PROVISIONS ON THE ADMINISTRATION OF URBAN PLANNING SERVICE ENTERPRISE WITH FOREIGN INVESTMENT

The Ministry of Construction, the Ministry of Foreign Trade and Economic Cooperation

Decree of the Ministry of Construction of the People’s Republic of China and the Ministry of Foreign Trade and Economic Cooperation
of the People’s Republic of China

No.116

The Provisions on the Administration of Urban Planning Service Enterprise with Foreign Investment, which were adopted at the 65th
Executive Session of the Ministry of Construction on December 13, 2002, and adopted at the 2nd Ministerial Session of the Ministry
of Foreign Trade and Economic Cooperation on January 30, 2003, are hereby promulgated and shall enter into force on May 1, 2003.

Minister of the Ministry of Construction Wang Guangtao

Minister of the Ministry of Foreign Trade and Economic Cooperation Shi Guangsheng

February 13, 2003

Provisions on the Administration of Urban Planning Service Enterprise with Foreign Investment

Article 1

In order to further the opening to the outside world, to regulate the foreign companies, enterprises and other economic organizations
or individuals investing in urban planning service enterprises, and to strengthen the administration of the urban planning services
carried out by urban planning service enterprises with foreign investment, these Provisions have been formulated in accordance with
the Law of the People’s Republic of China on Enterprises with Foreign Investment, the Law of the People’s Republic of China on Chinese-foreign
Equity Joint Ventures, the Law of the People’s Republic of China on Chinese-foreign Contractual Joint Ventures, and the Law of the
People’s Republic of China on Urban Planning.

Article 2

These Provisions shall apply to the establishment of urban planning service enterprises with foreign investment within the People’s
Republic of China, to the application for the Certificate of Qualification of Enterprise with Foreign Investment for Urban Planning
Services, and to the supervision and administration of urban planning service enterprises with foreign investment.

Article 3

The urban planning service enterprises with foreign investment as used in these Provisions refer to the Chinese-foreign equity joint
ventures, Chinese-foreign contractual joint ventures and enterprises with foreign investment that are established in the People’s
Republic of China and undertake urban planning services. The urban planning services as used in these Provisions refer to the activities
of formulation and consultation of urban planning, excluding the overall urban planning.

Article 4

To undertake urban planning services in China, a foreign company, enterprise or other economic organization or individual must establish
a Chinese-foreign equity joint or contractual joint venture or enterprise with foreign investment pursuant to law, and obtain the
Certificate of Qualification of Enterprises with Foreign Investment for Urban Planning Services.No one may undertake urban planning
services without the Certificate of Qualification of Enterprises with Foreign Investment for Urban Planning Services.

Article 5

The administrative department of foreign trade and economic cooperation under the State Council shall be in charge of the administration
of the establishment of urban planning service enterprises with foreign investment; the administrative department of construction
under the State Council shall be in charge of the administration of the qualification of urban planning service enterprise with foreign
investment.The administrative departments of foreign trade and economic cooperation of the people’s governments of the provinces,
autonomous regions and municipalities directly under the Central Government shall be in charge of the preliminary examination of
the establishment of urban planning service enterprises with foreign investment within their respective administrative areas; the
administrative departments of urban planning of the local people’s governments at the county level and above shall be in charge of
the supervision and administration of the urban planning services carried out by urban planning service enterprises with foreign
investment within their respective administrative areas.

Article 6

For the establishment of a urban planning service enterprise with foreign investment, the following conditions must be met, apart
from the conditions provided for by the relevant laws and regulations of China on enterprises with foreign investment:

The foreign party is an enterprise or professional technician engaging in urban planning services in its/his home country or region;

Having 20 or more professional technicians specializing in urban planning, construction, road traffic, gardens and landscape, as well
as the relevant engineering etc, among whom, foreign professional technicians shall account for no less than 25% of all the professional
technicians, there shall be at least 1 foreign professional technician specializing in urban planning, construction, road traffic,
garden and landscape.

Having technical equipment and fixed work site in conformity with the state provisions.

Article 7

To apply for the establishment of a urban planning service enterprise with foreign investment, a party shall apply for verification
and approval of the name of the enterprise with foreign investment to be established with the State Administration for Industry and
Commerce or the local administration for industry and commerce authorized thereby.

