DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON REVISING THE PREVENTION AND CONTROL OF ATMOSPHERIC POLLUTION

Decision of the Standing Committee of the National People’s Congress on Revising the Law of the PRC on the Prevention and Control
of Atmospheric Pollution

At its 15th Meeting, the Standing Committee of the Eighth National People’s Congress decides to revise the Law of the People’s Republic
of China on the Prevention and Control of Atmospheric Pollution as follows:

1. One paragraph is added to Article 8 as Paragraph 1: “The State adopts economic and technological policies and measures to facilitate
the prevention and control of atmospheric pollution and comprehensive utilization.”

2. One article is added as Article 9: “The people’s governments at various levels shall redouble their efforts in afforestation and
urban greening to improve the atmospheric environment.”

3. One article is added as Article 15: “Enterprises shall give priority to the adoption of clean production techniques that are instrumental
to high-efficient use of energy and reduced discharge of pollutants so as to decrease the generation of atmospheric pollutants.

“The State practises an elimination system for the backward production techniques and backward equipment which seriously pollutes
the atmospheric environment.

“The competent department for comprehensive economic and trade affairs under the State Council shall, in conjunction with other relevant
departments under the State Council, publish a catalog of the techniques which seriously pollute the atmospheric environment and
the use of which shall be prohibited within a time limit, and a catalog of the equipment which seriously pollutes the atmospheric
environment and the production, sale, importation and use of which shall be prohibited within a time limit.

“Producers, sellers, importers or users shall, within the time limit prescribed by the competent department for comprehensive economic
and trade affairs under the State Council in conjunction with the relevant departments under the State Council, stop the production,
sale, importation or use of the equipment listed in the catalog specified in the preceding paragraph. People who use the production
techniques listed in the catalog specified in the preceding paragraph shall, within the time limit prescribed by the competent department
for comprehensive economic affairs under the State Council in conjunction with the relevant departments under the State Council,
stop using such techniques.

“The equipment eliminated in accordance with the provisions of the preceding two paragraphs may not be transferred to another for
use.”

4. One article is added as Article 24: “The State promotes the dressing of coal by washing to reduce the sulfur and ash in coal, and
restricts the mining of high-sulfur or high-ash coal. If the coal mined from a newly-built coal mine is of high-sulfur or high-ash,
supporting facilities for the dressing of coal by washing shall be installed to make the sulfur and ash in coal fall within the prescribed
limits.

“If the coal mined from an established coal mine is of high-sulfur or high-ash, supporting facilities for the dressing of coal by
washing shall be installed within a time limit in accordance with the plan approved by the State Council.

“It is prohibited to mine the coal with toxic or harmful substances, such as radioactive and arsenic, that exceed the prescribed limits.”

5. One article is added as Article 25: “People’s governments of large or medium-sized cities shall make plans for people in the urban
areas to use sulfur-fixed briquette of coal as fuel or other clean fuel for cooking ranges, so as to gradually eliminate the direct
use of raw coal as fuel.”

6. One article is added as Article 26: “To establish a heat-engine plant within the urban areas of a city, both heating and electricity
shall be generated where it is necessary and conditions permit, and construction and acceptance for use of the network of pipelines
for heat supply shall be arranged in step with that of the main project of the plant.”

7. One article is added as Article 27: “The environmental protection department under the State Council together with relevant department
under the State Council may, in light of the meteorological, topographical, soil and other natural conditions, delimit the areas
where acid rain has occurred or will probably occur and areas that are seriously polluted by sulfur dioxide as acid rain control
areas and sulfur dioxide pollution control areas, subject to approval by the State Council.

“With respect to the heat-engine plants and other large or medium-sized enterprises in the acid rain control areas or sulfur dioxide
pollution control areas that discharge sulfur dioxide, if they are newly-built construction projects which cannot use low-sulfur
coal, supporting facilities for desulphurization and dust removal must be installed or other measures for control of the discharge
of sulfur dioxide or for dust removal adopted; if they are established enterprises which do not use low-sulfur coal, measures for
control of discharge of sulfur dioxide or for dust removal shall be adopted. The State encourages enterprises to adopt advanced technology
for desulphurization and dust removal.

“Enterprises shall gradually adopt measures to control the nitrogen oxide generated by the burning of coal.”

8. One article is added as Article 36: “Operators of the catering trade in urban areas must observe the regulations of the State Council
on the administration of environmental protection in relation to the catering trade, and adopt measures to prevent and control the
pollution caused by lampblack to the residential environment in the neighbourhood.”

9. One article is added as Article 38: “The State encourages and supports the production and use of high-grade, unleaded gasoline
and restricts the production and use of leaded gasoline.

“Relevant competent departments under the State Council shall make plans for gradually reducing the production of leaded gasoline
so as finally to stop the production and use of leaded gasoline.”

10. One article is added as Article 40: “Whoever, in violation of the provisions of Article 15 of this Law produces, sells, imports
or uses the equipment that is prohibited to produce, sell, import or use or employs the techniques that are prohibited to employ
shall be ordered to make rectification by the competent department for comprehensive economic and trade affairs of the people’s government
at or above the county level; if the circumstances are serious, the said competent department shall put forward suggestions thereon
and submit them to the people’s government at the corresponding level, which shall, according to the limits of authority prescribed
by the State Council, order the offender to suspend operation or close down.”

11. The post_title of Chapter III is revised as follows: “Prevention and Control of Atmospheric Pollution by the Burning of Coal”.

This Decision shall go into effect as of the date of promulgation.

The Law of the People’s Republic of China on the Prevention and Control of Atmospheric Pollution shall be revised correspondingly
in accordance with this Decision and shall be republished.

REGULATIONS ON EXPORT CONTROL OF MISSILES AND MISSILE-RELATED ITEMS AND TECHNOLOGIES

Regulations of the People’s Republic of China on Export Control of Missiles and Missile-related Items and Technologies

Article 1 These Regulations are formulated for the purposes of strengthening export control of missiles and missile-related items
and technologies, and safeguarding the State security and social and public interests.

Article 2 The export of missiles and missile-related items and technologies referred to in these Regulations means the export for trade of
missiles and missile-related equipment, materials and technologies listed in “The Missiles and Missile-related Items and Technologies
Export Control List” (hereinafter referred to as the Control List) attached to these Regulations, and the gift to, exhibition in,
scientific and technological cooperation with, assistance to, provision of service for as such and other forms of technological transfer
thereof to foreign countries and regions.

Article 3 The State shall exercise strict control on the export of missiles and missile-related items and technologies so as to prevent the
proliferation of missiles and other delivering systems listed in the Control List that can be used to deliver weapons of mass destruction.

Article 4 The State shall practice a licensing system for the export of missiles and missile-related items and technologies. Without being
licensed, no unit or individual shall export missiles and missile-related items and technologies.

Article 5 The export of items and technologies listed in Part I of the Control List shall be subject to the Regulations of the People’s Republic
of China on Administration of Arms Export and other relevant provisions.

To export items and technologies listed in Part II of the Control List (hereinafter referred to as missile-related items and technologies),
the exporter shall follow the examination and approval procedures provided for in Articles 7 to 13 of these Regulations; however,
the export of missile-related items and technologies for military purpose shall be subject to the provisions of the preceding paragraph.

Article 6 The receiving party of missile-related items and technologies shall guarantee not to use missile-related items and technologies supplied
by China for purposes other than the declared end-use, nor to transfer missile-related items and technologies supplied by China to
any third party other than the declared end-user without the consent of the Chinese Government.

Article 7 Exporters of missile-related items and technologies shall register themselves with the competent department in charge of foreign
economic relations and trade of the State Council (hereinafter referred to as the competent foreign economic and trade department
of the State Council). Without such registration, no unit or individual shall export missile-related items and technologies. The
specific measures for such registration shall be formulated by the competent foreign economic and trade department of the State Council.

Article 8 Anyone who intends to export missile-related items and technologies shall apply to the competent foreign economic and trade department
of the State Council, fill in the export application form for missile-related items and technologies (hereinafter referred to as
the export application form), and submit the following documents:

(1) identification of the applicant’s legal representative, chief managers and the persons handling the deal;

(2) duplicates of the contract or agreement;

(3) technical specifications of the missile-related items and technologies;

(4) certificates of the end-user and end-use;

(5) documents of guarantee as defined in Article 6;

(6) other documents as may be required by the competent foreign economic and trade department of the State Council.

Article 9 An applicant shall truthfully fill in the export application form.

Export application forms shall be uniformly produced by the competent foreign economic and trade department of the State Council.

Article 10 The competent foreign economic and trade department of the State Council shall, from the date of receiving the export application
form and the documents set forth in Article 8 of these Regulations, examine the application, or examine the application jointly with
other relevant departments of the State Council and relevant departments of the Central Military Commission, and make a decision
of approval or denial within 45 working days.

Article 11Where the export of missile-related items and technologies entails significant impact on the State security, social and public interests,
the competent foreign economic and trade department of the State Council shall, jointly with relevant departments, submit the case
to the State Council and the Central Military Commission for approval.

Where the export of missile-related items and technologies is submitted to the State Council and the Central Military Commission for
approval, the timing restriction set forth in Article 10 of these Regulations shall not be applied.

Article 12 Where an application for the export of missile-related items and technologies is examined and approved, the competent foreign economic
and trade department of the State Council shall issue a licence for the export of missile-related items and technologies (hereinafter
referred to as an export licence), and notify the Customs in writing.

Article 13 An export licence holder who intends to change the missile-related items and technologies originally applied for export shall return
the original export licence and file a new application to obtain a new export licence according to relevant provisions of these Regulations.

Article 14 While exporting missile-related items and technologies, the exporter shall present the export licence to the Customs, complete the
customs procedures and accept supervision and control of the Customs in accordance with the provisions of the Customs Law.

Article 15 Where the receiving party contravenes the guarantees made according to the provisions of Article 6 of these Regulations or there
is a risk of proliferation of missiles and other delivering systems listed in the Control List that can be used to deliver weapons
of mass destruction, the competent foreign economic and trade department of the State Council shall suspend or revoke the export
licence granted and notify the Customs in writing.

Article 16 Where the exporter knows or should know that the missile-related items and technologies to be exported will be used by the receiving
party directly in its program for developing missiles and other delivering systems listed in the Control List that can be used to
deliver weapons of mass destruction, the export shall be subject to the provisions of these Regulations even if the items or technologies
are not listed in the Control List.

Article 17 Upon approval by the State Council and the Central Military Commission, the competent foreign economic and trade department of the
State Council may, jointly with relevant departments, temporarily decide to exercise export control on specific items and technologies
other than those listed in the Control List in accordance with the provisions of these Regulations.

Article 18 Those who export missile-related items and technologies without being licensed, or export missile-related items and technologies
beyond the scope of the export licence without authorization, shall be investigated for criminal liability in accordance with the
provisions of the criminal law on the crime of smuggling, the crime of illegal business operations, the crime of divulging State
secrets or other crimes; if such acts are not serious enough for criminal punishment, by distinguishing different circumstances,
they shall be punished in accordance with relevant provisions of the Customs Law, or be given a warning, confiscated of their illegal
income, and fined not less than one time but not more than five times the illegal income by the competent foreign economic and trade
department of the State Council; the competent foreign economic and trade department of the State Council may concurrently suspend
or even revoke the licensing for their foreign trade operations.

Article 19 Those who forge, alter, buy or sell the licence for the export of missile-related items and technologies shall be investigated for
criminal liability in accordance with the provisions of the criminal law on the crime of illegal business operations or the crime
of forging, altering, buying or selling official documents, certificates or seals of a State organ; if such acts are not serious
enough for criminal punishment, they shall be punished in accordance with relevant provisions of the Customs Law, and the competent
foreign economic and trade department of the State Council may concurrently revoke the licensing for their foreign trade operations.

Article 20 Where a license for the export of missile-related items and technologies is obtained by fraud or other illegal means, the competent
foreign economic and trade department of the State Council shall revoke such an export license, confiscate the illegal income, impose
a fine of not more than the illegal income, and suspend or even revoke the licensing for their foreign trade operations.

