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PROVISIONS ON SAFETY TRAINING FOR PRODUCTION AND OPERATION ENTITIES

State Administration of Work Safety

Order of the State Administration of Work Safety

No.3

The Provisions on Safety Training for Production and Operation Entities adopted at the executive meeting of the director general of
the State Administration of Work Safety on December 28, 2005 upon deliberation, are hereby promulgated, and shall enter into effect
as of the day of March 1, 2006.

Director General of State Administration of Work Safety, Li Yizhong

January 17, 2006

Provisions on Safety Training for Production and Operation Entities

Chapter I General Provisions

Article 1

The present Provisions are formulated in accordance with the Work Safety Law as well as other relevant laws and administrative regulations
for the purpose of strengthening and regulating the safety training work for production and operation entities, improving the safety
quality of practitioners, preventing accidents of death and injuries, and alleviating occupational hazards.

Article 2

The present Provisions shall be applicable to the safety training for the practitioners in the production and operation entities of
industrial, mining and commercial/trading sectors (hereinafter referred to as the production and operation entities).

Article 3

A production and operation entity shall be responsible for the safety training work of its practitioners.

A production and operation entity shall establish and perfect the system of safety training according to the Work Safety Law, the
relevant laws and administrative regulations, as well as the present Provisions.

Article 4

The principle responsible persons, work safety administrative personnel, special operational staff, and other practitioners shall
be subject to safety training in the production and operation entity.

The practitioners in a production and operation entity shall take in the safety training, familiar with work safety regulations and
systems and safety operational procedures, possess essential work safety knowledge, master safety manipulative skills of their own
posts, and strengthen their abilities of preventing accidents, controlling occupational hazards and dealing with emergencies.

Any practitioner without qualification of work safety training may not go to his post,

Article 5

The State Administration of Work Safety (hereinafter referred to as the SAWS) shall guide the safety training work of the whole country,
and supervise and administrate the safety training work of the whole country in accordance with law.

The concerned competent departments of the State Council shall guide and supervise the safety training work of their own industries
pursuant to their own functions, and formulate implementation measures according to the present Provisions.

The State Administration of Coal Mine Safety (hereinafter referred to as SACMS) shall give guidance and supervision on the coal mine
safety training work of the whole country.

The departments of work safety supervision and administration at all levels and the coal mine safety supervision authorities (hereinafter
referred to as supervisory and administrative authorities of work safety) shall, pursuant to their own functions, conduct supervision
and administration on the safety training work of production and operation entities according to law.

Chapter II Safety Training of the Main Principle and the Work Safety Administrative Personnel

Article 6

The main principle in charge of a production and operation entity and the work safety management personnel thereof shall take in safety
training, and shall possess work safety knowledge and management ability applicable to the production and operation activities undertaken
by them.

The main principle in charge of such production and operation entities as coal mines, non-coal mines, dangerous chemicals, and fireworks
and firecrackers, and etc. and the work safety management personnel thereof shall accept special safety training, and shall be proved
to be qualified through the examination of supervisory and administrative authorities of work safety on their work safety knowledge
and management abilities and obtained the safety qualification certificate before assuming their posts.

Article 7

The safety training for the main principle in charge of a production and operation entity shall include the following contents:

1.

The work safety guidelines and policies of the state and the relevant work safety laws, regulations, rules and standards;

2.

Essential knowledge on work safety management, work safety technology, and work safety professional knowledge;

3.

The relevant provisions on management of major hazard sources, prevention of major accidents, emergency management, rescue organizations,
and investigation and disposal of accidents;

4.

Occupational hazards and prevention measures thereof;

5.

Advanced work safety management experiences in home and abroad;

6.

Analysis on typical accidents and emergency succor cases; and

7.

Other necessary training contents.

Article 8

The safety training for the work safety administrative personnel of a production and operation entity shall include the following
contents:

1.

The work safety guidelines and policies of the state and the relevant work safety laws, regulations, rules and standards;

2.

Knowledge concerning work safety management, work safety technology, and occupational health;

3.

Statistics and report on accidents of casualty accidents and methods for investigation and handling of occupational hazards;

4.

Compilation of emergency management and emergency preliminary plan and the contents and requirements for emergency disposal;

5.

Advanced work safety management experiences both in home and abroad;

6.

Analysis on typical accidents and emergency succor cases; and

7.

Other necessary training contents.

Article 9

For the main principle and work safety administrative personnel, the time on preliminary safety training shall be no less than 32
class hours. And the retraining time each year shall be no less than 12 class hours.

The time on safety qualification training for the main principle in charge of such production and operation entities as coal mines,
non-coal mines, dangerous chemicals, and fireworks and firecrackers, and etc. and the work safety administrative personnel thereof
shall be no less than 48 class hours, and the retraining time each year shall be no less than 16 class hours.

Article 10

The safety training for the main principle in charge of a production and operation entity and the work safety administrative personnel
thereof shall be carried out according to the safety training syllabus formulated by supervisory and administrative authorities of
work safety.

The safety training syllabus and the examination standards for the main principle in charge of such production and operation entities
as non-coal mines, dangerous chemicals, and fireworks and firecrackers, and etc. and the work safety administrative personnel thereof
shall be formulated by the SAWS uniformly.

The safety training syllabus and the examination standards for the main principle in charge of coal mines and the work safety administrative
personnel thereof shall be formulated by the SACMS.

The safety training syllabus and the examination standards for the main principle in charge of the production and operation entities
other than the coal mines, non-coal mines, dangerous chemicals, and fireworks and firecrackers industries and the work safety management
personnel thereof shall be formulated by the supervisory and administrative authorities of work safety of the provinces, autonomous
regions, and municipalities directly under the Central Government.

Article 11

The safety qualification training for the main principle in charge of such production and operation entities as coal mines, non-coal
mines, dangerous chemicals, and fireworks and firecrackers, and etc. and the work safety administrative personnel thereof shall be
carried out by the safety training institutions ascertained to be qualified by the supervisory and administrative authorities of
work safety.

Article 12

Passed the examination on safety qualification training, the main principle in charge of such production and operation entities as
coal mines, non-coal mines, dangerous chemicals, and fireworks and firecrackers, and etc. and the work safety administrative personnel
thereof shall be issued safety qualification certificates by the supervisory and administrative authorities of work safety.

The main principle in charge of other production and operation entities and the work safety administrative personnel thereof shall
be issued corresponding conformity certificates of training by the training institutions ascertained to be qualified by the supervisory
and administrative authorities of work safety.

Chapter III Safety Training on Other Practitioners

Article 13

The production and operation entities of coal mines, non-coal mines, dangerous chemicals, and fireworks and firecrackers, and etc.
shall carry out compulsory safety training on post recruits such as temporary workers, contract-based employees, service workers,
rotation-based workers, and agreement-based workers, so as to ensure that they possess the knowledge and skills necessary for safety
operation, self-rescue and mutual rescue and emergency disposal of their posts, and then arrange them to assume their posts.

Article 14

Other practitioners in such production entities as processing and manufacturing shall be subject to three levels’safety training and
education, such as factories (mines), workshops (sections, divisions, teams) as well as teams and groups before assuming their posts.

A production and operation entity shall carry out safety training for other practitioners in accordance with the nature of their jobs,
so as to ensure that they possess knowledge and skills on safety operation and emergency disposal for their posts.

Article 15

The time of pre-job training for post recruits in a production and operation entity shall be no less than 24 class hours.

The time of safety training for post recruits in such production and operation entities as coal mines, non-coal mines, dangerous chemicals,
and fireworks and firecrackers, and etc. shall be no less than 72 class hours, and the time of retraining for them each year shall
be no less than 20 class hours.

Article 16

The contents of pre-job safety training at the level of factories (mines) shall include:

1.

Work safety conditions of the entity itself and the essential work safety knowledge;

2.

Work safety regulations and system, as well as labor disciplines of the entity itself;

3.

Work safety rights and obligations of the practitioners; and

4.

Relevant cases of accidents, and etc.

Besides the aforementioned contents, the safety training at the level of factories (mines) of such production and operation entities
as coal mines, non-coal mines, dangerous chemicals, and fireworks and firecrackers, and etc. shall add contents on emergency rescue
of accidents, drilling of emergency preliminary plan for accidents and the precautious measures thereof, and etc.

Article 17

The contents of pre-job safety training at the level of workshops (sections, divisions, and teams) shall include:

1.

Working environment and hazards factors;

2.

Occupational injuries and casualty accidents that may be suffered from the type of work undertaken;

3.

Safety obligations, operation skills and mandatory standards for the type of work undertaken;

4.

Self-rescue and mutual rescue, emergency rescue method, evacuation and on-site emergency disposal;

5.

Usage and maintenance of safety equipment and facilities, and individual safeguard goods;

6.

Work safety conditions and regulations of its’ own workshop (section, division, and team);

7.

Measures for prevention of accidents and occupational hazards and the safety matters that should be paid attention to;

8.

Relevant cases of accidents; and

9.

Other required training contents.

Article 18

The contents of pre-job safety training at the level of teams or groups shall include:

1.

Safety operational rules of the post;

2.

Matters of safety and occupational sanitation for the linkup and cooperation of the work between posts;

3.

Relevant cases of accidents; and

4.

Other required training contents.

Article 19

When a practitioner is adjusted to another post in one production and operation entity or return to duty after leaving more than one
year, he shall accept safety training at the level of workshops (sections, divisions, or teams) and the level of teams or groups
once again.

When a production and operation entity introduces a new technique, new technology or uses new equipments or new materials, it shall
carry out safety training pertinent to the relevant practitioners once again.

Article 20

In accordance with the relevant laws and regulations of the state, the special operational staff of a production and operation entity
shall accept special safety training, and shall be proved be qualified to pass the examination and to obtain a qualification certificate
of special operation before taking the job.

The scope of special operational staff and the measures on the administration of training and examination shall be formulated separately.

