REGULATION ON THE ADMINISTRATION OF FUTURES TRADING

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

No. 489

The Regulation on the Administration of Futures Trading has been adopted at the 168th executive meeting of the State Council on February
7, 2007. It is hereby promulgated and shall enter into force as of April 15, 2007.
Premier Wen Jiabao

March 6, 2007

Regulation on the Administration of Futures Trading
Chapter I General Rules

Article 1

The present Regulation is formulated in order to regulate futures trading, strengthen the surveillance over futures trading, safeguard
the order of the futures market, prevent risks, protect the legitimate rights and interests of all parties to futures trading as
well as the public interests, and improve the energetic yet steady development of the futures market.

Article 2

The present Regulation shall be followed by all entities and individuals conducting futures trading, including the trading based
on commodities contracts, financial futures and options contracts, and other related activities.

Article 3

When conducting the futures trading activities, the principle of openness, fairness, justness and good faith shall be followed. No
illegal activity like fraud, insider dealing and manipulated futures trading prices is permitted.

Article 4

The futures trading shall be performed in the futures exchanges established subject to the law or in other trading places as approved
by the futures regulatory institution of the State Council.

No futures trading is permitted in any place other than those as approved by the futures regulatory institution of the State Council
and nor in any disguised form.

Article 5

The futures regulatory institution of the State Council shall implement uniform surveillance and administration over the futures
markets.

The agencies of the futures regulatory institution of the State Council shall perform the responsibilities of surveillance in accordance
with related provisions of the present Regulation and upon the authorization of the futures regulatory institution of the State Council.

Chapter II Futures Exchange

Article 6

The futures regulatory institution of the State Council shall be in charge of the examination and approval for establishing a futures
exchange.

No entity or individual may set up any futures exchange or organize any futures trading and other related activities in any form without
approval of the futures regulatory institution of the State Council.

Article 7

A futures exchange, which may not take profit-making as its purpose, shall carry out self-disciplinary management in light of its
articles of association. It shall bear civil liabilities to the extent of all of its properties. The person in charge of a futures
exchange shall be designated and dismissed by the futures regulatory institution of the State Council.

The measures for the administration of the futures exchanges shall be formulated by the futures regulatory institution of the State
Council.

Article 8

The member of a futures exchange shall be an enterprise as a legal person or other economic organization that is set up and registered
within the territory of the People’s Republic of China.

A futures exchange may establish a graded member clearing system. The members under the graded member clearing system shall include
the clearing members and non-clearing members.

The qualification for the clearing business of a clearing member shall be approved by the futures regulatory institution of the State
Council. The futures regulatory institution of the State Council shall make a decision of approval or disapproval within three months
as of the receipt of an application for the clearing business qualifications.

Article 9

Where any of the circumstances as prescribed in Article 147 of the Company Law of the People’s Republic of China or any of the following
circumstances occurs, the person may not hold the position of the person in charge or accountant of the futures exchange:

(1)

persons who are the person in charge of a futures exchange, stock exchange or securities register and clearing institution, or the
director, supervisor or senior manager of a futures company or securities company, or any other person as provided for by the futures
regulatory institution where less than five years has elapsed since the date of relieving of his post due to his violation of laws
or disciplines; or

(2)

persons who are lawyers, certified public accountants, or professionals of an investment consultation institution, financial consultancy
institution, credit rating institution, asset appraisal institution or verification institution, where less than five years has elapsed
since the date of relieving of his post due to his violation of laws or disciplines.

Article 10

A futures exchange shall formulate and improve various rules in accordance with the present Regulation and the provisions of the
futures regulatory institution of the State Council, and enhance the risk control of trading activities as well as the surveillance
over its members and staff. The duties shall be performed as follows:

(1)

Providing a trading site and related facilities and services;

(2)

Designing contracts and arranging the listing of contracts;

(3)

Organizing and supervising the transactions, clearing and delivery;

(4)

Ensuring the performance of contracts;

(5)

Surveilling and administering its members subject to its articles of association and trading rules; and

(6)

Other duties as provided for by the futures regulatory institution of the State Council.

No futures exchange may participate in futures transactions directly or indirectly. No futures exchange may make trust investments,
stock investments, investments in non-self-use real property or conduct any other business irrelevant to its duties without going
through the verification of the futures regulatory institution of the State Council and applying for approval to the State Council.

Article 11

A futures exchange shall establish and perfect the following systems for risk control under related provisions of the State:

(1)

The margin system;

(2)

The mark to the market system;

(3)

The system of price limits;

(4)

The system of position limits as well as reports of big position holders;

(5)

The systems of the risk reserve; and

(6)

Other risk control systems as provided for by the futures regulatory institution of the State Council.

A futures exchange that has established the graded member clearing system shall set up and perfect a system of security deposits.

Article 12

Where any abnormal circumstance in the futures market occurs, the futures exchange shall determine the following urgent measures
and shall make a report immediately to the futures regulatory institution of the State Council pursuant to the power and procedures
as prescribed in its articles of association:

(1)

Uplifting the margin;

(2)

Adjusting the price limits;

(3)

Limiting the maximum amount of futures held by its members or clients;

(4)

Suspending the transactions; and

(5)

Taking other urgent measures.

Abnormal circumstance as referred to in the preceding paragraph means the acts of manipulating the futures trading prices in the business
or the occurrence of emergencies due to any force majeure and other circumstances as provided for by the futures regulatory institution
of the State Council.

The futures exchange shall cancel the urgent measures in a timely manner after the disappearance of the abnormal circumstance.

Article 13

A futures exchange shall be subject to the approval of the futures regulatory institution of the State Council when handling such
affairs as follows:

(1)

Formulating or modifying its articles of association or trading rules;

(2)

Listing, suspending, canceling or resuming any type of transaction;

(3)

Listing, modifying or terminating any contract;

(4)

Altering its domicile or business site;

(5)

Merging, splitting or dissolving; or

(6)

Other items as provided for by the futures regulatory institution of the State Council.

The futures regulatory institution of the State Council shall solicit for opinions of the related department of the State Council
when approving the listing of new transaction type in a futures exchange.

Article 14

The revenues of a futures exchange shall be managed and utilized under related provisions of the state, but shall be primarily used
to ensure the operation and improvement of the futures exchange and the facilities thereof.

