NOTICE OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON PRINTING AND DISTRIBUTING THE MEASURES FOR THE ADMINISTRATION OF FOREIGN EXCHANGE IN BORDER TRADE

Notice of the State Administration of Foreign Exchange on Printing and Distributing the Measures for the Administration of Foreign
Exchange in Border Trade

HuiFa [2003] No. 113
September 22nd 2003

The branches / departments of the State Administration of Foreign Exchange in all provinces, autonomous regions, and municipalities
directly under the Central Government, the branches in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo Cities, and all designated foreign
exchange (FX) banks controlled by Chinese fund:

For the purpose of promoting the development of border trade between China and its surrounding counties and regulating the FX administration
in border trade, the State Administration of Foreign Exchange (SAFE) has formulated the Measures for the Administration of Foreign
Exchange in Border Trade (hereinafter referred to as the Measures). The Measures are hereby printed and distributed to you, with
the relevant matters notified as follows:

The Measures are applicable to the foreign trade operations related to border trade in the border provinces (autonomous regions).
The designated FX banks and enterprises outside the border provinces shall not be governed by the present Measures.

The Measures are a normative document on FX administration in border trade of the whole nation. The SAFE branches in all border provinces
(autonomous regions) shall, pursuant to the present Measures and other provisions on the administration of foreign trade and in response
to the real situation of FX operations in border trade, formulate detailed implementation rules for FX administration in border trade
within their respective jurisdictions. If a port SAFE sub-branch, as demanded by the real situation, is to formulate detailed implementation
rules for FX administration in border trade under its jurisdiction, it shall submit the drafted rules to the SAFE branch of the province
(autonomous region) where it is located, which shall carefully examine and submit them as well as the detailed implementation rules
drafted for FX administration in border trade of the whole province (autonomous region) to the SAFE for approval.

When submitting the drafted rules, the SAFE branches in all border provinces (autonomous regions) shall also submit the import &
export circumstances, the settlement channels and writing-off of FX proceeds and payment concerning import & export of border
trade within their respective jurisdictions and in all port areas under their respective jurisdictions, as well as the circumstances
of FX administration in the neighboring countries.

The designated FX banks in border areas shall, pursuant to the relevant provisions of the People’s Bank of China and the SAFE and
out of consultation on an equal footing, establish agency relations with banks in the border areas of the neighboring countries and
open direct settlement channels between the banks. For a neighboring country whose central bank has concluded a bilateral agreement
on home currency payment, the designated FX banks in the border areas shall establish agency relations with the commercial banks
in the border areas of such country, open direct settlement channels between banks, increase outlets for FX settlement and sales
and provide convenient and shortcut services to border trade enterprises.

Upon receiving the present Notice, all SAFE branches in border provinces (autonomous regions) shall transmit it as soon as possible
to the port SAFE sub-branches and designated FX banks within their respective jurisdictions as well as the relevant organizations;
and all designated FX banks controlled by Chinese capital shall transmit it as soon as possible to their branches. In case any problem
occurs during the implementation of the present Notice, please feed back to the State Administration of Foreign Exchange in good
time.

Attachment: Measures for the Administration of Foreign Exchange in Border Trade

Attachment:
Measures for the Administration of Foreign Exchange in Border Trade
Chapter I General Provisions

Article 1

For the purpose of promoting the sound development of border trade between China and its surrounding countries, improving the FX
administration and regulating the capital settlement behaviors and account administration in border trade, the Measures have been
formulated pursuant to the Regulations of the People’s Republic of China on the Administration of Foreign Exchange as well as other
provisions concerned.

Article 2

The term “border trade” as mentioned in the present Measures refers to the transactions between inhabitants on either side of the
border, small-scale border trade and foreign economic and technical cooperation in border areas.

The transactions between inhabitants on either side of the border refer to the exchange of commodities between border inhabitants
within the range of designated capital amount and quantities in the open sites within 20 kilometers from the border line to each
side as approved by the governments or on the designated markets.

The small-scale border trade refers to the trade activities through state-designated land port on border between the enterprises with
small-scale trade right approved in the border areas of China and the enterprises or other trade organizations in the border areas
of the neighboring countries (hereinafter referred to as trade organization outside China).

The foreign economic and technical cooperation in border areas refer to the project contracting and labor services in the border areas
of China’s neighboring countries by enterprises with foreign economic and technical cooperation right approved in the border areas
of China.

Article 3

The border trade enterprises as mentioned in the present Measures include the small-scale border trade enterprises and foreign economic
and technical cooperation enterprises of China.

The small-scale border trade enterprises refer to the enterprises with small-scale trade right as approved by the departments in charge
of commerce.

The foreign economic and technical cooperation enterprises refer to the enterprises with foreign economic and technical cooperation
right on project contracting, labor services, etc. in the border areas of the neighboring countries, as approved by the commerce
competent departments.

Article 4

When conducting border trade with trade organizations outside China, the border trade enterprises or individuals may use freely convertible
currencies, home currencies of the neighboring countries or RMB for pricing and settlement, or conduct settlement through barter
trade.

Article 5

When conducting border trade settlement with trade organizations outside China, the border trade enterprises or individuals shall
carry out the reporting of balance of payment statistics pursuant to the Measures for Statistical Reporting on Balance of International
Payments and other provisions concerned.

Article 6

The SAFE and the branches and sub-branches thereof are the authorities in charge of FX operations in border trade.

Article 7

After obtaining the small-scale border trade right or the foreign economic and technical cooperation right upon the approval of the
commerce competent departments, a border trade enterprise shall go to the FX administration for record keeping by presenting the
business license issued by the administration of industry and commerce, the approval document of the commerce competent department,
the certificate of organizational code and the certification for registration with the customs.

Chapter II Account Administration in Border Trade

Article 8

A border trade enterprise shall open, use and close accounts with the designated FX banks (hereinafter referred to as the banks)
in China’s border areas under the Provisions on the Management of Domestic Foreign Exchange Accounts, the Detailed Implementation
Rules for the Administration of Current Foreign Exchange Accounts of Domestic Institutions and other provisions concerned.

Article 9

A border trade enterprise may open with the banks in China’s border areas the border trade accounts capable of settlement in the
currency of a neighboring country. For a currency of the neighboring country in a situation that the central bank of the currency
issuing country has not concluded with the People’s Bank of China a bilateral agreement on home currency payment, when a border trade
enterprise opens the border trade account in such currency, the scope of income is: the capitals transferred under border trade by
the trade organizations outside China from the current FX accounts or the border trade accounts in the currency of the neighboring
country opened with banks in China’s border areas; and the scope of payout is: the capitals transferred under border trade by the
trade organizations outside China to the current FX accounts or the border trade accounts in the currency of the neighboring country
opened with the banks in China’s border areas. For a currency of the neighboring country in a situation that the central bank of
the currency issuing country has concluded with the People’s Bank of China a bilateral agreement on home currency payment, the border
trade accounts in such currency opened by a border trade enterprise shall be utilized pursuant to the aforesaid agreement and incorporated
into the administration under the Foreign Exchange Accounts Administration Information System.

Article 10

Trade organizations outside China may open with banks in China’s border areas the current FX accounts and the border trade accounts
in the currency of the neighboring country. For a trade organization of the neighboring country whose central bank has not concluded
with the People’s Bank of China a bilateral agreement on home currency payment, the scope of income of the current FX accounts and
the border trade accounts in the currency of the neighboring country is: the capitals transferred under border trade from the border
trade FX accounts or the border trade accounts in the currency of the neighboring country opened by the domestic border trade enterprises
and individuals; and the scope of payout is: the capitals transferred under border trade to the border trade FX accounts or the border
trade accounts in the currency of the neighboring country opened by the domestic border trade enterprises and individuals. For a
trade organization of the neighboring country whose central bank has concluded with the People’s Bank of China a bilateral agreement
on home currency payment, the current FX accounts and the border trade accounts in the currency of the neighboring country opened
thereby shall be utilized in accordance with the said agreement.

Article 11

In the border areas with big volume of RMB settlement, a trade organization outside China may open an exclusive account for RMB settlement
in border trade. Such account may not be used for any purpose other than receipt and payment of capitals under border trade settlement.

Article 12

During the opening of a current FX account, border trade account in the currency of the neighboring country or exclusive account
for RMB settlement in border trade with a bank in China’s border areas, a trade organization outside China shall file an application
thereof to the FX administration of the locality where such opening takes place by presenting the business license certification
of its home country (in the case of an individual, valid identity certification such as passport) and such materials as border trade
contract, and go through the account-opening procedures by presenting the approval document of the FX administration. A account-opening
bank shall handle the account-opening procedures for the trade organization outside China in accordance with the present Measures
and indicate with special marks the account numbers of the current FX accounts and the border trade accounts in the currency of the
neighboring country opened by the trade organizations outside China so as to incorporate such numbers into the administration under
the “Foreign Exchange Accounts Administration Information System”.

For a current FX account, a border trade account in the currency of a border country or exclusive account for RMB settlement in border
trade opened by a trade organization outside China with a bank in China’s border areas, all foreign-related income and payment transactions
taking place outside China of such account shall be subject to the procedures of statistical reporting on the balance of international
payments in accordance with the relevant provisions of China on FX administration.

Article 13

In case a trade enterprise collects export proceeds by arranging a domestic resident individual as the payee, it shall report in
advance the name, account number, etc. of such resident individual proposed to the local FX administration for archival purposes.
The account-opening bank shall process account-opening procedures upon the certification issued by the FX administration and indicate
such account with a special mark. The scope of income for an account of such category is: the FX payments remitted from outside China
for goods under the border trade export. The enterprise receiving the payments shall conduct FX settlement with the bank immediately
after entering such payments into the account, and the bank shall issue to such enterprise the FX settlement voucher used exclusively
for the writing-off of export FX proceeds. The FX transactions in the accounts of such category shall be settlement under trade;
when submitting the Monthly (Ten-day) Report on Bank Statistics of Foreign Exchange Settlement and Sales to the FX administration,
the bank shall include such transactions under the post_title of “101 Trade Proceeds”.

Chapter III Administration of Foreign Exchange Proceeds and Payments in Border Trade

Article 14

As to the freely convertible currencies earned under current account by a border trade enterprise, for those within the quotas of
current FX accounts as approved by the FX administration, the enterprise may conduct settlement or retain the FX by depositing it
in the current FX account; for those exceeding the approved quotas, the enterprise shall conduct settlement as provided for. For
the currency of the neighboring country received under current account by a border trade enterprise, the enterprise may deposit such
currency in the border trade account in the currency of the neighboring country or sell them at the free will of the banks for purchase.

Article 15

The foreign payments under current account by a border trade enterprise shall, in accordance with the Provisions on the Administration
of Foreign Exchange Settlement, Sales and Payments and other provisions concerned, be made from the current FX account, border trade
account in the currency of the neighboring country or RMB account or be honored at the bank by presenting the designated valid certificates
and commercial documents.

Article 16

If direct FX collection or payment arises with a border trade enterprise or individual from the current FX account, border trade
account in the currency of the neighboring country or exclusive account for RMB settlement in border trade opened with a bank in
China’s border areas, such enterprise or individual shall be regarded as making FX collection from or payment to outside China. The
border trade enterprise and individual shall go through the procedures for statistical reporting on the balance of international
payments with the bank and take the designated valid certificates and business documents to go through the collection or payment
procedures concerned, in accordance with the Measures for Statistical Reporting on Balance of International Payments, the Provisions
for the Administration of Foreign Exchange Settlement, Sales and Payment and other provisions concerned.

Chapter IV Administration of Proceeds and Payments Writing-off in Border Trade

Article 17

If foreign payment by a border trade enterprise under import in border trade is settled in a freely convertible currency or the currency
of the neighboring country, no matter the payment is made to outside China or to the current FX account or border trade account in
the currency of the neighboring country opened in a bank of China’s border areas by a trade organization outside China, such enterprise
or individual shall fill out the Form on the Writing-off of Foreign Exchange Payment Under Import in Trade (Substitute Reporting
Form) and go through the writing-off procedures for the FX payment in accordance with the Interim Measures for the Supervision and
Administration of Foreign Exchange Payment Under Import Trade and other provisions concerned.

Article 18

For a border trade enterprise that needs to make settlement in RMB during import, if the other party is an enterprise located in
a country that have signed a bilateral agreement on home currency payment, the first mentioned enterprise shall fill out the Form
on the Writing-off of Foreign Exchange Payment Under Import Trade (Substitute Reporting Form) during the payment for goods and go
through the writing-off procedures for the FX payment in accordance with the Interim Measures for the Supervision and Administration
of Foreign Exchange Payment Under Import Trade and other provisions concerned.

Article 19

Where a border trade enterprise needs to make payment to an exclusive account for RMB settlement in border trade opened by a trade
organization outside China with a bank in China’s border areas, the beneficiary’s bank shall process the account entry procedures
at the presentation of the contract provided by the trade organization outside China, the customs declaration of imports by the border
trade enterprise and other designated certificates. After the completion of account entry procedures, the beneficiary’ s bank shall
write off the corresponding customs declaration of imports on the China E-port Foreign Exchange Payment System and conclude the case
thereabout in good time, or make a submission to the local FX administration for the writing-off and case conclusion.

Article 20

After processing the writing-off procedures for import FX payment, the FX administrations and the banks shall write off the corresponding
customs declaration of imports on the China E-port Foreign Exchange Payment System and conclude the case thereabout in good time
under the provisions concerned.

Article 21

A border trade enterprise conducting export under border trade shall apply for the export Foreign Exchange Proceeds Writing-off Form
and go through the procedures for export customs declaration, FX proceeds, etc. The writing-off of FX proceeds shall be handled under
the following provisions:

(1)

For exchange settlement in a freely convertible currency, the border trade enterprise shall go through the export FX proceeds writing-off
procedures in accordance with the Administrative Measures for the Writing-off of Export Foreign Exchange Proceeds, the detailed implementation
rules thereof and other provisions concerned.

(2)

For cash settlement in a freely convertible currency, the border trade enterprise shall go through the export FX proceeds writing-off
procedures by presenting the customs declaration of imports, the export FX proceeds writing-off form, the bank-issued FX cash settlement
voucher and the purchase invoice.

(3)

For settlement in the currency of a neighboring country, the border trade enterprise shall go through the export FX proceeds writing-off
procedures by presenting the customs declaration of imports, the export FX proceeds writing-off form, and the customs-verified declaration
on carrying currency cash of a neighboring country or the bank-issued inward remittance certification.

(4)

For settlement in RMB, the border trade enterprise shall go through the export FX proceeds writing-off procedures by presenting the
customs declaration of imports, the export FX proceeds writing-off form, and the RMB inward remittance certification (where the trade
organization has opened an exclusive account for RMB settlement in border trade, the enterprise may present the domestic RMB transfer
certification).

(5)

For payment collected from the current FX account or the border trade account in the currency of a neighboring country opened by a
trade organization outside China with a bank in China’s border areas, the border trade enterprise shall go through the export FX
proceeds writing-off procedures by presenting the customs declaration of imports, the export FX proceeds writing-off form, and the
capital transfer certification issued by the payer’s bank.

(6)

For FX payment collected by remittance of domestic resident individual, the border trade enterprise shall go through the export FX
proceeds writing-off procedures by presenting the customs declaration of imports, the export FX proceeds writing-off form, and the
exclusive settlement voucher for writing-off of export FX proceeds.

(7)

For settlement through barter trade, the border trade enterprise shall go through the export FX proceeds writing-off procedures by
presenting such documents as the export FX proceeds writing-off form, and the customs declarations of exports and imports respectively.

Article 22

After processing the export FX proceeds writing-off procedures, the FX administrations shall issue the “special page for writing-off
and drawback of export FX proceeds” to the border trade enterprises and indicate the type of currency and the capital amount in the
column of remarks.

Article 23

The FX administrations shall, in accordance with the Administrative Measures for the Writing-off of Export Foreign Exchange Proceeds,
the detailed implementation rules thereof and the present Measures, distribute the export FX proceeds writing-off forms and process
the export FX proceeds writing-off procedures, and conduct appraisal of the circumstances concerning the export FX proceeds of such
enterprises.