Article 8

After obtaining the approval for the name of the enterprises with foreign investment to be established, the applicant shall file the
application for establishment of urban planning service enterprise with foreign investment with the administrative department of
foreign trade and economic cooperation of the people’s government of the province, autonomous region or municipality directly under
the Central Government where the enterprise to be established is located, and submit the following materials:

Application form for the establishment of enterprises with foreign investment signed by the legal representative of the investing
party;

Feasibility study report, project proposal, as well as the scheme on establishment of the enterprise (including the professional personnel,
plans on technical equipment and area of the work site, etc) formulated or acknowledged by the investing party;

Contract and articles of incorporation of the enterprises with foreign investment signed by the legal representative of the investing
party (only articles of incorporation are required in respect of an enterprises with foreign investment);

Notice for preliminary verification and approval of the enterprise name;

Certificate of legal person registration and bank credit certificate of the investing party;

Documents of tenancy and certificates of the board chairman, directors, managers, and persons in charge of engineering and technology
to be dispatched by the investing party;

Balance sheets and statements of gains and losses of the investing party of the last three years that have been audited by registered
accountants or accounting firms;

Certificate of enterprise registration and bank credit certificate of the enterprise undertaking urban planning service of the country
or region where the foreign investor is located;

Certificate of experience and achievements of urban planning services issued by the government authority or trades society, institute,
or notary agency of the country or region where the foreign investor is located.

Article 9

The administrative departments of foreign trade and economic cooperation of the people’s governments of the provinces, autonomous
regions and municipalities directly under the Central Government shall finish the preliminary examination within 30 days from accepting
the application; and if the approval is granted, submit the application to the administrative department of foreign trade and economic
cooperation under the State Council.

Article 10

The administrative department of foreign trade and economic cooperation under the State Council shall, within 10 days from receiving
the application materials that have passed the preliminary examination, submit such materials to the administrative department of
construction under the State Council for opinions. The administrative department of construction under the State Council shall present
the opinions within 30 days from receiving the application materials. The administrative department of foreign trade and economic
cooperation under the State Council shall, within 30 days from receiving the written opinions from the administrative department
of construction under the State Council, make the decision on whether to approve the application. If the approval is granted, the
certificate of approval shall be issued to the enterprises with foreign investment; if not, the reasons shall be explained in written
form.

Article 11

After obtaining the certificate of approval for enterprise with foreign investment, the applicant shall make the industrial and commercial
registration of enterprise pursuant to law, and draw the business license.

Article 12

After drawing the business license of enterprise as legal person, the applicant shall apply for the Certificate of Qualification of
Enterprise with Foreign Investment for Urban Planning Services with the administrative department of construction under the State
Council.

Article 13

The following materials shall be submitted for application for the Certificate of Qualification of Enterprise with Foreign Investment
for Urban Planning Services:

Application form for the Certificate of Qualification of Enterprise with Foreign Investment for Urban Planning Services;

Certificate of approval for enterprise with foreign investment;

Business license of enterprise as legal person;

Employment contracts and certificates of professional qualification of the professional technicians which have been put on record
by the department of labor and personnel;

Materials on the technical equipment of the enterprise.

Article 14

A urban planning service enterprise with foreign investment shall, within 30 days after obtaining the Certificate of Qualification
of Enterprises with Foreign Investment for Urban Planning Services, put that on record with the administrative department of urban
planning of the city or county where it is registered.

Article 15

Where a urban planning service enterprise with foreign investment contracts any task of urban planning service of a place other than
its place of registration, it shall put that on record with the administrative department of urban planning of the city or county
where the task is located.

Article 16

The materials submitted by the applicant shall be in Chinese, if the certificates are in any foreign language, they must be accompanied
by Chinese translations.

Article 17

When undertaking urban planning services, a urban planning service enterprise with foreign investment must observe the relevant laws
and regulations, technical standards and criteria of China on urban planning.

Article 18

Every foreign technician employed by a urban planning service enterprise with foreign investment shall reside in China for no less
than 6 months per year.

Article 19

The administrative department of construction under the State Council shall conduct an annual inspection each year over the urban
planning service enterprises with foreign investment with the Certificate of Qualification of Enterprise with Foreign Investment
for Urban Planning Services. Those who failed to meet the qualification conditions, their Certificate of Qualification of Enterprise
with Foreign Investment for Urban Planning Services shall be withdrawn.

Article 20

Where a Chinese entity with the Certificate of Qualification of Entity for Formulating Urban Planning is restructured or reorganized
to form a Chinese-foreign equity joint or contractual joint urban planning service enterprise, it shall return its Certificate of
Qualification of Entity for Formulating Urban Planning.

Article 21

When a urban planning service enterprise with foreign investment is shutout, cancellation and terminate, it shall return its Certificate
of Qualification of Enterprises with Foreign Investment for Urban Planning Services.

Article 22

It is strictly prohibited to commission any task of urban planning service to an enterprise with foreign investment without the Certificate
of Qualification of Enterprises with Foreign Investment for Urban Planning Services. It is strictly prohibited to commission any
task of services relating to the overall urban planning to an enterprise with foreign investment.

Article 23

For those contracting urban planning service tasks without the Certificate of Qualification of Enterprise with Foreign Investment
for Urban Planning Services, the administrative department of urban planning of the local people’s government at the county level
or above shall order the offender to stop the illegal activities, and impose on it a fine from 10,000 yuan to 30,000 yuan. And the
relevant departments may not approve the illegal achievements.

