(Approved by the State Council on December 13, 2003, promulgated on August 15, 2004)  

Article 1 In order to standardize the examination and approval of foreigners` permanent residence in China, these Measures are formulated in accordance with the relevant provisions of the Law of the People`s Republic of China on Control of Entry and Exit of Foreigners and the Detailed Rules for its implementation.  

Article 2 Foreigners` permanent residence in China refers to that the period of foreigners` residence in China is not limited.  

Article 3 The Foreigner`s Permanent Residence Card is a valid ID certificate for a foreigner who has obtained permanent residence status in China and may be used independently.  

Article 4 A foreigner with permanent residence status in China may enter or leave China with his valid passport and Foreigner`s Permanent Residence Card.  

Article 5 Authorities to accept foreigners` applications for permanent residence in China include public security organs of the people`s governments of cities with subordinate districts and public security branch bureaus and county-level bureaus of municipalities under direct leadship of the Central Government. Authorities to examine foreigners` applications for permanent residence in China include departments and bureaus of public security of provinces, autonomous regions and municipalities under direct leadship of the Central Government. The authority to examine and approve foreigners` applications for permanent residence in China is the Ministry of Public Security.  

Article 6 Foreigners applying for permanent residence in China must abide by Chinese laws, be in good health and without any criminal record, and must meet at least one of the following requirements:  

(1)Having made direct investment in China with stable operation and a good tax paying record for three successive years;  

(2)Having been holding the post of deputy general manager, deputy factory director or above or of associate professor, associate research fellow and other associate senior titles of professional post or above or enjoying an equal treatment, for at least four successive years, with a minimum period of residence in China for three cumulative years within four years and with a good tax paying record;  

(3)Having made a great and outstanding contribution to and being specially needed by China;  

(4)Being the spouse or unmarried child under 18 years old of a person with reference to the item (1), (2) or (3) of this paragraph;  

(5)Being the spouse of a Chinese citizen or of a foreigner with permanent residence status in China, in a marriage relationship for at least five years, with at least five successive years of residence in China and at least nine months of residence in China each year, and having stable source of subsistence and a dwelling place;  

(6)Being an unmarried person under 18 years old turning to his parent; or  

(7)Being a person who is or above 60 years old, who has no direct relative abroad and is to turn to any directive relative in China, and has stayed in China for at least five successive years with at least nine- month residence in China each year, and has stable source of subsistence and a dwelling place. The periods of time in this Article mean the successive ones till the date of application.  

Article 7 In the case of a foreigner under item (1) of the first paragraph of Article 6 herein, the registered capital paid by him as investment in China shall meet one of the following requirements:  

(1)In the case of investment in any industry encouraged under the Catalogue for Guidance of Foreign Investment Industries, it shall be at least US$500,000 in total;  

(2)In the case of investment in the western area of China or any key county under poverty reduction and development program, it shall be at least US$500,000 in total;  

(3)In the case of investment in the central area of China, it shall be at least US$1 million in total;  

(4)In the case of investment in China, it shall be at least US$2 million in total.  

Article 8 In the case of a foreigner under item (2) of the first paragraph of Article 6 herein, the entity in which he holds a post must be one of the following:  

(1)An institution subordinate to any department of the State Council or to the people`s government at the provincial level;  

(2)A key college or university;  

(3)An enterprise or government-sponsored institution implementing a key engineering project or major scientific research project of the state; or  

(4)A high-tech enterprise, foreign invested enterprise in encouraged fields, technologically advanced enterprise with foreign investment or export-oriented enterprise with foreign investment.  

Article 9 The applicant shall faithfully fill in the Form of Application for Foreigner`s Permanent Residence in China and submit the following materials:  

(1)A copy of his valid passport or other certificate that may be used instead of the passport;  

(2)A health certificate issued by a health quarantine agency designated by the Chinese government or by a foreign health quarantine agency recognized by the relevant Chinese embassy or consulate;  

(3)A certificate of no criminal record in the country concerned as issued by the relevant Chinese embassy or consulate;  

(4)Four recent full-face color photos (2 by 2 inches, bareheaded) of the applicant; and  

(5)Other relevant materials provided herein.  

Article 10 An applicant under Item (1) of the first paragraph of Article 6 herein shall submit a certificate of approval for the foreign-invested enterprise, certificate of registration and a joint annual inspection certificate, report on the verification capital and personal tax payment receipt in addition. In the case of a foreign-invested enterprise in encouraged fields, a letter of confirmation in respect of the foreign-invested project as encouraged by the state shall be submitted in addition.  

Article 11 An applicant under Item (2) of the first paragraph of Article 6 herein shall submit the following materials in addition:(1) a certificate certifying his position or professional title as issued by his employer;(2) the Foreign Expert Card or Foreigner Employment Card;(3) a certificate of registration and certificate of annual inspection of his employer, certificate of personal tax payment issued to him; where the employer is a foreign-invested enterprise, a certificate of approval for the foreign-invested enterprise and a joint annual inspection certificate is required in addition; and(4) in the case of an applicant who holds a post in an enterprise or institution that carries out a key engineering project or major scientific research project of the state, a certificate certifying the project as issued by the competent authority of the government at the provincial or ministry level; in the case of an applicant who holds a post in a high-tech enterprise, a high-tech enterprise certificate; in the case of a foreign-invested enterprise in encouraged fields, technologically advanced enterprise with foreign investment or export-oriented enterprise with foreign investment, a certificate certifying the foreign-invested enterprise in encouraged fields, advanced-tech enterprise with foreign investment or export-oriented enterprise with foreign investment.  

Article 12 An applicant under Item (3) of the first paragraph of Article 6 herein shall submit a letter of recommendation and the relevant certificates as issued by the competent authority of the Chinese government in addition.  

Article 13 An applicant under Item (4) of the first paragraph of Article 6 herein shall, in addition, submit a marriage certificate in the case of a spouse, his birth certificate or parentage certificate in the case of an unmarried child under 18 years old, and a adoption certificate in the case of an adopted child. The above-mentioned certificates as issued by a foreign agency shall be subject to the authentication of the Chinese embassy or consulate in the country concerned.  

Article 14 An applicant under Item (5) of the first paragraph of Article 6 herein shall, in addition, submit his (her) Chinese spouse`s registered permanent residence certificate or foreign spouse`s Foreigner`s Permanent Residence Card, marriage certificate, and a notarized certificate of source of subsistence and house leasing certificate or muniments of title. The above-mentioned certificates as issued by a foreign agency shall be subject to the authentication of the Chinese embassy or consulate in the country concerned.  

Article 15 An applicant under Item (6) of the first paragraph of Article 6 herein shall, in addition, submit his Chinese parent`s registered permanent residence certificate or foreign parent`s Foreigner`s Permanent Resident Card, his birth certificate or parentage certificate and, in the case of an adopted child, the adoption certificate in addition. The above-mentioned certificates as issued by a foreign agency shall be subject to the authentication of the Chinese embassy or consulate in the country concerned.  

Article 16 An applicant under Item (7) of the first paragraph of Article 6 herein shall, in addition, submit the registered permanent residence certificate of the Chinese citizen, or the Foreigner`s Permanent Residence Card of the foreigner, to whom he is to turn, a notarized certificate of kindred and a certificate certifying that the applicant has no direct relative abroad, a notarized certificate certifying the applicant`s financial source or notarized certificate of financial guarantee by the person to whom the applicant is to turn, and notarized house leasing certificate or muniments of title of the applicant or the person to whom the applicant is to turn. The above-mentioned certificates as issued by a foreign agency shall be subject to the authentication of the Chinese embassy or consulate in the country concerned.  

Article 17 An application for foreigner`s permanent residence in China shall be submitted by the applicant himself or his parent if he is unmarried and under 18 years old or his attorney to the public security organ of the people`s government of the city with subordinate districts, or the branch or county bureau of public security of the municipality directly under the Central Government, in the place where the principal investment was made or of long-term residence. In the case of applying through an attorney, a power of attorney issued by the applicant shall be submitted. A power of attorney issued by the applicant abroad shall be subject to the authentication of the Chinese embassy or consulate in the country concerned.  

Article 18 The public security organ shall make an approval or disapproval decision within six months from the date of the acceptance of the application.  

Article 19 The Ministry of Public Security shall issue a Foreigner`s Permanent Residence Card to the applicant whose permanent residence status in China has been approved. If the applicant is not in China, the Ministry of Public Security shall issue a Confirmation Form of Foreigner`s Permanent Residence Status to the applicant, who shall apply for a "D" visa to the Chinese embassy or consulate in the country concerned by producing such Conformation Form and, within 30 days from his entry into China, get the Foreigner`s Permanent Residence Card from the public security organ that accepted his application.  

Article 20 A foreigner who has been approved to permanently reside in China must stay in China for at least three cumulative months a year. If the foreigner is unable to stay in China for such minimum period due to any reason, he shall apply for the approval of the department or bureau of public security of the province, autonomous region or municipality directly under the Central Government where he reside in, provided that the cumulative period of his residence in China shall not be less than one cumulative year in five years.  

Article 21 A Foreigner`s Permanent Residence Card shall be valid for five or ten years.In the case of a foreigner under 18 years old approved to permanently reside in China shall have a Foreigner`s Permanent Residence Card valid for five years; those being or above 18 years old shall have one valid for ten years.  

Article 22 In the case of expiry of, any change of particulars in, damage to or loss of a Foreigner`s Permanent Residence Card, the holder shall apply for renewal or reissue of the Card to the public security organ of the people`s government of the city with subordinate districts, or the branch or county bureau of public security of the municipality directly under the Central Government in the place of his long-term residence. The public security organ shall make such renewal or reissue within one month if, upon examination, it holds that the holder still meets the requirements for a foreigner to be approved to permanently reside in China.  

Article 23 The holder of a Foreigner`s Permanent Residence Card shall apply for a renewal of the Card within a month before the expiry of the old one, for a renewal within a month after any change of particulars in the Card, or for a renewal or reissue promptly in the case of any damage to or loss of the Card.  

Article 24 The Ministry of Public Security may cancel such status of him and withdraw or revoke his Foreigner`s Permanent Residence Card in the case of a foreigner with permanent residence status in China under any of the following circumstances:(1)Being likely to threaten the national security and interests;(2)Being expelled from China by the people`s court;(3)Having obtained the permanent residence status in China by submitting false materials or by other illegal means; and(4)Having stayed in China without approval for a period less than three cumulative months a year or less than a cumulative year in five years.  

Article 25 Foreigners who have been approved to permanently reside in China before the implementation of these Measures shall, within six months from the implementation, renew his Foreigner`s Permanent Residence Card with the public security organ of the people`s government of the city with subordinate districts or the branch and county bureau of public security of the municipality directly under the Central Government that issued the original Card or in the place of his long-term residence.  

Article 26 The items and rates of charge in respect of a foreigner`s application for permanent residence status in China and the issue, renewal and reissue of a Foreigner`s Permanent Residence Card shall conform to the relevant provisions of the departments of price control and finance of the State Council.  

Article 27 In these Measures: (1)"Direct relative" shall include parents (spouse`s parents), grandparents, child being at least 18 years old and his (her) spouse, and grandchild being at least 18 years old and his (her) spouse; and (2)Both "above" and "within" shall include the given figure.  

Article 28 The power to interpret these Measures shall be vested in the Ministry of Public Security and the Ministry of Foreign Affairs.  

Article 29 These Measures shall go into effect as of the date of promulgation.  

(Adopted at the 13th Meeting of the Standing Committee of the 6th National People`s Congress, and promulgated by Order No. 31 of the President of the People`s Republic of China on November 22, 1985.)

Contents:
Chapter I General Provisions
Chapter II Entry into the Country
Chapter III Residence
Chapter IV Travel
Chapter V Exit from the Country
Chapter VI Administrative Organs
Chapter VII Penalties
Chapter VIII Supplementary Provisions

Chapter I General Provisions

Article 1 This Law is formulated with a view to safeguarding the sovereignty of the People`s Republic of China, maintaining its security and public order and facilitating international exchange. This Law is applicable to aliens entering, leaving and transiting the territory of the People`s Republic of China and to those residing and travelling in China.

Article 2 Aliens must obtain permission from authorized departments of the Chinese Government for their entering, transiting or residing in China.

Article 3 For entry, exit and transit, aliens must pass through ports open to aliens or other designated ports and must be subject to inspection by the frontier inspection offices. For entry, exit and transit, foreign-owned transport means must pass through ports open to aliens or other designated ports and must be subject to inspection and supervision by the frontier inspection offices.

Article 4 The Chinese Government shall protect the lawful rights and interests of aliens on Chinese territory. Aliens’ personal liberty is inviolable. No alien may be arrested except when it is under the approval or by decision of people`s procuratorates or people`s courts, and arrest must be made by a public security organ or state security organ.

Article 5 Aliens in China must abide by Chinese laws and should not endanger the state security of China, harm public interests or disrupt public order.

Chapter II Entry into the Country

Article 6 For entry into China, aliens shall apply for visas from Chinese diplomatic missions, consular offices or other resident agencies abroad which are authorized by the Ministry of Foreign Affairs. In particular situations, aliens may, in compliance with the provisions of the State Council, apply for visas to visa-granting offices at ports designated by competent authorities of the Chinese Government. The entry of aliens from countries having visa agreements with the Chinese Government shall be handled in accordance with those agreements. In cases where another country has special provisions for Chinese citizens’ entering and transiting that country, competent authorities of the Chinese Government may adopt reciprocal measures contingent on the circumstances. Visas are not required for aliens in immediate transit on connected international flights who hold passenger tickets and stay for no more than 24 hours in China entirely within airport boundaries. Anyone desiring to leave the airport temporarily must obtain permission from the frontier inspection office.

Article 7 When applying for visas, aliens shall present valid passports and, if necessary, provide pertinent evidence.

Article 8 Aliens who have been invited or hired to work in China shall, when applying for visas, present evidence of the invitation or employment.

Article 9 Aliens desiring to reside permanently in China shall, when applying for visas, present status-of-residence identification forms. Applicants may obtain such forms from public security organs at the place where they intend to reside.

Article 10 The competent authorities of the Chinese Government shall issue appropriate visas to aliens according to their purposes stated in their entry applications.

Article 11 When an aircraft or a vessel navigating international routes arrives at a Chinese port, the captain or his agent must submit a name list of passengers to the frontier inspection office; a foreign aircraft or vessel must also provide a name list of its crew members.

Article 12 Aliens who are considered a possible threat to China`s state security or public order shall not be permitted to enter China.

Chapter III Residence

Article 13 For residence in China, aliens must possess identification papers or residence certificates issued by competent authorizes of the Chinese Government. The term of validity of identification papers or residence certificates shall be determined according to the purposes of entry. Aliens residing in China shall submit their certificates to the local public security organs for examination within the prescribed period of time.

Article 14 Aliens who, in compliance with laws in China,,find it necessary to establish prolonged residence in China for the purpose of investing in China or being engaged in cooperative projects with Chinese enterprises or institutions in economic, scientific, technological or cultural fields, or for other purposes, are eligible for prolonged or permanent residence in China upon approval by competent authorities of the Chinese Government.

Article 15 Aliens who seek asylum for political reasons shall be permitted to reside in China upon approval by competent authorities of the Chinese Government.

Article 16 For aliens who fail to abide by Chinese laws, their period of stay in China may get curtailed or their status of residence in China annulled by competent authorities of the Chinese Government.

Article 17 For a temporary overnight stay in China, aliens shall complete registration procedures pursuant to relevant provisions.

Article 18 Aliens who have had residence certificates and wish to change their place of residence in China must complete removal formalities in accordance with the relevant provisions.

Article 19 Aliens who have not acquired residence certificates or are on a study programm in China shall not seek employment in China without permission from competent authorities of the Chinese Government.

Chapter IV Travel

Article 20 Aliens who hold valid visas or residence certificates may travel to places open to aliens as designated by the Chinese Government.

Article 21 Aliens desiring to travel to places forbidable for aliens must apply to local public security organs for travel permits.

Chapter V Exit from the Country

Article 22 In their exit from China, aliens shall present their valid passports or other valid certificates.

Article 23 Aliens belonging to any of the following groups shall not be allowed to leave China:(�) defendants in criminal cases or criminal suspects confirmed by public security organs, people`s procuratorates or people`s courts;(�) persons whose exit, as is notified by a people`s court, shall be denied owing to involvement in unresolved civil cases; and(�) persons who have committed other deedes in violation of laws in China and against whom competent authorities consider it necessary to institute prosecution.

Article 24 Frontier inspection offices shall be authorized to stop aliens belonging to any of the following groups from leaving the country and deal with them according to relevant laws:(�) holders of invalid exit certificates;(�) holders of exit certificates other than their own; and (�) holders of forged or altered exit certificates.

Chapter VI Administrative Organs

Article 25 China`s diplomatic missions, consular offices and other resident agencies abroad authorized by the Ministry of Foreign Affairs shall be regarded as the Chinese Government`s agencies abroad which shall handle aliens` applications for entry and transit. The Ministry of Public Security, its authorized local public security organs, the Ministry of Foreign Affairs and its authorized local foreign affairs departments shall be regarded as the Chinese Government`s agencies in China which shall handle aliens` applications for entry, transit, residence and travel.

Article 26 The authorities responsible for handling aliens` applications for entry, transit, residence and travel shall be authorized to refuse to issue visas and certificates, cancel visas and certificates already issued, or declare them invalid. The Ministry of Public Security and the Ministry of Foreign Affairs may, when necessary, alter decisions made by their authorized agencies.

Article 27 An alien who enters or resides in China illegally may be detained for examination or be subjected to residential surveiance or deportation by a public security organ at or above the county level.

Article 28 While performing their duties, foreign affairs police of the public security organs at or above the county level shall be authorized to examine the passports and other certificates of aliens. When conducting such examinations, the foreign affairs police shall present their own service certificates, and relevant organizations or individuals shall have the duty to offer them assistance.

Chapter VII Penalties

Article 29 If a person, in violation of the provisions of this law, enters or leaves China illegally, establishes illegal residence or makes an illegal stop-over in China, travels to places forbidable for aliens without a valid travel document, forges or alters an entry or exit certificate, uses another person`s certificate as his own or transfers his certificate, he may be penalized by a public security organ at or above the county level with a warning, a fine or detention for no more than ten days. If the circumstances of the case are serious enough to constitute a crime, criminal responsibility shall be investigated in accordance with the laws. If an alien subject to a fine or detention by a public security organ refuses to accept the penalty, he may, within 15 days of receiving notification, appeal to the public security organ at the next higher level, which shall make the final decision; he may also directly file suit in the local people`s court.

Article 30 In cases where a person commits any of the acts stated in Article 29 of this Law, if the circumstances are serious, the Ministry of Public Security may impose a penalty by ordering him to leave the country within a certain time or may expel him from the country.

Chapter VIII Supplementary Provisions

Article 31 For the purposes of this Law the term "alien" denotes persons not holding Chinese nationality according to the Nationality Law of the People`s Republic of China.

Article 32 Transitory entry into and exit from China by aliens who are citizens of a country adjacent to China and who reside in areas bordering on China shall be handled according to relevant agreements between the two countries or, in the absence of such agreements, according to the relevant provisions of the Chinese Government.

Article 33 The Ministry of Public Security and the Ministry of Foreign Affairs shall, pursuant to this Law, formulate rules for its implementation, which shall go into effect after being submitted to and approved by the State Council.

Article 34 Affairs concerning members of foreign diplomatic missions and consular offices in the People`s Republic of China and other aliens who enjoy diplomatic privileges and immunities, after their entry into China, shall be administered in accordance with the relevant provisions of the State Council and its competent departments.

Article 35 This Law shall go into effect on February 1, 1986.

    (Adopted at the 17th Meeting of the Standing Committee of the Seventh National Peoples Congress on December 28,1990.)