Article 21 Where, in violation of Article 7 of these Regulations, the export of missile-related items and technologies is operated without registration,
the competent foreign economic and trade department of the State Council shall ban such illegal activities according to law, and
relevant competent departments of the State shall impose punishment thereon in accordance with relevant laws and administrative regulations.

Article 22 Where the State functionaries in charge of control on the export of missile-related items and technologies abuse their powers, neglect
their duties or extort or accept money or properties from others by taking advantage of their positions, they shall be investigated
for criminal liability in accordance with the provisions of the criminal law on the crime of abuse of power, the crime of neglect
of duties, the crime of accepting bribes and other crimes; if such acts are not serious enough for criminal punishment, they shall
be given administrative sanctions according to law.

Article 23 In light of actual situations, the competent foreign economic and trade department of the State Council may, jointly with relevant
departments, amend the Control List and submit it to the State Council and the Central Military Commission for approval before implementation.

Article 24 These Regulations shall be effective as of the date of promulgation.

ANNEX

THE MISSILES AND MISSILE-RELATED ITEMS AND TECHNOLOGIES EXPORT CONTROL LIST

1. INTRODUCTION

(1) Part 1 of this List includes missiles and other delivery systems (including ballistic missiles, cruise missiles, rockets and unmanned
air vehicles) as well as their specially designed items and technologies. Part 2 includes items and technologies related to Item
1 of Part 1.

(2) If a Part 1 item is included in a system, that system will also be considered as a Part 1 item, except when the incorporated item
cannot be separated, removed or duplicated and the system is designed for civilian uses, where the item will be considered as a Part
2 item.

(3) All items listed in this List include their directly related technologies.

2. DEFINITIONS

For the purpose of this List, the following definitions apply:

(1) “Technology” means specific information which is required for the “development”, “production” or “use” of a product. The information
may take the form of “technical data” or “technical assistance”. But “technology” does not include technology “in the public domain”
nor “basic scientific research”.

(a) “In the public domain” as it applies to this List means technology which has been made available without restrictions upon its
further dissemination. (Copyright restrictions do not remove technology from being “in the public domain”.)

(b) “Basic scientific research” means experimental or theoretical work undertaken principally to acquire new knowledge of the fundamental
principles of phenomena and observable facts, not primarily directed towards a specific practical aim or objective.

(2) “Development” is related to all phases prior to “production” such as:

(a) Design

(b) Design research

(d) Design concepts

(e) Assembly and testing of prototypes

(f) Pilot production schemes

(g) Design data

(h) Process of transforming design data into a product

(i) Configuration design

(j) Integration system design

(k) Layouts

(3) “Production” means all production phases such as:

(a) Production engineering

(b) Manufacture

(d) Assembly

(e) Inspection

(f) Testing

(g) Quality assurance

(4) “Use” means:

(a) Operation

(b) Installation (including on-site installation)

(d) Repair

(e) Overhaul

(f) Refurbishing

(5) “Technical data” may take forms such as:

(a) Blueprints

(b) Plans

(d) Models

(e) Formulae

(f) Engineering designs and specifications

(g) Manuals and instructions written or recorded on other media or devices such as disk, tape, read-only memories.

(6) “Technical assistance” may take forms such as:

(a) Instruction

(b) Skills

(d) Working knowledge

(e) Consulting services

(7) “Production facilities” means equipment and specially designed software therefor integrated into installations for “development”
or for one or more phases of “production”.

(8) “Production equipment” means tooling, templates, jigs, mandrels, moulds, dies, fixtures, alignment mechanisms, test equipment,
other machinery and components therefor, limited to those specially designed or modified for “development” or for one or more phases
of “production”.

PART I

1. Complete ballistic missiles, space launch vehicles, sounding rockets, cruise missile and unmanned air vehicles that can be used
to deliver at least a 500 kg payload to a range of at least 300 km as well as the specially designed production facilities therefor.

2. The following items usable in the systems in Item 1:

(1) Individual stages of a ballistic missile;

(2) Individual stages of a rocket;

(3) Reentry vehicles of missiles;

(4) Heat shields and components fabricated of ceramic materials used in Subitem (3);

(5) Heat shields and components fabricated of ablative materials used in Subitem (3);

(6) Heat sinks and components fabricated of light-weight, high heat capacity materials used in Subitem (3);

(7) Electronic equipment specially designed for Subitem (3);

(8) Storable liquid propellant rocket engines, having a thrust force of 90 kN or greater;

(9) Solid propellant rocket engines, having a total impulse capacity of 1100 kN s or greater;

(10) Guidance sets capable of achieving system accuracy of 10 km or less (CEP) for ballistic missiles with a range of 300 km;

(11) Thrust vector control sub-systems;

(12) Warhead safing, arming, fuzing, and firing mechanisms;

(13) Production facilities and equipments designed for Subitems (1) to (12).

3. Interstage mechanisms for space launch vehicles and the specially designed production equipment therefor.

4. Rocket motor cases and the specially designed production equipment therefor.

5. Hydraulic, mechanical, electro-optical, or electro-mechanical flight control systems specially designed or modified for the systems
in Item 1 of Part I.

6. Attitude control equipment specially designed or modified for the systems in Item 1 of Part I.

7. Design technology for integration of air vehicle fuselage, propulsion system and lifting control surfaces to optimize aerodynamic
performance throughout the flight regime of an unmanned air vehicle.

8. Design technology for integration of the guidance, flight control, and propulsion data into a flight management system for optimization
of trajectory of ballistic missiles or space launch vehicles.

9. Passive interferometer equipment usable in the systems in Item 1.

10. Apparatus and devices designed or modified for the handling, control, activation and launching of the systems in Item 1.

11. Vehicles designed or modified for the transport, handling, control, activation and launching of the systems in Item 1.

12. Gravity meters, gravity gradiometers, and specially designed components therefor, for airborne or marine use, and having a static
or operational accuracy of one milligal or better, with a time to steady-state registration of two minutes or less;

13. Precision tracking systems:

(1) Tracking systems which use a translator installed on the rocket system or unmanned air vehicle in conjunction with either surface
or airborne references or navigation satellite systems to provide real-time measurements of in-flight position and velocity;

(2) Software which processes post-flight, recorded data, enabling determination of vehicle position throughout its flight path.

14. Structure specially designed for reduced radar reflectivity.

15. Structural material specially designed for reduced radar reflectivity.

16. Coatings specially designed for reduced radar reflectivity.

17. Coatings specially designed for reduced optical reflectivity or emissivity.

18. Production equipment, technology and specially designed software usable in Items 14 to 17 above.

19. Technology and specially designed software for reduced radar reflectivity, ultraviolet/infrared signatures or acoustic signatures.

PART II

1. Reentry Vehicle Components and Technology Thereof

(1) Design and manufacturing technology for ceramic heat shields;

(2) Design and manufacturing technology for ablative heat shields;

(3) Design and manufacturing technology for heat sinks and components thereof;

(4) Structure for protection against electromagnetic pulse (EMP) and X-rays and shock wave and combined blast and thermal effects:

(a) Radiation-hardened microcircuits and detectors;

(b) Hardened radome structure designed to withstand a combined thermal shock greater than 418 J/cm2 accompanied by a peak over pressure
of greater than 50 kPa.

(5) Design technology for radiation hardenning;

(6) Design technology for hardened structure.

2. Propulsion Components and Technology Thereof

(1) Lightweight turbojet engines that are small and fuel efficient;

(2) Lightweight turbofan engines that are small and fuel efficient;

(3) Lightweight turbocompound engines that are small and fuel efficient;

(4) Ramjet engines;

(5) Scramjet engines;

(6) Pulse jet engines;

(7) Combined cycle engines;

(8) Devices to regulate combustion for the above Subitems (4) to (7);

(9) Liquid and slurry propellant control systems, and specially designed components thereof, designed or modified to operate in vibration
environments of more than 10 g (RMS) between 20 Hz and 2,000 Hz:

(a) Servo valves designed for flow rates of 24 liters per minute or greater, at an absolute pressure of 7,000 kPa or greater, that
have an actuator response time of less than 100 microseconds;

(b) Pumps, for liquid propellants, with shaft speeds equal to or greater than 8,000 RPM or with discharge pressures equal to or greater
than 7,000 kPa.

(10) Production facilities specially designed for the above Subitems (1) to (9).

3. Liquid Propellants

(1) Hydrazine with a concentration of more than 70 percent;

(2) Unsymmetric dimethylhydrazine (UDMH);

(3) Monomethylhydrazine (MMH);

(4) Mixed amine;

(5) Dinitrogen tetroxide;

(6) Red Fuming Nitric Acid.

4. Solid Propellant and Propellant Constituents

(1) Metal fuels with particle sizes less than 500 mm, whether spherical, atomized, spheroidal, flaked or ground, consisting of 97
percent by weight or greater of any of the following metal and alloys of these:

(a) Zirconium;

(b) Boron;

(d) Titanium;

(e) Uranium;

(f) Tungsten;

(g) Zinc;

(h) Cerium.

(2) Ammonium perchlorate with particle sizes less than 500 mm;

(3) Spherical aluminum powder meeting the following requirements:

(a) With particle of uniform diameter;

(b) With aluminum content of 97 percent or greater;

(4) Boron Slurry, having an energy density of more than 40 x 106 J/kg;

(5) Nitro-amines:

(a) Cyclotetramethylene-tetranitramene (HMX);

(b) Cyclotrimethylene-trinitramine (RDX).

(6) Composite Propellants:

(a) Molded colloid propellants;

(b) Propellant including nitrate bonding agents and with an aluminum (particle) content of 5 percent or greater.

(7) Polymeric substances:

(a) Carboxl-terminated polybutadiene (CTPB);

(b) Hydroxy-terminated polybutadiene (HTPB).

(8) Triethylamine as an igniting agent.

5. Guidance and Control Set, Components and Related Technologies

(1) Gyro-astro compasses and other devices which derive position or orientation by means of automatically tracking celestrial bodies
or satellites;

(2) Flight control software and related test software;

(3) Gyro stability platform;

(4) Automatic pilots for UAV;

(5) Gyros with a rated drift rate stability of less than 0.5 degree per hour;

(6) Test table for inertial platform (including high-accuracy centrifuges and rotating table);

(7) Inertial Measurement Unit (IMU) tester;

(8) Inertial Measurement Unit (IMU) stable element handling fixture;

(9) Inertial Measurement Unit (IMU) platform balance fixture;

(10) Tester for gyro tuning;

(11) Tester for gyro dynamic balance;

(12) Gyro run-in/motor test station;

(13) Gyro evacuation and filling station;

(14) Centrifuge fixture for gyro bearings;

(15) Rectangular scatterometer for ring laser gyro production;

(16) Polarity scatterometer for ring laser gyro production;

(17) Reflectometer for ring laser gyro production;

(18) Surface profilometer for ring laser gyro production;

(19) Accelerometers with a proportional error of 0.25 percent or less;

(20) Accelerometer test station;

(21) Accelerometer axis align station;

(22) Specially designed test, calibration, and alignment equipment for gyro or accelerometer.

6. Target Detection System and Related Electronics

(1) Radar systems;

(2) Altimeters;

(3) Terrain contour mapping equipment;

(4) Scene mapping and correlation (both digital and analog) equipment;

(5) Imaging sensor equipment;

(6) Processors and software specially designed for processing navigation information;

(7) Electronic devices and components removed of conductive heat;

(8) Radiation-hardened electronic devices and components;

(9) Electronic assemblies and components operating at temperatures in excess of 125 C for a short period of time;

(10)Electronic devices and components with specially designed integrated support;

(11) Telemetry equipment and related technologies;

(12) Telemetering and telecontrol ground equipment;

(13) Analogue computers and digital computers having either of the following characteristics:

(a) Rated for continuous operation at temperatures from below minus 45 C to above plus 55 C;

(b) Designed as ruggedized or radiation hardened.

