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RESULTS OF THE 2006 YEAR’S INSPECTION OF THE MINISTRY OF COMMERCE ON THE ENTERPRISE QUALIFICATIONS FOR THE IMPLEMENTATION OF FOREIGN AID PROJECTS

Results of the 2006 Year’s Inspection of the Ministry of Commerce on the Enterprise Qualifications for the Implementation of Foreign
Aid Projects

According to the provisions of Measures for Accreditation of Qualifications of the Enterprises Undertaking the Construction of the
Complete Foreign Aid Projects (Order of the Ministry of Commerce [2004] No.9) and the Measures for Accreditation of Qualifications
of the Enterprises Undertaking Foreign Aid Material Projects (Order of Ministry of Commerce [2004] No.10)(hereinafter generally referred
to as Measures for Qualification Ascertainment), 2006 year’s inspection work of the Ministry of Commerce on the enterprise qualifications
for the implementation of foreign aid projects has been roundly started in July, 2006. Until now, the qualification inspection work
has been completely finished, there are in all 300 implementing enterprise of foreign aid projects applied for transacting the qualification
inspection, among which there are 195 implementing enterprises of whole-set project construction assignments and 135 implementing
enterprises of material projects. There are otherwise 46 enterprises which didn’t apply for transacting the qualification inspection.
The inspection results are hereby announced as follows:

Upon inspection, among the 330 enterprises which have applied for transacting the qualification inspection, 290 have passed the qualification
inspection, among which 16 enterprises have got promotions, while 12 enterprises got demotions, and there are otherwise 40 enterprises
which lose the qualifications because of failing to accord with the condition of any grade. In addition, the 46 enterprises which
didn’t apply for transacting the qualification inspection have lost the qualifications automatically. (for details please see the
Schedule of Inspection Results attached afterward)

Appendix: Schedule of the Results of the 2006 Year’s Inspection of the Ministry of Commerce on the Enterprise Qualifications for the
Implementation of Foreign Aid Projects

The Ministry of Commerce

November 24, 2006



 
The Ministry of Commerce
2006-11-24

 






GUIDELINES FOR FINANCIAL INNOVATION OF COMMERCIAL BANKS

Guidelines for Financial Innovation of Commercial Banks

December 6, 2006
Chapter I General Provisions

Article 1

In order to encourage commercial banks to accelerate financial innovation, regulate financial innovation activities, and promote
continuous and healthy development of financial innovations in the banking industry, these Guidelines are formulated in accordance
with the “Banking Supervision Law of the People’s Republic of China”, the “Commercial Bank Law of the People’s Republic of China”
as well as other related laws and regulations.

Article 2

These Guidelines apply to all the Chinese-invested commercial banks, solely foreign-invested banks and Chinese-foreign equity joint
banks which are set up within the territory of the People’s Republic of China.

The policy banks, rural cooperative banks, urban credit cooperatives, rural credit cooperatives, and branches of foreign banks, which
are set up within the territory of the People’s Republic of China, shall refer to these Guidelines when making financial innovations.

The financial asset management companies, trust and investment corporations, financial lease companies, financial companies of business
groups, auto financing companies, currency brokerage companies, and other non-bank financial institutions, which are supervised by
China Banking Regulatory Commission and set up within the territory of the People’s Republic of China, shall refer to these Guidelines
when making financial innovations.

Article 3

The term “financial innovations” refers to the various innovative activities in respect of strategic decision making, system arranging,
institutional setting, personnel preparing, mode of management, business flow and financial products and so on, which are carried
out by commercial banks through bringing in new technologies, applying new methods, expanding new markets and establishing new organizations
in order to adapt to the development of economics, and which are finally embodied into continuous improvement of the risk management
capacities of banks, and the creations and updating of service products and service methods offered to customers.

Article 4

Financial innovation places the interests of the consumers at the core, and follows basic market principles in approach. Through
financial innovation, commercial banks raise their competitive strengths, improve their risk management skills, and better satisfy
the needs of their customers and market requirements. Financial innovation is one of the most important elements of the commercial
banks’ sustainable growth strategy.

Article 5

Commercial banks shall be fully aware that financial innovations and risk management are two sides of the same coin. A pre-condition
of financial innovation is proper risk management. Commercial banks must identify, measure, monitor and control new risks on a timely
basis.

Article 6

Commercial banks shall guarantee the existence of various necessary resources such as staff, funds, information technologies, internal
control resource and risk management resource and so on to carry out financial innovation activities.

Article 7

The China Banking Regulatory Commission (hereinafter referred to as The CBRC) shall take the promotion of financial stability and
the advancement of financial innovation as the prime criteria of sound supervision, insist in taking the principle of paying equal
attention to both encouragement and regulation and attaching importance to both cultivation and risk prevention, and supervise and
administer financial innovation activities of commercial banks subject to the related laws, regulations and these Guidelines.

Article 8

The CBRC will actively create an system and legal environment which is propitious for financial innovations, timely amend related
provisions which are not suitable for financial innovations, and follow up and appraise the supervision rules and policies at regular
intervals and update them timely on the basis of fully considering the market changes and the public needs, so as to continuously
enhance the supervision validity.

Article 9

THE CBRC shall actively drive the construction of a market environment that is suitable for financial innovations, promote the formation
of fair trading rules for financial innovation activities, create a market environment for fair competition, and establish a good
order for financial competition.

Chapter II Basic Principles

Article 10

Commercial banks shall insist on the principle of legality and compliance, abide by laws, administrative regulations, and rules in
the process of financial innovation. No commercial bank shall be allowed to violate any laws and regulations or evade supervision
in any disguised form under the name of financial innovation.

Article 11

Commercial banks shall insist on the principle of fair competition, other than make low-price dumping, vicious competition or other
kinds of unfair competitive behaviors for the purpose of squeezing out competition counter-parties in the process of financial innovation.

Article 12

Commercial banks shall fully respect others’ intellectual property rights other than infringe upon the intellectual property rights
or commercial secrets of others in the process of financial innovation. Commercial banks shall make effective strategies to protect
intellectual property and protect independently innovated financial products and services.

Article 13

Commercial banks shall insist on the principles that the costs can be calculated, the risks can be controlled and the information
shall be fully disclosed in the process of financial innovation.

Article 14

Commercial banks shall “know its own business” in the process of financial innovation. The board of directors and the senior management
shall guarantee themselves to have a good understanding of the bank’s financial innovation business, operation, and market situation
with certain effective methods.

Article 15

Commercial banks shall “know its own risks” in the process of financial innovation. The board of directors and the senior management
shall have an adequate knowledge of the risks in financial innovation activities, appraise, examine and approve the policies concerning
financial innovation activities and the risk limitation of different kinds of new products at regular intervals, so as to limit the
risks of financial innovation activities within a controllable scope.

Article 16

Commercial banks shall “know its own customers” in the process of financial innovation. Commercial banks shall define the target
customer groups, fully investigate the customer’s risk preference, risk recognition capacity and risk tolerance, appraise customers
with the need of business, and provide different financial products and services in the light of different target customer groups.
No commercial bank shall be allowed to provide products and services which are incompatible with the customers’ true needs and risk
tolerance to its customers.