Article 24

Where a urban planning service enterprise with foreign investment, in violation of these Measures, undertakes services of formulation
of the overall urban planning, the administrative department of urban planning of the local people’s government at the county level
or above shall order it to correct; if the circumstances are serious, the Certificate of Qualification of Enterprise with Foreign
Investment for Urban Planning Services shall be withdrawn by the department that issued it. Where a urban planning service enterprise
with foreign investment practices frauds and deceitfully obtains the Certificate of Qualification of Enterprise with Foreign Investment
for Urban Planning Services, the qualification certificate shall be withdrawn by the department that issued it.After withdrawing
the certificate of qualification, the department that issued it shall notify the registration department of the relevant information.
The enterprise whose qualification certificate has been withdrawn shall apply for nullification of registration with the registration
department; those failing to do so will be dealt with by the registration department pursuant to law.

Article 25

If any party, in violation of these Provisions, commissions any urban planning service task to an enterprise with foreign investment
without the Certificate of Qualification of Enterpriseswith Foreign Investment for Urban Planning Services, or commissions any overall
planning service task to a urban planning service enterprise with foreign investment, the department at the higher level shall correct
such act, and investigate for the administrative responsibilities of the relevant responsible personnel; and prosecute for the criminal
responsibilities if a crime is constituted.

Article 26

The power to interpret these Provisions shall remain with the administrative department of construction under the State Council and
the administrative department of foreign trade and economic cooperation under the State Council according to their respective functions.

Article 27

These Provisions shall be referred to in respect of the establishment of urban planning service enterprises in the mainland of China
by investors from Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan.

Article 28

These Provisions shall enter into force on May 1, 2003.

The Ministry of Construction, the Ministry of Foreign Trade and Economic Cooperation
2003-02-13

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING TAX ADMINISTRATION ON PERMANENT REPRESENTATIVE OFFICES OF FOREIGN ENTERPRISES

The State Administration of Taxation

Circular of the State Administration of Taxation Concerning Tax Administration on Permanent Representative Offices of Foreign Enterprises

GuoShuiFa [2003] No.28

March 12, 2003

National and district taxation offices at levels of province, autonomous region, municipality directly under the Central Government
and municipality separately listed on the State plan:

For the purpose of further standardizing the taxation administration on permanent representative offices of foreign enterprises, according
to the actual situations of the taxation administration on these representative offices, the issues on the implementation of the
Circular of the State Administration of Taxation Concerning Tax Administration on Permanent Representative Offices of Foreign Enterprises
(GuoShuiFa [1996] No.165) are hereby circularized in the following:

About taxation registration and tax declaration of the representative offices

If foreign enterprises establish various permanent representative offices (hereinafter referred to as ROs) in China which deal with
various activities in China, these ROs shall make tax registration and declare their operations to the competent administrations
of taxation according to relative provisions in the Law of Taxation of People’s Republic of China. The ROs exempt from taxation in
the light of Item 2 of Article 1 of GuoShuiFa [1996] No.165 and other provisions may declare their annual operations within one
month after the end of the year.

II.

About tax levied on the ROs.

The ROs engaged in transactions with payable taxes in accordance of Item 1, Article 1 of GuoShuiFa [1996] No.165 shall calculate
and pay business taxes and enterprise income taxes according to the following regulations:

(1)

The ROs engaged in the transactions listed in Subitem 2, Item 1, Article 1 of GuoShuiFa [1996] No.165, including commercial operation,
law, taxation, accounting and auditing, shall establish and complete account books, correctly calculate incomes and taxable amounts,
and honestly declare the taxes.

(2)

For the ROs providing services that listed in Subitem 1,2 & 5 under Item 1 of Article 1 of GuoShuiFa [1996] No.165, including agenting
and trading (including trading own products and agenting others’ products), which businesses are mainly carried out by requests from
their headquarters without directly signing contracts or agreements with the service-receivers, the incomes from the services by
the ROs are usually collected by their headquarters. Such incomes of the ROs shall be determined via calculation of their expenditures
that will be the basis of levied taxes.

(3)

The ROs engaged in businesses listed in Item 1, Article 1 of GuoShuiFa [1996] No.165, except for the above-mentioned two kinds, shall
on schedule declare to the local competent taxation administrations based on their actual business incomes from their business activities,
including those collected by the headquarters. If there is no business income in current year, the RO may report its annual business
within one month after the end of current year.

III.

About tax exemption for ROs of foreign governments, international organizations, non-profitable institutions and nongovernmental organizations

For the ROs established by foreign governments, international organizations, non-profit institutions and nongovernmental organizations
in China, they (or their headquarters, or their higher levels) may apply to local competent taxation administrations (including local
district taxation administrations) for tax exemption, and provide the certificate documents issued by governments that testify their
natures. Such applications shall be validated by local taxation administration (including local district taxation administrations)
to report to the State Administration of Taxation for approval.

IV.

About administration and audit on ROs

(1)

Local taxation administrations shall strengthen the routine administrations on ROs and establish necessary communication systems to
include all ROs into their normal taxation administration.