Chapter IV Organization and Implementation of Safety Training

Article 21

The SAWS shall organize, direct, and supervise the safety training work for the main principle in charge of the parent companies (group
companies, or general factories) of the production and operation entities under the Central Government and the work safety administrative
personnel thereof.

The SACMS shall organize, direct, and supervise the safety training work for the main principle in charge of the group companies (parent
companies) of coal mine enterprises under the Central Government and the work safety administrative personnel thereof.

The supervisory and administrative authorities of work safety at the provincial level shall organize, direct, and supervise the training
work for the main principle in charge of the production and operation entities subordinated to the province and the branches, and
subsidiaries of the production and operation entities of industrial, mining and commercial/trading sectors under the Central Government
within their own administrative regions and the work safety administrative personnel thereof; and shall organize, direct, and supervise
the training work for the special operational staff.

The coal mine safety supervision organs at the provincial level shall organize, direct, and supervise the safety training work for
the main principle in charge of the coal mine enterprises within their own administrative regions and the work safety administrative
personnel and special operational staff (including operational staff of special equipment used in underground work of the coal mines)
thereof.

The supervisory and administrative authorities of work safety at the level of a city or county shall organize, direct, and supervise
the safety training work for the main principle in charge of the production and operation entities except the enterprises under the
Central Government, and the production and operation entities subordinated to a province, and the work safety administrative personnel.

Except the main principle, work safety administrative personnel, and special operational staff, the safety training for the practitioners
shall be organized and implemented by the production and operation entities.

Article 22

Any production and operation entity that has the safety training conditions shall put emphasis on self-training, and may entrust a
safety training institution that has the corresponding qualification to carry out safety training to conduct the safety training
for the practitioners.

Any production and operation entity that does not have the safety training conditions shall entrust a safety training authority that
has the corresponding qualification to carry out safety training for the practitioners.

Article 23

A production and operation entity shall bring the safety training work into the annual working program of its own entity, and shall
ensure enough capital for the safety training work of its own entity.

Article 24

A production and operation entity shall establish and perfect safety training archives for its practitioners, and record training
and examination information in detail and accurately.

Article 25

A production and operation entity shall pay salaries and necessary expenses for its practitioners during safety training.

Chapter V Supervision and Administration

Article 26

The supervisory and administrative authorities of work safety shall conduct supervision and inspection on the safety training of production
and operation entities in accordance with law, and urge them to carry out safety training work in accordance with the relevant state
laws and regulations and the present Provisions.

The departments of coal mine work safety supervision and administration of the local people’s governments at or above the county level
shall make supervision and inspection on the safety training conditions of the staff working in the coal mines. The coal mine safety
supervision organs shall conduct supervision and inspection on the safety training of special operational staff of coal mines and
the conditions of going on duty with qualification certificates.

Article 27

The following contents shall be included in the supervision and inspection conducted by the supervisory and administrative authorities
of work safety at all levels on safety training of production and operation entities and the going on duty with qualification certificates
thereof:

1.

The circumstance on formulation and implementation of safety training system and plans;

2.

The circumstance on taking posts with safety qualification certificates of the main principle in charge of such production and operation
entities as coal mines, non-coal mines, dangerous chemicals, fireworks and firecrackers, and etc. and the work safety administrative
personnel thereof; and the circumstance on training for the main principle in charge of other production and operation entities and
those work safety administrative personnel thereof;

3.

The circumstance on taking posts with operation qualification certificate of the special operational staff;

4.

The circumstance on the establishment of safety training archives; and

5.

Other contents of inspection as required.

Article 28

The supervisory and administrative authorities of work safety shall examine the main principle in charge of such production and operation
entities as coal mines, non-coal mines, dangerous chemicals, fireworks and firecrackers, and etc. and the work safety administrative
personnel thereof strictly in accordance with the present Provisions and issue safety qualification certificates for them. The examination
is free of charge.

The relevant personnel of the supervisory and administrative authorities of work safety who are responsible for examination and certificate
issuance may not neglect their duties and abuse power.

Chapter VI Penalties

Article 29

In case any production and operation entity has any of the following acts, the supervisory and administrative authorities of work
safety shall order it to correct within a prescribed time limit, and fine it less than RMB 20,000 Yuan:

1.

Failing to bring the safety training work into the work program of its own entity and ensure the capital needed for the safety training
work;

2.

Failing to establish and perfect safety training archives for the practitioners; or

3.

Failing to pay salaries to the practitioners during the period of safety training and undertake the safety training fees.

Article 30

In case any production and operation entity has any of the following acts, the supervisory and administrative authorities of work
safety shall order it to correct within a prescribed time limit; if it fails to correct within the time limit, it shall be ordered
to stop production and business operation for rectification and be fined less than RMB 20,000 Yuan:

1.

The main principle in charge of such production and operation entities as coal mines, non-coal mines, dangerous chemicals, fireworks
and firecrackers, and etc. and the work safety administrative personnel thereof do not pass the examination as prescribed in the
present Provisions;

2.

The production and operation entities such as non-coal mines, dangerous chemicals, fireworks and firecrackers, and etc. fail to implement
safety training on other practitioners according to the present Provisions;

3.

The production and operation entities such as non-coal mines, dangerous chemicals, fireworks and firecrackers, and etc. fail to notify
the practitioners of the relevant work safety matters according to the facts; or

4.

The special operational staff of a production and operation entity take posts without having a training from a special safety training
institution and obtaining the qualification certificate of operation for special operational staff.

If the department in charge of coal mine work safety supervision and administration of the local people’s government at or above the
county level discovers that any coal mine does not implement safety training on the staff working in a coal mine according to the
present Provisions, it shall order it to correct within a prescribed time limit, and fine it ranging from RMB 100,000 to 500,000
Yuan; if it fails to correct within the time limit, it shall be ordered to stop production and business operation for rectification.

In case any coal mine safety supervision organ discovers that any special operational staff member of a coal mine takes post without
qualification certificate, it shall order it to correct and fine it ranging from RMB 100,000 to 500,000 Yuan; if it fails to correct
within the time limit, it shall order it to stop production and business operation for rectification.

Article 31

In case a production and operation entity has any of the following acts, the supervisory and administrative authorities of work safety
shall give it warning, revoke its safety qualification certificate, and fine it less than RMB 30,000 Yuan:

1.

Fabricating safety training records and archives; or

2.

Cheating the safety qualification certificate.

Article 32

In case the relevant personnel of the supervisory and administrative authorities of work safety neglect duty or misuse power in the
work of the examination and certificate issuance, the supervisory and administrative authorities of work safety at the higher level
or the administrative supervision department shall give them administrative punishments of recording a demerit or recording a special
demerit.

Chapter VII Supplementary Provisions

Article 33

The main principle in charge of a production and operation entity shall refer to the chairman of the board of directors and the general
manager of a limited liability company or a joint stock limited company, and factory directors and managers of other production and
operation entities, directors (of Mining Bureau), and managers – of coal mines (including actual controller), and etc.

The work safety administrative personnel of a production and operation entity shall refer to the principle in charge of work safety
of the production and operation entity, the principle in charge of a work safety management institution and the administrative personnel
thereof, as well as the full-time and part-time work safety administrative personnel of a production and operation entity that hasn’t
established a work safety management institution.

Other practitioners of a production and operation entity shall refer to all the personnel engaged in production and operation activities
in the entity other than the main principle in charge, work safety administrative personnel, and special operational staff, including
other persons in charge, other administrative personnel, technicians, and workers at various posts, and temporary employees.

Article 34

The supervisory and administrative authorities of work safety of the provinces, autonomous regions, and municipalities directly under
the Central Government and the coal mine safety supervision organs at the provincial level may formulate detailed implementation
rules in accordance with the present Provisions and report them to SAWS and SACMS for archival filing.

Article 35

The present Provisions shall come into force as of March 1, 2006.



 
State Administration of Work Safety
2006-01-17

 






NOTICE OF THE STATE ADMINISTRATION OF TAXATION ON FURTHER STRENGTHENING TAX IMPOSITION ADMINISTRATION OF CARGO TRANSPORTATION

The State Administration of Taxation

Notice of the State Administration of Taxation on further Strengthening Tax Imposition Administration of Cargo Transportation

Guo Shui Han [2006] No.102

January 25, 2006

To states tax bureaus, local tax bureaus of all provinces, autonomous region, municipalities directly under the central government,
cities specifically designated in the state plan:

Since the distribution of Notice of the State Administration of Taxation on further Strengthening Tax Imposition Administration of
Cargo Transportation ( Guo Shui Fa [2003] No.121) by the State Administration of Taxation in October 2003, all levels of states tax
bureaus and local tax bureaus have made certain achievement on strengthening tax imposition of cargo transportation through coordinated
efforts. However, judging by the situations reflected by the media and the investigation conducted by the State Administration of
Taxation, problems still exists in cargo transportation, such as loose invoice administration, inferior information acquisition,
unfulfilled auditing and examination, unsmooth operation of the joint examination. For the purpose of further strengthening tax
imposition taxation, the related issues is hereby notified as follows

I.

local tax authorities shall abide by the provisions of in Guo Shui Fa [2003] No.121 to undertake the confirmation of invoice issuing
taxpayer of cargo transportation. For those taxpayers ineligible for the confirmation hereof, local tax authorities shall not give
the confirmation hereof to them, for those having been given the conformation hereof, local tax authorities all revoke the qualification
hereof.

II.

local tax authorities shall conduct strict administration upon invoice administration of cargo transportation, establish and perfect
cargo invoice administrative measures of cargo transportation. As for the newly-established cargo transportation enterprises, local
tax authorities shall come to the place of business of taxpayers to conduct interview investigation, for those cargo transportation
units and individuals having failed to pay business tax, local authorities shall not offer them cargo transportation invoice to prevent
them from abusing transport invoice to attract tax from other regions.

