachers and scientific researchers are needed in order to uplift the overall
caliber of the group of teachers and scientific researchers.

II.

Preparing a demands catalogue for excellent people with overseas educational background, as well as establishing and perfecting an
information database of overseas excellent people with educational background.

According to the actual needs from the developments in education, science and technology, industry, region, etc., this Ministry shall
establish a system of forecasting the demands for people with overseas educational background and promulgating the information about
such demands, fully grasp the information concerning the demands of various domestic employing units for talents. We shall set up
and perfect the information database on the demands of domestic employing units for excellent people with overseas educational background,
develop national and local information databases of the policies and measures for attracting people with overseas educational background,
as well as provide convenient, prompt, accurate and timely domestic services of inquiry and consulting of the information on demands
for the excellent people with overseas educational background to come back to work in China.

On the basis of further enhancing and perfecting the construction of the information system of the education offices in Chinese embassies
or consulates stationed outside the territory of China on the management to study-abroad scholars, we shall establish the information
database of the excellent people with overseas educational background that intend to come back to work in China, intensify the management
and services of the education offices in Chinese embassies or consulates stationed outside the territory of China to study-abroad
scholars , find out, contact, and recommend the leading scholars of certain disciplines, academic leaders and academic backbones
that are needed immediately in China.

Each employing unit within the territory of China may, make pertinent plans on the absorption of talents in light of the specialties
and planning of the development of the disciplines concerned, and formulate management measures on the absorption of talents.

III.

To build up a two-way selection platform for excellent people with overseas educational background, and offer services for excellent
people with overseas educational background to come back to China to engage in or to start up their entrepreneur careers.

This Ministry shall publish information concerning domestic demands for people with overseas educational background and information
concerning excellent people with overseas educational background that intend to come back to work in China by various ways and forms,
set up a two-way interaction platform for online communications and negotiations, etc., and impel the linkup of domestic employing
units with the excellent people with overseas educational background and intend to come back to work in China:

We shall establish an exclusive network information exchange platform and a long-distance video interview and negotiation system upon
the information of the education offices of Chinese embassies or consulates stationed outside the territory of China, that on www.cscse.edu.cn,
www.csc.edu.cn, and that of China Scholars Abroad, as well as other related institutions, We will regularly publish demand information,
in order to provide services such as two-way interactive communications and recruitment negotiations, etc to both the excellent people
with overseas educational background and the employing units.

We will enhance the contacts with diverse academic organizations and associations of those studying outside the territory of China
and strengthen the guidance to them, give full scope to the intermediary function of the organizations, and we will publish the information
concerning demands for excellent overseas talents through the organizations of those studying outside the territory of China, and
offer consulting and services for those studying outside the territory of China to come back to work in China.

This Ministry will respectively organize the people studying outside the territory of China and domestic employing units to join in
the High-level Overseas Talents Recruitment Fair of Beijing Scientific and Technological Expo, and the High-level Overseas Talents
Recruitment Fair of Guangzhou Scientific and Technological Fair of Chinese People Studying Abroad in May and December annually, and
to have face-to-face communications and mutual selections.

We will organize the negotiation teams to absorb excellent people with overseas educational background upon the plan step by step,
and organize domestic people in charge of personnel to communicate with talents in the countries and regions abounding with people
with overseas educational background. We will organize excellent people studying outside the territory of China to hold communications
with domestic employing units through the education offices, encourage and guide excellent people studying outside the territory
of China to come back to China and work in higher education institutions, scientific and technological research institutions and
other departments.

Domestic employing units may independently organize teams to go abroad to follow up and negotiate with certain excellent people with
overseas educational background under the guidance of this Ministry, and implement the task of absorbing excellent people with overseas
educational background.

IV.

Taking full advantage of national projects of science and technology, education and supports to talents to guide excellent overseas
talents to come back to China to develop their own businesses.

The higher education institutions on the list of “211 Project” or the list of “985 Project”, and the scientific and technological
research institutions under the “100 talented scientist plan” shall regard the task of attracting excellent people studying outside
the territory of China to come back to work in China as an important part of the project construction, make planning on exclusive
fund supports and finance them excellent people with overseas educational background to come back to work in China or to serve the
home country in different ways.

We shall further enhance the supports and encouragement for excellent study-abroad talents to come back to work in China through such
programs as the “Cheung Kong Scholars Program” and “Program for New Century Excellent Talents in University”, etc..

We shall make greater efforts to perform the “Project on Absorption of Intellects by Institutions of Higher Education for Academic
Disciplinary Innovations” (the “111 Project”), attract excellent people studying outside the territory of China by means of organization
absorption, drive of core talents, etc., promote the disciplines development, and talent cultivation, and push the construction of
high-level research-oriented universities.

Greater efforts shall be made for “Chunhui Program” of the Ministry of Education to support excellent people with overseas educational
background to come back to China and serve the home country for short terms. We shall encourage excellent people with overseas educational
background to get financial supports under “Chunhui Program” and to come back to China and serve the home country for short terms,
in order that some excellent people with overseas educational background will come back to work in China finally for long terms by
way of cooperation and then soft landing.

We shall make good use of the “Chunhui Program” of the Ministry of Education to encourage excellent people with overseas educational
background in key areas or some advanced academic disciplines to work on research or lectures in higher education institutions during
their academic holidays in China, and to serve the construction of newly emerging academic disciplines and advanced academic disciplines
within the territory of China, as well as the establishment of world-class universities.

We shall make greater efforts to raise the financial support from the “Overseas Returned Scholars’ Scientific Research Initiation
Fund”, to increase the scholars supported therefrom, and to shorten the appraisal period of the “Overseas Returned Scholars’ Scientific
Research Initiation Fund”, in order to create conditions for excellent people studying abroad to carry out scientific research as
quickly as possible after they come back, and to encourage excellent people with overseas educational background to settle down and
develop in China.

Higher education institutions, scientific and technological research institutions and other entities shall set up scientific research
start-up funds for those with overseas educational background accordingly.