Chapter III Futures Companies

Article 15

A futures company refers to a financial institution which is set up in accordance with the Company Law of the People’s Republic of
China and the present Regulation and which conducts the business of futures. To set up a futures company shall be subject to the
approval of the futures regulatory institution of the State Council and shall be registered in the company registration organ.

No entity or individual may set up any futures company to conduct the business of futures, or do so in any disguised form without
approval of the futures regulatory institution of the State Council.

Article 16

The applicants shall meet the requirements in the Company Law of the People’s Republic of China and the following circumstances when
applying for the establishment of a futures company:

(1)

having registered capital of RMB 30 million yuan or more;

(2)

having directors, supervisors and senior managers with the qualifications for holding their positions and the employees with the futures
practicing qualifications;

(3)

having its articles of association which comply with the laws and administrative regulations;

(4)

having a continuous profit-making capacity and a good reputation of the main shareholders and actual controllers, and no record of
serious violation in the recent three years thereof;

(5)

having a qualified business site and operation facilities;

(6)

having sound risk management and internal control systems;

(7)

Other circumstances as provided for by the futures regulatory institution of the State Council.

The futures regulatory institution of the State Council may raise the minimum amount of the registered capital upon the principle
of prudent supervision and the degree of risks of various businesses. The registered capital shall be actually paid-in capital. The
shareholders shall make capital contributions in cash or in kind essential to the business operations of a futures company and the
capital contributions in cash shall be more than 85 percent of the total.

The futures regulatory institution of the State Council shall make an examination subject to the principle of prudent supervision,
and make a decision of approval or disapproval within six months as of the receipt of an application for setting up a futures company.

No entity or individual may entrust any other person or accept any other person’s entrustment to hold or manage the stock rights of
any futures company without approval of the futures regulatory institution of the State Council.

Article 17

A licensing system shall be performed for the business of futures companies. A permit shall be granted by the futures regulatory
institution of the State Council in accordance with the business type such as commodity futures and financial futures. Besides the
futures brokerage within the territory of China, a futures company may apply for conducting futures brokerage, futures investment
consultation outside the territory of China and other futures businesses as provided for by the futures regulatory institution of
the State Council.

No futures company may conduct any activity that is irrelevant to the futures business, unless otherwise stipulated by any law, administrative
regulation, or by the futures regulatory institution of the State Council.

No futures company may conduct any self-operation business of futures, nor in any disguised form.

The futures company may neither offer financing service to the shareholders, actual controllers or other affiliated parties thereof,
nor provide guaranty to outsiders.

Article 18

Where a futures company conducts brokerage business, when accepting the entrustment of any client and carrying out any futures transaction
for the client thereof in its own name, the transaction results shall be borne by the client.

Article 19

When a futures company handles the following issues, it shall be subject to the approval of the futures regulatory institution of
the State Council:

(1)

The merger, split-up, suspension of business, dissolution or bankruptcy;

(2)

The alteration of the company form thereof;

(3)

The alteration of the business scope thereof;

(4)

The alteration of the registered capital thereof;

(5)

The alteration of 5 percent or more of the stock rights thereof;

(6)

The establishment, acquisition, taking shares, or termination of any overseas futures institution; or

(7)

Other issues as provided for by the futures regulatory institution of the State Council.

As for the issues referred to in Subparagraphs (4) and (7) in the preceding paragraph, the futures regulatory institution of the State
Council shall make a decision of approval or disapproval within 20 days as of the receipt of an application. With respect to other
issues as prescribed in the preceding paragraph, the futures regulatory institution of the State Council shall make a decision of
approval or disapproval within two months as of the receipt of an application.

Article 20

Where a futures company handles any of the following issues, it shall be subject to the approval of the agency of the futures regulatory
institution of the State Council:

(1)

Altering the legal representative thereof;

(2)

Altering the domicile or business site;

(3)

Establishing or terminating branch within the territory of China;

(4)

Altering the business site, person in charge or business scope of any branch within the territory of China; or

(5)

Other issues as provided for by the futures regulatory institution of the State Council.

As regards the issues as mentioned in Subparagraphs (1), (2), (4) and (5) of the preceding paragraph, the agency of the futures regulatory
institution of the State Council shall make a decision of approval or disapproval within 20 days as of the receipt of an application.
For the affairs as described Subparagraph (3) in the preceding paragraph, the agency of the futures regulatory institution of the
State Council shall make a decision of approval or disapproval within two months as of the receipt of an application.

Article 21

In case of any of the circumstances as prescribed in Article 70 of the Administrative License Law of the People’s Republic of China
or any of the following circumstances committed by a futures company or any of the branches thereof, the futures regulatory institution
of the State Council shall cancel the futures business permit thereof:

(1)

The business license thereof is cancelled by the company registration organ in accordance with related laws;

(2)

It fails to start business operations for three months or more as of the establishment without any justifiable reason, or suspends
its business operations for three consecutive months or longer;

(3)

It submits a cancellation application on its own initiative; and

(4)

Other circumstances as provided for by the futures regulatory institution of the State Council.

A futures company shall settle the related futures businesses and return the margin and other assets to the clients thereof in accordance
with related laws before the cancellation of the futures business permit. Any branch of the futures company shall terminate its business
activities before the cancellation of the business permit and shall settle the clients’ assets properly.

Article 22

A futures company shall establish and perfect business management rules and risk control rules and implement them rigidly, shall
observe the information revealment rules, guarantee the safe custody of the clients’ margin, and report to the futures exchange the
name list of the big clients thereof and the related transactions upon the provisions of the futures exchange.

Article 23

As regards other futures institutions conducting futures investment consultation services and providing intermediary services for
futures companies, they shall obtain the practicing qualifications as approved by the futures regulatory institution of the State
Council. The futures regulatory institution of the State Council shall be responsible for formulating the concrete administrative
measures.

Chapter IV Basic Rules on Futures Trading

Article 24

The parties that carry out futures trading in a futures exchange shall be members of the futures exchange.

Article 25

When accepting a client’s entrustment to trade futures on his account, a futures company shall offer the client with a risk disclosure
statement in advance, and shall conclude a contract in written form with the client after the confirmation of him with a signature.
No futures company may perform futures trading without client’s entrustment or without following the client’s entrustment.

The futures company may neither make any promise of profits to the clients thereof, nor agree on sharing profits or risks with them.