　Chapter 1 General Provisions
　Article 1 [Purpose and Basis] This Law is formulated in accordance with the Constitution for the purpose of protecting the lawful rights and interests of,and developing undertakings for disabled persons,and ensuring their equal and full participation in social life and their share of the material and cultural wealth of society.
　Article 2 [Definition,Categories and Criteria] A disabled person refers to one who suffers from abnormalities of loss of a certain organ or function, psychologically or physiologically, or in anatomical structure and has lost wholly or in part the ability to perform an activity in the way considered normal.
　The term "disabled persons" refers to those with visual, hearing, speech or physical disabilities, mental retardation, mental isorder, multiple disabilities and/or other disabilities.
　The criteria for classification of disabilities shall be established by the State Council.

　Article 3 [Protection of Rights] Disabled persons shall enjoy equal rights with other citizens in political,economic,cultural and social fields, in family life and other aspects.
　The citizen's rights and personal dignity of disabled persons shall be protected by law.
　Discrimination against, insult of and infringement upon disabled persons shall be prohibited.

　Article 4 [Special Assistance] The state shall provide disabled persons with special assistance by adopting supplementary methods and supportive measures with a view to alleviating or eliminating the effects of their disabilities and external barriers and ensuring the realization of their rights.

　Article 5 [Special Assurance] The state and society shall provide special assurance,preferential treatment and pension for wounded or disabled servicemen and persons disabled while on duty or for protecting the interests of the state and people.

　Article 6 [Responsibilities of Government] The people's governments at all levels shall incorporate undertakings for disabled persons into plans for economic and social development through budget arrangement, overall planning and coordination and other measures under strengthened leadership with a view to ensuring that undertakings for disabled persons develop in coordination with economic and social progress.
　The State Council and the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall adopt organizational measures to coordinate departments concerned in the work for people with disabilities.
　The establishment of specific institutions shall be decided upon by the State Council and/or the people's governments of provinces, autonomous regions and municipalities directly under the Central Government.
　Departments concerned under the people's governments at various levels shall keep in close contact with disabled persons, solicit their opinions and fulfill respectively their own duties in the work for disabled persons.

　Article 7 [Responsibilities of the Society] The whole society should display socialist humanitarianism, understand, respect, care for and assist people with disabilities and support the work for disabled persons.
　State organs, non-governmental organizations,enterprises,institutions and urban and rural organizations at grassroots level should do their work for disabled persons well, as is within their responsibility.
　State functionaries and other personnel engaged in the work for disabled persons should work hard to fulfill their lofty duties in serving disabled people.

　Article 8 [Responsibilities of Disabled Persons' Federation] China Disabled Persons' Federation (CDPF) and its local branches shall represent the common interests of disabled persons, protect their lawfulrights and interests, unite, educate disabled persons, and provide service for disabled persons.
　CDPF shall undertake tasks entrusted by the government, conduct work for disabled persons and mobilize social forces in developing undertakings for disabled persons.
　Article 9 [Responsibilities of Fosterer,Guardian and Family Member] Legal fosterers of disabled persons must fulfill their duties towards their charges.
　Guardians of disabled persons must fulfill their duties of guardianship and protect the lawful rights and interests of their charges.
　Family members and guardians of disabled persons should encourage and assist disabled persons to enhance their capability of self-reliance.
　Maltreatment and abandoning of disabled persons shall be prohibited.
　Article 10 [Obligations of Disabled Persons] Disabled persons must abide by laws, carry out their due obligations,observe public order and respect social morality.
　Disabled persons should display an optimistic, and enterprising spirit, have a sense of self-respect, self-confidence, self-strength and self-reliance, and make contributions to the socialist construction.

　Article 11 [Prevention of Disabilities] The state shall undertake, in a planned way, the work of disability prevention, strengthen leadership in this regard, publicize and popularize knowledge of good pre-natal and post-natal care as well as disability prevention, formulate aws and regulations dealing with disability causing factors such heredity, diseases, medical poisoning, accidents, calamity and environmental pollution and adopt measures to prevent the occurrence and aggravation of disabilities by organizing and mobilizing social forces.

　Article 12 [Award] Governments and departments concerned shall award those disabled persons who have made notable achievements in socialist construction and those units or individuals who have made remarkable contributions to safeguarding the lawful rights and interests of disabled people, promoting undertakings and providing service for disabled persons.

　Chapter 2 Rehabilitation 
　Article 13 [Responsibilities] The state and society shall adopt measures of rehabilitation to help disabled persons regain normal functions or compensate for lost functions, thus enhancing their ability to participate in social life.

　Article 14 [Guiding Principle] The work of rehabilitation shall, proceeding from the actual conditions, combine modern rehabilitation techniques with traditional Chinese techniques, with rehabilitation institutions as the core and the community-based rehabilitation as the basis and relying on the families of disabled persons for support.
　Emphasis shall be laid on rehabilitation projects which are practical, easy to realize and widely beneficial. Efforts shall also be made in the research, exploration and application of new rehabilitation technology so as to provide more effective service for disabled persons.

　Article 15 [Implementation] The governments and departments concerned should establish in a planned way medical rehabilitation departments (sections) in hospitals, set up appropriate special institutions of rehabilitation and carry out clinical practice and training, scientific research, personnel training and work of technical guidance in the field of rehabilitation.
　The people's government and departments concerned at various levels should organize and guide urban and rural community service networks, medical preventionnd health care networks, organizations and families of disabled persons and other social forces in carrying out community-based rehabilitation work.
　Departments of education, welfare enterprises and institutions and other service organizations for disabled persons should create conditions for rehabilitation training activities.
　Disabled persons with guidance from professional personnel and help from relevant staff, volunteers and family members, should actively take part in training programmes for functional recovery, and acquiring self-care ability and work skills.
　The State Council and departments concerned shall determine priority rehabilitation projects by stages, formulate plans thereof and organize forces for their implementation.

　Article 16 [Personnel Training] Medical colleges and schools and other relevant eductional institutes should, in a planned way, offer curricula and specialities on rehabilitation so as to train various kinds of rehabilitation specialists.
　The state and society shall provide various forms of technical training for personnel engaged in rehabilitation work, popularize knowledge of rehabilitation among disabled persons, their family members, relevant staff and volunteers and teach them methods of rehabilitation.
　Article 17 [Appliances] Governmental departments concerned should organize and support the research, production, supply and maintenance of rehabilitation equipment, appliances for self service, special utensils and other aids for disabled persons.

　Chapter 3 Education
　Article 18 [Responsibilities] The state shall guarantee the right of disabled persons to education.
　People's governments at various levels should make education of disabled persons a component of the state educational programme,include it in their overall planning and strengthen leadership in this respect.
　The state, society, schools and families shall provide compulsory education for disabled children and juveniles.
　The state shall exempt disabled students who accept compulsory education from tuition and reduce sundry fees or exempt them from such fees according to actual situations.
　The state shall set up grant-in-aid to assist students who are poor and disabled.

　Article 19 [Education According to Different Characteristics] The education of disabled persons shall be carried out according to their physical and psychological features and needs and shall meet the following requirements:
　Strengthen physical and psychological compensation and vocational and technical training while providing ideological and cultural education;
　Adopt ordinary or special methods of education according to different categories of disabilities and varied abilities of response of the disabled persons; and
　The curricula, teaching materials and methods for special education and the age requirement for admission and schooling may be determined with appropriate flexibility.

　Article 20 [Principle of Development] The principle of combining popularization with upgrading of quality shall be implemented in education of disabled persons, with emphasis on the former.
　Priority shall be given to compulsory education and vocational and technical education while efforts shall be made to carry out preschool education and gradually develop education at and above the senior middle school level.

　Article 21 [Channels of Education] The state shall set up educational institutions for disabled persons and encour age social forces to run schools and donate funds for schools.

　Article 22 [Methods of Ordinary Education] Ordinary educational institutions shall provide education for disabled persons who are able to receive ordinary education.
　Ordinary primary schools and junior middle schools must admit disabled children or juveniles who are able to adapt themselves to life and study there; ordinary senior middle schools, secondary polytechnic schools, technical schools and institutions of higher learning must admit disabled students who meet the state admission requirements and shall not deny their admission because of their disabilities;  in case of such denial, the disabled students, their family members or guardians may appeal to the relevant authorities for disposition. The relevant authorities shall instruct the schools concerned to enroll the students.
　Ordinary institutions of preschool education shall admit disabled children who are able to adapt themselves to the life there.

　Article 23 [Methods of Special Education] Preschool education institutions for disabled children, classes for disabled children attached to ordinary preschool education institutions, preschool classes of special education schools, welfare institutions for disabled children and families of disabled children shall be responsible for preschool education of disabled children.
　Special schools at or below junior middle school level and special classes attached to ordinary schools shall be responsible for the implementation of compulsory education for disabled children and juveniles who are not able to respond to ordinary education.
　Special schools and special classes attached to ordinary schools at or above senior middle school level, as well as institutions of vocational and technical education for disabled persons, shall be responsible for providing cultural education at or above senior middle school level and vocational and technical education for eligible disabled persons.

　Article 24 [Adult Education] Governmental departments concerned, units where disabled persons work and society shall carry our anti-illiteracy education, vocational training and other forms of adult education for disabled persons and encourage them to tap their talents in the self-taught way.

　Article 25 [Teaching Staff] The state shall systematically set up various forms of normal schools and specialities for special education at different levels and special education classes (departments) attached to ordinary normal schools to educate and train teaching staff for special education.
　Ordinary normal schools shall offer curricula or lectures on special education so that teachers in ordinary education may have some necessary knowledge of special education.
　Teachers of special education and sign language interpreters shall enjoy allowances for special education.

　Article 26 [Auxiliary Means] Governmental departments concerned shall organize and support the research and application of braille and sign language, the compilation, writing and publication of special education teaching materials and the research, production and supply of teaching apparatus and other auxiliary facilities for special education.

　Chapter 4 Employment
　Article 27 [Responsibilities] The state protects disabled persons the right to work.
　People's governments at various levels shall formulate overall plans on employment of disabled persons and create condition for their employment.

　Article 28 [Guiding Principles] Employment of disabled persons shall follow the principle of combining concent rative arrangement with dispersed arrangement. Preferential policies and measures of support and protection shall be adopted with a view to gradually popularizing, stabilizing and rationalizing employment of disabled persons through multiple channels, at various levels and in a variety of forms.

　Article 29 [Concentrative Employment] The state and society shall set up welfare enterprises for disabled persons, work-rehabilitation centres, Tuina-massage hospitals and clinics and other enterprises and institutions of welfare nature as a way of providing concentrative employment for disabled persons.

　Article 30 [Dispersed Employment] The state shall promote the employment of disabled persons by various units.
　People's governments at all levels and departments concerned shall organize and provide guidance in this regard.State organs, nongovernmental organizations, enterprises, institutions and urban and rural collective economic organizations should employ a certain proportion of disabled persons in appropriate types of jobs and posts.
　The specific ratio may be determined by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government in line with their actual conditions.

　Article 31 [Self-employment] Governmental departments concerned shall encourage and assist disabled persons to obtain employment through voluntary organization or to open individual business.

　Article 32 [Rural Labour] Local people's governments at various levels and rural grassroots organizations shall organize and support disabled persons in rural areas to engage in farming, planting, animal breeding, handicraft industry and other forms of production.

　Article 33 [Preferential Treatment and Assistance] The state shall implement the policy of tax reduction or exemption in relation to welfare enterprises and institutions for disabled persons and self-employed disabled workers in urban and rural areas,and provide assistance in production, management, technology, capital, materials supply, working sites and other fields.
　Local people's governments and departments concerned shall determine the types of products suitable for production by disabled persons, give priority to welfare enterprises for disabled persons to produce such products and gradually determine which products are to be produced exclusively by such enterprises.
　Governmental departments concerned shall, in determining the quota for recruiting and employing workers and staff members, allot a certain proportion of the quota to disabled persons.
　Departments concerned shall, in verifying and issuing business licenses,give priority to disabled persons who apply for licenses as self-employed workers or businessmen and give them preferential treatment in allotting work sites and loans and in other ways.
　Departments concerned shall provide assistance for disabled persons engaged in various kinds of labour in rural areas by way of production services, technical guidance, supply of materials for agricultural use, collection and purchase of farm and sideline products and loans.
　Article 34 [Protection] The state shall protect the property ownership and the managerial decision making power of welfare enterprises and institutions for disabled persons, whose lawful rights and interests shall not be violated.
No discrimination shall be practised against disabled persons in recruitment,employment,obtainment of permanent status, promotion, determining technical or professional titles, payment, welfare, labour insurance or in other aspects.
No enterprises or institutions shall deny graduates assigned by the state from institutions of higher learning,polytechnic schools or technical schools solely on the ground of their disabilities;
　In case of such denial, the disabled graduates may appeal to departments concerned for disposition and the relevant departments shall instruct the enterprises or institutions concerned to accept the said graduate students.
　Enterprises and institutions where disabled persons work shall provide the disabled workers with appropriate working conditions and labour protection.

　Article 35 [Training of Employees] Enterprises and institutions where disabled persons work shall provide in-service technical training for disabled employees with a view to upgrading their skills and techniques.

　Chapter 5 Cultural Life
　Article 36 [Responsibilities] The state and society shall encourage and assist disabled persons to participate in various forms of cultural, sports and recreative activities and work to meet the needs of the spiritual and cultural life of disabled persons.

　Article 37 [Guiding Principles] Cultural, sports and recreative activities for disabled persons should be oriented towards grassroots levels, integrated in public cultural life and geared to the different characteristics and needs of different categories of disabled persons with a view to bringing about extensive participation.
　Article 38 [Measures] The state and society shall adopt the following measures to enrich the spiritual and cultural life of disabled persons:
　Reflect the life of disabled persons through radio, film, television, press and periodicals, books and other media in the interests of disabled persons.
　Organize and support the compilation,writing and publication of braille books, talking books for blind persons and reading materials for deaf and mentally retarded persons; offer TV programmes in sign language and put in subtitles or narrations in some movies and TV programmes.
　Organize and support disabled persons for mass cultural, sports and recreative activities,stage special art performances, hold special sports meets and participate in major international sports games and exchanges; and
　Provide facilities and accommodations for disabled persons at places of cultural, sports, recreative and other public activities and set up in a planned way activity centres for disabled persons.

   Article 39 [Encouraging Creative Activities] The state and society shall encourage and assist disabled persons to engage in literature, art, education, science, technology and other creative work beneficial to the people.

　Chapter 6 Welfare
　Article 40 [Responsibilities] The state and society shall adopt supportive, relief and other welfare measures to secure and improve the life of disabled persons.

　Article 41 [Relief and Foster] The state and society shall provide relief and subsidies through various channels for disabled persons with real financial difficulties.
　The state and society shall foster and provide relief, in accordance with relevant regulations, for disabled persons without work capabilities, legal fosterer or financial resource.

　Article 42 [Insurance] Units where disabled persons work, urban and rural grassroots organizations and families of disabled persons should encourage and assist disabled persons to sign up for social insurance.

　Article 43 [Welfare and Placement] People's governments at various levels and the society shall establish welfare centres and other placement and foster institutions, settle and foster disabled persons in accordance with relevant regulations and gradually improve their living standards.
　Article 44 [Preferential Treatment and Accommodations] Agencies of pubilc services shall provide preferential and auxiliary services for disabled persons.
　In taking public transport vehicles,disabled persons shall be provided with facilities and accommodations; they shall be permitted to carry on board their indispensable equipment free of charge.
　Blind persons may take local buses, trolleybuses, subways and ferries free of charge.
　Mailing and delivery of publications for blind persons shall be free of charge.
　People's governments at county and township levels shall, in line with the actual conditions, reduce or exempt disabled persons in rural areas from obligatory labour, public utilities fees and other social obligations.
　People's governments at various levels shall step by step increase their care and support for people with disabilities.

　Chapter 7 Environment
　Article 45 [Responsibilities] The state and society shall step by step create a sound environment to improve the conditions for disabled persons to participate in social life.

　Article 46 [Barrier-free Facilities] The state and society shall gradually regularize the Design Code for the Accessibility of Disabled Persons to Urban Roads and Buildings and adopt barrierfree measures.
　Article 47 [Mutual Understanding and Assistance] The state and society shall promote mutual understanding and exchanges between disabled persons and their fellow-citizens, publicize undertakings for disabled persons and deeds of assisting disabled persons, promulgate the unyielding spirit of disabled persons and foster a social environment of unity, fraternity and mutual assistance.
 　Article 48 [National Day of Assisting Disabled Persons] The third Sunday of May each year is the National Day of Assisting Disabled Persons.

　Chapter 8 Legal Liability
　Article 49 [Appeal and Prosecution] Where the lawful rights and interests of disabled persons are violated, the off ended persons or their agents shall have the right to appeal to the competent authorities for disposition, or institute lawsuits at people's courts in accordance with law.
　Article 50 [Administrative Liability] Where government functionaries neglect their duties, in violation of the law, and infringe upon the lawful rights and interests of disabled persons, the units to which they belong or their higher authorities shall instruct such persons to correct their wrong doings or subject them to administrative sanctions.

　Article 51 [Civil Liability] Whoever infringes upon the lawful rights and interests of a disabled person and causes property or other losses or damage shall compensate for the losses or damage according to law or bear other civil liabilities.

　Article 52 [Administrative Punishment and Criminal Liability] Whoever infringes upon the right of person or other lawful rights of disabled persons by taking advantage of their disabilities, and which constitutes a crime, shall be given a heavier punishment in accordance with the relevant provisions of the Criminal Law. 
　Whoever, by violence or other means, publicly insults disabled persons, shall, if the circumstances are serious, be investigated for criminal responsibility in accordance with the provisions of Article 145 of the Criminal Law, and, if the circumstances are less serious, be subject to punishment in accordance with the provisions of Article 22 of the Regulations on Administrative Penaltives for Public Security.
　Whoever maltreats disabled persons shall be punished in accordance with the provisions of Article 22 of the Regulations on Administrative Penalties for Public Security; and, if the circumstances are flagrant, he shall be investigated for criminal responsibility in accordance with the provisions of Article 182 of the Criminal Law.
　Whoever refuses to perform his duty of fostering a disabled person who is unable to live independently, shall, if the circumstances are flagrant, or if he abandons such a disabled person, be investigated for criminal responsibility in accordance with the provisions of Article 183 of the Criminal Law.
　Whoever rapes a disabled person who is unable to account for her own conduct due to mental retardation or mental disorder shall be deemed to have committed rape and shall be investigated for criminal responsibility in accordance with the provisions of Article 139 of the Criminal Law.
　
　Chapter 9 Supplementary Provisions
　Article 53 [Regulations and Local Status] Departments concerned under the State Council shall formulate relevant regulations in accordance with this Law and submit them to the State Council for approval before implementation.
　The standing committees of the people's congresses of provinces, autonomous regions and municipalities directly under the Central Government may formulate measures of implementation in accordance with this Law.
　
　Article 54 [Entry into Force] This Law shall enter into force as of May 15,1991.

Chapter 1 General Provisions

Article 1 This Law is formulated with a view to expanding the opening to the outside world, developing foreign trade, maintaining foreign trade order, protecting the legitimate rights and interests of foreign trade dealers and promoting the sound development of the socialist market economy.

Article 2 This Law applies to foreign trade and the protection of trade-related aspects of intellectual property rights. For the purposes of this Law, "foreign trade" refers to import and export of goods and technologies and the international trade in services.

Article 3 The authority responsible for foreign trade under the State Council is in charge of the administration of the foreign trade of the entire country pursuant to this Law.

Article 4 The State shall pursue a uniform foreign trade regime, encourage the development of foreign trade and maintain fair and free foreign trade order.