(14) Analogue-to-digital converter having one of the following characteristics:

(a) Rated for operation at temperatures from below minus 54 C to above plus 125 C, and

(b) Designed to meet military specifications for ruggedized equipment; or

(c) Designed or modified for military use or designed as radiation hardened, and having one of the following characteristics:

Converting at a rate of over 200000 times (complete conversion) per second under rated accuracy;

With accuracy exceeding 1/10000 of the whole range in the rated temperature scope;

With quality factor of over 1 108 (complete conversion times per second divided by accuracy);

The inbuilt microcircuits having the following characteristics:

(A) The maximum converting time is less than 20 microseconds under maximum resolution, and

(B) The rated nonlinearity is better than 0.025 percent of the range in rated temperature scope.

(15) Design technology for protection of avionics and electrical subsystems against electromagnetic pulse and electromagnetic interference
hazards from external sources:

(a) Design technology for shielding systems;

(b) Design technology for the configuration of hardened electrical circuits and subsystems;

7. Material

(1) Structural composites, including composite structures, laminates, and manufactures thereof, and resin impregnated fibre prepregs
and metal coated fibre preforms therefor, made with either organic matrix or metal matrix utilizing fibrous or filamentary reinforcements
having a specific tensile strength greater than 7.62 x 104 m and a specific modulus greater than 3.18 x 106 m:

(a) Polyimide composite;

(b) Polyamide composite;

(d) Quartz-fibre-reinforced composite;

(e) Carbon-fibre-reinforced composite;

(f) Boron-fibre-reinforced composite;

(g) Magnesium matrix composite;

(h) Titanium matrix composite.

(2) Ceramic composite materials with dielectric constant less than 6 at frequencies from 100 Hz to 10,000 MHz;

(3) Fine grain bulk artificial graphites having the following features measured at 20 C:

(a) With a bulk density of at least 1.72 g/cm3;

(b) With a tension rupture strain of at least 0.7 percent;

(4) Resaturated pyrolized carbon-carbon materials;

(5) Special Steel:

Titanium-stabilized duplex stainless steel (Ti-DSS) having the following characteristics:

(a) Containing 17.0 to 26.5 weight percent chromium and 4.5 to 7.0 weight percent nickel;

(b) Having a ferritic-austenitic microstructure (also referred to as a two-phase microstructure) of which at least 10 percent is austenite
by volume;

Ingots or bars having a size of 100 mm or more in each dimension;

Sheets having a width of 600 mm or more and a thickness of 3 mm or less;

Tubes having an outer diameter of 600 mm or more and a wall thickness of 3 mm or less.

(6) Ceramic heat shielding material;

(7) Ablative heat shielding material.

8. Design and Test Equipment and Technologies Related to Ballistic Missiles and Rockets

(1) Specially designed software, or analogue and digital computers thereof, for modeling, simulation, or design integration of the
systems;

(2) Vibration test systems capable of providing a force of 100kN or more and incorporating a digital controller, as well as specially
designed vibration test auxiliaries and software;

(3) Wind-tunnel for supersonic (Mach 1.4 to 5) or hypersonic (Mach 5 to 15) speeds except those specially designed for teaching and
those with the test area dimensions smaller than 25 cm (measured internally);

(4) Test benches which have the capacity to handle solid or liquid propellant rocket motors of more than 90 kN of thrust, or which
are capable of simultaneously measuring the three axial thrust components.

9. Production Equipment and Production Technology

(1) Equipment for production of solid propellants listed in Item 4 of Part II:

(a) Batch mixers having:

A total volumetric capacity of 110 litres or more; and

At least one mixing/kneading shaft mounted off centre.

(b) Continuous mixers having:

Two or more mixing/kneading shafts; and

Capability to open the mixing chamber.

(d) Fluid energy mills;

(e) Handling equipment for production of solid propellant;

(f) Curing equipment for production of solid propellant;

(g) Casting equipment for production of solid propellant;

(h) Pressing equipment for production of solid propellant;

(i) Acceptance testing equipment for production of solid propellant;

(j) Machining equipment for production of solid propellant;

(k) Extruding equipment for production of solid propellant.

(2) Equipment for producing liquid propellant in Item 3 of Part II:

(a) Handling equipment for production of liquid propellant;

(b) Production equipment for liquid propellant;

(3) Pyrolytic deposition and densification equipment and technology

(a) Technology for producing pyrolytically derived materials formed on a mould, mandrel or other substrate from precursor gases which
decompose at temperatures from 1,300 C to 2,900 C and at pressures of 130 Pa to 20 kPa, including technology for the composition
of precursor gases, flow-rates and process control schedules and parameters;

(b) Specially designed nozzles for the above processes;

Maximum working pressure of 69 MPa or greater;

Designed to achieve and maintain a controlled thermal environment of 600 C or greater, and

Possessing a chamber cavity with an inside diameter of 254 mm or greater.

(d) Chemical vapor deposition furnaces for the densification of carbon-carbon composites;

(e) Pyrolytic deposition and densification process controls equipment and specially designed software therefor.

(4) Equipment and technology for production of composite component:

(a) Filament winding machines coordinated and programmed in three or more axes, and specially designed computers and software thereof;

(b) Tape-laying machines coordinated and programmed in two or more axes, and specially designed software thereof;

(d) Technical data and procedures for the regulation of temperature, pressures or atmosphere in autoclaves or hydroclaves;

(e) Equipment for converting polymeric fibres (such as polyacrylonitrile, rayon or polycarbosilane) including special provision to
strain the fibre during heating;

(f) Equipment for the vapor deposition of elements or compounds on heated filament substrates;

(g) Equipment for the wet-spinning of refractory ceramics (such as aluminium oxide);

(h) Equipment for special fibre surface treatment;

(i) Equipment for producing prepregs and preforms;

(j) Moulds, mandrels, dies, fixtures and tooling for the preform pressing, curing, casting, sintering or bonding of composite structures,
laminates and manufactures thereof.

Source:MOFTEC

OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION ON TAX TREATMENT TOWARDS INCOME FROM RELOCATION COMPENSATION RECEIVED BY ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES

The State Administration of Taxation

Official Reply of the State Administration of Taxation on Tax Treatment towards Income from Relocation Compensation Received by Enterprises
with Foreign Investment and Foreign Enterprises

The State Administration of Taxation

January 29, 2003

Guangdong State Tax Bureau:

Your Request for Exemption of Enterprise Income Tax on the Income of Relocation Compensation Received by ShanWeiJianSheng Abalone
Company Ltd (YueGuoShuiFa [2002] No.321) has been duly received. The Official Reply is hereby made, after discussion, on tax treatment
towards the income from relocation compensation received by an enterprise with foreign investment or a foreign enterprise (hereinafter
referred to as the “Enterprise”) for relocation due to various reasons:

For the Enterprise receiving income from relocation compensation, where after relocation, which will re-purchases or builds fixed
assets same or similar to those before relocation (hereinafter referred to as the “replacement fixed assets”), the surplus reached
after deducting depreciated net value of the various dismantled fixed assets and disposal expenses thereof from the amount of above
income of relocation compensation plus proceeds realized in sales of the various dismantled fixed assets shall be used to set-off
the original price of the replacement fixed assets of the Enterprise.

II.

For the Enterprise receiving income of relocation compensation, where after relocation, which will no longer re-purchases or builds
fixed assets same or similar to those before relocation, then the surplus reached after deducting depreciated net value of the various
dismantled fixed assets and disposal expenses thereof from the amount of above income of relocation compensation plus proceeds realized
in sales of the various dismantled fixed assets shall be listed in the taxable income of the Enterprise in current period, upon which
Enterprise income tax shall be paid after calculation, according to Article 44 of the Rules of Implementation of the Income Tax
Law of the Enterprises with Foreign Investment and Foreign Enterprises of the People’s Republic of China.

The State Administration of Taxation
2003-01-29

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE CONCERNING THE SALE AND PURCHASE OF FOREIGN EXCHANGE FOR THE NON-TRADE ITEMS UNSPECIFIED IN THE LAWS AND REGULATIONS CURRENTLY IN FORCE

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange Concerning the Sale and Purchase of Foreign Exchange for the Non-trade Items
Unspecified in the Laws and Regulations Currently in Force

HuiFa [2003] No.35

March 6, 2003

Branches and Foreign Exchange Administration Offices under the State Administration of Foreign Exchange at levels of provinces, autonomous
regions and municipalities directly under the Central Government, and branch administrations of Shenzhen, Dalian, Qingdao, Xiamen,
Ningbo; and Sino-capital designated banks of foreign exchange:

For the purpose of improving the administration on foreign exchange for non-trade items, settling the issues on sale and purchase
of foreign exchange for the non-trade items unspecified in the laws or regulations currently in force, and providing conveniences
for the real economic and trading activities of domestic organizations, the State Administration of Foreign Exchange decided to classifiably
administrate the non-trade items unspecified in the laws and regulations currently in force concerning foreign exchange administration
in accordance with the prospective provisions of the Regulations of the People’s Republic of China on Administration of Foreign Exchange,
the Administrative Provisions on Settlement, Sale and Purchase of Foreign Exchange, the Circular Concerning Submission of Taxation
Certificates for Sales and Purchase of Foreign Exchange under the Non-Trade Items and Partial Capital Items. A Circular on relative
issues is hereby distributed:

For the sale/purchase of foreign exchange for a non-trade item unspecified in the laws and regulations currently in force, which sum
equivalent is no more than $50,000 (including $50,000), domestic organization may directly perform the transaction directly with
the designated bank of foreign exchange by presenting correlative documents, and the banks shall perform the sale/purchase after
verifying the authenticity. For the sale/purchase of foreign exchange for a non-trade item unspecified in the laws and regulations
currently in force, which sum equivalent is over $50,000 and no more than $500,000 (including $500,000), the domestic organization
shall apply to the branches of the State Administration of Foreign Exchange (hereinafter referred to as AFE). After obtaining the
verification certificate for the authenticity, the organization may make transactions with the designated bank of foreign exchange
by presenting the verification certificate issued by the AFE. For the sale/purchase of foreign exchange under non-trade items unspecified
in the laws and regulations currently in force, which sum equivalent is over $500,000 (excluding $500,000), the domestic organization
shall apply to the local AFE by presenting correlative documents for local AFE to report to the SAFE for approval. After being verified
by the SAFE, the organization may perform the sale/purchase of exchange at the designated bank of foreign exchange by presenting
verification certificate from the local AFE.

II.

The credit enterprises with export proceeds in foreign exchange without any violation of correlative regulations on foreign exchange
administration, the influencing importers with biggish import volume within the jurisdiction, and the institutions with frequent
foreign exchange incomes and expenses on non-trades, such as party, governmental and military organizations and scientific research
institutions at State-level, with a approval of the local branch AFE, may transact the sales/purchases of foreign exchange for non-trades
directly with the designated banks of foreign exchange by presenting relative documents, exempt from the limitation for the sum stipulated
in Article 1 of this Circular. The local AFEs may, according to the actual circumstances of local jurisdictions, formulate specific
approval requirements consistent with the provisions in this Article. The AFEs shall inform the local designated banks of foreign
exchange after verifying such domestic organizations, and transmit the list of verified domestic organizations to the Current Account
Transaction Administration Department of the State Administration of Foreign Exchange for record. For any verified domestic organization
in violation of the regulations on foreign exchange administration, the AFE shall notify the designated bank of foreign exchange
to immediately cancel its qualification.

III.

When designated banks of foreign exchange audit the authenticity of the sales/purchases of foreign exchange for non-trade items unspecified
in the laws and regulations currently in force, they shall audit the written applications, contracts/agreements, invoices (payment
notices) and taxation warrants provided by the domestic organizations.

IV.

When the AFEs audit the authenticities of the sales/purchases of foreign exchange for non-trade items unspecified in the laws and
regulations currently in force, they shall audit the written applications, contracts/agreements, invoices (payment notices), taxation
warrants and other relevant documents provided by the domestic organizations. Meanwhile, they shall also enhance the internal controls,
establish and implement an administrative system of authorization by levels, and decide the items with biggish sum or with uncompleted
documents through collective discussions.