(2)

The competent taxation administration shall carefully check the declaration documents submitted by the ROs, and carry out on-spot
audit when necessary. If any operation is found incompliance with that declared in the examination, ROs shall be disposed according
to the provisions of the Law of the People’s Republic of China on Administration of Levy and Collection of Taxes.

This Circular shall enter into force as of July 1, 2003. If previous provisions are inconsistent with this Circular, this Circular
shall prevail.

The State Administration of Taxation
2003-03-12

CIRCULAR OF THE MINISTRY OF COMMERCE CONCERNING PRINTING AND DISTRIBUTING THE “SUPPLEMENTARY CIRCULAR ON RELATED ISSUES CONCERNING EXAMINING PROJECTS OF LABOR SERVICE COOPERATION WITH FOREIGN PARTIES”

Circular of the Ministry of Commerce concerning Printing and Distributing the “Supplementary Circular on Related Issues concerning
Examining Projects of Labor Service Cooperation with Foreign Parties”

Shang He Fa [2003] No. 44
April 9, 2003

The commissions (departments, bureaus) of foreign trade and economic cooperation of all provinces, autonomous regions and municipalities
directly under the Central Government and cities specifically designated in the state plan, all related enterprises under the management
of the Central Government:

For the purpose of further regulating and simplifying the procedures for labor workers to go abroad, and strengthening the administration
of labor service cooperation with foreign parties, the Ministry of Public Security has printed and distributed the “Supplementary
Circular on Related Issues concerning Carrying out the Measures for Going through the Formalities for Labor Workers to Go Abroad”
(Gong Jing Chu [2003] No. 352), forwarded by the Ministry of Commerce on April 4, 2003, hereinafter referred to as “Supplementary
Circular of the Ministry of Public Security”).For the purpose of doing a good job in cooperation, and perfecting the measures for
examining projects of labor service cooperation with foreign parties, the Ministry of Commerce hereby print and distribute the “Supplementary
Circular on Related Issues concerning Examining Projects of Labor Service Cooperation with Foreign Parties” (see appendix). The Supplementary
Circular shall be conformed to and carried out, and be forwarded to related departments.

Whereas the Supplementary Circular of the Ministry of Public Security goes into effect on May 1, 2003, for the purpose of doing a
good job in the cooperation, you must report the specimen of exit certificate numbers, the molds of seals, as well as the scripts
of signatures, telephone and fax numbers of the issuers of exit certificates (2 persons, who shall be department leaders) to the
present Ministry (Department of Cooperation) by April 15.

Appendix:
Supplementary Circular on Related Issues concerning Examining Projects of Labor Service Cooperation with Foreign Parties

We hereby distribute the present Supplementary Circular as follows for the purpose of perfecting the measures for examining projects
of labor service cooperation with foreign parties, clarifying the methods and procedures concerning issuing exit certificates to
labor workers, and further doing a good job in going through the formalities for labor workers to go abroad:

Examination of Projects of Labor Service Cooperation with Foreign Parties

When handing in labor service project examination materials to the local administrative department of foreign trade and economic cooperation
of the province, autonomous region, municipality directly under the Central Government, or municipality under separate state planning
(hereinafter referred to as the administrative department of foreign trade and economic cooperation at the provincial level, see
Appendix for the name list), an enterprise with the operational qualification for labor service cooperation with foreign parties
(hereinafter referred to as operation company) shall hand in the opinions of the commerce institution of the Chinese embassy (consulate)
stationed abroad besides the materials prescribed in the “Circular concerning Printing and Distributing the Provisions on Related
Issues concerning Examining Projects of Labor Service Cooperation with Foreign Parties” (Wai Jing Mao He Fa [2002] No. 137). Any
administrative department of foreign trade and economic cooperation at the provincial level shall not separately solicit opinions
from the commerce institution of the Chinese embassy (consulate) stationed abroad except for special situations.

For an enterprise authorized by the Ministry of Foreign Affairs (Department of Consular Affairs) to handle visa shall solicit opinions
from the commerce institution of the Chinese embassy (consulate) stationed in the country (region) where the project is located before
making an examination on a labor service project by itself,.

Exit Certificates of Labor Workers

(1)

For any labor worker who must hold a “Labor Worker’s Exit Certificate” for exit assigned by an operation company, the said certificate
shall be issued by the administrative department of foreign trade and economic cooperation at the provincial level at the operation
company’s locality. Before issuing the labor worker’s exit certificate, the administrative department of foreign trade and economic
cooperation at the provincial level shall check the project information reported by the operation company, and control the issuance
in a strict manner. If an exit certificate needs to be issued to a labor worker assigned by an enterprise authorized by the Ministry
of Foreign Affairs (Department of Consular Affairs) to handle the visa by itself, it shall be issued after the administrative department
of foreign trade and economic cooperation at the provincial level at the locality of its registration has examined the project.