Establishing prompt avenues for people studying outside the territory of China to come back to work in China, and earnestly resolving
the reservations of excellent people with overseas educational background in their entrepreneur careers in China.

We shall make greater efforts to improve the service functions of the education offices of Chinese embassies or consulates stationed
outside the territory of China, and of the Ministry of Education’s Overseas Education Service Center with respect to certification,
management of personnel archives, certification of overseas education diplomas and degrees, and settling-down, etc., to intensify
the service consciousness, and to improve the service efficiency.

Chinese education offices stationed outside the territory of China shall actively provide domestic employing units with information
supports and services. When any domestic employing unit needs any assistance, contact or confirmation of related information for
absorbing any person studying overseas, the education office concerned shall provide related information consulting in a timely manner.

This Ministry shall coordinate with the related department to offer convenient service to those studying outside the territory of
China concerning entry into, exit from and permanent residence in China when they come back to work in China and serve the home country.
We will simplify the procedures for examination and approval therefrom, and improve the service quality.

Active efforts shall be made to promote the establishment and implementation of specific measures on the enjoyment of national treatments
by those with overseas educational background, to properly resolve the problems on the work conditions and close interests of the
excellent people with overseas educational background with regard to housing, salary, household registration, medical treatment,
social insurance, scientific research start-up, investment and establishment of enterprises, intellectual property protection, children’s
schooling, family members’ employment, and to create a work environment and policy environment that may help the excellent people
with overseas educational background their work or their serving the home country.

VI.

Intensifying the construction of entrepreneur parks for people with overseas educational background, scientific and technological
parks of universities, entrepreneur bases and service institutions, and energetically implementing the “Chunhui Cup” innovation entrepreneur
tournament of those Chinese scholars with overseas education experience.

We shall establish entrepreneur parks of scholars with overseas educational backgrounds, and a public entrepreneur service information
network platform of scientific and technological parks of universities. We shall improve the functions of incubation and project
management of the parks and bases, and broaden investment and financing avenues to create a good incubation environment for people
that studied outside the territory of China to carry out their own businesses. We shall attract and gather a group of excellent people
with overseas educational background, who grasp modern scientific and technological achievements, have independent intellectual properties,
and meanwhile have modernized enterprise management knowledge and market-based operation capabilities, to better cooperate with domestic
employing units by combination of production with research. We shall propel effective combination of foreign advanced technologies
and management experiences with domestic resources, and encourage them to make contributions to the domestic employing units’ teaching,
scientific research and hi-tech industry development.

This Ministry and the Ministry of Science and Technology will regularly hold a “Chunhui Cup” innovation and business start-up tournament
among those with overseas educational background, and establish an business startup platform with the involvement of overseas excellent
people with educational background, entrepreneur parks for people with overseas educational backgrounds, scientific and technological
parks of universities, and venture capital institutions. Upon the “Chunhui Cup” innovation and business startup contest among those
with overseas educational backgrounds, we shall give full play to the enthusiasm of the excellent people studying outside the territory
of China to come back to China and develop their own businesses, encourage them to actively submit applications for innovation and
business startup projects, and create conditions to support the project linkup of the participants with the scientific and technological
parks of universities, entrepreneur parks for people with overseas educational backgrounds, and enterprises, as well. We shall also
organize entrepreneur parks for those studying outside the territory of China, scientific and technological parks of universities,
venture capital institutions and domestic entrepreneurs to appraise the projects, negotiate on the projects and award the excellent
ones on the basis of the project technical level, investment foreground, benefit forecast and industrialization situation, as well
as promote people with overseas educational backgrounds to build up high technology enterprises.

The Ministry of Education

March 2, 2007

The Ministry of Education
2007-03-02

REAL RIGHT LAW OF THE PEOPLE’S REPUBLIC OF CHINA

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

No. 62

The Real Right Law of the People’s Republic of China has been adopted at the 5th session of the Tenth National People’s Congress on
March 16, 2007. It is hereby promulgated and shall go into effect as of October 1, 2007.
President of the People’s Republic of China Hu Jintao

March 16, 2007

Real Right Law of the People’s Republic of China

(Adopted at the 5th session of the Tenth National People’s Congress on March 16, 2007)

Contents
Part I General Rules

Chapter I Basic Principles

Chapter II Creation, Alternation, Alienation and Termination of Real Right

Section 1 Reality Registration

Section 2 Chattel Delivery

Section 3 Other Rules

Chapter III Protection of Real Right

Part II Ownership

Chapter IV General Rules

Chapter V State Ownership, Collective Ownership and Private Ownership

Chapter VI Owners’ Partitioned Ownership of Building Areas

Chapter VII Neighboring Relationship

Chapter VIII Common Ownership

Chapter IX Special Rules on Acquiring Ownership

Part III Usufructuary Rights

Chapter X General Rules

Chapter XI Right to the Contracted Management of Land

Chapter XII Right to Use Construction Land

Chapter XIII Right to Use House Sites

Chapter XIV Easement

Part IV Real Rights for Security

Chapter XV General Rules

Chapter XVI Mortgage Right

Section 1 General Mortgage Right

Section 2 Mortgage Right at Maximum Amount

Chapter XVII Pledge Right

Section 1 Chattel Pledge

Section 2 Right Pledge

Chapter XVIII Lien

Part V Possession

Chapter XIX Possession

Supplementary Rules
Part I General Rules

Chapter I Basic Principles

Article 1

In accordance with the Constitution Law, the present Law is enacted with a view to maintaining the basic economic system of the state,
protecting the socialist market economic order, clearly defining the attribution of the res, bringing into play the utilities of
the res and safeguarding the real right of the right holder.

Article 2

The civil relationships incurred from the attribution and utilization of the res shall be governed by the present Law.

The term “res” as mentioned in the present Law means realties and chattels. Where it is prescribed in any provision that certain right
shall be taken as an object of real right, such provision shall be applicable.