When the AFEs and the designated banks of foreign exchange audit the authenticity of the sales/purchases of foreign exchange for non-trade
items unspecified in the laws and regulations currently in force, they shall audit the original documents, indicate the date and
amount of the sales/purchases of foreign exchange on the original documents, seal the documents with official seals, and keep the
copies for 3 years for future reference.

VI.

The designated banks of foreign exchange shall record all the transactions of sales/purchases of foreign exchange for non-trade items
unspecified in the laws and regulations currently in force which have been handled by them, fill in the Registration Form of Sales/Purchases
of Foreign Exchange for Special Non-Trade Items (Attachment) that shall be submitted to local AFEs within the first 5 working days
at the beginning of each quarter and shall be submitted by the local AFEs (foreign exchange administration department) to the State
Administration of Foreign Exchange within the first 10 working days at the beginning of each quarter.

VII.

This Circular shall enter into force as of April 1, 2003.

Each local AFE (foreign exchange administration department) shall transmit this Circular to the central branch offices and foreign-invested
banks immediately within its jurisdiction upon receiving it. Each Sino-capital designated bank of foreign exchange shall transmit
this Circular immediately to its branch banks after receiving it. They shall feedback any problem occurring in the course of implementation
of this Circular immediately to the Current Account Transaction Administration Department of the State Administration of Foreign
Exchange.

Attachment: Registration Form of Sales/Purchase of Foreign Exchange for Special Non-Trade Items (omitted)

The State Administration of Foreign Exchange
2003-03-06

CIRCULAR ON DOING WELL IN ONGOING REGULATORY AND DOVETAILING WORKS UPON CANCELING THE SECOND GROUP OF ADMINISTRATIVE APPROVAL ITEMS AND CHANGING THE MANAGEMENT METHODS OF SOME ADMINISTRATIVE APPROVAL ITEMS

The China Securities Regulatory Commission

Circular on Doing Well in Ongoing Regulatory and Dovetailing Works Upon Canceling the Second Group of Administrative Approval Items
and Changing the Management Methods of Some Administrative Approval Items

ZhengJianFa [2003] No.17

April 1, 2003

Securities regulatory offices, agencies and special agencies, stock exchanges and futures exchanges, Shanghai and Shenzhen Stock Exchanges
Securities Regulatory Agencies, China Association of Securities and China Association of Futures, China Securities Registration and
Settlement Company, and each department of the SCRC:

On March 27, 2003, the State Council promulgated the Decision on Canceling the Second Group of Administrative Approval Items and on
Changing the Management Methods of a Group of Administrative Approval Items (GuoFa [2003] No.5) (hereinafter referred to as the “Decision”).
With a view to carry out and implement the spirits of the Decisions and do well in the ongoing regulatory and dovetailing works upon
cancellation of the second group of administrative approval items and change of management methods of some administrative approval
items, here is to notify you of the following matters:

For the administrative approval items revoked in the Decision (see the attachment), the CSRC and its agencies will no longer accept,
or examine and approve if accepted already.

For the ongoing regulatory and dovetailing works upon cancellation of the relevant administrative approval items, please enforce as
per the ongoing management modes determined in the attachment.

For the change of management methods of some administrative approval items, please do well in the transfer of the relevant works to
the professional associations, put forth the self-disciplinary principles of professional associations, guide them to formulate operational
procedures and establish the self-disciplinary mechanism.

According to the requirements for the Decision and this Circular, please research on and timely cope with the circumstances and problems
that may occur upon the cancellation of the relevant administrative approval items and change of the management methods for some
administrative approval items, earnestly do well in the ongoing regulatory and dovetailing works, and prevent any disconnection in
management. In case of any material circumstance, please report timely to the CSRC.

Attachment:Follow-up and Dovetailing of the Ongoing Management Methods and Work Upon Cancellation of the Second Group of Administrative Approval
Items of China Securities Regulatory Commissionhtm/e03060.htmNo

No.	Item Name Cancelled	Ongoing Management and Work Dovetailing
1	Ratification of A-share settlement banks	The Securities Registration and Settlement Company shall formulate the standards and criteria for ratification of A-share settlement banks
2	Record of the contracts signed between securities companies and depository banks, or chief depository banks	Within seven days upon signature of the contracts with depository banks and chief depository banks, the securities companies shall report the copies of the contracts in question to the CSRC and the local CSRC agency.
3	Record of the contracts signed between settlement companies and settlement banks	The Securities Registration and Settlement Company shall report its sample format of the contracts signed with the settlement banks to the CSRC.
4	Record of the documents of the members assembly of Stock Exchanges	The Stock Exchanges shall within ten working days upon the members assembly of Stock Exchanges submit all the documents and relevant circumstances to the CSRC
5	Record of the business agreements between securities registration and settlement institutions and Stock Exchanges	The securities registration and settlement institutions shall submit the business agreements signed or modified with the Stock Exchanges to the CSRC.
6	Record of the suspension or restoration of the trading of listed securities by Stock Exchanges	The CSRC shall not examine and approve such administrative examination and approval items but strengthen the examination and inspection on the stop or resumption of the listing of the Stock Exchanges
7	Approval of the suspension or restoration of the trading of listed securities by Stock Exchanges	Same as above (ditto)
8	Record of listing agreements	The CSRC shall no longer examine and approve such administrative examination and approval items
9	Record of the internal administrative systems and work procedures of securities registration and settlement institutions on business, finance and security etc	The internal management system and risk prevention system formulated by the securities registration and settlement institutions should be reported to the CSRC.
10	Approval of the period for keeping of original business proofs fixed by securities registration and settlement institutions	Enforced according to Article 53 of the Securities Law of the PRC.
11	Examination and approval for the services provided by Stock Exchanges for the transaction types that are not listed by them	In case of providing services for the transactions types that are not listed on their stock exchanges, the Stock Exchanges shall report the relevant circumstances to the CSRC.
12	Examination and acceptance of the preparation for establishment of securities companies	The CSRC shall no longer examine and approve such administrative examination and approval items
13	Examination and approval of the establishment of securities institutions abroad by non-securities institutions	The CSRC shall no longer examine and approve such administrative examination and approval items
14	Ratification of the change, addition or reduction of representatives, deputy representatives, and staff members of foreign nationalities or from Hong Kong, Macao and Taiwan by the representative offices in China of foreign securities institutions	Upon change, addition or reduction of representatives, deputy representatives, and staff members of foreign nationalities or from Hong Kong, Macao and Taiwan by the representative offices in China of foreign securities institutions, the name list, identity certification and resumes should be reported to the CSRC and the local CSRC agencies
15	Record of the employment of Chinese citizens to be ordinary staff members by the representative offices in China of foreign securities institutions	Ditto
16	Ratification of the representatives and deputy representatives of the representative offices in China of foreign securities institutions	Ditto
17	Examination and approval of the cancellation of securities institutions set up overseas by domestic non-securities institutions	The CSRC shall no longer examine and approve such administrative examination and approval items
18	Recommendation for the securities companies entering the Inter-bank borrowing market	The securities companies may apply for with the Peoples Bank of China or other competent authorities. If the Peoples Bank of China or other competent authorities require for opinions to be issued by the CSRC, the CSRC shall coordinate accordingly
19	Designation of the training institutions of securities practitioners	Handled with according to the relevant provisions of the China Association of Securities
20	Record of the personnel employed by securities intermediary institutions	Handled with according to the relevant provisions of the China Association of Securities
21	Record of the change of employers of securities practitioners	Handled with according to the relevant provisions of the China Association of Securities
22	Record of the part-time jobs in non-commercial institutions of the managerial personnel and fund managers	The fund management companies shall report to the CSRC the part-time jobs in non-commercial institutions of the managerial personnel and fund managers
23	Record of the appointment and dismissal of the assistants to the general manager and department managers of fund management companies and fund trustee departments	The engagement and dismissal of the assistant General Managers and departmental managers of fund management companies and fund custodian departments should be reported together with the submission of the database information for fund supervision
24	Record of the relevant materials of establishment of offices within China by fund management companies	Within 25 working days upon establishing offices in the territory of China, the fund management companies shall report the relevant content, including the time and place for establishing such offices, the responsible persons and contact mode; and the acts of the offices should be undertaken by the fund management companies as a part of the regulations on the fund management companies by the CSRC.
25	Examination and approval for the establishment of futures and investment consultation institutions	The CSRC shall no longer examine and approve such administrative examination and approval items but review and ratify the qualifications of the futures investment advisory institutions for futures investment advisory services, and issue the Qualification Permits for Futures Investment Advisory Services. For the institutions that project to apply for the qualifications for futures investment advisory services, their practitioners shall have obtained the Qualification Certificate for futures investment consultation issued by China Association of Futures
26	Review of the letters of legal advice issued by Chinese lawyers concerning the issuing of stocks and listing overseas by overseas companies involving domestic rights and interests	The CSRC shall no longer examine and approve such administrative examination and approval items
27	Record of the agreements on listing of convertible company bonds	The CSRC shall no longer examine and approve such administrative examination and approval items

INTERIM PROVISIONS ON THE ADMINISTRATION OF INTERNET CULTURE

The Ministry of Culture

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

No. 27

The Interim Provisions on the Administration of Internet Culture, which were examined and adopted at the ministerial affairs meeting
of the Ministry of Culture on March 4, 2003, are hereby promulgated, and shall come into force on July 1, 2003.

Sun Jiazheng, Minister of the Ministry of Culture

May 10, 2003

Interim Provisions on the Administration of Internet Culture

Article 1

The Provisions are formulated in accordance with the Measures on the Administration of Internet Information Services and the relevant
provisions of the state in order to strengthen the administration of Internet culture, guarantee the lawful rights and interests
of Internet cultural entities, and promote the healthy and orderly development of China’s Internet culture.

Article 2

Internet cultural products mentioned in the Provisions mean the cultural products produced, disseminated and circulated through Internet,
which mainly include:

(1)

audio and video products;

(2)

game products ;

(3)

show plays (programs);

(4)

works of art;

(5)

cartoons and other cultural products .

Article 3

Internet cultural activities mentioned in the Provisions mean the activities of providing Internet cultural products and services,
which mainly include:

(1)

the activities of producing, reproducing, importing, wholesaling, retailing, leasing or broadcasting Internet cultural products;

(2)

the on-line acts of publishing cultural products on Internet, or sending cultural products through Internet to such user sides as
computers, fixed telephones, mobile phones, radios, TV sets, game players, etc. for Internet accessing users’ browse, reading, appreciation,
use or downloading;

(3)

the activities of exhibitions and competitions, etc. of Internet cultural products.

Internet cultural activities can be divided into two categories, namely, operational and non-operational. Operational Internet cultural
activities mean the activities of providing Internet cultural products and services to obtain benefits by charging fees from Internet
accessing users or by electronic commerce, advertisement, financial supports, etc. for the purpose of making profits. Non-operational
Internet cultural activities mean the activities of providing Internet accessing users with Internet cultural products and services
not for the purpose of making profits.

Article 4

Internet cultural entity mentioned in the Provisions means the Internet information service provider which is approved by the administrative
department of culture and the administrative organ of telecommunication to engage in Internet cultural activities.

Whoever engages in Internet cultural activities inside the territory of the People’s Republic of China shall abide by the Provisions.

Article 5

People engaging in Internet cultural activities shall abide by the Constitution and the relevant laws and regulations, adhere to the
orientation of serving the people and serving socialism, carry forward fine folk culture, disseminate ideas, morals and scientific,
technical and cultural knowledge beneficial to improving the nationality cultural quality, promoting economic development and social
progress, and enrich the people’s spiritual life.

