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

INTERIM MEASURES ON AWARDING TIPP-OFFS AGAINST TAX-RELATED ILLEGAL ACTS OF TAXPAYERS

Decree of the State Administration of Taxation and the Ministry of Finance

No. 18

The Interim Measures on Awarding Tipp-offs against Tax-related Illegal Acts of Taxpayers have been deliberated and adopted by the
State Administration of Taxation and the Ministry of Finance. They are hereby promulgated and shall go into effect as of March 1,
2007.
Director General of the State Administration of Taxation: Xie Xuren

Minister of the Ministry of Finance: Jin Renqing

January 13, 2007

Interim Measures on Awarding Tipp-offs against Tax-related Illegal Acts of Taxpayers

Article 1

For the purpose of encouraging tip-offs against tax-related illegal acts, these Measures are constituted according to the related
provisions in the Law of the People’s Republic of China on Administering Tax Levy and the Detailed Rules for the Implementation thereof.

Article 2

The term “tax-related illegal acts” as mentioned in these Measures refers to the tax-related illegal acts committed by taxpayers
or withholding agents and other tax-related illegal acts as specified in these Measures.

A tip-off against tax-related illegal acts shall be an act of an entity or individual who does so at its/his free will.

Article 3

In case an entity or individual tips off a tax-related illegal act to the taxation authority in its or his true name and the fact
is found to be true upon verification, the taxation authority may, on the basis of its/his contribution, award the entity or individual
according to these Measures. An entity or individual may not be awarded under any of the following circumstances:

(1)

The informant tips off anonymously or is unable to prove its/his true identity;

(2)

The informant is unable to provide any clue on the tax-related illegal act, or acquires the evidence on the tax-related illegal act
by means of theft, fraud, or by other means that are prohibited by any law or administrative regulation;

(3)

The contents of the tip-off are vague and lack factual basis;

(4)

The clue provided by the informant has nothing with the tax-related illegal act as investigated and punished by the taxation authority;

(5)

The tax-related illegal act tipped off by the informant has been found by or is under the investigation of the taxation authority;

(6)

The entity or individual committing the tax-related illegal act has reported the taxation authority the said act before it is tipped
off;

(7)

A functionary of a state organ obtains information through taking advantage of his power so as to tip off a tax-related illegal act;

(8)

The informant gets information on a tax-related illegal act from a state organ or a functionary thereof to tip off the said act; and

(9)

Other circumstances, under which the informants may not be awarded, are prescribed by the State Administration of Taxation.

Article 4

The funds, which are used by the state taxation administration to reward tip-offs, shall be truthfully listed as expenditures from
the special funds for disposing cases under taxation inspection, which are allotted by the Ministry of Finance to the State Administration
of Taxation. The funds, which are used by an local taxation administration to reward tip-offs, shall be truthfully listed as expenditures
from the special funds for disposing cases under taxation inspection, which are allotted to the local taxation administration at
the same level by the public finance department (bureau) of the related province, autonomous region, municipality directly under
the Central Government, or city specifically designated in the state plan.

The allotment of the funds for rewarding tip-offs shall be conducted in accordance with the related provisions on administering state
treasury.

Article 5

The funds for rewarding tip-offs shall be jointly administered by the inspection office and the accounting department under the competent
taxation authority, namely, they shall be used by the inspection office, while be paid and supervised by the accounting department
under the competent taxation authority.

The state taxation administrations and the local taxation administrations of all provinces, autonomous regions, municipalities directly
under the Central Government, or cities specifically designated in the state plan shall prepare an annual report on the use of the
funds for rewarding tip-offs, and shall report it to the State Administration of Taxation by the end of March of the next year. The
information on the use of the funds for rewarding tip-offs by the local taxation administrations shall be circularized to the public
finance department (bureau) at the same level at the same time.