Article 17

Commercial banks shall “know its own counter-parties” in the process of financial innovation. When the commercial banks carries out
business concerning with investment or trading, it shall make a careful analysis and research on its counter party’s credit risks,
market risks and legal risks, make a good management of the counter party’s risks, closely follow up the status of the counter party’s
risks and take effective counter-measures especially when the market circumstance changed greatly.

Article 18

Commercial banks shall comply with code of professional ethics and code of conduct, completely accomplish the duty obligation, and
fully ensure the interests of financial consumers and investors in the process of financial innovation.

Chapter III Operation Mechanism

Article 19

The board of directors of a commercial bank shall be responsible for making financial innovation development strategies and corresponding
risk management policies, and supervise the implementation of the strategies and policies. The board of directors shall make sure
that the senior management staff have adequate funds and qualified professional talented people in order to effectively carry out
the strategies and manage the risks brought about in the process of innovation. The board of directors shall make sure that the development
strategies and risk management policies of financial innovations are in accordance with the overall strategies and risk management
policies of the whole bank.

The senior management shall be responsible for carrying out the development strategies and risk management policies of financial innovations
formulated by the board of directors. The senior management shall set up systems of risk management, internal control, documents
management, audit flow management and institutions concerning trainings and information feedback, which can be applied for effectively
managing innovation activities.

Article 20

Commercial banks shall optimize the internal institutional structure and the business flow, form a business implementation framework
with sound functions of marketing services in the foreground, rigorous risk control in the middle ground, and powerful guaranty and
support in the background, and in light of its real situation, simplify the management levels, gradually reconstruct the existing
“departmental bank”, establish a “flow bank” suitable for financial innovations to realize the separation of foreground, middle ground
and background from each other and their effective coordination and cooperation.

Article 21

Commercial banks shall formulate and improve the internal management procedures concerning products and services of financial innovations,
and the procedures shall at least contain such stages as demand initiation, project initiation, design, development, test, risk evaluation,
examination and approval, commissioning, trainings, sales, post evaluation, and regular renewing; the commercial bank shall analyze
the market demand, target customer and cost-income detailedly, make scientific risk evaluation and risk pricing, accurately measure
the benefits after risk adjustment.

Article 22

Commercial banks shall make bylaws in advance before introducing financial innovation products and services, and formulate operation
provisions, institution of internal management, and reminding contents for customers in accordance with each type of business, and
that whose conditions are mature shall formulate a product manual.

Article 23

Commercial banks shall enhance the input of the information of science and technology for financial innovations, set up an effective
technology support system and management information system for innovation business, guarantee the integrity and safety of data information,
as well as the continuously carrying out operating plans and business flow, and improve the advanced technology of financial innovations.

Article 24

Commercial banks shall establish and improve a customer relationship management system which is considered customer as center regarding
its reality, effectively integrate the information of customers, and provide customers with more innovative products and services
through data analysis and mining, continuously improve the service level for customers, and enhance customer satisfaction.

Article 25

Commercial banks shall gradually set up a performance evaluation and appraisal mechanism suitable for financial innovation activities
so as to form an effective incentive mechanism and enterprise culture atmosphere which can promote financial innovations.

Article 26

Commercial banks shall gradually formulate salary bylaws, training plans and human resource strategies suitable for financial innovation
activities in order to continuously attract professional people with rich experiences, and enhance the professional capacity of financial
innovation.

Article 27

Commercial banks shall organize training activities for financial innovation with different kinds, so as to ensure its staff to have
an intimate knowledge of the features and the work flow of innovative products and services, establish and improve the mechanism
of qualification confirmation and evaluation of the jobholders of related business, and make sure its staff who are engaged in the
innovation business have necessary professional qualifications and practical work experiences.

Chapter IV Protection of Customers’ Interests

Article 28

Commercial banks shall comply with the standard of behavior in its industry and the business conduct for employees of banks, provide
customers with accurate, fair information without misleading, and fully reveal the rights, obligations and risks related to the innovative
products and services in the process of financial innovation.

Article 29

Commercial banks shall comply with the requirements of laws and regulations, as well as the agreements with customers, and perform
necessary confidentiality obligations.

Article 30

Commercial banks shall provide customers with professional, objective and fair suggestions, and especially attach great importance
to and faithfully perform the obligations and duties to customers in accordance with requirements of the related laws in the process
of financial innovation. .

Article 31

Commercial banks shall be competent to identify and appropriately handle different kinds of interest conflicts arising out of financial
innovations, and fairly deal with the interest conflicts between the bank and the customers, or between the bank and the third-party
service provider.

Article 32

Commercial banks shall strictly define bank assets and customer’s assets and separate them, make effective risk separation management,
and make an adequate protection of customer’s assets.

Article 33

Commercial banks shall establish corresponding records about customer information fitting for the requirements of innovation services,
do a good job in the evaluation of customers’ suitability to the innovative products and services, and induct customers to invest
and consume rationally.

Article 34

Commercial banks shall, in the process of financial innovation, establish channels to effectively take up the complaints and suggestions
from customers, timely, efficiently, and responsibly deal with the customers’ complaints, summarize and analyze the information from
customers’ complaints at regular intervals, report the customers’ complaints and the corresponding settlement to the related persons
and departments at regular intervals, study and handle customers’ potential requirements and improvement suggestions regarding financial
innovations, and continuously improve the service quality and service level of financial innovations.

Chapter V Risk Management

Article 35

The risk management of financial innovation activities shall be involved into the uniform risk management system of the whole bank
by a commercial bank’s board of directors and the senior management.

The risk management committee under the board of directors shall implement unified management on the risks in financial innovation
activities and other traditional business, formulate proper procedures of risk management and measures of risk control, and clearly
define the detailed duties of each business line and related departments.

Article 36

Commercial banks shall formulate perfect risk management policies, procedures and risk limitations, and make sure that the different
kinds of financial innovation activities are in accordance with its management capacity and professional level.

Article 37

Commercial banks shall establish and improve a framework for risk management by the way of effective management information system,
fully identify, measure, monitor and control the risks brought from financial innovation activities.

Article 38

Commercial banks shall establish perfect internal control bylaws fitting for the nature and scale of the different kinds of financial
innovation business, and examine the establishment and implementation of the internal control institutions through independent internal
audit and external audit.

Article 39

Commercial banks shall make rigid compliance examination to the financial innovation activities to be carried out, accurately define
the different kinds of juridical relationships involved in thereof, clarify the laws and policies which might be concerned, study
and formulate corresponding settlement measures, and earnestly prevent compliance risks.

Article 40

Commercial banks shall verify and modify the critical models, assumed conditions and model parameters at regular intervals in the
light of the policy adjustments and market environment changes, and regarding the features of financial innovation activities, and
formulate risk forewarning and pre-arranged for risk disposal. The board of directors and the senior management shall be responsible
for making plans responded to business emergency and continuity plans.