Article 6

The Ministry of Culture shall be responsible for making guidelines, policies and planning for the development and administration of
Internet culture, supervising the Internet cultural activities nationwide; applying a permit system to operational Internet cultural
entities in accordance with the relevant laws, regulations and rules, applying a record system to non-operational Internet cultural
entities; supervising the contents of Internet culture, and punishing the acts in violation of the relevant regulations of the state.

The administrative department of culture under the people’s government of the province, autonomous region or municipality directly
under the Central Government shall be responsible for the daily administration of Internet cultural activities within its own jurisdiction
and the preliminary examination of the entities that apply to engage in operational Internet cultural activities within its own jurisdiction,
as well as for the examination of the entities that apply to engage in non-operational Internet cultural activities within its own
jurisdiction, and the imposition of punishments on the acts of engaging in Internet cultural activities in violation of the relevant
regulations of the state within its own jurisdiction.

Article 7

Whoever applies to establish an Internet cultural entity shall conform to the relevant provisions in the Measures on the Administration
of Internet Information Services, and shall meet the following conditions:

(1)

having the entity’s name, domicile, organizational structure and articles of association;

(2)

having a well-defined scope of Internet cultural activities;

(3)

having business management staff and professional technicians who have obtained the corresponding qualifications fitting in with the
needs of Internet cultural activities;

(4)

having funds, equipment and work sites fitting in with the needs of Internet cultural activities as well as corresponding management
and technical measures;

(5)

other conditions prescribed in laws and regulations.

For the approval of the establishment of an Internet cultural entity, the applicant shall, in addition to meeting the conditions enumerated
in the preceding paragraph, conform to the planning on the total number, structure and distribution of Internet cultural entities.

Article 8

Whoever applies to establish an operational Internet cultural entity shall file the application to the administrative department of
culture under the people’s government of the province, autonomous region or municipality directly under the Central Government at
its locality. The administrative department of culture under the people’s government of the province, autonomous region or municipality
directly under the Central Government shall, after its consent to it upon preliminary examination, submit the application to the
Ministry of Culture for approval.

Whoever applies to establish a non-operational Internet cultural entity shall file the application to the administrative department
of culture under the people’s government of the province, autonomous region or municipality directly under the Central Government
at its locality. The administrative department of culture under the people’s government of the province, autonomous region or municipality
directly under the Central Government shall, after granting the approval upon examination, submit the application to the Ministry
of Culture for record.

Article 9

Whoever applies to establish an operational Internet cultural entity shall submit the following documents:

(1)

the application letter;

(2)

the written notification on pre-approval of the enterprise name or the business license and the articles of association;

(3)

sources and amount of funds and the documents on proof of the applicant’s credit;

(4)

the documents on proof of qualifications and identity of the legal representative or main responsible persons as well as the main
management staff and professionals;

(5)

the documents on proof of the right to use the work site;

(6)

other documents to be submitted in accordance with the law.

For anyone who applies to establish an operational Internet cultural entity, the administrative department of culture under the people’s
government of the province, autonomous region or municipality directly under the Central Government shall, within 30 days as of the
receipt of the application, give its opinion on preliminary examination; if the application is preliminarily examined as qualified,
the said administrative department shall submit it to the Ministry of Culture for approval; if it is preliminarily examined as unqualified,
the said administrative department shall notify the applicant and state the reason thereof. The Ministry of Culture shall, within
30 days as of the receipt of the opinion on preliminary examination, make a decision on whether to approve the application, and notify
the applicant in writing; if the application is approved, a “Network Cultural Business Permit” shall be issued to the applicant;
if the application is not approved, the reason shall be stated.

Article 10

Whoever applies to establish a non-operational Internet cultural entity shall submit the following documents:

(1)

the application letter;

(2)

the articles of association;

(3)

sources and amount of funds and the documents on proof of the applicant’s credit;

(4)

the documents on proof of qualifications and identity of the legal representative or main responsible persons as well as the main
management staff and professionals;

(5)

the documents on proof of the right to use the work site;

(6)

other documents to be submitted in accordance with the law.

For anyone who applies to establish a non-operational Internet cultural entity, the administrative department of culture under the
people’s government of the province, autonomous region or municipality directly under the Central Government shall, within 30 days
as of the receipt of the application, make a decision on whether to approve the application, and notify the applicant in writing;
if the application is approved, an approval document shall be issued to the applicant; if the application is not approved, the reason
shall be stated.

Article 11

Whoever applies to establish an Internet cultural entity shall, after being approved, bring the “Network Cultural Business Permit”
or approval document to the administrative organ of telecommunication at its locality or the administrative department of information
industry under the State Council to go through the relevant formalities in accordance with the Measures on the Administration of
Internet Information Services.

Article 12

An Internet cultural entity shall, at an eye-catching position on the home page of its website, mark the serial number of the “Network
Cultural Business Permit” issued by the administrative department of culture or the serial number of the approval document, and the
serial number of the permit for business operation issued by the administrative department of information industry under the State
Council or the administrative organ of telecommunication of the province, autonomous region or municipality directly under the Central
Government, or the serial number of the record.

Article 13

Where an Internet cultural entity changes its name or scope of business, or is merged or divided, it shall, in accordance with Articles
8, 9 and 10 of the Provisions, go through the formalities for modification, and bring the “Network Cultural Business Permit” or approval
document issued by the administrative department of culture to go through the corresponding formalities in the local administrative
organ of telecommunication.

Article 14

Where an Internet cultural entity changes its address, legal representative or main responsible person, or terminates the Internet
cultural activities, it shall, within 30 days, go through the formalities for modification or cancellation in the administrative
department of culture under the people’s government of the province, autonomous region or municipality directly under the Central
Government at its locality, and go through the formalities for modification or cancellation of its permit for Internet information
services business operation in the administrative organ of telecommunication of the related province, autonomous region or municipality
directly under the Central Government. An operational Internet cultural entity must, when going through the formalities for modification
or cancellation, report to the Ministry of Culture for record.

Article 15

Where an operational Internet cultural entity fails to carry out Internet cultural activities before the expiry of 180 days as of
the day when it obtains the “Network Cultural Business Permit” and makes the enterprise registration in accordance with the law,
the Ministry of Culture shall, either by itself or upon the request by the administrative department of culture under the people’s
government of the province, autonomous region or municipality directly under the Central Government that handled the original examination,
cancel the “Network Cultural Business Permit”, and meanwhile notify the administrative organ of telecommunication of the related
province, autonomous region or municipality directly under the Central Government.

Where a non-operational Internet cultural entity fails to carry out Internet cultural activities before the expiry of 180 days as
of the day when it obtains the approval document, the administrative department of culture under the people’s government of the province,
autonomous region or municipality directly under the Central Government that handled the original examination shall cancel the approval
document, and meanwhile notify the administrative organ of telecommunication of the related province, autonomous region or municipality
directly under the Central Government.

Article 16

An Internet cultural entity shall, if to import Internet cultural products, report to the Ministry of Culture for examination of the
contents.

The Ministry of Culture shall, within 30 days as of the receipt of the application letter for examination of the contents, make a
decision on whether to approve the application, and notify the applicant. If the application is approved, an approval document shall
be issued to the applicant; if the application is not approved, the reason shall be stated.

Article 17

An Internet cultural entity shall not supply a cultural product containing any of the following contents:

(1)

that which defies the basic principles determined in the Constitution;

(2)

that which endangers the unity of the nation, sovereignty or territorial integrity;

(3)

that which divulges secrets of the State, endangers national security or damages the honor or benefits of the State;

(4)

that which incites the nation hatred or discrimination, undermines the solidarity of the nations, or infringes upon national customs
and habits;

(5)

that which propagates evil cults or superstition;

(6)

that which spreads rumors and disturbs the public order or destroys the public stability;

(7)

that which propagates obscenity, gambling, violence or instigates crimes;

(8)

that which insults or libels others, or infringes upon the lawful rights and interests of others;

(9)

that which endangers public ethics or the fine folk culture;

(10)

that which contains other contents prohibited by laws, administrative regulations or by the state.

Article 18

Where a cultural product supplied by an Internet cultural entity infringes upon the lawful rights and interests of a citizen, legal
person or other organization, the Internet cultural entity shall bear the civil liability in accordance with the law.

Article 19

An Internet cultural entity shall apply a system of examination, under which there shall be special examiners who examine the Internet
cultural products, so as to guarantee the lawfulness of the Internet cultural products. The examiners shall accept trainings and
obtain the corresponding employment qualifications before holding their posts.

Article 20

Where an Internet cultural entity finds that an Internet cultural product it supplies contains any of the contents listed in Article
17 of the Provisions, it shall immediately suspend the supply, reserve the relevant records, and report to the administrative department
of culture under the people’s government of the province, autonomous region or municipality directly under the Central Government
at its locality, and make a copied report to the Ministry of Culture.

Article 21

An Internet cultural entity shall record the contents in the back-up of the cultural products, the time and Internet web address or
domain name of the back-up. The back-up of the records shall be kept for 60 days, and be provided when the relevant department of
the state intends to inquire them in accordance with the law.

Article 22

Whoever engages in operational Internet cultural activities without approval shall be investigated and punished by the administrative
department of culture under the people’s government at the provincial level or above in accordance with Article 17 of the Measures
for Investigating, Punishing, and Banning Business Operation without License.

Whoever engages in non-operational Internet cultural activities without approval shall be ordered by the administrative department
of culture under the people’s government at the provincial level or above to make a correction within a time limit; if it refuses
to make a correction, it shall be ordered to suspend the Internet cultural activities, and be imposed upon a fine of not more than
1,000 Yuan.

Article 23

Whoever engages in operational Internet cultural activities by violating Articles 12, 13, 14, 19 and 20 of the Provisions shall be
warned by the administrative department of culture under the people’s government at the provincial level or above, be ordered to
make a correction within a time limit, and be imposed upon a fine of not more than 5,000 Yuan.

Whoever engages in non-operational Internet cultural activities by violating Articles 12, 13, 14, 19 and 20 of the Provisions shall
be warned by the administrative department of culture under the people’s government at the provincial level or above, be ordered
to make a correction within a time limit, and be imposed upon a fine of not more than 500 Yuan.

Article 24

Where an operational Internet cultural entity supplies Internet cultural products containing any content prohibited by Article 17
of the Provisions, or supplies Internet cultural products not approved by the Ministry of Culture to be imported, it shall be ordered
by the administrative department of culture under the people’s government at the provincial level or above to suspend such supply,
and be imposed upon a fine of not more than 10,000 Yuan if there are no illegal proceeds; or be imposed upon a fine of 1 time or
more but 3 times or less of the illegal proceeds if any, provided that the fine shall not exceed 30,000 Yuan; if the case is serious,
it shall be ordered to cease its business for rectification up to suspension of its “Network Cultural Business Permit”.

Where a non-operational Internet cultural entity supplies Internet cultural products containing any content prohibited by Article
17 of the Provisions, or supplies Internet cultural products not approved by the Ministry of Culture to be imported, it shall be
ordered by the administrative department of culture under the people’s government at the provincial level or above to suspend such
supply, and be imposed upon a fine of not more than 1,000 Yuan. If the case is serious, it shall be ordered to cease its business
for rectification up to revocation of its approval document.

Article 25

Whoever violates Article 21 of the Provisions shall be ordered by the administrative organ of telecommunication of the province,
autonomous region or municipality directly under the Central Government to make a correction; if the case is serious, it shall be
ordered by the administrative organ of telecommunication of the province, autonomous region or municipality directly under the Central
Government to cease its business for rectification or to temporarily close its website .

Article 26

The entities that have already engaged in Internet cultural activities in accordance with the relevant provisions of the state prior
to the effectiveness of the Provisions shall, within 60 days as of the effectiveness of the Provisions, make up for the formalities
of examination in accordance with Articles 8, 9 and 10 of the Provisions.

Article 27

The Provisions shall come into force on July 1, 2003.