Article 26

Any of the following entities and individuals may not conduct the futures trading. No futures company may accept the entrustment
thereof to trade futures

(1)

The state bodies and public institutions;

(2)

The futures regulatory institution of the State Council, the futures exchanges, the institution that monitors the safe custody of
futures margin, as well as the personnel of the associations of the futures industry;

(3)

The persons that are prohibited to enter into the futures market;

(4)

The entities and individuals can not provide documents certifying that they have opened an account; and

(5)

Other entities and individuals that are not allowed to trade futures as provided for by futures regulatory institution of the State
Council.

Article 27

A client may offer trading instructions to the futures company by ways of writing, telephone, the internet or any other methods as
provided for by the futures regulatory institution of the State Council. The said instructions shall be clear and complete.

The futures company may not induce any client to give trading instructions by concealing any important issue or by any other improper
means.

Article 28

A futures exchange shall publicize the futures contracts of the marketed varieties in a timely manner, in terms of the trading volume,
trading price, volume of positions held, the highest and lowest prices, opening and closing prices, and other real time market information
that shall be publicized, and guarantee the truthfulness and accuracy of the information publicized. No price forecasts information
may be released by any futures exchange.

No real time market information about futures trading may be released by any entity or individual without permission of the futures
exchange.

Article 29

The margin system shall be implemented rigidly in the futures trading. The margin that a futures exchange collects form the members
thereof and a futures company collects from its clients may not be less than the rates as provided for by the futures regulatory
institution of the State Council, or by the stock exchange, and it shall be deposited in a exclusive account that is separated from
the futures company’s own money.

The margin that is collected by a futures company from the clients thereof, belongs to the clients, and shall be prohibited to be
misused for other purposes except for the settlement among its members.

The margin as collected by a futures company from the clients thereof belongs to the clients and shall be strictly prohibited to be
misused for other purposes except for the transferable circumstances as follows:

(1)

Paying the money available as required by the clients;

(2)

Depositing the margin or paying commissions or taxes on the clients’ account; and

(3)

Other circumstances as provided for by the futures regulatory institution of the State Council.

Article 30

A futures company shall open an exclusive account and set up a separate trading code for each of the clients and may not mix up the
codes in the futures trading.

Article 31

Where a futures company conducts the futures brokerage business and other futures businesses as well, it shall observe the principle
of separation of business and separation of funds rigidly, and may not mix them up.

Article 32

The standard warehouse bills, government bonds and other negotiable securities with stable value and high liquidity may be given
by the members and clients of a futures exchange as the margin for the futures trading. The futures regulatory institution of the
State Council shall be in charge of prescribing the types of the securities, methods for calculation, and the proportion of negotiable
securities as margin.

Article 33

Where a banking financial institution conducts the custody of futures margin and in the settlement of futures, the qualifications
thereof shall be reported to the futures regulatory institution of the State Council for approval under the examination and approval
of the banking regulatory institution of the State Council.

Article 34

The clearing members of a futures exchange, futures company or non-futures company shall withdraw, manage and use the risk reserve
subject to the provisions of the futures regulatory institution of the State Council and of the finance department, may not misappropriate
it.

Article 35

The related competent authority of the State Council shall be responsible for uniformly formulating and publicizing the items, rates
of service fees as well as the related administrative measures.

Article 36

An open and centralized method for business shall be applicable for the futures trading or any other form as approved by the future
regulatory institution of the State Council.

Article 37

The futures exchange shall organize the settlement of futures trading uniformly.

The futures exchange shall implement the mark to the market system. It shall notify the members of the trading results on the current
day in a timely manner.

A futures company shall carry out the settlement about the transactions to the clients in accordance with the settlement result of
the futures exchange and shall notify the client of the said result in a way as agreed with the client in a timely manner. The client
shall inquire and properly deal with his trading positions timely.

Article 38

Where the margin of a futures exchange member is not enough, this member shall replenish the margin or close his positions on his
own initiative in a timely manner. If the aforesaid member fails to do so within the time limit as provided for by the futures exchange,
his futures contract shall be forcibly closed by the futures exchange, and the related expenses or losses so incurred shall be borne
by the member.

Where the margin of a client of a futures exchange is not enough, this client shall replenish the margin or close his positions on
his own initiative in a timely manner. If the aforesaid member fails to do so within the time limit as provided for by the futures
exchange, his futures contract shall be forcibly closed by the futures exchange, and the related expenses or losses so incurred shall
be borne by the client.

Article 39

The futures exchange shall uniformly organize the delivery in futures trading.

The delivery warehouse shall be appointed by a futures exchange. The futures exchange may not restrict the total amount of the delivery
settlement, and it shall conclude an agreement with the delivery warehouse to specify the rights and obligations respectively. No
following act shall be committed by the delivery warehouse:

(1)

issuing any false warehouse bill;

(2)

violating the business rules of the futures exchange, or restricting the entering or leaving of the goods in the delivery warehouse;

(3)

divulging any business secret with respect to the futures trading;

(4)

participating in the futures trading that is in violation of the related provisions of the state; or

(5)

any other acts as provided for by the futures regulatory institution of the State Council.

Article 40

Where any member has a breach of contract in futures trading, the margin of this member shall be used by the futures exchange for
bearing the liability for breach of contract. If the margin is not enough, the risk reserve and the funds owned by the futures exchange
shall be used for bearing the liabilities on the account of the said member, and then this futures exchange has the right to claim
repayment afterwards against the member in question.

If a client has a breach of contract in futures trading, the margin of the client shall be firstly used by the futures exchange for
bearing the liability for breach of contract. If the margin is not enough, the risk reserve and the funds of this futures exchange
shall be used for bearing the liabilities on that client’s account, and then the said futures exchange has the right to claim repayment
afterwards against the client in question.

Article 41

Where a futures exchange performs a graded member clearing system, it shall collect a sum of security from each of the clearing members
thereof. The futures exchange shall merely carry out settlement with the clearing members, collect and supplement security money,
the clearing security money, risk reserve and the fund of this futures exchange shall be used for bearing the liabilities for breach
of contract on the clearing members’ account, and other related measures shall be adopted. The clearing members shall be responsible
for performing settlement with the non-clearing members, collecting and supplementing security money, and bearing the liabilities
for breach of contract on the non-clearing members’ account with the clearing security money, risk reserve and their own fund, and
adopting other related measures.