The term “real right” as mentioned in the present Law means the exclusive right of direct control over a specific res enjoyed by the
holder in accordance with law, including ownership, usufractuary right and real rights for security.

Article 3

In the primary phase of socialism, the state adheres to the basic economic system with the public ownership playing a dominant role
and diverse forms of ownership developing side by side.

The public economy shall be consolidated and developed by the state, and the development of the nonpublic economy shall be encouraged,
supported and guided.

The socialist market economy system shall be practiced by the state as well as the equal legal status and development rights of all
market subjects shall be protected.

Article 4

The real right of the state, collective, individual or any other right holder shall be protected by law, and may not be damaged by
any entity or individual.

Article 5

The varieties and contents of real rights shall be prescribed by law.

Article 6

The creation, alteration, alienation or termination of the real right of a realty shall be subject to registration in accordance
with law. The creation or alienation of the real right of a chattel shall be delivered in accordance with law.

Article 7

One shall, when acquiring or exercising a real right, comply with the law, respect social morals and may not infringe upon the public
interests or the lawful rights and interests of any other person.

Article 8

In case there exists any other special provision in respect of real right in any other law, such special provision shall prevail.

Chapter II Creation, Alteration, Alienation and Termination of Real Right

Section 1 Reality Registration

Article 9

Until it is registered in accordance with law, the creation, alteration, alienation or termination of the real right of a realty
shall come into effect; unless it is otherwise prescribed by any law, it shall have no effect if it is not registered in accordance
with law.

As regards the ownership of the natural resources owned by the state in accordance with law, the registration is not required.

Article 10

The registration of a realty shall be handled by the registration organ at the locality of the realty.

A uniform registration system over realties shall be practiced by the state. The scope, organ and measures of uniform registration
shall be specified by the related laws and administrative regulations.

Article 11

In light of the different registration items, an applicant shall, when applying for the registration of a realty, provide the ownership
certificate of the realty and such necessary materials as the location and area of the realty.

Article 12

A registration organ shall perform the duties as follows:

(1)

to examine the ownership certificate and other necessary materials as provided by the applicant;

(2)

to inquire the applicant about the registration items concerned;

(3)

to register the related items in accordance with the facts and in a timely manner; and

(4)

other duties as provided for in any law or administrative regulation.

In case the related situation of the realty under application for registration needs further proving, the registration organ may request
the applicant to provide supplementary materials and conduct on-the-spot inspection where necessary.

Article 13

No registration organ may commit any of the behaviors as follows:

(1)

to ask for an evaluation of a realty;

(2)

to repeatedly register registration in the name of annual inspection; or

(3)

other behaviors conducted beyond its scope of registration duties.

Article 14

As regards the creation, alteration, alienation or termination of the real right of a realty, it shall go into effect since the date
when it is recorded in the realty register in case the registration thereof is required by law.

Article 15

As regards a contract entered into by the related parties concerned on the creation, alteration, alienation or termination of the
real right of a realty, it shall go into effect upon the conclusion of the contract, unless it is otherwise prescribed by any law;
and the validity of the contract is not affected, whether the real right has been registered or not.

Article 16

The realty register shall be the basis for deciding the ownership and contents of a realty and shall be under the management of the
registration organ.

Article 17

The realty ownership certificate shall be the evidence for the holder’s ownership of a realty. The items recorded in the realty ownership
certificate shall accord with those recorded in the realty register; unless it is proved that there is anything wrong in the realty
register, the one recorded therein shall prevail in the case of any inconsistence.

Article 18

Any right holder or interested party may file an application for consulting or copying the registration materials, and the registration
organ may not reject.

Article 19

In case any right holder or interested party holds that there is anything wrong in any item recorded in the realty register, it/he
may apply for a correction of the registration. The registration organ shall revise the registration accordingly, in case the holder
recorded in the realty register agrees to revise the registration in written form or there is evidence to prove that the registration
is wrong.

The interested party may apply for dissidence registration, in case the holder recorded in the realty register does not agree to the
alteration. Where the registration organ grants the dissidence registration but the applicant fails to lodge an action within 15
days as of the date of dissidence registration, the dissidence registration shall lose its effect. In case the dissidence registration
is improper and bring into damages to the right holder, the holder may require the applicant to compensate for damages.

Article 20

In case the related parties entered into a purchase agreement on a premise or the real right of any other realty, they may apply
for advance notice registration to the registration organ so as to ensure the realization of the real right in the future. Without
the consent of the holder in the advance notice registration, any disposal of the realty, after the advance notice registration,
may not produce effect of real right.

In case the obligee’s right is terminated after the advance notice registration is made, or the application for the registration of
the realty is not filed within 3 months as of the date when it can be registered, the advance notice registration shall lose its
effect.

Article 21

In case any related party provides false materials for applying for registration and causes damages to any other person, it/he shall
assume the liability for compensation.

In case any registration organ causes damages to any other person by virtue of any mistake in registration, it shall assume the liability
for compensation. The registration organ may, after making the compensation, recover the amount from the person who causes the registration
mistake.

Article 22

Realty registration fees shall be charged on each piece, and may not be charged on the basis of the size, volume or certain proportion
of the realty’s value. The concrete charging rates shall be formulated by the related departments in the State Council in collaboration
with the competent pricing department.

Section 2 Chattel Delivery

Article 23

Unless it is otherwise prescribed by any law, the creation or alienation of the real right of a chattel shall come into effect upon
delivery.

Article 24

The creation, alteration, alienation or termination of the real right of any vessel, aircraft or motor vehicle and so on may not
challenge any bona fide third party if it is not registered.

Article 25

In case the right holder has legally possessed the chattel prior to the establishment or alienation of a chattel’s real right, the
real right shall come into effect upon the effectiveness of the legal act.

Article 26

In case a third party has legally possessed the chattel prior to the establishment or alienation of a chattel’s real right, the person
assuming the obligation of delivery may, instead of delivery, alien the right to request the third party to return the original object.

Article 27

In case both parties agree to let the alienator continuously possess the chattel when the real right of a chattel is alienated, the
real right shall go into effect upon the effectiveness of the agreement.