The Ministry of Culture
2003-05-10

CIRCULAR OF THE MINISTRY OF COMMERCE AND GENERAL ADMINISTRATION OF TAXATION ON STRENGTHENING COORDINATION OF TAXATION AND FOREIGN TRADE AND OVERCOMING THE IMPACTS OF “SARS” EPIDEMICS ON FOREIGN TRADE

The Ministry of Commerce, the General Administration of Taxation

Circular of the Ministry of Commerce and General Administration of Taxation on Strengthening Coordination of Taxation and Foreign
Trade and Overcoming the Impacts of “SARS” Epidemics on Foreign Trade

ShangGuiFa [2003] No.154

June 20, 2003

Foreign economic and trade commissions (departments and bureaus) of provinces, autonomous regions and municipalities directly under
the Central Government and municipalities separately listed on the State plan, as well as the state tax administration:

The occurrence and spreading of the SARS has added many difficulties to the various export enterprises in undertakings of commercial
activities and expansion of exports, which has become the main factor of uncertainty with impacts on the exports of our country.
Therefore, various competent departments of commerce and the state tax administration shall firmly grasp the guiding spirits of the
CPC central Committee and the State Council in balanced focus on the prevention and treatment of the SARS and the economic construction,
unify the thoughts, enhance the understanding, further strengthen the coordination of taxation and foreign trade, and make the utmost
efforts to overcome the adverse effects of the epidemics of the SARS on the export of our country, hence, safeguarding the stable
growth of foreign trade export of the year. Here is to notify you of the following matters:

Further strengthening communications of circumstance and doing well in departmental coordination

(I)

Improving and perfecting the communication mechanism for coordination of foreign trade and taxation and ensuring the accuracy and
smooth flow of information. Further intensifying the contact between the leaders of both parties concerned and their corresponding
workers, taking initiatives in communicating the progress on foreign trade exports and tax reimbursement of exports by various means
and ways of telephone, fax and email, and earnestly investigating and solving the outstanding problems during work. Timely reporting
material emergent incidents and making efforts in treatment.

(II)

Various levels of the competent department of commerce shall closely trace and analyze the impacts of the SARS epidemics on the enterprises
and product exports of our country. Questionnaire investigation should be conducted by various means based on paper, call and computer
networks, thus analyzing the impacts of the SARS epidemics on the various categories of local enterprises and product exports, especially
on the key enterprises of tax reimbursement of exports, timely reporting the relevant information to various levels of tax administrations
to facilitate joint investigation on the countermeasures and policies, thus making great efforts to reduce the impacts of the SARS
epidemics on foreign trade exports as much as possible.

(III)

Various levels of tax administrations shall keep on efforts in promoting the measures for “exemption, credit and reimbursement” of
taxes with the export commodities of production enterprises, timely communicate with the competent departments of commerce of the
same level on the relevant issues, thus jointly overcoming and solving the existing problems.

(IV)

Various levels of the competent department of commerce shall practically promote the production enterprises to speed up the collection
of the documents for tax reimbursement and timely handling with the “exemption, credit and reimbursement” of taxes. Various levels
of state tax administrations shall practically speed up handling with the review and examination on “exemption, credit and reimbursement”
of taxes, thus helping the production enterprises reduce the holding and use of capital.

(V)

Various levels of the competent departments of commerce and state tax administrations shall be increasingly alert and pay close attention
on the new trends of tax frauds, strictly prevent the wrongdoers from any tax frauds by taking chance of the SARS epidemics, and
submit timely reports on any tax fraud cases or clues of material tax frauds.

II.

Making good and sufficient use of the quotas for tax reimbursement of exports and practically accelerating the progress of the tax
reimbursement of exports

(I)

Various levels of the competent departments of commerce shall timely report to the state tax administrations on the corresponding
local exports and demands for tax reimbursement, and various levels of tax administrations shall in such special situation earnestly
do well in the work relating to tax reimbursement of exports, and speed up the progress of tax reimbursement provided all the documents
relating to tax reimbursement and the relevant electronic information are checked free of errors.

(II)

Various state tax administrations of provincial levels shall distribute the plan of tax reimbursement of exports distributed by the
General State Administration of Taxation to prefecture and municipal level and timely reimburse the export enterprises, without any
withholding or delay.

(III)

Various levels of state tax administrations shall make scientific and rational use of the plan of tax reimbursement of exports, and
priority should be taken in handling with the tax reimbursement of exports of key export enterprises, thus enhancing the competitiveness
of their export products in international market, and alleviating and releasing the adverse effects of the SARS on the foreign trade
of China.

III.

Adopting multiple ways to expand export and create benevolent environment

(I)

Various levels of the competent departments of commerce and state tax administrations shall earnestly carry out the spirits of the
Circular of the Peoples Bank of China, the MOFTEC and the General State Administration of Taxation on Handling with the Entrusted
Loan Business of the Accounts for Tax Reimbursement of Exports (Yin Fa [2001] No. 276), timely help solving the problems and difficulties
encountered by the export enterprises in the entrusted loan business of the accounts for tax reimbursement of exports, and take initiative
to coordinate with the local government in doing well in the discounting work relating to the entrusted loans of the accounts for
tax reimbursement of exports.

(II)

Various levels of the competent departments of commerce shall timely report to the commercial banks on the impacts of the SARS on
the foreign trade exports, take initiative too seek for their supports, and promote the export enterprises to obtain the entrusted
loans of the accounts for tax reimbursement of exports in a timely way.

(III)

Various levels of tax administrations shall strengthen communication and coordination with commercial banks, take initiative in coordinating
commercial banks in deployment of the entrusted loans of the accounts for tax reimbursement of exports, thus facilitating commercial
banks in querying about the credit rating of the enterprises involved in tax reimbursement of exports.

(IV)

Establishing convenient and smooth channels and ways for provision of enthusiastic and high efficiency consultation and services.
Patience should be taken in listening the problems reflected and suggestions put forth by the export enterprises, thus earnestly
and carefully answering the promoting the state policies and measures on trade management and tax reimbursement of exports; taking
efforts in protecting he initiatives of the enterprises in expanding exports and helping various categories of export enterprise
overcome the difficulties and problems encountered in production and operations.

(V)

Various levels of the competent department of commerce and state tax administrations shall be united in mutual supports and close
coordination, promote the good traditions of the cooperation of foreign trade and taxation, make efforts to overcome the adverse
impacts of the SARS, and promote the sustaining growth of foreign trade export of our country.

The Ministry of Commerce, the General Administration of Taxation
2003-06-20

CIRCULAR ON STARTING USE OF APPLICATION FORM AND CERTIFICATES OF QUALIFICATIONS OF FOREIGN-INVESTED CONSTRUCTION ENTERPRISES

The Administrative Department of the Construction Market of the Ministry of the Construction

Circular on Starting Use of Application Form and Certificates of Qualifications of Foreign-Invested Construction Enterprises

JianShiGuoHan [2003] No.23

July 17, 2003

The construction departments of provinces and autonomous regions, the construction commissions of municipalities directly under the
Central Government, Construction administrations of Shandong Province and Jiangsu Province, the construction departments of the relevant
authorities of the State Council, the construction bureau of Xinjiang Construction Military Regime and the Engineering Bureau of
Barracks of the General Logistics Department:

According to the provisions of the Regulations on the Qualification Management of Foreign-Invested Construction Enterprises (No. 113
of the Ministry of Construction and the MOFTEC) and Measures of the Ministry of Construction for the Implementation of the Qualification
Management in the Regulations on the Management of Foreign-Invested Construction Enterprises (JianShi [2003] No. 73), the application
for the qualifications of foreign-invested construction enterprises has started. For doing well in the application for the qualifications
of foreign-invested construction enterprises and for facilitating the administrative authorities of construction in supervision management
of foreign-invested construction enterprises, the Ministry of Construction has uniformly formulated and printed the Qualification
Certificate of Construction Enterprises (applicable to wholly foreign-invested, Sino-foreign equity joint venture, and Sino-foreign
cooperative construction enterprises) and the complementary Application Form of Qualifications.

The departments, commissions, authorities mentioned above are requested to strictly perform the examination and approval of the qualifications
of foreign-invested construction enterprises in accordance with the Regulations on Foreign-Invested Construction Enterprises and
No. 87 Decree of the Ministry of Construction, i.e. the Provisions on the Qualification Management of Foreign-Invested Construction
Enterprises, and according to the actual demands for the application of the qualifications of the enterprises, you shall report the
quantity of Qualification Certificate of Construction Enterprises and the Application Form of Qualifications required to Beijing
Banglong Technologies Information Consultancy Co., Ltd. before August 4, so that to facilitate the uniform preparation and printing.
(The Application Form of Qualifications are in four duplicates, and the Qualification Certificates are formulated in one original
and six duplicates. Such set of certificates is attached with the relevant laws, regulations and materials relating to the establishment
of foreign-invested construction enterprises and the qualification applications).

Contact add: Room 501 Huatong Building, 19A Chegongzhuang Road West, Haidian District, Beijing

Post Code: 100044

Contact Person: Liang Yuefeng, Li Zhiyue

Contact Tel: (010)68482596 (010)68482514

Fax: (010)68482514

Email: imr@vip.sina.com

The Administrative Department of the Construction Market of the Ministry of the Construction
2003-07-17

REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON CERTIFICATION AND ACCREDITATION

The State Council

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

No. 390

The Regulations of the People’s Republic of China on Certification and Accreditation, which have been adopted at the 18th executive
meeting of the State Council on August 20, 2003, are hereby promulgated, and shall be implemented as of November 1, 2003.

Wen Jiabao, Premier of the State Council

September 3, 2003

Regulations of the People’s Republic of China on Certification and Accreditation

Chapter I General Principles

Article 1

The present Regulations are hereby formulated With a view to regulating the certification and accreditation activities, improving
the quality of products and services and the level of administration, as well as promoting the economic and social development.

Article 2

The term “certification” as mentioned in the present Regulations refers to the assessment activities carried out by the certification
bodies to testify whether or not the products, services, and management systems are in conformity with the relevant technical norms
and their compulsive requirements or standards.

The term “accreditation” as mentioned in the present Regulations refers to the assessment activities carried out by the accreditation
bodies to recognize the capabilities and qualifications of the certification bodies, inspection organizations and laboratories, and
practicing personnel engaging in such certification activities as the appraisal and examination, etc.

Article 3

Where the certification and accreditation activities are undertaken within the territory of the People’s Republic of China, the present
Regulations shall be observed.

Article 4

The State shall implement a uniform certification and accreditation supervision system.

The State shall apply the working mechanism on certification and accreditation under which all the relevant departments shall implement
the work together under the uniform administration, supervision and comprehensive coordination of the certification and accreditation
administration department of the State Council.

Article 5

The certification and accreditation administration department of the State Council shall strengthen the supervision over and administration
of the activities of the certification training institutions and certification consultation institutions in accordance with the law.

Article 6

The principles of impersonality and independence, openness and justice, and good faith shall be observed in carrying out the certification
and accreditation activities.

Article 7

The State encourages the international mutual recognition activities of certification and accreditation to be carried out on the basis
of equality and mutual benefits. The international mutual recognition activities of certification and accreditation shall not impair
the national security and public interests.

Article 8

The organizations and persons undertaking the certification and accreditation activities shall have the duty to keep the state secrets
and commercial secrets as they well know confidential.

Chapter II Certification Bodies

Article 9

The establishment of a certification body shall be approved by the certification and accreditation administration department of the
State Council, and the certification activities shall be carried out within the scope of approval after the qualification of a legal
entity has been obtained.

Any entity or person may not undertake certification activities without approval.

Article 10

The establishment of a certification body shall meet the conditions as follows:

Having a fixed location and the necessary facilities;

Having an administration system in conformity with the requirements of certification and accreditation;

The registered capital shall not be less than RMB 3 million Yuan; and

There are more than 10 full time certification personnel in the corresponding fields.

Certification bodies undertaking product certification activities shall possess such technical capability for examination and inspection
in conformity with the relevant product certification activities in addition.