III.

should the invoice issuing taxpayer in cargo transportation have been registered in a document demonstrating the abnormality hereof,
local tax authorities shall cease the sale of transportation tax hereto to prevent them from drawing and utilizing cargo transportation
invoice without declaration of taxpaying.

IV.

the tax declaration and examination shall be put into effect. All levels of local tax authorities, when accepting taxpaying declaration,
shall undertake auditing on the integrity of various taxpaying declaration documents and logic of basic data hereof. Local tax authorities
shall, when accepting business tax declaration from cargo transportation enterprises, identify the declared sum with the total sum
in the invoice list to ensure the declared list is the carrying trade- invoice -counterfoil one after taxpaying. Given problems emerge
in the declaration, local tax authorities shall cope with them promptly to improve sustained authenticity and accuracy hereof.

V.

local tax authorities shall utilize communication means to conduct regular contrast between the sum of business volume and income
of business income tax declared by the taxpayer to prevent from falsified declaration of income, tax evasion and etc.

VI.

the taxpaying assessment of cargo transportation shall be carried out actively. For the enterprises with abnormal utilization of cargo
transportation invoice and declaration, local tax authorities shall deal with them differentially: carry out arranged dialogue or
on-the-spot investigation. Should the tax-collecting is suspected of violation of law and needed to be placed on file, local tax
authorities shall transfer them to tax inspection department for investigation and prosecution.

VII.

all state tax bureaus and local tax bureaus shall, in accordance with the prescribed time limit, integrally collect invoice bills
of carrying trade. The provincial state tax bureaus and local tax bureaus shall submit the summarized invoice bill hereof to the
State Administration of Taxation.

VIII.

state tax bureaus and local tax bureaus shall intensify their coordination to convene regular joint meeting to inform the tax collection
and administration on cargo transportation. Data switching channels of carry trade shall be established to exchange the status quo
of the administered client and data of declared business tax. For those utilizing carrying trade to evade tax, state tax bureaus
and local tax bureaus shall undertake joint investigation to promote their cash-handling performance and the efficiency of tax examination.

IX.

state tax bureaus and local tax bureaus shall strictly abide by the requirements of the State Administration of Taxation to conduct
examination and auditing upon the abnormal invoice of carrying trade and exchange the information about their examination and auditing.
Should the state tax authorities, after their examination and auditing, deem that it is of necessity for the local tax authorities
in responsible to carry out further examination and auditing, state tax bureaus shall transfer it to local tax authorities for further
examination and auditing, subsequently the local tax bureaus from the invoice-drawing party shall feedback the result to state tax
bureaus.

X.

state tax bureaus and local tax bureaus shall bring the tax imposition administration of carrying trade under the preferred areas
of law enforcement and examination and investigate the responsibilities of related units and personnel having failed to abide by
the prescribed provisions to perform tax imposition, administration, examination and information transfer.



 
The State Administration of Taxation
2006-01-25

 






OPINIONS OF THE MINISTRY OF EDUCATION ON RELEVANT ISSUES CONCERNING CURRENT SINO-FOREIGN COOPERATIVE EDUCATION

Opinions of the Ministry of Education on Relevant Issues concerning Current Sino-foreign Cooperative Education

Jiao Wai Zong [2006] No.5
February 7,2006

The education offices or commissions of all the provinces, autonomous regions, and municipalities directly under the Central Government,

Since the promulgation and implementation of the Regulation on Sino-foreign Cooperative Education and its detailed implementation
measures, the Sino-foreign cooperative education has been going into the path of development regularly step by step under the direction
of the state guidelines for expanding the opening up, regulating the education, administrating in accordance with the law, and promoting
the development. For the purpose of promoting the development of Sino-foreign cooperative education in a steady and healthy way,
and aiming at the existing prominent problems in the current Sino-foreign cooperative education we hereby put forward opinions specifically
as follows: :

I.

Insisting on the principle of public welfare nature of Sino-foreign cooperative education. Education is a glorious social public
welfare undertaking with the ultimate goal of talent training. Education service is not trade in goods, and it is also different
from common service trade. We shall acquire a good understanding of the tenet and nature of Sino-foreign cooperative education, and
strictly restrain the acts of arbitrary charges and high charges in the name of Sino-foreign cooperative education, and prevent the
tendency of educational industrialization.

II.

Running schools in accordance with the law, and regulating the administration. We shall enhance political sensitivity and build up
the consciousness of educational sovereign firmly, so as to maintain national security, social stability, and normal educational
order. We shall protect the lawful rights and interests of the operators running Sino-foreign cooperative schools, Sino-foreign cooperative
educational institutions, and the teachers and students thereof according to law. During the process of Sino-foreign cooperative
education, we shall pay attention to strengthening the predominant position of Chinese educational institutions in accordance with
the law, and firmly implement the educational policies of the state.

III.

Insisting on the guidance of the policy of introduction of high quality educational resources, and strengthening capability construction.
When developing Sino-foreign cooperative education, we shall, inosculating with the demand for various talents in the economic development
of state, local, and regional and the requirements of schools for subject development, encourage cooperative education to be carried
out with overseas universities with high level and universities with comparative advantage in subject and fields which are badly
needed, weak, and vacant in China, and direct the Sino-foreign cooperative education to develop toward to the middle west areas step
by step. Chinese educational institutions shall develop Sino-foreign cooperative education in accordance with their own orientations
and aims, to prevent the phenomenon of blindly comparison, rushing into mass action regardless of objective conditions, and low-level
repetition. The universities and colleges under the key construction of the state shall pay more attention to do a good work on selecting
partners, selecting cooperation models and contents of cooperation, so as to supply the service for improving the whole level and
comprehensive strength of the schools in an overall way.

IV.

Strengthening the quality control over Sino-foreign cooperative education. At present, we shall do a good work of putting emphasis
on quality control mainly over Sino-foreign cooperative education in the field of higher education, and maintain the reputation of
Sino-foreign cooperative education, and do well the work in the sectors as follows:

1.

Strengthening the management on enrollment and admission. The higher diploma education in a Chinese-foreign cooperative education
institution or a project shall be subordinate to the enrollment plan of universities and colleges as established by the state, and
shall be separately listed and administered according to the catalogue of enrollment for different specialities within the annual
enrollment scale of the universities and colleges, and shall meet the requirements for admission of the same batch of admission at
the same region. If the admission plan cannot be fulfilled in the same batch of admission, it shall not be shifted to the next batch.
If it is at the postgraduate level, it shall accord with the provisions and procedures of the state for enrollment and admission
of postgraduate diploma education. As to the diploma and degree education of a foreign education institution in a Sino-foreign cooperative
education institution or project, its admission criterion shall not be inferior to the admission criterion of the foreign educational
institution in its native country.

2.

Strengthening management on the fostering process. As to the higher diploma education at or above a bachelor’s degree in a Sino-foreign
cooperative education institution or a project,, its educational and teaching plan, fostering plan, and length of schooling shall
be formulated and implemented in accordance with the relevant state provisions, and a special code of specialities shall be set up
for its bachelor’s degree. As to the diploma education at or above a bachelor’s degree of a foreign educational institution in a
Sino-foreign cooperative education institution or a project,, the educational and teaching plan, fostering plan, curriculum provision,
and contents of teaching formulated by them jointly shall not be inferior to the criteria and academic requirements of the foreign
education institution in its native country. As to implementing both Chinese higher degree education and degree education of a foreign
diploma, and issuing Chinese degree and diploma certificates and the degree and diploma certificates of a foreign educational institution
in a Sino-foreign cooperative education institution or a project, its fostering aims, fostering requirements, curriculum provision,
and contents of teaching shall meet the academic requirements of both parties. Specially for the postgraduate education courses of
a foreign educational institution in a Sino-foreign cooperative education institution or a project, all sectors during the process
of fostering shall be strict managed so as to guarantee the quality.

3.

Strengthening planning and policy guide to subjects and specialities. We shall study and make guidance catalogue of subjects and
specialities for Sino-foreign cooperative education, so as to clarify the subjects and specialities which are encouraged, allowed,
restricted, and prohibited by the state.

4.

Strengthening management on the issuance of certificates. As to implementing higher degree education and issuing Chinese degree and
diploma certificates in a Sino-foreign cooperative education institution or a project, it shall be implemented strictly in accordance
with the relevant state provisions. As to implementing diploma or degree education at or above a bachelor’s degree of a foreign educational
institution and issuing degree and diploma certificates of a foreign educational institution in a Sino-foreign cooperative education
institution or a project, the Chinese educational institution shall have the qualification for carrying out the degree education
and diploma granting for the corresponding level and category. The principle of truthfulness and validity shall be followed for the
degree and diploma certificates issued by the foreign educational institution, and the degree and diploma certificates shall be the
same as those issued by the educational institution in its native country, and admitted in its country.

V.

Strengthening management on adopting the educational model of “double campus” by Sino-foreign cooperative education projects.. A
complete or main educational and teaching process for a Sino-foreign cooperative education project shall be implemented within a
Chinese educational institution. Where there is real necessity to adopt the educational model of “double campus” to run a Sino-foreign
cooperative education project, an administrative license shall be obtained in accordance with law. A Chinese educational institution
shall earnestly strengthen the introduction of foreign educational resources in the implementation of such kinds of projects, and
make evaluation seriously on the introduced courses of a foreign educational institution, especially the courses replacing those
of Chinese degree education. The introduced foreign courses and the core courses of specialities shall be more than one third of
the whole courses and the core courses of the Sino-foreign cooperative education project. The number of the core courses of specialities
by teachers from the foreign educational institution and the relevant teaching hours, shall be more than one third of all the courses
numbers and teaching hours of the Sino-foreign cooperative education project. For any teacher who is employed internationally in
the name of the foreign educational institution, his/her level shall be recognized by the foreign educational institution and the
Chinese educational institution.

VI.

