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CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGES ON THE MANAGEMENT OF COLLECTION AND SALES OF NON-TRADE FOREIGN EXCHANGES OF TRANSNATIONAL COMPANIES (TRIAL IMPLEMENTATION)

20040801

The State Administration of Foreign Exchanges

Circular of the State Administration of Foreign Exchanges on the Management of Collection and Sales of Non-trade Foreign Exchanges
of Transnational Companies (Trial Implementation)

HuiFa [2003] No.87

July 30, 2003

Bureaus and departments of state administration of foreign exchanges of the provinces, autonomous regions and municipalities directly
under the Central Government, branches of the Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, as well as designated banks of foreign
exchanges:

In order to perfect the management of the collection and sales of non-trade foreign exchanges, improve the operation environment of
enterprises and promote the development of foreign-related economy, the SAFE has through broad survey and thorough investigation
formulated the policies for the management of collection and payment of foreign exchanges for the transnational companies and their
domestic affiliated companies relating to overseas payment of the non-trade expenses that have been paid by overseas headquarters
or overseas affiliated companies in advance or duly distributed, and decided to try for adoption in Beijing, Shanghai and Shenzhen.
The SAFE will timely summarize the experiences and clarify the relevant policies around the country. Here is to notify you of the
following issues concerned:

I.

The transnational companies herein refer to the foreign-invested transnational companies that have established foreign-invested enterprises
of investment in the territory of China with approval by the foreign economic and trade administration, and the Chinese-invested
group companies eligible for foreign-related operations with approval by the relevant competent administration.

II.

The domestic affiliated companies of transnational companies herein include: branches set up by foreign-invested transnational companies
and the foreign-invested enterprises with share participation and share holding by foreign-invested transnational companies; branches
and foreign-invested enterprises with share participation and share holding set up by their overseas headquarters or overseas affiliated
companies in China that are entrusted for their management; and branches and enterprises with share participation and share holding
set up in China by Chinese-invested group companies, which are enpost_titled to foreign-related operations.

III.

The overseas affiliated companies of transnational companies herein include: branches and the foreign-invested enterprises with share
participation and share holding set up by the overseas headquarters of the foreign-invested transnational companies in nations and
regions (including Hong Kong, Macao and Taiwan) other than China; branches and foreign-invested enterprises with share participation
and share holding set up by in the nations and regions other than China by Chinese-invested group companies.

IV.

In case transnational companies and their domestic affiliated companies pay overseas the salaries, benefits and allowance for foreign
and Hong Kong and Macao employees or employees of Chinese nationality but owing permanent overseas residential rights (hereinafter
referred to as foreign employees) that have been paid by overseas headquarters or overseas affiliated companies, or remit overseas
the salaries, benefits and allowance for foreign employees, the overseas payment notices, ID certification of foreign employees such
as passports, and employment certification such as labor contracts, and tax certification and other evidential materials may be held
for payment from the foreign exchange accounts or purchase of foreign exchanges with Renminbi at the designated banks of foreign
exchanges.

V.

In case transnational companies and their domestic affiliated companies pay overseas the insurance premiums of social, medical and
pension insurance for foreign employees that have been paid by overseas headquarters or overseas affiliated companies in advance,
or remit such premiums directly, the overseas payment notices, ID certification of foreign employees such as passports, and employment
certification such as labor contracts, and tax certification and other evidential materials may be held for payment from the foreign
exchange accounts or purchase of foreign exchanges with Renminbi at the designated banks of foreign exchanges.

VI.

In case the transnational companies and their domestic affiliated companies pay overseas the overseas travel expenses and overseas
training fees for foreign employees that have been paid by overseas headquarters or overseas affiliated companies in advance, or
remit such premiums directly, the overseas payment notices, ID certification of foreign employees such as passports, and employment
certification such as labor contracts, and tax certification and other evidential materials may be held for payment from the foreign
exchange accounts or purchase of foreign exchanges with Renminbi at the designated banks of foreign exchanges.

VII.

In case the transnational companies and their domestic affiliated companies pay overseas the distributed overseas patent use fees,
franchising fees, fees for technological introduction, the agreement on expense distribution, overseas payment notices, valid registration
certification and taxation certification and the relevant materials verified and issued by the intellectual property administration
or the foreign economic and trade administration may be held for payment from the foreign exchange accounts or purchase of foreign
exchanges with Renminbi at the designated banks of foreign exchanges.

VIII.

In case the transnational companies and their domestic affiliated companies pay overseas the distributed overhead, the agreement on
expense distribution, overseas payment notices and taxation certification and the relevant materials may be held for payment from
the foreign exchange accounts or purchase of foreign exchanges with Renminbi at the designated banks of foreign exchanges.

IX.

In case the transnational companies and their domestic affiliated companies pay overseas other overseas expenses that have been distributed
or paid by overseas headquarters or overseas affiliated companies in advance, the overseas payment notices, the original documents
of the relevant expenses and other relevant evidential materials, as well as tax certification if required for payment of tax, may
be held for payment from the foreign exchange accounts or purchase of foreign exchanges with Renminbi at the designated banks of
foreign exchanges.

X.

Transnational companies and their affiliated companies may download the relevant contracts, agreements and payment notices via Internet,
and cover with the corporate stamps, which may be used for handling with the formalities for purchase and payment of non-trade foreign
exchanges.

XI.

Single foreign-invested enterprises or Chinese-invested enterprises that have observed the provisions on foreign exchange management
for the recent three years without any material acts in violation of foreign exchange management, with good financial position, with
big volume of foreign exchange payment under current accounts, and with important local influences may also handle with the sales
and payment of non-trade foreign exchanges according to the provisions of the Circular with approval by the local competent foreign
exchange administration.

XII.

Beijing Department of Foreign Exchanges, and Shanghai and Shenzhen bureaus shall distribute the list of the eligible transnational
companies and local domestic affiliated companies, as well as the verified single foreign-invested enterprises or Chinese-invested
enterprises to the designated banks of foreign exchanges under their jurisdiction.

XIII.

The Circular shall come into force as of the date of its promulgation.

Upon receipt of the Circular, Beijing Department of Foreign Exchanges, and Shanghai and Shenzhen bureaus are requested to distribute
the Circular to the designated banks of foreign exchanges and the relevant units under their jurisdiction as soon as possible, and
the designated banks of foreign exchanges shall upon receipt distribute the Circular to their subordinate branches in Beijing, Shanghai
and Shenzhen. In case of any problems encountered during enforcement, please feedback in timely to the Management Department of Current
Accounts under the SAFE.

Contact with: Ma Chao

Tel: 010-68402114

Fax: 010-68402272



 
The State Administration of Foreign Exchanges
2003-07-30

 






CIRCULAR ON THE MANAGEMENT AND OPERATION OF FOREIGN EXCHANGE OF QFII OF COMPREHENSIVE DEPARTMENT OF STATE ADMINISTRATION OF FOREIGN EXCHANGE

State Administration of Foreign Exchange

Circular on the Management and Operation of Foreign Exchange of QFII of Comprehensive Department of State Administration of Foreign
Exchange

Zong Hui Fa [2003] No.124

September 9, 2003

Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications,
China Merchants Bank, Shanghai Branch of National City Bank of New York, Shanghai Branch of the HSBC and Shanghai Banking Corporation
Limited, and Shanghai Branch of Standard Chartered Bank:

On November 28, 2002, the Interim Provisions on the Administration of Foreign Exchange in Domestic Securities Investments of Qualified
Foreign Institutional Investors was issued and put into effect by the State Administration of Foreign Exchange (hereinafter refer
to as the SAFE). And since then, the SAFE has received a lot of inquiries from some institutional investors who are concerned about
the administration of foreign exchange of the domestic securities investment by qualified foreign institutional investors (hereinafter
refer to as the QFII). We hereby give the following notice concerning the relevant issues for the convenience of the implementation
of the above provisions:

I.

The domestic trustee of the QFII (hereinafter refer to as the trustee) may open a special RMB account for each QFII based on the following
documents:

1.