Article 24

The FX administrations shall strengthen statistics and analysis of border trade and gather information about border trade within
their jurisdictions in good time. All SAFE sub-branches shall submit the Statistical Form on Import & Export and Writing-off
Circumstances of Small-amount Border Trade of the last month to the SAFE within first ten office days of each month.

Chapter V Administration of Settlement and Conversion of Currencies in Border Trade

Article 25

The banks in border areas shall, in accordance with the relevant provisions of the People’s Bank of China, establish agency relations
with the commercial banks in the border areas of the neighboring countries and open direct settlement channels between banks.

Article 26

In accordance with the Notice of the People’s Bank of China on Relevant Issues Concerning the Administration of Foreign Currency
Cash (YinFa [2001] No.376), the Supplementary Notice of the People’s Bank of China on Relevant Issues Concerning the Administration
of Foreign Currency Cash (YinFa [2001] No. 384), the Interim Measures for the Administration of Foreign Exchange Settlement and Sales
in Designated Foreign Exchange Banks (Order No. 4 [2002] of the People’s Bank of China), and the Detailed Implementation Rules for
the Administration of Foreign Exchange Purchase by Domestic Resident Individuals, all commercial banks in the border areas engaged
in foreign currency deposit operations upon the approval of the banking regulatory departments may apply for individual FX settlement
operations upon the approval of the local FX administrations, and all commercial banks in border areas engaged in FX settlement and
sales or conversion of foreign currencies upon the approval of the banking regulatory departments or the FX administrations may apply
for individual FX sales operations and increase outlets for FX settlement and sales upon the approval of the local FX administrations.

Article 27

The banks in the border areas shall, in accordance with the Notice of the People’s Bank of China on Relevant Issues of Adjusting
Administrative Policies for Foreign Currency Cash (YinFa [2002] No. 283), adjust the purchase and sale prices of foreign currency
cash within the designated floating range. The FX administrations shall assist the banks in conducting individual FX settlement and
sales operations by fluctuating in line with the market conditions under the provisions concerned and guide them in handling well
the risk management and capital balance.

Article 28

The banks in the border areas may put up exchange rates between RMB and currencies of the neighboring countries and self-determine
the difference between purchase and sale prices, with the currencies of the neighboring countries accepted being handled on their
own.

Article 29

The banks in the border areas shall set up foreign currency conversion outlets to process the conversion between RMB and freely convertible
currencies or currencies of the neighboring countries in accordance with the provisions concerned of the banking regulatory authority
and the SAFE.

Chapter VI Supplementary Provisions

Article 30

The banks, border trade enterprises and individuals shall carry out the relevant FX operations of border trade pursuant to the present
Measures and other provisions concerned on FX administration. For violators of the present Measures or other provisions concerned
on FX administration, the FX administrations will mete out punishment pursuant to the laws and regulations such as the Regulations
of the People’s Republic of China on FX Administration.

Article 31

Other matters concerning FX administration unspecified in the present Measures shall be implemented pursuant to the laws and regulations
concerned on FX administration.

Article 32

The banks shall earnestly perform the provisions on the reporting of wholesale and doubtful capital transactions in strict compliance
with the Provisions on Anti-Money Laundering in Financial Institutions and the Administrative Measures for the Reporting of Wholesale
and Doubtful Capital Transactions in Financial Institutions. In case of any doubtful situation, a bank shall timely submit to the
next higher-level bank as well as the people’s bank, FX administration and public security department in the place where it is located,
take initiatives to cooperate with the people’s bank, FX administration and public security department in handling well the relevant
work, and prevent and combat illegal FX trading activities such as using border trade payment or settlement to commit money-laundering.

Article 33

A SAFE branch in a province (autonomous region) where the border areas belong may, in accordance with the present Measures and other
laws and regulations on FX administration and on catering to the real circumstances of the locality, formulate corresponding detailed
implementation rules, which shall be promulgated and implemented upon the approval of the SAFE.

Article 34

The power to interpret the present Measures shall remain with the SAFE.

Article 35

The present Measures shall be implemented as of October 1st 2003, on which the Interim Measures for Foreign Exchange Administration
as promulgated on January 23rd 1997 and the Notice of the State Administration of Foreign Exchange on the Foreign Exchange Administration
of Small-scale Border Trade Between China and Russia and Other Members of the Commonwealth of Independent States as promulgated on
September 16th 2002 will be repealed at the same time.

Attachment: Statistical Form on Import & Export and Writing-off Circumstances of Small-amount Border Trade (omitted)

State Administration of Foreign Exchange
2003-09-22

PROVISIONS ON THE ANTIDUMPING INVESTIGATION OF INDUSTRY INJURY

Ministry of Commerce

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

No.5

Provisions on the Antidumping Investigation of Industry Injury, Provisions on the Countervailing Investigation of Industry Injury,
Provisions on the Investigation of Industry Injury under Safeguard Measures that have been reviewed and passed by the 5th executive
meeting of the Ministry of Commerce on September 9, 2003, are hereby issued and shall be put into effect after 30 days.

Lv Fuyuan, the minister of the Ministry of Commerce

October 17, 2003

Provisions on the Antidumping Investigation of Industry Injury

Chapter I. General Provisions

Article 1

The present Provisions are formulated in accordance with the Antidumping Regulation of the People’s Republic of China (hereinafter
referred to as Antidumping Regulation), with the aim to regulate the antidumping investigation of industry injury.

Article 2

The present Provisions shall apply to the activities related to the antidumping investigation of industry injury in accordance with
the Antidumping Regulation.

Article 3

The Ministry of Commerce of the People’s Republic of China (MOFCOM) shall take charge of the antidumping investigations of industry
injury. As for the antidumping investigations of industry injury related to agricultural products, the responsibility shall be undertaken
jointly by the MOFCOM and the Ministry of Agriculture.

Chapter II. Cognizance of Injury

Article 4

The term “industry injury” refers to an actual injury or a risk of actual injury to the existing domestic industry, or actual encumbrance
of the establishment of a domestic industry resulted from dumped imports.

The term “actual injury” as stated in the present Provisions refers to the non-negligible injury caused by dumped imports to an established
domestic industry.

The term “risk of actual injury” means that no actual injury has been caused to the domestic industry, but there is evidence showing
that an actual injury to the domestic industry is clearly foreseeable and imminent unless measures are taken against it.

The term “actual encumbrance” means that the dumped imports have not resulted in actual injury or have not formed a risk of actual
injury to the domestic industry, but has seriously retarded the establishing process of domestic industry.

Article 5

In the Cognizance of the injury caused to the domestic industry by dumped imports, the following matters shall be investigated:

(1)

The volume of the dumped imports and the consequential effect dumped imports on the price of domestic kindred products;

(2)

The consequential effect of the dumped imports on domestic industry.

Article 6

The investigation of dumped imports shall involve whether there has been a significant increase in dumped imports either in absolute
terms or relative to the production or the consumption of the domestic kind products.

The investigation of the consequential impact of dumped imports on the price of domestic like products shall involve whether there
has been a significant price reduction of the dumped imports or whether the dumped imports have resulted in a significant depression
in the price of the domestic like product or prevented price increase of the domestic like products that would have occurred.

Article 7

The investigation of the impact of the dumped imports on the domestic industry shall involve an assessment of all relevant economic
factors and indicators which have influences on the situation of the industry, including actual and potential decline in sales, profits,
output, market share, productivity, return on investment, or equipment utilization, the factors that have influences on domestic
prices, the amplitude of the dumped imports; the actual or potential adverse effects on the inventories, employment, wages, growth,
ability to raise capital or to make investment etc.

Article 8

The determination of an actual injury shall be based on the clearly foreseeable and imminent situation, in which if no measures are
taken, an actual injury will occur. The determination of a risk of actual injury shall be based on facts, rather than simply on complaints,
conjectures or the least possibility.

Moreover, when determining a risk of actual injury, investigations shall be made but not limited to the factors as follows:

(1)

Significant increase rate showing a likely actual increase of dumped imports;

(2)

The capability of the exporters to use fully and freely or of potential actual increase, which shows a likely actual increase of dumped
exports entering the market of the importing members. In the use of this indicator, one should consider the factor whether there
are any other export markets that may take in any additional exports;

(3)

Whether the imported product are being imported in prices of significant depression or suppression of prices of domestic like product,
which is likely to cause an increase of the demands of imports;

(4)

The inventories of the products under investigation.

Article 9

When determining an actual encumbrance of the establishment of a domestic industry, the investigation shall, in addition to the factors
listed in Article 8 , be made but not limited to the factors as follows:

(1)

The foundation and the related preparatory work of the domestic industry;

(2)

The increase of domestic demands and the consequential effects;

(3)

The impact of the dumped imports on the domestic market;

(4)

The follow-up productivity of the dumped imported product and the development trends in the domestic market.

Article 10

like product refers to a product that is identical to, or in the absence of such a product, one that has characteristics closest to
those of the imported dumped product in question.

Article 11

In the determination of like products, such factors shall be taken into account as the physical characteristics of the products, chemical
features, manufacturing equipment and techniques, purposes of use, substitutability, appraisal of consumers and producers, distribution
channels, and prices, etc.

Article 12

The influence of the dumped imports on domestic industry shall be assessed on the basis of the separate definition of the production
of the domestic like product. If, on the basis of the techniques of production and the producers’ sales and profits, one cannot distinguish
the production of domestic like product from the production of other products, the influence of dumped imports shall be determined
by reference to the production of the narrowest product group or scope which include the domestic like product insofar as the product
group or scope can provide sufficient information.

Article 13

In the determination of a domestic industry, one should consider all the producers of the domestic like product in China, or the producers
whose total output forms the principal part of the total output of the domestic like product; however, if a domestic producer is
associated with an export business operator or import business operator, or he himself is an import business operator of the dumped
imports, he may be not be considered as the domestic industry.

The term “is associated with” mentioned above means that one party directly or indirectly controls or influences another, or both
parties are controlled or influenced by a third party, or both parties jointly control or influence a third party in a direct or
an indirect way.

Article 14

In the determination of a regional industry, the following factors shall be considered:

(1)

The producers sell all of or nearly all of the like products manufactured by them in this regional market;

(2)

The demands of the regional market aren’t satisfied or aren’t mainly satisfied by the like-product producers in other domestic areas;
and

(3)

Other factors.

Article 15

An accumulative evaluation of the influence of dumped imports on the domestic industry may be made if the dumped imports come from
two or more countries (regions) and simultaneously meet requirements as follows:

(1)

The dumping margin is not less than 2% and the volume of dumped imports isn’t negligible;

(2)

It is reasonable to make an accumulative evaluation according to the competition conditions among the dumped imports and those between
the dumped imports and the domestic like products,.

(3)

The term “negligible” mentioned above means that the volume of the dumped imports from a country (region) is considered negligible
if it accounts for below 3% of the total volume of the imported like product, but excluding the circumstance that countries which
individually account for below 3% collectively account for more than 7% of the total volume of imports of like products.

Article 16

In an accumulative assessment, the following factors shall be considered:

(1)

The continuity and possibility of the influence of dumped imports from different countries (regions) on the domestic industry;

(2)

The substitutability between the dumped imports from different countries and the domestic like product, including such factors as
the demands of special clients, product quality and so on;

(3)

The sales prices, quoted prices of the sells and actual transactions prices of the dumped imports from different countries (regions)
and the domestic like product in the markets of a same area;

(4)

Whether there are identical or similar distribution channels for a dumped product imported from different countries (regions) and
the domestic like product, and whether they occur in the market simultaneously;

(5)

Other competition conditions that exist among the dumped imports and between the dumped import product and the domestic like product;
and

(6)

Other factors.

Article 17

In the investigation of industry injury, the MOFCOM shall give users or consumers of the dumped imports an opportunity to present
their views and evidences.

Article 18

The period subject to antidumping investigation of industry injury shall generally be 3-5 years before the investigation commences.

Chapter III. Industry Injury Investigation

Article 19

When any interested party applies for answering the antidumping investigation of industry injury, it shall apply to the MOFCOM within
20 days from the day when an announcement on the initiation of antidumping investigation of industry injury is made, and shall carry
out relevant registration formalities. At the same time, the applicant shall offer the information related to its productivity, output,
inventories, construction and expansion plans, the volume and amount of the product exported to China, the volume and amount of the
product imported by the import business operators.

Article 20

The interested parties may be:

(1)

overseas producers, export business operators, and domestic import business operators of the products under investigation, or guilds
or other organizations of the producers, export business operators and import business operators of the products under investigation;

(2)

the government of the country (region) of origin and the export country (region) of the products under investigation as well as the
representatives thereof;

(3)

producers and business operators of domestic like products, or guilds or other organizations of the producers and business operators
of the products; or

(4)

others.

Article 21

An interested party who is involved in the investigation shall present his identification certificate. In the case that the interested
party is an enterprise or any other organization, it shall submit its business license and other registration certificates, and the
identification certificate of the legal representative.

In the case that an interested party entrusts an agent to deal with the matter under investigation, it shall present identification
certificate of the agent and a power of attorney. In the case that an interested party entrusts a lawyer as his proxy, the lawyer
shall serve a law firm in China and shall practice law in China, a power of attorney, the business license of the law firm and the
law-practice certification of the lawyer shall be presented.

Article 22

In the antidumping investigation of industry injury , the objects of the MOFCOM include domestic producers, domestic import business
operators, domestic purchasers, domestic end consumers, foreign export business operators and foreign producers, etc.

Article 23

The MOFCOM may, whenever necessary, consign experts in the fields of the relevant industry, accounting, economics, trade, and law
to provide consultation services. The experts involved shall keep the secrets.

Article 24

The MOFCOM shall take such means as questionnaires, sampling, hearing, technical authentication, on-the-spot investigation and so
on to make an industry injury investigation.

Article 25

The questionnaires issued by the MOFCOM to the interested parties include domestic producer questionnaires, domestic importer questionnaires,
domestic consumer questionnaires, overseas producer and overseas exporter questionnaires, and other forms of questionnaires

Article 26

An interested party shall submit answers to the questionnaires according to the method and time limit as specified in the questionnaires.
If it needs to extend the time limit, it shall, 7 days prior to the time limit for the submission of answers, submit a written application
to the MOFCOM and make an explanation. It is for the MOFCOM to decide whether to extend the time limit or not.

Article 27

The MOFCOM may make on-the-spot investigation to the interested parties. Prior to the on-the-spot investigation, it shall notify the
relevant interested parties of the major purposes and content of the examination.

Article 28

The MOFCOM may, on the requirement of the interested parties or in need of the investigation, upon the approval of the relevant country
(region), consign persons to the country (region) to conduct investigations on the productive capacity, investments in expanding
production, inventories, place of origin or entrepot, the link among the enterprises and other information related to the product.

Article 29

The MOFCOM may require the interested parties to submit or supplement written materials according to the relevant provisions, and
the interested may offer to submit written materials to the MOFCOM as well.

Article 30

The MOFCOM may, at the request of an interested party, or whenever necessary, hold a hearing of industry injury.

Article 31

In the case that an interested party involved in the industry injury investigation considers it necessary to keep the materials and
the relevant evidence secret, it shall, when submitting the materials to the MOFCOM, attach a non-confidential summary of the materials,
or submit the confidential text and an open text of the materials.

The non-confidential summary and open text shall contain reasonable substantial content of the confidential information. In the absence
of substantial content, the MOFCOM may request the interested party to supply relevant content and evidential materials.

Article 32

In the case that any interested party involved in the industry injury investigation fails to provide a non-confidential summary or
an open texts of the materials submitted by it, or fails to provide good reasons, the MOFCOM may refuse to take the materials into
account. If the MOFCOM does not considers it necessary to keep the materials submitted by an interested party secret, it might request
the interested party to withdraw its application for secrecy purposes.

Article 33

In the industry injury investigation, any interested party involved shall faithfully provide the information and offer relevant materials.
If any interested party fails to do so, or fails to provide necessary information within a reasonable time limit, or seriously intervene
with the investigation by any other means, the MOFCOM may make a ruling based on the facts it has already obtained and the best information
available.