Strengthening management on charges for Sino-foreign cooperative education. The operators of Sino-foreign cooperative education shall
have corresponding capital investment for establishing or running Sino-foreign cooperative educational institutions or projects.
The operators who run Sino-foreign cooperative educational institutions or projects shall evaluate the average costs of the Sino-foreign
cooperative institutions or projects for fostering a student in a careful and reasonable way, and shall, in accordance with the principle
of cost compensation, report to the relevant departments for determination of the charging items and criteria in light of the principle
of government pricing. The level of the local economic and social development and the endurance of those being educated shall also
be taken into full consideration in the charging criteria, and the proper balance between public education and private education
shall also be kept properly. Charges for activities of students exchange conducted only in the form of mutual recognition of credit
shall be collected in the light of the normal charging items and criteria of Chinese higher education as the students are studying
at domestic schools. Before the state promulgates a uniform policy, each locality shall try to do well in managing the charges of
Sino-foreign cooperative education in light of the current administration measures.

The Sino-foreign cooperative education is a component part of the educational undertaking of our country. The administrative department
of education at each locality shall earnestly study the new circumstances and new problems occurred in the development of Sino-foreign
cooperative education, enrich and perfect the environment of legal and policy constantly, strengthen the overall planning, comprehensive
coordination, and micro-management of Sino-foreign cooperative education of its own administrative region, and ensure the Sino-foreign
cooperative education so as to provide the service for promotion of the development and reform of education of our country, and enhance
international competitiveness of education of our country.



 
Ministry of Education
2006-02-07

 






NOTICE OF CHINA SECURITIES DEPOSITORY AND CLEARING CORPORATION LIMITED ON THE RELEVANT ISSUES ABOUT THE OPENING OF A-SHARE SECURITIES ACCOUNT BY FOREIGN STRATEGIC INVESTORS

China Securities Depository and Clearing Corporation Limited

Notice of China Securities Depository and Clearing Corporation Limited on the Relevant Issues about the Opening of A-share Securities
Account by Foreign Strategic Investors

For carrying into effect the relevant provisions of the Measures for the Administration of Strategic Investment in Listed Companies
by Foreign Investors as jointly promulgated by the Ministry of Commerce, China Securities Regulatory Commission (CSRC), State Administration
of Taxation, State Administration for Industry and Commerce and State Administration of Foreign Exchange, regarding the relevant
issues on the acquisition of A-shares through strategic investment in listed companies, the relevant formalities for opening A-share
securities accounts (hereinafter refers to as the securities accounts) and the registration of stocks by an investor from a foreign
country or from the Hong Kong SAR, Macao SAR or Taiwan Region ( hereinafter refers to as an investor), this Notice is hereby announced
as follows:

I.

An investor who legally holds A-share stock of a listed company shall apply directly to either Shanghai branch or Shenzhen branch
of the China Securities Depository and Clearing Corporation Limited for opening a securities account, for which the materials shall
be submitted as follows:

1.

A certification document of effective business registration of an investor and a photocopy thereof or other document that could certify
the establishment of relevant institution and has the same legal force as the document of business registration and a photocopy
thereof ;

2.

A power of attorney as granted to the relevant handler by the board of directors or any director thereof, major shareholder or any
other competent person the document that can certify that the grantor has a right of authorization, as well as a photocopy of effective
identity certification of the grantor;

3.

An effective identity certification of the relevant handler and a photocopy thereof;

4.

The relevant approval documents as produced by the Ministry of Commerce and the China Securities Regulatory Commission on approving
the strategic investment made by the relevant investor in a listed company and the relevant photocopies thereof or a certification
document on shareholding as produced by the relevant listed company;

5.

An Application Form for the Registration of Securities Account; and

6.

A Commitment on Self-disciplinary Administration of Securities Account (see the appendix for the format).

If the investor who holds the shares of a listed company before the listed company’s initial public offering (IPO) is a natural person,
except his effective identity certification as well as a photocopy thereof, those materials prescribed in items (4) through (6) in
paragraph 1 of this Article shall be provided.

The foregoing material is provided in any foreign language, a Chinese version is required.

II.

The approval documents and shareholding certification as mentioned in the preceding paragraph shall include the situations as follows:

1.

Where the investment is made by means of directional offering conducted by a listed company, the relevant approval documents shall
be provided by the relevant investor, which is produced by the Ministry of Commerce on approving the strategic investment made by
the relevant investor in the listed company and the verification document as produced by the China Securities Regulatory Commission
on directional offering;

2.

Where investment is made by means of agreement-based transfer, the approval documents produced by the Ministry of Commerce shall be
provided by investor. If any acquisition of a listed company is involved, the verification approval as produced by the China Securities
Regulatory Commission shall be provided as well;

3.

As to the investor that holds shares before the relevant listed company makes its initial public offering, the relevant certification
issued by the listed company on shareholding before the said IPO shall be provided; or

4.

Other circumstances as prescribed by the law or regulation of the state or by the provision of the China Securities Regulatory Commission
.

III.

Where the investor opens a securities account, the China Securities Depository and Clearing Corporation Limited may according to
the certification documents certifying that the investor legally holds A-shares stock of a listed company and in accordance with
the relevant operating rules for stock registration, handle the formalities for stock registration and shall, according to the relevant
provisions, handle the formalities for sale prohibition on the A-shares stock as held by the investor,.

IV.

Upon the expiration of sale prohibition term on the A-shares stock held by an investor, the investor may apply for releasing from
the sale prohibition on shares through the relevant listed company and, upon the relevant verification conducted by the Stock Exchange,
, the China Securities Depository and Clearing Corporation Limited may handle the formalities for releasing from the sale prohibition
on A-shares stock in accordance with the documents as confirmed by the Stock Exchange. .

V.

Before the expiration of sale prohibition term on the A-shares stock , the investor requires to transfer the shares due to such special
reasons as bankruptcy, liquidation and pledge, the relevant approval documents as produced by such competent authorities as the Ministry
of Commerce shall be provided and handled the relevant formalities for transfer and registration in accordance with the relevant
provisions on shares transfer..

VI.

The investor who has opened a securities account shall not open any securities account any more unless it is otherwise prescribed
by any law or regulation of the state or any provision of the China Securities Regulatory Commission .

VII.

The matter that hasn’t been prescribed in this Notice shall be governed by the relevant provisions of the China Securities Depository
& Clearing Corporation Limited on the administration of securities accounts and stock registration.

VIII.

The term “investors” as mentioned in this Notice shall not include the qualified foreign institutional investor. The application
of the qualified foreign institutional investor for opening any securities account shall be handled in accordance with the relevant
provisions on qualified foreign institutional investors.

IX.

This Notice shall enter into effect as of the day of promulgation.

China Securities Depository and Clearing Corporation Limited

February 14, 2006 Appendix:Commitment on Self-disciplinary Administration of Securities Account

Branches of China Securities Depository and Clearing Corporation Limited:

The investor commits that: the securities account as opened in your Company shall only be used to apply to the A-shares stock of listed
companies that have been lawfully obtained as well as the sale of aforesaid shares upon the expiration of sale prohibition term.
Unless it’s otherwise prescribed by the law or regulation, no other securities may be transacted in the secondary market.

(Seal/Signature)

(Date)



 
China Securities Depository and Clearing Corporation Limited
2006-02-14

 






ACCOUNTING STANDARDS FOR ENTERPRISES NO. 2 – LONG-TERM EQUITY INVESTMENTS

the Ministry of Finance

Accounting Standards for Enterprises No. 2 – Long-term Equity Investments

Cai Kuai [2006] No.3

February 15, 2006

Chapter I General Provisions

Article 1

In order to regulate the recognition and measurement of long-term equity investments, and disclosure of relevant information, these
Standards are formulated in the light of the Accounting Standards for Enterprises – Basic Standards.

Article 2

Other relevant accounting standards shall apply to such items as follows:

(1)

The Accounting Standards for Enterprises No. 19 – Foreign Currency Translation shall apply to the translation of long term equity
investments in foreign currencies; and(2The Accounting Standards for Enterprises No. 22 – Recognition and measurement of Financial
Instruments shall apply to the long term investments which haven’t been dealt with by the present standards..

Chapter II Initial Measurement

Article 3

The initial cost of the long-term equity investment formed in the merger of an enterprise shall be ascertained in accordance with
the following provisions:

(1)

For the merger of enterprises under the same control, if the consideration of the merging enterprise is that it makes payment in cash,
transfers non-cash assets or bear its debts, it shall, on the date of merger, regard the share of the book value of the owner’s equity
of the merged enterprise as the initial cost of the long-term equity investment. The difference between the initial cost of the long-term
equity investment and the payment in cash, non-cash assets transferred as well as the book value of the debts borne by the merging
party shall offset against the capital reserve. If the capital reserve is insufficient to dilute, the retained earnings shall be
adjusted.If the consideration of the merging enterprise is that it issues equity securities, it shall, on the date of merger, regard
the share of the book value of the owner’s equity of the merged enterprise as the initial cost of the long-term equity investment.
The total face value of the stocks issued shall be regarded as the capital stock, while the difference between the initial cost of
the long-term equity investment and total face value of the shares issued shall offset against the capital reserve. If the capital
reserve is insufficient to dilute, the retained earnings shall be adjusted.

(2)

For the merger under different control, the merging party shall, on the date of merger, regard the merger costs ascertained in accordance
with the Accounting Standards for Enterprises No. 20 – Merger of Enterprises as the initial cost of the long-term equity investment.

Article 4

Besides the long-term equity investments formed by the merger of enterprises, the initial cost of a long-term equity investment obtained
by other means shall be ascertained in accordance with the provisions as follows:

(1)

The initial cost of a long-term equity investment obtained by making payment in cash shall be the purchase cost which is actually
paid. The initial cost consists of the expenses directly relevant to the obtainment of the long-term equity investment, taxes and
other necessary expenses.

(2)

The initial cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the fair value of the
equity securities issued.

(3)

The initial cost of a long-term equity investment of an investor shall be the value stipulated in the investment contract or agreement
except the unfair value stipulated in the contract or agreement.