The photocopy of the official reply of the SAFE on approving the amount of investment by the QFII;

2.

The official reply of the SAFE on approving the QFII to open the special RMB account;

3.

Other documents as required by the trustee.

II.

The trustee is not allowed to open a sub-account of the special RMB account for the QFII; But on the request of the QFII, the trustee
may establish a detailed ledger for the capital collection and payment of his special RMB account, which can be used to record the
specifics of the use of the money.

No other accounts except the special RMB account may be opened in the bank of the trustee for a QFII to carrying out its businesses.

III.

The deposit interest rates of the special RMB account shall comply with the standard of current deposit interest rates of unit announced
by the People’s Bank of China.

IV.

Each kind of expenses of the QFII occurring when the investment businesses are carried out in China, such as the trust fees, administrative
cost, auditing fees, and so on, shall be paid from the special RMB account; and the expenses of the QFII that occur outside China
are not permitted to be paid from the special RMB account.

V.

If the amount of investment of the QFII is between 50-100 million dollars (including 100 million dollars), the initial principals
to be paid shall be no less than 20%(including 20%) of the amount of investment; If the amount of investment is between 100-200 million
(including 200 million dollars), the initial principals to be paid shall be no less than 15% (including 15%) of the amount of investment;
If the amount of investment is between 200-400million dollars (including 400 million), the initial principals to be paid shall be
no less than 10% (including 10%) of the amount of investment; And if the amount of investment is between 400-800 million dollars
(including 800 million dollars), the initial principals to be paid shall be no less than 5% (including 5%) of the amount of investment.

VI.

In the case that the principals paid by the QFII are not more than 50 million dollars, after the settlement of the exchange, the inward
remittance of the principals (in the form of deposits) may only be left in the trustee’s care, and no securities investments are
permitted. If within the period of validity, the amount of investment paid by the QFII fails to reach 50 million dollars, the inward
remittance of principals shall be remitted by installment after the expiration of the closing period as prescribed in the Interim
Provisions on the Administration of Foreign Exchange in Domestic Securities Investments of Qualified Foreign Institutional Investors.

VII.

The QFII may remit the profits on a yearly basis, and the profits permitted to remit by the QFII are those that have been realized
and cumulated year by year.

VIII.

In the case that a QFII transfers its amount of investment, inward remittance of principals from abroad by the transferee may not
exceed the authorized amount of investment, and the payment of the relevant capitals must be done within China. After the transferred
capitals were received by the transferor, the capitals of the transferor shall be remitted outside China within 5 working days in
virtue of the documents of approval for the transfer issued by the State Administration of Foreign Exchange.

IX.

On each application a foreign fund management company may choose only one of the two types of funds, i.e. the close funds and the
open funds. In case that a foreign fund management company has applied in the type of close funds (open funds), which has been approved,
and if the company applies for the amount of investment in the type of open funds (close funds) for the second time, it shall be
regarded as a separate application, rather than an increase of the amount of investment. The fund management company is required
to apply for a second QFII foreign exchange registration certificate and a second special RMB account. It is required that the two
kinds of funds be accounted independently and be managed through separate accounts.

X.

In case that a QFII changes a trustee, the former trustee shall, while transferring all the relevant records to the new trustee, keep
one photocopy of all the relevant records on file for future reference, the term for keeping the records shall be 15 years.

XI.

The trustee shall submit the relevant QFII report forms to the State Administration of Foreign Exchange in time as prescribed. The
format of the QFII report forms to be submitted to the State Administration of Foreign Exchange (see Attachment) can be found on
the website of the State Administration of Foreign Exchange (www. safe.gov. cn).

The trustee shall send the QFII report forms through fax and email respectively to the SAFE.

Fax: (010) 68402349

Email Address: security@mail.safe.gov.cn

XII.

The QFII report forms submitted to SAFE by a trustee shall be prepared according to such accounting rules as the accrual basis.

XIII.

Any problems that the trustee may come upon during the handling of the QFII trusteeship business should be fed back to the Capital
Items Administration Department of the SAFE in time.For details,

Please contact: Zhou Yongkun

Tel: (010) 68402347

Annex:

1. Monthly Report Forms of the Qualified Foreign Institutional Investors on Domestic Securities Investments (I), (II) (Omitted)

2. Annual Financial Statements of the Qualified Foreign Institutional Investors on Domestic Securities Investments (I), (II) (Omitted)

3. List of the QFII Capital Remitted Inward and Outward (Omitted)



 
State Administration of Foreign Exchange
2003-09-09

 






MEASURES FOR MEDICAL WASTES MANAGEMENT OF MEDICAL AND HEALTH INSTITUTIONS

Ministry of Public Health

Order of the Ministry of Public Health of the People’s Republic of China

No.36

The Measures for Medical Wastes Management of Medical and Health Institutions, deliberated and adopted at the ministerial meeting
of the Ministry of Public Health on August 14, 2003, are hereby promulgated and shall be implemented as of the day of promulgation.

Wu Yi, the Minister of the Ministry of Public Health

October 15, 2003

Measures for Medical Wastes Management of Medical and Health Institutions

Chapter 1 General Provisions

Article 1

With a view to regulating the medical wastes management of medical and health institutions and to effectively preventing and controlling
medical wastes from endangering human health and the environment, the present Measures are hereby formulated in accordance with the
Regulation on Medical Wastes Management.

Article 2

The medical and health institutions at various levels and of various kinds shall manage medical wastes pursuant to the provisions
of the Regulation on Medical Wastes Management.

Article 3

The medical wastes management of medical and health institutions of the whole country shall be supervised by the Ministry of Public
Health.

The medical wastes management of medical and health institutions shall be supervised by the administrative departments of public health
of the local people’s governments at the county level and above within their respective jurisdictions.

Chapter 2 Medical Waste Management Duties of Medical and Health Institutions

Article 4

The medical and health institution shall establish and perfect the responsibility system of medical wastes management, with its legal
representative or major principal being the primary responsible person, seriously perform its duties and ensure the safe management
of medical wastes.

Article 5

The medical and health institution shall, pursuant to the relevant laws, administrative regulations, departmental rules and normative
documents, formulate and implement rules and systems for the management of medical wastes, the work flow and requirements, the duties
of the relevant personnel, and the emergent scheme for flowing, leakage, spreading and accidents of medical wastes within the institution.
The contents shall include:

1)

Methods of classified collection of medical wastes and the work requirements of the places generating medical wastes within the medical
and health institution;

2)

Work rules of the places generating medical wastes and the places of temporary storage of medical wastes within the medical and health
institution, and the work requirements for carrying the wastes from the generating places to the temporary storage places;

3)

Provisions on the relevant handover and registration in the carriage of medical wastes within the medical and health institution and
in delivering wastes to the disposal entities.

4)

Special operational procedures in the management of medical wastes and emergent measures for the flowing, leakage, expansion and accidents
of medical wastes;

5)

Occupational health safety protection of the relevant working staffs engaged in the classified collection, carriage, and temporary
storage of medical wastes.

Article 6

The medical and health institution shall establish a monitoring body or allocate full-time (part-time) personnel to be responsible
for medical wastes management and perform the following duties:

1)

Directing and inspecting the implementation of the work in the process of classified collection, carriage, temporary storage, and
internal disposal of medical wastes;

2)

Directing and inspecting the occupational health safety protection work in the process of classified collection, carriage, temporary
storage, and internal disposal of medical wastes;

3)

Organizing emergent treatment in the event of flowing leakage, spreading and accidents of medical wastes;

4)

Organizing the training relating to medical wastes management;

5)

Managing the relevant registration and archives of medical wastes;

6)

Analyzing and dealing with other problems arising in the management of medical wastes in good time.

Article 7

The medical and health institution shall, in the event of flowing, leakage, and spreading of medical wastes, report to the administrative
departments of public health and of environmental protection of the people’s government at the county level of the place where it
is located within 48 hours, and after the investigation and handling, the medical and health institution shall report the investigation
and handling results to the said departments.