Chapter IV. Supplementary Provisions

Article 34

As an interested party involved in the industry injury investigation submits any document or evidential material to the MOFCOM, it
shall submit the original Chinese text in quintuplicate accompanied by the corresponding electronic text (computer floppy disks or
CDs) in triplicate.

Article 35

Chinese language prescribed by the administrative department of languages of the state is considered as the formal language by the
industry injury investigation of the MOFCOM. Any document, materials or information offered by an interested party shall be written
in standard Chinese. As for any materials in any other language, a Chinese translation and the original text shall be submitted,
and the Chinese version shall prevail. Any materials in any non-prevailing language without attaching a Chinese version shall not
be considered as valid and lawful evidential material.

Article 36

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

Article 37

The present Provisions shall go into effect 30 days after the date of promulgation. At the same time when the present Provisions are
implemented, the Provisions on the Antidumping Investigation of Industry Injury and Award (Order No. 45 (2002) of the former State
Economic and Trade Commission shall be repealed.

Ministry of Commerce
2003-10-17

NOTICE OF THE STATE FOOD AND DRUG ADMINISTRATION ON THE ISSUES CONCERNING THE IMPLEMENTATION OF THE ADMINISTRATIVE MEASURES FOR THE IMPORT OF DRUGS

State Food and Drug Administration

Notice of the State Food and Drug Administration on the Issues concerning the Implementation of the Administrative Measures for the
Import of Drugs

GuoShiYaoJianZhu [2003] No. 320

November 19th, 2003

All port administrations of food and drugs, all port drug inspection offices, the customs of Guangdong Province of the General Administration
of Customs, the special offices of Tianjin and Shanghai, and all customs directly under the General Administration of Customs:

In accordance with Order No. 4 of the State Food and Drug Administration, the Administrative Measures for the Import of Drugs (hereinafter
referred to as the Measures) shall be implemented as of January 1st, 2004. With a view to earnestly carrying out the implementation
of the Measures, we hereby make the notice of the relevant issues as follows:

Upon the approval of the State Council, imported drugs are allowed to enter China through 18 port cities, that is, Beijing, Tianjin,
Shanghai, Dalian, Qingdao, Chengdu, Wuhan, Chongqing, Xiamen, Nanjing, Hangzhou, Ningbo, Fuzhou, Guangzhou, Shenzhen, Zhuhai, Haikou,
and Xi’an.

With a view to strengthening the administration and enhancing the efficiency of customs clearance, the State Food and Drug Administration
and the General Administration of Customs have further determined the name list of the specific ports permitting the entry of imported
drugs (Annex1)

In light of the Measures, the destinations of all the imported drugs (including narcotics and psychotropic drugs) shall fall within
the specified ports of the above-mentioned 18 cities.

In accordance with the need of import record keeping, the following 18 administrations of drugs are determined as port administrations
of drugs by the State Food and Drug Administration, that is, the drug administrations of Beijing, Tianjin, Shanghai, Dalian, Qingdao,
Chengdu, Wuhan, Chongqing, Xiamen, Nanjing, Hangzhou, Ningbo, Fuzhou, Guangzhou, Shenzhen, Zhuhai, Haikou and Xi’an. The addresses
and telephone numbers of the port drug administrations are indicated in Annex 2.

In accordance with the need of drug inspection, the State Food and Drug Administration shall authorize the National Institute for
the Control of Pharmaceutical and Biological Products, the drug inspection offices of Beijing, Tianjin, Shanghai, Dalian, Qingdao,
Chengdu, Wuhan, Chongqing, Xiamen and Guangzhou, and the drug inspection offices of Jiangsu Province, Zhejiang Province, Fujian Province,
Hainan Province, Guangdong Province and Shaanxi Province as the port drug inspection offices. The addresses and telephone numbers
of all port drug inspection offices are indicated in Annex 3.

All port drug administrations and port drug inspection offices shall, in accordance with the respective actual circumstances, determine
their respective jurisdictional scope and functions. Each of the port drug administrations shall, in accordance with the port within
its jurisdiction, form a working relationship with only one port drug inspection office of import record keeping and port inspection.
Their specific jurisdictional scope and functions shall be carried out in conformity with the Distribution Form of Drug Import Ports,
the Drug Inspection Administrations and Drug Inspection Offices under Centralized Management as formulated by the State Food and
Drug Administration. (Annex 4)

The new Catalogue of Import Drugs shall be promulgated by the State Food and Drug Administration along with the General Administration
of Customs. Before the new Catalogue is promulgated, the jurisdictional scope of import drugs shall be carried out in conformity
with Annex 1, namely the Import Drug Management Catalogue – in the Notice on the Several Issues concerning Strengthening the Administration
on Imported Drugs (GuoYaoGuoZhu [2002] No. 622).

The jurisdictional scope of narcotics and psychotropic drugs shall be still according to Annex 1, namely Catalogue of Narcotics under
Control and Annex 2, namely Catalogue of Psychotropic Drugs under Control in the Notice on the Relevant Issues concerning Intensifying
the Import and Export of Narcotics and Psychotropic Drugs (GuoYaoGuanZhu [2001] No. 585).

A uniform seal shall be used in the record-keeping of drug import, the name of which is “The Special Seal for the Drug Import Record
Keeping of Drug Administration”. The “Special Seal” shall be made by carving and issued by the State Food and Drug Administration,
which shall be used by a port drug administration in conducting the drug import record keeping. Among the special seals, “The Special
Seal for the Drug Import Record Keeping of the State Food and Drug Administration” held by the State Food and Drug Administration
shall be effective in all ports, through which drugs are permitted to import. The models of all seals are indicated in Annex 5.

For the commodities listed in the scope of commodity codes in the Catalogue of Imported Drugs, the customs shall conduct the procedures
for the customs declaration and clearance upon the strength of the Customs Clearance Permit for Imported Drugs sealed with the Special
Seal for the Drug Import Record Keeping of Drug Administration issued by the department authorized by the State Food and Drug Administration
and the relevant other instruments. The Customs Clearance Permit for Imported Drugs shall only be used by the port customs indicated
in the Customs Clearance Permit for Imported Drugs. The system of one permit for one batch shall be adopted and any modification
may not be made to the content in the permit. If it is necessary to modify the content of the permit, the permit shall be renewed
and reissued. The customs shall still implement the relevant regulations concerning the supervision over and administration of narcotics
and psychotropic drugs of the State Food and Drug Administration and the General Administration of Customs.

After the Measures come into effect, any of the aforesaid commodities, for which a customs declaration for import has been filed,
but the port drug administration refuses to offer Customs Clearance Permit for Imported Drugs, the customs may, upon the strength
of the applications of the consignees or agents, directly handle the formalities for returning the commodities according to the relevant
regulations.

10.

In light of Article 10 of the Measures, the destination shall be one of the ports specified as customs clearance ports in Beijing,
Shanghai and Guangzhou.

Where the biological products as provided in Article 10 of the Measures are vaccines, blood products and diagnostic reagents used
for blood screening (See Annex 6 for the catalogue), the State Food and Drug Administration shall, in accordance with the actual
circumstances, modify this catalogue in time.

11.

Considering the special requirements for the storage of the drugs listed in Annex 6, before the special warehouse of the customs are
determined, the temporary formalities for the import record keeping shall be carried out when these types of biological products
are imported. A port drug administration shall, after it receives an Application for the Inspection on Imported Drugs and the relevant
materials, conduct examination and inspection according to Article 16 of the Measures before issuing Customs Clearance Permit for
Imported Drugs and the special Notice on Port Inspection on Imported Drugs (See Annex 7). After the port drug inspection office has
taken samples, the port drug administration shall seal up all the drugs. The drugs may be unsealed and permitted to enter China to
be sold and used after the drugs are deemed as qualified upon inspection.

12.

With regard to the human serum albumin among the six types of biological products listed in Annex 6, the Drug Inspection Offices of
Beijing, Shanghai or Guangdong shall be responsible for taking samples and making port inspection in light of the different destinations
of the product. Where the destination of the other types is Beijing, the National Institute for the Control of Pharmaceutical and
Biological Products shall be responsible for taking samples and making port inspection. The port drug administration shall issue
a Notice on Port Inspection on Imported Drugs to the National Institute for the Control of Pharmaceutical and Biological Products.
Where the destination is Shanghai or Guangzhou, Shanghai Drug Inspection Office or the Drug Inspection Office of Guangdong Province
shall be responsible for taking samples, and the National Institute for the Control of Pharmaceutical and Biological Products shall
be responsible for the port inspection. The port drug administration shall issue a special Notice on Port Inspection on Imported
Drugs to Shanghai Drug Inspection Office or the Drug Inspection Office of Guangdong Province, which shall, within 2 days after it
has taken samples, send the samples to the National Institute for the Control of Pharmaceutical and Biological Products.

The State Food and Drug Administration shall, according to the port drug inspection offices’ capacities to test the biological products,
authorize them to undertake port inspection on other biological products. With regard to the biological products other than the circumstances
as prescribed in Article 10 of the Measures, the destination port drug inspection offices shall strictly conduct port inspection
in accordance with the registered standards of the imported drugs. In case a port drug inspection office lacks such inspection conditions
or capacities, it may entrust the National Institute for the Control of Pharmaceutical and Biological Products to conduct the inspection.

13.

The port drug administrations shall exercise the functions as prescribed in the Measures as of January 1st, 2004, shall formally accept
the applications for the drug import record keeping, and shall handle the relevant matters on the Customs Clearance Permit for Imported
Drugs. At the same time, the port drug inspection offices shall stop their former function of accepting inspection applications.
The import entities shall file applications to the port drug administrations for the drug import record keeping as of January 1st,
2004.

Where a Customs Clearance Permit for Imported Drugs issued prior to December 31st, 2003 is still within its valid period, it may be
used continuously. Where the valid period expires and the party concerned fails to go through the formalities for customs declaration
and clearance, the Customs Clearance Permit for Imported Drugs shall be replaced by a new one in the port drug administration.

14.

With a view to ensuring the quality and standardization of the work of drug import record keeping, the State Food and Drug Administration
has formulated the Guidelines for Drug Import Record Keeping (Annex 8), all port drug administrations shall comply with them in doing
the specific work of drug import record keeping.

15.

Drug import record keeping is a new task undertaken by all port drug administrations. All port drug administrations shall study the
relevant laws, regulations and knowledge, and shall in time submit to the State Food and Drug Administration the problems found in
handling import record keeping. The port drug administrations and the customs shall strengthen the communication, coordination and
cooperation between them, and ensure that the work of import record keeping run smoothly.

16.

The provisions on the examination and approval of the import of preventive biological products and blood products as prescribed in
the Administrative Measures for Imported Drugs shall be repealed as of January 1st, 2004.

17.

The Notice on Intensifying the Administration on the Import of Drugs (GuoYaoGuanZhu [2002] No. 622) and the Notice on Distributing
the Notice of the State Food and Drug Administration on the Relevant Problems concerning Strengthening the Administration on the
Import of Drugs (ShuFa [2001] No. 71) shall be repealed as of January 1st, 2004.

Please implement the above-mentioned provisions.

Annexes:

The Name List of Drug Import Ports (Omitted)

The Name List of the Port Drug Administrations (Omitted)

The Name List of the Port Drug Inspection Offices (Omitted)

The Distribution Form of Drug Import Ports, the Drug Inspection Administrations and Drug Inspection Offices under Centralized Management
(Omitted)

The Styles of the Special Seals for Drug Import Record Keeping (Omitted)

The Catalogue of the Biological Products Proscribed by the State Food and Drug Administration (Omitted)

Notices on Port Inspection on Imported Drugs (Omitted)

Guidelines for the Drug Import Record Keeping (Omitted)

State Food and Drug Administration
2003-11-19

MEASURES FOR ADMINISTRATION OF CHINESE-FOREIGN COOPERATIVE DISTRIBUTION ENTERPRISES

e02176

Ministry of Culture, Ministry of Commerce

Order of Ministry of Culture, Ministry of Commerce of the People’s Republic of China

No. 28

Measures for Administration of Chinese-foreign Cooperative Audio-video Product Distribution Enterprises are hereby promulgated and
shall come into force as of January 1, 2004. Measures for Administration of Chinese-foreign Cooperative Distribution Enterprises
promulgated on December 10, 2001 shall be repealed concurrently.

Sun JiaZheng, Minister of Ministry of Culture

Lu FuYuan, Minister of Ministry of Commerce

December 8th, 2003

Measures for Administration of Chinese-foreign Cooperative Distribution Enterprises

Article 1

The present Measures are hereby formulated in accordance with the law of the People’s Republic of China on Chinese-foreign Cooperative
Enterprises, the Regulations on the Administration of Audio-video Products and other laws and regulations for the purpose of enlarging
foreign culture exchange and economic cooperation as well as strengthening the administration on Chinese-foreign Cooperative Audio-video
products distribution enterprises.

Article 2

The present Measures shall be applicable to the Chinese-foreign cooperative audio-video product distribution enterprises established
in the territory of china.

The term of Chinese-foreign cooperative audio-video product enterprise refers to, in light of the principles of equality and mutual
benefits, upon the approval of relevant departments of the Chinese government, foreign enterprises and other economic organizations
or individuals (hereinafter referred to as the foreign cooperator) cooperatively established inside the territory of the People’s
Republic of China with Chinese enterprises and other economic organizations (hereinafter referred to as the Chinese cooperators)to
engage in the business of wholesale, retail and lease of the audio-video products.

The term “the audio-video products” refers to audio tapes, video tapes, gramophone records, laser audio discs, and laser video discs,
etc. on which contents are recorded.

Article 3

The Chinese-foreign cooperative audio-video product distribution enterprise must abide by the related laws and regulations, and disperse
thoughts, ethics, science and technology, cultural knowledge that are beneficial to the development of economy and the social progress.

Article 4

The legitimate business activities of the Chinese-foreign cooperative Audio-video Product Distribution Enterprises and the legitimate
rights and interests of the cooperators shall be subject to the protection of Chinese law.

Article 5

Ministry of Culture and Ministry of Commerce, as well as their authorized competent departments of culture and commerce at the provincial
level shall be responsible for the examination and approval of and supervision over the Chinese-foreign cooperative audio-video product
distribution enterprises.

The responsible departments of culture and the responsible departments of commerce of the local people’s governments at the county
level or above shall, in accordance with separate functions and duties, be responsible for the everyday supervision and administration
for the Chinese-foreign cooperative audio-video product distribution enterprises within their own administrative regions.

Article 6

The establishment and development of the Chinese-foreign cooperative Audio-video Product Distribution Enterprises shall follow the
development planning of the market of the audio-video market.

Article 7

The Chinese cooperator and foreign cooperator applying for establishing a Chinese-foreign cooperative audio-video product distribution
enterprises shall have the corresponding capacity for establishing the audio-video product distribution enterprises; and shall be
capable for bearing the civil responsibility independently and have no illegal records during the three consecutive years before
the application.

Article 8

The Chinese-foreign cooperative audio-video product distribution enterprises shall meet the following conditions:

(1)

Having independent status as a legal person;

(2)

Meeting the requirements of the state on the establishment of the audio-video product distribution enterprises;

(3)

Having funds adequate to its operation scale;

(4)

The equity owned by the Chinese cooperator is no less than 51 percent; and

(5)

The term of cooperation shall not exceed 15 years.

Article 9

Where Chinese-foreign cooperative audio-video product distribution enterprises apply for engaging in the chain operation of the audio-video
products or for operating the audio-video products by using the information in network, it shall go through the procedures for examination
and approval in accordance with the provisions of the state on the chain operation of the audio-video products and on operating the
audio-video products by using the information in network.

Article 10

Where a Chinese cooperator takes the stated owned assets as cooperated term, it shall get the approval of the superior state-owned
assets supervision and administration departments, in accordance with the related provisions of the evaluation and administration
for the stated-owned assets, and the evaluation institution specified by the state-owned assets supervision and administration departments
shall valuate for the stated-owned assets as the cooperated term. The valuation result shall be defined by the corresponding state-owned
assets supervision and administration departments in accordance with the provisions of the administration of state-owned assets.