Article 42

The completeness and safety of the futures trading, settlement and delivery materials shall be guaranteed by the clearing members
of a futures exchange or future company or non-futures company.

Article 43

No false information about futures trading may be fabricated or spread by any entity or individual, nor may manipulate the futures
trading prices by malicious collusion, joint trading or by other means.

Article 44

No entity or individual may use any credit fund or treasury fund for carrying out futures trading in violation of related rules.

Where a banking financial institution conducts the financing or guaranty business regarding futures trading, the qualifications thereof
shall be subject to the approval of the banking regulatory institution of the State Council.

Article 45

When conducting futures trading within or outside the territory of China, the state-owned or state controlled enterprises shall observe
the hedging principle and strictly follow the related provisions of the state-owned asset surveillance and administration institution
of the State Council and other related departments on enterprises’ entering the futures market with state-owned assets.

Article 46

The commerce competent authority of the State Council shall be in charge of the examination and verification of the varieties of
commodity futures which may be traded outside the territory of China by the entities or individuals within the territory of China.

The purchase, settlement, incomes and expenses of foreign exchange under the futures outside the territory of China shall comply with
the related provisions of the state on the administration of foreign exchange.

The measures for entities or individuals within the territory of China to conduct futures trading outside the territory of China shall
be formulated by futures regulatory institution of the State Council jointly with the commerce administrative department, state-owned
asset surveillance and administration institution, banking regulatory institution, foreign exchange administrative department and
other related departments of the State Council, and shall be performed subject to the approval of the State Council.

Chapter V Associations of the Futures Industry

Article 47

The associations of the futures industry shall be self-disciplinary organizations of the futures industry. They are mass organizations
as a legal person.

The futures companies and other institutions that conduct futures trading exclusively shall join an association of the futures industry
and pay the membership fee.

Article 48

The authority of an association of the futures industry shall be the general assembly of the members thereof.

The general assembly of the members thereof shall prepare for the articles of association of the association of the futures industry
and shall submit them to the futures regulatory institution of the State Council for archival filing.

The association of futures industry shall establish a council, the members of which shall be elected in accordance with the articles
of association.

Article 49

The following duties shall be performed by the association of the futures industry:

(1)

Organizing and educating the members to follow the laws, regulations and policies concerning futures;

(2)

Formulating industrial self-disciplinary rules that shall be observed by the members, surveilling and inspecting the members’ acts,
and giving a disciplinary sanction to any member who is in violation of the articles of association or self-disciplinary rules of
the association;

(3)

Taking

CIRCULAR OF THE NATIONAL DEVELOPMENT AND REFORM COMMISSION ON COOPERATING WITH FINANCE ADMINISTRATIVE DEPARTMENTS TO DO WELL IN THE IMPLEMENTATION OF PREFERENTIAL TAX POLICIES FOR STARTUP INVESTMENT ENTERPRISES

Circular of the National Development and Reform Commission on Cooperating with Finance Administrative Departments to Do Well in the
Implementation of Preferential Tax Policies for Startup Investment Enterprises

Fa Gai Cai Jin [2007] No. 609

Each archival organ for startup investment enterprises at the provincial level:

For the purpose of promoting the development of startup investment enterprises, the Ministry of Finance and the State Administration
of Taxation have jointly promulgated the Circular Concerning Related Tax Policies for Promoting the Development of Startup Investment
Enterprises (see the Affix, and hereinafter referred to as the Tax Policy Circular) on February 15, 2007. In accordance with the
Tax Policy Circular and the Interim Measures for Administrating Startup Investment Enterprises (hereinafter referred to as the Measures)
as jointly promulgated by the National Development and Reform Commission, the Ministry of Finance, the State Administration of Taxation
and other seven ministries and commissions in November 2005, the related matters are hereby notified as follows so as to coordinate
the implementation of the Tax Policy Notice:

In accordance with Item (1), Article 1 of the Tax Policy Circular, all archival organs shall, according to Articles 9 to 11 of the
Measures, rigidly inspect the archival filing requirements of a startup investment enterprise, and shall also examine the name used
in the industrial and commercial registration and the business scope of the archived startup investment enterprise again. Where a
startup investment enterprise completes the industrial and commercial registration prior to the promulgation of the Measures on November
15, 2005, the original registered name may be retained, but the business scope shall satisfy provisions in the Measures. Where a
startup investment enterprise completes the industrial and commercial registration after the promulgation of the Measures on November
15, 2005, it shall be registered as professional startup investment enterprises such as a “Start-up Investment Company Limited”,
“Start-up Investment Joint-stock Company Limited”, etc.

Whereas the deadline for the settlement and payment of each variety of enterprise income taxes is April 30 for the past years, for
the purpose of timely implementing preferential tax policies, the archival organ at each level shall, together with the finance administrative
department, verify as soon as possible whether the investment is made by the startup investment enterprises before the deadline as
provided for in the Measures, and inform the startup investment enterprises of doing well in declaring tax deduction. For the purpose
of ensuring that the investments made by startup investment enterprises practically conform to the related provisions in the Measures,
the archival organ shall, in accordance with Article 27 of the Measures, make irregular inspections into archived startup investment
enterprises and their management consulting enterprises, and finish regular annual inspections within five months after each accounting
year ends. Where a startup investment enterprise whose investment does not conform to the related provisions in the Measures upon
irregular inspections, it may not apply for deductions in taxable incomes after the year. Where It is found in regular inspections
that the investment of a startup investment enterprise investment does not conform to the related provisions in the Measures upon
regular inspections, the finance administrative department at the same level shall be suggested to cancel the deduction amount of
taxable incomes obtained upon application on the basis of the investment amount of the last year.

According to Article 6 of the Tax Policy Circular, the provincial finance administrative department of each province, autonomous
region, or municipality directly under the Central Government shall, together with the archival organ, examine and announce the name
list of startup investment enterprises that can enjoy tax preferences, and the provincial archival organ shall report this Commission
the name list of startup investment enterprises that can enjoy tax preferences.