Section 3 Other Rules

Article 28

In case the creation, alteration, alienation or termination of a real right is resulted from a legal document of the people’s court
or arbitration committee or a requisition decision of the people’s government, etc, the real right shall come into effect upon the
effectiveness of the legal document or the requisition decision of the people’s government.

Article 29

In case real right is acquired through inheritance or bequest, it shall go into effect as of the beginning time of the inheritance
or bequest.

Article 30

In case a real right is created or terminated as a result of such factual behaviors as the legal construction or premise demolition,
it shall come into effect upon the accomplishment of the factual behavior.

Article 31

As regards a real right of realty enjoyed according to the provisions of Articles 28 through 30 of the present Law, any disposal
thereof may not produce effect of real right until it is registered as required by law.

Chapter III Protection of Real Right

Article 32

Where a real right is damaged, the right holder may settle the problem by means of conciliation, mediation or arbitration, etc.

Article 33

Where any dispute over the ownership or content of real right arises, the interested parties may require the confirmation of the
right.

Article 34

Where a realty or chattel is under an unauthorized possession, the right holder may require the returning of the original object.

Article 35

In case a real right is under obstruction or may be obstructed, the right holder may require the removing of the impediment or the
termination of the danger.

Article 36

In case a realty or chattel is damaged, the right holder may require the repairing, remaking, changing or the restoration of the
original state.

Article 37

In case the infringement upon a real right causes losses to the right holder, the right holder may require the compensation for the
losses or the assuming of any other civil liability.

Article 38

The ways for protecting real right as prescribed in the present Law may apply either independently or jointly in light of the specific
situation of an injury of real right.

In addition to assuming civil liabilities, any entity or individual infringing upon a real right shall assume the administrative liabilities
where it/he violates any provision on administrative regulation; in case any crime is established, it/he shall assume the criminal
liabilities.

Part II Ownership

Chapter IV General Rules

Article 39

The owner of a realty or chattel is enpost_titled to possess, utilize, seek profits from and dispose of the realty or chattel in accordance
with law.

Article 40

The owner of a realty or chattel is enpost_titled to establish a usufructuary right or real right for security over the realty or chattel.
The holder of usufructuary right or the holder of real right for security may, when exercising the right, not injure the owner s
rights and interests.

Article 41

As regards a realty or chattel that is exclusively owned by the state as prescribed by law, its ownership may not be acquired by
any entity or individual.

Article 42

In order to meet the demands of public interests, it is allowed to requisition lands owned collectively, premises owned by entities
and individuals or other realties according to the statutory power limit and procedures.

When requisitioning land owned collectively, it is required to, in accordance with law and in full amount, pay land compensation fees,
placement subsidies, compensations for the above-ground fixtures of the lands and seedlings and other fees, arrange for social security
fees for the farmers with land requisitioned, guarantee their livelihood and protect their lawful rights and interests.

When requisitioning the premises owned by entities and individuals or other realties, it is required to compensate for demolishment
and relocation in accordance with law and protect the lawful rights and interests of the owners of the requisitioned realties; when
requisitioning the individuals’ residential houses, it is required to guarantee the housing conditions of the owners of the requisitioned
houses.

The compensation fees for requisition and other fees may not be embezzled, misappropriated, privately shared, detained or delayed
in the payment of by any entity or individual.

Article 43

Special protections are provided by the state for farm lands, the conversion of farm lands into construction lands is strictly restricted
and the aggregate quantity of construction lands is under control. No one may requisition any land owned collectively with violation
of the statutory power limit and procedures.

Article 44

For meeting needs of emergent dangers or disasters, it is allowed for one to use the realties or chattels owned by entities and individuals
according to the statutory power limit and procedures. Such realties or chattels shall, after the emergent use, be returned to the
owners. In case any realty or chattel owned by any entity or individual is used or damaged or lost after being used, corresponding
compensation shall be made.

Chapter V State Ownership, Collective Ownership and Private Ownership

Article 45

As regards the properties that shall be owned by the state as provided for by law, they shall be in the ownership of the state, that
is, owned by all the people.

The State Council shall exercise the ownership of state-owned properties on behalf of the state; in case there is any otherwise provision
in any law, such provision shall prevail.

Article 46

Mineral deposits, waters and sea areas shall be in the ownership of the state.

Article 47

Urban lands shall be in the ownership of the state. As regards lands in the rural areas and suburban areas that shall be owned by
the state as prescribed by law, they shall be in the ownership of the state.

Article 48

Such natural resources as forests, mountains, grasslands, waste lands and tidal flats shall be in the ownership of the state, except
for those that shall be in the ownership of collective as provided for by law.

Article 49

As regards the wildlife resources that shall be owned by the state as provisioned by law, they shall be in the ownership of the state.

Article 50

Radio frequency spectrum resources shall be in the ownership of the state.

Article 51

As regards the cultural relics that shall be owned by the state as provisioned by law, they shall be in the ownership of the state.

Article 52

National defense assets shall be in the ownership of the state.

As regards such infrastructures as railways, highways, electric power facilities, telecommunication facilities, and petrol and gas
pipelines that shall be owned by the state as provisioned by law, they shall be in the ownership of the state.

Article 53

State organs have the power, in accordance with the laws and the relevant provisions of the State Council, to possess, utilize and
dispose of any realty or chattel directly controlled by them.

Article 54

The public institutions held by the state have the power to possess, utilize, as well as, according to the laws and the relevant
provisions of the State Council, seek profits from and dispose of any realty or chattel directly controlled by them.

Article 55

As regards the enterprises set up with the funds invested in by the state, the State Council and the local people’s governments shall
perform and enjoy the contributor’s duties as well as rights and interests on behalf of the state in accordance with the relevant
laws and administrative regulations.

Article 56

The state-owned properties shall be protected by law, and no entity or individual may encroach, plunder, privately distribute, hold
back or damage them.