Article 6

After a tipped-off tax-related illegal act is put on file and verified by the taxation authority and after the tax amount has been
lawfully turned over to the treasury, the reward shall, on the basis of the limitation of the tip-off in the case, the details of
the clue and evidence in the tip-off materials, the conformity of the contents of the tip-off with the verified contents, and the
amount of taxes turned over to the treasury, be calculated and paid to the informant at the following rates:

(1)

If the amount of taxes turned over to the treasury is 100 million Yuan or more, a reward of up to 100,000 Yuan shall be paid;

(2)

Where the amount of taxes turned over to the treasury is not less than 50 million Yuan but less than 100 million Yuan, a reward of
up to 60,000 Yuan shall be paid;

(3)

Where the amount of taxes turned over to the treasury is not less than 10 million Yuan but less than 50 million Yuan, a reward of
up to 40,000 Yuan shall be paid;

(4)

Where the amount of taxes turned over to the treasury is not less than 5 million Yuan but less than 10 million Yuan, a reward of up
to 20,000 Yuan shall be paid;

(5)

Where the amount of taxes turned over to the treasury is not less than 1 million Yuan but less than 5 million Yuan, a reward of up
to 10,000 Yuan shall be paid; and

(6)

Where the amount of taxes turned over to the treasury is less than 1 million Yuan, a reward of up to 5000 Yuan shall be paid.

Article 7

In case a tipped-off taxpayer uses VAT to offset the tax amount, or uses other overpaid or refundable tax amount to offset the payable
taxes under investigation, the tax amount shall be considered to have been turned over to the treasury.

In case there is no payable tax after a tipped-off tax-related illegal act is verified and handled, the reward shall be calculated
and paid at the rates prescribed in Article 6 of these Measures on the basis of the amount of fine turned over to the treasury.

In case the tipped-off taxpayer is bankrupt or encounters the conditions prescribed in laws and administrative regulations on terminating
enforcement, as a result, the tax amount or the fine is unable to be totally turned over to the treasury, the reward shall be calculated
and paid at the rates prescribed in these Measures on the basis of the amount of taxes turned over to the treasury or the amount
of fine.

Article 8

In case an informant tips off an act of falsely issuing special VAT invoices or other invoices which may be used to defraud any exportation-related
tax refund or to offset any tax, the reward shall be calculated and paid on the basis of the amount of tax verified to be filled
in the falsely issued invoices at the rates prescribed in Article 6 of these Measures.

Article 9

In case such acts as forging, altering, trading off, stealing or defrauding special VAT invoices or other invoices which may be used
to defraud any exportation-related tax refund or offset tax amount are tipped by an informant, the reward shall be calculated and
paid at the following rates:

(1)

Where no less than 10,000 of the above said invoices are found to be forged, altered, traded off, stolen or defrauded, a reward of
up to 100,000 Yuan shall be paid;

(2)

Where no less than 6,000 but less than 10,000 of the above said invoices are found to be forged, altered, traded off, stolen or defrauded,
a reward of up to 60,000 Yuan shall be paid;

(3)

Where no less than 3,000 but less than 6,000 of the above said invoices are found to be forged, altered, traded off, stolen or defrauded,
a reward of up to 40,000 Yuan shall be paid;

(4)

Where no less than 1,000 but less than 3,000 of the above said invoices are found to be forged, altered, traded off, stolen or defrauded,
a reward of up to 20,000 Yuan shall be paid;

(5)

Where no less than 1,00 but less than 1,000 of the above said invoices are found to be forged, altered, traded off, stolen or defrauded,
a reward of up to 10,000 Yuan shall be paid; and

(6)

Where less than 100 of the above said invoices are found to be forged, altered, traded off, stolen or defrauded, a reward of up to
5,000 Yuan shall be paid.

In case some invoices other than those specified in the preceding paragraph are found to be forged, altered, traded off, stolen or
defrauded, a reward of no more than 50,000 Yuan shall be paid; the specific amounts, rates and scope of approval power on the tip-off
rewards shall be determined by the taxation authority of each province, autonomous region, municipality directly under the Central
Government, and city specifically designated in the sate plan according to these Measures and by considering the local actual circumstances.

Article 10

In case a such acts as illegally printing, lending, trading off, altering or forging tax payment vouchers are tipped off by an informant,
the reward shall be calculated and paid at the following rates:

(1)

Where no less than 100 tax payment vouchers are found to be illegally printed, lent, traded off, altered or forged, or the specified
tax amount is 500,000 Yuan or more, a reward of up to 10,000 Yuan shall be paid;

(2)

Where no less than 50 but less than 100 tax payment vouchers are found to be illegally printed, lent, traded off, altered or forged,
or the specified tax amount is not less than 200,000 Yuan but less than 500,000 Yuan, a reward of up to 5,000 Yuan shall be paid;
and

(3)

Where less than 50 tax payment vouchers are found to be illegally printed, lent, traded off, altered or forged, or the specified tax
amount is less than 200,000 Yuan, a reward of up to 2,000 Yuan shall be paid.