Article 11

The establishment of certification bodies with foreign investment shall conform to the following conditions, besides those prescribed
in Article 10 of the present Regulations;

The foreign investors shall have obtained the accreditation of the accreditation organizations in their own countries or districts;

The foreign investors shall have experiences of engaging in certification activities for more than 3 years.

The application, approval and registration for the establishment of certification bodies with foreign investment shall be handled
pursuant to the relevant foreign investment laws, administrative regulations and the pertinent provisions of the State.

Article 12

The procedures for the application and approval of the establishment of a certification body:

The applicants for the establishment of a certification body shall file an application in written form to the certification and accreditation
administration department of the State Council, and shall submit certification documents in conformity with Article 10 of the present
Regulations;

The certification and supervision administration department of the State Council shall, within 90 days as of accepting the application
for the establishment of a certification body, make decisions on whether to approve or not. Where the approval has to do with the
responsibility of the relevant departments of the State Council, the opinions of whom shall be solicited. Where the approval is to
be granted, the document of approval shall be issued to the applicants; where the approval is not to be granted, the applicants shall
be notified in written form and the reason shall be explained; and

The applicants shall go through the registration procedures according to law in accordance with the document of approval issued by
the certification and accreditation administration department of the State Council.

The certification and accreditation administration departments of the State Council shall publicize the directories of the legally
established certification bodies.

Article 13

The representative agency of a foreign certification organization within the territory of the People’s Republic of China shall be
established upon approval, and it may not undertake the popularization activities with respect to the business scope of the organization
it is subordinated after going through the registration procedures at the administration departments for industry and commerce according
to law, but it may not carry out the certification activities.

The application, approval and registration of the representative agency established within the territory of the People’s Republic
of China by the foreign certification organization shall be handled pursuant to the relevant foreign investment laws, administrative
regulations and the pertinent provisions of the State.

Article 14

The certification bodies may not have interests relations of any kind with the administrative departments.

The certification bodies may not accept any grants that may influence the impersonality and justice of the certification activities;
and may not undertake any such activities that may influence the impersonality and justice of the certification activities as the
development and sale of the products, etc.

The certification bodies may not have interests relations of any kind with the certification clients in such aspects as capital and
management.

Article 15

The persons undertaking the certification activities shall practice in one certification body, and are prohibited from practicing
in more than two certification bodies at the same time.

Article 16

The inspection organizations and the laboratories that issue to the public the data and results, which have the function of verification,
shall possess the basic conditions and capabilities as required by the relevant laws and administrative regulations, and may carry
out the relative activities after being recognized in accordance with the law. The results of the accreditation shall be publicized
by the certification and accreditation administration department of the State Council.

Chapter III Certification

Article 17

The State shall popularize the certification on products, services and management systems conforming to the requirements of the economic
and social development.

Article 18

The certification bodies shall carry out the certification activities in light of the basic certification standards and certification
rules, which shall be formulated by the certification and accreditation administration department of the State Council; where the
standards and rules have to do with the functions of the relative departments of the State Council, they shall be formulated by the
certification and accreditation administration department of the State Council together with the relative departments of the State
Council.

Where the certification is in a new field, and no corresponding certification rules have been formulated by the departments as mentioned
in the preceding paragraph, the certification bodies may make certification rules by themselves, which shall be put on records at
the certification and accreditation administration department of the State Council.

Article 19

Any legal entity, organization or individual may entrust a certification body legally established of his own accord to make the certification
on products, services and management systems.

Article 20

No certification bodies may refuse to provide the certification services within the business scope of their own certification bodies
for the reason that the clients fail to take part in the certification consultation or certification training, etc., nor may they
put forward to the clients the requirements or restricted conditions irrespective to the certification activities.

Article 21

The certification bodies shall make public such information as the basic certification standards, certification rules and charging
standards, etc.

Article 22

The certification bodies and the inspection organizations with regard to certification, as well as the laboratories shall, when carrying
out the certification activities and inspection and examination activities with regard to certification, complete the procedures
as prescribed in the basic certification standards and certification rules, in order to ensure the integrity, impersonality and truthfulness
of the certification, inspection and examination, no procedures may be increased, reduced, or omitted.

The certification bodies and inspection organizations with regard to certification, as well as the laboratories shall make full records
on the process of certification, inspection and examination, which shall be kept on file for future reference.

Article 23

The certification bodies and their personnel shall make the certification conclusions in time, and ensure the impersonality and truthfulness
of the certification conclusions, which shall then be subscribed by the person responsible for the certification bodies after being
signed by the certification personnel.

The certification bodies and their personnel shall be responsible for the certification conclusions.

Article 24

Where the products, services, and the management systems are certified as in conformity with the requirements of certification by
the certification conclusions, the certification bodies shall issue the certificate to the clients in good time.

Article 25

Those who have obtained the certificates shall use the certificates and certification marks within the certification scope. No entity
may, by using the product and service certificates, certification marks and the relative characters and symbols, mislead the public
to believe that their management systems have passed the certification; or mislead the public to believe that their products and
services have passed the certification by using the administration system certificates, certification marks and the relative characters
and symbols.

Article 26

The certification bodies may formulate the certification marks by themselves and put them on records at the certification and accreditation
administration department of the State Council.

No style, character or name of the certification marks formulated by the certification bodies themselves may violate the provisions
of laws and administrative regulations, nor may they be the same as or similar to the certification marks already popularized by
the State, nor may they impede social administration, or impair social morals or customs.

Article 27

The certification bodies shall carry out effective following-up investigations on the products, services and management systems certified
by them. Where the products, services and management systems that have been certified fail to meet the requirements of the certification
continuously, the certification bodies shall suspend their use and even revoke the certificates, and make that public.

Article 28

With a view to safeguarding the national security, preventing fraudulent acts, protecting the health or safety of human body, safeguarding
the life or health of animals and plants, and protecting the environments, no products, which must be certified as prescribed by
the State, may leave the factory, or may be sold, imported or used in other business activities until after being certified and labeled
with the certification marks.

Article 29

The State shall, for those products that must be certified, unify the catalogues of products, the compulsive requirements, standards
and conformity assessment procedures of the technical norms, and the marks, as well as the charging standards.

The uniform catalogues of products (hereinafter refers to as the Catalogues) shall be formulated and adjusted jointly by the certification
and accreditation administration department of the State Council and the relevant departments of the State Council, and shall be
publicized by the certification and accreditation administration department of the State Council, and implemented jointly by the
relative departments and institutions.

Article 30

The products listed in the Catalogues must be certified by the certification bodies as designated by the certification and accreditation
administration department of the State Council.

The certification marks of the products listed in the Catalogues shall be prescribed uniformly by the certification and accreditation
administration department of the State Council.

Article 31

Where the products listed in the Catalogues have to do with the catalogues of the import and export commodities inspection, the inspection
procedures shall be simplified when the import and export commodities inspections are made on them.

Article 32

The accreditation bodies, inspection organizations with regard to certification, and the laboratories as confirmed by the certification
and accreditation administration department of the State Council to undertake the certification of products as listed in the Catalogues
(hereinafter referred to as the confirmed certification bodies, inspection organizations, and laboratories) shall be those who have
been undertaking the relative businesses for a long time, have no bad records, and have obtained the accreditation and have the ability
to carry out the relative certification activities according to the present Regulations. When the certification and accreditation
administration department of the State Council is confirming the certification bodies that are to engage in the activities of product
certification as listed in the Catalogues, it shall ensure that at least two bodies that meet the requirements of the present Regulations
are confirmed in each field of products as listed in the Catalogues.

Where the certification and accreditation administration department of the State Council is confirming the certification bodies, inspection
organizations, and laboratories as prescribed in the preceding paragraph, it shall publicize, in advance, the relative information
and organize the recognized experts in the relative fields to form an expert evaluation committee to make evaluations on the certification
bodies, inspection organizations and laboratories that meet the requirements of the preceding paragraph; after the evaluation is
made and the opinions of the relative departments of the State Council is solicited, it shall make the decisions in light of the
principles of making full use of the resources, fair competition, convenience and effectiveness within the time limit of publication.

Article 33

The certification and accreditation administration department of the State Council shall make public the directories of the confirmed
certification bodies, inspection organizations and laboratories, as well as the confirmed business scopes.

No organizations may undertake the certification on the products as listed in the Catalogues, and the examination and inspection activities
in relation to certification without approval.

Article 34

All producers or sellers, and importers of products as listed in the Catalogues may entrust confirmed certification bodies of themselves
to make the certifications.

Article 35

The confirmed certification bodies, inspection organizations and laboratories shall provide convenient and timely services on certification,
examination and inspection within the confirmed business scope. They may not delay, discriminate and create difficulties for the
clients, or seek for improper interests.

Any confirmed certification bodies may not transfer the confirmed certification business to other organizations.

Article 36

The confirmed certification bodies, inspection organizations and laboratories shall carry out the international mutual recognition
activities within the framework of international mutual recognition agreements signed between the certification and accreditation
administration department of the State Council or the relevant authorized departments of the State Council and the foreign countries.

Chapter IV Accreditation

Article 37

The accreditation bodies designated by the certification and accreditation administration department of the State Council (hereinafter
referred to as the “accreditation bodies”) shall carry out the accreditation activities independently.

Any entity other than the accreditation body may not undertake the accreditation activities directly or in a disguised form, the accreditation
result concerned is invalid.

Article 38

The certification bodies, inspection organizations, and laboratories may, through the accreditation made by the accreditation bodies,
keep their capabilities of certification, examination and inspection conforming to the requirements of accreditation continuously
and steadily.

Article 39

The personnel engaging in such certification activities as the appraisal and examination, etc., may not carry out the certification
activities accordingly until being registered by the accreditation bodies.

Article 40

The accreditation bodies shall have the quality system in conformity with their scope of accreditation, and establish the internal
examination system to ensure the implementation of quality system effectively.

Article 41

The accreditation bodies may, according to the requirements of accreditation, select and retain personnel engaging in the accreditation
evaluation activities, who are experts in the relative fields, familiar with the relative laws, administrative regulations and accreditation
rules and procedures, and have good moral character, special knowledge and business ability required for making the evaluation.

Article 42

Where the accreditation bodies entrust others to complete the specific appraisal business in relation to accreditation, they shall
be responsible for the appraisal conclusion.

Article 43

The accreditation bodies shall publicize such information as the conditions, procedures of the accreditation, and the charging standards.

The accreditation bodies may not, when accepting the accreditation applications, propose requirements or restricted conditions irrespective
to the accreditation activities.

Article 44

The accreditation bodies shall complete the evaluation on the certification bodies, inspection organizations and laboratories within
the time limit publicized, in light of the State standards and the provisions of the certification and accreditation administration
department of the State Council, and make decisions on whether or not to grant the accreditation, as well as make full reports on
the accreditation process and put them on record. The accreditation bodies shall ensure the impersonality, justice, integrity and
effectiveness of the accreditation, and shall be responsible for the accreditation conclusions.

The accreditation bodies shall issue the accreditation certificates to the certification bodies, inspection organizations and laboratories
having obtained the accreditation, and have the directories of them publicized.

Article 45

The accreditation bodies shall, in light of the State standards and the provisions of the certification and accreditation administration
department of the State Council, make examinations on the personnel engaging in such certification activities as evaluation and examination,
and make registration for those who pass the examination.

Article 46

The accreditation certificates shall include the scope, standards and fields of accreditation and the period of validity.

The format of the accreditation certificate and the style of the accreditation mark shall be approved by the certification and accreditation
administration department of the State Council.

Article 47

The organizations who have obtained the accreditation shall use the accreditation certificates and marks within the scope of the accreditation
obtained. Where the organizations those have obtained the accreditation use the accreditation certificates and marks improperly,
the accreditation bodies shall suspend the use of the accreditation certificates or even revoke them, and make that public.

Article 48

The accreditation bodies shall implement effective following-up supervision over the organizations or personnel that have obtained
the accreditation, and make re-evaluation periodically on the organizations that have obtained the accreditation, in order to validate
their continuous conformity with the accreditation requirements. Once an organization or person that has obtained the accreditation
no longer meets the accreditation requirements, the accreditation bodies shall revoke their accreditation certificates and make that
public.