Article 5 The people`s Republic of China shall, on the principle of equality and mutual benefit, promote and develop trade relations with other countries and regions, enter into or participate in such regional economic trade agreements as customs union agreement, free trade agreement and participate in regional economic organizations.

Article 6 The People`s Republic of China shall, in accordance with the international treaties and agreements to which it is a contracting party or a participating party grant the other contracting parties or participating parties, or on the principle of reciprocity grant the other party most-favored-nation treatment or national treatment in the field of foreign trade.

Article 7 In the event that any country or region applies prohibitive, restrictive or other like measures on a discriminatory basis against the People`s Republic of China in respect of trade, the People`s Republic of China may, as the case may be, take counter-measures against the country or region in question.

Chapter 2 Foreign Trade Dealers 

Article 8 For the purposes of this Law, "foreign trade dealers" refers to legal persons, other organizations or individuals that have fulfilled the industrial and commercial registration or other practicing procedures in accordance with laws and engage in foreign trade dealings in compliance with this Law and other relevant laws and administrative regulations.

Article 9 Foreign trade dealers engaged in import and export of goods or technologies shall register with the authority responsible for foreign trade under the State Council or its authorized bodies unless laws, regulations and the authority responsible for foreign trade under the State Council do not so require. The specific measures for registration shall be laid down by the authority responsible for foreign trade under the State Council. Where foreign trade dealers fail to register as required, the Customs authority shall not process the procedures of declaration, examination and release for the imported and exported goods.

Article 10 The international trade in services shall be carried out in compliance with the provisions of this Law and other relevant laws and administrative regulations. The units engaged in foreign contract of construction project or foreign labor cooperation shall be equipped with corresponding eligibility or qualification. The specific measures therefore shall be laid down by the State Council.

Article 11 The State may implement state trading on certain goods. The import and export of the goods subject to state trading shall be operated only by the authorized enterprises unless the state allows the import and export of certain quantities of the goods subject to state trading to be operated by the enterprises without authorization. The lists of the goods subject to state trading and the authorized enterprises shall be determined, adjusted and made public by the authority responsible for foreign trade under the State Council in conjunction with other relevant authorities under the State Council. In the event of importation of the goods subject to state trading without authorization in violation of paragraph 1 of this Article, the Customs shall not grant release.

Article 12 Foreign trade dealers may accept the authorization of others and conduct foreign trade as an agent within its scope of business.

Article 13 Foreign trade dealers shall, in accordance with the regulations laid down by the authority responsible for foreign trade under the State Council or other relevant authorities under the State Council in accordance with law, submit the documents and materials relevant to their foreign trade dealings to relevant authorities. The authorities concerned shall keep business secrets confidential for the providers thereof.

Chapter 3 Import and Export of Goods and Technologies

Article 14 The State permits free import and export of goods and technologies unless the laws or administrative regulations provide otherwise.

Article 15 The authority responsible for foreign trade under the State Council may, in accordance with the need to supervise import and export, implement automatic import and export licensing certain goods subject to free import and export and make public the list thereof. Where the consignee or the consigner of the imported or exported goods subject to automatic licensing submits the automatic licensing application before going through the Customs declaration procedures, the authority responsible for foreign trade under the State Council or its authorized authorities shall grant approval. In case of failure to accomplish automatic licensing procedures, the Customs shall not grant release. In the case of importing or exporting technologies subject to free import and export, the contracts thereof shall be registered with the authority responsible for foreign trade under the State Council or its authorized authorities.

Article 16 The State may restrict or prohibit the import or export of relevant goods and technologies for the following reasons that: 
(1) the import or export needs to be restricted or prohibited in order to safeguard the state security, public interests or public morals, 
(2) the import or export needs to be restricted or prohibited in order to protect the human health or security, the animals and plants life or health or the environment, 
(3) the import or export needs to be restricted or prohibited in order to implement the measures relating to the importations and exportations of gold or silver, 
(4) the export needs to be restricted or prohibited in the case of domestic shortage in supply or the effective protection of exhaustible natural resources, 
(5) the export needs to be restricted in the case of the limited market capacity of the importing country or region, 
(6) the export needs to be restricted in the case of the occurrence of serious confusion in the export operation order, 
(7) the import needs to be restricted in order to establish or accelerate the establishment of a particular domestic industry, 
(8) the restriction on the import of agricultural, animal husbandry or fishery products in any form is necessary, 
(9) the import needs to be restricted in order to maintain the State`s international financial status and the balance of international payment, 
(10) the import or export needs to be restricted or prohibited as laws and administrative regulations so provide, or 
(11) the import or export needs to be restricted or prohibited as the international treaties or agreements to which the state is a contracting party or a participating party so require.

Article 17 The State may, in the case of the import or export of the goods and technologies relating to fissionable and fissionable materials or the materials form which they are derived as well as the import or export relating to arms, ammunition and implements for war, take any measures as necessary to safeguard the state security. The State may, in the time of war or for the protection of international peace and security, take any measures as necessary in respect of import or export of goods and technologies.

Article 18 The authority responsible for foreign trade under the State Council in conjunction with other relevant authorities under the State Council shall, in accordance with the provisions of Articles 16 and 17 in this Law, establish, adjust and publish the list of goods and technologies of which the import or export is subject to restrictions or prohibitions. The authority responsible for foreign trade under the State Council independently or in conjunction with other relevant authorities under the State Council may, with the approval from the State Council, decide, on a temporary basis, to impose restrictions or prohibitions on the import or export of goods and technologies not included in the list provided in the above paragraph within the meaning of Article 16 and Article 17 in this Law.

Article 19 Goods subject to import or export restriction shall be subject to quota and/or licensing control; technologies whose import or export is restricted shall be subject to licensing control. Import or export of any goods and technologies subject to quota and/or licensing control will be effected only with the approval of the authorities responsible for foreign trade under the State Council or the joint approval of the foregoing authorities and other relevant authorities under the State Council in compliance with the provisions of the State Council. Certain imported goods may be subject to tariff rate quota control.

Article 20 Quotas and tariff rate quotas of the imported and exported goods shall be distributed on the principles of transparency, equity, impartiality and efficiency by the authority responsible for foreign trade under the State Council or the relevant authorities under the State Council within their respective responsibilities. Specific measures for the distribution shall be laid down by the State Council.

Article 21 The state shall implement the commodity assessment system in a uniform manner and in accordance with the provisions of relevant laws and administrative regulations carry out certification, inspection or quarantine in respect of imported and exported commodities.

Article 22 The state shall implement origin management in respect of the imported and exported goods. Specific measures therefore shall be laid down by the State Council.

Article 23 Where the import or export of cultural relics, wildlife animals, plants and the products thereof are prohibited or restricted by other laws or administrative regulations, the provisions of relevant laws and regulations shall be observed.

Chapter 4 International Trade in Services

Article 24 In respect of international trade in services, the People`s Republic of China shall, in accordance with the commitments made in international treaties or agreements to which the People`s Republic of China is a contracting party or a participating party, grant the other contracting parties or participating parties market access and national treatment.

Article 25 The authority responsible for foreign trade under the State Council in conjunction with other relevant authorities under the State Council shall, pursuant to provisions of this Law and other laws and administrative regulations, administer the international trade in services.

Article 26 The State may impose restrictions and prohibitions on the international trade in services for the reasons that: 
(1) restrictions or prohibitions are needed to safeguard the state security, public interests or public morals, 
(2) restrictions or prohibitions are needed to protect the human health or security, the animals and plants life or health or the environment, 
(3) restrictions are needed to establish or accelerate the establishment of a particular domestic service industry, 
(4) restrictions are needed to maintain the balance of international payment of the state, 
(5) restrictions or prohibitions are needed as laws and administrative regulations so provide, or 
(6) restrictions or prohibitions are needed as the international treaties or agreements to which the state is a contracting party or a participating party so require.

Article 27 The State may, in the case of military-related international trade in services, as well as the international trade in services relating to fissionable and fissionable materials or the materials form which they are derived, take any measures as necessary to safeguard the state security. The state may, in the time of war or for the protection of international peace and security, take any measures as necessary in respect of international trade in services.

Article 28 The authority responsible for foreign trade under the State Council in conjunction with other relevant authorities under the State Council shall, in accordance with the provisions of Articles 26 and 27 in this Law and other relevant laws and administrative regulations, determine, adjust and publish the market access list of international trade in services.

Chapter 5 Protection of Trade-Related Aspects of Intellectual Property Rights

Article 29 The State shall, in accordance with laws and administrative regulations relevant to intellectual property rights, protect trade-related aspects of intellectual property rights. Where the imported goods infringe intellectual property rights and impair foreign trade order, the authority responsible for foreign trade under the State Council may take such measures as prohibiting the import of the relevant goods from being produced or sold by the infringe within a certain period.

Article 30 Where the intellectual property right owner is involved in any one of such practices as preventing the licensee form challenging the validity of the intellectual property right in the licensing contract, conducting coercive package licensing or incorporating exclusive grantback conditions in the licensing contract, which impairs the fair competition order of foreign trade, the authority responsible for foreign trade under the State Council may take measures as necessary to eliminate such impairment.

Article 31 If other countries or regions do not grant the legal persons, other organizations and individual from the People`s Republic of China national treatment in respect of the protection of intellectual property rights, or cannot provide adequate and effective protection of intellectual property rights for the goods, technologies or services from the People`s Republic of China, the authority responsible for foreign trade under the State Council may, in accordance with the provisions of this Law and other relevant laws and administrative regulations and the international treaties or agreements to which the People`s Republic of China is a contracting party or a participating party, take measures as necessary in respect of the trade with the country or region in question.

Chapter 6 Foreign Trade Order

Article 32 In foreign trade dealings, monopolistic behavior in violation of relevant provisions of anti-monopoly laws and administrative regulations is not allowed. In foreign trade dealings, any monopolistic behavior with the effect of eliminating market fair competition shall be disposed of in accordance with relevant provisions of anti-monopoly laws and administrative regulations. Where any activities in violation of laws set forth in the former paragraph occur with the effect of impairing foreign trade order, the authority responsible for foreign trade under the State Council may take measures as necessary to eliminate the impairment.

Article 33 In foreign trade activities, such unfair competition activities as selling the products at unreasonable low prices, colluding with each other in a tender, producing and releasing false advertisements and conducting commercial bribery and others like are not allowed. Any unfair competitive practice conducted in the foreign trade activities shall be disposed of in accordance with relevant laws and administrative regulations against unfair competition. Where any illegal activities as provided in the previous paragraph occur with the effect of impairing foreign trade order, the authority responsible for foreign trade under the State Council may take such measures as prohibiting the dealer from importing and exporting relevant goods and technologies to eliminate the impairment.

Article 34 The following practices are not allowed in foreign trade activities: 
(1) forgery, distortion of origin marks of the imported and exported goods; forgery, distortion or trading of origin certificates of imported or exported goods, import and export licenses, certificates of import and export quota or any other certificate for import and export; 
(2) defrauding the State of the refunded tax on exports; 
(3) smuggling; 
(4) evading certification, inspection and quarantine inspection as provided by laws and administrative regulations; 
(5) other activities in violation of the provisions of laws and administrative regulations.

Article 35 In foreign trade activities, foreign trade dealers shall act in compliance with relevant provisions of foreign exchange administration of the state.

Article 36 The authority responsible for foreign trade under the State Council may give a notice to the public the activities in violation of this Law for impairing foreign trade order.

Chapter 7 Foreign Trade Investigation

Article 37 In order to maintain the foreign trade order, the authority responsible for foreign trade under the State Council may carry out investigations on the following matters in accordance with laws and administrative regulations at its disposal or in conjunction with other relevant administrations: 
(1) the impact on the domestic industry as well as the competitive strengths of import and export of goods, import and export of technologies and international trade in services; 
(2) trade barriers of relevant countries or regions; 
(3) matters needed to be investigated on in order to determine whether such foreign trade remedies as anti-dumping, countervailing or safeguard measures shall be taken; 
(4) activities that circumvent foreign trade remedies; 
(5) matters in relation to state security in foreign trade; 
(6) matters needed to be investigated on in order to enforce the provisions of Articles 7, 29(2),30,31,32(3) and 33(3). 
(7) Other matters which may have impact on foreign trade order and need to be investigated on.

Article 38 The authority responsible for foreign trade shall give a notice in case of initiating foreign trade investigations. The investigation may take the form of questionnaires in writing, hearings, on-the-spot investigations, entrusted investigations and otherwise. The authority responsible for foreign trade under the State Council shall, on the basis of the findings, submit investigation reports or make determinations and give public notices.

Article 39 Relevant units and individuals shall provide the foreign trade investigation with cooperation and assistance. The authority in charge of foreign trade and other authorities under the State Council as well as their staff members shall have the obligation to keep the state secrets and business secrets known to them confidential during foreign trade investigations.

Chapter 8 Foreign Trade Remedies

Article 40 The State may take appropriate foreign trade remedies on the basis of the findings of foreign trade investigation.

Article 41 Where a product from other countries or regions is dumped into the domestic market at a price less than its normal value and under such conditions as to cause or threaten to cause material injury to the established domestic industries, or materially retards the establishment of domestic industries, the State may take anti-dumping measures to eliminate or mitigate such injury, threat of injury or retardation.

Article 42 Where the export of a product from other countries or regions to the market of a third country causes or threatens to cause material injury to the established domestic industries, or materially retards the establishment of domestic industries, the authority responsible for foreign trade under the State Council may, on the request of the domestic industries, carry out consultations with the government of that third country and require it to take appropriate measures.

Article 43 Where an imported product has directly or indirectly accepts any specific subsidiary granted by the exporting country or region and under such conditions as to cause or threaten to cause material injury to the established domestic industries, or materially retards the establishment of related domestic industries, the State may take countervailing measures to eliminate or mitigate such injury or threat of injury or retardation.

Article 44 Where a product is being imported in substantially increased quantities and under such conditions as to cause or threaten to cause serious injury to the domestic industry that produces like or directly competitive products, the State may take safeguard measures as necessary to eliminate or mitigate such injury or threat of injury and provide the industry concerned with necessary support.

Article 45 Where the increase of services provided to China by the service suppliers from other countries or regions causes or threatens to cause injury to the domestic industries that provide like or directly competitive services, the State may take remedies as necessary to eliminate or mitigate such injury or threat of injury and provide such industry with necessary support.

Article 46 Where the restriction imposed by a third country on the import of a certain product causes the increase in quantities of such product imported into the domestic market and under such conditions as to cause or threaten to cause injury to the established domestic industry, or materially retards the establishment of related domestic industries, the state may take remedies as necessary to restrict the import of the product concerned.

Article 47 Where any country or region that enters into or participate in the economic and trade treaties or agreements with the People`s Republic of China deprives the People`s Republic of China of or impairs her interests under such treaties or agreements, or hinders realization of the object of such treaties or agreements, the People`s Republic of China has the right to request the relevant country or region to take appropriate remedies and has the right to suspend or terminate its performance of relevant obligations in compliance with relevant treaties and agreements.

Article 48 The authority responsible for foreign trade under the State Council shall carry out bilateral or multilateral foreign trade consultations, negotiations and settle disputes in accordance with this Law and other relevant laws.

Article 49 The authority responsible for foreign trade under the State Council and the other relevant authorities under the State Council shall establish the pre-warning and emergency system for import and export of goods, import and export of technologies and international trade in services so as to cope with the unexpected and unusual situations in foreign trade for the purpose of safeguarding the economic security of the State.

Article 50 The State may take necessary anti-circumvention measures against the activities circumventing the foreign trade remedies provided under this Law. 
Chapter 9 Foreign Trade Promotion

Article 51 The State formulates foreign trade expansion strategies, establishes and improves the foreign trade promotion mechanism.

Article 52 The State shall establish and improve financial institutions for foreign trade and establish funds for foreign trade development and risk as the development of foreign trade requires.

Article 53 The State may take such measures as import and export credit, export credit insurance, export tax refund and other foreign trade promotion measures for the purpose of developing foreign trade.

Article 54 The State establishes the foreign trade public information service system, providing foreign trade dealers and the public with information services. 

Article 55 The State shall take measures to encourage foreign trade dealer to explore international market, and develop foreign trade by adopting various forms such as foreign investment, foreign contract of construction project and foreign labor cooperation.

Article 56 Foreign trade dealers may organize or participate in relevant associations or chambers of commerce for importers and exporters in accordance with the law. Relevant associations or chambers of commerce shall abide by relevant laws and regulations, provide in compliance with their articles of association their members with foreign trade related services in aspects of manufacturing, marketing, information and training, play a positive role in coordination and self-discipline, submit applications for relevant foreign trade remedies, safeguard the interests of their members and the industry, report to the relevant authorities the suggestions of their members with respect to foreign trade promotion, and actively promote foreign trade.

Article 57 The organization for the promotion of international trade in China shall, in accordance with its articles of association, engage in developing foreign trade relations, sponsoring exhibitions, providing information and advisory services and carry out other foreign trade promotion activities.

Article 58 The State shall support and facilitate the foreign trade carried out by small and medium-sized enterprises with small or middle scale.

Article 59 The State shall support and promote the development of foreign trade in national autonomous areas and economically under-developed areas.

Chapter 10 Legal Liabilities

Article 60 Anyone who imports or exports the goods subject to the state trading without authorization in violation of Article 11 of this Law may be imposed on a fine of not more than RMB 50,000 Yuan by the authority responsible for foreign trade under the State Council or other authorities under the State Council; if the circumstances are serious, the aforesaid authorities may refuse to accept the application submitted by the trade dealer in violation of laws for carrying out imports or exports of the goods subject to state trading within three years from the date the administrative sanction decision takes effect or may withdraw the granted authorization of import and export of goods subject to state trading.

Article 61 Anyone who imports and exports the goods of which import and export is prohibited, or imports and exports the goods of which import and export is restricted without authorization shall be disposed of and punished by the Customs in accordance with relevant laws and administrative regulations; if the case constitutes a crime, he shall be prosecuted for criminal liabilities in accordance with the law. Anyone who imports and exports the technologies of which import and export is prohibited, or imports and exports the technologies of which import and export is restricted without authorization shall be disposed of and punished in accordance with relevant laws and regulations; Where no laws or regulations are available to apply to such activities, the authority responsible for foreign trade under the State Council shall order him to make a rectification, confiscate the illegal proceeds and impose a fine from one to five times the amount of the illegal gains. If there are no illegal proceeds or the illegal proceeds are less than RMB 10,000 Yuan, a fine from RMB 10,000 Yuan to RMB 50,000 Yuan shall be imposed; if the case constitutes a crime, he shall be prosecuted for criminal liabilities in accordance with the law. The authority responsible for foreign trade under the State Council and other relevant authorities under the State Council may, from the date when the administrative sanction decision or criminal penalty judgment takes effect as provided in paragraphs 1 and 2 of this Article, refuse the applications for import and export quotas or licenses submitted by the law-breaker, or prohibit the law-breaker from engaging in the import and export of relevant goods and technologies within a period from one to three years.

Article 62 Anyone who engages in the international trade in services subject to prohibition or engages in international trade in services subject to restriction without authorization shall be disposed of and punished in accordance relevant laws and administrative regulations; Where no laws or regulations are available to apply to such activities, the authority responsible for foreign trade under the State Council shall order him to make a rectification, confiscate the illegal gains and impose a fine from one to five times the amount of the illegal proceeds. If there are no illegal proceeds or the illegal proceeds are less than RMB 10,000 Yuan, a fine from RMB 10,000 Yuan to RMB 50,000 Yuan shall be imposed; if the case constitutes a crime, he shall be prosecuted for criminal liabilities in accordance with the law. The authority responsible for foreign trade under the State Council may, from the date when the administrative sanction decision or criminal penalty judgment takes effect as provided in the previous paragraph of this Article, prohibit the law-breaker from engaging in relevant international trade in services within a period from one to three years.