Article 11

In case the tax-related illegal act of a tipped-off person is investigated and handled by the state taxation administration and the
local taxation administration, the total amount of reward for the tip-off shall be calculated at the rates prescribed in Article
6 of these Measures, and be separately paid by the state taxation administration and the local taxation administration at their
respective proportions in the tax amount turned over to the treasury, and on the basis of the total tax amount confiscated by the
state taxation administration and the local taxation administration into the treasury; the total amount of reward for a tip-off calculated
and paid by the state taxation administration and the local taxation administration may not exceed 100,000 Yuan.

Article 12

In case two or more reward rates prescribed in Articles 6 through 10 of these Measures may apply to a same case, the tip-off reward
amounts shall be calculated separately, provided that the total amount of rewards for the tip-off may not be more than 100,000 Yuan.

Article 13

In case the same tax-related illegal act is separately tipped off by two or more informants, the reward shall be paid to the earliest
informant who complies with these Measures. The sequence of the tip-offs shall be determined in accordance with the time of registration
conducted by the taxation authorities in charge of the investigation and punishment to accept the tip-offs.

In case the evidence provided by an informant other than the earliest informant, plays a direct role to verify the tax-related illegal
act, the said other informant may be awarded on a case-by-case basis.

The total amount of rewards calculated and paid to the informants prescribed in the preceding two paragraphs may not be more than
100,000 Yuan.

Article 14

The informant tipping off a tax-related illegal act may apply for a tip-off reward to the taxation authority.

The tip-off reward shall be paid by the taxation authority in charge of the investigation and punishment of the tax-related illegal
act.

Article 15

After a taxation authority has put a tipped-off tax-related illegal act on file, has verified the facts and punished the violator,
and has lawfully turned over the tax amount or the fine to the treasury, the center of tip-offs against tax-related illegal acts
shall make a Form on Examining and Approving the Reward to the Tip-off against the Taxpayer’s Tax-related Illegal Act on the basis
of the informant’s written application and his contribution, propose the person to be awarded and the reward amount, send a Notification
on the Reward to the Tip-off against the Taxpayer’s Tax-related Illegal Act after examining and approving the reward to the informant
within the prescribed scope of power and procedures, and inform the informant to claim the reward at the designated place. The Form
on Examining and Approving the Reward to the Tip-off against the Taxpayer’s Tax-related Illegal Act shall be maintained by the center
of tip-offs against tax-related illegal acts as a confidential document for archiving.

The center of tip-offs against tax-related illegal acts shall fill out the Accounting Voucher on Claiming the Reward to the Tip-off
against the Taxpayer’s Tax-related Illegal Act, and claim the tip-off reward from the accounting office. The accounting voucher only
needs to indicate the case number, name of the case, name of the tipped-off person, amount of reward for the tip-off, and signatures
of the approver and the payee, while it is not necessary to indicate the contents on tip-off and the informant’s identity and name.

Article 16

An informant shall bring his own identity card or other valid certificate to claim the reward at the designated place within 90 days
as of receipt of the reward notification. If the informant fails to claim the reward within the time limit, he shall be deemed to
have waived the reward.

In case the same tax-related illegal act is jointly tipped off, the reward shall be claimed by the first signatory, and be distributed
with other signatories through negotiation.

Article 17

In case the informant or the first signatory of a joint tip-off is unable to go to the place designated by the taxation authority
in person for claiming the reward, he may entrust someone else to claim it on his behalf; the proxy shall claim the reward upon presenting
the entrusting party’s attorney power, identity card or other valid certificate and his own identity card or other valid certificate.

In case the informant is an entity, it may entrust its staff member to claim the reward on its behalf, and the proxy shall go through
the procedures for claiming the reward at the place designated by the taxation authority upon presenting the entrusting party’s attorney
power, his own identity card and job certificate.

Article 18

When claiming the reward, an informant or the proxy shall sign his name on the Special Voucher on Paying the Reward to the Tip-off
against the Taxpayer’s Tax-related Illegal Act”, and indicate the number of his identity card or other valid certificates as well
as the paying entity.