Article 11

The establishment of the Chinese-foreign cooperative audio-video product distribution enterprises of audio-video products engaging
in the wholesale business of the audio-video products shall be handled in accordance with the following procedures:

(1)

The Chinese cooperator shall apply to the competent departments of culture at the province, autonomous regions and municipalities
directly under the Central Government where the distribution Chinese-foreign cooperative Audio-video Product Distribution Enterprises
of audio-video products to be established, and the mentioned above departments shall submit to Ministry of Commerce for making program,
examination and approval. Ministry of Culture shall make the decision of approval or not within 30 working days; the reason thereof
shall be stated in writing if the application is not approved.

(2)

The Chinese cooperator shall, within 6 months as of the date when the project initiation is approved by Ministry of Culture, apply
to the competent departments of commerce of the province, autonomous regions and municipalities directly under the Central Government
where the audio-video product distribution enterprises to be established is located for the establishment of such an enterprise.
The mentioned above departments shall submit to Ministry of Commerce for examination and approval after its check and approval. Ministry
of Commerce shall make a decision of approval or not within 30 working days. Upon the approval, an Approval Certificate for Enterprise
with Foreign Investment shall be issued to the applicant. If not, the reasons thereof shall be stated in writing.

(3)

The Chinese cooperator shall, within 30 days as of the date of receiving the Approval Certificate for Enterprise with Foreign Investment
issued by the Ministry of Commerce, apply to the Ministry of Culture on behalf of the Chinese-foreign cooperative audio-video product
distribution enterprises to be established for the Operation Permit for Audio-video Products upon strength of the approval documents
on project initiation issued by the Ministry of Culture and the Approval Certificate for Enterprises with Foreign Investment issued
by the Ministry of Commerce.

(4)

The Chinese cooperator shall, within 30 days as of the date of receiving the Operation Permit for Audio-video Products issued by Ministry
of Culture, and upon strength of the Operation Permit for Audio-video Products and the Approval Certificate for Enterprise with Foreign
Investment, go through the registration procedures and obtain the Business License of an Enterprise Legal Person in compliance with
the provisions of the administration for industry and commerce.

Article 12

the Chinese cooperator shall submit the following documents to Ministry of Culture while proposing the application for project initiation:

(1)

The application for project initiation which shall specify the name, address, scope of business, the source of the invested funds
and its amount of the Chinese-foreign cooperative audio-video product distribution enterprises to be established;

(2)

The project proposals and feasibility study report programmed and admitted commonly by both/all cooperator;

(3)

The business license or certification of registration, certification of qualification by every cooperated cooperator and the valid
certification of the legal representatives;

(4)

The appraisal and confirming documents issued by the state-owned assets administration departments of the state-owned assets to be
invested by the Chinese cooperator (if the Chinese cooperator take the state-owned assets as a means of cooperation); and

(5)

Other documents as required by Ministry of Culture.

Article 13

the Chinese cooperator shall submit the following documents to Ministry of Commerce while proposing the application for establishing
the Chinese-foreign cooperative audio-video product distribution enterprises:

(1)

An application for establishment;

(2)

A project proposals or feasibility study report programmed and admitted commonly by every cooperated cooperator, and approved by Ministry
of Culture;

(3)

The approval documents for project initiation of the cooperation project issued by Ministry of Culture

(4)

The contract and articles of association of the Chinese-foreign cooperative audio-video product distribution enterprises to be established
signed by the representatives authorized by both/all cooperators;

(5)

The confirming documents issued by the state-owned assets administration departments of the state-owned assets on appraising report
of the state-owned assets to be used as investment by the Chinese cooperator (if the Chinese cooperator take the state-owned assets
as a means of cooperation);

(6)

The cooperators business license or certification of registration, credit certificates and the valid certificates of the legal representatives;

(7)

The notice of pre-approval for the name of the cooperative enterprise to be established;

(8)

The name list of the chairman, vice chairmen and members of the board of directors or of the joint management committee of the cooperative
enterprises, which is determined by both/all cooperators through negotiation; and

(9)

Other documents as required by Ministry of Commerce.

Article 14

In case of any major change of Chinese-foreign cooperative audio-video product distribution enterprises, such as change of the investors,
adjustment of the interest proportion of the investors, change of the investment amount or means of cooperation, change of scope
of business, change of operational period, or change of establishment of the branches, the enterprise shall go through the procedures
for approval in accordance with Article 11 of the present Measures.

Other changes of the Chinese-foreign cooperative audio-video product distribution enterprises shall, in accordance with related provisions
of the foreign investment enterprises, be submitted to the Ministry of Commerce for approval or record. In the case of the change
of legal address, legal representative, the main responsible person and termination of the business activity due to expiry of operational
period, the Chinese-foreign cooperative audio-video product distribution enterprises shall also report to Ministry of Culture for
record within 30 days.

Article 15

The establishment of a Chinese-foreign cooperative audio-video product distribution enterprises that engages in the retail and leasing
business, shall be handled in accordance with the following procedures:

(1)

The Chinese cooperator shall apply to the competent departments of culture at the level of province where the Chinese-foreign cooperative
audio-video product distribution enterprises to be established is located, and then the competent departments of culture shall make
the decision on whether to approve the project initiation within 30 working days; if the application is rejected, the reasons for
it shall be stated in writing.

(2)

The Chinese cooperator shall, within 6 months as of the date when the project initiation is approved by the competent departments
of culture at provincial level, apply to the competent departments of commerce at provincial level where the Chinese-foreign cooperative
audio-video product distribution enterprises to be established is located for the establishment of such an enterprise, and then the
competent departments of commerce at provincial level shall, within 30 working days, make a decision on whether to approve or not;
the reason for it shall be stated in writing explanation if the application is rejected.

(3)

The Chinese cooperator shall, within 30 days as of the date of receiving the Approval Certificate for Enterprises with Foreign Investment
issued by the competent departments of Commerce at the provincial level, apply to the competent department of culture at the provincial
level on behalf of the Chinese-foreign cooperative audio-video product distribution enterprise to be established for the Operation
Permit for Audio-video Products upon strength of the approval documents on project initiation issued by the competent department
of culture at the provincial level and the Approval Certificate for Enterprises with Foreign Investment issued by the competent department
of commerce at the provincial level.

(4)

The Chinese cooperator shall, within 30 days as of the date of receiving the Operation Permit for Audio-video Products issued by the
competent departments of culture at provincial level, and upon strength of the Operation Permit for Audio-video Products and the
Approval Certificate for Enterprises with Foreign Investment, go through the registration procedures and obtain the Business License
of an Enterprise Legal Person in compliance with the provisions on the industry and commerce administration,

Article 16

The Chinese cooperator shall submit the following documents to the competent departments of culture at the provincial level while
proposing the application for project initiation:

(1)

The application for project initiation, which shall specify the name, address, scope of business, the source of the investment funds
and its amount of the Chinese-foreign cooperative audio-video product distribution enterprises to be established;

(2)

The project proposals or feasibility study report worked out or recognized by both/all cooperators;

(3)

The business license or certificates of registration, credit certificates of every cooperator and the valid certificates of the legal
representatives;

(4)

The confirmation documents issued by the administrative departments of the state-owned assets on the appraising report of state-owned
assets to be used as investment by the Chinese cooperator (if the Chinese cooperator take the state-owned assets as a means of cooperation);
and

(5)

Other documents as required by the competent departments of culture at the provincial level.

Article 17

The Chinese cooperator shall submit the following documents to the competent departments of commerce at provincial level while proposing
the application for establishing the Chinese-foreign cooperative audio-video product distribution enterprises:

(1)

An application for establishment:

(2)

A project proposals and feasibility study report worked out and recognized by both/all cooperators, and approved by the competent
departments of commerce at the provincial level;

(3)

The approval documents on project initiation under cooperation issued by the competent departments of commerce at the provincial level;

(4)

The contract and articles of association of the Chinese-foreign cooperative audio-video product distribution enterprises to be established,
which are executed by the representatives authorized by both/all cooperators.

(5)

The confirmation documents issued by the state-owned assets administration departments on the appraising report and the state-owned
assets to be used as a means of investment by the Chinese cooperator (if the Chinese cooperator take the state-owned assets as a
means of investment);

(6)

The business license or registration certificates, credit certificates of the cooperators and the valid certificates of the legal
representative;

(7)

The notice of pre-approval for the name of the cooperative enterprises to be established;

(8)

The name list of the chairmen, vice-chairmen and members of the board of directors or of the joint management committee of the cooperative
enterprise, which is determined by both/all cooperators through negotiation; and

(9)

Other documents as required by the competent departments of commerce at the level of province.

Article 18

In case of any major change in a Chinese-foreign cooperative audio-video product retail or leasing enterprises, including change of
any investor, adjustment of the interest proportion of the investors, change of the investment amount or means of cooperation, change
of the business scope, change of the operational period or the establishment of the branches, the enterprise shall go through the
procedures for approval in accordance with article 15 of the Measures hereby.

In the case of other changes of the Chinese-foreign cooperative audio-video product distribution enterprises, the enterprise shall,
in accordance with related provisions of the enterprises with foreign investment, report to the competent departments of commerce
at the provincial level for approval or record.

In the case of the change of legal address, legal representative, the main responsible person and termination of the business activity
due to expiry of operational period, the Chinese-foreign cooperative audio-video product distribution enterprises shall report to
the competent departments of culture at the provincial level for putting on records within 30 days.

Article 19

The Chinese-foreign cooperative audio-video product distribution enterprises shall engage in the business activities of audio-video
products within the approved scope of business.

Article 20

No Chinese-foreign cooperative audio-video product distribution enterprises may operate any audio-video products, which contains any
contents prohibited by the state from being dispersed; or which is published by non audio-video publishing entities or reproduced
by non audio-video product reproducing entities; or which is imported without the approval of Ministry of Culture; or which infringes
on the copyright of others.

Article 21

No Chinese-foreign cooperative audio-video product distribution enterprises may engage in the business of importing the audio-video
products

Article 22

Whoever, without the approval of the Ministry of Culture and the Ministry of Commerce and without authorization, establishes Chinese-foreign
cooperative audio-video product distribution enterprises, or engages in the business of distributing audio-video products with foreign
investment without approval, shall be punished by related departments of the state according to law. And the relevant person liable
shall be prosecuted for liabilities.

Article 23

Where the investors of Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan of China establish
the distribution Chinese-foreign cooperative audio-video product distribution enterprises of the audio-video products within other
provinces, autonomous regions and municipalities directly under the Central Government, it shall implement by reference to the present
measures hereby.

Article 24

The power to interpret the present measures remains with the Ministry of Commerce and Ministry of Culture.

Article 25

The present measures and the annexes shall be effective as of the date of January 1, 2004; The administrative measures of Chinese-foreign
cooperative audio-video product distribution enterprises promulgated on December 10, 2001 by Ministry of Culture and Ministry of
Foreign Trade and Economic Cooperation shall be repealed simultaneously.

Annex:

In order to promote closer economic and trade relations between Hong Kong, Macao and the mainland, and encourage the service providers
in Hong Kong and Macao to establish the audio-video product distribution enterprises in the mainland, in accordance with the arrange
on establishing closer economic and trade relations between Hong Kong and the mainland, as well as the arrange on establishing closer
economic and trade relations between Macao and the mainland upon the approval of the State Council, the following special provisions
shall be made hereby on the related issues that the service providers in Hong Kong and Macao to establish the audio-video product
distribution enterprises prescribed by measures for administration of distribution Chinese-foreign cooperative audio-video product
distribution enterprises.

From the date of January 1, 2004, the providers with service in Hong Kong and Macao are permitted to establish the Chinese-foreign
cooperative audio-video product distribution enterprises in the form of equity joint ventures in the mainland.

The providers with service in Hong Kong and Macao may possess the majority of the shareholders, but not more than 70 percent.

The providers with service in Hong Kong and Macao may possess the proportion of rights and interests not more than 70 percent in the
contractual joint ventures.

Other provisions on the providers with service in Hong Kong and Macao to establish the Chinese-foreign cooperative audio-video product
distribution enterprises in the mainland shall be governed by administrative measures of Chinese-foreign cooperative audio-video
product distribution enterprises. While other provisions on the providers with service in Hong Kong and Macao to establish the Chinese-foreign
cooperative audio-video product distribution enterprises in the mainland shall be implemented by reference to administrative measures
of Chinese-foreign cooperative audio-video product distribution enterprises.

The service providers in Hong Kong and Macao defined in the provisions shall comply with the requests of related provisions and the
definition specified by the arrange on establishing closer economic and trade relations between Hong Kong and the mainland, as well
as the arrange on establishing closer economic and trade relations between Macao and the mainland separately.

The present provisions shall be interpreted by Ministry of Commerce and Ministry of Culture in accordance with respective functions.

Ministry of Culture, Ministry of Commerce
2003-12-08

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON AUDIT OF E-INFORMATION OF SPECIAL TAX RECEIPT OF EXPORTS

State Administration of Taxation

Circular of the State Administration of Taxation on Audit of E-information of Special Tax Receipt of Exports

No.1392 [2003] of State Administration of Taxation

December 30, 2003

The departments and offices of all the provinces, autonomous regions, municipalities directly under the Central Government, and cities
under separate State Planning:

In order to ensure the implement of the spirit of the provision promulgated on reform of the export refunds by the State Council and
to increase the efficiency of the audit of export refunds, the State Administration of Taxation decided to, on the base of the improvement
and stable functioning of the second phase of the Gold-tax project, cancel the audit of the E- information of the special tax warrant
of exports and the list of tax payment certificate (hereinafter referred to as special tax receipt )when the competent tax authorities
run the audit procedure of the export refunds of the exports declared at the custom after the date of January 1, 2004(subject to
the date signed in the Bill of Entry) except the items listed in the Article 2 of this circular. We hereby give our notice as follows
regarding the concerning matters:

To the exports declared at the custom after January 1, 2004, the competent tax authorities shall, in the course of running the audit
procedure of export refunds, verify the exports bill of entry, the foreign exchange acceptance verification in export trade, VAT
invoice and other paper documents and the related E-information for export refunds and shall verify the paper documents of the special
tax receipt despite the E-information of it.

To the following listed 3 sorts of exports, the competent export refunds authorities shall verify the special tax receipt declared
by the export units and the E-information from the State Administration of Taxation simultaneously. The procedures of export refunds
shall be run follow the current provisions after the verification.

(1)

The VAT invoice was made before August 1, 2003,

(2)

The VAT invoice or the normal invoice of purchasing is out of the scope of supervision system of the VAT control and audit

(3)

consumption tax deduct

From January 1, 2004, the competent tax authorities charging the offering companies shall not type in the E-information of the special
tax receipt to the goods that the offering units make VAT invoice using VAT anti-forging and control system for the export units.
The competent tax authorities charging the offering companies shall type in and upload the E-information of the special tax receipt
of the VAT invoice, the normal invoice out of the scope of the supervision system of the VAT control and audit and the goods the
shall pay the consumption tax. The State Administration of Taxation will set out the E-information of the mentioned special tax receipt
monthly.

The time of revoking the paper documents of special tax receipt shall be notified separately later.

State Administration of Taxation
2003-12-30

INTERIM REGULATIONS ON THE MANAGEMENT OF INTERNATIONAL NETWORKING OF COMPUTER INFORMATION

Interim Regulations of the PRC on the Management of International Networking of Computer Information

Article 1 These Regulations are promulgated hereby with the aim of strengthening management of international networking of computer
information and promoting the healthy development of international exchange of computer information.

Article 2 International networking of computer information within the People’s Republic of China shall be carried out in accordance with stipulations
in these Regulations.

Article 3 Denotations of the following terms as used in these Regulations:

(1) International networking of computer information (hereinafter referred to as international networking) refers to the linking of
networks of computer information within the People’s Republic of China to foreign networks of computer information for the purpose
of international exchange of information.

(2) Inter-connected networks refers to networks of computer information directly linked to international networking. Inter-connected
units refer to units in charge of operation of inter-connected networks.

(3) Insertion networks refer to networks of computer information that are inserted into inter-connected networks for the purpose of
international networking. Insertion units refer to units in charge of operation of insertion networks.

Article 4 The State shall implement the principle of unified planning, unified standards, and level-by-level management of international networking
to promote its development.