Article 63 Anyone who acts in violation of the provision of Article 34 of this Law shall be punished in accordance with relevant laws and administrative regulations; if the case constitutes a crime, he shall be prosecuted for criminal liabilities in accordance with the law. The authority responsible for foreign trade under the State Council may, from the date when the administrative sanction decision or criminal penalty judgment takes effect as provided in the previous paragraph of this Article, prohibit the law-breaker from engaging in relevant foreign trade activities within a period from one to three years. 
Article 64 Where a foreign trade dealer is prohibited from engaging in the relevant foreign trade activities in accordance with Articles 61-63, within the period of prohibition the Customs authority shall not grant release to the relevant imported or exported goods of that foreign trade dealer in accordance with the decision made by the authority responsible for foreign trade under the State Council, and the foreign exchange administration or designated foreign exchange banks shall not process the procedures of selling and purchasing foreign exchange.

Article 65 Any staff member serving in the authority responsible for foreign trade in accordance with this Law who neglects his duty, engages in malpractices for personal gains or abuses his power, shall be prosecuted for criminal liabilities if the case constitutes a crime, or shall be subject to administrative sanctions if the case dose not constitute a crime in accordance with the law. Any staff member serving in the authority responsible for foreign trade in accordance with this Law, who extorts property from others with job convenience or illegally accepts others` property and seeks advantages for them in return shall be prosecuted for criminal liabilities if the case constitutes a crime, or shall be subject to administrative sanctions if the case does not constitute a crime in accordance with the law. 

Article 66 The parties in the foreign trade activities may apply for an administrative reconsideration or bring an administrative lawsuit before a people`s court in case of dissatisfaction with a specific administrative act by the authority responsible for foreign trade administration in accordance with this Law. 
Chapter 11 Supplementary Provisions

Article 67 Where other laws or administrative regulations provide otherwise in respect of foreign trade administration of military supplies, fissionable and fissionable materials or the materials form which they are derived and import and export administration of cultural products, the provisions thereof shall be observed.
 
Article 68 The State applies flexible measures, provides preferential conditions and conveniences to the trade between the towns on the frontier and those towns of neighboring countries on frontier as well as trade among border residents. Specific measures therefore shall be laid down by the State Council.

Article 69 This Law shall not apply to the separate customs territories of the People`s Republic of China.

Article 70 This Law shall come into force as of July 1, 2004.

(Adopted at the 7th Meeting of the Standing Committee of the Sixth National People’s Congress on September 20, 1984; revised at the 20th Meeting of the Standing Committee of the Ninth National People’s Congress on February 28, 2001 and promulgated by Order No.45 of the President of the People’s Republic of China on February 28, 2001)

Contents

Chapter I General Provisions

Chapter II Control over Drug Manufacturers

Chapter III Control over Drug Distributors

Chapter IV Control over Pharmaceuticals in Medical Institutions

Chapter V Control over Drugs

Chapter VI Control over Drug Packaging

Chapter VII Control over Drug Pricing and Advertising

Chapter VIII Inspection of Drugs

Chapter IX Legal Liabilities

Chapter X Supplementary Provisions

Chapter I General Provisions

Article 1 This Law is enacted to tighten drug control, to ensure drug quality and safety for human beings, to protect the health of people and their legitimate rights and interests in the use of drugs.

Article 2 All institutions and individuals engaged in research, production, distribution, use, or control over drugs in the People’s Republic of China shall abide by this Law.

Article 3 The State develops both modern and traditional medicines to give full play to their role in prevention and treatment of diseases and in maintenance of health.

The State protects the resources of natural crude drugs and encourages the cultivation of Chinese crude drugs.

Article 4 The State encourages research and development of new drugs and protects the legitimate rights and interests of citizens, legal bodies and other institutions engaged in this field of endeavor.

Article 5 The drug regulatory department under the State Council shall be responsible for drug regulation nationwide. The relevant departments under the State Council shall be responsible for the related regulatory work within the limits of their duties.

The drug regulatory departments of the people’s governments of provinces, autonomous regions, and municipalities directly under the Central Government shall be responsible for drug regulation in their administrative areas. The relevant departments of the said people’s governments shall be responsible for the related regulatory work within the limits of their duties.

The drug regulatory department under the State Council shall cooperate with the competent department for comprehensive economic administration under the State Council in implementing pharmaceutical development programs and policies formulated by the State for the pharmaceutical industry.

Article 6 The drug testing institutes established or designated by drug regulatory departments shall undertake the responsibility for drug testing required for conducting drug examination, granting approval and controlling drug quality in accordance with law.

Chapter II Control over Drug Manufacturers

Article 7 The establishment of a drug manufacturer shall be subject to approval by the local drug regulatory department of the people’s government of the province, autonomous region or municipality directly under the Central Government and be granted the Drug Manufacturing Certificate, and, with the certificate, the manufacturer shall be registered with the administrative department for industry and commerce. No one may manufacture drugs without the certificate.

The valid term and the scope of manufacturing shall be indicated in the Drug Manufacturing Certificate. For renewal of the certificate on expiration, reexamination is required.

When giving approval to the establishment of a new manufacturer, the drug regulatory department shall see to it that, apart from the requirements specified by the provisions in Article 8 of this Law that should be met, the pharmaceutical development programs and policies formulated by the State for the pharmaceutical industry are conformed to and prevent duplicate construction.

Article 8 A drug manufacturer to be established shall meet the following requirements:

(1)having legally qualified pharmaceutical and engineering professionals, and the necessary technical workers;

(2)having the premises, facilities, and hygienic environment required for drug manufacturing;

(3)having the institutions and personnel capable of quality control and testing for drugs to be produced and the necessary instruments and equipment; and

(4)having rules and regulations to ensure the quality of drugs.

Article 9 Drug manufacturers shall conduct production according to the Good Manufacturing Practice for Pharmaceutical Products (GMP) formulated by the drug regulatory department under the State Council on the basis of this Law. The drug regulatory department shall inspect a drug manufacturer as to its compliance with the GMP requirements and issue a certificate to the manufacturer passing the inspection.

The specific measures and schedule for implementing the GMP shall be formulated by the drug regulatory department under the State Council.

Article 10 With the exception of the processing of prepared slices of Chinese crude drugs, a drug shall be produced in conformity with the National Drug Standard and with the production processes approved by the drug regulatory department under the State Council, and the production records shall be complete and accurate. When drug manufacturers make any change in the production process that may affect the drug quality, they shall submit the matter for examination and approval to the original approval authority.

Prepared slices of Chinese crude drugs shall be processes in conformity with the national drug standards. Those not covered by the national drug standards shall be produced according to the processing procedures formulated by the drug regulatory department of the people’s government of the province, autonomous region, or municipality directly under the Central Government. The said processing procedures shall be submitted to the drug regulatory department under the State Council for the record.

Article 11 The drug substances and excipients for the manufacture of pharmaceutical products shall meet the requirements for medicinal use.

Article 12 Drug manufacturers shall perform quality test of the drugs produced; no drugs that do not meet the national drug standards or that are not produced according to the processing procedures for the prepared slices of Chinese crude drugs formulated by the drug regulatory department of the people’s government of the province, autonomous region, or municipality directly under the Central Government may be released.

Article 13 A drug manufacturer may accept contract production of drugs upon approval by the drug regulatory department under the State Council, or by the drug regulatory department of the people’s government of a province, autonomous region, or municipality directly under the Central Government authorized by the drug regulatory department under the State Council.

Chapter III Control over Drug Distributors

Article 14 The establishment of a drug wholesaler shall be subject to approval of the local drug regulatory department of the people’s government of the province, autonomous region or municipality directly under the Central Government and be granted the Drug Distribution Certificate; the establishment of a drug retailer shall be subject to approval and be granted the said certificate by the local drug regulatory department at or above the county level. With the certificate, the wholesaler and the retailer shall be registered with the administrative department for industry and commerce. No one may distribute drugs without the certificate.

The valid term and the scope of business shall be indicated in the Drug Distribution Certificate. For renewal of the certificate upon expiration, reexamination is required.

When giving approval to the establishment of a new distributor, the drug regulatory department shall see to it that, apart from the requirements specified by the provisions in Article 15 of this Law that should be met, the principles of appropriate location and convenient purchase of drugs by the people are adhered to.

Article 15 A drug distributor to be established shall meet the following requirements:

(1) having legally qualified pharmaceutical professionals;

(2)having the business operation premises, equipment, warehouses and hygienic environment required for drug distribution;

(3)having the units or personnel for quality control over the drugs to be distributed; and

(4) having rules and regulations to ensure the quality of the drugs to be distributed.

Article 16 Drug distributors shall conduct business according to the Good Supply Practice for Pharmaceutical Products (GSP) formulated by the drug regulatory department under the State Council on the basis of this Law. The drug regulatory department shall inspect a drug distributor as to its compliance with the GSP requirements, and issue a certificate to the distributor passing the inspection.

The specific measures and schedule for implementing the GSP shall be formulated by the drug regulatory department under the State Council.

Article 17 For purchasing drugs, drug distributors shall establish and apply a system for quality inspection and acceptance, and check the certificate of drug quality, labels and other marks; no drugs that do not meet the requirements may be purchased.

Article 18 Drug distributors shall keep authentic and complete records when purchasing and selling drugs. In the record shall be indicated the adopted name in China, dosage form, strength or size, batch number, date of expiry, manufacturer, purchase (or sale) unit, amount of the drug purchased (or sold), purchase or sale price, date of purchase (or sale), and other items specified by the drug regulatory department under the State Council.

Article 19 Drug distributors shall sell drugs properly and make correct description of usage, dosage and cautions; prescription for dispensing shall be checked, and no drugs listed in the prescription may be changed or substituted without authorization. They shall refuse to dispense incompatible or over-dose prescriptions; when necessary, they may do the dispensing only after corrections or re-signing is made by the prescribing physician.

Drug distributors shall indicate the origin of the Chinese crude drugs to be sold.

Article 20 A drug distributor shall establish and practise a system for drug storage, and take necessary measures to ensure drug quality, such as cold storage, protection against freeze and humidity and avoidance of insects and rodents.

An examination system shall be applied for placing drugs in and releasing them from storage.

Article 21 Chinese crude drugs may be sold at town and country fairs, except those otherwise specified by the State Council.

No drugs other than the Chinese crude drugs may be sold at town and country fairs, but drug retailers holding the Drug Distribution Certificate may, within the specified business scope, sell such drugs at stores they set up at the fairs. Specific measures shall be formulated by the State Council.

Chapter IV Control over Pharmaceuticals in Medical Institutions

Article 22 A medical institution shall be staffed with legally qualified pharmaceutical professionals. No one who is not a pharmaceutical professional may directly engage in technical work in pharmacy.

Article 23 To dispense pharmaceutical preparations, a medical institution shall be subject to examination and permission by the administrative department for health of the people’s government of the province, autonomous region or municipality directly under the Central Government, and upon approval by the drug regulatory department of the said people’s government, a Pharmaceutical Preparation Certificate for Medical Institution shall be issued to it by the said drug regulatory department. No one may dispense pharmaceutical preparations without such certificate.

The valid term shall be indicated in the certificate. For renewal of the certificate upon expiration, reexamination is required.

Article 24 To dispense pharmaceutical preparations, the medical institution shall possess the facilities, management system, testing instruments and hygienic conditions for ensuring their quality.

Article 25 The pharmaceutical preparations to be dispensed by the medical institution shall be ones that are to meet the clinic need of the institution but are not available on the market and shall be subject to approval in advance by the local drug regulatory department of the people’s government of the province, autonomous region or municipality directly under the Central Government. The quality of the dispensed pharmaceutical preparations shall be subject to test according to regulations; those passing the testing may be used within the institution on the basis of the physician’s prescription. In special cases, the pharmaceutical preparations dispensed by a medical institution may be used by other designated medical institutions, upon approval by the drug regulatory department under the State Council or by the drug regulatory department of the people’s government of a province, autonomous region or municipality directly under the Central Government.

No pharmaceutical preparations dispensed by medical institutions may be marketed.

Article 26 For purchasing drugs, medical institutions shall establish and practise a system for quality inspection and acceptance, and check the certificate of drug quality, labels and other marks; no drugs that do not meet the specified requirements may be purchased or used.

Article 27. Prescriptions dispensed by pharmacists of medical institutions shall be checked, and no drugs listed in the prescriptions may be changed or substituted without authorization. The pharmacists shall refuse to dispense incompatible or over-dose prescriptions; when necessary, they may do the dispensing only after corrections or re-signing is made by the prescribing physician.

Article 28 A medical institution shall establish and practise a system for drug storage, and take necessary measures to ensure drug quality, such as cold storage, protection against freeze and humidity and avoidance of insects and rodents.

Chapter V Control over Drugs

Article 29 The dossier on a new drug research and development including the manufacturing process, quality specifications, results of pharmacological and toxicological tests, and the related data and the samples shall, in accordance with the regulations of the drug regulatory department under the State Council, be truthfully submitted to the said department for approval, before clinical trial is conducted. Measures for verifying the qualifications of clinical study institutions for drugs shall be formulated jointly by the drug regulatory department and the administrative department for health under the State Council.

When a new drug has gone through the clinical trial and passed the evaluation, a New Drug Certificate shall be issued upon approval by the drug regulatory department under the State Council.

Article 30 The institutions for non-clinical safety evaluation and study and clinical study institutions shall respectively implement the Good Laboratory Practice for Non-Clinical Laboratory Studies (GLP) and Good Clinical Practice (GCP).

The GLP and GCP shall be formulated by the department designated by the State Council.

Article 31 Production of a new drug or a drug admitted by national drug standards shall be subject to approval by the drug regulatory department under the State Council, and a drug approval number shall be issued for it, with the exception of the Chinese crude drugs and the prepared slices of Chinese crude drugs which where no control by approval number is exercised. The list of the Chinese crude drugs and the prepared slices of the Chinese crude drugs to be controlled by the approval number shall be compiled by the drug regulatory department under the State Council, in conjunction with the administrative department for traditional Chinese medicines under the State Council.

A drug manufacturer may produce the drug only after an approval number is granted to it.

Article 32 Drugs shall meet the national drug standards. The provisions in the second paragraph of Article 10 of this Law shall be applicable to the prepared slices of Chinese crude drugs.

The Pharmacopoeia of the People’s Republic of China and the drug standards issued by the drug regulatory department under the State Council shall serve as the national drug standards.

The drug regulatory department under the State Council shall organize a pharmacopoeia commission, which shall be responsible for formulating and revising the national drug standards.

The drug testing institution affiliated to the drug regulatory department under the State Council is responsible for defining the national drug standard substance and reference substance.

Article 33 The drug regulatory department under the State Council shall organize experts in pharmaceutical, medical and other fields to evaluate new drugs and re-evaluate the drugs already approved for production.

Article 34 Drug manufacturers, drug distributors and medical institutions shall purchase drugs from pharmaceutical enterprises, which are qualified for production or distribution, with the exception of the Chinese crude drugs where no control by approval number is exercised.

Article 35 The State exercises special control over narcotic drugs, psychotropic substances, medicinal toxic drugs and radioactive pharmaceuticals. Measures for the control in this respect shall be formulated by the State Council.

Article 36 The State adopts a protection system for certain traditional Chinese medicines. The specific measures shall be formulated by the State Council.

Article 37 The State adopts different systems for the control over prescription and non-prescription drugs. The specific measures shall be formulated by the State Council.

Article 38 The import of drugs with uncertain therapeutic efficacy, serious adverse reaction, or other factors harmful to human health is prohibited.

Article 39 Examination of drugs to be imported shall be organized by the drug regulatory department under the State Council. A drug may be imported only upon approval granted after the fact that it conforms to the quality specifications and is safe and effective is affirmed through examination, and an import drug license shall be issued.

As to small amounts of drugs to be imported for urgent clinical needs of medical institutions or for personal medication, formalities for import shall be completed in accordance with the relevant regulations of the State.

Article 40 Drugs shall be imported via the ports where drug importation is permitted, and be registered by the drug importers with the local drug regulatory departments for the record. The customs shall release the drugs on the basis of the Drug Import Note issued by the said departments, and may not release those drugs for which no Drug Import Note is issued.

The drug regulatory department in the place where the port is located shall notify the drug testing institution to conduct sampling and testing of the drugs to be imported according to the regulations of the drug regulatory department under the State Council, and sampling fees shall be charged in accordance with the provisions of the second paragraph of Article 41 of this Law.

The ports where drugs may be imported shall be proposed by the drug regulatory department under the State Council together with the General Customs Administration and submitted to the State Council for approval.

Article 41 The drug regulatory department under the State Council shall designate drug testing institutions to test the following drugs before they are marketed or at the time they are imported; no drugs that fail to pass the testing may be marketed or imported:

(1)biological products specified by the drug regulatory department under the State Council;

(2)drugs to be marketed in China for the first time; and

(3) other drugs specified by the State Council.

The testing items to be charged for the drugs listed in the preceding paragraph and the rates shall be decided on and publicized by the financial department together with the competent pricing department under the State Council. Measures for collecting fees for testing shall be formulated and announced by the financial department together with the drug regulatory department under the State Council.

Article 42 The drug regulatory department under the State Council shall organize investigations of the drugs to the production or importation of which it has granted approval; it shall withdraw the approval number or Import Drug License issued to drugs with uncertain therapeutic efficacy, serious adverse reaction, or other factors harmful to human health.

No drugs whose Approval Numbers or Import Drug Licenses have been withdrawn may be produced, distributed or used. Those already produced or imported shall be destroyed or disposed of under the supervision of the local drug regulatory department.

Article 43 The State adopts a system for drug reserve.

When major disasters, epidemic situations or other emergencies occur in the country, the department specified by the State Council may transfer drugs from the enterprises to meet the urgent needs.

Article 44 The State Council shall have the power to restrict or prohibit the exportation of the drugs which are in short supply within the country.

Article 45 Anyone who wishes to import or export narcotic drugs and psychotropic substances that fall within the scope specified by the State shall produce the Import License or Export License issued by the drug regulatory department under the State Council.

Article 46 The newly-discovered crude drugs or cultivated crude drugs introduced from abroad may be marketed only after examination and approval by the drug regulatory department under the State Council.

Article 47 Measures for the control over the folk crude drugs customarily used in certain regions shall be formulated by the drug regulatory department together with the administrative department for traditional Chinese medicines under the State Council.

Article 48 Production (including dispensing, the same below) and distribution of counterfeit drugs are prohibited.

A drug is a counterfeit drug in any of the following cases:

(1) the ingredients in the drug are different from those specified by the national drug standards; or

(2) a non-drug substance is simulated as a drug or one drug is simulated as another.

A drug shall be treated as a counterfeit drug in any of the following cases:

(1)its use is prohibited by the regulations of the drug regulatory department under the State Council;

(2)it is produced or imported without approval, or marketed without being tested, as required by this Law;

(3)it is deteriorated;

(4)it is contaminated;

(5)it is produced by using drug substances without approval number as required by this Law; or

(6)the indications or functions indicated are beyond the specified scope.

Article 49 Production and distribution of substandard drugs are prohibited.

A drug with content not up to the national drug standards is a substandard drug.

A drug shall be treated as a substandard drug in any of the following cases:

(1) the date of expiry is not indicated or is altered;

(2) the batch number is not indicated or is altered;

(3) it is beyond the date of expiry;

(4) no approval is obtained for the immediate packaging material or container;

(5) colorants, preservatives, spices, flavorings or other excipients are added without authorization; or

(6) other cases where the drug standards are not conformed.

Article 50 A drug name listed in the national drug standards is an adopted name in China. Such an adopted name may not be used as a trademark.