Chapter VI Supervision and Administration

Article 41

The CBRC encourages commercial banks with following conditions to make financial innovations:

(1)

Its capital adequacy ratio is up to the standards;

(2)

It has good corporate governance structure;

(3)

It has rigorous internal control;

(4)

Its core index of risk supervision is in accordance with the prudence requirements of the regulatory authorities; and

(5)

There is no significant behavior to offend against the law or break the rule in the latest three years.

Article 42

As regards the financial innovation activities, the CBRC will simplify the procedures of examination and approval, change the way
of supervision, formulate the standards for prudent supervision and procedures for operating supervision for different kinds of new
business, intensify persistency supervision, pay more attention to the whole course risk control of risk management, internal audit,
pricing mechanism, information disclosure and other procedures concerning innovation activities, and warn the risks in time.

Article 43

The CBRC encourages commercial banks to make business communications with the CBRC in advance, and exchange opinions in light of
the focused risks and the risk control measures in order to improve the efficiency of examination and approval.

Article 44

The CBRC encourages commercial banks to establish more open and more cooperative relationship between the regulating department and
the regulated departments in the activities of financial innovation, timely report the risk incidents or significant changes in the
market environment to the regulatory authority with responsibility.

Article 45

The CBRC, commercial banks and the banking association shall have responsibility to jointly enhance the promulgation and education
of financial knowledge to the public, promote the public’s knowledge of financial innovations and recognition of the principle that
the buyer is to be responsible for one’s own action, enhance the public’s comprehension to the modern financial knowledge, and continuously
strengthen the public’s risk prevention consciousness and risk tolerance.

Article 46

If a commercial bank violates these Guidelines, the CBRC shall penalize it by related laws and regulations, and by taking other corresponding
supervisory measures.

Chapter VII Supplementary Provisions

Article 47

The CBRC shall be responsible for the interpretation of these Guidelines.

Article 48

These Guidelines shall enter into force as of December 11, 2006.



 
The China Banking Regulatory Commission
2006-12-06

 






ANNOUNCEMENT ON THE FIRST PUBLIC BIDDING FOR EXPORT QUOTAS OF CARBORUNDUM OF 2007

Announcement on the First Public Bidding for Export Quotas of Carborundum of 2007

The first public bidding for export quotas of carborundum of 2007 will start on December 15, 2006. In accordance with the relevant
provisions of Measures for the Invitation of Bid for Export Commodity Quotas and Circular on Printing and Issuance of Detailed Rules
on the Implementation of the Invitation of Bid for Export Quota of Industrial Products (Wai Jing Mao Mao Fa [2001] No.626), the relevant
matters are promulgated as follows:

I.

Name and Scope of the Commodities under the Invitation for Bid

Carborundum

Custom Coding of the Commodities:

28492000 Carborundum

38249090.10 Raw Carborundum

II.

Amount of Biding:

Amount of this public bidding of carborundum: 109,000 tons

III.

Time for Bid

Time for Biding: From December 15, 2006 to December 18, 2006

Time for Ending the Invitation for Bidding: 16￿￿0, December 18, 2006

Time for Opening Bid: 10￿￿0, December 19, 2006

IV.

Means of Bid

Bids will be conducted via www.ec.com.cn. An enterprise may send only one electronic bid document before the time point for ending
the invitation for bidding. When an enterprise successfully sent more than two (including two) electronic bid documents, the bid
documents shall be regarded as invalid.

China International Electronic Commerce Center (EDI) shall be responsible for the technical guarantee work for the electronic bids.
Problems on specific operation shall be interpreted by EDI.

Tel.: 010-67870108 (Call-Center)

010-67800472, 67800334, 67800365, 67800045

Fax: 010-67800343

V.

Amount of Bid

1.

The minimum amount of bid is 100 tons. The maximum amount of bid shall be classified according to the average annual amount of export
goods supply from 2003 to 2005 of the enterprise. The concrete scheme for the classification is as follows:

Average Annual Amount of Export Goods Supply￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿Maximum Amount of Bid

￿￿￿￿￿￿equal or greater than 500 tons￿￿￿￿￿￿￿￿￿￿￿￿average annual amount of export goods supply ￿￿48%

￿￿￿￿￿￿￿￿￿￿￿￿less than 500 tons￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿150 tons

2.

Average Annual Amount of Export Goods Supply=Actual Average Annual Amount of Export￿￿.95 + Actual Average Annual Sum of Export +
National Average Unit Price of Export￿￿.05+ Average Annual Amount of Goods Supply￿￿.05

Given that the actual average annual amount of export of an enterprise is greater than its average annual amount of goods supply,

Average Annual Amount of Export Goods Supply=Actual Average Annual Amount of Export￿￿.95 + Actual Average Annual Sum of Export/ National
Average Unit Price of Export￿￿.05

3.

Any bid document with an amount of bid above its maximum or below its minimum amount of bid shall be treated as an invalid bid.

VI.

Base Price for Bid

A base price of bid is set up for this invitation for bid. A bidding enterprise may directly incept the base price for bid as determined
by the Committee for Invitation for Bid in its own electronic bid document.

Any bid documents with a price level lower than the level of the base price for bid as provided by the Committee for Invitation shall
be treated as an invalid bid.

VII.

Price of Winning Bid and Amount of Winning Bid

The bid prices of all the bidding enterprises shall be sorted in descending order. The amounts of bid of the enterprises shall be
accumulated according to their order. When the accumulative amount of bid equals the total amount of invitation for bid, the enterprises
which are reckoned in the accumulative total amount of bid (i.e. the total amount of invitation for bid) shall be the bid winners.

The amount of winning bid of a bid winner is its amount of bid. If the total amount of bid of the enterprises at the base price level
exceeds the rest amount of quotas, the rest quotas shall be distributed among the enterprises at this price level. Any enterprise
whose amount of winning bid is less than the minimum amount of bid shall be taken as failing to win the bid.

The price of winning bid of an enterprise shall be its price of bid.

VIII.

Inquiry of the Result of Winning Bid

This invitation for bid shall be opened at 10￿￿0, December 15, 2006, and the preliminary result of winning bid will be promulgated
on www.ec.com.cn on the morrow. In case an enterprise has any question, it may submit to the Public Bidding Administration before
15￿￿00, December 22. Any bidding enterprise may inquire about its status of winning bid via www.ec.com.cn after December 25. The
Public Bidding Administration will not issue a written Notice for Winning Bid to each enterprise.

IX.

Deposit for Winning Bid

The deposit for winning bid for this invitation for bid is 10% of the award amount for the bid winner. Any enterprise, after it wins
the bid, shall remit the deposit for winning bid (price of winning bid ￿￿mount of winning bid￿￿0%) into an appointed bank account
before February 28, 2007.

Name of the Entity: China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters

Bank for Opening the Account; Beijing Wanda Square Branch of China CITIC Bank

Account Number: 7112410182600001325

As for any enterprise which fails to pay the deposit for winning bid, the Bidding Office shall execute in accordance with the relevant
provisions of Measures for Invitation of Bid and the Detailed Rules on the Implementation thereof.

X.