Article 5 The Information Working Group of the State Council (hereinafter referred to as the Leading Group) shall take charge of coordinating
and solving problems concerning international networking.

The office of the Leading Group shall work out, in line with stipulations in these Regulations, specific management rules to clarify
the rights, obligations and responsibilities of units providing international output and input channels, inter-connected units, insertion
units, and customers. It shall also take charge of examination and supervision of international networking.

Article 6 To carry out international networking of computer information, the output and input channels provided by the Ministry of Posts and
Telecommunications in its public telecommunication network shall be used.

No units or individuals shall establish or use other channels for international networking on their own accord.

Article 7 Inter-connected networks that have already been established shall be readjusted and put into management by the Ministry of Posts
and Telecommunications, the Ministry of Electronics Industry, the State Education Committee, and the China Academy of Sciences.

Establishment of new inter-connected networks shall be reported to the State Council for approval.

Article 8 Insertion networks shall carry out international networking via inter-connected networks.

Insertion units that plan to engage in the business of international networking shall apply for license for doing the business of
international networking from departments or units in charge of inter- connected units empowered to handle applications for engagement
in the business of international networking. Those that have not obtained these licenses shall not engage in activities related to
international networking.

Insertion units that plan to engage in activities of a non-business kind shall report for examination and approval to departments
or units in charge of inter-connected units empowered to handle applications for these activities. Those that have not obtained approval
shall not carry out international networking via inter-connected networks.

Those applying for licenses for doing businesses related to international networking or reporting for examination and approval shall
provide information on the character of their computer information, scope of information, and location of their host computers.

The form of the license for doing businesses relationed to international networking shall be produced by the Leading Group in a unified
way.

Article 9 Insertion units doing businesses related to international networking or engaged in non-business activities related to international
networking shall all meet the following requirements:

(1) They shall be legal person enterprises or institutions set up in accordance with law.

(2) They shall have corresponding computer networks, equipment, and relevant technical and management personnel.

(3) They shall have perfect safety and security systems and measures for technical protection.

(4) They shall meet other requirements stipulated in laws or raised by the State Council.

Insertion units doing businesses related to international networking that no longer meet requirements in clauses (1) and (2) due to
changes in their situation shall have their licenses revoked by the departments that have originally issued these licenses, and insertion
units engaged in non-business activities related to international networking that no longer meet the requirement in clause (1) due
to changes in their situation shall have their qualifications for international networking nullified by the departments that have
originally granted the approval.

Article 10 International networking of the networks of computer information used by individuals, legal persons, and other organizations (hereinafter
referred to as customers) shall be carried out via insertion networks.

If the computers or networks of computer information as referred in the preceding clause are to be inserted into networks, consent
shall be won from insertion units, and registration procedures shall be gone through.

Article 11 Units providing international input and output channels, inter-connected units, and insertion units shall set up corresponding network
management centres, enhance management of themselves and their customers according to law and relevant stipulations of the State,
do a good job in the safety management of network information, and provide excellent and safe services to customers.

Article 12 Inter-connected units and insertion units shall take charge of technical training and management education related to international
networking for themselves and for their customers.

Article 13 Units and individuals doing businesses related to international networking shall abide by relevant laws and administrative decrees
of the State, strictly implement the system of safety and security, refrain from illegal and criminal activities that endanger national
security and leak State secrets through international networking, and stay away from producing, consulting, duplicating, or spreading
information that interrupts social order or pornographic information.

Article 14 Those that violate stipulations in articles 6, 8 and 10 shall be ordered by public security departments to stop networking, with
a warning issued to them. They may also be imposed a fine below 15,000 yuan. If they have earned any illegal incomes, these incomes
shall be confiscated.

Article 15 Those that violate these Regulations and violate stipulations in other laws or administrative decrees shall be punished according
to the relevant laws and administrative decrees. If the cases are so serious as to be criminal, criminal responsibilities shall be
affixed.

Article 16 Networking of computer information with Taiwan, Hong Kong and Macao shall be carried out with reference to these Regulations.

Article 17 These Regulations shall take effect on the date of promulgation.

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON DISTRIBUTING THE SYSTEM OF THE INDIRECT DECLARATION AND VERIFICATION OF INTERNATIONAL REVENUE AND EXPENDITURE STATISTICS (FOR TRIAL IMPLEMENTATION)

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Distributing the System of the Indirect Declaration and Verification of
International Revenue and Expenditure Statistics (for Trial Implementation)

HuiFa [2003] No.1

January 3, 2003

The branches and foreign exchange administration departments of the State Administration of Foreign Exchange (“SAFE”) in all provinces,
autonomous regions, and municipalities directly under the Central Government, the branches in Shenzhen, Dalian, Qingdao, Xiamen,
and Ningbo:

With a view to promoting the orderliness and effectiveness of the indirect declaration and verification of international revenue and
expenditure statistics, promoting the regularization and standardization of the verification work, the SAFE has formulated System
for the Indirect declaration and Verification of International Revenue and Expenditure Statistics (for Trial Implementation), and
hereby distributes them to you for implementation.

It is desired that you, after receiving the present Circular, will forward it to the sub-branches and the banks (including foreign-funded
banks) within your respective jurisdictions in good time. In case any problem arises in the implementation of the present Circular,
please contact the Department of International Revenue and Expenditure of the SAFE.

Tel: (010) 68402374; 68402146.

Attachment:System for the Indirect Declaration and Verification of International Revenue and Expenditure Statistics (for Trial Implementation)

Chapter I General Provisions

Article 1

The present System have been formulated on the basis of the Measures for the Declaration of International Revenue and Expenditure
Statistics and the Rules for the Implementation thereof as well as the relevant provisions of the Operational Rules for the Statistical
Declaration of International Revenue and Expenditure through Financial Institutions and by taking the practice of work into consideration
for the purpose of ensuring the quality of the data of international revenues and expenditures indirectly reported.

Article 2

Statistical personnel of international revenue and expenditure shall take a true-to-the-fact, serious and responsible attitude in
the work of verification of indirect declaration of international revenue and expenditure (hereinafter referred to as “verification”)
so as to ensure the timeliness, accuracy and comprehensiveness of the data reported. If they find any errors or omissions in their
verification work, they shall demand the entity under verification to put right.

Article 3

Verifications are classified into the non-on-the-spot verification of indirect statistical declaration of international revenue and
expenditure and on-the-spot verification of indirect statistical declaration of international revenue and expenditure.

Non-on-the-spot verification of indirect statistical declaration of international revenue and expenditure (hereinafter referred to
as “non-on-the-spot verification”) refers to that the administrative departments of statistical declaration of international revenue
and expenditure do not have to go to the banks to consult the original documents of transaction, instead, they make verifications
according to the connections and logical relationship between the relevant information reported by the banks.

On-the-spot verification of indirect statistical declaration of international revenue and expenditure (hereinafter referred to as
“on-the-spot verification”) refers to that the administrative departments of statistical declaration of international revenue and
expenditure go to the site of the banks or reporters of statistics to consult the original documents of transaction and other relevant
documents and verify the reported information.

Article 4

The principles for the verification of indirect statistical declaration of international revenue and expenditure are:

The foreign exchange administrations on various levels shall verify the indirect statistical declaration of international revenue
and expenditure submitted by the banks or other reporters within their jurisdictions;

The foreign exchange administrations on various levels are responsible for making irregular sample tests over the business of indirect
statistical declaration of international revenue and expenditure of the foreign exchange administrations on lower levels;

The verification work shall be combined with the specific positions of the staff members.

Article 5

Foreign exchange administrations shall establish archivist files of verification, properly keep the relevant verification materials
incurred from non-on-the-spot and on-the-spot verifications.

Chapter II Non-on-the-spot Verification

Article 6

Non-on-the-spot verifications mainly include the verification of the electronic data in the foreign exchange administration version
of the monitoring system of international revenue and expenditure statistics (hereafter “foreign exchange administration version”)
and the check between the electronic data and the hardcopy declaration documents (hereafter “the sheet preserved by the foreign exchange
administration”).

Article 7

The verification of the electronic data in the monitoring system of international revenue and expenditure statistics mainly include
the verification of the precision of the electronic data in the foreign-related revenue and expenditure declaration documents, the
check between foreign-related revenue declaration documents and foreign-related revenue statistic reports, the check between the
daily settlement books of foreign-related payments and the declaration documents of foreign payments, the verification of the timeliness
of the input and transmission of electronic data of the banks, the check of consistency between the basic data and summarized data
on the same level, the verification of the implementation of the rule of “declare first, then make payment”, and the verification
of the forms of basic information of the entities, etc.

Article 8

Foreign exchange administrations shall make a sum-by-sum check of the electronic data declared by the banks within their respective
jurisdictions every ten days, and make irregular sample tests of the electronic data declared by the foreign exchanges on the next
lower level. Foreign exchange administrations shall note down or print all the problems disclosed in the verifications, and inform
the verified entity of the result of verification. The verified entities shall feed back their opinions within the prescribed time
limit.

Article 9

Foreign exchange administrations shall determine the scope of verification of the electronic data of foreign-related revenue declarations.

Select the types of declaration documents from the basic system of the monitoring system of international revenue and expenditure
statistics that need to be verified, and then enter into the interface of declaration documents;

Key in such factors as the area code, bank code, and the time period of inward and outward remittances into the interface of the declaration
documents, and then choose the “search” key;

After entering into the search interface, select the factors of verification for search, and after the results of search are displayed,
select the “print” key, and then you’ll enter into the printing interface. Select the “output” key, and select the document type
of EXCEL, key in the file name, and then select the “save” key. Thus, the data is changed into the EXCEL format.

Article 10

Foreign exchange administrations shall verify the precision of the electronic data in the foreign-related revenue and expenditure
declarations according to the following requirements:

Verifying whether the elements of declaration are complete and standard, including the declaration numbers, currency and amount of
revenue and expenditure, name of the payers and payees within the territory, (domestic) codes of the payers and payees, the country
(region) and the code thereof, domestic accounts for payment and receipt, amount of spot foreign exchange or settled (or purchased)
foreign exchange, other amounts, ways of settlement, transaction codes, transaction remarks, etc. in particular, verifying the declaration
information whose country displayed is “China”.

Verifying whether logical relationship exists between the (overseas) payers and payees and the country (region) and the codes thereof,
between the accounts of receipt and payment and the ways of spot foreign exchange or settlement (purchase) of foreign exchange, between
currencies and the corresponding countries, between the code of transaction and the transaction remarks, etc.

Verifying the precision of the selection of the types of declaration documents according to the contents of declaration.

Checking whether the statistical reports of foreign payment within the quotas (except those under the item of writing-off for import)
have been completed in accordance with the relevant operational rules.

The wrong or doubtful data found in the process of verifications shall be registered (see annexed form).

Article 11

Foreign exchange administrations shall check the foreign-related revenue declaration documents against the foreign-related revenue
statistical reports.

The check shall be done in the “search” functions of the basic system within the monitoring system of international revenue and expenditure
statistics. The search shall include three inconsistencies: the foreign-related revenue declaration documents inconsistent with revenue
statistical reports, the statistical reports that want foreign-related revenue declaration documents, and the declaration documents
that want foreign-related revenue statistical reports. The inconsistent declaration information shall be printed for keeping purposes,
and shall be informed to the banks so as to find out the why they have happened.

Article 12

Foreign exchange administrations shall make checks between daily settlement books of foreign payments and the declaration documents
of foreign payments.

The foreign payment declaration documents include forms of writing off foreign exchange paid for imports (to be used as declaration
documents), declaration documents of foreign payment for non-trade (including capital) (to entities), declaration documents of foreign
payments (to individuals), foreign payments within quota (to entities) and foreign payments within quota (to individuals). The data
are taken from the summarization system of the monitoring system of international revenue and expenditure statistics (foreign exchange
administration version). The data in the daily settlement books of foreign payments are taken from the basic system of the monitoring
system of international revenue and expenditure statistics (foreign exchange administration version).

The check shall mainly cover:

a. whether the subject of declaration has filled in the declaration documents of foreign payments truthfully, timely, and completely;

b. whether the banks that handled the foreign payment businesses have made the daily settlement books of foreign payments according
to the operational rules.

The logical relationship between the declaration documents of foreign payments and the data in the daily settlement books of foreign
payments shall meet the following requirements:

[amount in the forms of writing off foreign exchange paid for imports (to be used as declaration documents) + the amount in the declaration
documents of foreign payments for non-trade (including capital) + the amount in the declaration documents of foreign payments (to
individuals)] / [amount in the daily settlement books of foreign payments ?C amount of foreign payments within quota (to entities)
?C amount of foreign payments within quota (to individuals) 100%

Article 13

Foreign exchange administrations shall verify whether the electronic data of the banks have been input and transmitted in a timely
way.

The types of declaration documents to be verified include statistical reports of foreign-related revenues, forms of writing off foreign
exchange paid for imports (to be used as declaration documents), declaration documents of foreign payment for non-trade (including
capital) (to entities), declaration documents of foreign payments (to individuals), and statistical reports of foreign payments within
quota.

The verifications shall be made by using the searching functions in the above-mentioned declaration documents in the basic system
of the monitoring system of international revenue and expenditure statistics. When a date is determined for verifications, the number
of declarations and the amounts of the verification day as mentioned above shall be searched within the subsequent workdays. If neither
the number of declarations nor the amounts searched during the subsequent days are consistent, it would mean that the electronic
data of the banks have not been input and transmitted in a timely way.

Article 14

Foreign exchange administrations shall verify the consistency between the basic data in the monitoring system of international revenue
and expenditure statistics and the summarized data.

It shall be verified whether the number of declarations and amounts of the various declaration documents in the basic system are consistent
with those in the summarized system so that the differences and errors that may exist between the basic data of the various declaration
documents and the summarized data can be found out.

The verification shall be made by means of the Verification Forms of Indirect Declarations of International Revenue and Expenditure
Statistics.

The total of the number of declarations and the total amounts in the basic system of the forms of writing off foreign exchange paid
for imports (to be used as declaration documents) shall be identical to the total number of declarations and the total amounts in
the summarized data and the payments made to the special economic zones (bonded areas, export processing zones, etc.)

Article 15

Foreign exchange administrations shall verify the implementation of the rule of “declare first, then make payments”.

The verifications shall be done through the search functions within the statistical reports of foreign-related revenues in the basic
system of the monitoring system of international revenue and expenditure statistics. On the search interface of the statistical reports
of foreign-related revenues, key in the code of the payee (in the case of entities) or the name of the payee (in the case of individuals)
as specified in the public announcements of “declare first, then make payment”, and at the same time, limit the time for inward payment
to three months, starting on the day when the public announcement becomes effective. What should be noted is that this search is
targeted at all the banks within jurisdiction, and thus the code of financial institution shall be “%”.

Article 16

Foreign exchange administrations shall verify the precision and integrity of all the elements of the electronic information in the
forms of basic information of the entities within the basic system of the monitoring system of international revenue and expenditure
statistics.

The precision of the organizational and institutional codes (codes of the entities) according to the standard codes provided by the
National Organizational and Institutional Code Management Center or the local technical supervision administration. At the same time,
it shall be verified whether there are different names for a same code or different codes for a same name;

The integrity and precision of the contact telephone numbers and the names of the entities shall be verified;

Whether the enterprise attributes and industry attributes have been precisely filled in shall be verified through the function “inconsistency
between the enterprise attributes and industry attributes” in the basic system of the monitoring system of international revenue
and expenditure statistics;

The preciseness of the currency codes and accounts shall be verified through the accounts provided by the enterprises when they make
declarations for receiving and making payments.

Article 17

Foreign exchange administrations shall check whether the electronic data in the monitoring system of international revenue and expenditure
statistics and data in the hardcopy declaration documents (the sheet to be kept by the foreign exchange administrations), including
whether the data are in consistency with each other, whether there exists any omission of items or falsely filled items, and whether
there are no electronic data for the hardcopy declaration documents. Foreign exchange administrations shall, within 15 workdays after
each month ends, have taken random samples from the hardcopy declaration documents of the previous month, and the number of the declaration
documents taken shall not be no less than 5% of the total declaration documents (they shall be randomly taken from all the banks).