Affix: Circular Concerning Related Tax Policies for Promoting the Development of Startup Investment Enterprises

The National Development and Reform Commission of the People’s Republic of China

March 20, 2007

The National Development and Reform Commission
2007-03-20

SUPPLEMENTARY PROVISIONS ON THE MEASURES FOR THE ADMINISTRATION OF FOREIGN-INVESTED DISTRIBUTION ENTERPRISES OF BOOKS, NEWSPAPERS, AND PERIODICALS

Decree No. 33 of the General Administration of Press and Publication and the Ministry of Commerce

No. 33

The Supplementary Provisions on the Measures for the Administration of Foreign-invested Distribution Enterprises of Books, Newspapers,
and Periodicals have been adopted at the executive meeting of the General Administration of Press and Publication and by the Ministry
of Commerce on November 29, 2006. They are hereby promulgated for entry into force as of May 1, 2007.

Long Xinmin, Director of the General Administration of Press and Publication

Bo Xilai, Minister of the Ministry of Commerce

April 2, 2007

Supplementary Provisions on the Measures for the Administration of Foreign-invested Distribution Enterprises of Books, Newspapers,
and Periodicals

For the purpose of establishing a Hong Kong/Macao Closer Economic Partnership with the Mainland, the following supplementary provisions
are hereby constituted to the Measures for the Administration of Foreign-invested Distribution Enterprises of Books, Newspapers,
and Periodicals in accordance with Supplementary Agreement No. 3 on Hong Kong/Mainland Closer Economic Partnership Arrangement and
Supplementary Agreement No. 3 on Macao/Mainland Closer Economic Partnership Arrangement:

Where a Hong Kong or Macao service supplier has accumulatively set up over 30 stores in the Mainland, if it is engaged in the business
of books, newspapers or periodicals, etc. which have different trademarks and are provided by different suppliers, it is allowed
to hold a controlling share with a limitation of no more than 65%.

General Administration of Press and Publication, Ministry of Commerce
2007-04-02

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING INTENSIFYING THE ADMINISTRATION OF THE TRIAL IMPLEMENTATION OF TAX EXEMPTION, OFFSET AND REFUND FOR THE EXPORT OF PURCHASED PRODUCTS BY SPECIFIED PRODUCING ENTERPRISES

Circular of the State Administration of Taxation concerning Intensifying the Administration of the Trial Implementation of Tax Exemption,
Offset and Refund for the Export of Purchased Products by Specified Producing Enterprises

Guo Shui Han [2007] No.468

All state taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically
designated in the state plan:

By the end of 2006, in light of the actual situation of the previous period of the trial implementation of tax exemption, offset and
refund for the export of purchased products by specified producing enterprises, the State Administration of Taxation, after consulting
with the Ministry of Finance, issued the Circular of the State Administration of Taxation on the Adjustment of the List of Enterprises
Selected for the Trial Implementation of Tax Exemption, Offset and Refund for the Export of Purchased Products (Guo Shui Han [2006]No.945),
made some adjustments on the list of selected enterprises and advanced new requirements for doing a good job. With a view to guaranteeing
the smooth operation of the trial work of tax exemption, offset and refund for the export of purchased products by producing enterprises
and intensify the administration of tax collection, a circular on relevant issues is hereby rendered as follows:

In each locality, the trial work of tax exemption, offset and refund for the export of purchased products by producing enterprises
shall be paid high attention, the examination and approval of applications of specified enterprises for tax exemption, offset and
refund for the export of purchased products shall be done in strict accordance with Document Guo Shui Han [2006] No.945, the authenticity
of the relevant vouchers and electronic information on tax refund (exemption) shall be guaranteed, and the features and changes of
the export of purchased products by producing enterprises shall be under close watch.

Specific administrative measures shall be formulated. In each region, effective and feasible administrative measures shall be formulated
in light of the actual situation so as to ensure the implementation of policies on the trial work of tax exemption, offset and refund
for the export of purchased products by producing enterprises and guarantee the trial work is pertinent, the administration is effective
and the measures are effectively implemented.

The summarizing and reporting work shall be well done. The summarizing work shall be well done so as to find out problems in the trial
implementation in time and put forward suggestions in respect of solving these problems. Each region shall upload electronic documents
indicating the semiannual and annual trial implementation, suggestions and the Statistical Table of the Export of Purchased Cargos
by Specified Producing Enterprises (see Appendix) to “upload by local bureaus/work arrangement of SAT” on the communication server
of the Import and Export Department of the State Administration of Taxation before July 10, 2007 and January 10, respectively, 2008.

Appendix: Statistical Table of the Export of Purchased Commodities by Specified Producing Enterprises

State Administration of Taxation

April 30, 2007

Appendix

Appendix:

Statistical Form of the Export of Purchased
Commodities by Specified Producing Enterprises

Reported by: Period:

Unit:

10,000 yuan/ USD 10,000

Enterprise Name	Customs Code	Total Sales Amount			Purchased Commodities		Tax Amount to Be Exempted, Offset and Refunded			Category of Self-made Products	Category of Purchased Commodities
Enterprise Name	Customs Code	Total Sales (RMB)	Total Export(USD)	Export Proportion	Amount of Export(USD)	Proportion	Total Amount	Self-made Products	Purchased Products	Category of Self-made Products	Category of Purchased Commodities
1	2	3	4	5=4~exchange rate/3	6	7=6/4	8=9+10	9	10	11	12

Tabulator: Principal:
Date:

Notes:

1. The first six digits of the customs tariff
number of the category concerned shall be filled out in Columns No.11 and No.12.

Where more than one category are involved, they shall be arranged in the
sequence of customs tariff numbers.

2. The span of difference between the categories
of purchased commodities and those of self-made
products and between the
different categories of purchased commodities shall be paid attention to in all
regions.
3. The data filled out in Columns 3 through 10
shall be the related data of the enterprise from
January 2007 to June 2007 for
the first report made by the enterprise and the data of the enterprise of the
whole year for the
following reports.

MEASURES FOR THE ADMINISTRATION OF FINANCIAL INSTITUTIONS’ REPORT OF TRANSACTIONS SUSPICIOUS OF FINANCING FOR TERRORIST PURPOSES

Decree No.1, 2007 of the People’s Bank of China

[2007]No.1

Under the Anti-Money Laundering Law of the People’s Republic of China, the Law of the People’s Republic of China on the People’s Bank
of China and other laws and regulations, the People’s Bank of China constituted the Measures for the Administration of Financial
Institutions’ Report of Transactions Suspicious of Financing for Terrorist Purposes have been adopted at the 13th executive meeting
on June 8th, 2007. They are hereby promulgated and shall enter into force as of the promulgation date.