(2)

The exit certificates shall be printed and made by each administrative department of foreign trade and economic cooperation at the
provincial level, be filled out by a designated handler with a pen of blue or black ink, as well as be numbered in a uniform sequence
(e.g., Jing Wai Jing Mao Chu Jing Zi [2003] No. ___). An exit certificate shall be in duplicate, with one to be handed over to the
operation company for going through exit formalities for the labor worker, and the other to be kept for the administrative department
of foreign trade and economic cooperation at the provincial level in archives.

(3)

The administrative department of foreign trade and economic cooperation at the provincial level shall issue a statistical form of
exit certificate (see Appendix 2) every half a year, report the form to the Ministry of Commerce (Department of Cooperation) and
make a copy to the Entry and Exit Administration of the Ministry of Public Security and China International Contractors Association
by June 15 of each year and by January 15 of the next year, as well as report the overall information on issuing exit certificates
of the last half of the year to the Ministry of Commerce (Department of Cooperation) by January 15 of each year.

The present Supplementary Circular shall prevail if any content in the “Circular on Printing and Distributing the Provisions on Related
Issues concerning Examining Projects of Labor Service Cooperation with Foreign Parties” fails to be consistent with the present Supplementary
Circular.

The present Supplementary Circular shall go into effect as of May 1, 2003.

Appendix 1
Name List of the Administrative Department of Foreign Trade and Economic Cooperation at the Provincial Level which have the Power
to Issue Exit Certificates to Labor Workers

Commission of Foreign Trade and Economic Cooperation of Beijing Municipality

Commission of Foreign Trade and Economic Cooperation of Tianjin Municipality

Department of Foreign Trade and Economic Cooperation of Hebei Province

Department of Foreign Trade and Economic Cooperation of Shanxi Province

Department of Foreign Trade and Economic Cooperation of Inner Mongolia Autonomous Region

Department of Foreign Trade and Economic Cooperation of Liaoning Province

Bureau of Foreign Trade and Economic Cooperation of Dalian Municipality

Department of Foreign Trade and Economic Cooperation of Jilin Province

Department of Foreign Trade and Economic Cooperation of Heilongjiang Province

Commission of Foreign Trade and Economic Cooperation of Shanghai Municipality

Department of Foreign Trade and Economic Cooperation of Jiangsu Province

Department of Foreign Trade and Economic Cooperation of Zhejiang Province

Bureau of Foreign Trade and Economic Cooperation of Ningbo Municipality

Department of Foreign Trade and Economic Cooperation of Anhui Province

Department of Foreign Trade and Economic Cooperation of Fujian Province

Bureau of Trade Development of Xiamen Municipality

Department of Foreign Trade and Economic Cooperation of Jiangxi Province

Department of Foreign Trade and Economic Cooperation of Shandong Province

Bureau of Foreign Trade and Economic Cooperation of Qingdao Municipality

Department of Foreign Trade and Economic Cooperation of Henan Province

Department of Foreign Trade and Economic Cooperation of Hubei Province

Department of Foreign Trade and Economic Cooperation of Hunan Province

Department of Foreign Trade and Economic Cooperation of Guangdong Province

Bureau of Foreign Trade and Economic Cooperation of Shenzhen Municipality

Department of Foreign Trade and Economic Cooperation of Guangxi Zhuang Autonomous Region

Department of Foreign Trade and Economic Cooperation of Hainan Province

Commission of Foreign Trade and Economic Cooperation of Chongqing Municipality

Department of Foreign Trade and Economic Cooperation of Sichuan Province

Department of Trade Cooperation of Guizhou Province

Department of Foreign Trade and Economic Cooperation of Yunnan Province

Department of Foreign Trade and Economic Cooperation of Tibet Autonomous Region

Department of Foreign Trade and Economic Cooperation of Shaanxi Province

Department of Trade and Economic Cooperation of Gansu Province

Department of Foreign Trade and Economic Cooperation of Qinghai Province

Department of Foreign Trade and Economic Cooperation of Ningxia Hui Autonomous Region

Department of Foreign Trade and Economic Cooperation of Xinjiang Uigur Autonomous Region

Bureau of Foreign Trade and Economic Cooperation of Xinjiang Production and Construction Corps

The Ministry of Commerce
2003-04-09

CIRCULAR ON TAX PAID BY FOREIGN INVESTORS MERGING THE STOCK EQUITY OF CHINESE ENTERPRISES

The State Administration of Taxation

Circular on Tax Paid by Foreign Investors Merging the Stock Equity of Chinese Enterprises