The administrative department of public health of the people’s government at the county level shall pass on such report level by level
to the administrative department of public health of the local people’s government at the provincial level each month.

The administrative department of public health of the people’s government at the provincial level shall gather those reports and submit
them to the Ministry of Public Health on the semi-annual basis.

Article 8

When a medical and health institution has caused death to 1 or more persons or health detriment to 3 or more persons as a result of
improper management of medical wastes and needs to provide medical aid and on-the-spot rescue to the injured persons, it shall report
to the administrative departments of public health and of environmental protection of the people’s government at the county level
in its locality within 24 hours, and shall take corresponding emergent measures pursuant to the Regulation on Medical Wastes Management.

The administrative department of public health of the people’s government at the county level shall, after receiving the report, report
level by level to the administrative department of public health of the people’s government at the provincial level within 12 hours.

The administrative department of public health of the people’s government at the provincial level shall, after receiving the report,
report to the Ministry of Public Health within 12 hours.

Where medical wastes have, as found out, caused the spreading of infectious diseases or where there is evidence showing that an accident
of spreading of infectious diseases is likely to happen, the medical and health institution shall make a report pursuant to the Law
on Infectious Diseases Control and other relevant provisions and take corresponding measures.

Article 9

The medical and health institution shall formulate and organize the implementation of the training plans of the relevant personnel
in respect of the professional skills, occupational health safety protection and emerge treatment knowledge, etc., that are needed
in the process of classified collection, carriage, temporary storage, and internal disposal of medical wastes.

Chapter 3 Classified Collections, Carriage and Temporary Storage

Article 10

The medical and health institution shall apply classified management of medical wastes pursuant to the Catalogue of Classifications
of Medical Wastes

Article 11

The medical and health institution shall collect medical wastes on a classified basis and in good time pursuant to the following requirements:

1)

Placing the medical wastes separately in packages or containers that are in conformity with the Provisions on the Standards and Warning
Marks of Special Packages and Containers of Medical Wastes according to the types of the medical wastes;

2)

Before placing the medical wastes, carefully checking the packages or containers of medical wastes to ensure that they are not damaged,
leaky or otherwise defective;

3)

Refraining from mixing the infectious, pathological, damaging, drug, and chemical wastes in the process of collection. Small quantities
of drug wastes may be mixed with infectious wastes, but indications shall be made on the label;

4)

Executing the relevant laws and administrative regulations and the relevant provisions of the state in management of the abandoned
narcotic, psychotropic, radioactive, and poisonous drugs, etc., and the relevant wastes;

5)

Handing over the batch-use waste chemical reagents and waste disinfectors in chemical wastes to the specialized agencies for disposal;

6)

Handing over the batch-use medical utensils, such as thermometers containing mercuric and blood-pressure meters, etc., to the specialized
agencies for disposal;

7)

With respect to the highly dangerous wastes among medical wastes, such as the culture medium, samples and preservation liquid of bacteria
and toxins of virus, etc., sterilizing with high pressure or steam or conducting chemical disinfection at the places of generation
before collecting and disposing of them as infectious wastes;

8)

Strictly disinfecting the infectious rejections generated by segregated infectious patients or suspect infectious patients pursuant
to the provisions of the state, and discharging the rejections into the sewage disposal system only after the discharging standards
prescribed by the state are reached;

9)

Using double-layer packaging for the infectious rejections generated by segregated infectious patients or suspect infectious patients
and promptly sealing the packages;

10)

Refraining from taking out any infectious, pathological, or damaging wastes that have already been put into the packages or containers.

Article 12

Illustrations or written instructions of the classified collection methods of medical wastes shall be displayed at the places generating
medical wastes within a medical and health institution.

Article 13

Where the volume of medical wastes reach three fourths of that of the packages or containers in which they are contained, effective
sealing methods shall be taken to make tight and close the mouth of the package or container.

Article 14

Where the external of the packages or containers are polluted by infectious wastes, the polluted place shall be disinfected or a new
layer of packaging shall be added onto that place.

Article 15

There should be a warning mark on the external of each packaging or container containing medical wastes, and there should be a label
in Chinese attached to each package or container, the contents of which shall include: the entity generating the medical wastes,
date of generation, class of wastes, and necessary special instructions, etc.

Article 16

The carriage personnel shall carry the medical wastes that are packed on a classified basis from the generating places to the designated
internal temporary storage places pursuant to the prescribed time and routes every day.

Article 17

Before carrying the medical wastes, the carriage personnel shall check whether the marks, labels and seals of the packaging or containers
are in conformity to the requirements, and may not carry any medical wastes not in conformity with the requirements to the temporary
storage places.

Article 18

When carrying the medical wastes, the carriage personnel shall avoid any damage to the packages or containers, shall avoid the flowing,
leakage or spreading of medical wastes, and shall prevent direct body contact with the medical wastes.

Article 19

Special conveyances that can prevent leakage and dispersion, that have no sharp edges, and that are easy for loading and cleaning
shall be used for the carriage of medical wastes.

The conveyance shall be cleaned and disinfected in good time every day after the carriage work is finished.

Article 20

The medical and health institution shall set up temporary storage facilities and equipment of medical wastes and may not leave the
medical wastes in the open; the temporary storage of medical wastes may not exceed 2 days.

Article 21

The temporary storage facilities and equipment of medical wastes set up by a medical and health institution shall meet the following
requirements:

1)

Staying afar from medical treatment areas, food processing areas, personnel movement areas, and storage places of house refuse, and
being it convenient for the entry and exit of the personnel and conveyance carrying medical wastes;

2)

Being tightly sealed and being managed by full-time (part-time) personnel to prevent non-working staff from contacting the medical
wastes;

3)

Having safety measures against rats, flies and mosquito, and cockroaches;

4)

Being leakage proof and refraining from rain-washing;

5)

Being easy for cleaning and disinfection;

6)

Avoiding direct sunshine;

7)

Having conspicuous warning marks of medical wastes and warning marks of “no smoke and food”.

Article 22

Low temperature or anti-erosion conditions are required for temporary storage of pathological wastes.

Article 23

The medical and health institution shall hand over the medical wastes to the entity of concentrated disposal of medical wastes approved
by the administrative department of public health of the people’s government at the county level or above, and shall fill in and
keep the handover forms pursuant to the system of handover forms of dangerous wastes.

Article 24

The medical and health institution shall register the medical wastes, and the registered contents shall include the medical wastes’
sources, types, weight or quantities, handover time, final whereabouts, and signatures of the handling persons, etc. The registration
materials shall be kept for at least 3 years.

Article 25

The temporary storage places and facilities shall be cleaned and disinfected, after the medical wastes have been moved out.

Article 26

The medical and health institution and its working staff are prohibited from transferring to others or trading medical wastes.

It is prohibited to dump or pile up medical wastes at any non-collection or non-temporary storage places, and it is prohibited to
mix the medical wastes with other wastes or house refuse.

Article 27

The medical and health institution shall, in the rural areas without the conditions for concentrated disposal of medical wastes, dispose
of the medical wastes it generates by itself within the institution according to the requirements of the local administrative departments
of public health and of environmental protection. Self- disposition of medical wastes shall meet the following basic requirements:

1)

Used one-off medical equipment and the medical wastes liable to injure persons shall be disinfected and their dangerous shapes shall
be changed;

2)

Those medical wastes that can be burned shall be burned in good time;

3)

Those medical wastes that cannot be burned shall be buried after disinfection in a concentrated way.

Article 28

In the event of flowing, leakage, spreading or accident of medical wastes, a medical and health institution shall take emergent measures
in good time pursuant to the requirements as follows:

1)

Determining the types and quantities of the medical wastes flowing, leaking and spreading, and the time of occurrence, scope of impact,
and seriousness;

2)

Organizing the relevant personnel to conduct on-the-spot treatment of the leaking and spreading of the medical wastes as soon as possible
according to the emergent scheme;

3)

When treating the areas polluted by the medical wastes, trying to minimize the affection to the patients, medical personnel, other
personnel on the spot, and to the environment.