The changes in relation to the accreditation requirements as the practicing personnel and the primary responsible person of the organizations
that have obtained the accreditation, their facilities, certification rules formulated by themselves, etc., shall be notified to
the accreditation bodies in good time.

Article 49

Any accreditation bodies may not accept any grants that may influence the impersonality and justice of the accreditation activities.

Article 50

The certification bodies, inspection organizations and laboratories within China, who have obtained the accreditation from foreign
accreditation bodies, shall put that on record at the certification and accreditation administration department of the State Council.

Chapter V Supervision and Administration

Article 51

The certification and accreditation administration department of the State Council shall make supervisions over the certified enterprises
by way of organizing the experts of the same industry to appraise through discussion, soliciting opinions from the certified enterprises,
and making spot-check on the certification activities and certification results, as well as demanding the certification bodies, inspection
organizations, and laboratories in relation to certification to make report on their business activities. In case any act in violation
of the present Regulations shall be investigated into and solved in time, and where the illicit act has to do with the function of
the relative departments of the State Council, the relevant departments shall be informed in time.

Article 52

The certification and accreditation administration department of the State Council shall supervise the confirmed certification bodies,
inspection organizations and laboratories, and inspect their certification periodically or aperiodically, examination and inspection
activities. The confirmed certification bodies, inspection organizations and laboratories shall submit reports periodically to the
certification and accreditation administration department of the State Council, and shall be responsible for the authenticity of
the report. The conditions of certification, inspection and examination on the products listed in the Catalogues shall be explained
in the report.

Article 53

The accreditation bodies shall submit reports periodically to the certification and accreditation administration department of the
State Council, and shall be responsible for the authenticity of the report; there in the report shall be explanations on such conditions
as the implementation of accreditation systems by the accreditation bodies, the undertaking of the accreditation activities and the
work done by the practicing personnel.

The certification and accreditation administration department of the State Council shall make appraisal on the report submitted by
the accreditation bodies, and make supervisions over the accreditation bodies by way of referring to the file data of accreditation,
and inquiring the information from the relative persons.

Article 54

The certification and accreditation administration department of the State Council may, in light of the needs of supervision of the
certification and accreditation, ask the primary responsible persons of the accreditation bodies, certification bodies, inspection
organizations, and the laboratories for information about the relative matters, and give them instructions to correct, and the relative
personnel shall cooperate actively.

Article 55

The quality and technology supervision departments of all provinces, autonomous regions, and municipalities directly under the Central
Government, and the institutions of entry-exit inspection and quarantine established by the departments of the State Council for
quality supervision, inspection and quarantine, shall, pursuant to the present regulations, supervise the accreditation activities
within the authorization of the certification and accreditation administration department of the State Council.

The quality and technology supervision departments of the provinces, autonomous regions, and municipalities directly under the Central
Government, and the institutions of entry-exit inspection and quarantine established by the departments of the State Council for
quality supervision, inspection and quarantine, which are authorized by the certification and accreditation administration department
of the State Council, shall be called by a joint name as the local certification administration departments.

Article 56

Any entity or person is enpost_titled to report an offense on the illicit acts of certification or accreditation of the certification and
accreditation administration department of the State Council and the local certification administration departments, who shall then
make investigations into and handle them in time, and keep confidential for reporter.

Chapter VI Legal Liabilities

Article 57

Any entity or person engaging in the certification activities without approval shall be prohibited and imposed upon a fine ranging
from more than 100 thousand Yuan to less than 500 thousand Yuan, and the illegal gains shall be confiscated if any.

Article 58

Where the foreign certification organizations establish representative offices within the People’s Republic of China without approval,
they shall be prohibited and imposed upon a fine ranging from more than 50 thousand Yuan to less than 200 thousand Yuan, and the
illegal gains shall be confiscated if any.

Where the representative offices of foreign certification organizations established upon approval engage in the certification activities
within the territory of the People’s Republic of China, they shall be ordered to make corrections and be imposed upon a fine ranging
from more than 100 thousand Yuan to less than 500 thousand Yuan, and the illegal gains shall be confiscated if any; where the circumstances
are serious, the documents of approval shall be revoked and publicized.

Article 59

Where the certification bodies accept grants that may influence the impersonality and justice of the certification activities, or
engage in such activities as the development and sales of the products, etc. that may influence the impersonality and justice of
the certification activities, or have interests relations in capitals or management with the certification clients, they shall be
ordered to suspend operation for rectification, where the circumstance is serious, the documents of approval shall be revoked, and
the punishment shall be made public; and the illegal gains shall be confiscated if any; where it constitutes a crime, their criminal
liabilities shall be prosecuted for.

Article 60

Where the certification bodies have any of the following circumstances, they shall be ordered to make corrections, and be imposed
on a fine ranging from more than 50 thousand Yuan to less than 200 thousand Yuan, and the illegal gains shall be confiscated if any;
where the circumstances are serious, they shall be ordered to suspend operation for rectification or even be revoked of the documents
of approval, and the punishment shall be made public:

Carrying out certification activities out of the scope of approval;

Increasing, reducing, or omitting the procedures as prescribed in the basic certification regulations and rules;

Failing to make following-up investigation on their certification products, services and management systems effectively, or failing
to suspend the use of or revoke the certificates and make public the punishment after finding out that their certified products,
services and management systems are unable to meet the requirements of certification; or

Retaining persons who haven’t been registered by the accreditation bodies to undertake the certification activities.

Where the inspection organizations, laboratories in relation to certification increase, decrease or omit the procedures of the basic
certification regulations or rules, they shall be punished pursuant to the preceding paragraph.

Article 61

Where the certification bodies have any of the following circumstances, they shall be ordered to make corrections within a certain
time limit; where they still haven’t made corrections at the expiry of the time limit, they shall be imposed upon a fine ranging
from more than 20 thousand Yuan to less than 100 thousand Yuan:

Refusing to provide the certification services that fall within their business scope for the reason that the clients haven’t taken
part in the certification consultation or certification training, or bringing forward to the clients the requirements or restricted
conditions irrespective to certification activities;

The style, character and name of the self-made certification marks are the same as or similar to the certification marks popularized
by the State, or disturb social administration or impair social m

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON SIMPLIFYING THE VERIFICATION PROCEDURE OF SELL FOREIGN EXCHANGE FOR PAYMENT UNDER THE ITEM OF ADVANCED PAYMENT

State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Simplifying the Verification Procedure of Sell Foreign Exchange for Payment
Under the Item of Advanced Payment

Hui Fa[2003]No.119

October 9,2003

The branches and offices of the State Administration of Foreign Exchange (hereinafter referred to as SAFE) of all provinces, autonomous
regions and municipalities directly under the State Council and cities with separate plans under the state plan, and Chinese-invested
Foreign exchange designated banks,

The SAFE resolved to simplify the verification procedure of sell foreign exchange for payment under the item of advanced payment in
import business in order to meet the need of the new situation after the access of WTO, to strengthen the international competitiveness
of the domestic enterprises and to promote the trade convenience. Related matters are notified as follows:

The import units are allowed to buy the foreign exchange for payment in the designated banks directly based on the contract, the performance
invoice, the verification form of pay-in-foreign-exchange of import and other related documents in the circumstance that the amount
of payment does not exceed US$200,000 or its equivalent, and is allowed not to offer the advanced payment L/G with test key that
is checked by the banks. The import units must buy the foreign exchange for payment in the designated banks based on the contract,
the performance invoice, the verification form of pay-in-foreign-exchange of import and other related documents in the circumstance
that the amount of payment exceeds US$200,000 or its equivalent, and the advanced payment L/G must be offered at the same time.

Domestic foreign-invested enterprises can buy the foreign exchange for payment directly in the designated banks based on the contract,
the performance invoice, the verification form of pay-in-foreign-exchange of import, Foreign Exchange Register of foreign-invested
enterprises or the testimonial offered by the relative corporations or other documents without offering the advanced payment L/G
to pay in advance to its abroad headquarters or the filiale, share-participating corporations or holding corporations established
by the abroad headquarters in the states or regions outside China(besides Hong Kong, Macao and Taiwan ).

Domestic Chinese enterprises can buy the foreign exchange for payment directly in the designated banks based on the contract, the
performance invoice, JKFHHXD, the admission certificate of oversea-invest obtained from the competent commerce authority or the testimonial
offered by the relative corporations or other documents without offering the advanced payment L/G to pay in advance to the abroad
corporations or its filiale, share- participating corporations or holding corporations in the states or regions outside China( besides
Hong Kong, Macao and Taiwan ).

The import unit can report and be kept on record at the branches or offices of the SAFE by offering the contract, custom handbook,
the bill of entry in the term of material processing with the stamp of verification of the custom, B/L, invoice and guarantee of
going through the verification procedure in time in the circumstance of buy the foreign exchange for payment under the item of import
material processing. It can go through the procedure of the verification and of buying the foreign exchange for payment in the designated
banks based on the Record of Payment in Foreign Exchange of Import that obtained by the local departments of foreign exchange and
the certificate of buying the foreign exchange for payment. The branches and offices shall grant the Record of Payment in Foreign
Exchange of Import of the category of truthfulness verification to the import unit after verify all the documents.

The designated banks shall strictly audit the documents in the course of sell foreign exchange for payment under the item of advanced
payment in the accordance with this circular, and shall strictly audit all the testimonials offered by the relative corporation in
the course of sell the foreign exchange for payment in accordance with Article 2 and Article 3 of this circular. If the payment
can not be justified as the payment between relative corporations, it should be done in accordance with Article 1

This circular shall not be applied to the units out of the list of import units of pay-in-foreign-exchange and the list of units that
pass the truthfulness audit of the SAFE

These Provisions come into effect as of the date of promulgation. If any provisions previously promulgated run counter to these Provisions,
these Provisions shall prevail. The branches and offices shall transmit this circular to the subordinate institutions and designated
banks and all the designated banks to the branches immediately after the receipt of the circular. Any problem raised in the course
of implement shall be reported to the Department of Regular Items of SAFE in time.

State Administration of Foreign Exchange
2003-10-09

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Constitution

The basic law

Concluding and Transitional Provisions

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON REVISING THE PREVENTION AND CONTROL OF ATMOSPHERIC POLLUTION

REGULATIONS ON EXPORT CONTROL OF MISSILES AND MISSILE-RELATED ITEMS AND TECHNOLOGIES

OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION ON TAX TREATMENT TOWARDS INCOME FROM RELOCATION COMPENSATION RECEIVED BY ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE CONCERNING THE SALE AND PURCHASE OF FOREIGN EXCHANGE FOR THE NON-TRADE ITEMS UNSPECIFIED IN THE LAWS AND REGULATIONS CURRENTLY IN FORCE

CIRCULAR ON DOING WELL IN ONGOING REGULATORY AND DOVETAILING WORKS UPON CANCELING THE SECOND GROUP OF ADMINISTRATIVE APPROVAL ITEMS AND CHANGING THE MANAGEMENT METHODS OF SOME ADMINISTRATIVE APPROVAL ITEMS

INTERIM PROVISIONS ON THE ADMINISTRATION OF INTERNET CULTURE

CIRCULAR OF THE MINISTRY OF COMMERCE AND GENERAL ADMINISTRATION OF TAXATION ON STRENGTHENING COORDINATION OF TAXATION AND FOREIGN TRADE AND OVERCOMING THE IMPACTS OF “SARS” EPIDEMICS ON FOREIGN TRADE

CIRCULAR ON STARTING USE OF APPLICATION FORM AND CERTIFICATES OF QUALIFICATIONS OF FOREIGN-INVESTED CONSTRUCTION ENTERPRISES

REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON CERTIFICATION AND ACCREDITATION

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON SIMPLIFYING THE VERIFICATION PROCEDURE OF SELL FOREIGN EXCHANGE FOR PAYMENT UNDER THE ITEM OF ADVANCED PAYMENT

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