GuoShuiFa [2003] No. 60

May 28, 2003

In order to promote and regulate the investment launched by foreign investors in China, introduce foreign advanced technology and
management experiences, raise China’s level of utilizing foreign capital and realize reasonable allocation of resources, the former
Ministry of Foreign Trade and Economic Cooperation, the State Administration for Industry and Commerce, the State Administration
of Foreign Exchange and the State Administration of Taxation jointly promulgated the Interim Regulations Concerning the Issue that
Foreign Investor Merge Enterprises Within the Territory of China (hereinafter referred to as Interim Regulations) in March of 2003,
which allows foreign investors to merge the stock equity of enterprises without foreign investment within the territory of China
(hereinafter referred to as enterprises within the territory). Concerning the tax issue involved in the merger, it is hereby informed
as follows:

Foreign investors enable enterprises within the territory to become enterprises with foreign investment through purchasing the stock
equity of their shareholders or subscribe their increased capital (hereinafter referred to as stock equity purchase). If foreign
investors have more than 25% of the total shares, the enterprise may pay various taxes according to tax laws and regulations suitable
to enterprises with foreign investment.

II.

For the enterprises with foreign investment changed into from an enterprise within the territory through stock equity purchase, if
they meet the relevant conditions stipulated by the Income Tax Law of the People’s Republic of China for Enterprises with Foreign
Investment and Foreign Enterprises (hereinafter referred to as Tax Law) and its detailed rules, they could enjoy preferential tax
treatment made by Tax Law and other relevant provisions. The preferential tax should be calculated according to the following provisions:

(I)

The beginning of business and operation period. The day when an industrial and commercial organ approves and issues business license
means an enterprise with foreign investment changed into from an enterprise within the territory through stock equity purchase begins
its business. From the beginning day to the business maturity date set by industrial and commercial registration is operation period.

(II)

The settlement of pre-establishment loss. The total business loss that has not been made up before an enterprise with foreign investment
established may be covered by the enterprise with foreign investment changed into from an enterprise within the territory through
stock equity purchase in the rest years of covering loss stipulated by Article 11 of Tax Law.

(III)

Identification of profit-making year. Profit-making year refers to the year when an enterprise with foreign investment changed into
from an enterprise within the territory through stock equity purchase is established and it still makes profit after making up loss
of the years before. In the profit-making year, if the production period is less than 6 months, the enterprise may choose the beginning
year of tax reduction and remission according to Article 77 of detailed rules of Tax Law.

III.

The Circular shall enter into force as of January 1, 2003. The enterprises with foreign investment changed from enterprises within
the territory through stock equity purchase established before the promulgation of the circular should adhere to the circular if
they meet the conditions of Interim Regulations and the circular.

The State Administration of Taxation
2003-05-28

CIRCULAR OF THE MINISTRY OF COMMERCE AND THE SAFE ON ISSUES RELATING TO SIMPLIFYING THE EXAMINATION AND APPROVAL PROCEDURES FOR THE PROJECTS OF OVERSEAS PROCESSING TRADE AND DELEGATING THE AUTHORITY

The Ministry of Commerce, the State Administration of Foreign Exchanges

Circular of the Ministry of Commerce and the SAFE on Issues Relating to Simplifying the Examination and Approval Procedures for the
Projects of Overseas Processing Trade and Delegating the Authority

ShangHeFa [2003] No.126

June 26, 2003

For further carrying out the spirits of the 16th National Congress of the CPC and the 2nd plenipotentiary session of the 16th Committee
of the CPC, further implementing GuoBanFa [1999] No.17 Document, encouraging and promoting the development of overseas processing
trade, and speeding up the strategy of “going out”, the Ministry of Commerce and the SAFE have adjust the examination and approval
Procedures for the projects of overseas processing trade and the delegating of the authority in compliance with the adjustment of
the institutions and functions of the relevant organs of the State Council and the requirements deepening the reforms on the system
of administrative examination and approval. The relevant issues are hereby notified as follows:

The projects of overseas processing trade with investment by Chinese parties no more than USD3m (inclusive) will be reviewed and ratified
by the local competent department of foreign economics and trade of the provinces, autonomous regions and municipalities directly
under the Central Government and municipalities on the state plan (including the Foreign Economic and Trade Bureau of Xinjiang Production
and Construction Regime, hereinafter referred to as local competent department) where the investment subjects are located. The projects
of overseas processing trade with investment by Chinese parties more than USD3m should be submitted by the local competent department
for review and approval by the Ministry of Commerce.

The projects of overseas processing trade invested and sponsored by the enterprises under the central government and their affiliated
enterprises should be submitted by the headquarters of the central enterprises for review and approval by the Ministry of Commerce.

II.

Procedures for application and submission of the projects of overseas processing trade

(I)

For the projects of overseas processing trade to be reviewed and ratified by the local competent department, the local competent department
shall upon receipt of the relevant application review and decide on whether to grant ratification after consent by the economic and
commercial office of our embassy (consular) in foreign countries.

(II)

For the projects of overseas processing trade to be reviewed and ratified by the Ministry of Commerce, the local competent department
or the headquarters of the central enterprises shall report the case for review and ratification by the Ministry of Commerce after
consent by the economic and commercial office of our embassy (consular) in foreign countries.