4)

Taking appropriate safety disposal measures to disinfect or otherwise make harmless the leaking wastes and the polluted areas and
materials, and blocking the polluted areas if necessary to prevent the spread of pollution;

5)

When disinfecting the areas polluted by infectious wastes, carrying out the disinfection work from the areas most slightly polluted
to those most seriously polluted, and disinfecting any used tools that might have been polluted;

6)

The working staff shall ensure that they have taken sufficient health safety protection measures before carrying out the work.

After the treatment work is finished, the medical and health institution shall investigate into the cause of the event and take effective
prevention measures against the occurrence of similar events.

Chapter 4 Personnel Training and Occupational Safety Protection

Article 29

The medical and health institution shall train its working staff and enhance the knowledge of all the staff members in medical wastes
management. The working staff and managerial personnel engaging in classified collection, carriage, temporary storage, and disposal
of medical wastes shall receive training on the relevant laws, professional skills, and knowledge of safety protection and emergent
treatment, etc.

Article 30

The relevant working staff and managerial personnel of medical wastes shall meet the following requirements:

1)

Understanding the provisions of the relevant laws, regulations, rules and normative documents of the state, acquainting themselves
with the rules and systems, work procedures and requirements of medical wastes management formulated by the medical and health institution;

2)

Mastering the correct methods and operational procedures of the classified collection, carriage, and temporary storage of medical
wastes;

3)

Grasping the safety knowledge, professional skills, and knowledge of occupational health safety protection in classification of medical
wastes;

4)

Grasping the methods to prevent being stabbed or scratched by the medical wastes in the process of the classified collection, carriage,
temporary storage, internal disposal of the medical wastes, and the treatment methods after the occurrence of such events;

5)

Grasping the emergent treatment measures in the event of flowing, leakage, spreading and occurrence of medical waste accidents.

Article 31

The medical and health institution shall, pursuant to the types of and different degrees of risks of the medical wastes contacted,
equip the working staff and managerial personnel engaged in the classified collection, carriage, temporary storage, and disposal
of the medical wastes in the institution with necessary protection materials, make regular health inspections to them, and if necessary,
give immunization injection to the relevant personnel to prevent their health from impairment.

Article 32

When any working staff of a medical and health institution is stabbed or scratched by the medical wastes during work, he/she shall
take corresponding treatment measures and report to the relevant offices in the institution in good time.

Chapter 5 Supervision and Administration

Article 33

The administrative departments of public health of the local people’s governments at the county level and above shall, in accordance
with the provisions of the Regulation on Medical Wastes Management and the present Measures, make regular supervisory inspection
and irregular selective inspection over the medical and health institutions within their respective jurisdictions.

Article 34

The main contents of the supervisory and selective inspections over medical and health institutions are:

1)

The rules and systems concerning medical wastes management and the implementation thereof;

2)

The classified collection, carriage, temporary storage, and internal disposal of medical wastes;

3)

Registration materials and records related to medical wastes management;

4)

Safety protection of the relevant personnel in medical wastes management;

5)

Report, investigation and handling of the events of flowing, leakage, spreading and accidents of medical wastes;

6)

On-spot hygiene monitoring.

Article 35

The administrative departments of public health shall, if finding any hidden risks in the medical and health institutions through
supervisory or selective inspections, order the institutions to eliminate such risks immediately.

Article 36

The administrative departments of public health at the county level and above shall investigate into and punish the acts of the medical
and health institutions that violate the Regulation on Medical Wastes Management and the present Measures.

Article 37

When improper management of medical wastes causes the spread of infectious diseases, or there is evidence proving the possibility
of such spread, the administrative departments of public health shall take corresponding measures in good time in accordance with
Article 40 of the Regulation on Medical Wastes Management.

Article 38

The medical and health institutions shall cooperate with the administrative departments of public health in the inspection, monitoring,
investigation, and obtaining of evidence, and may not refuse or hinder such process, or provide falsified materials.

Chapter 6 Rules of Punishment

Article 39

If a medical and health institution, violating the Regulation on Medical Wastes Management and the present Measures, is in any of
the situations as follows, the administrative department of public health of the local people’s government at the county level or
above shall order it to correct within a prescribed time limit and give it a warning; if the institution fails to correct within
the aforesaid time limit, it shall be imposed on a fine ranging from 2,000 Yuan to 5,000 Yuan:

1)

Failing to establish or perfect the system of medical wastes management, or failing to set up the monitoring body or to allocate full-time
(part-time) personnel;

2)

Failing to give the relevant personnel training on the relevant laws, professional skills, safety protection and emergent treatment
knowledge, etc;

3)

Failing to register the medical wastes or to keep the registered materials;

4)

Failing to take occupational health safety protection measures for the working staff and managerial personnel engaged in the classified
collection, carriage, temporary storage, and disposal of medical wastes within the institution;

5)

Failing to clean and disinfect in good time the used conveyance of medical wastes;

6)

In the case of a medical and health institution which has set up disposal facilities of medical wastes, failing to test and evaluate
the hygiene effects of such facilities regularly, or failing to put on record or report the testing and evaluation effects.

Article 40

If a medical and health institution, violating the Regulation on Medical Wastes Management and the present Measures, is in any of
the situations as follows, the administrative department of public health of the local people’s government at the county level or
above shall order it to correct within a prescribed time limit, give it a warning, and may impose on it a fine of less than 5,000
Yuan concurrently; if the institution fails to correct within the said time limit, it shall be imposed on a fine ranging from 5,000
Yuan to 30,000 Yuan:

1)

The places, facilities or equipment of temporary storage of medical wastes are not in conformity with hygienic requirements;

2)

The medical wastes are not placed in special packages or containers according to their types;

3)

The conveyance of medical wastes is not in conformity with the requirements.

Article 41

If a medical and health institution, violating the Regulation on Medical Wastes Management and the present Measures, is in any of
the situations as follows, the administrative department of public health of the local people’s government at the county level or
above shall order it to correct within a prescribed time limit, give it a warning, and impose on it a fine ranging from 5,000 Yuan
to 10,000 Yuan; if the institution fails to correct within the aforesaid time limit, it shall be imposed on a fine ranging from 10,000
Yuan to 30,000 Yuan; if spreading of infectious diseases is caused, the original license issuing department shall suspend or revoke
the practice license of the medical and health institution; and if any crime has been constituted, the offenders shall be subject
to criminal liabilities:

1)

Casting medical wastes within the medical and health institution and dumping and piling up medical wastes at any non-storage places,
or mixing the medical wastes with other wastes and house refuse;

2)

Giving the medical wastes to any entities or individuals that have not obtained the operation license;

3)

Failing to make strict disinfection of the sewage and the rejections of infectious patients or suspect infectious patients in accordance
with the Regulation and the present Measures, or discharging them into the sewage disposal system where the discharging standards
prescribed by the state are not reached;

4)

Failing to manage and dispose of as medical wastes the house refuse of the accepted infectious patients and suspect infectious patients.

Article 42

The medical and health institution that transfer to others or trade medical wastes shall be punished pursuant to Article 53 of the
Regulation on Medical Wastes Management.

Article 43

If a medical and health institution, in the event of flowing, leakage or spreading of medical wastes, fails to take emergent measures
or fails to report to the administrative department of public health in good time, the administrative department of public health
of the local people’s governments at the county level or above shall order it to correct, give it a warning, and impose on it a fine
ranging from 10,000 Yuan to 30,000 Yuan concurrently; if spreading of infectious diseases is caused, the original license issuing
department shall suspend or revoke the practice license of the medical and health institution; and if any crime has been constituted,
the offenders shall be subject to criminal liabilities.

Article 44

Where a medical and health institution, without justified reasons, hinders any of the law enforcement personnel of the administrative
department of public health in their execution of duties, refuses them to enter the scene, or refuses to cooperate with the law enforcement
department in inspection, monitoring, investigation and obtaining of evidence, the administrative department of public health of
the local people’s government at the county level or above shall order it to correct and give it a warning; if it refuses to correct,
the original license issuing department shall suspend or revoke the practice license of the medical and health institution; if the
Public Security Administration Regulation of the People’s Republic of China is violated and an act violating pubic security administration
is committed, the public security organ shall punish the medical and health institution; and if any crime has been constituted, the
offenders shall be subject to criminal liabilities.