President Zhou Xiaochuan

June 11, 2007

Measures for the Administration of Financial Institutions’ Report of Transactions Suspicious of Financing for Terrorist Purposes

Article 1

In order to monitor the activities of financing for terrorist purposes, prevent terrorism-oriented financing by means of financial
institutions and regulate financial institutions’ report of transactions suspicious of financing for terrorist purposes, the present
Measures are constituted under the Anti-Money Laundering Law of the People’s Republic of China, the Law of the People’s Republic
of China on the People’s Bank of China and other laws and regulations.

Article 2

The term “financing for terrorist purposes” as mentioned in the present Measures refers to the following behaviors:

to raise, possess or use funds or other forms of property by terrorist organizations or terrorists;

to assist terrorist organizations, terrorists, terrorism or terrorist criminal activities with funds or other forms of property;

to possess, use or raise funds or other forms of property for terrorist purposes or terrorist criminal activities;

to possess, use or raise funds or other forms of property for terrorist organizations or terrorists.

Article 3

The present Measures are applicable to the following financial institutions established within the territory of the People’s Republic
of China under law:

policy banks, commercial banks, rural cooperative banks, urban credit cooperatives and rural credit cooperatives;

securities companies, futures companies and fund management companies;

insurance companies and insurance assets management companies;

trust and investment companies, financial assets management companies, finance companies, financial lease companies, auto finance
companies and currency brokerage companies;

other financial institutions as determined and announced by the People’s Bank of China.

The present Measures are applicable to the report of transactions suspicious of financing for terrorist purposes by institutions conducting
remittance, payment and clearing business, fund sale business and insurance brokerage.

Article 4

The People’s Bank of China and the branches thereof shall conduct supervision and check over financial institutions’ report of transactions
suspicious of financing for terrorist purposes.

Article 5

The anti-money laundering monitoring and analysis center set up by the People’s Bank of China takes charge of accepting and analyzing
the report of transactions suspicious of financing for terrorist purposes.

If the anti-money laundering monitoring and analysis center finds out that the report of transactions suspicious of financing for
terrorist purposes submitted by a financial institution is incomplete or erroneous, it may send a notice of supplement or correction
to the financial institution, which shall make a supplement or correction within five workdays after accepting the notice.

Article 6

The report of transactions suspicious of financing for terrorist purposes sent by financial institutions their working personnel
for the purpose of fulfilling the obligation of combating financing for terrorist purposes and under law shall be protected by law.

Article 7

A financial institution shall submit to its headquarters the report of transactions suspicious of terrorist-oriented financing, which
shall submit the electronic form of the report to the anti-money laundering monitoring and analysis center within 10 days upon the
occurrence of the related incident or appoint another institution to do so. If a financial institution has no headquarters or it
is impossible for it to report suspicious transactions to the anti-money laundering monitoring and analysis center via its headquarters
or any other institution appointed by its headquarters, the reporting method shall be separately determined by the People’s Bank
of China.

Article 8

In suspicion of any client, fund, transaction or potential transaction involved in any terrorism, terrorist criminal activities,
terrorist organization, or of any person conducting financing activities for terrorist purposes, a financial institution shall submit
a report of transactions suspicious of financing for terrorist purposes, irrespective of whether the amount of funds or the value
of the property involved is huge. A report of suspicious transactions shall be submitted under, but not limited to, any of circumstances
as follows:

any client suspicious of raising or attempting to raise funds or property of other forms for any terrorist organization, terrorist
or crime of terrorist activities;

any client suspicious of providing or attempting to provide funds or other forms of property for any terrorist organization, terrorist,
person conducting financing activities for terrorist purposes or terrorist criminal activities;

any client suspicious of preserving, managing, operating funds or other forms of property for any terrorist organization or terrorists,
or attempting to do so;

any client or his/its trading counterpart suspicious of being a terrorist organization, terrorist or person conducting financing activities
for terrorist purposes;

any fund or any other form of property suspicious of being sourced from or being about to source from any terrorist organization,
terrorist or person conducting financing activities for terrorist purposes;

any fund or property of other forms suspicious of being used or being about to be used for financing for terrorist purposes, crime
of terrorist activities or any other terrorist purposes, or being used by any terrorist organization, terrorist or person conducting
financing activities for terrorist purposes;

other circumstances under which the financial institution and its working personnel have good reasons to suspect that any fund, property
of other forms, transaction or client is involved in terrorism, terrorist criminal activities, terrorist organization, terrorist
or personnel conducting financing activities for terrorist purposes.

Article 9

If any financial institution discovers or has good reasons to suspect that any client or his/its trading counterpart is in relation
to any of the following lists, it shall promptly file a report of suspicious transactions with China Anti-money Laundering Monitoring
and Analysis Center and the local branch of the People’s Bank of China, and take measures under law as required by the related competent
department:

list of terrorist organizations or terrorists as announced by the related department or institution of the State Council;

list of terrorist organizations or terrorists as announced by judicial authorities;

list of terrorist organizations or terrorists as listed in any decision of the Security Council of the United Nations; or

list of other terrorist organization suspects or terrorist suspects that must be paid attention to as required by the People’s Bank
of China.

If there is any other provision on the monitoring of above-mentioned lists in any law or administrative regulations, such provision
shall prevail.

Article 10

Financial institutions may refer to the Measures for the Administration of the Financial Institutions’ Report of Large-sum Transactions
and Suspicious Transactions (Decree No.2, 2006 of the People’s Bank of China) and other related provisions for the specific report
elements, report form and requirements for filling in such reports.

Article 11

If any financial institution violates the present Measures, it shall be imposed upon a punishment by the People’s Bank of China under
the provisions of Article 31 and Article 32 of the Anti-Money Laundering Law of the People’s Republic of China. And the People’s
Bank of China shall make suggestions to China Banking Regulatory Commission, China Securities Regulatory Commission or China Insurance
Regulatory Commission to take any of the following measures in light of different circumstances:

to order the financial institution to stop its business for internal rectification or revoking its business license;

to disqualify the directly liable directors, senior managers and other persons of the financial institution from their posts or to
forbid them to work in the financial industry;

to order the financial institution to impose disciplinary punishment upon the directly liable directors, senior managers and other
persons.