(III)

For the projects of overseas processing trade to be reviewed and ratified by the local competent department or to be submitted for
review and ratification, joint signature should be obtained from the local competent department of economics and trade. The local
competent department of economics and trade should put forth opinions within five working days.

(IV)

For the projects of overseas processing trade requiring for domestic purchase of foreign exchanges and remittance to foreign countries,
review and examination should be made by the local administration of foreign exchanges or the department of foreign exchange administration
on the capital sources of foreign exchanges for overseas investment according to the relevant provisions of the Circular of the General
Administration of Foreign Exchanges on Issues Relating to Simplifying the Review and Examination of the Capital Sources of Foreign
Exchanges for Overseas Investment (HuiFa [2003] No. 43) before submission to the local competent department. The review and examination
on the capital sources for the projects of overseas processing trade with investment by Chinese parties no more than USD3m (inclusive)
will be handled with by the local administration of foreign exchanges or the department of foreign exchange administration where
the investment subjects are located. The review and examination on the capital sources for the relevant projects with investment
by Chinese parties more than USD3m will be initially handled with by the local administration of foreign exchanges or the department
of foreign exchange administration where the investment subjects are located before final review and examination by the SAFE.

III.

Key point in review of the projects of overseas processing trades

When various levels of competent department reviews and ratifies the projects of overseas processing trade, the main materials to
be reviewed and examined include: survey of the projects of overseas processing trade (Especially the qualifications of the investment
subjects and the product exports brought forth); contract and articles of associations of the enterprises of overseas processing
trade, business licenses of the investment subjects (duplicate), reply upon review and examination by the administration of foreign
exchanges on the capital sources of foreign exchanges for overseas investment, proposals on no further review and approval of projects
of overseas processing trade and the feasibility study report.

IV.

Approval certificates of the overseas enterprises of processing and assembling with brought-out materials

The Approval Certificate of the Overseas Enterprises of Processing and Assembling with Brought-out Materials (hereinafter referred
to as the Approval Certificate) is a legal documents uniformly printed by the Ministry of Commerce for certifying that the projects
of overseas processing trade has been finally verified and ratified by the competent state department of foreign investment. After
ratifying the projects of overseas processing trade, the local competent department shall fill in the Form of Registration and Filling
of Overseas Processing Trade Enterprises (format attached below) and cover its official stamp thereon, which should be submitted
together with the review and ratification documents, the opinions provided by the economic and commercial office of our embassy (consular)
in foreign countries and the opinions on examination of the capital sources of foreign exchanges issued by the administration of
foreign exchanges for registration and filing by the Ministry of Commerce before obtaining the approval certificates. Upon the maturity
of online issuance of the certificates, the approval certificates will be issued by the local competent department by proxy.

Within 60 days upon obtaining the approval certificates, the investment subjects shall handle with the registration of foreign exchanges
for overseas investment at the local administration of foreign exchanges or the department of foreign exchange administration where
the investment subjects are located. The formalities for purchase and remittance of foreign exchanges will be handled with against
the approval certificates and the reply on the review and examination of the toe capital sources of foreign exchanges.

When investing in overseas processing trade, the investment subjects shall firstly make use of their own capital of foreign exchanges,
and incase their own capital of foreign exchanges is insufficient, domestic loans of foreign exchanges may be adopted or foreign
exchanges may be purchased.

VI.

Without permission by the Ministry of Commerce, the local competent departments shall not delegate their authority for review and
ratification of the projects of overseas processing trade to their subordinate units.

VII.

Since the promulgation and distribution of the Circular of General Office of the State Council on transferring the Opinions of the
MOFTEC, the State Economic and Trade Commission and the Ministry of Finance on Encouraging Enterprises in Developing Overseas Processing
and Assembling Business with Brought-out Materials (GuoBanFa [1999] No.17), the overseas processing trade has played an important
role in promoting he development of foreign relationship, expanding exports, furthering the adjustment of industrial structure, and
cultivating the transnational companies of our country. For a pretty long term in the future, such business is still an important
direction to be encouraged in our overseas investment. Each and every unit shall in the spirits of GuoBanFa [1999] No.17 Document
keep on doing well in the organization and promotion of such business, and pay attention to find problems and summarize experiences
during the actual works, and closely communicate with the economic and commercial office of our embassy (consular) in foreign countries,
thus strengthening the organization, management and coordination in the projects of overseas processing trade and avoiding blind
overseas deployment, repeated construction and disorder competition.

In case of any issues in work upon the distribution of the Circular, each unit is required to report to the Ministry of Commerce (the
Department of Cooperation) and the SAFE (the Department of Capital) in a timely way.

Hereby is the notification.

The Ministry of Commerce, the State Administration of Foreign Exchanges
2003-06-26

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

20040801

The State Administration of Foreign Exchanges

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

HuiFa [2003] No.87

July 30, 2003

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

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

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

II.

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

III.

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

IV.

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

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

VI.

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

VII.