The Special Voucher on Paying the Reward to the Tip-off against the Taxpayer’s Tax-related Illegal Act and the principal’s power of
attorney shall be maintained by the center of tip-offs against tax-related illegal acts as a confidential document for archiving.

Article 19

The center of tip-offs against tax-related illegal acts may, when paying a tip-off reward, briefly tell the informant of the investigation
and punishment on the tipped-off tax-related illegal act as required the informant, provided that it may not tell the informant of
any information on the investigation and punishment of the tax-related illegal act other than the clue of the tip-off, nor shall
it provide the decision on taxation punishment (penalty) or any related material on the case.

Before the investigation and punishment on a tipped-off tax-related illegal act is finalized, the taxation authority may not tell
the specific information on the investigation and punishment to the informant.

Article 20

A taxation authority shall make a strict rigorous before paying the tip-off reward. If it neglects its duties or resorts to fraud
for private purposes, as a result the reward is defrauded, the persons concerned shall be subject to liabilities in accordance with
law besides that the reward shall be confiscated.

Article 21

In case an informant makes particularly excellent contributions, the taxation authority may, pay corresponding spiritual reward in
addition to paying material reward, provided that it may not publicize the commendation and propaganda until obtaining the a written
consent from the informant in advance.

Article 22

The state taxation administration of each province, autonomous region, municipality directly under the Central Government and city
specifically designated in the sate plan shall constitute specific provisions according to these Measures.

The local taxation administration of each province, autonomous region, municipality directly under the Central Government and city
specifically designated in the state plan shall, jointly with the public finance department (bureau) at the same level, constitute
specific provisions according to these Measures.

Article 23

The State Administration of Taxation shall be responsible for making the formats of the Form on Examining and Approving the Reward
to the Tip-off against the Taxpayer’s Tax-related Illegal Act, the Notification on the Reward to the Tip-off against the Taxpayer’s
Tax-related Illegal Act, the Accounting Voucher on Claiming the Reward to the Tip-off against the Taxpayer’s Tax-related Illegal
Act, and the Special Voucher on Paying the Reward to the Tip-off against the Taxpayer’s Tax-related Illegal Act.

Article 24

The terms “not less than” and “not more than” as mentioned in these Measures shall include the number mentioned.

Article 25

The State Administration of Taxation and the Ministry of Finance shall be responsible for interpreting these Measures.

Article 26

These Measures shall go into effect as of March 1, 2007. The Measures on Awarding Tip-offs against Tax-related Illegal Cases printed
and distributed by the State Administration of Taxation on December 15, 1998 shall be concurrently abolished.

The State Administration of Taxation, the Ministry of Finance
2007-01-13

CIRCULAR OF GENERAL OFFICE OF MINISTRY OF COMMERCE ON CONTINUING TO CARRY OUT WORK OF ATTESTATION OF “CHINA LONG-TIME HONORED BRAND”

Circular of General Office of Ministry of Commerce on Continuing to Carry out Work of Attestation of “China Long-time Honored Brand”

Shang Gai Zi [2007] No. 8

Departments of commercial administration of all provinces, autonomous regions, municipalities, cities specially designated in the
state plan and Xinjiang Production and Construction Corps:

For purpose of revitalizing China Long-time Honored Brand, Ministry of Commerce decides to continue to carry out work of attestation
of “China Long-time Honored Brand”, related requirements are now notified as follows:

Earnestly organize declaration;

Strictly examine and approve;

Going deep to investigate;

Well carry out work of supervision and administration.

Appendix:

Application of “China Long-time Honored Brand”

Model Declaration Documents of Departments of Commercial Administration of Prefecture-level City

Model Declaration Documents of Provincial Departments of Commercial Administration

Summary Table of “China Long-time Honored Brand” Declaration

General Office of Ministry of Commerce

Jan 30, 2007

General Office of Ministry of Commerce
2007-01-30

REGULATIONS ON ADMINISTERING COMMERCIAL FRANCHISES

Order of the State Council

No. 485

The Regulations on Administering Commercial Franchises have been adopted at the 167th executive meeting of the State Council on January
31, 2007. They are hereby promulgated and shall go into effect on May 1, 2007.
Premier Wen Jiabao

February 6, 2007

Regulations on Administering Commercial Franchises
Chapter I General Rules

Article 1

For the purpose of regulating commercial franchises, promoting the healthy and orderly development of the commercial franchise industry
and maintaining the market order, the present Regulations are formulated.