The Address of the Bidding Office of Export Quotas of Carborundum

: 17/F, Prime Tower, No. 22 Chaowai Street, Chaoyang District, Beijing

Postal Code: 100020

Tel.: 010-65882501-1721, 1730, 1732

Fax: 010-65882509

Committee for the Invitation for Bid for Export Commodity Quotas

December 11, 2006



 
Committee for the Invitation for Bid for Export Commodity Quotas
2006-12-11

 






NOTIFICATION NO.34, 2006 OF THE TENDERING BOARD FOR FOREIGN ASSISTANCE PROJECTS OF THE MINISTRY OF COMMERCE OF THE PEOPLE’S REPUBLIC OF CHINA

Notification No.34, 2006 of the Tendering Board for Foreign Assistance Projects of the Ministry of Commerce of the People’s Republic
of China

No.34, 2006

Tendering Board of Foreign Assistance Projects of the Ministry of Commerce held the 34th regular meeting of 2006 on Dec 14, 2006.
Relevant matters and decisions are now announced as follows:

1.

The tendering board examined and approved enterprises winning the bid of project of urban water supplying facilities maintenance in
aid of Zambia.

2.

The tendering board examined and approved enterprises winning the bid of project of economic houses in aid of Mozambique.

3.

The tendering board examined and approved results of bid discussion and complementary contract price of the house project in aid of
Grascup of South Africa with China National Complete Plant Import & Export Corporation (Group).

4.

The tendering board examined and approved enterprises winning the bid of project of facilities of information technology like computer
in aid of Macedonia.

5.

The tendering board examined and approved results of bid discussion and complementary contract price of project of inspecting system
of sectional and mobile container in aid of Madagascar with NUCTECH COMPANY LIMITED (NUCTECH).

6.

The tendering board examined and approved bidding forms of the mission of reconnaissance and design of project of conference center
in aid of Africa Union.

7.

The tendering board examined and approved bidding forms of project of container inspecting system in aid of Iraq.

8.

The tendering board examined and approved bidding forms of the 3 projects in aid of Pakistan, including precision machinery and apparatus
technology center, cutting tools and tiny tools producing center, service center of light industry.

9.

The tendering board examined and approved bidding forms of the dormitory project of Huzhiming National Political College in aid of
Vietnam.

Tendering Board of Foreign Assistance Projects of the Ministry of Commerce

Dec 18, 2006



 
The Tendering Board for Foreign Assistance Projects of the Ministry of Commerce
2006-12-18

 






ANNOUNCEMENT NO. 109, 2006 OF MINISTRY OF COMMERCE, GENERAL ADMINISTRATION OF CUSTOMS AND GENERAL ADMINISTRATION OF QUALITY SUPERVISION, INSPECTION AND QUARANTINE, ON REGULATIONS FOR ADMINISTRATION ON SOME OF THE TEXTILES EXPORTING TO BULGARIA AND ROMANIA

Announcement No. 109, 2006 of Ministry of Commerce, General Administration of Customs and General Administration of Quality Supervision,
Inspection and Quarantine, on Regulations for Administration on Some of the Textiles Exporting to Bulgaria and Romania

[2006] No. 109

Bulgaria and Romania will enter EU on January 1, 2007, therefore, as from that day, the related textiles exporting to these two countries
shall be subject to the administration of Sino-EU Memorandum of Understanding on Textiles, with the specific compensation amount
being notified later after consensus reached by China and EU. The exporters shall follow the regulations of Measures for Administration
on Textile Export (Provisional), apply the provisional export licenses on textiles and transact checking and clearance procedures
at the customs.

The Ministry of Commerce

The General Administration of Customs

The General Administration of Quality Supervision, Inspection and Quarantine

December 26, 2006



 
The Ministry of Commerce, the General Administration of Customs and the General Administration of Quality Supervision,
Inspection and Quarantine
2006-12-26

 






CIRCULAR OF CHINA BANKING REGULATORY COMMISSION ON THE FURTHER PREVENTION OF THE RELATED RISKS IN THE TRANSACTIONS BETWEEN BANKING FINANCIAL INSTITUTIONS AND SECURITIES COMPANIES

Circular of China Banking Regulatory Commission on the Further Prevention of the Related Risks in the Transactions between Banking
Financial Institutions and Securities Companies

Yin Jian Fa [2006] No. 97

Each banking regulatory bureau, policy bank, state-owned commercial bank, joint stock bank, and financial asset management company,
credit company, financial company and financial lease company under the direct supervision of China Banking Regulatory Commission:

In recent years, many risks existed in some transactions between banking commercial institutions and securities companies, particularly,
in business of entrusted financial management and inter-bank lending. Recently, the related departments have discovered and investigated
the irregular acts conducted by several commercial banks in their business of depositing and keeping the trading settlement funds
of clients and the illegal acts conducted by a few enterprises to misappropriate bank credit funds for stock speculation. For the
purpose of effectively preventing the risks in the transactions between banking financial institutions and securities companies,
guaranteeing the lawful operation of the business of depositing and keeping the trading settlement funds of clients by the commercial
banks, seriously forbidding the bank funds from entering into the stock market by various means, and guaranteeing the safe and stable
operation of the banking industry, the related matters are hereby informed as follows:

1.

Further strengthening the awareness of lawful operations and risks, and effectively avoiding inter-market risks

Any banking financial institution shall constantly reinforce the financing risk management of securities companies, improve the ability
to warn against risks in advance, increase the asset preservation strength, effectively set up a “firewall” between banks and the
securities market, and seriously avoid the inter-market or inter-industry transfer of risks. When any banking financial institution
engages in the business of depositing and keeping the trading settlement funds of clients, it shall make effective supervision over
the trading settlement funds of clients strictly according to the related provisions, and shall not grant any institution or individual
any loan that is guaranteed by the trading settlement funds of clients.

2.

Setting up and perfecting various rules and systems, consummating the internal control mechanism, and improving the risk management
level.

Any banking financial institution shall integrate the financing to securities companies into a uniform credit management system, and
set up a risk identification and appraisal mechanism according to its business varieties and business scale; and when it engages
in business, it shall carry out a comprehensive appraisal of the qualifications and credits of securities companies, in particular,
shall pay more attention to avoiding the risks in respect of entrusted financial management or inter-bank lending business.

3.

Seriously forbidding the misappropriation of bank credit funds for stock speculation

It is seriously forbidden for any enterprise or individual to misappropriate any bank credit fund from entering the stock market directly
or indirectly, and a banking financial institution shall not grant any loan to any enterprise or individual for stock speculation.
Where any loan is of the misappropriated for stock speculation, a banking financial institution shall immediately adopt timely and
necessary measures to recover the loan. If any enterprise or individual conducts any irregular act, it or he shall be punished seriously,
and the CBRC or its dispatched office shall record such irregular act into the credit management system in collaboration with the
related departments.

4.