The problems found in the verifications shall be recorded down one by one, and the banks concerned shall be informed of the reasons
so as to correct the problems. The verified hardcopy declaration documents shall be marked in a conspicuous way for archivist purposes.

Chapter III On-the-spot Verification

Article 18

Foreign exchange administrations shall arrange for on-the-spot verifications according to the requirements and described below. The
verifications shall be made in accordance with the relevant procedures as provided in the “Procedures of the State Administration
of Foreign Exchange for the Verification and Punishments of International Revenue and Expenditure Statistical Declaration.

The foreign exchange administrations on all levels shall make on-the-spot verifications to at least one bank within their respective
jurisdictions, and accomplish on-the-spot verifications to all the banks within their respective jurisdictions. The verification
of a bank may be done by verifying either one or more branches. It is encouraged that a general verification be done to all the branches
of all banks.

The foreign exchange administrations on all levels may conduct on-the-spot verifications irregularly to the relevant banks and subjects
of declarations (entities) according to the demand of the non-on-the-spot verifications.

The foreign exchange administrations on all levels shall, according to their overall situation and plans of declarations, organize
irregularly on-the-spot verifications to the administrations on lower levels and cross-verifications among the administrations on
lower levels.

Article 19

The object of on-the-spot verifications shall include banks and subjects of declaration (entities), and the content of the verifications
shall cover the data in foreign-related revenue and expenditure declaration documents, the daily account books of foreign payments,
the forms of the basic information of the entities, hardcopy declaration documents (the sheet to be kept by the banks), the making
and execution of system for the internal control of the indirect statistical declaration of international revenue and expenditure
of the banks.

Article 20

The verification of the data in the foreign-related revenue reported by banks may be done by sum-to-sum ticking of the data of declaration
in the monitoring system of international revenue and expenditure statistics and the running accounts of the relevant accounting
items provided by the banks.

Verifying the comprehensiveness and timeliness of the data in foreign-related revenue and expenditure declaration.

(1)

Verifying the types and constituent elements of declaration documents. The types of declaration documents include: foreign-related
revenue statistical reports, forms of writing off foreign exchange for payment of imports (to be used as declaration forms), declaration
documents for non-trade (including capital) foreign payments (to entities), declaration documents of foreign payment (to individuals),
and statistical reports for foreign payment within quota. The constituent elements of declaration to be verified include: the numbers
of the declaration documents, the amount and currency of the payments made and received, the names of the inland payers and payees,
terms of settlement, name of country, etc.

(2)

Ticking the checklist for verification on the item-by-item basis:

a. Whether the numbers of the declarations of foreign-related revenue and expenditure have been formulated in good time according
to the operational rules;

b. Whether there are declaration data for which there are no data in accounting books;

c. Whether there are data in accounting books for which there are no declaration data;

d. Whether statistical reports for foreign payment within quota have been filled in for foreign payments within quota (except payment
of foreign exchange for imports).

(3)

The unticked data shall be verified by consulting the accounting vouchers. If they have been wrongly reported, omitted, repeated,
etc., a list of such data shall be recorded down, and at the same time, photocopies of the corresponding accounting vouchers shall
be kept, and the relevant personnel of the banks under verification shall be required to fix their signatures, and the relevant departments
shall be required to affix their seals for confirmation.

Verifying the preciseness of the data in foreign-related payment declaration documents

(1)

The types of the declaration documents to be verified include foreign-related revenue declaration documents (to entities), foreign-related
revenue declaration documents (to individuals), declaration documents for non-trade (including capital) foreign payments (to entities),
forms of writing off foreign exchange paid for imports (to be used as declaration forms), declaration documents of foreign payments,
etc.

(2)

The contents of verification include the transaction codes and transaction remarks for the declaration data, the country name of the
oversea payers and payees, terms of settlement;

Ways of verification

(1) The verification of the foreign-related revenue declaration documents under the item of money remittance shall be done by consulting
the running accounts or other materials under the item of inward money remittance;

(2) The verification of the foreign-related revenue declaration documents under the item of letters of credit and collection via banks
shall be done by consulting the relevant letters of credit and agreements of collection via banks;

(3) The verification of foreign payments shall be done by consulting the relevant application documents of foreign payment businesses.

Article 21

Foreign exchange administrations shall make verifications to the daily account books of foreign payments made by banks. Daily account
books of foreign payments shall be made on the daily basis for all the foreign payments according to the practical situations. The
basis of verification shall be the subsidiary ledgers of payment of the banks.

Article 22

Foreign exchange administrations shall make verifications to the forms of basic information of the entities established by banks.
Whether the forms of basic information the entities have been filled in completely and precisely shall verified by checking the information
included in the forms of basic information of the entities obtained from the monitoring system of international revenue and expenditure
statistical declaration against the materials of the entities for opening accounts in the designated banks. The contents to be verified
include the organizational and institutional codes (entity codes), names of the entities, enterprise attributes, industry attributes,
and the opening of accounts, etc.

Article 23

Foreign exchange administrations shall make verifications to the hardcopy declaration documents kept by the banks. The verifications
shall be made by way of taking random samples from the declaration documents in the current month and past months.

The verification of the declaration documents taken randomly from past months shall cover:

(1)

Whether the declaration documents have been bound into books on the basis of month and types and have been properly kept;

(2)

Whether the declaration documents have been kept for 24 months;

(3)

Whether the declaration documents have been filled in precisely, completely and properly;

(4)

Whether any declaration documents have been wrongly used.

The verification of the declaration documents of taken randomly from the current month shall be done by checking the hardcopy declaration
documents of the current month (kept by banks) against the corresponding data reported in the monitoring system of international
revenue and expenditure statistical declaration (bank version) to see if any of the declaration documents have not been input in
good time.

Article 24

Foreign exchange administrations shall make verifications to the system of the banks for the internal regulation of the indirect statistical
declaration of international revenue and expenditure.

Where any direct report of international revenue and expenditure has been made on behalf of any other party, it shall be determined
according to whether agreement has been concluded for making reports on behalf of another party, and whether the agreements have
been properly kept.

whether rules have been formulated for the internal operations of indirect report of international revenue and expenditure, whether
the internal operation rules have met the requirements of the Operational Rules for the Statistical Report of International Revenue
and Expenditure through Financial Institutions, and how they have been carried out;

Other systems of work, administration, and job-related responsibilities that are connected with the work of international revenue
and expenditure.

Article 25

Foreign exchange administrations shall make verifications to the subjects of declaration (entities). They shall make on-the-spot verifications
to the subjects of declaration (entities) by combining the non-on-the-spot verification and on-the-spot verification of banks. The
focus shall be laid on the preciseness of the data declared.

Ways of verification. The verifications shall be based on the declaration data of foreign-related revenue and expenditure of the relevant
entities in the monitoring system of international revenue and expenditure statistics and shall be done by consulting the relevant
accounting post_titles and corresponding contracts of the entities under verification. Special attention shall be paid to the consistency
between the amount of revenue and expenditure as specified in the accounting post_titles of the entities and the check sheets issued by
the banks.

The verifications shall cover the amount and currency of the transactions, the nature of transactions, the name and country of overseas
payers and payees;

The questionable data found in the process of verification shall be verified by consulting corresponding hardcopy declaration documents
so as to decide who is be held liable, and detailed records shall be made for the verifications.

Chapter IV Supplementary Provisions

Article 26

The foreign exchange administrations on all levels shall, within 15 workdays after each quarter ends, report the verifications to
the next higher foreign exchange administration in written form, and the verification reports shall cover the contents of verification,
the problems found in the verifications, the corresponding results of handling, and shall reflect the problems that exist in the
routine operations, the large sums reflected in the reported data, and the abnormal changes of revenue and expenditure, etc.

Article 27

In case any violations of the Measures for the Declaration of International Revenue and Expenditure Statistics and other relevant
provisions are found through the verifications, they shall be punishable according to the Measures for the Punishment of Financial
Violations of Law, the Rules of Implementation for the Measures for Declaration of International Revenue and Expenditure Statistics,
and other relevant provisions.

Article 28

The present System shall enter into force as of March 1, 2003, and the power to interpret the present System shall remain with the
SAFE.

The State Administration of Foreign Exchange
2003-01-03

CIRCULAR ON THE RELEVANT WORK OF ANNUAL JOINT EXAMINATION OF ENTERPRISES WITH FOREIGN INVESTMENT OF 2003

The Ministry of Foreign Trade and Economic Cooperation, the State Economic and Trade Commission, the Ministry of Finance, the General
Customs Administration, the State Administration of Taxation, the State Administration for Industry and Commerce, the State Administration
of Foreign Exchange

Circular on the Relevant Work of Annual Joint Examination of Enterprises with Foreign Investment of 2003

WaiJinMaoZiFa [2002] No.591

February 24, 2003

The commissions (departments, bureaus) of foreign trade and economic cooperation, economic and trade commissions (economic commissions),
departments (bureaus) of finance, state tax bureaus, local tax bureaus, administrations for industry and commerce, administrations
of foreign exchange of provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately
listed on the State plan, Guangdong Sub-administration of Customs and the customs directly under the General Administration of Customs:

Through the efforts of recent years, the annual joint examination of enterprises with foreign investment has played an important role
in improving the soft environment for investment, alleviating the enterprises’ burden and strengthening the communication and coordination
between the government departments. For successful progress of the annual joint examination of enterprises with foreign investment
of the whole country in 2003, and to keep on implementing the spirits of the Circular on the Implementation Scheme on Annual Joint
Examination of Enterprises with Foreign Investment (WaiJinMaoZiFa [1998] No.938, hereinafter referred to as the Circular), the relevant
issues are hereby notified as follows:

The period from March 1 through May 31, 2003 is the work time of the annual joint examination of enterprises with foreign investment.
The localities shall organize the annual joint examination of enterprises with foreign investment strictly in accordance with the
requirements of the Circular, and the departments shall actively participate in the examination.

II.

The localities shall enhance the publicity of annual joint examination of enterprises with foreign investment, and strive to have
more enterprises participate in the examination. For those failing to declare for annual examination, failing to make faithful reports
in the annual examination or committing law-breaking or rule-breaking acts in production or business operations, the departments
of annual joint examination shall dealt with the punish the offenders pursuant to the laws and regulations.

III.

The localities shall promptly correct the acts not in line with the guidance of the Circular, prohibit those participating the examination
in other’s name, strengthen the direction for basic-level annual joint examination, inspect the progress of the examination work
and the implementation of the Circular, get to know and coordinate the settlement of the problems arising in the examination in a
timely manner, and guarantee the successful progress of the annual joint examination of their respective localities.

IV.

The departments of annual joint examination shall strengthen the communication and coordination between themselves. The departments
shall take the examination as an opportunity to change their administration methods, and shall stress the role of integrated coordination
and administration between the departments. The departments shall strengthen the coordination of the annual joint examination under
the leadership of the people’s governments at corresponding levels. The localities with necessary conditions shall have the departments
carry out the annual joint examination together, and the local finance shall give support. The departments shall exchange opinions
through joint work and conference, earnestly carry out the provisions of the Circular and improve the level of annual joint examination.

The localities shall strengthen the administration of intermediary agencies, regulate the acts of the intermediary agencies e.g. accounting
firms etc, formulate specific regulations on the services that need to be provided by intermediary agencies, and impose heavier punishment
on those intermediary agencies with rule-breaking operations. The problems of accounting firms and other intermediary agencies found
out during the annual examination shall be passed on to the departments in charge in a timely manner.

The Form of Foreign Exchange Payment in the Circular on Adjustment of the Form of Foreign Exchange Content in the Annual Examination
of Foreign Exchange of Enterprises with Foreign Investment (HuiFa [2002] No.124) jointly distributed by the State Administration
of Foreign Exchange and the Ministry of Finance shall still be filled in by registered public accountants.

VI.

The relevant departments of annual joint examination shall cooperate closely, sort out, nullify and revoke the enterprises that have
no capital, site and structure. The number of the enterprises that have been deprived of the approval certificate in the current
year and the accumulative number of such enterprises shall be counted, and the information about sorting out, nullification and revocation
shall be indicated in the summary of the annual joint examination.

VII.

According to the Circular, the departments of annual joint examination may not add new charges, except that the administrations for
industry and commerce may take the charges according to the original standards. The departments shall firmly sort out and stop those
that, in violation of the provisions, take charges from enterprises or do so in disguised forms by the chance of annual joint examination,
or conduct annual examinations over enterprises with foreign investment without approval of the State Council, thus increasing the
enterprises’ burden by taking arbitrary charges or imposing random examinations.

VIII.

In order to improve the efficiency of annual joint examination and alleviate the enterprises’ burden, pilot projects of on-line annual
joint examination of enterprises with foreign investment will be carried out in Anhui, Beijing, Shanghai and Shenzhen etc, and will
be spread to other regions of China with the necessary conditions.

IX.

The departments shall strengthen the training of the functionaries of annual joint examination, enhance their sense of service and
operation quality, to provide open, transparent and normative services to the enterprises. And annual joint examination consultation
and complaint agencies shall be set up to accept the inquiries and complaints filed by enterprises with foreign investment.

In order to guarantee the quality of the data gathered through the annual joint examination, the data of the localities shall go through
the preliminary joint review on a regional basis before being submitted, and the departments in charge of foreign trade and economic
cooperation of the localities shall make good preparations for the joint review.

XI.

The localities shall strengthen the statistics and analysis of the annual examination data, use the information and materials obtained
through the examination to analyze in depth the production and business operations and the general problems of enterprises with foreign
investment, and to carry out wide-range survey, study and communication.

This is hereby the notification.

The Ministry of Foreign Trade and Economic Cooperation, the State Economic and Trade Commission, the Ministry of Finance,
the General Customs Administration, the State Administration of Taxation, the State Administration for Industry and Commerce, the
State Administration of Foreign Exchange
2003-02-24

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON SUBMITTING THE STATEMENTS UNDER THE MEASURES FOR ADMINISTRATION OF THE REPORTS ON TRANSACTIONS OF LARGE-SUM AND DOUBTFUL FOREIGN EXCHANGE CAPITAL OF FINANCIAL INSTITUTIONS

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Submitting the Statements Under the Measures for Administration of the
Reports on Transactions of Large-Sum and Doubtful Foreign Exchange Capital of Financial Institutions

HuiFa [2003] No. 42

March 18, 2003

The branches of the State Administration of Foreign Exchange (“SAFE”) and departments of foreign exchange in all provinces, autonomous
regions, and municipalities directly under the Central Government, the branches in the cities of Shenzhen, Dalian, Qingdao, Xiamen,
and Ningbo of the SAFE, the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China, the Construction
Bank of China, the Bank of Communications of China, the State Development Bank, the Import and Export Bank of China, the Agricultural
Development Bank of China, the CITIC Industrial Bank, the Everbright Bank of China, Hua Xia Bank, Guangdong Development Bank, Shenzhen
Development Bank, the Merchants Bank, the Industrial Bank, Shanghai Pudong Development Bank, China Minsheng Bank:

With a view to ensuring the smooth implementation of Decree [2003] No. 3 of the People’s Bank of China, Measures for Administration
of the Reports on Transactions of Large-Sum and Doubtful Foreign Exchange Capital of Financial Institutions (hereinafter referred
to as the Administration Measures), the SAFE has according to the Principles for Submission of the Statements under the Administration
Measures (see Attachment 1) formulated four Statements required to be filled in by financial institutions for performing anti-money-laundry
functions (see Attachment 2) and provided for the indicators for the Statements, the codes of the reporting and identification standards
and the transmission of electronic Statements (see Attachment 3 through 5). Here is to notify you of the relevant requirements:

The financial institutions shall according to the provisions of the Administration Measures submit the transactions of large-sum and
doubtful foreign exchange capital by paper-based statements and electronic statements as of April 1.

II.

The SAFE shall according to the requirements of Attachment 1 through 4 to this Circular formulate the statements under the Administration
Measures into electronic template documents, and send them to its branches through the internal electronic information transmission
system. Upon receipt of the electronic template documents, the branches shall timely transfer this Circular (including its Attachment
) and the electronic template documents to Chinese and foreign-invested banks (including the head offices of Chinese-invested banks)
and urban commercial banks, urban credit cooperatives, rural credit cooperatives and rural commercial banks in their jurisdictions.