(4)

The initial cost of a long-term investment obtained by the exchange of non-monetary assets shall be ascertained in accordance with
the Accounting Standards for Enterprises No. 7 – Exchange of Non-monetary Assets.

(5)

The initial cost of a long-term equity investment obtained by recombination of liabilities shall be ascertained in accordance with
Accounting Standards for Enterprises No. 12 – Debt Restructuring.

Chapter III Subsequent Measurement

Article 5

The following long-term equity investments shall, in accordance with Article 7 of these Standards, be measured by employing the cost
method:

(1)

A long-term equity investment of an investing enterprise that is able to control the invested enterprise. The term “control” refers
to the power to determine the financial and operating polices of an enterprise and obtain benefits from its operating activities
of the enterprise. If the investing enterprise can control an invested entity, the invested entity as its subsidiary company shall
be included in the consolidation range of the consolidated financial statements. For a long term equity investment on the subsidiary
company of an investing enterprise, the investing enterprise shall accounted by employing the cost method as prescribed by these
Standards, and shall make an adjustment by employing the equity method when it works out consolidated financial statements.

(2)

A long-term equity investmentofinvestment of the investing enterprise that does not do joint control or does not have significant
influences on the invested entity,andentity, and has no offer in the active market and its fair value cannot be reliably measured.
The term “joint control” refers to the control over an economic activity in accordance with the contracts and agreements, which does
not exist unless the investing parties of the economic activity with one an assent on sharing the control power over the relevant
important financial and operating decisions. Where an investing enterprise and other parties do joint control over an invested entity,
the invested entity shall be their joint enterprise. The term “significant influences” refers to the power to participate in making
decisions on the financial and operating policies of an enterprise, but not to control or do joint control together with other parties
over the formulation of these policies. Where an investing enterprise is able to have significant influences on an invested entity,
the invested entity shall be its associated entity.

Article 6

When ascertaining whether or not it is able to control or have significant influences on an invested entity, an enterprise shall take
into consideration the invested enterprises’ current convertible corporate bonds and current executable warrants held by the investing
enterprise and other parties, as well as other potential factors concerning the voting rights.

Article 7

The price of a long-term equity investment measured by employing the cost method shall be included at its initial investment cost.
If there are additional investments or disinvestments, the cost of the long-term equity investment shall be adjusted. The dividends
or profits declared to distribute by the invested entity shall be recognized as the current investment income. The investment income
recognized by the investing enterprise shall be limited to the amount received from the accumulative net profits that arise after
the invested entity has accepted the investment. Where the amount of profits or cash dividends obtained by the investing entity exceeds
the aforesaid amount, it shall be regarded as recovery of initial investment cost.

Article 8

A long-term equity investment of the investing enterprise that does joint control or significant influences over the invested entity
shall, in accordance with Articles 9 through 13 of these Standards, be measured by employing the equity method.

Article 9

If the initial cost of a long-term equity investment is more than the investing enterprise’ attributable share of the fair value of
the invested entity’s identifiable net assets for the investment, the initial cost of the long-term equity investment may not be
adjusted. If the initial cost of a long-term equity investment is less than the investing enterprise’ attributable share of the fair
value of the invested entity’s identifiable net assets for the investment, the difference shall beincludedbe included in the current
profits and losses and the cost of the long-term equity investment shall be adjusted simultaneously. The fair value of the identifiable
net assets of the invested entity shall be ascertained by referring to the relevant provisions of the Accounting Standards for Enterprises
No. 20 – Merger of Enterprises.

Article 10

After an investing enterprise obtains a long-term equity investment, it shall, in accordance with the attributable share of the net
profits or losses of the invested entity, recognize the investment profits or losses and adjust the book value of the long-term equity
investment. The investing enterprise shall, in the light of the profits or cash dividends declared to distribute by the invested
entity, calculate the proportion it shall obtain, and shall reduce the book value of the long-term equity investment correspondingly.

Article 11

An investing enterprise shall recognize the net losses of the invested enterprise until the book value of the long-term equity investment
and other long-term rights and interests which substantially form the net investment made to the invested entity are reduced to zero,
unless the investing enterprise has the obligation to undertake extra losses. If the invested entity realizes any net profits later,
the investing enterprise shall, after the amount of its attributable share of profits offsets against its attributable share of the
un-recognized losses, resume to recognize its attributable share of profits.

Article 12

The investing enterprise shall, on the ground of the fair value of all identifiable assets of the invested entity when it obtains
the investment, recognize the attributable share of the net profits and losses of the invested entity after it adjusts the net profits
of the invested entity. If the accounting policies and accounting periods adopted by the invested entity are different from those
adopted by the investing enterprise, an adjustment shall be made to the financial statements of the invested entity in accordance
with the accounting policies and accounting periods of the investing enterprise and recognize the investment profits or losses.

Article 13

Where any change is made to the owner’s equity other than the net profits and losses of the invested entity, the book value of the
long-term equity investment shall be adjusted and be included in the owner’s equity.

Article 14

For a long-term equity investment for which there is no offer in the active market and of which the fair value cannot be reliably
measured, if the investing enterprise has not joint control or significant influence over the invested entity any more as a result
of the decrease of investment or other reasons, the cost method shall be employed in the measurement, and the book value of the long-term
equity investment employing the equity method shall be regarded as the initial investment cost to be measured by employing the cost
method. If an enterprise is able to do joint control or significant influence, which does not constitute control, over the invested
entity as a result of additional investment or other reasons, the equity method shall be employed in the measurement, and the book
value of the long-term equity investment measured by employing the cost method or the book value of investment ascertained in accordance
with the Accounting Standards for Enterprises No. 22 – Recognition and Measurement of Financial Instruments shall be regarded as
initial investment cost measured by employing the cost method.

Article 15

The impairment of a long-term equity investment which is measured by employing the cost method as prescribed in these Standards, for
which there is no offer in the active market and of which the fair value cannot be reliably measured, its impairment shall be disposed
in accordance with the Accounting Standards for Enterprises No. 22 – Recognition and Measurement of Financial Instruments. The impairment
of any other long-term equity investment measured in accordance with these Standards shall be disposed in accordance with the Accounting
Standards for Enterprises No. 8 – Asset Impairment.

Article 16

When disposing of a long-term equity investment, the difference between its book value and the actual purchase price shall be included
in the current profits and losses. If any change other than the net profits and losses of the invested entity occurs and is included
in the owner’s equity, the portion previously included in the owner’s equity shall, when disposing of a long-term equity investment
measured by employing the equity method, be transferred to the current profits and losses according to a certain proportion.

Chapter IV Disclosure

Article 17

An investing enterprise shall, in the notes, disclose the information concerning long-term equity investments as follows:

(1)

The name list of its subsidiary companies, joint ventures and associated enterprises, consisting of the names, registration places,
and business nature, proportions of shares and proportions of voting rights of the investing enterprises;

(2)

The main financial information of the joint ventures and associated enterprises, consisting of the aggregate amounts of assets, liabilities,
incomes, expenses, etc.;

(3)

The information about the restriction of the invested entity’ s capacity of transferring funds to the investing entity;

(4)

The current period and accumulative amounts of unrecognized investment losses; and

(5)

The contingent liabilities or the investments in the subsidiary companies, joint ventures and associated enterprises.



 
the Ministry of Finance
2006-02-15

 






ACCOUNTING STANDARDS FOR ENTERPRISES NO. 38 – INITIAL IMPLEMENTATION OF ACCOUNTING STANDARDS FOR ENTERPRISES

Accounting Standards for Enterprises No. 38 – Initial Implementation of Accounting Standards for Enterprises

Cai Kuai [2006] No.3
February 15, 2006
Chapter I General Provisions

Article 1

According to the Accounting Standards for Enterprises – Basic Standards, this Standards is formulated in order to regulate the recognition
and measurement of accounting elements, as well as the presentation of financial statements governed by the Initial Implementation
of Accounting Standards for Enterprises, when the Accounting Standards for Enterprises is initially carried out.

Article 2

The phrase “initially implementing accounting standards for enterprises” means that the system of accounting standards for enterprises
is first carried out, consisting of the basic standards, specific standards and guidelines on the application of accounting standards.

Article 3

The Accounting Standards for Enterprises No. 28 – Changes in Accounting Policies and Estimates? and Corrections of Errors shall apply
to the alteration of accounting policies occurring after initially carrying out accounting standards for enterprises.

Chapter II Recognition and Measurement

Article 4

On the date of initial implementation, according to the Accounting Standards for Enterprises, an enterprise shall make classification,
recognition and measurement on all assets, liabilities and the owner’s equities again, as well as shall make a balance sheet for
the initial period.

As making a balance sheet for the initial period, the enterprise shall make no retroactive modulation to any item except for those
to which retroactive modulations shall be made according to Articles 5 through 19 of this Standards.

Article 5

A long-term equity investment on the date of initial implementation shall be respectively conducted according to the circumstances
as follows:

(1)

In accordance with the Accounting Standards for Enterprises No. 20 – Business Combination, if a long-term equity investment is generated
from a business combination under common control, the unamortized equity investment difference shall be entirely sterilized, the
retained earnings shall be modulated, and the book balance of the long-term equity investment after the sterilization of the equity
investment difference shall be considered as the cost recognition on the date of initial implementation.

(2)

For any other long-term equity investment calculated by equity method except that mentioned in Item (1), in case there is any equity
investment difference on the credit side, it shall sterilize the credit balance, the retained earnings shall be modulated, and the
book balance of the long-term equity investment after the sterilization on the credit side shall be considered as the cost recognition
on the date of initial implementation. in case there is any equity investment difference on the debit side, the book value of the
long-term equity investment shall be considered as the cost recognition on the date of initial implementation.

Article 6

In case any conclusive evidence indicates that an investment real estate may be measured at fair value, it may be measured at fair
value on the date of initial implementation and the retained earnings shall be modulated based on the difference between its book
value and its fair value.