Article 51 Employees of drug manufacturers, drug distributors and medical institutions who are in direct contact with drugs shall undergo health checkup annually. No one who suffers from infectious diseases or any other diseases which may cause contamination to drugs may engage in any work in direct contact with drugs.

Chapter VI Control over the Packaging of Drugs

Article 52 Immediate packaging materials and containers shall meet the requirements for medicinal use and the standards for ensuring human health and safety. They shall, along with the drugs, be subject to examination and approval by the drug regulatory department.

No drug manufacturers may use immediate packaging materials and containers for which no approval is obtained.

If the immediate packaging materials and containers are not up to standard, the drug regulatory department shall give orders stopping the use of such materials and containers.

Article 53 Drug packaging shall conform to drug quality requirements and be convenient for storage, transportation and medical use.

Chinese crude drugs shall be packed for transportation. On each package shall be indicated the name of the drug, the origin of production, the date of consignment and the name of the consignor, with a quality certification mark attached.

Article 54 A label shall be printed on or attached to the drug package together with an insert sheet, as required by regulations.

In the label or insert sheet shall be indicated the adopted name of the drug in China, its ingredients, strength, manufacturer, approval number, product batch number, production date, date of expiry, indications or functions, usage, dosage, contraindications, adverse drug reactions, and precautions.

Specified marks shall be printed in the label of narcotic drugs, psychotropic substances, toxic drugs for medical use, radioactive pharmaceuticals, drugs for topical use, and non-prescription drugs.

Chapter VII Control over Drug Pricing and Advertising

Article 55 For drugs the prices of which are fixed or guided by the government according to law, the competent pricing department of the government shall, on the pricing principle stipulated in the Pricing Law of the People’s Republic of China and on the basis of average social cost, supply and demand on the market, and public affordability, rationally fix and adjust the prices, in order to ensure that price is commensurate with quality, eliminate excessively high price, and protect the legitimate interests of users.

Drug manufacturers, drug distributors and medical institutions shall implement prices fixed or guided by the government. No one may raise prices in any manner without authorization.

Drug manufacturers shall provide the truthful manufacturing and operation cost to the competent pricing department of the government. No one may refuse to or falsely or deceptively report the cost.

Article 56 For drugs the prices of which are adjustable with the market according to law, drug manufacturers, drug distributors and medical institutions shall fix the prices on the principles of fairness, rationality，good faith and commensuration of price with quality, in order to provide the users with drugs of reasonable prices.

When fixing and indicating retailing prices, drug manufacturers, drug distributors and medical institutions shall abide by the regulations on control over drug prices formulated by the competent pricing department under the State Council. Usurious profits and fraud in pricing that harms the users’ interests are prohibited.

Article 57 Drug manufacturers, drug distributors and medical institutions shall provide the actual buying and selling prices and quantity of the drugs purchased and sold, and other related data to the competent pricing department of the government.

Article 58 Medical institutions shall provide the patients with a list of drug prices; and the medical institutions designated by medical insurance provider shall truthfully publicize the prices of drugs in common use in compliance with the specified measures, in order to ensure reasonable use of drugs. Specific measures shall be formulated by the administrative department for health under the State Council.

Article 59 Drug manufacturers, drug distributors and medical institutions are prohibited from offering or accepting, in private, off-the-book rake-offs or other benefits in the course of purchasing and selling drugs.

Drug manufacturers, drug distributors or their agents are prohibited from offering, under any pretences, money or things of value or other benefits to leading members, drug purchasers, physicians, or other related persons of the medical institutions where their drugs are used. Leading members of medical institutions, drug purchasers, physicians, or other related persons, on their part, are prohibited from accepting, under any pretences, money or things of value or other benefits offered by drug manufacturers and drug distributors or their agents.

Article 60 Drug advertisements shall be subject to approval by the drug regulatory department of the people’s government of the province, autonomous region or municipality directly under the Central Government where the enterprise is located, an approval number of drug advertisement shall be issued. No one may launch advertisements without the approval number.

Prescription drugs may be introduced in the medical or pharmaceutical professional publications jointly designated by the administrative department for health and the drug regulatory department under the State Council, but their advertisements may not be released by mass media or disseminated to the general public by other means.

Article 61 The content of drug advertisements shall be truthful and lawful, and the insert sheet approved by the drug regulatory department under the State Council shall be taken as the basis, and no false content may be contained in them.

No unscientific, categorical assertion or warranty of described function may be contained in drug advertisements; no names or images of government departments, medical or pharmaceutical research institutions, academic institutions, or experts, scholars, physicians and patients may be used as evidence for drug advertising.

Non-drug advertisements may not deal with drug promotion.

Article 62 Drug regulatory departments of the people’s governments of provinces, autonomous regions or municipalities directly under the Central Government shall inspect the drug advertisements approved by them, and inform the advertisement regulatory authority of those advertisements that violate this Law or the Advertisement Law of the People’s Republic of China, and put forward suggestions for their handling, and the said authority shall deal with such cases according to law.

Article 63 Where drug pricing and advertising are not governed by the provisions of this Law, the provisions of the Pricing Law of the People’s Republic of China and the Advertisement Law of the People’s Republic of China shall be applicable.

Chapter VIII Inspection of Drugs

Article 64 Drug regulatory departments shall have the power to supervise and inspect, according to law and administrative regulations, matters related to drug research and development, which it has given approval, to drug production and distribution, and to the use of drugs by medical institutions. No institutions or individuals concerned may resist the supervision and inspection or conceal any facts.

When people from drug regulatory departments conduct supervision and inspection, they shall show their identification documents, and they shall keep confidential the technical and business secrets of the persons under inspection which they come to know in the course of inspection.

Article 65 Drug regulatory departments may conduct selective testing of drug quality in light of the need of supervision and inspection. Sampling for selective testing shall be carried out according to relevant regulations, and no fees whatever may be charged for sampling or testing. The necessary expenses shall be listed and covered in accordance with the regulations of the State Council.

The drug regulatory department shall take administrative enforcement measures to seal or seize the drugs and related materials that are proved to be potentially harmful to human health and shall, within seven days, make an administrative decision on the matter in question. Where it is necessary to test such drugs, it shall, within 15 days from the date the testing report is issued, make the administrative decision.

Article 66 The drug regulatory department under the State Council and the drug regulatory departments of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall regularly announce the results of selective testing of drug quality. Where the announcement is improper, it shall be corrected within the scope in which the original announcement is made.

Article 67 Where the party has objection to the results of testing conducted by the drug testing institution, it may, within seven days from the date it receives the testing results, apply for re-testing to the said drug testing institution, or to such an institution established or designated by the drug regulatory department at the next higher level, and it may also directly apply to the drug testing institution established or designated by the drug regulatory department under the State Council. The drug testing institution that accepts the application shall, within the time limit specified by the drug regulatory department under the State Council, draw a conclusion from the re-test.

Article 68 Drug regulatory departments shall, in accordance with regulations and on the basis of the GMP and GSP, make follow-up inspections on the certified drug manufacturers and distributors.

Article 69 With regard to the drugs produced according to the provisions of this Law by drug manufacturers not located in the region, no local people’s government or drug regulatory department may, by means of demanding drug testing or examination, restrict or deny their access to the region.

Article 70 No drug regulatory department, or drug testing institution established by the department, or the institution specially engaged in drug testing designated by the department may be involved in production or distribution of drugs, or recommend drugs in its name or have the supervisor for drug production or sale named after it.

No staff members of drug regulatory departments, of drug testing institutions established by the departments or of institutions specially engaged in drug testing designated by the departments may be involved in drug production or distribution.

Article 71 The State applies a system of report on adverse drug reaction. Drug manufacturers, drug distributors and medical institutions shall make constant investigations into quality, therapeutic efficacy and reactions of the drugs produced, distributed and used by them. When serious adverse drug reactions possibly induced by drug use are discovered, they shall, without delay, report the matter to the local drug regulatory departments and administrative departments for health of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government. Specific measures shall be formulated by the drug regulatory department under the State Council together with the administrative department for health under the State Council.

With regard to drugs with confirmed serious adverse reactions, the drug regulatory department under the State Council or the drug regulatory department of the people’s government of a province, autonomous region or municipality directly under the Central Government may take urgent control measures to suspend their production, distribution and use, and it shall, within five days, arrange for assessment and, within 15 days from the date the conclusion is drawn, make an administrative decision on how to deal with the case.

Article 72 Drug testing sections of the drug manufacturers, drug distributors and medical institutions and their staff members shall accept technical instructions given by drug testing institutions set up by the local drug regulatory departments.

Chapter IX Legal Liabilities

Article 73 Any drug manufacturer or distributor that, without obtaining Drug Manufacturing Certificate, Drug Distribution Certificate or Pharmaceutical Preparation Certificate for Medical Institution, manufactures or distributes drugs shall be banned, the drugs illegally produced or sold and the illegal gains therefrom shall be confiscated, and they shall also be fined not less than two times but not more than five times the value of the drugs (including the drugs sold and not sold, the same below). If a crime is constituted, criminal liabilities shall be investigated in accordance with law.

Article 74 Where counterfeit drugs are produced or sold, the drugs illegally produced or sold and the illegal gains shall be confiscated, and a fine not less than two times but not more than five times the value of the said drugs shall be imposed. The approval documents, if any, shall be withdrawn and an order shall be given to suspend production or business operation for rectification. If the circumstances are serious, the Drug Manufacturing Certificate, Drug Distribution Certificate or Pharmaceutical Preparation Certificate for Medical Institution shall be revoked. If a crime is constituted, criminal liabilities shall be investigated in accordance with law.

Article 75 Where substandard drugs are produced or sold, the drugs illegally produced or sold and the illegal gains shall be confiscated, and a fine not less than, but not more than three times, the value of the drugs shall also be imposed. If the circumstances are serious, an order shall be given to suspend production or business operation for rectification, or the drug approval documents shall be withdrawn and the Drug Manufacturing Certificate, the Drug Distribution Certificate, or the Pharmaceutical Preparation Certificate for Medical Institution shall be revoked. If a crime is constituted, criminal liabilities shall be investigated in accordance with law.

Article 76 Where enterprises or other institutions are engaged in production or sale of counterfeit or substandard drugs, if the circumstances are serious, the persons directly in charge and the other persons directly responsible shall be prohibited from engaging in the drug production or distribution within 10 years.

The drug substances, excipients, packaging materials and manufacturing equipment specially used for producing counterfeit or substandard drugs by any producer shall be confiscated.

Article 77 Anyone who knows or should know that the drugs are counterfeit or substandard drugs provides conveniences such as transportation, keeping or storage of the drugs, all the earnings therefrom shall be confiscated, and a fine not less than 50 per cent of, but not more than 3 times, the amount of the illegal earnings shall also be imposed. If a crime is constituted, criminal liabilities shall be investigated in accordance with law.

Article 78 The quality testing results provided by the drug testing institution shall be contained in the penalty notification regarding counterfeit and substandard drugs, except in cases specified in the provisions of Subparagraphs (1), (2), (5) and (6) of the third paragraph of Article 48 and the third paragraph of Article 49 of this Law.

Article 79 Any drug manufacturer, drug distributor, institution for non-clinical safety study, or institution for drug clinical trial that does not implement the GMP, GSP, GLP or GCP according to regulations shall be given a disciplinary warning and shall be instructed to rectify within a time limit. If it fails to do so, it shall be instructed to suspend production or business operation or other work for rectification and shall also be fined not less than RMB 5,000 yuan but not more than 20,000 yuan. If the circumstances are serious, the Drug Manufacturing Certificate, Drug Distribution Certificate or the qualifications of the institution for drug clinical trial shall be annulled.

Article 80 Any drug manufacturer, drug distributor or medical institution that, in violation of the provisions of Article 34 of this Law, purchases drugs from the enterprises without Drug Manufacturing Certificate or Drug Distribution Certificate shall be instructed to rectify, the drugs illegally purchased shall be confiscated, and it shall be fined not less than two times but not more than five times the value of the drugs purchased; the illegal gains, if any, shall be confiscated. If the circumstances are serious, the Drug Manufacturing Certificate, Drug Distribution Certificate, or the license for the medical institution shall be revoked.

Article 81 If any enterprise that imports drugs to which import drug license has been granted fails to register, in accordance with the provisions of this Law, for the record with the drug regulatory department in the place where the port is located and drug importation is permitted, it shall be given a disciplinary warning and be instructed to rectify within a time limit; if it fails to do so, the import drug license shall be revoked.

Article 82 If anyone falsifies, alters, trades in, rents out or lends the license or drug approval documents, the illegal gains shall be confiscated and a fine not less than, but not more than three times, the amount of the illegal gains shall be imposed; if there are no illegal gains, a fine not less than 20,000 yuan but not more than 100,000 yuan shall be imposed. If the circumstances are serious, the Drug Manufacturing Certificate, Drug Distribution Certificate or Pharmaceutical Preparation Certificate for Medical Institution of the party that sells, rents out or lends it shall be revoked, or the drug approval documents shall be withdrawn. If a crime is constituted, criminal liabilities shall be investigated in accordance with law.

Article 83 If anyone, in violation of the provisions of this Law, obtains the Drug Manufacturing Certificate, Drug Distribution Certificate, Pharmaceutical Preparation Certificate for Medical Institutions, or drug approval documents by providing false certificates, documents and data, or samples, or by other fraudulent means, the said certificates shall be revoked and the documents shall be withdrawn, his applications for such certificates or approval documents shall be rejected within five years, and a fine not less than 10,000 yuan but not more than 30,000 yuan shall also be imposed.

Article 84 Any medical institution that sells its own dispensed pharmaceutical preparations on the market shall be instructed to rectify, the preparations for illegal sale shall be confiscated, and a fine not less than, but not more than three times, the value of the said preparations shall be imposed, and the illegal gains, if any, shall be confiscated.

Article 85 Any drug distributor that violates the provisions of Articles 18 and 19 of this Law shall be instructed to rectify and be given a disciplinary warning. If the circumstances are serious, the Drug Distribution Certificate shall be revoked.

Article 86 Drugs with labels or marks not in conformity with the provisions of Article 54 of this Law shall be treated as counterfeit or substandard drugs, and in addition, an instruction for rectification and a disciplinary warning shall be given. If the circumstances are serious, the approval documents for the drugs shall be withdrawn.

Article 87 Where a drug testing institution issues a false testing report, if it constitutes a crime, criminal liabilities shall be investigated in accordance with law; if it does not constitute a crime, the institution shall be instructed to rectify and be given a disciplinary warning, and also be fined not less than 30,000 yuan but not more than 50,000 yuan. The persons directly in charge and the other persons directly responsible shall, in accordance with law, be punished with demotion, dismissal, or expulsion and also be fined not more than 30,000 yuan. The illegal gains, if any, shall be confiscated. If the circumstances are serious, the institution shall be disqualified for testing. If the testing result issued by the drug testing institution is not true to fact and losses are thus occasioned, the institution shall bear corresponding liability of compensation for the losses.

Article 88 The administrative sanctions prescribed in Article 73 through Article 87 of this Law shall be determined by the drug regulatory departments at or above the county level according to the division of responsibility defined by the drug regulatory department under the State Council. Revocation of the Drug Manufacturing Certificate, Drug Distribution Certificate and Pharmaceutical Preparation Certificate for Medical Institution or withdrawal of the drug approval documents shall be determined by the department that issued the certificate or the approval documents.

Article 89 Any violation of the provisions of Article 55, 56 or 57 of this Law governing the control over drug pricing shall be punished pursuant to the provisions of the Pricing Law of the People’s Republic of China.

Article 90 Drug manufacturers, drug distributors or medical institutions that offer or accept, in private, the rake-offs or other benefits in the course of purchasing and selling drugs or drug manufacturers, drug distributors or their agents that offer money or things of value or other benefits to leading members, drug purchasers, physicians, or other related persons of the medical institutions where their drugs are used shall be fined not less than 10,000 yuan but not more than 200,000 yuan by the administrative department for industry and commerce, and the illegal gains, if any, shall be confiscated. If the circumstances are serious, the said department shall revoke the business licenses of the drug manufacturers or drug distributors and inform the drug regulatory department of the matter, which shall revoke their Drug Manufacturing Certificate, or Drug Distribution Certificate. If a crime is constituted, criminal liabilities shall be investigated in accordance with law.

Article 91 Any leading members, purchasers or other related persons of drug manufacturers or distributors that, in the course of drug purchasing or selling, accept money or things of value or other benefits offered by other manufacturers, distributors or their agents shall be given sanctions according to law, and the illegal gains shall be confiscated. If a crime is constituted, criminal liabilities shall be investigated in accordance with law.

Leading members, drug purchasers, physicians or other related persons of medical institutions who accept money or things of value or other benefits offered by drug manufacturers, drug distributors or their agents shall be given sanctions by the administrative department for health or the institutions to which they belong, and the illegal gains shall be confiscated. With regard to licensed physicians who seriously violate laws, the administrative department for health shall revoke their licenses for medical practice. If a crime is constituted, criminal liabilities shall be investigated in accordance with law.

Article 92 Any violation of the provisions of this Law related to the control over drug advertising shall be punished pursuant to the provisions of the Advertisement Law of the People’s Republic of China, the drug regulatory department that issues the advertisement approval number shall withdraw it and shall, within one year, reject any application for approval of advertising for the drug in question. If a crime is constituted, criminal liabilities shall be investigated in accordance with law.

Where a drug regulatory department does not perform its duty of drug advertisement examination in accordance with law and the advertisement approved for issuance contains false information or other content violating laws or administrative regulations, administrative sanctions shall, in accordance with law, be given to the persons directly in charge and the other persons directly responsible. If a crime is constituted, criminal liabilities shall be investigated in accordance with law.

Article 93 Drug manufacturers, drug distributors or medical institutions that violate the provisions of this Law and thus cause harm and losses to users of drugs shall bear the liability of compensation in accordance with law.

Article 94 Any drug regulatory department that violates the provisions of this Law and commits one of the following acts shall be instructed by the competent authority at the next higher level or the supervisory body to recall the certificates unlawfully issued or to withdraw the drug approval documents, and administrative sanctions shall be given to the persons directly in charge and the other persons directly responsible in accordance with law. If a crime is constituted, criminal liabilities shall be investigated in accordance with law:

(1)issuing the GMP or GSP certificates to the enterprises that do not comply with the corresponding requirements, failing to perform, in accordance with regulations, the duty of follow-up inspections in respect of the enterprises that have obtained the certificates, or failing to instruct, in accordance with law, the enterprises not complying with the requirements to rectify or withdraw their certificates;

(2)issuing the Drug Manufacturing Certificate, Drug Distribution Certificate or Pharmaceutical Preparation Certificate for Medical Institution to the enterprises or institutions not complying with the statutory requirements;

(3)issuing an Import Drug License to the drug not complying with the requirements for import; or

(4)granting approval for conducting a clinical trial, issuing a New Drug Certificate or a drug approval number, where the requirements for clinical trial or drug production are not fulfilled.

Article 95 If any drug regulatory department, drug testing institution established by the department or institution specially engaged in drug testing designated by the department is involved in drug production or distribution, it shall be instructed by the authority at the next higher level or the supervisory body to rectify, and the illegal gains, if any, shall be confiscated. If the circumstances are serious, administrative sanctions shall be given to the persons directly in charge and the other persons directly responsible in accordance with law.

Any staff member of the drug regulatory department, drug testing institution established by the department or institution specially engaged in drug testing designated by the department who is involved in drug production or distribution shall be given an administrative sanction in accordance with law.

Article 96 If any drug regulatory department or drug testing institution established or designated by the department, in violation of law, collects testing fees for supervision over drug testing shall be instructed by the relevant government department to return the fees, and administrative sanctions shall be given to the persons directly in charge and the other persons directly responsible in accordance with law. Any drug testing institution that collects testing fees in violation of law, if the circumstances are serious, shall be disqualified for drug testing.