Article 2

The present Regulations shall apply to the activities of engaging in commercial franchise within the territory of the People’s Republic
of China.

Article 3

The term “commercial franchise” (hereinafter referred to as “franchise”) as mentioned in the present Regulations means such business
operations by which an enterprise that possesses a registered trademark, enterprise mark, patent, know-how or any other business
resource (hereinafter referred to as “franchiser”) confers the aforesaid business resource to any other business operator (hereinafter
referred to as “franchisee”) through contract, and the franchisee conducts business operations under the uniform business model as
stipulated by the contract, and pay franchising fees to the franchiser.

No entity or individual other than enterprises may conduct franchise business as a franchiser.

Article 4

For engagement in franchise activities, the principles of free will, fairness, honesty and good faith shall be followed.

Article 5

The commerce department under the State Council shall take charge of supervising and administrating the franchise industry all over
the country in accordance with the present Regulations. The commerce department of each province, autonomous region, or municipality
directly under the Central Government and the commerce department of the people’s government of the cities divided into districts
shall take charge of supervising and administrating the franchise industry within its own jurisdiction in accordance with the present
Regulations.

Article 6

Any entity or individual is enpost_titled to tip off any act with violation of the present Regulations to the commerce department, and
the commerce department shall, after receiving such tip-off, handle it promptly.

Chapter II Franchised Operations

Article 7

For engaging in franchise activities, a franchiser shall have a mature business model and be capable of providing the franchisee
with consecutive business guidance, technical support, business training and other services.

A franchiser for engaging in franchise activities shall have two direct sales stores at least, and have conducted such business for
more than one year.

Article 8

A franchiser shall, within 15 days after the subscription of a franchise contract for the first time, submit it to the commerce department
for archival filing in accordance with the present Regulations. In case a franchiser engages in any franchised operations within
the scope of a province, autonomous region, or municipality directly under the Central Government, it shall report to the commerce
department of the province, autonomous region or municipality directly under the Central Government for archival filling; and in
case a franchiser engages in any franchised operations within the scope of two or more provinces, autonomous regions, or municipalities
directly under the Central Government, it shall report to the commerce department under the State Council for archival filling.

A franchiser shall, for the archival filing, submit the commerce department the following documents and materials:

(1)

a copy of the business license or enterprise registration certificate;

(2)

a sample of the franchise contract;

(3)

a brochure for franchised operations;

(4)

a market plan;

(5)

a written commitment and related certification materials testifying that the provisions in Article 7 of the present Regulations are
satisfied ; and

(6)

other documents and materials as prescribed by the commerce department under the State Council.

Where the product or service for franchise cannot be dealt in until it is approved, the franchiser shall also submit a related approval
document.

Article 9

The commerce department shall conduct the archival filing and notify the franchiser within 10 days after its receipt of the documents
and materials as provided for in Article 8 of the present Regulations. Where the documents or materials reported by the franchiser
are incomplete, the commerce department may require the franchiser to supplement related documents or materials within 7 days.

Article 10

The commerce department shall publish a name list of franchisers, which have been put on archives, on the government website, and
timely renew the name list.

Article 11

For engaging in franchise activities, the franchiser and the franchisee shall conclude a written franchise contract.

A franchise contract shall cover the main contents as follows:

(1)

basic information in respect of the franchiser and the franchisee;

(2)

contents and term of the franchise;

(3)

type, amount and payment method for the franchising fees;

(4)

concrete contents and methods for providing business guidance, technical support, business training and other services;

(5)

quality, standards for the product or service and guaranty measures;

(6)

sales promotion, advertising and publicity in respect of the product or service;

(7)

the protection of consumers’ rights and interests and the assumption of compensation liabilities in the franchise;

(8)

alteration, release and termination of the franchise contract;

(9)

liabilities for breach of the contract;

(10)

dispute resolution methods; and

(11)

other matters as agreed upon by the franchiser and the franchisee.

Article 12

It shall be stipulated in the franchise contract concluded between the franchiser and the franchisee that the franchisee may unilaterally
terminate the contract within a certain term after the franchise contract has been signed.

Article 13

Unless it is otherwise agreed upon by the franchisee, the franchise term as stipulated in the franchise contract may not be less
than three years.

When the franchiser and the franchisee renew the franchise contract, the preceding paragraph may not apply.