Reinforcing the management of individual consumption credits, and avoiding consumption loans from entering into the stock market in
any disguised form

A banking financial institution shall conduct the business of individual consumption credits strictly according to the related laws
and regulations, practically reinforce the management of individual consumption credits, and avoid consumption loans from entering
into the stock market in any disguised form. A banking financial institution shall intensify the examination of the borrowers’ motives,
loan purposes, and repayment sources, etc., and shall not grant individual consumption credits to those clients failing to provide
reasonable loan purposes, or repayment sources; and shall intensify the follow-up capital check to individual consumption loans of
large amount, and guarantee that the loans are used in accordance with the contract. A banking financial institution shall set up
an effective follow-up assessment system for the business of individual consumption loans, sum up experiences and lessons in a timely
manner, and make improvements.

5.

Intensifying the “three examinations” system of loans, and reinforcing the follow-up capital supervision

A banking financial institution shall further reinforce the controlling ability to the loan management, practically fulfill the “three
examinations” system of loans, in particular, reinforce the follow-up examination, carry out an effective track-up and check of the
loan purposes, and avoid the misappropriation of loans; and shall reinforce the control of the borrowers’ accounts, avoid enterprises
from mixing the use of their own funds and credit funds, impose main monitor on the enterprises not only borrowing credit funds but
also conducting stock speculation, and seriously avoid the credit funds from being misappropriated for stock speculation.

6.

Actively taking measures, and doing a good job in risk investigation and disposal

A banking financial institution shall pay more attention to the existing risks and problems in the transactions with securities companies,
further inspect its own initiative, conduct further investigations of possible risks in the transactions with securities companies.
As regards the types of occurred risks, a banking financial institution shall reinforce the collection thereof, adopt effective legal
measures, legally keep the credits and interests of banks, and try to decrease risks and losses; and shall report to the banking
regulatory organ in a timely manner for any important matter.

7.

Reinforcing supervisory cooperation, and closely assisting the investigation and punishment of illegal and irregular acts

The dispatched institutions of CBRC shall reinforce coordination and cooperation with the dispatched institutions of CSRC as well
as other financial regulatory organs, consummate the information exchange and sharing mechanism with other regulatory organs, abundantly
share the sources for supervision, conduct joint check when necessary, and form a combined force of supervision, so as to severely
handle and combat those illegal or irregular acts of misappropriating credit funds for stock speculation.

8.

Strengthening the accountability system, and enhancing the strength to punish related persons held to be responsible

The dispatched institutions of CBRC shall, during the process of risk disposal and assets liquidation, severely punish the persons
held to be responsible for the occurrence of risks in accordance with the related provisions, fortify punishment, and complement
the accountability system; and shall, in accordance with laws and regulations as well as the requirements as indicated in the present
Circular, investigate the acts of misappropriating the trading settlement funds of clients or credit funds for stock speculation
occurred in the transactions between banking financial institutions and securities companies, and fortify the punishment of those
institutions committing illegal or irregular acts and those persons held to be responsible.

All the banking regulatory bureaus shall forward this Circular to each banking regulatory sub-bureau, urban commercial bank, urban
credit cooperative, rural commercial bank, rural cooperative bank, rural credit cooperative, foreign-funded bank, financial asset
management company, credit trust company and financial company within their respective jurisdictions.

China Banking Regulatory Commission

December 31, 2006



 
China Banking Regulatory Commission
2006-12-31

 






INTERIM MEASURES CONCERNING THE CONFIRMATION OF THE RESULTS OF VALUE MAINTENANCE AND APPRECIATION OF THE STATE-OWNED CAPITAL OF FINANCIAL ENTERPRISES

Decree of the Ministry of Finance

No.43

The Interim Measures Concerning the Confirmation of the Value Maintenance and Appreciation Results of the State-owned Capital of Financial
Enterprises have been deliberated and adopted at the ministerial meeting. They are hereby promulgated and shall go into effect as
of March 1, 2007.
Minister: Jin Renqing

January 11, 2007

Interim Measures Concerning the Confirmation of the Results of Value Maintenance and Appreciation of the State-owned Capital of Financial
Enterprises
Chapter I General Provisions

Article 1

With a view to strengthening the supervision and administration of the state-owned capital of financial enterprises, reflecting the
operation status of the state-owned capital of financial enterprises, regulating the confirmation of the value maintenance and appreciation
results of the state-owned capital of financial enterprises, and maintaining the state owners’ equity, the present Measures are constituted.

Article 2

The present Measures apply to the confirmation of the value maintenance and appreciation results of the state-owned capital of state-owned
and state holding financial enterprises, financial holding companies and bonding companies (hereinafter referred to as financial
enterprises) that are set up within the territory of the People’s Republic of China in accordance with law.

Article 3

The “term state-owned capital” as mentioned in the present Measures refers to the various forms of investments that the state contributes
into financial enterprises, the equities as formed therefrom and other equities as legally confirmed to be owned by the State.

With regard to a solely state-owned financial enterprise, its state-owned capital refers to the owner’s equity of this financial enterprise
and other equities as legally ascertained to be owned by the state; while with regard to a state holding enterprise, its state-owned
capital refers to the shares that ought to be owned by the state out of the owner’s equity of this enterprise and other equities
as legally confirmed to be owned by the state.

Article 4

In light of the annual financial report of the financial enterprise, which has been audited by accounting firm and in accordance
with the principle of “integrated policy and level-to-level management”, a financial department under the people’s governments at
the county level or above (hereinafter referred to as financial department) shall confirm the value maintenance and appreciation
results of the state-owned capital of a financial enterprise that is directly governed by it on the basis of comprehensively analyzing
the variable factors which influence the increase or decrease of the state-owned capital within the year.

The financial departments of the higher level shall direct and supervise the work of those of the lower level.

Article 5

A financial enterprise shall prepare its annual financial report in accordance with the facts, earnestly analyze and verify the variable
factors influencing the increase or decrease of the state-owned capital within the year and factually reflect the operation results
of state-owned capital.

Article 6

The financial departments shall take the confirmation results of value maintenance and appreciation of the state-owned capital of
financial enterprises as an important basis to evaluate the performance of these enterprises.

Chapter II Index Calculation

Article 7

Except for the circumstances as provisioned in Article 13 of the present Measures, the value maintenance and appreciation results
of the state-owned capital of a financial enterprise shall be reflected through the indices on the ratio of value maintenance and
appreciation of state-owned capital and the relevant analysis indices shall be taken as reference simultaneously. Index calculation
shall take the annual financial report of the financial enterprise as the basis. If a consolidated financial statement is provided
to the outside, index calculation shall be made on the basis of the consolidated one .