Article 97 Drug regulatory departments shall, in accordance with law, perform their duties of supervision and inspection and shall see to it that the enterprises holding the Drug Manufacturing Certificate or Drug Distribution Certificate engage in drug production or drug distribution in accordance with the provisions of this Law.

Where enterprises holding the Drug Manufacturing Certificate or Drug Distribution Certificate produce or sell counterfeit or substandard drugs, the legal liabilities of such enterprises shall be investigated and, in addition, the persons directly in charge and the other persons directly responsible of the drug regulatory departments who neglect their duty or commit dereliction of duty shall be given administrative sanctions in accordance with law. If a crime is constituted, criminal liabilities shall be investigated in accordance with law.

Article 98 The drug regulatory department shall instruct the drug regulatory department at a lower level to put right, within a time limit, the administrative action taken in violation of this Law, and it shall have the power to alter or annul the action which is not put right within the time limit.

Article 99 Anyone responsible for drug regulation who abuses his power, engages in malpractice for personal gain or neglects his duty, if it constitutes a crime, shall be investigated for criminal liabilities in accordance with law; if it is not serious enough to constitute a crime, he shall be given administrative sanctions in accordance with law.

Article 100 Where a Drug Manufacturing Certificate or Drug Distribution Certificate is revoked in accordance with this Law, the drug regulatory department shall notify the administrative department for industry and commerce to alter or cancel the registration.

Article 101 The value of products mentioned in this Chapter shall be calculated on the basis of the marked prices of the drugs illegally produced or sold; where there is no marked price, the value shall be calculated according to the market prices of drugs of the same kind.

Chapter X Supplementary Provisions

Article 102 The terms used in this Law are defined as follows:

Drugs refer to articles which are used in the prevention, treatment and diagnosis of human diseases and intended for the regulation of the physiological functions of human beings, for which indications, usage and dosage are established, including Chinese crude drugs, prepared slices of Chinese crude drugs, traditional Chinese medicine preparations, chemical drug substances and their preparations, antibiotics, biochemical drugs, radioactive pharmaceuticals, serum, vaccines, blood products and diagnostic agents .

Excipients refer to the vehicles and additives used for drug production and prescription dispensing.

Drug manufacturers refer to enterprises exclusively or partly engaged in drug production.

Drug distributors refer to enterprises exclusively or partly engaged in drug distribution.

Article 103 Measures for control over the cultivation, collection and breeding of Chinese crude drugs shall be separately formulated by the State Council.

Article 104 The State exercises special control over the circulation of preventive biological products. Specific measures shall be formulated by the State Council.

Article 105 Specific measures for enforcement of this Law by the Chinese People’s Liberation Army shall be formulated by the State Council and the Central Military Commission in accordance with this Law.

Article 106 This Law shall go into effect on December 1, 2001.

Source: english.www.gov.cn

    Article 1 Any person who slaughters pigs,sheep,cattle and similar livestock shall be subject to the provisions of these Regulations and shall pay slaughter tax.

    Article 2 Every person who raises and slaughters livestock for his own consumption shall be exempt from the payment of slaughter tax；however,the portion sold,if any,shall be subject to tax.

    Article 3 Draught animals,transport animals,breeding stock,milking stock,pregnant animals and young livestock shall be protected. The various provincial （municipal）governments shall,of their own accord,formulate measures for the protection and the slaughter of animals consistent with the economic characteristics and the living habits of the people of the various localities.
    Article 4 Slaughter tax shall be imposed on the basis of a value derived from the actual weight of the animal after slaughter. The rate of tax shall be 10%. Where the tax cannot be imposed in a locality on the basis of actual weight,standard weights shall be specified for each kind of animal in respect of the value on which the tax shall be imposed.

    Article 5 The prices of meat in respect of the payment of slaughter tax shall be investigated and announced by the local tax authorities on a daily or periodical basis.

    Article 6 Slaughter tax shall be collected by the tax authorities. In localities which are relatively distant from the tax authorities,the people's government of the district or township （village） or cooperatives shall be entrusted with the collection of the tax. However,the contract method of tax collection shall not be adopted. A handling fee of 3% or less of the amount collected shall be paid to the above-mentioned tax collection agents.

    Article 7 Any person who slaughters livestock shall report to the tax authorities or the tax collection agents for examination of the slaughtered livestock and payment of tax. The sale of meat is permitted only following the issue of a certificate indicating the full payment of tax and the stamping of the meat after inspection. The sale of meat shall be strictly prohibited when considered harmful to the public health；in such circumstances no tax payment is required.
    Article 8 Slaughter houses shall gradually be established in the majority of the cities to protect the public health and facilitate the investigation and imposition of tax；measures for the administration of the slaughter houses shall be formulated by the local tax authorities together with the industry and commerce administration and the public health authorities and implemented upon examination and approval by the local people's government at the same administrative level.

    Article 9 Any person who engages exclusively in the slaughter business or in other businesses concurrently with the slaughter business shall,prior to the commencement of the slaughter business, register with the industry and commerce administration and the tax authorities；similar procedures to cancel such registration must be undertaken upon the termination of the business.
    Article 10 The following activities shall be deemed to be in violation of these Regulations and laws and the penalties shall be as follows：
 （1）Any person who fails to register in accordance with these Regulations shall be liable to a fine of 300000 Renminbi or less.
 （2）Any person who slaughters livestock and sells or transports such meat without authorization shall,in addition to the tax payable,be liable to a fine not exceeding three times the amount of tax due.
 （3）Cases involving persons who counterfeit seals used for certifying the payment of tax or who violate prohibitions against the slaughter of livestock shall, where the circumstances are serious,be submitted to the people's courts for disposal.

    Article 11 Every person shall report violations of the above-mentioned regulations and laws. Upon investigation and prosecution of the matter reported,the informant shall be granted a reward of an amount between 20% and 30% of the fine；on behalf of the informant, such matters shall be kept confidential.

    Article 12 The various provincial （municipal） tax authorities shall, in accordance with these Regulations,formulate measures governing the assessment and collection of slaughter tax and shall submit such measures to the people's government at the same level for examination,approval and implementation as well as to the General Taxation Bureau of the Ministry of Finance of the Central People's Government for the record.

    Article 13 The various provincial （municipal）governments shall issue decrees governing permission to slaughter livestock as well as exemptions from slaughter tax during religious festivals in respect of national minorities within regions under their jurisdiction.

    Article 14 These Regulations shall become effective as of the date of promulgation.

　Article 1. These Regulations are formulated for the purpose of strengthening the administration of advertisement, promoting the development of advertisement undertakings and utilizing advertisement as an effective medium to serve socialist construction.

　Article 2. These Regulations shall apply to any advertisements published, broadcast, installed or posted in the People's Republic of China through such media or in such forms as the press, broadcasting, television, films, street nameplates, shop windows, printed matters, neon lights, etc.

　Article 3. The content of an advertisement must be true to facts, sound, clear and easy to understand and must not cheat users and consumers in any way.

　Article 4. Monopoly and unfair competition shall be prohibited in advertising operations.
　Article 5. The administrative organs controlling advertisements shall be the State Administration for Industry and Commerce and local administrative departments for industry and commerce at various levels.

　Article 6. Units and self-employed industrialists or businessmen wishing to engage in advertising businesses (hereinafter referred to as advertising operators) shall submit applications to administrative departments for industry and commerce in accordance with these Regulations and the provisions of other relevant laws and regulations and go through, according to different circumstances, such formalities as examination, approval or registration:
　(1) For enterprises specializing in advertising business, Business Licences for Enterprises as Legal Persons shall be issued;
　(2) For institutions concurrently engaged in advertising business, Licences for Advertising Operation shall be issued;
　(3) For self-employed industrialists or businessmen capable of running advertising businesses, Business Licences shall be issued;
　(4) For enterprises concurrently engaged in advertising business, applications shall be filed with the relevant departments for change of business scope registration.

　Article 7. The content of an advertisement to the published, broadcast, installed or posted shall be kept within the advertiser's business scope or the scope permitted by the State.

　Article 8. An advertisement that contains any of the following contents may not be published, broadcast, installed or posted:
　(1) That violates the laws and regulations of the State;
　(2) That impairs the national dignity of the State;
　(3) That involves designs of the national flag, national emblem or national anthem or the music of the national anthem of the People's Republic of China;
　(4) That is reactionary, obscene, superstitious or absurd;
　(5) That is fraudulent;
　(6) That depreciates products of the same kind.

　Article 9. News media shall provide clear indications for the advertisement they publish or broadcast.
　News media may not publish or broadcast advertisements in the form of news reports nor collect fees for these reports. Journalists may not solicit advertisements in the name of news coverage.

　Article 10. It shall be forbidden to advertise cigarettes through broadcast, television, newspapers or periodicals.
　After approval by administrative departments for industry and commerce, it may be allowed to advertise famous wines and liquors of good quality which have won prizes at the national, ministerial or provincial level.

　Article 11. Due certificates shall be presented in applying for publishing, broadcasting, installing or posting advertisements in the following cases:
　(1) For the commodity advertisements concerning standards of quality, certificates issued by administrative departments in charge of standardization or by quality inspection agencies, authenticated to the qualified by metrological verification, above the provincial municipality level shall be presented;
　(2) For the advertisements which indicate commodities as prize-winners, certificates of award for the current session or year or for successive sessions or years shall be presented and classes of prizes and prize-awarding departments shall also be clearly indicated in the advertisements;
　(3) For the advertisements which indicate titles of high quality commodities, certificates of high-quality products issued-by the relevant departments shall be presented and clear indications shall also be made in the advertisements as to when and by which departments the titles were conferred on;
　(4) For the advertisements which indicate patent rights of commodities, patent licences shall be presented;
　(5) For the advertisements which indicate registered trademarks of commodities, certificates of trademark registration shall be presented;
　(6) For the advertisements of the products which require production permits, production permits shall be presented;
　(7) For the advertisements concerning culture, education and public health, certificates issued by the higher competent authorities shall be presented;
　(8) for the other advertisements which require due certification, papers issued by relevant government departments or agencies authorized by them shall be presented.

　Article 12. Advertising operators shall checked papers or certificates and examine the contents of advertisements while undertaking advertising business or acting as advertising agents.
　They may not publish, broadcast, install or post any advertisements which violate the provisions of these Regulations.

　Article 13. For the installation and posting of outdoor advertisements, local people's governments shall organize the administrative departments respectively in charge of industry and commerce, urban construction, environmental protection and public security in jointly drawing up the plans, which shall be implemented under the supervision of the administrative departments for industry and commerce.
　Advertisements may not be installed or posted in controlled areas near government organs or cultural relics under special protection, nor in areas where installation and posting of advertisements are prohibited by local people's governments.

　Article 14. Rates of charges for advertisements shall be fixed by advertising operators and reported to local administrative departments for industry and commerce and to those in charge of price control for the record.

　Article 15. Rates of fees to be charged for acting as agents in advertising business shall be fixed by state administrative departments for industry and commerce and those in charge of price control.
　Rates of fees to be charged for the use of places and buildings for outdoor advertisements shall be fixed through consultations by local administrative departments for industry and commerce with those in charge of price control and urban construction and reported to local people's governments for approval.

　Article 16. Advertising operators must, according to the relevant prescriptions of the State, set up bookkeeping records, pay taxes according to law and subject themselves to the control and inspection by the administrative departments respectively in charge of finance, auditing and industry and commerce.

　Article 17. In undertaking or acting as agents in advertising business, advertising operators shall sign with advertisers or those who have entrusted them with the business written contracts that shall stipulate explicitly each party's responsibilities.

　Article 18. Advertisers or advertising operators who have violated the provisions of these Regulations shall be given the following penalties by administrative departments for industry and commerce according to the seriousness of the cases:
　(1) Stopping advertising;
　(2) Making public corrections as ordered;
　(3) Circulating a notice of criticism;
　(4) Confiscation of the illegal gains;
　(5) Fines;
　(6) Suspending business for consolidation;
　(7) Revocation of the business licences or the licences for advertising operation.
　If the violations of the provisions of these Regulations are so serious as to constitute crimes, criminal responsibilities shall be investigated by judicial organs according to law.

　Article 19. If advertisers or advertising operators disagree with the penalties decided upon by administrative departments for industry and commerce, they may apply for a reconsideration to the next higher administrative departments for industry and commerce within 15 days after receiving penalty notices.
　If they still disagree with the decisions made after reconsideration, they may bring a suit in a people's court within 30 days after receiving the reconsideration decisions.

　Article 20. Advertisers or advertising operators who, in violation of the provisions of these Regulations, have caused losses on the part of their users and consumers or committed other acts of infringement shall bear the responsibility for compensation.
　With respect to claims for damages, the claimant may request the administrative departments for industry and commerce above the county level for handling.
　If the parties concerned disagree with the decisions made by administrative departments for industry and commerce, they may bring a suit in a people's court.
　The claimant may also directly bring a suit in a people's court.

　Article 21. These Regulations shall be interpreted by the State Administration for Industry and Commerce. The rules for implementation shall be formulated by the State Administration for Industry and Commerce.

　Article 22. These Regulations shall go into effect as of December 1, 1987.
　The Interim Regulations on Control of Advertisement promulgated by the State Council on February 6, 1982 shall be abrogated as of the same date.

Administrative Rules Governing Equity Investment in Chinese Financial Institutions by Overseas Financial Institutions

Order of China Banking Regulatory Commission
Following the approval of the State Council, the Administrative Rules Governing Equity Investment in Chinese Financial Institutions by Overseas Financial Institutions is hereby promulgated by China Banking Regulatory Commission.

Chairman: Liu Mingkang
December 8, 2003

Article 1 The Administrative Rules Governing Equity Investment in Chinese Financial Institutions by Overseas Financial Institutions (hereinafter referred to as the Rules) is formulated for the purpose of regulating activities concerning equity investment by overseas financial institutions in Chinese financial institutions, thereby optimizing the capital structure of Chinese financial institutions.

Article 2 The Rules is applicable to equity investment by overseas financial institutions in a legally incorporated Chinese financial institution. The term "overseas financial institutions" in the Rules shall denote international financial institutions and foreign financial institutions, whereby international financial institutions shall refer to the World Bank and its affiliated entities, other inter-governmental financial development institutions and international financial institutions recognized by China Banking Regulatory Commission (hereinafter referred to as the CBRC); foreign financial institutions shall refer to financial holding companies, commercial banks, securities firms, insurance companies, fund investment companies and other foreign financial institutions recognized by the CBRC that are incorporated in foreign countries.
The term "Chinese financial institutions" in the Rules shall denote Chinese commercial banks, urban and rural credit co-operatives, trust and investment companies, financial leasing companies, finance companies affiliated to enterprises as well as other Chinese financial institutions that are chartered by the CBRC and are legally incorporated within the territory of the People`s Republic of China.
The term "equity investment proportion" in the Rules is defined as capital contribution or equity shares of a foreign financial institution as a percentage of the aggregate paid-up capital or the total equity of a Chinese financial institution.

Article 3 The CBRC shall be in charge of regulation and supervision of activities concerning The Equity investment in Chinese financial institutions by overseas financial institutions.

Article 4 A prior approval from the CBRC is required to be obtained for equity investment in Chinese financial institutions by overseas financial institutions.

Article 5 The equity investment in Chinese financial institutions by overseas financial institutions shall be carried out in good faith and take long-term investment as their objective.

Article 6 The equity investment in Chinese financial institutions by overseas financial institutions shall be made in cash.

Article 7 An overseas financial institution engaged in equity investment in a Chinese financial institution shall meet the following requirements:

(1) Its total assets at the end of the previous year shall be in principle no less than $10 billion when investing in a Chinese commercial bank, no less than $1 billion when investing in a Chinese urban or rural credit co-operative and no less than $1 billion when investing in a Chinese non-bank financial institution;

(2) Its long-term credit rating for the last two consecutive years assigned by international rating agencies recognized by the CBRC shall be favorable;

(3) It should have remained profitable for the last two consecutive fiscal years;

(4) When an overseas financial institution is a commercial bank, its capital adequacy ratio shall be no lower than 8 percent; when it is a non-bank financial institution, the ratio of its total capital to its total risk-weighted assets shall be no less than 10 percent;

(5) It shall be under in-place sound internal controls;

(6) Its home country (or region) shall have in-place sound framework and systems for financial regulation and supervision;

(7) Its home country (or region) shall have a favorable economic environment; and

(8) It shall satisfy other prudential requirements formulated by the CBRC.

The CBRC shall be authorized to make adjustments to the qualification requirements of the overseas financial institution to reflect changes in the risk profile of the financial sector and supervisory needs.

Article 8 The equity investment proportion of a single overseas financial institution in a Chinese financial institution shall not exceed 20 percent.

Article 9 When the combined equity investment proportion of all overseas financial institutions in a non-listed Chinese financial institution is equal to or exceeds 25 percent, the non-listed Chinese financial institution shall be treated as a foreign-funded financial institution by the regulatory authority.
When the combined equity investment proportion of all overseas financial institutions in a listed Chinese financial institution is equal to or exceeds 25 percent, the listed Chinese financial institution shall still be treated as a Chinese financial institution by the regulatory authority.

Article 10 When filing an application for the equity investment in a Chinese financial institution by an overseas financial institution, the Chinese financial institution shall act as the applicant and submit the application to the CBRC for approval.

(1) When the applicant is a wholly state-owned commercial bank, a joint-stock commercial bank, or a non-bank financial institution supervised directly by the CBRC`s headquarters, the application shall be submitted directly to the CBRC`s headquarters for approval.

(2) When the applicant is a Chinese financial institution other than those provided in the previous paragraph, the application shall be submitted to the CBRC`s local office in the location of the applicant for approval, and, following the review and approval of the CBRC`s local office, to the CBRC`s headquarters for final approval.

Article 11 A Chinese financial institution applying for the equity investment by an overseas financial institution shall submit the following documents and information to the CBRC:

(1) an application letter for the equity investment;

(2) the corporate resolution adopted by the general meeting of shareholders or the board of directors of the Chinese financial institution to approve the proposed equity investment, or relevant approval document(s) issued by the applicant`s supervisory authority;

(3) the corporate resolution adopted by the general meeting of shareholders or the board of directors of the overseas financial institution to approve the proposed equity investment;

(4) a letter of intent signed by both parties;

(5) the annual reports or the audited financial statements, including the balance sheet and the income statement of the overseas financial institution for its last three consecutive years;

(6) a description of the funding sources, business performance and other related information of the overseas financial institution; and

(7) other documents and information required by the CBRC.

When the equity investor is a foreign financial institution, the Chinese financial institution shall also submit the rating report issued by an international rating agency recognized by the CBRC to provide the investor`s credit ratings for the past two consecutive years as well as a letter of consent from the investor`s supervisor in its home country.

Article 12 Upon reception of a complete set of application documents and information, the CBRC shall provide its decision of approval or denial within three months; if the application is denied, the applicant shall receive a written notice in which reasons for denial are provided.

Article 13 Upon reception of the approval from the CBRC, the overseas financial institution shall transfer the full amount of capital required for equity investment to the bank account of the Chinese financial institution within 60 working days, which shall be verified by an accounting firm recognized by the CBRC.
 
Article 14 When the equity investment by the overseas financial institutions leads to a change in the amount of registered capital or equity structure of the Chinese financial institution, the Chinese financial institution shall proceed to apply for the approval of the change in accordance with applicable procedures and regulations.

Article 15 When a Chinese financial institution is found to be in violation of the Rules when seeking to change its shareholder or its equity structure without approval, it shall face a penalty imposed by the CBRC in accordance with applicable regulations.

Article 16 The relevant provisions of the Rules shall be applicable to the increase of the equity holdings of an overseas financial institution in its capacity as an existing shareholder of the Chinese financial institution.