Article 7

On the date of initial implementation, for the discard expenses which meet the conditions for the recognition of expected liabilities
but have not been charged to the asset costs prior to this date, the asset costs shall be increased and the related liabilities shall
be recognized. Simultaneously, the retained earnings shall be modulated based on the depreciation (depletion) drawn complementarily.

Article 8

As to a plan on terminating the labor relationship with an employee which is already existing on the date of initial implementation,
in case it meets the conditions described in the Accounting Standards for Enterprises No. 9 – Wages and Salaries of Employees for
the recognition of expected liabilities, the liability resulting from the compensation made for the cancellation of the labor relationship
with the employee shall be recognized as well as the retained earnings shall be modulated.

Article 9

As to an investment formed in the operation of the enterprise annuities fund, it shall be measured at a fair value on the date of
initial implementation and the retained earnings shall be modulated based on the difference between its book amount and the fair
value.

Article 10

As to a share-based payment of which the vesting date is on or after the date of initial implementation, upon the provisions of the
Accounting Standards for Enterprises No. 11 – Share-based Payment, the retained earnings shall, in accordance with the fair value
of the equity instrument, or service provided by any other party or liability assumed by any other party which is calculated and
determined based on the equity instrument, be modulated at the amount of cost incurred during the vesting period before the date
of initial implementation, and the owner’s equities or liabilities shall be increased accordingly.

Any retroactive modulation may be not made to any share-based payment made for any exercisable right before the date of initial implementation.

Article 11

On the date of initial implementation, according to the Accounting Standards for Enterprises No. 13 – Contingencies, an enterprise
shall recognize those restructuring obligations meeting the conditions for the recognition of expected liabilities as liabilities,
and shall modulate the retained earnings.

Article 12

On the date of initial implementation, in accordance with the provisions of the Accounting Standards for Enterprises No. 18 – Income
Tax, an enterprise shall make a retroactive modulation to the effect of the temporary difference between the carrying amount of an
asset or liability and its tax base on income tax, and shall modulate the retained earnings based on the affected amount.

Article 13

Other than the items as follows, any retroactive modulation may not be made to the business combinations occurring before the date
of initial implementation:

(1)

As to a business combination under common control as prescribed in the Accounting Standards for Enterprises No. 20 – Business Combination,
the amortized value of the originally recognized business reputation shall be entirely sterilized and the retained earnings shall
be modulated.

As to a business combination not under common control as described in this Standards, the amortized value of the business reputation
on the date of initial implementation shall be recognized as cost, and it shall not be amortized any more.

(2)

As to the business combination occurring before the date of initial implementation, in case it is stipulated in the combination contract
or agreement that the combination cost should be modulated in accordance with the occurrence of future events, and the future events
expected on the date of initial implementation are likely to occur and their effects on the combination cost can be measured reliably,
the carrying amount of the already recognized business reputation shall be modulated based on the affected amount.

(3)

According to the Accounting Standards for Enterprises No. 8 – Asset Impairment, an enterprise shall have an impairment test for the
business reputation on the date of initial implementation, if impaired, it shall be recognized with the amount after the impairment
provision is made as well as the retained earnings shall be modulated.

Article 14

On the date of initial implementation, an enterprise shall divide the financial assets (excluding the investments under the Accounting
Standards for Enterprises No. 2 – Long-term Equity Investments) into financial assets, held-to-maturity investments, loans, receivables
and financial assets available for sale measured at their fair value and of which the alterations charged to the profits and losses
in the current period.

(1)

As to those classified as financial assets measured at their fair value and of which the alterations charged to the profits and losses
in the current period or available for sale, they shall be measured at their fair value on the initial date of implementation, as
well as the retained earnings shall be modulated based on the difference between the carrying amount and the fair value.

(2)

As to those classified as held-to-maturity investments, loans and receivables, they shall, as of the date of initial implementation,
be measured at their amortized cost in the subsequent accounting periods employing the actual interest rate method.

Article 15

As to a financial liability which on the date of first implementation is designated to be measured at its fair value and of which
the alterations are charged to the profits and losses in the current period, it shall be measured at its fair value on the date of
initial implementation as well as the retained earnings shall be modulated based on its carrying amount and fair value.

Article 16

As to a derivative financial instrument (excluding hedging instruments) which has not been recognized in the balance sheet or which
has been measured at its cost, it shall be measured at its fair value on the date of initial implementation and the retained earnings
shall be modulated.

Article 17

As to an embedded financial instrument which shall be separated from the mixed instrument according to the Accounting Standards for
Enterprises No. 22 – Recognition and Measurement of Financial Instruments, on the date of initial implementation, it shall be separated
from the mixed instrument and shall be conducted respectively, however, unless it is difficult to make a reasonable determination
on the fair value of the embedded derivative financial instrument.

As to a non-derivative financial instrument with liability and equity components which is issued by an enterprise, on the date of
initial implementation, the liability component shall be separated from equity component according to the Accounting Standards for
Enterprises No. 37 – Presentation of Financial Instruments, unless it is difficult to make a reasonable determination on the fair
value of the liability component.

Article 18

On the date of initial implementation, as to the hedges which do not meet the conditions for employing the hedge accounting methods
described in the Accounting Standards for Enterprises No. 24 – Hedging, the implementation of the original hedge accounting methods
shall be brought to an end and shall be conducted according to the Accounting Standards for Enterprises No. 24 – Hedging.

Article 19

On the date of initial implementation, a cession enterprise of reinsurance businesses shall recognize the related provisions which
should be allocated back to the reinsurance acceptors as assets according to the Accounting Standards for Enterprises No. 26 – Reinsurance
Contracts as well as modulate the carrying amount of each provision.

Chapter III Presentation

Article 20

During the period of preparation of the first annual financial statements after the date of initial implementation (referred to as
the first annual financial statements hereinafter)according to the Accounting Standards for Enterprises, an enterprise shall make
a balance sheet, profit statement, cash flow statement, statement on alternations of the owner’s equities and the notes in the light
of the Accounting Standards for Enterprises No. 30 – Presentation of Financial Statements and the Accounting Standards for Enterprises
No. 31 – Cash Flow Statements.

As to the enterprise which provides consolidated financial statements to outsiders, it shall be governed by the provisions in the
Accounting Standards for Enterprises No. 33 – Consolidated Financial Statements.

As to the enterprise which provides interim financial reports during the period covered by the first annual financial statements,
it shall be governed by the provisions in the Accounting Standards for Enterprises No. 32 – Interim Financial Reports.

An enterprise shall throw daylight on the alternations in the amount of the items of the financial statements upon initial implementation
of the Accounting Standards for Enterprises in its notes.

Article 21

The first annual financial statements shall at least consist of comparative information of the previous year presented according
to the Accounting Standards for Enterprises. In case the presentation of the items of financial statements alters, the comparative
figures of the previous year shall be modulated as required by the Accounting Standards for Enterprises concerning the presentation,
unless it is impractical.

As to a subsidiary company which was not included into the scope of consolidation, but should have been included into therein according
to the Accounting Standards for Enterprises No. 33 – Consolidated Financial Statements, the enterprise shall list it under the scope
of consolidation for the comparative consolidated financial statements of the previous year. As to a subsidiary company which was
included into the scope of consolidation, but should have not been included into therein according to this Standards, the enterprise
shall not list the subsidiary company under the scope of consolidation for the comparative consolidated financial statements of the
previous year. The minority shareholders’ interests presented in the comparative financial statements of the previous year shall
be listed under the category of the owner’s equities according to these Standards.

As to an enterprise that shall list the earnings per share, it shall calculate and list the earnings per share of the previous year
in the comparative financial statements according to the Accounting Standards for Enterprises No. 34 – Earnings Per Share.

As to an enterprise that shall publish the segment information, it shall publish the segment information of the previous year in the
comparative financial statements according to the Accounting Standards for Enterprises No. 35 – Segment Reports.



 
The Ministry of Finance
2006-02-15

 






REPLY OF STATE ADMINISTRATION OF TAXATION ON APPLICABLE TAX RATE OF REFUND FOR ALL KINDS OF EGG POWDER EXPORTED BY THE SUN FOOD (TIANJIN) CO., LTD

State Administration of Taxation

Reply of State Administration of Taxation on Applicable Tax Rate of Refund for All Kinds of Egg Powder Exported by the Sun Food (Tianjin)
Co., Ltd

Guo Shui Han [2005] No. 1175

Tianjin Municipality State Tax Bureau:

We have received the Request of the Sun Food (Tianjin) Co., Ltd for Applicable Tax Refund Rates for Various Kinds of Egg Powder (Jin
Guo Shui Jin [2005] No.23) submitted by your Bureau and hereby replied as follows after study:

Considering the value-added tax shall, judging from the process technique, be levied on whole egg powder, albumen powder and yolk
powder by 17%, the extended code may, without the change of the current customs classification, be adopted to resolve the problems
concerning tax refund applicable to various egg powder, namely, extending the commodity code 04089100 “other dry peeled egg” to 040891001
“other dry peeled egg” with its taxation rate 13% and tax refund rate 5%; 040891002 “egg powder (whole egg powder, dried egg white
and dried yolk powder)”, with its taxation rate 17% and tax refund rate 13%.

The local tax authorities of all regions are required to log on the server program of Import and Export Tax Department of the State
Administration on Taxation to download new important and export rebates program and install it in import and export rebates verification
system for use.

State Administration of Taxation

December 13, 2005



 
State Administration of Taxation
2006-02-20

 






DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON AMENDING THE AUDIT LAW OF THE PEOPLE’S REPUBLIC OF CHINA

Standing Committee of the National People’s Congress

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

No. 48

The Decision of the Standing Committee of the National People’s Congress on Amending the Audit Law of the People’s Republic of China,
which was adopted at the 20th meeting of the Standing Committee of the 10th National People’s Congress of the People’s Republic of
China on February 28, 2006, is hereby promulgated and shall come into force as of June 1, 2006.