Article 57

The institutions and working personnel thereof in charge of performing the duties of managing and supervising state-owned assets
shall, according to law, strengthen the management and supervision of state-owned assets so as to promote the value maintenance and
appreciation prevent the losses thereof; in case any entity or individual causes any loss of state-owned assets by misusing authority
or neglecting duty, it/he shall assume legal liabilities in accordance with law.

In case any entity or individual, in the process of enterprise restructuring, merger, division or affiliated transactions, causes
losses of state-owned assets by way of transferring at a low price, conspiring to distribute them secretly, providing guarantee with
them without authorization or any other way with violation of the provisions on the management of state-owned assets, it/he shall
assume legal liabilities in accordance with law.

Article 58

The collectively-owned realties and chattels shall contain:

(1)

Lands, forests, mountains, grasslands, wastelands and tidal flats that shall be in the ownership of collective as provided for by
law;

(2)

Buildings, production facilities, farmland, and water conservancy facilities that are in the ownership of collective;

(3)

Facilities for education, science, culture, sanitation and sports, etc that are in the ownership of collective;

(4)

Other realties and chattels that are in the ownership of collective.

Article 59

The realties and chattels that are in the ownership of a farmers’ collective shall be collectively owned by all the members of this
collective.

The following issues shall be determined by the members of the collective according to the statutory procedures:

(1)

land contracting plan and whether to contract out a land to an entity or individual not included in the collective;

(2)

adjustment of the contracted lands among the right holders of the contracted management of land;

(3)

methods for using and distributing such fees as land compensation fees;

(4)

the alteration of ownership or any other related issue of an enterprise set up with the funds invested in by the collective; and

(5)

other issues provided for by any law.

Article 60

As regards any collectively-owned land, forest, mountain, grassland, wasteland or tidal flat, the ownership thereof shall be exercised
according to the provisions as follows:

(1)

In case it is owned by a farmers’ collective of a village, a collective economic organization or the villagers’ committee of the village
shall exercise the ownership on behalf of the collective;

(2)

In case it is owned by two farmers’ collectives or more, all the collective economic organizations or villagers’ groups of the village
shall exercise the ownership on behalf of the collective; and

(3)

In case it is owned by a farmers’ collective of a town, a collective economic organization of the town shall exercise the ownership
on behalf of the collective.

Article 61

As regards any realty or chattel owned by an urban collective, this urban collective has the rights to possess, use, seek profits
from and dispose of it according to the related laws and administrative regulations.

Article 62

The collective economic organization, villager’s committee or villagers’ group shall, in accordance with the relevant laws, administrative
regulations, articles of association and village regulations and villagers’ pledges, publicize the situation of the properties owned
by a collective to the members of the collective.

Article 63

Collectively-owned properties shall be protected by law, and any entity or individual may not encroach, plunder, privately distribute,
hold back or destroy them.

Where the legitimate rights and interests of any member of the collective are infringed upon by any decision made by a collective
economic organization, villagers’ committee or the principle thereof, such member may require the people’s court to cancel the decision.

Article 64

An individual has the right to own his legal income, premise, household goods, production instruments, raw materials as well as other
realties and chattels.

Article 65

The legal savings, investments and the proceeds therefrom of an individual shall be protected by law.

An individual’s right of inheritance as well as other legal rights and interests shall be protected by the state in accordance with
law.

Article 66

An individual’s legal properties shall be protected by law, any entity or individual may not encroach, plunder or destroy them.

Article 67

The state, any collective or individual may invest to set up a limited liability company, a company limited by shares or any other
form of enterprise. In case the state, a collective or an individual invest the realties or chattels it owns in an enterprise, the
contributor shall, in accordance with the agreement or on the basis of his proportion of investment, enjoy rights such as obtaining
asset returns, making important decisions and selecting operators and managers and perform their duties.

Article 68

In accordance with the laws, administrative regulations and its articles of association, An enterprise legal person is enpost_titled
to possess, utilize, seek profits from and dispose of any realty or chattel it owns.

As regards the rights over the realties and chattels owned by a legal person other than an enterprise legal person, the provisions
of the related laws, administrative regulations and its articles of associations shall apply.

Article 69

The realties and chattels owned by social organizations in accordance with law shall be protected by law.

Chapter VI Owners’ Partitioned Ownership of Building Areas

Article 70

As regards such exclusive parts within the buildings as the residential houses or the houses used for business purposes, an owner
shall enjoy the ownership thereof, while as regards the common parts other than the exclusive parts, the owner shall have common
ownership and the common management right thereof.

Article 71

An owner is enpost_titled to possess utilize, seek profits from and dispose of the exclusive parts of the building. Any owner may not
endanger the safety of the building or infringe upon the lawful rights and interests of any other owner when exercising his or its
rights.

Article 72

An owner enjoys the rights and assumes the obligations over the common parts other than the exclusive parts of the building, and
may not reject performing the obligations under the pretext of abandoning rights.

In case an owner alienates his residential house or the house used for business purposes within the building, the common ownership
and the common management right enjoyed by him/her over the common parts shall be alienated at the same time.

Article 73

The roads within the building zone, except for the public roads of cities and towns, shall be commonly owned by the owners. The green
lands within the building area, except for the public green lands of cities and towns or those which are definitely ascribed to individuals,
shall be commonly owned by all the owners. The other public places, common facilities and houses used for realty services within
the building zone shall be commonly owned by all the owners.

Article 74

The parking places and garages within the building area planned for parking cars shall be used to meet the needs of the owners above
all else.

The ownership of the parking places and garages shall be agreed upon by the related parties in the manners of selling, complementary
using or leasing, etc.

The parking places, which occupy the roads or other fields commonly owned by all owners, shall be in the common ownership of all the
owners.

Article 75

The owners may set up an owners’ assembly and vote for an owners’ committee.

For the establishment of the owners’ assembly and the vote of the owners’ committee, the related departments under the local people’s
governments shall provide guidance and assistance.