Article 17 The Rules shall be applicable to equity investment in a Chinese financial institution by financial institutions incorporated in Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan Region. When the State Council provides otherwise provisions, the provisions issued by the State Council shall prevail.

Article 18 The Rules is not applicable to the activities of the Qualified Foreign Institutional Investors (QFII) to purchase the marketable shares of the listed Chinese financial institutions.

Article 19 Activities concerning equity investment in an auto financing company by overseas financial institutions shall be governed by relevant provisions in the Administrative Rules Governing the Auto Financing Company.

Article 20 The CBRC shall be responsible for the interpretation of the Rules

Article 21 The Rules shall enter into effect on December 31, 2003 and shall prevail when there is any discrepancy between the Rules and any previously promulgated document.

Chapter 1 General Provisions

Article 1 This Law is formulated with a view to expanding the opening to the outside world, developing foreign trade, maintaining foreign trade order, protecting the legitimate rights and interests of foreign trade dealers and promoting the sound development of the socialist market economy.

Article 2 This Law applies to foreign trade and the protection of trade-related aspects of intellectual property rights. For the purposes of this Law, "foreign trade" refers to import and export of goods and technologies and the international trade in services.

Article 3 The authority responsible for foreign trade under the State Council is in charge of the administration of the foreign trade of the entire country pursuant to this Law.

Article 4 The State shall pursue a uniform foreign trade regime, encourage the development of foreign trade and maintain fair and free foreign trade order.

Article 5 The people`s Republic of China shall, on the principle of equality and mutual benefit, promote and develop trade relations with other countries and regions, enter into or participate in such regional economic trade agreements as customs union agreement, free trade agreement and participate in regional economic organizations.

Article 6 The People`s Republic of China shall, in accordance with the international treaties and agreements to which it is a contracting party or a participating party grant the other contracting parties or participating parties, or on the principle of reciprocity grant the other party most-favored-nation treatment or national treatment in the field of foreign trade.

Article 7 In the event that any country or region applies prohibitive, restrictive or other like measures on a discriminatory basis against the People`s Republic of China in respect of trade, the People`s Republic of China may, as the case may be, take counter-measures against the country or region in question.

Chapter 2 Foreign Trade Dealers

Article 8 For the purposes of this Law, "foreign trade dealers" refers to legal persons, other organizations or individuals that have fulfilled the industrial and commercial registration or other practicing procedures in accordance with laws and engage in foreign trade dealings in compliance with this Law and other relevant laws and administrative regulations.

Article 9 Foreign trade dealers engaged in import and export of goods or technologies shall register with the authority responsible for foreign trade under the State Council or its authorized bodies unless laws, regulations and the authority responsible for foreign trade under the State Council do not so require. The specific measures for registration shall be laid down by the authority responsible for foreign trade under the State Council. Where foreign trade dealers fail to register as required, the Customs authority shall not process the procedures of declaration, examination and release for the imported and exported goods.

Article 10 The international trade in services shall be carried out in compliance with the provisions of this Law and other relevant laws and administrative regulations. The units engaged in foreign contract of construction project or foreign labor cooperation shall be equipped with corresponding eligibility or qualification. The specific measures therefore shall be laid down by the State Council.

Article 11 The State may implement state trading on certain goods. The import and export of the goods subject to state trading shall be operated only by the authorized enterprises unless the state allows the import and export of certain quantities of the goods subject to state trading to be operated by the enterprises without authorization. The lists of the goods subject to state trading and the authorized enterprises shall be determined, adjusted and made public by the authority responsible for foreign trade under the State Council in conjunction with other relevant authorities under the State Council. In the event of importation of the goods subject to state trading without authorization in violation of paragraph 1 of this Article, the Customs shall not grant release.

Article 12 Foreign trade dealers may accept the authorization of others and conduct foreign trade as an agent within its scope of business.

Article 13 Foreign trade dealers shall, in accordance with the regulations laid down by the authority responsible for foreign trade under the State Council or other relevant authorities under the State Council in accordance with law, submit the documents and materials relevant to their foreign trade dealings to relevant authorities. The authorities concerned shall keep business secrets confidential for the providers thereof.

Chapter 3 Import and Export of Goods and Technologies

Article 14 The State permits free import and export of goods and technologies unless the laws or administrative regulations provide otherwise.

Article 15 The authority responsible for foreign trade under the State Council may, in accordance with the need to supervise import and export, implement automatic import and export licensing certain goods subject to free import and export and make public the list thereof. Where the consignee or the consigner of the imported or exported goods subject to automatic licensing submits the automatic licensing application before going through the Customs declaration procedures, the authority responsible for foreign trade under the State Council or its authorized authorities shall grant approval. In case of failure to accomplish automatic licensing procedures, the Customs shall not grant release. In the case of importing or exporting technologies subject to free import and export, the contracts thereof shall be registered with the authority responsible for foreign trade under the State Council or its authorized authorities.

Article 16 The State may restrict or prohibit the import or export of relevant goods and technologies for the following reasons that:
(1) the import or export needs to be restricted or prohibited in order to safeguard the state security, public interests or public morals,
(2) the import or export needs to be restricted or prohibited in order to protect the human health or security, the animals and plants life or health or the environment,
(3) the import or export needs to be restricted or prohibited in order to implement the measures relating to the importations and exportations of gold or silver,
(4) the export needs to be restricted or prohibited in the case of domestic shortage in supply or the effective protection of exhaustible natural resources,
(5) the export needs to be restricted in the case of the limited market capacity of the importing country or region,
(6) the export needs to be restricted in the case of the occurrence of serious confusion in the export operation order,
(7) the import needs to be restricted in order to establish or accelerate the establishment of a particular domestic industry,
(8) the restriction on the import of agricultural, animal husbandry or fishery products in any form is necessary,
(9) the import needs to be restricted in order to maintain the State`s international financial status and the balance of international payment,
(10) the import or export needs to be restricted or prohibited as laws and administrative regulations so provide, or
(11) the import or export needs to be restricted or prohibited as the international treaties or agreements to which the state is a contracting party or a participating party so require.

Article 17 The State may, in the case of the import or export of the goods and technologies relating to fissionable and fissionable materials or the materials form which they are derived as well as the import or export relating to arms, ammunition and implements for war, take any measures as necessary to safeguard the state security. The State may, in the time of war or for the protection of international peace and security, take any measures as necessary in respect of import or export of goods and technologies.

Article 18 The authority responsible for foreign trade under the State Council in conjunction with other relevant authorities under the State Council shall, in accordance with the provisions of Articles 16 and 17 in this Law, establish, adjust and publish the list of goods and technologies of which the import or export is subject to restrictions or prohibitions. The authority responsible for foreign trade under the State Council independently or in conjunction with other relevant authorities under the State Council may, with the approval from the State Council, decide, on a temporary basis, to impose restrictions or prohibitions on the import or export of goods and technologies not included in the list provided in the above paragraph within the meaning of Article 16 and Article 17 in this Law.

Article 19 Goods subject to import or export restriction shall be subject to quota and/or licensing control; technologies whose import or export is restricted shall be subject to licensing control. Import or export of any goods and technologies subject to quota and/or licensing control will be effected only with the approval of the authorities responsible for foreign trade under the State Council or the joint approval of the foregoing authorities and other relevant authorities under the State Council in compliance with the provisions of the State Council. Certain imported goods may be subject to tariff rate quota control.

Article 20 Quotas and tariff rate quotas of the imported and exported goods shall be distributed on the principles of transparency, equity, impartiality and efficiency by the authority responsible for foreign trade under the State Council or the relevant authorities under the State Council within their respective responsibilities. Specific measures for the distribution shall be laid down by the State Council.

Article 21 The state shall implement the commodity assessment system in a uniform manner and in accordance with the provisions of relevant laws and administrative regulations carry out certification, inspection or quarantine in respect of imported and exported commodities.

Article 22 The state shall implement origin management in respect of the imported and exported goods. Specific measures therefore shall be laid down by the State Council.

Article 23 Where the import or export of cultural relics, wildlife animals, plants and the products thereof are prohibited or restricted by other laws or administrative regulations, the provisions of relevant laws and regulations shall be observed.

Chapter 4 International Trade in Services

Article 24 In respect of international trade in services, the People`s Republic of China shall, in accordance with the commitments made in international treaties or agreements to which the People`s Republic of China is a contracting party or a participating party, grant the other contracting parties or participating parties market access and national treatment.

Article 25 The authority responsible for foreign trade under the State Council in conjunction with other relevant authorities under the State Council shall, pursuant to provisions of this Law and other laws and administrative regulations, administer the international trade in services.

Article 26 The State may impose restrictions and prohibitions on the international trade in services for the reasons that:
(1) restrictions or prohibitions are needed to safeguard the state security, public interests or public morals,
(2) restrictions or prohibitions are needed to protect the human health or security, the animals and plants life or health or the environment,
(3) restrictions are needed to establish or accelerate the establishment of a particular domestic service industry,
(4) restrictions are needed to maintain the balance of international payment of the state,
(5) restrictions or prohibitions are needed as laws and administrative regulations so provide, or
(6) restrictions or prohibitions are needed as the international treaties or agreements to which the state is a contracting party or a participating party so require.

Article 27 The State may, in the case of military-related international trade in services, as well as the international trade in services relating to fissionable and fissionable materials or the materials form which they are derived, take any measures as necessary to safeguard the state security. The state may, in the time of war or for the protection of international peace and security, take any measures as necessary in respect of international trade in services.

Article 28 The authority responsible for foreign trade under the State Council in conjunction with other relevant authorities under the State Council shall, in accordance with the provisions of Articles 26 and 27 in this Law and other relevant laws and administrative regulations, determine, adjust and publish the market access list of international trade in services.

Chapter 5 Protection of Trade-Related Aspects of Intellectual Property Rights

Article 29 The State shall, in accordance with laws and administrative regulations relevant to intellectual property rights, protect trade-related aspects of intellectual property rights. Where the imported goods infringe intellectual property rights and impair foreign trade order, the authority responsible for foreign trade under the State Council may take such measures as prohibiting the import of the relevant goods from being produced or sold by the infringe within a certain period.

Article 30 Where the intellectual property right owner is involved in any one of such practices as preventing the licensee form challenging the validity of the intellectual property right in the licensing contract, conducting coercive package licensing or incorporating exclusive grantback conditions in the licensing contract, which impairs the fair competition order of foreign trade, the authority responsible for foreign trade under the State Council may take measures as necessary to eliminate such impairment.

Article 31 If other countries or regions do not grant the legal persons, other organizations and individual from the People`s Republic of China national treatment in respect of the protection of intellectual property rights, or cannot provide adequate and effective protection of intellectual property rights for the goods, technologies or services from the People`s Republic of China, the authority responsible for foreign trade under the State Council may, in accordance with the provisions of this Law and other relevant laws and administrative regulations and the international treaties or agreements to which the People`s Republic of China is a contracting party or a participating party, take measures as necessary in respect of the trade with the country or region in question.

Chapter 6 Foreign Trade Order

Article 32 In foreign trade dealings, monopolistic behavior in violation of relevant provisions of anti-monopoly laws and administrative regulations is not allowed. In foreign trade dealings, any monopolistic behavior with the effect of eliminating market fair competition shall be disposed of in accordance with relevant provisions of anti-monopoly laws and administrative regulations. Where any activities in violation of laws set forth in the former paragraph occur with the effect of impairing foreign trade order, the authority responsible for foreign trade under the State Council may take measures as necessary to eliminate the impairment.

Article 33 In foreign trade activities, such unfair competition activities as selling the products at unreasonable low prices, colluding with each other in a tender, producing and releasing false advertisements and conducting commercial bribery and others like are not allowed. Any unfair competitive practice conducted in the foreign trade activities shall be disposed of in accordance with relevant laws and administrative regulations against unfair competition. Where any illegal activities as provided in the previous paragraph occur with the effect of impairing foreign trade order, the authority responsible for foreign trade under the State Council may take such measures as prohibiting the dealer from importing and exporting relevant goods and technologies to eliminate the impairment.

Article 34 The following practices are not allowed in foreign trade activities:
(1) forgery, distortion of origin marks of the imported and exported goods; forgery, distortion or trading of origin certificates of imported or exported goods, import and export licenses, certificates of import and export quota or any other certificate for import and export;
(2) defrauding the State of the refunded tax on exports;
(3) smuggling;
(4) evading certification, inspection and quarantine inspection as provided by laws and administrative regulations;
(5) other activities in violation of the provisions of laws and administrative regulations.

Article 35 In foreign trade activities, foreign trade dealers shall act in compliance with relevant provisions of foreign exchange administration of the state.

Article 36 The authority responsible for foreign trade under the State Council may give a notice to the public the activities in violation of this Law for impairing foreign trade order.

Chapter 7 Foreign Trade Investigation

Article 37 In order to maintain the foreign trade order, the authority responsible for foreign trade under the State Council may carry out investigations on the following matters in accordance with laws and administrative regulations at its disposal or in conjunction with other relevant administrations:
(1) the impact on the domestic industry as well as the competitive strengths of import and export of goods, import and export of technologies and international trade in services;
(2) trade barriers of relevant countries or regions;
(3) matters needed to be investigated on in order to determine whether such foreign trade remedies as anti-dumping, countervailing or safeguard measures shall be taken;
(4) activities that circumvent foreign trade remedies;
(5) matters in relation to state security in foreign trade;
(6) matters needed to be investigated on in order to enforce the provisions of Articles 7, 29(2),30,31,32(3) and 33(3).
(7) Other matters which may have impact on foreign trade order and need to be investigated on.

Article 38 The authority responsible for foreign trade shall give a notice in case of initiating foreign trade investigations. The investigation may take the form of questionnaires in writing, hearings, on-the-spot investigations, entrusted investigations and otherwise. The authority responsible for foreign trade under the State Council shall, on the basis of the findings, submit investigation reports or make determinations and give public notices.

Article 39 Relevant units and individuals shall provide the foreign trade investigation with cooperation and assistance. The authority in charge of foreign trade and other authorities under the State Council as well as their staff members shall have the obligation to keep the state secrets and business secrets known to them confidential during foreign trade investigations.

Chapter 8 Foreign Trade Remedies

Article 40 The State may take appropriate foreign trade remedies on the basis of the findings of foreign trade investigation.

Article 41 Where a product from other countries or regions is dumped into the domestic market at a price less than its normal value and under such conditions as to cause or threaten to cause material injury to the established domestic industries, or materially retards the establishment of domestic industries, the State may take anti-dumping measures to eliminate or mitigate such injury, threat of injury or retardation.

Article 42 Where the export of a product from other countries or regions to the market of a third country causes or threatens to cause material injury to the established domestic industries, or materially retards the establishment of domestic industries, the authority responsible for foreign trade under the State Council may, on the request of the domestic industries, carry out consultations with the government of that third country and require it to take appropriate measures.

Article 43 Where an imported product has directly or indirectly accepts any specific subsidiary granted by the exporting country or region and under such conditions as to cause or threaten to cause material injury to the established domestic industries, or materially retards the establishment of related domestic industries, the State may take countervailing measures to eliminate or mitigate such injury or threat of injury or retardation.

Article 44 Where a product is being imported in substantially increased quantities and under such conditions as to cause or threaten to cause serious injury to the domestic industry that produces like or directly competitive products, the State may take safeguard measures as necessary to eliminate or mitigate such injury or threat of injury and provide the industry concerned with necessary support.

Article 45 Where the increase of services provided to China by the service suppliers from other countries or regions causes or threatens to cause injury to the domestic industries that provide like or directly competitive services, the State may take remedies as necessary to eliminate or mitigate such injury or threat of injury and provide such industry with necessary support.

Article 46 Where the restriction imposed by a third country on the import of a certain product causes the increase in quantities of such product imported into the domestic market and under such conditions as to cause or threaten to cause injury to the established domestic industry, or materially retards the establishment of related domestic industries, the state may take remedies as necessary to restrict the import of the product concerned.

Article 47 Where any country or region that enters into or participate in the economic and trade treaties or agreements with the People`s Republic of China deprives the People`s Republic of China of or impairs her interests under such treaties or agreements, or hinders realization of the object of such treaties or agreements, the People`s Republic of China has the right to request the relevant country or region to take appropriate remedies and has the right to suspend or terminate its performance of relevant obligations in compliance with relevant treaties and agreements.

Article 48 The authority responsible for foreign trade under the State Council shall carry out bilateral or multilateral foreign trade consultations, negotiations and settle disputes in accordance with this Law and other relevant laws.

Article 49 The authority responsible for foreign trade under the State Council and the other relevant authorities under the State Council shall establish the pre-warning and emergency system for import and export of goods, import and export of technologies and international trade in services so as to cope with the unexpected and unusual situations in foreign trade for the purpose of safeguarding the economic security of the State.

Article 50 The State may take necessary anti-circumvention measures against the activities circumventing the foreign trade remedies provided under this Law.
Chapter 9 Foreign Trade Promotion

Article 51 The State formulates foreign trade expansion strategies, establishes and improves the foreign trade promotion mechanism.

Article 52 The State shall establish and improve financial institutions for foreign trade and establish funds for foreign trade development and risk as the development of foreign trade requires.

Article 53 The State may take such measures as import and export credit, export credit insurance, export tax refund and other foreign trade promotion measures for the purpose of developing foreign trade.

Article 54 The State establishes the foreign trade public information service system, providing foreign trade dealers and the public with information services.

Article 55 The State shall take measures to encourage foreign trade dealer to explore international market, and develop foreign trade by adopting various forms such as foreign investment, foreign contract of construction project and foreign labor cooperation.

Article 56 Foreign trade dealers may organize or participate in relevant associations or chambers of commerce for importers and exporters in accordance with the law. Relevant associations or chambers of commerce shall abide by relevant laws and regulations, provide in compliance with their articles of association their members with foreign trade related services in aspects of manufacturing, marketing, information and training, play a positive role in coordination and self-discipline, submit applications for relevant foreign trade remedies, safeguard the interests of their members and the industry, report to the relevant authorities the suggestions of their members with respect to foreign trade promotion, and actively promote foreign trade.

Article 57 The organization for the promotion of international trade in China shall, in accordance with its articles of association, engage in developing foreign trade relations, sponsoring exhibitions, providing information and advisory services and carry out other foreign trade promotion activities.

Article 58 The State shall support and facilitate the foreign trade carried out by small and medium-sized enterprises with small or middle scale.

Article 59 The State shall support and promote the development of foreign trade in national autonomous areas and economically under-developed areas.

Chapter 10 Legal Liabilities

Article 60 Anyone who imports or exports the goods subject to the state trading without authorization in violation of Article 11 of this Law may be imposed on a fine of not more than RMB 50,000 Yuan by the authority responsible for foreign trade under the State Council or other authorities under the State Council; if the circumstances are serious, the aforesaid authorities may refuse to accept the application submitted by the trade dealer in violation of laws for carrying out imports or exports of the goods subject to state trading within three years from the date the administrative sanction decision takes effect or may withdraw the granted authorization of import and export of goods subject to state trading.

Article 61 Anyone who imports and exports the goods of which import and export is prohibited, or imports and exports the goods of which import and export is restricted without authorization shall be disposed of and punished by the Customs in accordance with relevant laws and administrative regulations; if the case constitutes a crime, he shall be prosecuted for criminal liabilities in accordance with the law. Anyone who imports and exports the technologies of which import and export is prohibited, or imports and exports the technologies of which import and export is restricted without authorization shall be disposed of and punished in accordance with relevant laws and regulations; Where no laws or regulations are available to apply to such activities, the authority responsible for foreign trade under the State Council shall order him to make a rectification, confiscate the illegal proceeds and impose a fine from one to five times the amount of the illegal gains. If there are no illegal proceeds or the illegal proceeds are less than RMB 10,000 Yuan, a fine from RMB 10,000 Yuan to RMB 50,000 Yuan shall be imposed; if the case constitutes a crime, he shall be prosecuted for criminal liabilities in accordance with the law. The authority responsible for foreign trade under the State Council and other relevant authorities under the State Council may, from the date when the administrative sanction decision or criminal penalty judgment takes effect as provided in paragraphs 1 and 2 of this Article, refuse the applications for import and export quotas or licenses submitted by the law-breaker, or prohibit the law-breaker from engaging in the import and export of relevant goods and technologies within a period from one to three years.