If any branch of the People’s Bank of China at the county (municipal) level finds out any financial institution in violation of the
present Measures, it shall report to the branch of the People’s Bank of China at the next higher level, which shall give a punishment
or make a suggestion under the provision of the preceding paragraph.

Article 12

The Provisions of the People’s Bank of China on the Procedure of Administrative Punishment (Decree No.3, 2001 of the People’s Bank
of China) shall be abided by the People’s Bank of China or any of its branches at or above the county (municipal) level when imposing
any administrative punishment upon any financial institution.

Article 13

When implementing work of preventing and combating financing for terrorist purposes and fulfilling such obligations as establishing
and perfecting inner control system, identifying clients’ identity, keeping clients’ identity-related materials and confidentiality,
etc., financial institutions shall be governed by the related provisions on anti-money laundering

Article 14

The present Measures shall enter into force as of the promulgation date.

People’s Bank of China
2007-06-11

ANNOUNCEMENT NO. 125, 2005 OF MINISTRY OF COMMERCE

Ministry of Commerce

Announcement No. 125, 2005 of Ministry of Commerce

[2005] No.125

Promulgating 2006 Catalogue of Commodities Subject to Export License For the purposes of doing well the works of issuing export license,
2006 License-issuing Catalogue in Grades of Export License is hereby promulgated in accordance with Announcement No. 85 2005 of Ministry
of Commerce and the General Administration of the Customs, 2006 Catalogue of Goods Subject to Export License and relative issues
are announced as follows:

There are 46 goods subject to export license in 2006 (312 HS codes of 8 places). Among them, 6 are subject to the license issued by
Quota License Affairs Bureau (License Bureau in short below), 32 are subject to the license issued by all local commissioner offices
(commissioner office in short below), 8 are subject to the license issued by all local foreign economic and trade commission (department,
bureau), commercial department (bureau) (local license-issuing organs in short below) (see Appendix for details).

For the purposes of safeguarding regular business order, the license for some exported goods are issued by appointed license-issuing
organs or managed by assigned export clearance ports. When exporting these goods, all enterprises for export should apply for export
license to the assigned license-issuing organs, make export declaration at the assigned port, and the assigned license-issuing organs
should issue export license according to the assigned port.

(1)

The Customs of Huangpu, Beihai and Tianjin are assigned to be export clearance ports for antimony (including antimony oxide ore, antimony
oxide, antimony (including antimony alloy) and antimony products);

(2)

The export license for light-burned (dead burned) magnesia, is issued by Dalian Commissioner Office. Assign Dalian (Dayaowan, Bayuquan,
Dandong and East Port), Qingdao (Qingdao Port), Tianjin (East Port and New Port), Changchun (Tumen) and Manzhouli to be export clearance
ports, and relative commodity inspection certificate is handled by the Entry-Exit Inspection and Quarantine Bureau of assigned export
clearance ports.

(3)

The customs of Tianjin, Shanghai and Dalian are assigned to be export clearance ports for licorice root;

(4)

Shanghai (the Customs of Wusong, Pudong Airport, Pu River, Baoshan, the bonded area of Outer Gaoqiao), Guangzhou (the Customs of BaiYun
Airport, Xinfeng Office of Guangzhou Customs), Shenzhen (the Customs of Huanggang and Sungang), Chengdu, Chongqing, Qingdao, Tianjin
(the Customs of Tianjin New Port and East Port), Dalian (Dalian Customs and Dayaowan Customs), Kunming, Wuzhou, Hangzhou are assigned
to be export clearance ports for natural silk;

(5)

The export licenses for live ox, live pig, live chicken, beef, pork and chicken are issued by all commissioner offices, but the licenses
for live ox, live pig and live chicken in Hong Kong and Macau exported by overland freight are issued by the commissioner offices
in Guangzhou and Shenzhen;

(6)

Heilongjiang province appointed Dalian and Suifen River to be export clearance ports for sawn lumber exported in the form of re-export
of imported log processed sawn lumber, appointed Heilongjiang Commercial Department to issue export license.. Inner Mongolian Autonomous
Region assigned Manzhouli, Erlianhot, Dalian, Tianjin and Qingdao to be export clearance ports, and assigned Commercial Office of
Inner Mongolian Autonomous Region to issue export license. Xinjiang Uygur Autonomous Region assigned Alashankou, Tianjin and Shanghai
to be export clearance ports and assigned Foreign Economic and Trade Department of Xinjiang Uygur Autonomous Region to issue export
license.

Except for the rules for management of issuing export license, all license-issuing organs should issue export license for the goods
subject to quota tender in accordance with the name list of the enterprises winning the tender and the quantity they won published
by the Ministry of Commerce and the Certificate of Applying For Export License of Quota Tender Goods issued by the tender offices
concerned.

As for the re-export of imported log processed sawn lumber, the export license should be applied for by the experimental enterprises
that have business qualifications to the license-issuing organs assigned in Article 2 (6) by Export Certificate for Imported Log-Processed
Sawn Lumber in accordance with the provisions of Experimental Measures on Re-export of Imported Log Processed Sawn Lumber promulgated
jointly by the Ministry of Commerce and the General Administration of the Customs, “processed sawn lumber from imported log” must
be noted in the remarks column of the license.

The controlled chemicals and chemicals liable to producing drugs should be handled in accordance with Measures on Management of Import
& Export License for Dual-purpose Biological Products and Technique, the license is issued by License Bureau for Central managed
enterprises in Beijing to export controlled chemicals and chemicals liable to producing drugs and the goods listed in this Catalogue
(Except for those that have special stipulations in this Catalogue). Central Managed enterprises outside Beijing export the goods
subject to the license issued by License Bureau or its assigned license-issuing organs should follow its rules. The export licenses
for other goods should be issued separately by localization commissioner office and local license-issuing organs in accordance with
the license-issuing range stipulated in this Catalogue.

The export license for processing trade and frontier petty trade should be issued in accordance with the provisions of Announcement
No. 85, 2005 delivered jointly by Ministry of Commerce and the General Administration of the Customs.

For the purposes of ensuring the implementation of canceling import & export license after verification through internet, license-issuing
organs must note “non one lot one license” in the “remarks” column of the license for the goods that are not subject to “one lot
one license” while issuing export license.