Article 45

In the rural areas without the conditions for concentrated disposal of medical wastes, if a medical and health institution fails to
dispose of the medical wastes pursuant to the Regulation on Medical Wastes Management and the present Measures, the administrative
department of public health of the local people’s government at the county level or above shall order it to correct within a prescribed
time limit and give it a warning; if it fails to correct within the said time limit, it shall be imposed on a fine ranging from 1,000
Yuan to 5,000 Yuan; if spreading of infectious disease is caused, the original license issuing department shall suspend or revoke
the practice license of the medical and health institution; and if any crime has been constituted, the offenders shall be subject
to criminal liabilities.

Article 46

If a medical and health institution, violating the Regulation on Medical Wastes Management and the present Measures, causes the spread
of any infectious disease and causes damages to others, it shall be liable for civil damages.

Chapter 7 Supplementary Provisions

Article 47

The phrase “medical and health institutions” as mentioned in the present Measures refers to the institutions that have obtained the
Practice License of Medical Institutions pursuant in according to the Regulation on the Administration of Medical Institutions, as
well as the disease prevention and control institutions and blood collection and supply institutions.

Article 48

The present Measures shall be implemented as of the date of promulgation.



 
Ministry of Public Health
2003-10-15

 






CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON SOME ISSUES CONCERNING TAX REFUND OR EXEMPTION ON EXPORT GOODS

State Administration of Taxation

Circular of the State Administration of Taxation on Some Issues concerning Tax Refund or Exemption on Export Goods

GuoShuiFa [2003] No. 139

November 18, 2003

The administrations of state taxation of all provinces, autonomous regions, municipalities directly under the Central Government,
cities directly under state planning, and all entities under the State Administration of Taxation:

With a view to solving the issues feedback from the regions concerning the enforcement of export tax refund policies, upon deliberation,
we hereby make the following notice:

I.

The following formula shall be applicable for calculating and deducting the output tax payable on the taxable goods regarded as sold
in domestic market according to the Measures for Tax Exemption, Deduction or Refund:

Output tax payable = Offshore price of export goods regarded as taxable goods sold in domestic market ￿￿oreign exchange quotation
of Renminbi ￿￿VAT rate Where the export enterprises have made calculation on the amount of taxes prohibited from exemption or deduction
in the tax exemption, deduction or refund as prescribed on the aforesaid taxable goods, which are regarded as goods sold in domestic
market and have been changed into cost, they shall be changed from the cost item into the income item of amount of tax.

The taxable goods regarded as goods sold in domestic market shall include: Goods for which the relevant certificates of tax refund
or exemption on their export haven’t been fully collected by the production enterprises within 6 months from the date of applying
to customs for export or for which the formalities of tax exemption, deduction, or refund haven’t been handled at the tax authorities
in charge as prescribed in the “Circular of the Ministry of Finance and the State Administration of Taxation on Further Advancing
the Implementation of Measures for Tax Exemption, Deduction and Refund on Export Goods” (CaiShui [2002] No. 7); and the export goods
enjoying the tax exemption, deduction, or refund and with no electronic data (excluding the paper-made customs declaration) declared
by the production enterprises, or the export goods with electronic data but haven’t been declared at the current month by the enterprises
as prescribed in the “Circular of the State Administration of Taxation on Examination and Verification of the Export Volume of the
Production Enterprises Enjoying Tax Exemption, Deduction or Refund by Using the Export Data in the “Port Electronic Law Enforcement
System” (GuoShuiHan [2003] No. 95). The export volumes, for which taxes unpaid shall be paid in the following month as prescribed
in Document GuoShuiHan [2003] No. 95, shall not include the export volume of the business of commission, agency factor, or consignment.

The taxable goods regarded as goods sold in domestic market shall include: Goods for which the relevant certificates of tax refund
or exemption on their export haven’t been fully collected by the production enterprises within 6 months from the date of applying
to customs for export or for which the formalities of tax exemption, deduction, or refund haven’t been handled at the tax authorities
in charge as prescribed in the “Circular of the Ministry of Finance and the State Administration of Taxation on Further Advancing
the Implementation of Measures for Tax Exemption, Deduction and Refund on Export Goods” (CaiShui [2002] No. 7); and the export goods
enjoying the tax exemption, deduction, or refund and with no electronic data (excluding the paper-made customs declaration) declared
by the production enterprises, or the export goods with electronic data but haven’t been declared at the current month by the enterprises
as prescribed in the “Circular of the State Administration of Taxation on Examination and Verification of the Export Volume of the
Production Enterprises Enjoying Tax Exemption, Deduction or Refund by Using the Export Data in the “Port Electronic Law Enforcement
System” (GuoShuiHan [2003] No. 95). The export volumes, for which taxes unpaid shall be paid in the following month as prescribed
in Document GuoShuiHan [2003] No. 95, shall not include the export volume of the business of commission, agency factor, or consignment.

The amount of taxes prohibited from exemption or deduction in the tax exemption, deduction or refund, shall be calculated according
to the formula as prescribed in Document CaiShui [2002] No.7

III.

Where a production-oriented enterprise group corporation (or parent plant) exports goods for its member enterprises (or branches)
as an agent, the enterprise group (or parent plant) may file an application to the competent taxation authorities for issuance of
the “Certificate of Export as an Agent”, and the member enterprises (or branches) shall implement the methods of tax “Exemption,
Deduction, or Refund”.

IV.

Where a foreign contracting engineering company, who has the management right for foreign economic cooperation upon approval by the
relevant departments, and who is not an ordinary VAT taxpayer, purchases export goods in relation to a foreign contracting project,
the production enterprises supplying goods for it may file an application to the tax authorities for issuance of Tax Payment Notice
(used specially for export goods) upon the strength of the certificates (copies) such as the certificate of approval for the management
right of foreign economic cooperation, etc., as provided by the foreign contracting engineering company. The foreign contracting
engineering company may then, upon the strength of the Tax Payment Notice (used specially for export goods), common invoices or special
VAT invoices, and other prescribed certificates, apply for handling tax refund on export goods in relation to the foreign contracting
project to the competent tax authorities.

V.

Where a production enterprise within the bonded zones purchases raw materials, components and parts, etc. from the enterprises outside
the bonded areas, who have the management right of import and export, and exports them after having processed them into products,
it shall file an application to the competent taxation authorities for handling tax exemption, deduction or refund upon the strength
of the file bill on exit issued by the customs in the bonded zones and other prescribed certificates.

Where an enterprise engaging in the processing of the imported materials in the bonded zones imports raw materials and components
and parts from abroad, it may, upon the strength of the “Bill for Filing the Imported Goods in the Customs Bonded Zones”, go through
the formalities for obtaining the “Certificates of Tax Exemption on Trade of Processing Imported Materials by Production Enterprises”,
etc.

VI.

Tax refund or exemption on goods exported through storehouse, which is supervised by the customs, shall be handled according to the
existing provisions upon the strength of the customs declaration for export goods (used specially for export tax refund) signed and
issued by the customs or other prescribed certificates.

VII.

As to the provisions of Article 3 of the Document CaiShui [2002] No. 7, that is, “the purchase of raw materials enjoying tax exemption
shall include the purchase of raw materials enjoying tax exemption from within the country and the import of materials and components
and parts enjoying tax exemption for processing the imported material”, the purchase of raw materials enjoying tax exemption from
within the country refers to the goods enjoying tax exemption, whose names are listed in the “Interim Regulations of the People’s
Republic of China on Value-added Taxes” and the “Detailed Rules for the Implementation of the Interim Regulations of the People’s
Republic of China on Value-added Taxes”, and other relevant provisions, and for which the input tax payable cannot be calculated
and deducted as prescribed.

VIII.