Article 8

The ratio of value maintenance and appreciation of state-owned capital as mentioned in the present Measures refers to the ratio of
the state-owned capital owned by a financial enterprise at the end of a year after deducting the appreciation or depreciation as
a result of objective factors to the state-owned capital owned by this enterprise at the beginning of the year and the calculation
formula shall be as follows:

Ratio of value maintenance and appreciation of state-owned capital = (state-owned capital at the end of the year after deducting the
appreciation or depreciation as a result of objective factors ￿￿state-owned capital at the beginning of the year) ￿￿00%

Article 9

When calculating its ratio of value maintenance and appreciation of state-owned capital, a financial enterprise shall deduct the
corresponding increment of its state-owned capital in case the increment occurs because of any of the following objective factors:

(1)

state investment, which means that the increase of state-owned capital occurs as a result of the state’s input into this financial
enterprise;

(2)

gratuitous transfer, which means that the increase of state-owned capital occurs as a result of the fact that some or all the state-owned
capital of other enterprises are transferred into this enterprise according to the related provisions of the state;

(3)

assets assessment, which means that the increase of state-owned capital occurs as a result of the assets assessment that is conducted
according to the related provisions of the state for restructuring and listing;

(4)

appraisal of fixed assets and circulating funds, which means that the increase of state-owned capital occurs as a result of the appraisal
of fixed assets and circulating funds that is conducted according to the related provisions of the state;

(5)

definition of property rights, which means that the increase of state-owned capital occurs as a result of the definition of property
rights that is conducted according to the related provisions of the state;

(6)

tax policies, which means that the state-owned capital is increased according to the related tax policies of the state;

(7)

capital (stock) premium, which means that the increase of state-owned capital occurs as a result of the fact that the financial enterprise,
with its entire or main assets, issues stocks or distributes stock dividends at a premium;

(8)

accounting adjustment, which means that the increase of state-owned capital occurs as a result of the major variation of the enterprise’s
operational achievements within the year resulted from the major modification of accounting policies or accounting valuation, adjustment
of accounting error and so on.;

(9)

Other objective factors, which mean that the increases of state-owned capital occurs as a result of the factors which do not fall
within any of the circumstances mentioned above but are confirmed by the financial departments according to the related provisions.

Article 10

When calculating the ratio of value maintenance and appreciation of state-owned capital, the corresponding reduced amount shall be
added in case the state-owned capital of a financial enterprise reduces because of any of the following objective factors:

(1)

gratuitous transfer, which means that the reduce of state-owned capital occurs as a result of the fact that some or all the state-owned
capital of the financial enterprise is transferred into other enterprises according to the related provisions of the state;

(2)

assets assessment, which means that the reduce of state-owned capital occurs as a result of the assets assessment that is conducted
according to the related provisions of the state for restructuring and listing;

(3)

appraisal of fixed assets and circulating funds, which means that the reduce of state-owned capital occurs as a result of the appraisal
of fixed assets and circulating funds that is conducted according to the related provisions of the state;

(4)

definition of property rights, which means that the reduce of state-owned capital occurs as a result of the definition of property
rights that is conducted according to the related provisions of the state;

(5)

policy-related losses, which means that the reduce of state-owned capital occurs as a result of the losses suffered from undertaking
the policy-related business of the state within the year and the reduce has been confirmed by the financial department;

(6)

accounting adjustment, which means that the reduce of state-owned capital occurs as a result of the major variation of the enterprise’s
operational achievements within the year resulted from the major modification of accounting policies or accounting valuation adjustment
of accounting error and so on.;

(7)

force majeure, which means that the state-owned capital is reduced for majeure including natural disaster;

(8)

other objective factors, which mean that the reduce of state-owned capital occur as a result of the factors which do not fall within
any of the circumstances mentioned above but are confirmed by the financial departments according to the related provisions.

Article 11

The analysis indices on value maintenance and appreciation of the state-owned capital of financial enterprises may be sorted into
general indices and industrial indices.

General indices cover the rate of return on net assets, profit growth rate, rate of return on total assets, bad assets rate and so
on, and apply to all kinds of financial enterprises.

Industrial indices cover the capital sufficiency rate, bad loans rate, solvency sufficiency rate, net capital liability ratio and
so on, among which , the capital sufficiency rate and the bad loans rate apply to banking financial enterprises, the solvency sufficiency
rate applies to insurance-related financial enterprise, and the net capital liability ratio applies to securities-related financial
enterprises.

Article 12

Where the ratio of value maintenance and appreciation of the state-owned capital of a financial enterprise is above 100%, the value
of its state-owned capital is appreciated; where the ratio equals 100%, the value is maintained; and where the ratio is below 100%,
the value is depreciated.

Article 13

It is not required to calculate the ratio of value maintenance and appreciation of state-owned capital, and the results of value maintenance
and appreciation of state-owned capital may be determined directly in case of any of the following circumstances:

(1)

in case the state-owned capital at the beginning of the year is a negative value and that at the end of the year after deducting the
appreciation or depreciation as a result of objective factors is a positive value, the result of value maintenance and appreciation
of the state-owned capital shall be appreciation;

(2)

in case the state-owned capital at the beginning of the year is a positive value and that at the end of the year after deducting the
appreciation or depreciation as a result objective factors is a negative value, the result of value maintenance and appreciation
of the state-owned capital shall be depreciation;

(3)

in case the state-owned capital at the beginning of the year is a negative value, that at the end of the year after deducting the
appreciation or depreciation as a result of objective factors is a negative value and its absolute value is larger than the value
at the beginning of the year, the result of value maintenance and appreciation of the state-owned capital is depreciation;

(4)

in case the state-owned capital at the beginning of the year is a negative value, that at the end of the year after deducting the
appreciation or depreciation as a result of objective factors is a negative value and its absolute value is smaller than the value
at the beginning of the year, the result of value maintenance and appreciation of the state-owned capital is appreciation.

Chapter III Reporting Requirements

Article 14

A financial enterprise directly under the administration of the Central Government shall report to the Ministry of Finance the following
materials prior to May 15 of each year:

(1)

data and circumstance description about the value maintenance and appreciation of state-owned capital, including the accomplishment
situation of value maintenance and appreciation of state-owned capital, the contrastive analysis with the results ascertained in
the previous year, explanation on the objective factors influencing the increase and decrease of state-owned capital, explanation
on the standards for the adjustment of the data obtained at the beginning of the year, explanation on any major fluctuation or abnormal
variation of analysis indices, and other information needs reporting;

(2)

the related evidential materials on the objective factors influencing the increase and decrease of state-owned capital, including
the documents of the related departments of the state.

The materials to be reported to the financial departments of the same level by local financial enterprises and the filing time shall
be stipulated otherwise by the provincial financial departments.

Article 15

A financial department at the provincial level shall, prior to May 15 of each year, report the Ministry of Finance the data and circumstance
description of the previous year on value maintenance and appreciation of state-owned capital of the financial enterprises within
its region .

Article 16

The materials on value maintenance and appreciation of state-owned capital reported by a financial enterprise shall be authentic
and complete, and the filling standards shall be in accordance with the related provisions.

Article 17

The principle of a financial enterprise shall be responsible for the authenticity and integrity of the materials on value maintenance
and appreciation of state-owned capital reported by this enterprise.

Chapter IV Results Confirmation

Article 18

After receiving the materials filed by the provincial financial departments and the financial enterprises directly under the administration
of the Central Government, the Ministry of Finance shall measure and calculate the standard values for confirming the results of
value maintenance and appreciation of state-owned capital of the financial enterprises of each industry of the whole nation, and
shall , prior to June 20 of each year, print and distribute them to the provincial financial departments and the financial enterprises
directly under the administration of the Central Government.