President of the People’s Republic of China, Hu Jintao

February 28, 2006

Decision of the Standing Committee of the National People’s Congress on Amending the Audit Law of the People’s Republic of China

(Adopted at the 20th meeting of the Standing Committee of the 10th National People’s Congress of the People’s Republic of China on
February 28, 2006)

It is decided at the 20th meeting of the Standing Committee of the 10th National People’s Congress of the People’s Republic of China
to amend the Audit Law of the People’s Republic of China as follows:

1.

Article 1 shall be amended as: “This Law is formulated in accordance with the Constitution for the purpose of strengthening the
audit supervision of the State, maintaining the fiscal and economic order of the State, enhancing the efficiency in using fiscal
capital, promoting the building of a clean government and ensuring the sound development of national economy and society.”

2.

A new paragraph shall be added to Article 3 as Paragraph 2: “An auditing organ shall carry out audit evaluation according to the
laws and regulations on fiscal revenues and expenditures and financial revenues and expenditures as well as other relevant provisions
of the State, and shall make an audit decision within the scope of its statutory authorities.”

3.

Article 4 shall be amended as: “The State Council and the local people’s government at or above the county level shall annually present
to the standing committee of the people’s congress at the corresponding level with an audit work report of the auditing organ on
budget implementation and other fiscal revenues and expenditures. An audit work report shall give emphasis to the audit of budget
implementation. When necessary, the standing committee of the people’s congress may make a resolution on the audit work report.

“The State Council and the local people’s government at or above the county level shall report the conditions on the correction circumstance
of the problems pointed out in the audit work report and the handling results to the standing committee of the people’s congress
at the same level.”

4.

Article 10 shall be amended as: “An auditing organ may, according to the requirements for the work and upon approval of the people’s
government at the same level, establish dispatched offices within its audit jurisdiction.

“The dispatched offices shall carry out the audit work according to law based on the strength of the authorization by the auditing
organ.”

5.

A new paragraph shall be added to Article 15 as Paragraph 4: “For the appointment and dismissal of the person in-charge of the local
auditing organ at any level, it is necessary to seek the opinions of the auditing organ at the next higher level in advance.”

6.

Article 16 shall be amended as: “The auditing organ shall exercise audit supervision over the budget implementation, final settlement
of accounts as well as other fiscal revenues and expenditures of all the other departments (including subordinate organs) at the
corresponding level and the governments at lower levels.”

7.

Article 17 shall be amended as: “The National Audit Office shall, under the leadership of the Premier of the State Council, exercise
audit supervision over the implementation of central budget and other fiscal revenues and expenditures, and submit reports on audit
results to the Premier of the State Council.

“The local auditing organ at any level shall, under the respective leadership of the governor of the province, chairmen of the autonomous
region, mayor, prefect, head of the county and head of the district as well as the leadership of the auditing organ at the next higher
level, exercise audit supervision over the budget implementation and other fiscal revenues and expenditures of the corresponding
level, and submit reports on audit results to the people’s government at the corresponding level and the auditing organ at the next
higher level.”

8.

Article 19 shall be amended as: “The auditing organ shall exercise audit supervision over the financial revenues and expenditures
to the public institutions and organizations of the State and other public institutions and organizations that use fiscal capital.”

9.

Article 21 shall be deleted.

10.

Article 22 shall be changed into Article 21 and amended as: “The audit supervision over the enterprises and financial institutions
in which the State-owned capital play a controlling or leading role shall be prescribed by the State Council.”

11.

Article 23 shall be changed into Article 22 and amended as: “The auditing organ shall exercise audit supervision over the budget
implementation and final settlement of accounts relating to the construction projects that are invested or mainly invested by the
government.”

12.

Article 24 shall be changed into Article 23 and amended as: “An auditing organ shall exercise audit supervision over the financial
revenues and expenditures of the social security funds, funds from public donations and other relevant funds and capital managed
by the government department or by any other entity commissioned by government “

13.

A new article shall be added as Article 25 : “An auditing organ shall, according to the relevant provision of the State, exercise
audit supervision over the main principals of state organs and other entities belonging to the audit supervision object of the auditing
organ according to law for their fulfillment of economic liabilities of fiscal revenues and expenditures, financial revenues and
expenditures and other economic activities for their respective regions, departments or entities during the course of holding posts.”

14.

Article 29 shall be amended as: “The entities subject to audit supervision object of the auditing organ according to law shall establish
and improve their internal auditing systems in accordance with the relevant provisions of the State, and their internal auditing
work shall be subject to the professional guidance and supervision of the auditing organ.”

15.

Article 30 shall be amended as: “If an entity under audit by a social audit institution is an object of audit supervision of the
auditing organ according to law, the auditing organ shall be enpost_titled to check the relevant audit report as issued by the aforesaid
social audit institution in the light of the provisions of the State Council.”

16.

Article 31 shall be amended as: “The auditing organ shall be enpost_titled to require an entity under audit to submit, in accordance with
the provisions of the auditing organ, the budget or plan on financial revenues and expenditures, budget implementation, final settlement
of accounts, financial accounting reports, electronic data on fiscal or financial revenues and expenditures stored and disposed
by computers and necessary computer technical documents, the conditions about the account opening at the financial institution, the
audit report issued by the social audit institution as well as other materials about fiscal or financial revenues and expenditures.
And the entity under audit shall not refuse or delay the submission or give a false report.

“The person in-charge of an entity under audit shall be responsible for the authenticity and integrity of the financial accounting
materials provided by his own entity.”

17.

Article 32 shall be amended as: “The auditing organ shall, during the course of audit, be enpost_titled to examine accounting vouchers,
accounting books, financial accounting reports, the electronic data system of fiscal or financial revenues and expenditures operated
and managed by computers as well as other materials and assets related to fiscal or financial revenues and expenditures. And the
entity under audit shall not refuse to submit them.”

18.

A new paragraph shall be added to Article 33 as Paragraph 2: “The auditing organ shall be enpost_titled to inquiry the account of an entity
under audit at the financial institution upon approval of the person in-charge of the auditing organ of the people’s government at
or above the county level.”

And a new paragraph shall be added as Paragraph 3: “If the auditing organ can prove that an entity under audit deposits public money
in the name of individuals, it shall be enpost_titled to inquire about the deposits of the entity under audit in the name of individuals
at the financial institution upon approval of the person in-charge of the auditing organ of the people’s government at or above the
county level.”

19.

Paragraph 1 of Article 34 shall be amended as: “When an auditing organ carries out an audit, the entity under audit shall not transfer,
conceal, alter or destroy its accounting vouchers, accounting books, financial accounting reports and other materials about fiscal
or financial revenues and expenditures, nor may it transfer or conceal the assets it obtained in violation of the provisions of the
State.”

A new paragraph shall be added as Paragraph 2: “Where an entity under audit has the action to violates the preceding Paragraph, the
auditing organ shall be enpost_titled to deter it, and when necessary and upon approval of the person in-charge of the auditing organ
of the people’s government at or above the county level, the auditing organ may have the right to seal up the relevant materials
and the assets obtained in violation of the provisions of the State. If the auditing organ needs to freeze the relevant deposits
at the financial institution, it shall file an application to the people’s court.”

Paragraph 2 shall be changed into two paragraphs as Paragraphs 3 and 4 and be amended as: “Where an entity under audit is carrying
out any act relating to fiscal or financial revenues and expenditures in violation of the provisions of the State, the auditing
organ shall be enpost_titled to deter it. If the determent fails, the auditing organ shall, upon approval of the person-in-charge of the
auditing organ of the people’s government at or above the county level, notify the fiscal department and the relevant competent authorities
to suspend the allotment of money directly related to the act of fiscal or financial revenues and expenditures in violation of the
provisions of the State; if the aforesaid money has been allotted, the use thereof shall be suspended.

“The measures adopted by auditing organ as prescribed by the preceding two paragraphs shall not affect the lawful business operations
or production and management activities of the entity under audit.”

20.

A new article shall be added as Article 37 : “The auditing organ may, when performing the duty of audit supervision, request the administrative
department of public security, supervision, public finance, taxation, customs, price or industry and commerce to offer assistance.”

21.

Article 37 shall be changed into Article 38 , and Paragraph 1 shall be amended as: “The auditing organ shall form an audit team in
light of the audit matters as determined in the plan on the audit, and shall, within 3 days before the audit implementation, serve
an audit notice to the entity under audit. In the case of any special circumstance, the auditing organ may, upon approval of the
people’s government at the same level, directly carry out the audit with the audit notice.”

A new paragraph shall be added as Paragraph 3: “The auditing organ shall enhance the efficiency of audit work.”

22.

Article 38 shall be changed into Article 39 , and Paragraph 1 shall be amended as: “The auditors shall carry out their audit and
obtain the prove materials through the way of examining accounting vouchers, accounting books and financial accounting reports, consulting
the documents and materials about audit matters, inspecting the cash, physical objects and securities and making investigations
to the relevant entities or individuals.”

23.

Article 39 shall be changed into Article 40 and be amended as: “An audit team shall, after carrying out the audit of matters, submit
an audit report to the auditing organ. However, the audit team shall, prior to the submission of the audit report to the auditing
organ, solicit the opinions of the entity under audit. The entity under audit shall, within ten days upon receipt of the audit report
of the audit team, submit its written opinions to the audit team. The audit team shall submit the aforesaid written opinions together
with the audit report to the auditing organ.”

24.

Article 40 shall be changed into Article 41 and be amended as: “The auditing organ shall deliberate the audit report submitted by
the audit team according to the procedures as set down by the National Audit Office, and present an audit report of its own after
concurrently studying the opinions of the entity under audit about the audit report delivered by the audit team. It shall, within
the scope of its statutory authorities, make an audit decision or put forward the opinions for disposition and punishment to the
competent authorities in case the disposition or punishment should be imposed according to law on an act of fiscal or financial revenues
and expenditures in violation of the provisions of the State.