III.

The financial institutions shall in strict accordance with the provisions of the Administration Measures and this Circular fill in
the statements carefully, guarantee the quality of the data in the statements and timely and accurately submit the paper-based statements
and the electronic statements. In case of any business problems occurred in work, please do not hesitate to contact with the Administrative
and Examination Department of the SAFE; and in case of any technological problems, please do not hesitate to contact with the Information
Center of the SAFE. The contact telephones are:

Administrative and Examination Department Anti-Money-Laundry Control Office: Lu Zheng by 68402106

Information Center Network Engineering Office: Wei Kun by 68402022

Information Center Application Development Office: Zhu Yong by 68402026

Attachment:

1. Principles for Submission of the Statements under the Measures for Administration of the Reports on Transactions of Large-Sum and
Doubtful Foreign Exchange Capital of Financial Institutions

2. Statements under the Measures for Administration of the Reports on Transactions of Large-Sum and Doubtful Foreign Exchange Capital
of Financial Institutions (omitted)

3. Descriptions on the Indicators for the Statement under the Measures for Administration of the Reports on Transactions of Large-Sum
and Doubtful Foreign Exchange Capital of Financial Institutions.

4. Codes of the Reporting and Identification Standards under the Measures for Administration of the Reports on Transactions of Large-Sum
and Doubtful Foreign Exchange Capital of Financial Institutions

5. Descriptions on the transmission of electronic Statements

Attachment 1:Principles for Submission of the Statements under the Measures for Administration of the Reports on Transactions of Large-Sum and
Doubtful Foreign Exchange Capital of Financial Institutions

Submitting subjects:

The financial institutions and its branches and sub-branches, and the branches of the State Administration of Foreign Exchange (“SAFE”)
in all provinces, autonomous regions, and municipalities directly under the Central Government and its sub-branches in prefectures,
cities and counties where there are top-level corporate financial institutions are the submitting subjects.

The first-level branches and sub-branches in the capital cities of the provinces, autonomous regions, and municipalities directly
under the Central Government set up by the financial institutions are the principal submitting institutions, and in case no first-level
branches and sub-branches are set up in the capital cities of the provinces, autonomous regions, and municipalities directly under
the Central Government by the financial institutions, the headquarters of the financial institutions shall designate the principal
submitting institution.

The top-level corporate financial institutions set up in the prefectures, cities and counties shall perform their reporting functions
and obligations to the local branches, which shall be summarized by local branches before consolidated reporting to the branches
of the provinces, autonomous regions, and municipalities directly under the Central Government

II.

Submission procedures and time schedule:

The Administration Measures has provided for the principles territorial jurisdiction and double-way submission.

The branches and sub-branches of the financial institutions shall summarize the transactions of the large-sum and doubtful foreign
exchange capitals of the last month within the first five working days of each month, which should be submitted to the principal
submitting institutions by levels, and to the local branches and sub-branches of the SAFE at the same time.

Each principal submitting institutions shall summarize the transactions of the large-sum and doubtful foreign exchange capitals of
the last month in each province, autonomous region and municipalities directly under the Central Government within the first fifteen
working days of each month, which should be submitted to the branch of the corresponding province, autonomous region and municipalities
directly under the Central Government, and to the headquarters of each corresponding financial institutions.

The headquarters of each financial institution shall within the first five working days of each month submit the transactions of the
large-sum and doubtful foreign exchange capital incurred to itself of the last month to the local branches or sub-branches and shall
summarize all the transactions of the large-sum and doubtful foreign exchange capitals incurred in its whole jurisdiction of the
last month before submitting to the SAFE within the first working 20 days of each month.

The financial institutions shall verify and analyze the transactions of the large-sum and doubtful foreign exchange capital and in
case of finding any suspected crimes, reports thereof should be made to the local public security organ within three days and to
the local branches or sub-branches of the SAFE.

The branches of the SAFE in the provinces, autonomous regions, and municipalities directly under the Central Government shall within
the first 20 days of each month submit the summaries of the transactions of the large-sum and doubtful foreign exchange capital reported
by the financial institutions to the SAFE; and any transactions of foreign exchange capital involved in suspected crimes should be
transferred to the local public securities and submitted to the SAFE at the same time.

III.

Means of submission:

In case of the acts relating to the transactions of the large-sum and doubtful foreign exchange capital provided for in Article 8
through 10 in the Administration Measures, the financial institutions shall fill in and submit Statement 1, Statement 2 and Statement
3 each month respectively in the forms of paper-based documents and electronic files.

In case of any suspected money laundry found in verifying the transactions of foreign exchange capital as provided for by Articles
12 through 3 in the Administration Measures, the financial institutions shall timely fill in and submit the paper-based Statement
4 together with the relevant Attachment attached. Attachment 3:Descriptions on the Indicators for the Statement under the Measures for Administration of the Reports on Transactions of Large-Sum
and Doubtful Foreign Exchange Capital of Financial Institutions

“Summarizing and submitting unit”, “submitting unit” and “code of submitting unit”

“Summarizing and submitting unit” and “submitting unit” should be filled in with the full name (as per the specimen seal impression)
of the financial institutions and their branches and sub-branches undertaking the foreign exchange business (hereinafter referred
to as the financial institutions), and the summarizing and submitting units refer to the financial institutions that summarize the
data information of their branches and sub-branches and directly make reports to the SAFE. The code of the submitting unit shall
be filled in as per the identity code (12 digits) of the financial institutions in the submission of the international payments.
The financial institutions without identity codes shall submit the data to the superior branches for filling and submission. The
basic units of the financial institutions that summarize, fill in and submit the transactions of large-sum and doubtful foreign exchange
capital are the sub-branches in prefectures, cities and counties.

II.

Enterprise

Enterprises refer to enterprise and institutional units (including foreign-invested enterprises), state organs, social communities,
military units, and other domestic institutions in the territory of the PRC, foreign units assigned to China, as well as institutions
outside China with occurrence of conversion of foreign exchanges or payments of foreign exchanges with the offshore accounts in the
territory of the PRC or with occurrence of conversion of foreign exchanges or payments of foreign exchanges with the onshore accounts
in the territory of the PRC.

III.

Name of enterprise

To be filled in as per the full name registered by the enterprises with the administration of commerce and industry and other administrative
authorities in country where it is located, or as per the name indicated on the valid certificates that includes its accurate, complete
ad standard name or on the approval document and certification of the competent authorities. Institutions outside China shall fill
in the standard full name in Chinese and English at the same time in the format of “name in Chinese (and name in English)”.

IV.

Enterprise code

To be fill in as per the 9-digit organizational and institutional code (GB code) promulgated by the National Administrative Center
of Organizational and Institutional Codes of China State General Administration of Quality Supervision, Inspection and Quarantine
(AQSIQ), whereby the English letter should be in capital, and with the short line of “�” deleted, for instance, the original code
of “25186820�X” would be written as “25186820X”.

Date of occurrence of transactions

In the format of “yyyy/mm/dd”, among which “yyyy’ refer to year, “mm” refers to month, and “dd” refers to day, and in case the month
or the day is less than two digits, 0 would be added before the actual number of the month or the day. For instance, January 1, 2003
would filled in as “2003/01/01”.

VI.

Code of reporting or identification standards

There are 60 items corresponding to the reporting standards of the transactions of the large-sum foreign exchange capital and the
reporting and identification standards of the transactions of the doubtful foreign exchange capital under the Administration Measures,
which are provided for fixed 4-digit codes accordingly (see Attachment 4), and the financial institutions shall fill in the fixed
codes according to the content of the actual transactions.

VII.

Code of transactions

To be filled in as per the transaction codes of the monitoring system of international payments statistics.

VIII.

Payments of capital

Incomes of foreign exchange capital would be filled in as “1”, and payment thereof should be filled in as “0”.

IX.

Bank account

The A/C number opened at banks by the enterprises according to law, including the number of offshore accounts.

Transaction currencies and transaction volume

The transaction currencies should be filled in as the code of such currencies based on national standards (Abbreviation in English
as 3-digit capital letters) , and the transaction volume should be filled in the corresponding forms in the original currency and
conversion of USD. The conversion ratio shall adopt that of the month of filling and submission of the statement.

XI.

Transaction direction

Cross-border flow of the foreign exchange capital should be filled in with the national or regional code where the counterpart is
located (Abbreviation in English as 3-digit capital letters) based on national standards; and domestic transaction of capital requires
for filling in the code of the special economic zones, and the codes of special economic zones are as follows: general trade zone
(Z00), bonded zone (Z01), processing zone (Z020), and diamond exchanges (Z03).

XII.

Name and individual name

For residents, full name should be filled in as per the ID cards; and for non-residents, full name of the individual should be filled
in as per the passports.

XIII.

Nationality

According to the national standards, filled in with the national (regional) codes (Abbreviation in English as 3-digit capital letters).

XIV.

ID number

To be filled in with the ID card number of residents, number of the certificate of military officers, number of children on the household
register and the number of the passports of non-residents.

XV.

Number of bankcards or the number of saving account of foreign currency

When holding bank cards, to be filled in with the bank cards; when having the saving account of foreign currency, to be filled in
with the number of the saving account of foreign currency; when having both the bank cards, both numbers should be filled in with
the number of bank cards before and separated with “m the number of the saving accounts of foreign currency.

XVI.

Responsible person, undertakers and contact telephone

The responsible person should be filled in with the personnel in charge of the anti-money laundry department of the filling and submitting
units; the undertaker should be filled in with the person filling in and submitting the forms; and the contact telephone number refers
to that of the undertaker.

XVII.

Seal

For the “filling and submitting unit (seal)” in Statements 1 through 4, it refers to the seal of the anti-money laundry department
of the filling and submitting units). The “transferring unit (seal)” and the “receiving unit (seal)” in Statement 4 refer to the
seal of the anti-money laundry departments of the transferring unit and the receiving unit.

XVIII.

Legal representative and address

The legal representative refers to the full name of the legal representative registered with the administrative department of commerce
and industry and the address refers to that registered with the administrative department of commerce and industry.

XIX.

Contact person and contact telephone.

For the “contact person” in Statement 4, the full name of the relevant persons of the unit involved in the suspected circumstance
or the full name of the individual involved in the suspected circumstances may be filled in, and for the contact telephone, the telephone
of that person or that individual shall be filled in.

XX.

Transferring person. Receiving person and contact telephone

For the transferring person, the full name of the person of the administrative department of foreign exchange or the financial institution
who transfers the relevant materials to the public security department shall be filled in, for the receiving person, the full name
of the person of the public security department who receives the relevant materials to the administrative department of foreign exchange
or the financial institution shall be filled in, and for the contact person, the telephone of that transferring person or receiving
person shall be filled in.

XXI.

Total

Each statement shall summarize the sums of the “codes of the reporting standard or the identifying standards” and at the same time,
the amount of the “transaction volume (conversion into USD)” shall be summarized.

XXII.

Remarks

Other circumstance to be supplemented and described.

Attachment 4:Codes of the Reporting and Identification Standards under the Measures for Administration of the Reports on Transactions of Large-Sum
and Doubtful Foreign Exchange Capital of Financial Institutions

Item 1 of Article 8 0801, Item 2 of Article 8 (0802);

Item 1 of Article 9 0901, Item 2 of Article 9 0902;

Item 3 of Article 9 0903, Item 4 of Article 9 0904;

Item 5 of Article 9 0905, Item 6 of Article 9 0906;

Item 7 of Article 9 0907, Item 8 of Article 9 0908;

Item 9 of Article 9 0909, Item 10 of Article 9 0910;

Item 11 of Article 9 0911, Item 1 of Article 10 1001;

Item 2 of Article 10 1002, Item 3 of Article 10 1003;

Item 4 of Article 10 1004, Item 5 of Article 10 1005;

Item 6 of Article 10 1006, Item 7 of Article 10 1007;

Item 8 of Article 10 1008, Item 9 of Article 10 1009;

Item 10 of Article 10 1010, Item 11 of Article 10 1011;

Item 12 of Article 10 1012, Item 13 of Article 10 1013;

Item 14 of Article 10 1014, Item 15 of Article 10 1015;

Item 16 of Article 10 1016, Item 17 of Article 10 1017;

Item 18 of Article 10 1018, Item 19 of Article 10 1019;

Item 20 of Article 10 1020, Item 21 of Article 10 1021;

Item 2 of Article 12 1202, Item 3 of Article 12 1203;

Item 1 of Article 13 1301, Item 2 of Article 13 1302;

Item 3 of Article 13 1303, Item 4 of Article 13 1304;

Item 5 of Article 13 1305, Item 6 of Article 13 1306;

Item 7 of Article 13 1307, Item 8 of Article 13 1308;

Item 9 of Article 13 1309, Item 10 of Article 13 1310;

Item 11 of Article 13 1311, Item 12 of Article 13 1312;

Item 13 of Article 13 1313, Item 14 of Article 13 1314;

Item 15 of Article 13 1315, Item 16 of Article 13 1316;

Item 17 of Article 13 1317, Item 18 of Article 13 1318;

Item 19 of Article 13 1319, Item 20 of Article 13 1320;

Item 21 of Article 13 1321, Item 22 of Article 13 1322;

Item 23 of Article 13 1323, Item 24 of Article 13 1324.

Attachment 5:Descriptions on the Transmission of Electronic Statements

According to the requirements for submission of the electronic statements provided for by the Administration Measures, the submission
channels and file names and formats of the electronic statements have been standardized as follows:

Channels of transmission

From commercial banks to the SAFE

After the electronic statements of the branches and sub-branches of the commercial banks have been submitted to the principal submitting
institutions by level, the principal submitting institutions shall consolidate and submit then to the local branches of the SAFE,
and to the head offices of the corresponding commercial banks before the head offices of the commercial bank submit them to the SAFE.
The head offices of commercial banks located in Beijing Municipality shall submit the electronic statements to Beijing Foreign Exchange
Administrative Department of the SAFE, which shall then submit them to the SAFE; and the head offices of commercial bank that are
not located in Beijing Municipality shall submit the electronic statements to the local braches of the SAFE, and the relevant branches
shall then submit them to the SAFE.

It is suggested that the commercial banks adopt the TXPT V310 (Communication platform software version V310) for submitting the electronic
statements to the SAFE, and TXPT has designated the following configuration methods for this application:

The application type (apptype) of this application has been designated as “FQ10” , and the sub-application type (sub_apptype) has
been designated as “00”, and the mode for opening the files has adopted the binary system (1).

The commercial banks may copy a new file from the transmission configuration file of the monitoring system of the international payments
statistics, correspondingly adjust the application type and sub-application types of the new file and designate the “remote path”
as “/fxq/”, thus forming the transmission configuration file of this application, which may be adopted for transmitting the relevant
electronic statements.

The branches of the SAFE adopt the file server in the firewall DMZ zone for receiving the files, with the receiving directory designated
as /fxq, and the power limits of the directory is Sybase. Thus, the branches shall add the directory of the corresponding power limits
to the file serve and add a line (with the content of “FQ1000###Sybase”) in the file of “/txpt/config/svcfile.sys”. The business
personnel of the branches of the SAFE may by use of the TXPT receive the files transmitted to the file services by commercial bank
in the computer for further processing. The “application type”, “sub-application type” and mode for filing opening in the TXPT receiving
configuration of the PC should be adjusted the same way.

From branches of the SAFE to the SAFE

The internal electronic information exchanges of the SAFE shall adopt the internal electronic information transmission system of the
SAFE. The SAFE has designated as special email at fxq@inspect.safe for receipt of the electronic statements of such applications,
to which the branches may send the electronic statements.

II.

File names and formats

The file name of the application electronic statements consists of 24 digits, among which digits 1 through 6 refer to local codes,
digits 7 through 10 refer to bank codes, digits 11 through refer to bank sequence, digits 13 through 18 refer to codes of date in
the form of “yy (year)mm(month)dd(day)”, digits 19 through 20 refer to bill codes, and digits 21 through 24 refer to the bill sequence.