License-issuing organs must examine, approve and issue export license strictly in accordance with relative provisions of Measures
on Management of Export License for Commodities, Measures on Management of Import & Export License for Dual-purpose Biological Products
and Technique, 2006 Catalogue of Goods Subject to Export License and Specifications of Applying for and Issuing Export License.

Temporary export licenses for the textiles listed in Temporary Managed Commodity Catalogue of Textiles Exported to European Union
and Temporary Managed Commodity Catalogue of Textiles Exported to the United States are examined, approved and issued by local competent
commercial administrations and license-issuing organs in accordance with related provisions of the Specifications of Applying for
and Issuing Temporary Textile Export License.

This Circular shall go into effect on January 1, 2006. License-Issuing Catalogue in Grades for Commodities Subject to Export License
in 2005 shall be nullified simultaneously.

Appendix: Catalogue of Goods Subject to Export License in 2006(omitted)

Ministry of Commerce

January 1, 2006

Ministry of Commerce
2006-01-01

ANNOUNCEMENT NO.115, 2005 OF THE MINISTRY OF COMMERCE OF THE PEOPLE’S REPUBLIC OF CHINA, RELEASING THE INTERIM REVIEW DETERMINATION ON IMPORTED TOLUENE DIISOCYANATE (TDI80/20) ORIGINATED FROM JAPAN AND SOUTH KOREA

Ministry of Commerce

Announcement No.115, 2005 of the Ministry of Commerce of the People’s Republic of China, Releasing the Interim Review Determination
on Imported Toluene Diisocyanate (TDI80/20) Originated from Japan and South Korea

[2005] No.115

Ministry of Commerce issued Announcement No.61, 2003 on November 22, 2003 to start imposing anti-dumping duties on imported Toluene
Diisocyanate (TDI80/20) originating from Japan, South Korea and U.S.. The anti-dumping duty rate on MITSUI TAKEDA CHEMICALS,INC (Japan)
was 4%, that on other Japanese companies was 49%; that on DC Chemical Co.,Ltd. (South Korea) was 3%, that on Korea Fine Chemical
Co., Ltd. (South Korea) was 3%, and that on other South Korean companies was 5%.

Ministry of Commerce issued Announcement on February 3, 2005 to start a Dumping and Dumping Margin Interim Review on the anti-dumping
measures applied to the imported Toluene Diisocyanate (TDI80/20) originating from Japan and South Korea.

The investigated product in the Interim Review, namely Toluene Diisocyanate (TDI80/20), is consistent with that in the anti-dumping
investigation. The investigated product is listed under No. 29291010 in Import and Export Tariffs of General Administration of Customs
of PRC, with Type TDI65/35 and Type TDI100/0 excluded.

In accordance with Article 50 of Anti-dumping Regulations of People’s Republic of China, Interim Review Temporary Regulations on
Dumping and Dumping Margin issued by Ministry of Commerce, and decision made by Customs Tariffs Committee of the State Council, the
arbitration of the Interim Review is as follows:

The anti-dumping duty rate applied to the imported Toluene Diisocyanate (TDI80/20) originating from Japan and South Korea shall be
adjusted as follows:

Companies in Janpan:

MITSUI TAKEDA CHEMICALS,INC : 12.45%

All others : 60.02% Companies in South Korea:

DC Chemical Co.,Ltd. : 4.05%

Korea Fine Chemical Co., Ltd. : 5.08%

BASF Company Ltd. : 15.78%

All others : 61.14%

Importers shall, while importing Toluene Diisocyanate (TDI80/20) originating from Japan and South Korea as of January 10, 2006, pay
relevant anti-dumping duties to General Administration of Customs of PRC. Anti-dumping Duty= Customs Tax Payment Price * Anti-dumping
Duty Rate.

The relevant interested parties, disagreed with the final arbitration or the imposition of the anti-dumping duties, could apply for
an administrative reconsideration or lawsuit in accordance with Article 53 of Anti-dumping Regulations of People’s Republic of China.

This announcement shall be carry out as of January 10, 2006 by General Administration of Customs of PRC

Appendix: Ministry of Commerce of the People’s Republic of China Interim Review Determination on Imported Toluene Diisocyanate (TDI80/20)
Originated from Japan and South Korea (omitted)

Ministry of Commerce

January 10, 2006

Ministry of Commerce
2006-01-10

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:

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

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

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

Occupational hazards and prevention measures thereof;

Advanced work safety management experiences in home and abroad;

Analysis on typical accidents and emergency succor cases; and

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

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.

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.

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: :

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:

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.

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.

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.

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.

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

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German Laws

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

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

REGULATION ON THE ADMINISTRATION OF FUTURES TRADING

CIRCULAR OF THE NATIONAL DEVELOPMENT AND REFORM COMMISSION ON COOPERATING WITH FINANCE ADMINISTRATIVE DEPARTMENTS TO DO WELL IN THE IMPLEMENTATION OF PREFERENTIAL TAX POLICIES FOR STARTUP INVESTMENT ENTERPRISES

SUPPLEMENTARY PROVISIONS ON THE MEASURES FOR THE ADMINISTRATION OF FOREIGN-INVESTED DISTRIBUTION ENTERPRISES OF BOOKS, NEWSPAPERS, AND PERIODICALS

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING INTENSIFYING THE ADMINISTRATION OF THE TRIAL IMPLEMENTATION OF TAX EXEMPTION, OFFSET AND REFUND FOR THE EXPORT OF PURCHASED PRODUCTS BY SPECIFIED PRODUCING ENTERPRISES

MEASURES FOR THE ADMINISTRATION OF FINANCIAL INSTITUTIONS’ REPORT OF TRANSACTIONS SUSPICIOUS OF FINANCING FOR TERRORIST PURPOSES

ANNOUNCEMENT NO. 125, 2005 OF MINISTRY OF COMMERCE

ANNOUNCEMENT NO.115, 2005 OF THE MINISTRY OF COMMERCE OF THE PEOPLE’S REPUBLIC OF CHINA, RELEASING THE INTERIM REVIEW DETERMINATION ON IMPORTED TOLUENE DIISOCYANATE (TDI80/20) ORIGINATED FROM JAPAN AND SOUTH KOREA

PROVISIONS ON SAFETY TRAINING FOR PRODUCTION AND OPERATION ENTITIES

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

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

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7