Where an enterprise is doing a new export business other than those prescribed in paragraph 2, and paragraph 3 of the present Article,
the method of refunding taxes on monthly basis shall not be applicable to the amount of tax refundable occurred within 12 months
from the date of occurrence of the first of the export business. That amount of tax refundable shall be carried forward to the next
term to offset for goods sold in domestic market. After the 12 months, the provisions of Article 9 of the present Circular on small
export enterprises shall be applied, if it is a small export enterprise. Where the enterprises do not fall within the scope of small
export enterprises, the tax exemption, deduction or refund thereof shall be handled uniformly by way of calculation on monthly basis.

In case an enterprise has registered and opened business for over one year (excluding small export enterprises) and does have the
production capability and has no illegal acts such as tax evasion, smuggling, or evading or illegally trading in foreign exchange
upon verification by local or municipal tax authorities, the tax exemption, deduction or refund of its newly occurred business may
be calculated on monthly basis uniformly.

Where a newly established enterprise whose total sales volume of internal distribution is 5 million Yuan or more, and whose overseas
sales volume accounts for 50% or more of its total sales volume, and it will face difficulty in case its tax refund is not to be
handled within 12 months from the date of establishment, the tax exemption, deduction or refund thereof shall be handled by way of
calculation on monthly basis uniformly on the basis of tight control upon the approval of the administrations of state taxation of
provinces, autonomous regions, and municipalities directly under the Central Government.

IX.

The amount of tax refundable of a small export enterprise, which is occurred in the middle of the year, and on which the term for
examination and verification of the tax refund is 12 months under Article 8 of Document CaiShui [2002] No. 7, shall not be handled
by way of refunding taxes on monthly basis, but shall be handled by way of carrying it forward to the next term to offset for goods
sold in domestic markets. For the part failing to be offset, the tax refund shall be handled once for all at the end of the year.
The standard for determining the small export enterprises shall be made uniformly by the administrations of state taxation of all
provinces (autonomous regions, and municipalities directly under the Central Government) according to the reality of the whole provinces
(autonomous regions, and municipalities directly under the Central Government), and within the range of 2 million Yuan or more up
to 5 million Yuan of the total sales volume of the enterprise in domestic markets and overseas markets in the previous taxpaying
year.

X.

The VAT shall be exempted for the export goods of the production enterprises taxed by simple method. And other goods exported shall
apply the Methods of Tax Exemption, Deduction and Refund.

XI.

A small-scale taxpayer, who entrusts other processing enterprises to undertake the business of processing with materials provided,
may file an application to the tax authorities for issuance of “Certificate of Tax Exemption on Processing with Materials Provided”
according to the relevant provisions in existence. And the processing enterprises may go through the formalities for tax refund on
processing fees upon the strength of the “Certificate of Tax Exemption on Processing with Materials Provided”.

XII.

Where an enterprise with foreign investment who is not a VAT taxpayer, or who is a small scale taxpayer, or who is established in
the bonded zones, purchases home-made equipment, which is in conformity with the relevant provisions under the “Circular of the State
Administration of Taxation concerning Printing and Distributing the ‘Trial Measures for the Administration of Tax Refund on Home-Made
Equipment Purchased by Enterprises with Foreign Investment'” (No. GuoShuiFa [1999] No. 171), its tax refund may be handled in accordance
with the relevant provisions.

XIII.

Where an enterprise with foreign investment entrusts other enterprises to undertake the construction of a project by way of contracting
for labor and materials, it may sign an agreement with the enterprise engaging in the construction and entrusts it to purchase the
kinds of home-made equipment in conformity with the relevant provisions of Document GuoShuiFa [1999] No. 171. The enterprise engaging
in the construction shall then, upon the strength of the entrustment agreement for purchase of the home-made equipment and the “Handbook
for Registration of Home-Made Equipment Purchased by Enterprises with Foreign Investment”, purchase the home-made equipment, and
obtain the special VAT invoices and the Tax Payment Notice (used specially for export goods) for value-added taxes, and hand them
over to the enterprise with foreign investment to handle tax refund pursuant to relevant provisions.

XIV.

The present Circular shall enter into force as of January 1, 2003.



 
State Administration of Taxation
2003-11-18

 






SUPPLEMENTARY PROVISIONS ON THE INTERIM MEASURES FOR THE ESTABLISHMENT OF SINO-FOREIGN JOINT VENTURE FOREIGN TRADE COMPANIES

e03032

Ministry of Commerce

Decree of the Ministry of Commerce of the People’s Republic of China

No. 10

With a view to promoting Hong Kong and Macao to establish a closer economic and trade relationship with the Mainland, the Supplementary
Provisions on the Interim Measures for the Establishment of Sino-foreign Joint Venture Foreign Trade Companies, which were adopted
at the 8th executive meeting of the Ministry of Commerce on December 7th, 2003, are hereby promulgated, and shall be implemented
as of January 1st, 2004.

Lv Fuyuan, Minister of the Ministry of Commerce

December 7th, 2003

Supplementary Provisions on the Interim Measures for the Establishment of Sino-foreign Joint Venture Foreign Trade Companies

With a view to promoting Hong Kong and Macao to establish a closer economic and trade relationship with the Mainland, encouraging
service providers from Hong Kong and Macao to establish within the Mainland enterprises engaging in foreign trade business, we have
hereby made the following special provisions on the Interim Measures for the Establishment of Sino-Foreign Joint Venture Foreign
Trade Companies (WaiJingMaoBu [2003] Order No. 1) in accordance with the Mainland and Hong Kong Closer Economic Partnership Arrangement
and the Mainland and Macao Closer Economic Partnership Arrangement approved by the State Council:

I.

As of January 1st, 2004, service providers from Hong Kong and Macao shall be permitted to establish foreign trade companies within
the Mainland by means of joint venture, cooperative or solely funded enterprise.

II.

For the establishment of a foreign trade company, the average trade amount with the Mainland by a service provider from Hong Kong
or Macao during the three years prior to the application shall be no less than US$10 million. For the establishment of a foreign
trade company in the central and western regions of the Mainland, the average trade amount with the Mainland by a service provider
from Hong Kong or Macao during the three years prior to the application shall be no less than US$5 million.

III.

Where a service provider from Hong Kong or Macao files an application to establish a foreign trade company, the registered capital
of the foreign trade company shall be no less than RMB20 million Yuan; if the service provider establishes a foreign trade company
in the central and western regions, such registered capital shall be no less than RMB10 million Yuan.

IV.

With regard to other matters for service providers from Hong Kong and Macao to invest in the Mainland to establish foreign trade companies,
the Interim Measures on Establishing Sino-foreign Joint Venture Foreign Trade Companies shall still be applied.

V.

The service providers from Hong Kong and Macao mentioned in the present Supplementary Provisions shall respectively meet the requirements
in the Mainland and Hong Kong Closer Economic Partnership Arrangement and the Mainland and Macao Closer Economic Partnership Arrangement
on the definition of “service provider”, and in other relevant provisions, as well.

VI.

The power to interpret the present Supplementary Provisions shall remain with the Ministry of Commerce.

VII.

The present Supplementary Provisions shall be implemented as of January 1st, 2004.



 
Ministry of Commerce
2003-12-07

 






PEOPLE’S BANK OF CHINA LAW

Law of the People’s Republic of China on the People’s Bank of China

(Adopted at the Third Session of the Eighth National People’s Congress on March 18, 1995, promulgated by Order No.
46 of the President of the People’s Republic of China on March 18, 1995, and amended in accordance with the Decision on Amending
the Law of the People’s Republic of China on the People’s Bank of China adopted at the 6th Meeting of the Standing Committee of the
Tenth National People’s Congress on December 27, 2003) 

Contents 

Chapter I     General Provisions 

Chapter II    Organization Structure  

Chapter III   The Renminbi 

Chapter IV    Business Operations  

Chapter V     Financial Supervision and Control 

Chapter VI    Financial Affairs and Accounting 

Chapter VII   Legal Responsibility 

Chapter VIII  Supplement Provisions 

Chapter I 

General Provisions 

Article 1   This Law is enacted in order to define the status and make clear the functions and responsibilities of the
People’s Bank of China, ensure the correct formulation and implementation of the monetary policies of the State, establish and perfect
a macro-control system through a central bank and maintain financial stability. 