Article 14

A franchiser shall provide its franchisees with a brochure for franchised operations, and shall continuously provide business guidance,
technical support and business trainings, etc. to the franchisees in accordance with the stipulated contents and methods.

Article 15

The quality and standards of the product or service for franchise shall comply with the laws, administrative regulations and the
related requirements of the State.

Article 16

Where a franchiser requires a franchisee to pay expenses before the subscription of the franchise contract, it shall explain to the
franchisee in respect of the purposes of these expenses and the conditions and method for the refund of these expenses in written
form.

Article 17

The promotion and publicity expenses as collected by a franchiser from a franchisee shall be used for the purposes as agreed upon
in the contract. The information in respect of the use of promotion and publicity expenses shall be released to the franchisee in
a timely manner.

A franchiser may not resort to frauds or misleading in the promotion or publicity, and the advertisements it publicized may not include
any publicity content that any franchisee has gained proceeds from engaging in the franchise.

Article 18

A franchisee may not transfer the franchise to anyone else without consent of the franchiser.

A franchisee may not divulge the business secret of the franchiser to which it has accessed to anyone else or allow anyone else to
use it.

Article 19

A franchiser shall report to the commerce department the information in respect of the subscription of franchise contracts in the
previous year in the first quarter every year.

Chapter III Information Disclosure

Article 20

A franchiser shall set up and carry out a perfect information disclosure system in accordance with the provisions as prescribed by
the commerce department of the State Council.

Article 21

A franchiser shall provide the franchisee with the information as prescribed in Article 22 of the present Regulations and the text
of the franchise contract in written form at least 20 days before the subscription of a franchise contract.

Article 22

A franchiser shall provide the franchisee with the information as follows:

(1)

the name, domicile, legal representative, registered capital, business scope of the franchiser and basic information in respect of
the franchised operations;

(2)

the basic information in respect of the registered trademark, enterprise mark, patent, know-how and business model of the franchiser;

(3)

type, amount of franchising fees and payment method (including whether the guaranty bonds should be collected as well as the conditions
and methods for refunding guaranty bonds);

(4)

prices and requirements for providing the franchisee with products, services and equipments;

(5)

specific contents of business guidance, technical support, business training and other services to be continuously provided to the
franchisee as well as the providing methods and implementation plans;

(6)

concrete measures for guiding and supervising the business activities of the franchisee;

(7)

the investment budget for the franchise outlet;

(8)

the quantity, distribution and business evaluation of franchisees currently existing within the territory of China;

(9)

digests of the financial statements and audit reports for the recent two years as audited by the accountant firm;

(10)

the conditions in respect of franchise-related lawsuits and arbitration for the recent five years;

(11)

in case the franchiser or its legal representative has any record of major illegal business operations; and

(12)

other information as prescribed by the commerce department under the State Council.

Article 23

A franchiser shall provide its franchisees with authentic, accurate and complete information, and may not conceal any related information
or provide false information.

Where any significant change has occurred to the information provided by a franchiser to any of its franchisees, the franchiser shall
timely notify it to the franchisee.

If a franchiser conceals any related information or provides false information, the franchisee may terminate the franchise contract.

Chapter IV Legal Liabilities

Article 24

Where a franchiser does not satisfy the requirements as prescribed in Paragraph 2 of Article 7 of the present Regulations but engages
in the franchise activities, the commerce department shall order it to make corrections, confiscate its illegal proceeds, impose
a fine of more than 100,000 Yuan but less than 500,000 Yuan thereon, and make an announcement in respect of it.

Where an entity or individual, which does not possess an enterprise statues, engages in franchise activities as a franchiser, the
commerce department shall order it/him to cease the illegal business operations, confiscate its/his illegal proceeds, and impose
a fine of more than 100,000 Yuan but less than 500,000 Yuan thereon.

Article 25

Where a franchiser fails to put itself on the archives of the commerce department in accordance with Article 8 of the present Regulations,
the commerce department shall order it to do so within a fixed period, and impose a fine of more than 10,000 Yuan but less than 50,000
Yuan thereon; and in case it fails to do so within the fixed period, it shall be fined more than 50,000 Yuan but less than 100,000
Yuan, and an announcement shall also be delivered.