“The auditing organ shall serve the audit report and audit decision of its own to the entity under audit and the relevant competent
organ or entity. The audit decision shall enter into force as of the date of service.”

25.

A new article shall be added as Article 42 : “If the auditing organ at the higher level considers that an audit decision made by an
auditing organ at the lower level has violated the relevant provisions of the State, it may order the auditing organ at the lower
level to alter or cancel the aforesaid decision, and may directly make a decision on alteration or cancellation when necessary.”

26.

Article 41 shall be changed into Article 43 and be amended as: “If an entity under audit violates any provisions in this Law by
refusing or delaying to provide the materials about audit matters, or providing untrue or incomplete materials, or refusing or impeding
the inspection, the auditing organ may order it to make corrections, and may circulate a notice of criticism and give a warning.
If the entity under audit refuses to make corrections, it shall be subject to liabilities according to law.”

27.

Articles 42 and 43 shall be incorporated into one article as Article 44 and be amended as: “Where an entity under audit violates
the provisions in this Law by transferring, concealing, altering or destroying accounting vouchers, accounting accounts, financial
accounting reports or other materials related to fiscal or financial revenues and expenditures, or transferring or concealing the
assets obtained by violation of the provisions of the State, and if the auditing organ considers that the principal and other persons
held to be directly responsible should be given sanctions according to law, the auditing organ shall put forward the suggestions
for punishment, and the entity under audit or the organ at the higher level and the supervisory organ shall make a timely decision
according to law, and notify the result to the auditing organ in written form; and if a crime is constituted, the entity under audit
shall be subject to criminal liabilities according to law.”

28.

Article 44 shall be changed into Article 45 and be amended as: “Where any other department (including subordinate entities) at the
corresponding level or the government at the lower level commits the acts against the budget or other acts of fiscal revenues and
expenditures against the provisions of the State, the auditing organ, the people’s government or the competent authorities shall,
within the scope of its statutory authorities and in accordance with the laws and administrative regulations, take the following
measures in light of the specific situation:

(1)

Ordering it to pay the money that should be turned over within the time limit;

(2)

Ordering it to return the occupied state-owned assets within the time limit;

(3)

Ordering it to refund the unlawful proceeds within the time limit;

(4)

Ordering to dispose the matter in accordance with the relevant provisions on the unified national accounting system; and

(5)

Other disposal measures.

29.

Article 45 shall be changed into Article 46 and be amended as: “Where an entity under audit commits the acts of financial revenues
and expenditures in violation of the provisions of the State, the auditing organ, the people’s government or the competent authorities
shall, within the scope of its statutory authorities and in accordance with the laws and administrative regulations, take measures
as prescribed in the preceding Article in light of the specific situation, and may impose punishments on the entity under audit according
to law.”

30.

A new article shall be added as Article 47 : “The auditing organ shall make an audit decision within the scope of its statutory authorities,
and the entity under audit shall implement the aforesaid decision.

“Where the auditing organ orders an entity under audit to turn over a sum of money that should be turned over according to law, but
the entity under audit refuses to do so, the auditing organ shall circulate a notice to the competent authorities, and the competent
authorities shall, according to the laws and administrative regulations, withhold the aforesaid money or take other disposal measures,
and notify the results to the auditing organ in written form.”

31.

A new article shall be added as Article 48 : “Where an entity under audit holds objection to an audit decision on financial revenues
and expenditures made by the auditing organ, it may file an application for administrative reconsideration or lodge an administrative
lawsuit according to law.

“Where an entity under audit holds objection to an audit decision on fiscal revenues and expenditures made by the auditing organ,
it may request the people’s government at the same level with the auditing organ for ruling, and the ruling made by the people’s
government at the same level shall be the final decision.”

32.

Article 46 shall be changed into Article 49 and be amended as: “Where the fiscal or financial revenues and expenditures of an entity
under audit break the provisions of the State and the auditing organ considers it necessary to punish the principal and other persons
held to be directly responsible, it shall put forward the suggestions for punishment, and the entity under audit, the organ at the
higher level or the supervisory organ shall timely make a decision according to law and notify the results to the auditing organ
in written form.

33.

Article 48 shall be changed into Article 51 and be amended as: “Anyone who retaliates or makes a false charge against the auditor
shall be given sanctions according to law; and shall be subject to criminal liabilities according to law if any crime is constituted
.”

34.

Article 49 shall be changed into Article 52 and be amended as: “Where an auditor abuses his authorities, resorts to frauds for personal
ends, neglects his duties or divulges national secrets or business secrets he has learnt about, he shall be punished according to
law; and if a crime is constituted, he shall be subject to criminal liabilities according to law.”

This Decision shall come into force as of June 1, 2006.

The Audit Law of the People’s Republic of China shall be re-promulgated after the amendments have been made and the sequential numbers
of the articles are correspondingly adjusted according to this Decision.



 
Standing Committee of the National People’s Congress
2006-02-28

 






NOTIFICATION NO.3, 2006 OF FOREIGN ASSISTANCE PROJECT BID BOARD OF THE MINISTRY OF COMMERCE

Notification No.3, 2006 of Foreign Assistance Project Bid Board of the Ministry of Commerce

Tong Gao [2006] No.3

Foreign Assistance Project Bid Board of the Ministry of Commerce held the 3rd regular meeting on February 24, 2006. Matters of concern
and resolution are notified as follows:

1.

The bid-winning enterprise of three projects including Dormitory for President’s Armed Escort in Guinea-Bissau assistance project
was discussed. The Bid Board opened sealed tenders on February 20, 2006. In all, 12 tender enterprises including Jiangsu Construction
Engineering Corp., Guangsha Chongqing Construction (Group) Co., Ltd., Weihai International Economic & Technical Cooperative Co.,
Ltd., Hainan Construction Engineering General Co., China Railway 23BG Group Corporation Co., Ltd., China Jiangsu International Economic
Technical Cooperation Corp., Gansu Foreign Engineering Corporation, China Shandong Foreign Economic Technical Cooperation Corp.,
China Chongqing International Corporation For Econ. & Tech. Cooperation, Guangdong Xinguang International Group Co., Ltd., China
Railway Wuju Group Corporation and Xinjiang International Economic Technical Cooperation Corp. submitted the tender documents on
time. China SFECO Group Co., Ltd. and Hubei Construction Engineering Group Corporation gave up. The Bid Board, in accordance with
“the Measures for Tender Assessment of Undertaking Foreign Assistance Complete Plant Projects” which was revised in 2005 by the Ministry
of Commerce of the People’ Republic of China, for Trial Implementation and the principles of “competing with no minimum bid ” and
“biding with reasonable lower price “,, determined to confer bid to Hainan Construction Engineering General Corporation after two
steps of tender review with technical measures and integrated quantity measures.

2.

The tender mode of Bahamas Stadium assistance project was discussed. Bid Board adopted limited invitation tender mode, and 19 enterprises
including Anhui Foreign Economic Construction Corporation (group) Co., Ltd., Qilu Construction Group Corporation, Shanxi Construction
Engineering (group) Co., Shanghai Construction Group General Co., Beijing Construction Engineering Group Co., Ltd., Qingdao Construction
Group Corporation, Hunan Construction Engineering Group Corporation, Fujian Construction Engineering Group General Co., China State
Construction Engineering Corp., Yanjian Group Co., Ltd., China Civil Engineering Construction Corporation, China National Overseas
Engineering Corporation, Guangdong Xinguang International Group Co.Ltd., Guangdong Construction Engineering Group Co., Ltd., Jiangsu
Construction Group Corp., China Ershisanye Construction Group Co., Ltd., Chongqing Foreign Construction Corporation Beijing Urban
Construction Group Co., Ltd. and Zhejiang Electric Power Construction Corp. will be invited to participate in the bid. Specific matters
of concern shall be notified later.

3.

The tender mode of Container Inspection Equipment of Ecuador assistance project was discussed. The Bid Board determined to have
tender discussion with NUCTECH Company Limited about the project. Specific matters of concern shall be notified later.

4.

The tender mode of an area in Madagascar about 1￿￿50000 geochemistry measure assistance project. The Bid Board determined to have
tender discussion with China Seismological Bureau about the project. Specific matters of concern shall be notified later.

Foreign Assistance Project Bid Board of the Ministry of Commerce

March 2, 2006



 
Foreign Assistance Project Bid Board of the Ministry of Commerce
2006-03-02

 






DECISION OF THE STATE COUNCIL ON THE COLLECTION OF SPECIAL PETROLEUM INCOMES

The State Council

Decision of the State Council on the Collection of Special Petroleum Incomes

Guo Fa [2006] No. 13

The people’s governments of all provinces, autonomous regions, and municipalities directly under the Central Government, all the ministries
and commissions of the State Council, and the institutions directly under the State Council:

Petroleum is an important strategic resource in the national economic and social development. Since 2004, the profits of the crude
oil exploitation industry in China have increased a lot as a result of the continuous and significant rise of the oil price in the
international market, which has increased the costs of other industries and the society for using the oil, caused the unbalance of
the distribution of benefits among various industries, and affected the smooth running of the economy. For the purpose of properly
balancing the interests of different sides, promoting the reform of oil price forming mechanism, reinforcing the state adjustment
and control, and promoting the national economy to develop in a continuous, sound and coordinative way, the State Council has decided
to collect special incomes of petroleum on the excessive incomes obtained by petroleum exploitation enterprises from selling domestically
produced crude oil as a result of the rise of oil price.

The special petroleum proceeds are non-tax incomes of the central treasury and shall be included into the budget management of the
central treasury. The specific measures on the collection administration shall be formulated and promulgated for implementation by
the Ministry of Finance.

The State Council

March 15, 2006



 
The State Council
2006-03-15

 






123...83Page 2 of 83

CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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