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

VIII.

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

IX.

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

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

XI.

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

XII.

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

XIII.

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

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

Contact with: Ma Chao

Tel: 010-68402114

Fax: 010-68402272

The State Administration of Foreign Exchanges
2003-07-30

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

State Administration of Foreign Exchange

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

Zong Hui Fa [2003] No.124

September 9, 2003

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

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

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

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

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

Other documents as required by the trustee.

II.

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

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

III.

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

IV.

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

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

VI.

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

VII.

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

VIII.

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

IX.

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

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

XI.

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

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

Fax: (010) 68402349

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

XII.

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

XIII.

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

Please contact: Zhou Yongkun

Tel: (010) 68402347

Annex:

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

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

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

State Administration of Foreign Exchange
2003-09-09

MEASURES FOR MEDICAL WASTES MANAGEMENT OF MEDICAL AND HEALTH INSTITUTIONS

Ministry of Public Health

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

No.36

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

Wu Yi, the Minister of the Ministry of Public Health

October 15, 2003

Measures for Medical Wastes Management of Medical and Health Institutions

Chapter 1 General Provisions

Article 1

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

Article 2

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

Article 3

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

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

Chapter 2 Medical Waste Management Duties of Medical and Health Institutions

Article 4

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

Article 5

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

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

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

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

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

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

Article 6

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

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

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

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

Organizing the training relating to medical wastes management;

Managing the relevant registration and archives of medical wastes;

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

Article 7

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

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

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

Article 8

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

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

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

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

Article 9

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

Chapter 3 Classified Collections, Carriage and Temporary Storage

Article 10

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

Article 11

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

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

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

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

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

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

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

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

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

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

10)

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

Article 12

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

Article 13

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

Article 14

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

Article 15

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

Article 16

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

Article 17

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

Article 18

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

Article 19

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

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

Article 20

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

Article 21

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

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

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

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

Being leakage proof and refraining from rain-washing;

Being easy for cleaning and disinfection;

Avoiding direct sunshine;

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

Article 22

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

Article 23

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

Article 24

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

Article 25

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

Article 26

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

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

Article 27

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

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

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

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

Article 28

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

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

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

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

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

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

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

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

Chapter 4 Personnel Training and Occupational Safety Protection

Article 29

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

Article 30

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

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

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

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

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

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

Article 31

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

Article 32

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

Chapter 5 Supervision and Administration

Article 33

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

Article 34

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

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

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

Registration materials and records related to medical wastes management;

Safety protection of the relevant personnel in medical wastes management;

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

On-spot hygiene monitoring.

Article 35

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

Article 36

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

Article 37

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

Article 38

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

Chapter 6 Rules of Punishment

Article 39

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

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

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

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

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

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

Article 40

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

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

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

Article 41

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

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

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

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

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

Article 42

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

Article 43

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

Article 44

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

Article 45

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

Article 46

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

Chapter 7 Supplementary Provisions

Article 47

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

Article 48

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

Ministry of Public Health
2003-10-15

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

State Administration of Taxation

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

GuoShuiFa [2003] No. 139

November 18, 2003

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

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

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

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

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

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

III.

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

IV.

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

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

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

VI.

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

VII.

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

VIII.

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

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

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

IX.

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

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

XI.

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

XII.

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

XIII.

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

XIV.

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

State Administration of Taxation
2003-11-18

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

e03032

Ministry of Commerce

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

No. 10

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

Lv Fuyuan, Minister of the Ministry of Commerce

December 7th, 2003

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

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

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

II.

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

III.

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

IV.

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

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

VI.

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

VII.

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

Ministry of Commerce
2003-12-07

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Russia Laws

The basic law

Concluding and Transitional Provisions

PROVISIONS ON THE ADMINISTRATION OF URBAN PLANNING SERVICE ENTERPRISE WITH FOREIGN INVESTMENT

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING TAX ADMINISTRATION ON PERMANENT REPRESENTATIVE OFFICES OF FOREIGN ENTERPRISES

CIRCULAR OF THE MINISTRY OF COMMERCE CONCERNING PRINTING AND DISTRIBUTING THE “SUPPLEMENTARY CIRCULAR ON RELATED ISSUES CONCERNING EXAMINING PROJECTS OF LABOR SERVICE COOPERATION WITH FOREIGN PARTIES”

CIRCULAR ON TAX PAID BY FOREIGN INVESTORS MERGING THE STOCK EQUITY OF CHINESE ENTERPRISES

CIRCULAR OF THE MINISTRY OF COMMERCE AND THE SAFE ON ISSUES RELATING TO SIMPLIFYING THE EXAMINATION AND APPROVAL PROCEDURES FOR THE PROJECTS OF OVERSEAS PROCESSING TRADE AND DELEGATING THE AUTHORITY

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

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

MEASURES FOR MEDICAL WASTES MANAGEMENT OF MEDICAL AND HEALTH INSTITUTIONS

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

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

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