Article 2   The People’s Bank of China is the central bank of the People’s Republic of China. 

The People’s Bank of China shall, under the leadership of the State Council, formulate and implement monetary policies, guard against
and eliminate financial risks, and maintain financial stability. 

Article 3   The aim of monetary policies shall be to maintain the stability of the value of the currency and thereby promote
economic growth. 

Article 4 The People’s Bank of China shall perform the following functions and responsibilities: 

(1)to promulgate and carry out the orders and regulations related to its functions and responsibilities; 

(2)to formulate and implement monetary policies in accordance with law; 

(3)to issue Renminbi ( RMB ) and control its circulation; 

(4)to supervise and administer the inter-bank lending market and the inter-bank  bond market; 

(5)to exercise control of foreign exchange and  supervise and administer the inter-bank foreign exchange market; 

(6)to supervise and administer the gold market; 

(7)to hold, administer and manage the State foreign exchange reserve and gold reserve; 

(8)to manage the State Treasury; 

(9)to maintain the normal operation of the system for making payments and settling accounts; 

(10)to guide and make plans for  the fight against money laundering in the banking industry, and to be responsible for monitoring
the use of the funds earmarked for the fight against money laundering; 

(11)to be responsible for statistics, investigation, analysis and forecasting concerning the banking industry; 

(12)to engage in relevant international banking operations in its capacity as the central bank of the State; and 

(13)other functions and responsibilities prescribed by the State Council. 

To implement monetary policies, the People’s Bank of China may carry out financial operations in accordance with the relevant provisions
of Chapter IV of this Law. 

Article 5  The People’s Bank of China shall report its decisions to the State Council for approval concerning the annual money
supply, interest rate, foreign exchange rates and other important matters specified by the State Council before they are implemented. 

The People’s Bank of China shall immediately implement decisions on monetary policies for matters other than those specified by the
State Council for the record. 

Article 6 The People’s Bank of China shall submit to the Standing Committee of the National People’s Congress work reports concerning
matters of monetary policies and the operations of the banking industry. 

Article 7 The People’s Bank of China shall, under the leadership of the State Council, implement monetary policies, perform its functions
and carry out its business operations independently according to law and be free from intervention by local governments, government
departments at various levels, public organizations or individuals. 

Article 8 All capital of the People’s Bank of China is invested by the State and owned by the State. 

Article 9 The State Council shall establish a coordinating mechanism for financial supervision and administration. The specific measures
therefor shall be formulated by the State Council. 

ChapterII 

Organizational Structure 

Article 10 The People’s Bank of China shall have a Governor and a certain number of Deputy Governors. 

The candidate for the Governor of the People’s Bank of China shall be nominated by the Premier of the State Council and decided by
the National People’s Congress; when the National People Congress is not in session, the Governor shall be decided by the Standing
Committee of the National People’s Congress and appointed or removed by the President of the People’s Republic of China. The Deputy
Governors of the People’s Bank of China shall be appointed or removed by the Premier of the State Council. 

Article11 The People’s Bank of China shall practice a system wherein the Governor shall assume overall responsibility. The Governor
shall direct the work of the People’s Bank of China, the Deputy Governors shall assist the Governor in his or her work. 

Article12 The People’s Bank of China shall establish a monetary policy committee, whose functions, composition and working procedures
shall be prescribed by the State Council and reported to the Standing Committee of the National People’s Congress for the record. 

The monetary policy committee of the People’s Bank of China shall play an important role in the State macro-control and the formulation
and adjustment of monetary policies. 

Article13 The People’s Bank of China shall establish branches as its representative organs in light of the need of performing its
functions and responsibilities and exercise unified leadership and administration with respect to its branches. 

The branches of the People’s Bank of China shall, as authorized by the People’s Bank of China, maintain financial stability in their
respective districts and handle relevant business operations. 

Article 14 The Governor, Deputy Governors and other staff members of the People’s Bank of China shall scrupulously abide by their
duties; they may not abuse their power or conduct malpractice for private ends and they may not assume concurrent positions in any
other banking institutions, enterprises or foundations. 

Article 15 The Governor, Deputy Governors and other staff members of the People’s Bank of China shall safeguard State Secrets according
to law and be obligated to safeguard the secrets of the banking institutions and parties concerned with their implementation of their
functions and responsibilities. 

Chapter III 

The Renminbi 

Article 16 The legal tender of the People’s Republic of China is the Renminbi (RMB). When Renminbi is used to repay all public or
private debts within the territory of the People’s Republic of China, no units or individuals may refuse to accept it. 

Article 17The unit of the Renminbi is the yuan and the units of the fractional currency of the Renminbi are the jiao and the fen. 

Article 18 The Renminbi shall be printed and issued solely ny the People’s Bank of China. 

When putting forth a new Renminbi issue, the People’s Bank of China shall make known to the public the issuing date, face values,
designs, patterns and specifications. 

Article 19 It is prohibited to counterfeit or alter Renminbi. It is prohibited to sell or purchase counterfeit or altered Renminbi.
It is prohibited to transport, hold or use counterfeit or altered Renminbi. It is prohibited to deliberately destroy or damage the
Renminbi. It is prohibited to illegally use the parttens of Renminbi in propaganda materials, publications or other commodities. 

Article 20 No units or individuals may print or sell promissory notes as substitutes for Renminbi to circulate on the market. 

Article 21The damaged or soiled Renminbi shall be exchanged in accordance with the regulations of the People’s Bank of China, which
shall also be responsible to recall and destroy such Renminbi. 

Article 22 The People’s Bank of China shall establish a Renminbi issue treasuries at its branches. The subsidiary issue treasuries
shall, in allocating Renminbi issue fund, act on the order of allocation from their superior treasury. No units or individuals may
use the issue fund in violation of regulations. 

Chapter IV 

Business Operations 

Article 23 To implement monetary policies, the People’s Bank of China may apply the following monetary policy instruments: 

(1) to require a financial institution of the banking industry to place a deposit reserve at a prescribed ratio; 

(2) to fix the base interest rates for the central bank; 

(3) to handle rediscount for financial institutions of the banking industry that have opened accounts in the People’s Bank of China; 

(4) to provide loans for commercial banks; 

(5) to deal in State bonds, other government bonds, and financial bonds and foreign exchange on the open market; and 

(6) other monetary policy instruments decided by the State Council. 

When applying the monetary policy instruments listed in the preceding paragraph to implement monetary policies, the People’s Bank
of China may work out specific requirements and procedures. 

Article 24The People’s Bank of China shall manage he State treasury in accordance with laws and administrative rules and regulations. 

Article 25 The People’s Bank of China may, on behalf of the financial department under the State Council, issue to financial institutions,
and honour State bonds and other government bonds. 

Article 26 The People’s Bank of China may open accounts for financial institutions of the banking industry as needed, but may not
allow them to overdraw.      

Article 27 The People’s Bank of China shall organize or assist in organizing a clearing system among financial institutions of the
banking industry, coordinate the efforts of such institutions in matters of clearing and provide services in this regard. The specific
measures therefor shall be formulated by the People’s Bank of China. 

The People’s Bank of China shall, in conjunction with the banking regulatory authority under the State Council, formulate regulations
on payment and clearing. 

Article 28  The People’s Bank of China may, as required by the implementation of monetary policies, determine the amounts, term,
interest rates and forms of loans extended to commercial banks, however, the maximum term of loans shall not exceed one year. 

Article 29 The People’s Bank of China may not make an overdraft for the government, and may not directly subscribe or underwrite
State bonds or other government bonds. 

Article 30 The People’s Bank of China may not provide loans to the local governments or government departments at various levels,
to non-banking institutions, other units or individuals, with the exception of the specific non-banking institutions as decided by
the State Council. 

The People’s Bank of China may not provide guaranty for any unit or individual. 