Article 76

The following matters shall be commonly determined by all owners:

(1)

to formulate and revise the rules of procedure for the owners’ assembly;

(2)

to formulate and revise the stipulations on managing the building and affiliated facilities thereof;

(3)

to vote for the owners’ committee or alter the members thereof t;

(4)

to hire or fire the realty service enterprise or any other manager;

(5)

to raise or use the funds for maintaining the building and affiliated facilities thereof;

(6)

to rebuild the building or any of its affiliated facilities;

(7)

other important matters on the common ownership and the common management right.

For making a decision on matters prescribed in Item (5) or (6) of the preceding paragraph, the consent of the 2/3 or more of the total
owners with exclusive parts accounting for 2/3 or more of the total area of the building shall be obtained. For making a decision
on any other issue prescribed in the preceding paragraph, the consent of half of the total owners with exclusive parts accounting
for half of the total area of the building shall be obtained.

Article 77

Any owner may not alter a residential house into a house used for business purposes with violation of any law, regulation or management
stipulation. An owner shall, when changing a residential house into a house used for business purposes, obtain the consent of the
interested owners, in addition to complying with the laws, regulations and management stipulations.

Article 78

Decisions made by the owners’ assembly or the owners’ committee are binding to each owner.

In case the legitimate rights and interests of any owner has been injured by any decision made by the owners’ assembly or the owners’
committee, the injured owner may require the people’s court to cancel the decision.

Article 79

The funds for maintaining a building and affiliated facilities thereof shall be commonly owned by the owners of the building. The
funds may, upon the codetermination of the owners, be used for maintaining such common parts as elevators and water tanks. The circumstance
about the raise and use of the maintenance funds shall be released to the owners.

Article 80

As regards such matters as the expenses allocation and the proceeds distribution of a building or any of its affiliated facilities,
in case there exists any stipulation for these, such stipulation shall apply; in the case of no stipulation or unclear stipulation,
these matters shall be determined in accordance with the proportion of each owner’s exclusive parts to the total area of the building.

Article 81

The owners of a building may manage the building and affiliated facilities thereof by themselves or they may entrust a realty service
enterprise or any other manager to conduct the management.

As regards the realty service enterprise or any other manager hired by the construction entity, the owners are enpost_titled to alter it
in accordance with law.

Article 82

The realty service enterprise or any other manager shall, upon the strength of the owners’ entrustment, manage the building and affiliated
facilities thereof within the building area and accept the owners’ supervision.

Article 83

The owners shall comply with the laws, regulations and management stipulations.

As regards any act infringing upon the lawful rights and interests of other persons, such as discarding wastes at will, discharging
atmospheric pollutants and noise, breeding animals with violation of the related regulations, illegally building shelters, occupying
passages or rejecting paying realty management fees, etc, the owners’ assembly and the owners’ committee have the right, in accordance
with the relevant laws, regulations a

ANNOUNCEMENT NO.11, 2007 OF MINISTRY OF COMMERCE ON PROMULGATING FINAL ARBITRATION ON ANTI-DUMPING INVESTIGATION ON NONYL PHENOL ORIGINATED FROM INDIA AND TAIWAN REGION

Announcement No.11, 2007 of Ministry of Commerce on Promulgating Final Arbitration on Anti-dumping Investigation on Nonyl Phenol Originated
from India and Taiwan Region

[2007] No.11

In accordance with Anti-dumping Regulations of the People’s Republic of China, Ministry of Commerce of the People’s Republic of China
released announcement on Dec 29, 2005, deciding to carry out anti-dumping investigation on nonyl pheno originated from India and
Taiwan Region.

In line with investigation, Ministry of Commerce finally verdicts dumping of the investigated commodities, injures the domestic nonyl
pheno industry, and the existence of causality between dumping of the investigated commodities and the injury of domestic industry.

In accordance with Anti-dumping Regulations of the People’s Republic of China, Tariff Committee of the State Council decides to impose
anti-dumping duties on nonyl pheno originated from India and Taiwan region as from Mar 29, 2007, the tariff codes of which is 29071310
in Import and Export Tariff of the People’s Republic of China.

Rate of Anti-dumping Duties on Different Companies:

Companies in India

SI GROUP-INDIA LIMITED 12.22 %

All Others 20.38%

Companies in Taiwan region:

Formosan Union Chemical Corporation 6.87 %

China Man-Made Fiber Corporation 4.08 %

All others 20.38%

The duration of the anti-dumping duties on nonyl pheno originating from India and Taiwan region is 5 years as from Mar 29, 2007.

This announcement shall take effect as from Mar 29, 2007.

Appendix: Ministry of Commerce’s Final Arbitration on Anti-dumping Investigation on Nonyl Pheno Originated from India and Taiwan Region.

Ministry of Commerce

Mar 28, 2007

Ministry of Commerce
2007-03-28

INTERIM MEASURES FOR THE ADMINISTRATION OF FUTURES INVESTOR SAFEGUARD FUNDS

Decree No.38 of China Securities Regulatory Commission

No.38

The Interim Measures for the Administration of Futures Investor Safeguard Funds have been deliberated and adopted by China Securities
Regulatory Commission and the Ministry of Finance. They are hereby promulgated and shall enter into force as of August 1, 2007.

Chairman of China Securities Regulatory Commission Shang Fulin

Minister of Ministry of Finance of the People’s Republic of China Jin Renqing

April 19, 2007

Interim Measures for the Administration of Futures Investor Safeguard Funds
Chapter I General Rules

Article 1

In accordance with the Regulation on the Administration of Futures Trading, the present measures are formulated in order to protect
the legitimate rights and interests of futures investors.

Article 2

Futures investor safeguard fund (hereinafter referred to as safeguard fund) is a fund that is exclusively used for compensating investors’
losses of guaranty money when futures companies are in serious violation of related laws or rules, or fail to do well in risk control,
which may lead to a shortfall of guaranty money and severely endangers social stability and the safety of the futures market.

Article 3

Performing futures trading activities shall observe the principles of openness, fairness, justice and that investors shall make investment
decisions independently and assume responsibility for investment risks on their own.