The standard values of each industry for the confirmation of the results of value maintenance and appreciation of state-owned capital
shall be classified into five grades, that is, excellent, good, adequate, poor and bad.

Article 19

After receiving the materials filed by a financial enterprise, the Ministry of Finance shall according to the related provisions
of the present Measures, examine the materials, confirm the result and then determine the grade of value maintenance and appreciation
of state-owned capital on the basis of the confirmed result, standard values as well as reference and analysis indices.

Article 20

The financial departments shall feedback the confirmed results and grades of value maintenance and appreciation of state-owned capital
of the financial enterprises to the corresponding financial enterprises and the related departments prior to July 30 of each year.

Article 21

A financial department at the provincial level shall, prior to August 30 of each year, file the Ministry of Finance the situation
on the confirmation of the results of value maintenance and appreciation of state-owned capital of the financial enterprises within
its jurisdiction as well as the summary and analysis report.

Article 22

The results of value maintenance and appreciation of state-owned capital, which are provided to the outside by a financial enterprise,
shall be the results that have been confirmed by the financial department of the same level.

Chapter V Penalty Provisions

Article 23

In case any financial enterprise fails to file the materials on value maintenance and appreciation of state-owned capital according
to the provisions of the present Measure, the financial department of the same level shall order it to make corrections within a
fixed time limit.

Article 24

In case any financial enterprise falls within such circumstances as failing to report the related materials, hiding the truth and
providing false materials, etc. when filing the materials on value maintenance and appreciation of state-owned capital, the financial
department of the same level shall order it to make corrections within a fixed time limit and shall give it an admonition.

Article 25

In case any accounting firm or certified public accountant issues any false report and causes the results of value maintenance and
appreciation of state-owned capital seriously untrue, punishment shall be imposed thereupon by the financial department in accordance
with law.

Article 26

In case any of the functionary of financial departments abuses his/her power, neglects his/her duties, commits any self-seeking misconduct
or leaks the business secrets of financial enterprises, administrative punishment shall be imposed on him/her in accordance with
law.

Chapter VI Supplementary Provisions

Article 27

The measures for the confirmation of the results of value maintenance and appreciation of the state-owned capital of financial assets
management companies shall be provisioned otherwise.

Article 28

A provincial financial department may, in accordance with these Measures and in light of the actual situation of the region, formulate
the specific measures for the implementation of the present Measures and shall file the measures with the Ministry of Finance for
record.

Article 29

The present Measures shall go into effect as of March 1, 2007.



 
The Ministry of Finance
2007-01-11

 






DECISION OF THE STATE COUNCIL ON REVISING THE REGULATION OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING THE EXPORT CONTROL OF DUAL-PURPOSE NUCLEAR PRODUCTS AND RELEVANT TECHNOLOGIES

Order No. 484 of the State Council

No. 484
The Decision of the State Council on Revising the Regulation of the People’s Republic of China Concerning the Export Control
of Dual-purpose Nuclear Products and Relevant Technologies is hereby promulgated, and shall go into effect as of the date of promulgation.
Premier of the State Council Wen Jiabao

January 26, 2007

Decision of the State Council on Revising the Regulation of the People’s Republic of China Concerning the Export Control of Dual-purpose
Nuclear Products and Relevant Technologies

As regards the Regulation of the People’s Republic of China Concerning the Export Control of Dual-purpose Nuclear Products and Relevant
Technologies, the State Council has determined to make the following amendments:

1.

Article 1 shall be revised as: “The present Regulation is formulated in order to reinforce the export control of dual-purpose nuclear
products and relevant technologies, prevent nuclear weapons from diffusing, keep away the acts of nuclear terrorism, promote the
international cooperation in peacefully utilizing nuclear energy, and safeguard national security and social public benefits.”

2.

Article 2 shall be revised as: “The export of dual-purpose nuclear products and relevant technologies” as mentioned in the present
Regulation means the transfer of the equipment, materials, software and relevant technologies incorporated in the List for the Export
Control of Dual-purpose Nuclear Products and Relevant Technologies (hereinafter referred to as the Control List) in methods of the
trading export, endowments to and exhibitions in foreign countries or regions, as well as scientific and technological cooperation
with and assistance and services, etc. to foreign countries or regions.”

3.

Article 3 shall be revised as: “The state shall strictly control the export of dual-purpose nuclear products and relevant technologies,
rigorously perform its international obligation of not diffusing nuclear weapons, and prevent dual-purpose nuclear products or relevant
technologies from using for the purpose of nuclear explosion or the activities of nuclear terrorism.

The state may take any necessary measure for the export of dual-purpose nuclear products and relevant technologies in order to maintain
national security as well as international peace and safety”

4.

Article 6 shall be revised as: “The export of dual-purpose nuclear products and relevant technologies shall be approved on the basis
of the recipient party’s promises as follows:

(1)

The recipient party should promise that the dual-purpose nuclear products and relevant technologies that are supplied by China or
any duplicate thereof will not be utilized for nuclear explosion purposes or any other purpose exceeding the declared final ones.

(2)

The recipient party should promise that the dual-purpose nuclear products and relevant technologies that are supplied by China or
any duplicate thereof will not be utilized for the nuclear fuel cycling that has not accepted the security supervision of International
Atomic Energy Agency. As for a country that has entered into a voluntary security agreement with International Atomic Energy Agency,
this provision may not apply.

(3)

The recipient party should promise that the dual-purpose nuclear products and relevant technologies that are supplied by China or
any duplicate thereof will not be transferred to a third party other than the declared final users without the Chinese government’s
consent.”

5.

Item (3) of Article 8 shall be revised as: “Technical explanations or testing reports on dual-purpose nuclear products and relevant
technologies”; and Item (4) shall be revised as: “Certifications about final users and final uses”.

6.

Article 9 shall be revised as: “As regards the dual-purpose nuclear products and relevant technologies that are exported for overseas
exhibitions, are exclusively used by the Chinese party abroad or are exported for overhauling, and they will be transported back
within the prescribed period, or that are transported back after the overhauling in China to foreign countries or regions, or are
under any other circumstance as provisioned by the Ministry of Commerce, the exporter can, when applying to the Ministry of Commerce
for examination and approval, be exempted from submitting the documents as prescribed by Article 8 of the present Regulation.”

7.

Article 11 shall be revised as: “The Ministry of Commerce shall examine the application upon receipt of an export application form
and the documents prescribed by Article 8 of the present Regulation and make a decision on approval or disapproval within 45 working
days in collaboration with China Atomic Energy Authority or with China Atomic Energy Authority and other departments concerned, as
well as with the Ministry of Foreign Affairs in case diplomatic policies are involved.”

8.

Paragraph 1 of Article 12 shall be revised as: “As regards the export of dual-purpose nuclear products and relevant technologies
that will result in great influences to national security, social pubic interests or diplomatic policies, the Ministry of Commerce
in collaboration with other related departments shall report this to the State Council for approval.”

9.