Article 26

Where a franchiser violates Article 16 or 17 in the present Regulations, the commerce department shall order it to make corrections,
and may impose a fine of less than 10, 000 Yuan; in the case of serious circumstances , it shall be fined more than 10,000 Yuan but
less than 50,000 Yuan, and an announcement shall also be delivered.

Article 27

Where a franchiser violates Paragraph 2 of Article 17 in the present Regulations, the commerce department shall order it to make
corrections, and impose a fine of more than 30,000 Yuan but less than 100,000 Yuan thereon; in the case of serious circumstances,
it shall be fined more than 100,000 Yuan but less than 300,000 Yuan, and an announcement shall also be delivered; and if a crime
is committed, it shall be subject to criminal liabilities.

Where a franchiser conducts frauds or misleading by making use of advertisements, it shall be punished in accordance with the related
provisions in the Advertising Law.

Article 28

Where a franchiser violates Article 21 or 23 of the present Regulations, and a franchisee tips it off to the commerce department
and, upon verification, the tip-off is found to be true, the commerce department shall order the franchiser to make corrections and
impose a fine of more than 10,000 Yuan but less than 50,000 Yuan thereon; and in the case of serious circumstances, it shall be fined
more than 50,000 Yuan but less than 100,000 Yuan, and an announcement shall also be delivered.

Article 29

Where any entity or individual cheats the property of someone else in the name of franchise and commits a crime, it or he shall be
subject to criminal liabilities; and in case no crime is committed, it or he shall be punished by the pubic security organ in accordance
with the Law of the People’s Republic of China on Public Security Administrative Punishments.

Where any entity or individual engages in pyramid selling in the name of franchise, it or he shall be punished in accordance with
the Regulation on Prohibiting the Pyramid Selling.

Article 30

Where any functionary of the commerce department abuses his authorities, neglects his duties or resorts to cheats and a crime is
committed, he shall be subject to criminal liabilities; and if no crime is committed, he shall be punished in accordance with law.

Chapter V Supplementary Rules

Article 31

The license of trademarks and patents in relation to the franchised operations shall be handled in accordance with the laws and administrative
regulations on trademarks and patents.

Article 32

Related associations and organizations shall, under the guidance of the commerce department of the State Council, set down the provisions
on franchises in accordance with the present Regulations, intensify guild self discipline, and provide related services to the parties
involved in the franchise.

Article 33

Any franchiser engaging in franchise activities before the implementation of the present Regulations shall be put on the archives
of the commerce department in accordance with the present Regulations; and where it fails to do so within the time limit, it shall
be punished in accordance with Article 25 of the present Regulations.

The franchiser prescribed in the preceding paragraph does not apply to the provisions in Paragraph 2 of Article 7 of the present
Regulations.

Article 34

The present Regulations shall go into effect as of May 1, 2007.

The State Council
2007-02-06

CIRCULAR OF THE MINISTRY OF COMMERCE ON ENTRUSTING XIAOSHAN 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 Xiaoshan 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. 16

Xiaoshan Municipal People’s Government and Xiaoshan 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 Xiaoshan 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 Xiaoshan 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 Xiaoshan 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.

Xiaoshan Economic-Technological Area, the management system of which needs to be improved, has not set up an independent finance department
yet. Xiaoshan 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

ANNOUNCEMENT OF MINISTRY OF COMMERCE ON PROMULGATING GUIDELINES ON ONLINE BUSINESS (PROVISIONAL)

Announcement of Ministry of Commerce on Promulgating Guidelines on Online Business (Provisional)

[2007] No. 19

For the purpose of promoting the healthy development of online business, gradually standardizing the online business operation and
preventing business risks, the Guidelines on Online Business (Provisional) is now promulgated. Please act accordingly.

Ministry of Commerce

March 6, 2007

The Ministry of Commerce
2007-03-06

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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

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

INTERIM MEASURES ON AWARDING TIPP-OFFS AGAINST TAX-RELATED ILLEGAL ACTS OF TAXPAYERS

CIRCULAR OF GENERAL OFFICE OF MINISTRY OF COMMERCE ON CONTINUING TO CARRY OUT WORK OF ATTESTATION OF “CHINA LONG-TIME HONORED BRAND”

REGULATIONS ON ADMINISTERING COMMERCIAL FRANCHISES

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

ANNOUNCEMENT OF MINISTRY OF COMMERCE ON PROMULGATING GUIDELINES ON ONLINE BUSINESS (PROVISIONAL)

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