In case any investor suffers losses from the fluctuation of the futures market or the change of the value of the product he/it invests
in, he shall assume the losses independently.

Article 4

Safeguard funds shall be raised according to the principle of taking from the market and being used for the market.

Article 5

Safeguard funds shall be uniformly managed and planned as a whole by China Securities Regulatory Commission.

Article 6

Management and operation of safeguard funds shall be implemented observing the principles of openness, reasonableness and effectiveness.

Article 7

The use of safeguard funds shall be performed observing the principles of ensuring the legitimate rights and interests of investors,
fair aid and making compensations on a pro ratio basis.

Chapter II Raise of Safeguard Funds

Article 8

The administrative organ of safeguard funds shall set up an exclusive account in the name of safeguard fund, and this account shall
be exclusively used for depositing safeguard funds.

Article 9

The start-up capital of safeguard funds shall be formed by a futures exchange with 15 percent of the total amount of risk reserves
as accumulated up to December 31st, 2006. The follow-up capital of a safeguard fund shall include:

(1)

Payment of 3 percent of the transaction commission charges as collected by the futures exchange against the futures company members;

(2)

Payment of 0.0005 percent to 0.0010 percent of the vicegerent trading volume made by futures companies out of their transaction commission
charges;

(3)

Other legal property recovered or accepted by the administrative organ of safeguard funds.

As for a futures company that has higher risks because of the deterioration of financial condition thereof or its failure to do well
in risk control, it shall pay the safeguard funds at a proportion whichever is higher, and the specific payment proportion of each
futures company shall be determined by China Securities Regulatory Commission according to the risk status of the company respectively.
All futures exchanges or futures companies shall list the safeguard funds as paid by themselves under its business cost.

Article 10

A futures exchange shall transfer the start-up capital that it shall pay into the exclusive account of safeguard funds within one
month as of the implementation of the present measures.

Futures exchanges and futures companies shall pay follow-up capital on quarterly manner. A futures exchange shall pay its due safeguard
funds of the previous season within 15 workdays as of the end of each season, and withhold and remit the safeguard funds that shall
be paid by futures companies at the proportion as prescribed of Article 9 in the present measures.

Article 11

In the case of any of the following circumstances, futures exchanges or futures companies may temporarily suspend the payment of
safeguard funds upon the approval of China Securities Regulatory Commission and the Ministry of Finance:

(1)

The total amount of safeguard funds reaches RMB 800 million;

(2)

It is suffering from a gross unexpected market risk or force majeure.

The scale, payment proportion and payment mode of safeguard funds shall be determined and adjusted by China Securities Regulatory
Commission according to the status of the futures market development and the market risk level, etc.

Article 12

Sources of safeguard funds may be diversified. Safeguard funds may accept private donations or any other legal property. The interests
as incurred from the safeguard funds and various kinds of incomes gained from operations thereof as well as other fruits incurred
shall fall into the safeguard fund.

Chapter III Management and Supervision of Safeguard Funds

Article 13

China Securities Regulatory Commission and the Ministry of Finance may designate a related organ to serve as the administrative organ
of safeguard funds, which manage safeguard funds on their behalf.

Article 14

The management of safeguard funds shall be performed in light of the principles of safety, stability and soundness to ensure the
safety of safeguard funds.

Safeguard funds may only be used for bank deposit, purchasing national bonds, bonds of the central bank (including instruments of
the central bank) and financial bonds as issued by central banking institutions, and in any other method as approved by China Securities
Regulatory Commission and the Ministry of Finance.

Article 15

Safeguard funds shall be used under independent management and separate accounts and be effectively isolated from other assets that
are under the management of the administrative organ of safeguard funds.

The administrative organ of safeguard fund shall prepare reports relating to the raising, management and use of safeguard funds on
regular manner, and shall submit the said reports to China Securities Regulatory Commission and the Ministry of Finance after audited
by an accounting firm.

Article 16

The administrative organ of safeguard funds, futures exchanges and futures companies shall appropriately keep the accounting vouchers,
account books, financial statements and other materials concerning the safeguard funds and ensure the integrity and genuineness of
the related accounting records and files.

Article 17

The Ministry of Finance shall take the responsibility of surveilling the financial affairs of safeguard funds. The annual revenue
and expenditure plan and final settlement of the account of safeguard funds shall be reported to the Ministry of Finance for approval.

Article 18

China Securities Regulatory Commission shall take the responsibility of surveilling the business operations of safeguard funds, and
shall make examination and inspection concerning the raising, management and use of safeguard funds regularly. China Securities Regulatory
Commission shall regularly report the general risk status of futures companies to the administrative organ of safeguard funds. A
futures company with moderately high risks shall submit its financial surveillance statements to the administrative organ of safeguard
funds on a monthly basis.

Chapter IV Use of Safeguard Funds

Article 19

In case a futures company is in serious violation of related laws and rules or fails to do well in risk control leading to shortfall
of any guarantee money, China Securities Regulatory Commission may make a decision on using the safeguard funds thereof to compensate
for the undischarged losses of guarantee money suffered by the investor in accordance with the present measures.

Article 20

With respect to the losses of guarantee money as suffered by a futures investor, it shall be compensated with the safeguard funds
thereof subject to the principles as follows:

(1)

As for the losses suffered by an individual investor, the part below RMB 100,000(including RMB 100,000) shall be compensated in full
amount, while the part exceeding RMB 100,000 shall be compensated at the rate of 90 percent;

(2)

As for the losses suffered by an institutional investor, the part below RMB 100,000 shall be compensated in full amount, while the
part exceeding RMB 100,000 shall be compensated at the rate of 80 percent.

If the current safeguard fund is not enough to make the compensation, the follow-up capital of safeguard funds shall be used to make
the compensation.