Chapter V 

Financial Supervision and Control 

Article 31 The People’s Bank of China shall, in accordance with law, monitor the operation of the financial markets, conduct macro-control
of such markets and promote their coordinated development. 

Article 32 The People’s Bank of China shall have the power to inspect and supervise the following activities of the financial institutions
and other units and individuals: 

(1) implementation of the regulations for control of deposit reserve; 

(2)activities related to the special loans of the People’s Bank of China; 

(3)implementation of the regulations for control of Renminbi; 

(4)implementation of the regulations for control of the inter-bank lending market and the inter-bank  bond market; 

(5)implementation of the regulations for control of foreign exchange; 

(6)implementation of the regulations for control of gold; 

(7)management of the State Treasury on behalf of the People’s Bank of China; 

(8)implementation of the regulations for control of clearing; and 

(9)implementation of the regulations against money laundering. 

The special loan mentioned in the preceding paragraph are loans  granted, upon decision by the State Council, by the People’s
Bank of China for special purposes. 

Article 33 The People’s Bank of China may, according to the need to implement monetary policies and maintain financial stability,
propose that the banking regulatory authority under the State Council inspect and supervise the financial institutions of the banking
industry. The said authority shall, within thirty days from the date it receives the proposal, make a reply. 

Article 34 When financial institutions of the banking industry have difficulties in making payment that may trigger off financial
risks, the People’s Bank of China shall, with a view to maintaining financial stability, have the power to inspect and supervise
the financial institutions of the banking industry with the approval of the State Council. 

Article 35 The People’s Bank of China shall, according to the need to fulfill its functions and responsibilities, have the power
to demand the financial institutions of the banking industry to submit the necessary balance sheets, statements of profit and other
financial and accounting reports, statistical reports and information. 

The People’s Bank of China, the banking regulatory authority under the State Council and the other financial regulatory institutions
under the State Council shall establish a mechanism to share supervisory information. 

Article 36 The People’s Bank of China shall be responsible for compiling unified statistics and accounting statements from the national
banking system and shall publish them in accordance with relevant regulations of the State. 

Article 37 The People’s Bank of China shall establish and perfect system for its own examination and inspection and strengthen its
own supervision and administration. 

Chapter VI 

Financial Affairs and Accounting 

Article 38 The People’s Bank of China shall exercise independent control over its financial budget. 

The budget of the People’s Bank of China shall be incorporated in the central budget after it has been examined and verified by the
financial department under the State Council and the implementation thereof shall be subject to supervision of the financial department
under the State Council. 

Article 39 The People’s Bank of China shall, after withdrawing funds for its general reserve at a proportion determined by the financial
department under the State Council, turn over to the State treasury the entire net profit remaining from its income in an accounting
year minus its expenditures in the same period. 

Losses sustained by the People’s Bank of China shall be made up by appropriations from the State treasury. 

Article 40 The financial receipts and payments and accounting affairs of the People’s Bank of China shall be governed by laws, administrative
regulations and unified State financial and accounting systems and be subject to the auditing and supervision conducted, in accordance
with law, separately by the audit institution and the financial department under the State Council. 

Article 41The People’s Bank of China shall, within three months after the end of every accounting year, compile balance sheets of
its assets, statements of profit and loss and relevant financial and accounting reports, prepare its annual report and publish them
in accordance with relevant regulations of the State. 

The fiscal year of the People’s Bank of China begins on the first day of January and ends on the thirty-first day of December of
the Gregorian calendar. 

Chapter VII 

Legal Responsibility 

Article 42 Anyone who counterfeits or alters Renminbi, sells counterfeit or altered Renminbi or knowingly transports counterfeit
or altered Renminbi, which is serious enough to constitute a crime, shall be investigated for criminal responsibility in accordance
with law; if the case is not serious enough to constitute a crime, he shall be put in detention for not more than 15 days and fined
not more than 10,000 yuan by a public security organ. 

Article 43 Anyone who buys counterfeit or altered Renminbi or knowingly holds or uses counterfeit or altered Renminbi, which is serious
enough to constitute a crime, shall be investigated for criminal responsibility in accordance with law; if the case is not serious
enough to constitute a crime, he shall be put in detention for not more than 15 days and fined not more than 10,000 yuan by a public
security organ. 

Article 44 If anyone illegally uses the patterns of Renminbi in propaganda materials, publications or other commodities, the People’s
Bank of China shall order him to set it right and shall destroy the illegally used patterns of Renminbi, confiscate the illegal gains
and impose a fine of not more than 50,000 yuan. 

Article 45 If anyone prints or sells promissory notes as substitutes for Renminbi to circulate on the market, the People’s Bank of
China shall order him to cease his illegal act and impose a fine of not more than 200,000 yuan. 

Article 46 Where in relevant laws and administrative regulations there are provisions governing punishment for violations in respect
of the activities as are listed in Article 32 of this Law, punishment shall be meted out in accordance with those provisions; where
in such laws and administrative regulations there are no provisions governing such punishment, the People’s Bank of China shall,
on the merits of each case, give a disciplinary warning, confiscate the unlawful gains, or if the unlawful gains exceed 500,000 yuan,
shall, in addition, impose a fine of not less than the amount of such gains but not more than five times that amount; if there are
no unlawful gains or if such gains are less than 500,000 yuan, it shall impose a fine of not less than 500,000 yuan but not more
than 2,000, 000 yuan. The director or senior manager who is directly in charge or any other person who is directly responsible shall
be given a disciplinary warning and be fined not less than 50,000 yuan but not more than 500,000 yuan. If a crime is constituted,
criminal responsibility shall be investigated in accordance with law. 

Article 47 If any party refuses to accept the administrative punishment, he may institute an administrative lawsuit in accordance
with the Administrative Procedure Law of the People’s Republic of China. 

Article 48 If the People’s Bank of China commits any of the following acts, the persons directly in charge and other persons directly
responsible for the offense shall be subject to administrative sanctions according to law; if the case constitutes a crime, the offenders
shall be investigated for criminal responsibility according to law: 

(1) to provide a loan in violation of the provisions in the first paragraph of Article 30; 

(2) to provide guaranty for a unit or individual; or 

(3) to use the issue fund without authorization. 

If any of the acts specified in the preceding paragraph results in losses, the persons directly in charge and other persons directly
responsible for the offense shall be partially or wholly liable for the losses. 

Article 49 If a local government or a government department at any level, a public organization or an individual forcibly demands
the People’s Bank of China or its staff member to provide a loan or a guaranty in violation of the provisions in Article 30, the
persons directly in charge and other persons who are directly responsible for the offense shall be subject to administrative sanctions
in accordance with the law; if the case constitutes a crime, the offenders shall be investigated for criminal responsibility according
to law; if losses are caused, the offenders shall be partially or wholly liable for the losses.    

Article 50 If any staff member of the People’s Bank of China divulges State secrets or the business secrets he knows, which is serious
enough to constitute a crime, he shall be investigated for criminal responsibility according to law; if the case is not serious enough
to constitute a crime, he shall be subject to administrative sanction according to law. 

Article 51  If any staff member of the People’s Bank of China commits embezzlement, accepts bribes, conducts malpractices for
personal ends, abuses his power or neglects his duty, which is serious enough to constitute a crime, he shall be investigated for
criminal responsibility according to law; if the case is not serious enough to constitute a crime, he shall be subject to administrative
sanction according to law. 

Chapter VIII 

Supplementary Provisions 

Article 52  For purposes of this law, the financial institutions of the banking industry are financial institutions established
within the territory of the People’s Republic of China that take in deposits from the general public, including, among others, commercial
banks, urban credit cooperatives and rural credit cooperatives, and policy banks. 

The provisions of this Law pertaining to financial institutions of the banking industry are applicable to the assets management companies,
trust and investment companies, financial companies and financial leasing companies established within the territory of the People’s
Republic of China and other financial institutions established with the approval of the banking regulatory authority under the State
Council. 

Article 53 This Law shall be effective on the date of promulgation.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.






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

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