A new article shall be added as Article 16 : “The customs house may propose a challenge on whether the export of the equipment, materials,
software and relevant technologies exported by an exporter needs to apply for an export permit for dual-purpose nuclear products
and relevant technologies, and may request this exporter to apply for a certification document on whether the exported goods fall
within the scope of export control over dual-purpose nuclear products and relevant technologies to the Ministry of Commerce; in case
the exported goods really fall within the scope of export control over dual-purpose nuclear products and relevant technologies, the
exporter shall, according to the present Regulation, apply for an export permit for dual-purpose nuclear products and relevant technologies.
The concrete measures shall be prepared by the General Administration of Customs in collaboration with the Ministry of Commerce.”

10.

Article 16 shall be altered as Article 17 , and be revised as: “The Ministry of Commerce shall terminate or revoke an granted export
permit, and notify to related departments in written form, where the recipient party violates a corresponding promise made in accordance
with Article 6 of the present Regulation or if the risk of nuclear proliferation or any act of nuclear terrorism occurs.”

11.

A new article shall be added as Article 18 : “An exporter shall set up and perfect an inner control system for the export of dual-purpose
nuclear products and relevant technologies, and appropriately maintain related contracts, invoices, documents, business letters and
telegrams and other materials for five years or more. The Ministry of Commerce may consult and copy related materials.”

12.

A new article shall be added as Article 19 : “Where an exporter knows, ought to know or is informed by the Ministry of Commerce that
the equipment, materials, software or relevant technologies as exported involve the risk of nuclear diffusing or may be used for
nuclear terrorism, they shall dealt with them according to the present Regulation, even though such equipment, materials, software
or relevant technologies are not incorporated into the Control List.”

13.

Article 17 shall be altered as Article 20 and be revised as: “The Ministry of Commerce may, upon approval of the State Council and
in collaboration with relevant departments, temporarily decide to carry out the control to the export of specific dual-purpose nuclear
products and relevant technologies that are not incorporated into the Control List in accordance with the present Regulation.

The “export of specific dual-purpose nuclear products and relevant technologies” as provisioned in the preceding paragraph shall be
subject to approval in accordance with the present Regulation.”

14.

A new article shall be added as Article 21 : “The Ministry of Commerce shall organize the experts in related fields to establish a
consulting committee for the control of dual-purpose nuclear products and relevant technologies, which shall take charge of the consultation,
evaluation and demonstration, etc. of dual-purpose nuclear products and relevant technologies.”

15.

A new article shall be added as Article 22 : “The Ministry of Commerce or the Ministry of Commerce and related departments may investigate
and deter the acts that are suspected of violating the present Regulation. Where necessary, the Ministry of Commerce may circulate
a notice on the equipment, materials, software and relevant technologies to be exported to the customs house. As regards those goods
under customs supervision, the customs house may check or detain them. As regards those goods beyond the customs supervision, the
Ministry of Commerce may seal up or detain them. Related departments and individuals shall cooperate and assist.”

16.

Article 18 shall be altered as Article 23 , and be revised as: “Anyone who exports dual-purpose nuclear products in violation of
the present Regulation shall be punished in accordance with the Customs Law.

Anyone who exports the relevant technologies of dual-purpose nuclear products in violation of the present Regulation shall be warned
by the Ministry of Commerce, and a fine of more than one time but less than five times the illegal business volume shall be imposed;
where the illegal business volume is less than 50,000 Yuan, a fine of more than 50,000 Yuan but less than 250,000 Yuan shall be imposed;
in case illegal gains exist, the illegal gains shall be confiscated; and in case a crime is constituted, criminal liabilities shall
be investigated.”

17.

Article 19 shall be altered as Article 24 , and be revised as: “In case anyone forges, alters, buys or sells export permits, it/he
shall be punished in accordance with the related laws and administrative regulations; and if a crime is constituted, criminal liabilities
shall be investigated.

Where anyone obtains export permits by frauds or any other unjustifiable means, these export permits shall be confiscated by the Ministry
of Commerce and a fine of more than one time but less than five times the illegal business volume shall be imposed upon the violator;
in case the illegal business volume is less than 50,000 Yuan, a fine of more than 50,000 Yuan but less than 250,000 Yuan shall be
imposed; if there exists illegal gains, the illegal gains shall be confiscated; and in case a crime is constituted, criminal liabilities
shall be investigated.”

18.

Article 21 shall be altered into Article 26 , and be revised as: “The Ministry of Commerce may, in light of the actuality, adjust
the Control List, and publicize it in collaboration with China Atomic Energy Authority and related departments.”

19.

A new article shall be added as Article 28 : “The present Regulation shall be applicable to the export of dual-purpose nuclear products
and relevant technologies from bonded areas, export processing zones, other special areas under the customs house’s surveillance,
export surveillance warehouses, bonded logistics centers or other bonded surveillance areas.

The transit, transshipment or pass of dual-purpose nuclear products and relevant technologies shall be governed by the present Regulation
by analogy.”

The order of articles and some wording have been adjusted and amended accordingly in addition.

The present Decision shall go into effect as of the promulgation date.

The Regulation of the People’s Republic of China Concerning the Export Control of Dual-purpose Nuclear Products and Relevant Technologies
shall be revised in accordance with the present Decision, and be re-promulgated.



 
The State Council
2007-01-26

 






ANNOUNCEMENT NO. 8, 2007 OF MINISTRY OF COMMERCE ON ARBITRATION OF ANTI-DUMPING INVESTIGATION OF POTATO STARCH ORIGINATING FROM EU

Announcement No. 8, 2007 of Ministry of Commerce on Arbitration of Anti-dumping Investigation of Potato Starch Originating from EU

[2007] No. 8

In accordance with Anti-dumping Regulations of the People’s Republic of China, Ministry of Commerce of the People’s Republic of China
released announcement on Feb 6, 2006, deciding to carry out anti-dumping investigation on potato starch (hereinafter referred to
as “investigated commodity”) originating from EU.

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

In accordance with Anti-dumping Regulations of the People’s Republic of China, Tariff Committee of the State Council decides to impose
anti-dumping duties on potato starch originating from EU as from Feb 6, 2007, the tariff codes of which are 11081300 in Import and
Export Tariff of the People’s Republic of China.

Rate of Anti-dumping Duties on Different Companies:

AVEBE U.A. 18%

Avebe Kartoffelstarkefabrik Prignitz/Wendland GmbH) 17%

All Others 35%

The duration of the anti-dumping duties on Potato Starch originating from EU is 5 years as from Feb 6, 2007.

Appendix: Ministry of Commerce’s Final Arbitration on Anti-dumping Investigation on Potato Starch Originating from EU

The Ministry of Commerce

February 5, 2006



 
Ministry of Commerce
2007-02-05

 






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

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

Shang Zi Han [2007] No. 10

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

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

1.

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

2.

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

3.

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

4.

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

5.

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

Ministry of Commerce

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

1.

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

2.

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

3.

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

4.

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

5.

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

6.

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

7.

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

8.

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



 
Ministry of Commerce
2007-02-12

 






1...303132...83Page 31 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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