Article 21

China Securities Regulatory Commission and the administrative organ of safeguard funds shall surveil the related futures company
to verify the investors’ rights and interests and losses of guarantee money, actively liquidate its assets and convert them into
cash, and shall make up the shortfall of guarantee money firstly with its self-owned capital and the cash as converted from assets
liquidation before using any safeguard fund. It may make a decision of using the safeguard funds only when its own capital is not
enough to make up the shortfall or in the case of any emergency.

Article 22

As for the losses of guarantee money as suffered by an investor for his/its participation in illegal futures trading, it may not
be compensated with safeguard funds. In the case of any participation of an institutional investor in futures trading in the name
of an individual, the losses it suffered shall be compensated in accordance with the rules relating to compensation for institutional
investors.

Article 23

The administrative organ of safeguard fund shall acquire the right to be compensated accordingly after any safeguard fund is used
for compensating the losses of guarantee money as suffered by a futures investor, and may participate in the liquidation of futures
companies in accordance with related laws.

Article 24

The administrative organ of safeguard fund shall timely report the circumstances concerning the use, compensation and recovery of
safeguard funds to China Securities Regulatory Commission and the Ministry of Finance.

Chapter V Penalty Rules

Article 25

In case any futures company is in serious violation of related laws or fails to do well in risk control leading to any shortfall
of guarantee money, China Securities Regulatory Commission shall impose a punishment on it and revoke its futures business license
in accordance with Articles 70 and 71 of the Regulation on the Administration of Futures Trading. If it is suspected of being involved
in any crime, it shall be transferred to the judicial authorities.

Article 26

In case any futures exchange or futures company is in violation of the present measures by way of deferring the payment or refusing
to make payment of its safeguard funds or failing to keep and file the related information and materials as requested, it shall be
punished by China Securities Regulatory Commission in accordance with Articles 68 and 70 of the Regulation on the Administration
of Futures Trading.

Article 27

As for any individual or entity committing misappropriating, encroaching or defrauding safeguard funds or any other illegal behavior,
it shall be subject to liabilities accordingly, the related personnel neglecting their duties shall be subject to legal liabilities
in accordance with related laws, and anyone as suspected of being involved in any crime shall be transferred to the judicial authorities.

Chapter VI Supplementary Rules

Article 28

The present measures shall enter into force as of August 1, 2007.

China Securities Regulatory Commission, Ministry of Finance
2007-04-19

OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION ABOUT LEVY OF URBAN LAND USE TAX OF FOREIGN-INVESTED ENTERPRISES AND FOREIGN ENTERPRISES

Official Reply of the State Administration of Taxation about Levy of Urban Land Use Tax of Foreign-invested Enterprises and Foreign
Enterprises

Guo Shui Han [2007] No. 596

Local Taxation Bureau of Xiamen,

We have received your Request for Establishment of Transitional Period for the Levy of Land Use Tax of foreign-funded enterprises
(Xia Di Shui Fa [2007] No.50). Upon study, we hereby render a reply as follows:

“Decision of the State Council on the Modification of ‘Interim Regulations of the People’s Republic of China Governing Land Use Tax
in Cities and Towns'”, which brings foreign-invested enterprises and foreign enterprises into the levy scope of urban land use tax,
is an important measure of the country to strengthen administration of land, is conducive to give full play to taxation as an economic
leverage, guide enterprises of all types to utilize land reasonably and economically, protect land resources, and make tax burden
fair. All localities should levy urban land use tax on enterprises of all types, including foreign-invested enterprises and foreign
enterprises in strict accordance with the decision of the State Council and relevant provisions of the revised “Interim Regulations
of the People’s Republic of China Governing Land Use Tax in Cities and Towns”.

State Administration of Taxation

June 1, 2007

State Administration of Taxation
2007-06-01

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Federal Acts

Act on Proceedings in Family Matters and in Matters of Non-contentious Jurisdiction

Act on Occupational Physicians, Safety Engineers and Other Occupational Safety Specialists

OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION ABOUT HOW TO DEAL WITH THE TAX ISSUES CONCERNING THE INCOMES OBTAINED BY FOREIGN-FUNDED ENTERPRISES ENGAGING IN REAL ESTATE DEVELOPMENT FROM LEASEBACK BUSINESS

INTERPRETATION OF THE SUPREME PEOPLE’S COURT ON SOME MATTERS ABOUT THE APPLICATION OF LAW IN THE TRIAL OF CIVIL CASES INVOLVING UNFAIR COMPETITION

ANNOUNCEMENT NO. 6, 2007 OF MINISTRY OF COMMERCE ON PUBLICIZING THE LIST OF THE MOST COMPETITIVE BRANDS IN 2006

INTERPRETATION OF THE RELEVANT MATTERS OF THE SUPPLEMENTARY PROVISIONS NO.2 TO THE PROVISIONS ON FOREIGN INVESTMENT IN THE CIVIL AVIATION INDUSTRY

CIRCULAR OF THE MINISTRY OF COMMERCE ON ENTRUSTING WEIHAI ECONOMIC-TECHNOLOGICAL AREA TO EXAMINE, APPROVE AND ADMINISTER THE RELEVANT WORK ON FOREIGN-INVESTED ENTERPRISES IN SOME SERVICE TRADE SECTORS

SOME OPINIONS OF THE MINISTRY OF EDUCATION CONCERNING FURTHER INTENSIFYING THE ABSORPTION OF EXCELLENT PEOPLE WITH OVERSEAS EDUCATIONAL BACKGROUND

REAL RIGHT LAW OF THE PEOPLE’S REPUBLIC OF CHINA

ANNOUNCEMENT NO.11, 2007 OF MINISTRY OF COMMERCE ON PROMULGATING FINAL ARBITRATION ON ANTI-DUMPING INVESTIGATION ON NONYL PHENOL ORIGINATED FROM INDIA AND TAIWAN REGION

INTERIM MEASURES FOR THE ADMINISTRATION OF FUTURES INVESTOR SAFEGUARD FUNDS

OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION ABOUT LEVY OF URBAN LAND USE TAX OF FOREIGN-INVESTED ENTERPRISES AND FOREIGN ENTERPRISES

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7