The local codes of digits 1 through 6 and the bank code of digits 7 through 10 adopt the codes allocated in the monitoring system
of international payments statistics.

The corresponding relations of bill codes are as follows:

01� � monthly statements of the transactions of large-sum foreign exchange capital of enterprises;

02� � monthly statements of the transactions of large-sum foreign exchange capital of individual residents and non-residents;

03�� monthly statements of the transactions of doubtful foreign exchange capital; and

Other codes should be determined by the branches and sub-branches of the SAFE at their own discretion.

The State Administration of Foreign Exchange
2003-03-18

ANNOUNCEMENT OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE

The State Administration of Foreign Exchange

Announcement of the State Administration of Foreign Exchange

[2003] No.1

April 15, 2003

According to the Decisions of the State Council on Canceling the First Batch of Administration Examination and Approval Projects (GuoFa
[2002] No.24) and the Decisions of the State Council on Canceling the Second Batch of Administration Examination and Approval Projects
and Altering the Administrative Methods for Some Administration Examination and Approval Projects (GuoFa [2003] No.5), the State
Administration of Foreign Exchange has cancelled 26 items to be administratively approved. The relative issues after these items
are cancelled for administrative approvals are hereby announced as follows:

The “examination and approval of opening, altering and canceling accounts for foreign exchange loans in China” is canceled

The administration on the specific domestic accounts for foreign exchange loans shall be in accordance with Article 4 of the Circular
of the State Administration of Foreign Exchange on Reforming the Methods of Administration of Foreign Exchange in Domestic Foreign
Exchange Loans (HuiFa [2002] No.125) promulgated by the State Administration of Foreign Exchange on December 6, 2002.

II.

The “examination and approval of opening, altering and canceling accounts for B-share guarantee funds (hereinafter referred to as
“B-share transaction settlement fund account”) that opened at foreign-invested banks in China by securities companies” is canceled

When securities companies open or alter B-share transaction settlement fund accounts, Article 3 of Circular of the State Administration
of Foreign Exchange on the Transitional Policy and Measures after Canceling Administrative Examination and Approval of Foreign Exchange
Administration of Some Capital Projects (HuiFa [2003] No.50) promulgated by the State Administration of Foreign Exchange on April
1, 2003 shall be implemented.

III.

Four items including “examination and approval of the conditions of Chinese organizations for long-and-medium-term loans in China”,
“examination and approval of the financial conditions of Chinese organizations for financing and leasing in China”, “examination
and approval of the time selection and financing conditions for issuing debts abroad” and “examination and approval of the financial
conditions for project financing ” are canceled

If Chinese organizations (including designated banks of foreign exchange) borrow long-and-medium-term loans, issue long-and-medium-term
foreign currency bonds or perform financial leasing and financing, the provisions in Article 1 of the Circular of the State Administration
of Foreign Exchange on the Transitional Policy and Measures after Canceling Administrative Examination and Approval of Foreign Exchange
Administration of Some Capital Projects (HuiFa [2003] No.50) promulgated by the State Administration of Foreign Exchange on April
1, 2003 shall be implemented.

IV.

The “examination and approval of large-amount financing for overseas branches of Sino-capital financial organizations” is canceled

When the overseas branches of Sino-capital financial organization in China raise large amount of funds, the provisions in Article
2 of the Circular of the State Administration of Foreign Exchange on the Transitional Policy and Measures after Canceling Administrative
Examination and Approval of Foreign Exchange Administration of Some Capital Projects (HuiFa [2003] No.50) promulgated by the State
Administration of Foreign Exchange on April 1, 2003 shall be implemented.

The “audit of the foreign exchange risks in overseas investments by domestic organizations” is canceled

According to the provisions in Article 4 of the Circular of the State Administration of Foreign Exchange on the Transitional Policy
and Measures after Canceling Administrative Examination and Approval of Foreign Exchange Administration of Some Capital Projects
(HuiFa [2003] No.50) promulgated by the State Administration of Foreign Exchange on April 1, 2003, the overseas investment risks
of domestic organizations shall not be audited and approved by the administrations of foreign exchange, and the auditing procedures
on the fund resources of overseas investments will be further simplified. For specific procedures, refer to the Circular of the
State Administration of Foreign Exchange on Simplifying the Examination of Foreign Exchange Capital Source of Investment Abroad (HuiFa
[2003] No.43).

VI.

The “examination and approval of guarantee funds for transferring back the profits of overseas investments” is canceled

According to the provisions in the Circular of the State Administration of Foreign Exchange on Guarantee Funds for transferring back
the profits of overseas investments (HuiFa [2002] No.110) promulgated by the State Administration of Foreign Exchange on November
12, 2002, the State Administration of Foreign Exchange will not collect the guarantee funds for transferring back the profits of
overseas investments.

VII.

The “examination and approval of prepayment or incidental charges under boarder trades” is canceled

The prepayment or incidental charges under boarder trades shall be in accordance with the provisions in Article 1 of the Circular
of the State Administration of Foreign Exchange on Canceling Administrative Examination and Approval on the Foreign Exchange in Current
Accounts (HuiFa [2002] No.53) promulgated by the State Administration of Foreign Exchange on April 1, 2003.

VIII.

The “examination and approval of the current account foreign exchange brought or remitted into China by individuals, which one-time
payment of foreign currency or changing for Renminbi equivalent of no less than $50,000” is canceled

If individuals need to draw foreign currencies or change them for Renminbi, the provisions in Article 2 of the Circular of the State
Administration of Foreign Exchange on Canceling Administrative Examination and Approval on the Foreign Exchange in Current Accounts
(HuiFa [2002] No.53) promulgated by the State Administration of Foreign Exchange on April 1, 2003 shall be implemented.

IX.

The “examination and approval of foreign exchange used for tax-free commodities and selling the tax-free commodities bought by tax-free
stores in RMB due to damages or overstock” is canceled

If the headquarter of the stores selling tax-free commodities in foreign exchange, or sell the commodities in RMB due to damages or
overstock, which will be paid abroad, the provisions in Article 3 of the Circular of the State Administration of Foreign Exchange
on Canceling Administrative Examination and Approval on the Foreign Exchange in Current Accounts (HuiFa [2002] No.53) promulgated
by the State Administration of Foreign Exchange on April 1, 2003 shall be implemented.

The “verification of foreign exchange payments for the equipments under foreign-invested projects and foreign-funded equipments and
articles” is canceled

According to the Circular of the State Administration of Foreign Exchange and the General Administration of Customs Concerning Sales/Purchases
of Foreign Exchange and Verification by Presenting Custom Declaration Certificates for Imported Goods (HuiFa [2003] No.15), the designated
banks of foreign exchange or administrations of foreign exchange shall verify the declarations of the import which goods were imported
after May 1, 2002 as the “trades that may sell/purchase foreign exchange”. After the authentications of the declarations are verified
and put records in the Import Declaration Networking Verification System or are disposed for closing the cases, the sales/purchases
of foreign exchange and the verification can be performed according to the Administrative Provisions on Settlement, Sale and Purchase
of Foreign Exchange, the Interim Measures of Supervising the Verifications on Import Payments in Foreign Exchange and other related
provisions.

XI.

Three items including “verification and filing of letters of credit of over 90 days under import items”, “verification and filing
of collections of over 90 days under import items” and “verification and filing of arrivals of over 90 days under import items (excluding
prepayment over proportion or over amount) are canceled

If importers settle the payments in foreign exchange in a mode of “letter of credit of over 90 days, collection of over 90 days and
arrival of over 90 days (excluding prepayment over proportion or over amount), it may directly go to the designated banks of foreign
exchange for payments in foreign exchange according to the Circular of Further Regulating the Administrative Policies on Import and
Export Verification (HuiFa [2002] No.65) promulgated by the State Administration of Foreign Exchange on July 10, 2002, and the designated
banks of foreign exchange shall perform verifications according to the administrative provisions on sales/purchases in foreign exchange.

XII.

The “verification of opening, using and altering of foreign exchange accounts by insurance companies” is canceled

The insurance companies with approval for trading foreign exchange may, according to the Circular of the State Administration of Foreign
Exchange and China Insurance Supervision and Administration Committee on Promulgation and Implementation of the Interim Provisions
on Administration on Foreign Exchange for Insurance Operations (HuiFa [2002] No.95) promulgated by the State Administration of Foreign
Exchange and China Insurance Supervision and Administration Committee, open foreign exchange accounts, and shall report it to the
local administrations of foreign exchange for record within 10 working days after opening such accounts.

XIII.

The “audit of the counterfoils of verification forms provided by the exporters within 60 days after custom declaration” is canceled

Exporters shall, according to the Circular of Pilots for Networking Verification System for Export Proceeds Using Electronic Law Execution
at Ports (HuiFa [2001] No.7) promulgated by the State Administration of Foreign Exchange and General Administration of Customs on
January 22, 2001, submit the verification forms used for custom declaration to the local administrations of foreign exchange via
the “China Port Electronic System for Export Proceeds in Foreign Exchange”.

XIV.

The “verification of re-remittance (to the original remitter by individuals residing in China) of foreign exchange deposits remitted
from abroad” is canceled

If individuals re-remit the foreign exchange deposits to the remitters who remit the foreign exchange to the individuals, provisions
in Article 4 of the Circular of the State Administration of Foreign Exchange on Canceling Administrative Examination and Approval
on the Foreign Exchange in Current Accounts (HuiFa [2002] No.53) promulgated by the State Administration of Foreign Exchange on April
1, 2003 shall be implemented. And, the Official Reply Concerning Remittance Abroad of Foreign Exchange Deposits of Individuals residing
in China and Alteration of Account Names of Foreign Exchange Accounts (HuiFu [2000] No.291) shall be repealed at the same time.

XV.

The “verification of transfers of foreign exchange within China by insurance companies and their branches” is canceled

For the capital transactions between insurance companies and its branches and between their foreign exchange accounts within the same
insurance companies, according to the provisions in the Circular of the State Administration of Foreign Exchange and China Insurance
Supervision and Administration Committee on Promulgation and Implementation of the Interim Provisions on Administration on Foreign
Exchange for Insurance Operations (HuiFa [2002] No.95) promulgated by the State Administration of Foreign Exchange and China Insurance
Supervision and Administration Committee, such transfers may be made within the banks of deposits provided that such transfers shall
be in accordance with the payment/proceed scope of the accounts.

XVI.

The “verification on the debtors repaying domestic foreign exchange loans to local banks using their own foreign exchange” is canceled

If debtors repay domestic foreign exchange loans to local banks using their own foreign exchange, the provisions in Article 4 of
the Circular of the State Administration of Foreign Exchange on Reforming the Methods of Administration of Foreign Exchange in Domestic
Foreign Exchange Loans (HuiFa [2002] No.125) promulgated by the State Administration of Foreign Exchange on December 6, 2002 shall
be implemented.

XVII.

The “verification of capital settlements of enterprises with foreign investment” is canceled

The verifications on capital settlements of enterprises with foreign investment shall be in accordance with the Circular of Reforming
the Administrative Method of Capital Settlement under Foreign-Investment Items (HuiFa [2002] No.59) promulgated by the State Administration
of Foreign Exchange on June 17, 2002 and the Circular of the State Administration of Foreign Exchange on Improving the Administration
of Foreign Exchange in Foreign Direct Investments (HuiFa [2003] No.30).

XVIII.

The “registration and verification of the domestic debtors for foreign exchange loans” is canceled

The Sino-capital financial organizations shall, when granting foreign exchange loans within China, implement the provisions of the
Circular of the State Administration of Foreign Exchange on Reforming the Methods of Administration of Foreign Exchange in Domestic
Foreign Exchange Loans (HuiFa [2002] No.125) promulgated by the State Administration of Foreign Exchange on December 6, 2002.

XIX.

The “verification of annual audits on the foreign exchange proceeds/payments of ocean fishing operations of ocean fisheries” is canceled

According to the Circular of the State Administration of Foreign Exchange on Canceling Administrative Examination and Approval on
the Foreign Exchange in Current Accounts (HuiFa [2002] No.53) promulgated by the State Administration of Foreign Exchange on April
1, 2003, the following provisions in the Interim Provisions on the Foreign Exchange Proceeds/Payments of Ocean Fishing Operations
of Ocean Fisheries (HuiFa [2001] No. 49) promulgated by the State Administration of Foreign Exchange and the Ministry of Agriculture
shall be repealed, including: Article 16 – “The administration of foreign exchange shall implement a system of annual audits on
the foreign exchange proceeds/payments of ocean fishing operations of ocean fisheries; Article 17 – “All branches of the administrations
of foreign exchange shall report the annual audit results as well as the information on sales/purchases of all local ocean fisheries
to the State Administration of Foreign Exchange before May 30 each year and make copies for local fishery administrations”; Article
18 – “The State Administration of Foreign Exchange shall inform the Ministry of Agriculture of the national annual audit results
as well as the utilization of foreign exchange by the ocean fisheries after the annual audits, and the Ministry of Agriculture shall
publicize the annual audit results to all the ocean fishery enterprises to establish a inter-supervision and impeachment among the
enterprises”.

XX.

The “verification of the over costs paid in foreign exchange out from the accounts of travel agencies for entry tours ” is canceled

According to the Circular Concerning Further Regulating the Administrative Policy on the Foreign Exchange Accounts under Current Accounts
(HuiFa [2002] No. 87) promulgated by the State Administration of Foreign Exchange on September 9, 2002, the account of a travel agency
for entry tours and for abroad tours shall be merged into one current account foreign exchange account. The travel agency may expend
directly from the this current account foreign exchange account without need to apply to local administration of foreign exchange
for approval.

XXI.

The “verification and approval of the administration of foreign exchange on the purchase of foreign exchange and by domestic foreign
exchange debtor and repaying loans at other locations” is canceled

If the debtors repay foreign exchange loans within China, the provisions in Article 5 of the Circular of the State Administration
of Foreign Exchange on Reforming the Methods of Administration of Foreign Exchange in Domestic Foreign Exchange Loans (HuiFa [2002]
No.125) promulgated by the State Administration of Foreign Exchange on December 6, 2002 shall be implemented.

The specific procedures for the corresponding items after they are canceled for verification and approval have been specified in the
laws and regulations promulgated by the State Administration of Foreign Exchange, which can be referred via the governmental website
of the State Administration of Foreign Exchange or from the Announcements of the State Administration of Foreign Exchange.

The State Administration of Foreign Exchange
2003-04-15

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Constitution

The basic law

Concluding and Transitional Provisions

NOTICE OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON PRINTING AND DISTRIBUTING THE MEASURES FOR THE ADMINISTRATION OF FOREIGN EXCHANGE IN BORDER TRADE

PROVISIONS ON THE ANTIDUMPING INVESTIGATION OF INDUSTRY INJURY

NOTICE OF THE STATE FOOD AND DRUG ADMINISTRATION ON THE ISSUES CONCERNING THE IMPLEMENTATION OF THE ADMINISTRATIVE MEASURES FOR THE IMPORT OF DRUGS

MEASURES FOR ADMINISTRATION OF CHINESE-FOREIGN COOPERATIVE DISTRIBUTION ENTERPRISES

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON AUDIT OF E-INFORMATION OF SPECIAL TAX RECEIPT OF EXPORTS

INTERIM REGULATIONS ON THE MANAGEMENT OF INTERNATIONAL NETWORKING OF COMPUTER INFORMATION

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON DISTRIBUTING THE SYSTEM OF THE INDIRECT DECLARATION AND VERIFICATION OF INTERNATIONAL REVENUE AND EXPENDITURE STATISTICS (FOR TRIAL IMPLEMENTATION)

CIRCULAR ON THE RELEVANT WORK OF ANNUAL JOINT EXAMINATION OF ENTERPRISES WITH FOREIGN INVESTMENT OF 2003

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON SUBMITTING THE STATEMENTS UNDER THE MEASURES FOR ADMINISTRATION OF THE REPORTS ON TRANSACTIONS OF LARGE-SUM AND DOUBTFUL FOREIGN EXCHANGE CAPITAL OF FINANCIAL INSTITUTIONS

ANNOUNCEMENT OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE

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