Article 62 Anyone who engages in the international trade in services subject to prohibition or engages in international trade in services subject to restriction without authorization shall be disposed of and punished in accordance relevant laws and administrative regulations; Where no laws or regulations are available to apply to such activities, the authority responsible for foreign trade under the State Council shall order him to make a rectification, confiscate the illegal gains and impose a fine from one to five times the amount of the illegal proceeds. If there are no illegal proceeds or the illegal proceeds are less than RMB 10,000 Yuan, a fine from RMB 10,000 Yuan to RMB 50,000 Yuan shall be imposed; if the case constitutes a crime, he shall be prosecuted for criminal liabilities in accordance with the law. The authority responsible for foreign trade under the State Council may, from the date when the administrative sanction decision or criminal penalty judgment takes effect as provided in the previous paragraph of this Article, prohibit the law-breaker from engaging in relevant international trade in services within a period from one to three years.

Article 63 Anyone who acts in violation of the provision of Article 34 of this Law shall be punished in accordance with relevant laws and administrative regulations; if the case constitutes a crime, he shall be prosecuted for criminal liabilities in accordance with the law. The authority responsible for foreign trade under the State Council may, from the date when the administrative sanction decision or criminal penalty judgment takes effect as provided in the previous paragraph of this Article, prohibit the law-breaker from engaging in relevant foreign trade activities within a period from one to three years.
Article 64 Where a foreign trade dealer is prohibited from engaging in the relevant foreign trade activities in accordance with Articles 61-63, within the period of prohibition the Customs authority shall not grant release to the relevant imported or exported goods of that foreign trade dealer in accordance with the decision made by the authority responsible for foreign trade under the State Council, and the foreign exchange administration or designated foreign exchange banks shall not process the procedures of selling and purchasing foreign exchange.

Article 65 Any staff member serving in the authority responsible for foreign trade in accordance with this Law who neglects his duty, engages in malpractices for personal gains or abuses his power, shall be prosecuted for criminal liabilities if the case constitutes a crime, or shall be subject to administrative sanctions if the case dose not constitute a crime in accordance with the law. Any staff member serving in the authority responsible for foreign trade in accordance with this Law, who extorts property from others with job convenience or illegally accepts others` property and seeks advantages for them in return shall be prosecuted for criminal liabilities if the case constitutes a crime, or shall be subject to administrative sanctions if the case does not constitute a crime in accordance with the law.

Article 66 The parties in the foreign trade activities may apply for an administrative reconsideration or bring an administrative lawsuit before a people`s court in case of dissatisfaction with a specific administrative act by the authority responsible for foreign trade administration in accordance with this Law.
Chapter 11 Supplementary Provisions

Article 67 Where other laws or administrative regulations provide otherwise in respect of foreign trade administration of military supplies, fissionable and fissionable materials or the materials form which they are derived and import and export administration of cultural products, the provisions thereof shall be observed.
 
Article 68 The State applies flexible measures, provides preferential conditions and conveniences to the trade between the towns on the frontier and those towns of neighboring countries on frontier as well as trade among border residents. Specific measures therefore shall be laid down by the State Council.

Article 69 This Law shall not apply to the separate customs territories of the People`s Republic of China.

Article 70 This Law shall come into force as of July 1, 2004.

CHAPTER ONE GENERAL PROVISIONS

Article 1 The law is formulated in compliance with the Constitution with a view to strengthening the administration of land, safeguarding the socialist public ownership of land, protecting and developing land resources, ensuring a rational use of and giving a real protection to cultivated land to promote sustainable development of the socialist economy.

Article 2 The People's Republic of China resorts to a socialist public ownership i.e. an ownership by the whole people and ownerships by collectives, of land.
　In ownership by the whole people, the State Council is empowered to be on behalf of the State to administer the land owned by the State.
　No unit or individual is allowed to occupy, trade or illegally transfer land by other means. Land use right may be transferred by law.
　The State may requisition land owned by collectives according to law on public interests.
　The State introduces the system of compensated use of land owned by the State except the land has been allocated for use by the State according to law.

Article 3 To cherish and give a rational use to the land as well as to give a true protection to the cultivated land are seen as a basic principle of land use in the country. The people's governments at all levels should manage to make an overall plan for the use of land to strictly administer, protect and develop land resources and stop any illegal occupation of land.

Article 4 The State is to place a strict control on the usages of land.
　The State shall compile general plans to set usages of land including those of farm or construction use or unused. A strict control is to place on the turning of land for farm use to that for construction use to control the total amount of land for construction use and exercise a special protection on cultivated land.
　"Land for farm use" refers to land directly used for agricultural production, including cultivated land, wooded land, grassland, land for farmland water conservancy and water surfaces for breeding; "land for construction use" refers to land on which buildings and structures are put up, including land for urban and rural housing and public facilities, land for industrial and mining use, land for building communications and water conservancy facilities, land for tourism and land for building military installations. The term "land unused" refers to land other than that for agricultural and construction uses.
　Land should be used strictly in line with the purposes of land use defined in the general plan for the utilization of the land whether by units or individuals.

　Article 5 The land administrative department of the State Council shall be unifiedly responsible for the administration and supervision of land in the whole country.
　The setup and functions of land administrative departments of people's governments at and above the county level shall be decided by the people's governments of provinces, autonomous regions and municipalities under the direct jurisdiction of the central government (hereinafter referred to as "municipalities" for short) according to the relevant provisions of the State Council.

Article 6 Units or individuals shall all be obliged to abide by the laws and regulations concerning land administration and have the right to report or prosecute acts of violating land administration law and regulations.

Article 7 People's governments shall award units or individuals who have made outstanding achievements in protecting and developing land resources, rational utilization of land and in carrying out research in this regard.

CHAPTER TWO OWNERSHIP AND RIGHT OF USE OF LAND

Article 8 Land in urban districts shall be owned by the State.
　Land in the rural areas and suburban areas, except otherwise provided for by the State, shall be collectively owned by peasants including land for building houses, land and hills allowed to be retained by peasants.

Article 9 Land owned by the State and land collectively owned by peasants may be allocated to be used by units or individuals according to law. Units or individuals using land shall be responsible for the protection, management and a rational use of the land.
Article 10 In lands collectively owned by peasants those have been allocated to villagers for collective ownership according to law shall be operated and managed by village collective economic organizations or villagers' committee and those have allocated to two or more peasants collective economic organizations of a village, shall be operated and managed jointly by the collective economic organizations of the village or villagers' groups; and those have allocated to township (town) peasant collectives shall be operated and managed by the rural collective economic organizations of the township (town).

Article 11 People's government at the county level shall register and put on record lands collectively owned by peasants and issue certificates to certify the ownership concerned.
　People's government at the county level shall register and put on record the use of land collectively owned by peasants for non-agricultural construction and issue certificates to certify the right to use the land for construction purposes.
　People's government at the country level shall register and put on record uses of land owned by the State by units or individuals and issue certificates to certify the right of use. The State Council shall designate specific units to register and put on record State-owned land used by central government organs.
　Certifications of ownership or use right of wooded land and grassland and the uses or of water surface and beachland for breeding purpose shall be managed according to related provisions of the "Forest Law of the People's Republic of China", the "Grassland Law of the People's Republic of China" and the "Fisheries Law of the People's Republic of China".

Article 12 Changes of owners and usages of land, should go through the land alteration registration procedures.

Article 13 The ownership and use right of land registered according to law shall be protected by law and no unit or individual is eligible to infringe upon it.

Article 14 Land collectively owned by peasant shall be contracted out to members of the collective economic organizations for use in crop farming, forestry, animal husbandry and fisheries production under a term of 30 years. The contractees should sign a contract with the correspondents contractor to define each other's rights and obligations. Peasants who have contracted land for operation are obliged to use the land rationally according to the purposes agreed upon in the contracts. The right of operation of land contracted by peasants shall be protected by law.
　Within the validity term of a contract, the adjustment of land contracted by individual contractors should get the consent from over two-thirds majority vote of the villagers' congress or over two-thirds of villagers' representatives and then be submitted to land administrative departments of the township (town) people's government and county level people's government for approval.

Article 15 Land owned by the State may be contracted out to units or individuals for farming, forestry, animal husbandry and fisheries operations. Land collectively owned by peasants may be contracted out to units or individuals who are not belonging to the corresponding collectives for farming, forestry, animal husbandry and fisheries operations.
　The contractees and contractors should sign land use contracts to define each other's rights and obligations. The contraced term for operation is to be agreed upon in the land use contracts. Contractors for the land operation are obliged to protect and use the land rationally according to the usages specified in the contracts.
　Whereas a land collectively owned by peasant is contracted out for operation to ones not belonging to the corresponding collective organizations, a consent should be got from the over two-thirds majority vote of the villagers' congress or over two-thirds of the villagers' representatives with the resulted contract being submitted to the township (town) people's government for approval.

Article 16 Disputes arising from the ownership or use right of land shall be settled through consultation among parties concerned; should consultation fails, the disputes should be handled by people's governments.
　Disputes among units shall be handled by the people's government at and above the county level; disputes among individuals or between individuals and units shall be handled by township level people's government or people's governments at the county level or above.
　Whereas parties concerned refuse to accept the decisions by related people's government the dispute may be brought before the people's court within 30 days after the notification on the decision is received.
　No party shall change the status quo of the land before the disputes over ownership and use right are settled.

CHAPTER THREE GENERAL PLANS FOR THE UTILIZATION OF LAND

Article 17 People's governments at all levels shall manage to compile general plans for land uses in accordance with the national economic and social development program, requirements of national land consolidation and resources and environmental protection, land supply capacity and the requirements of various construction projects.
    The validity term of the general plans for land use shall be determined by the State Council.
Article 18 General plans for land use at a lower level shall be compiled according to the general plans for the utilization of land at the next higher level.
　The total amount of land for construction uses in the general plans of land use compiled by local people's governments at all levels shall not exceed the controlled targets set in the general plans for land use at the next higher level and the total amount of cultivated land should not be lower than the controlled targets set in the general plans for land use at the next higher level.
　In mapping out the general plans for land use, the provinces, autonomous regions and municipalities shall ensure than the total amount of cultivated land under their jurisdiction shall not be reduced.

Article 19 General plans for land use should be mapped out according to the following principles:
　1. Strictly protect the basic farmland and control the occupation of agricultural land for nonagricultural purposes.
　2. Raise the utilization rate of land.
　3. Make an overall plan and arrangements about the use of land in various kinds and various areas.
　4. Protect and improve the ecological environment to ensure a sustainable use of land.
　5. Keep a balance between cultivated land occupied and cultivated land developed and reclaimed.

Article 20 General plans for land use at the county level should define the areas and purposes of land use.
　General plans for the land use at the township (town) level should define the areas for the utilization of land and define the purpose of each tract of land according to the actual conditions for the use of land and make an announcement.

Article 21 General plans for land use shall be examined and approved level by level.
　General plans for land use of provinces, autonomous regions and municipalities shall be approved by the State Council.
　General plans for land of cities where the people's governments of province and autonomous regions and municipalities are seated and cities with a population of over one million and cities designated by the State Council shall be examined by the People's governments of related provinces and autonomous regions and municipalities and submit them to the State Council for approval.
　General plans for land use other than those provided for in the second and third paragraphs of this article shall be submitted for approval step by step to the people's governments of provinces, autonomous regions and municipalities. General plans for land uses of townships (towns) may be approved by the people's governments of cities or autonomous prefectures authorized by the provincial level people's governments.
　Once approved, the general plans for the land use shall be implemented strictly.

Article 22 The amount of land used for urban construction shall conform to the standards prescribed by the State so as to make full use of the existing land for construction purposes, not to occupy or occupy as less agricultural land as possible.
　Urban general planning and the planning of villages and market towns should be in line with the general plans for land use. The amount of land for construction use in the urban general planning and the planning of villages and market towns shall not exceed the amount of land used for construction purposes in cities, villages and market towns fixed in the general plans for the utilization of land.
　The land for construction purposes in cities, villages and market towns within the planned areas of cities, villages and market towns shall conform to the city planning and the planning of villages and market towns.

Article 23 The plans for the comprehensive control, development and utilization of rivers and lakes should be in accordance with the general plans for land use. Land uses within the areas of management and protection of rivers, lakes and reservoirs and flood storage and detention areas should be in line with plans for the comprehensive control, development and utilization of rivers and lakes and to the requirements of river channels, flood flows of rivers and lakes, flood storage and water transmission.

Article 24 People's governments at all levels shall strengthen the administration of plans for land use and exercise control of the aggregate land for construction purposes.
　The annual plan for the land use shall be compiled in line with the national economic and social development program, the State industrial policies, general plans for land and the actual situation about the land for construction uses and the land utilization. The examination and approval procedures for the compilation of annual land use plans shall be the same as that for the general plans for land use. Once approved, they shall be implemented strictly.

Article 25 The people's governments of provinces, autonomous regions and municipalities shall report the implementations of their annual plans for the use of land to the people's congresses at the same level as part of the implementation of their economic and social development plans.

Article 26 Revision of the general plans for land use shall be approved by the original organ of approval. Without approval, the usages of land defined in the general plans for the utilization of land shall not be changed.
　Whereas the purpose of land use defined in the general plans for the utilization of land needs to be changed due to the construction of large energy, communications, water conservancy and other infrastructure projects approved by the State Council, it shall be changed according to the document of approval issued by the State Council.
　If the purpose of land defined in the general plans for the utilization of land needs to be changed due to the construction of large energy, communications, water conservancy and other infrastructure projects approved by provinces, autonomous regions and municipalities, it shall be changed according to the document of approval issued by the provincial level people's governments if it falls into their terms of reference.

Article 27 The State fosters land survey system.
　The land administrative departments of the people's governments at and above the county level shall carry out land surveys together with related departments at the same level. Land owners or users should provide good cooperation and necessary data and materials required.

Article 28 Land administrative departments of the people's government at and above the county level shall, together with related departments at the same level, grade the land according to the results of the surveys, their planned uses and the unified standards formulated by the State.

Article 29 The State establishes the land statistical system.
　Land administrative departments of the people's governments at and above the county level shall, together with the statistical departments at the same level shall, formulate plans for statistical surveys and compile statistics about land according to law and regularly issue statistical data about the land. Land owners and users shall provide related materials and it is strictly forbidden to provide false and concealed materials or refuse to provide or delay the delivery of materials.
　The statistical materials about the land areas issued by land administrative departments and statistical departments serve as the basis for people's governments at all levels in compiling the general plans for the utilization of land.

Article 30 The State shall establish the national land management information system to conduct dynamic monitoring of the utilization of land.

CHAPTER FOUR PROTECTION OF CULTIVATED LAND

Article 31 The State protects the cultivated land and strictly controls the conversion of cultivated land into non-cultivated land.
　The State fosters the system of compensations to cultivated land to be occupied. In the cases of occupying cultivated land for non-agricultural construction, the units occupying the cultivated land should be responsible for reclaiming the same amount of land in the same quality as that occupied according to the principle of "reclaiming the same amount of land occupied. Whereas units which occupy the cultivated land are not available with conditions of reclaimation of land or the land reclaimed is not up to requirements, the units concerned should pay land reclamation fees prescribed by provinces, autonomous regions and municipalities for reclaiming land for cultivation the land reclaimed.
　The people's governments of all provinces, autonomous regions and municipalities shall formulate plans for reclamation of cultivated land, see to it that units which occupy cultivated land shall reclaim land as planned or organize the land reclamation according to plan and examine and accept the land reclaimed.

Article 32 The local people's governments at and above the county level may demand units which occupy cultivated land to use the topsoil of the land occupied for use in the newly reclaimed land, poor land or other cultivated land for soil amelioration.

Article 33 People's governments of all provinces, autonomous regions and municipalities shall strictly implement the general plans for the utilization of land and annual plan for the use of land, adopt measures to ensure not to reduce the total amount of cultivated land within their jurisdictions. Whereas reductions occur, the State Council shall order it to organize land reclamation within the prescribed time limit to make up for the reduced land in the same quantity and quality and the land administrative department of the State Council shall, together with agricultural administrative department, examine and accept it.
　Whereas individual provinces and municipalities find it difficult to reclaim enough land to make up for the land occupied due to scarce reserve resources, the total amount of land due to be reclaimed in their own regions may be reduced with the approval of the State Council but the rest of land for reclamation shall be made up for elsewhere.

Article 34 The State fosters the system of protecting the basic farmland. The following cultivated land shall be demarcated as basic farmland protection areas and subject to stringent control according to the general plans for the utilization of land:
　1. Cultivated land in the grain, cotton and oil-bearing crops production bases approved by the land administrative department of the State Council or the local people's governments at and above the county level;
　2. Cultivated land with good water conservancy and water and soil conservation facilities and medium-and low-yielding land where the execution of amelioration plan is in progress or medium-and low-yielding land that is transformable.
　3. Vegetable production bases;
　4. Experimental plots for research and teaching;
　5. Other cultivated land that should be designated as basic farmland protection areas as provided for by the State Council.
　Areas of basic farmland demarcated by various provinces, autonomous regions and municipalities should make up over 80% of the cultivated land within their administrative areas.
　Basic farmland protection areas shall be demarcated with township (town) as the unit and the protection of which shall be carried out by the land administrative departments of the county level people's governments together with agricultural administrative departments of the same level.
Article 35 People's governments at all levels shall adopt measures to maintain and protect irrigation and drainage facilities, ameliorate the soil to raise fertility and prevent desertification, salinization, water loss and soil erosion and pollution.

Article 36 Land shall be used sparingly for non-agricultural construction purposes. Whereas wasteland can be used, no cultivated land should be occupied; whereas poor land can be used, no good land should be occupied.
　It is forbidden to build kilns, graves or houses on cultivated land or to dig sand, collect stones, do mining and carry soil away from cultivated land.
　It is forbidden to occupy basic farmland to develop horticulture or dig ponds to breed fish.

Article 37 No unit or individual is allowed to let the land to lie idle or go wasted. Whereas a cultivated land which has been occupied for non- agricultural construction upon approval and can sure start construction within one year is found cultivable and yieldable, it should be cultivated by the unit or individual that originally cultivates the land or cultivated by units occupying the land. Whereas construction work fails to start for over one year, land idling fees shall be paid according to the provisions by various provinces, autonomous region and municipalities. Whereas construction work fails to start for two successive years, the people's governments at and above the county level shall revoke the use right of the land with the approval of the original organ of approval. Whereas the land used to be owned by peasant collectives, it should be turned over to original rural collective economic organizations for recultivation.
　Idle land that is lying within the urban plan areas and whose use right has been leased for real estate development shall be handled according to the "Urban Property Administration Law of the People's Republic of China".
　Whereas a unit or individual that has contracted for land operation has given up cultivation and allowed the land to go wasted for two successive years, the original constracting-out party shall terminate the contract and recover the land contracted out for cultivation.

Article 38 The State encourages development of unused land by units or individuals according to the general plans for the utilization of land and under the precondition of protecting and improving the ecological environment, preventing water loss, soil erosion and desertification. Land suitable for agricultural use should have the priority of developing into land for agricultural use.
　The State protects the legitimate rights and interests of developers.

Article 39 Reclaiming unused land shall go through scientific argumentation and evaluation and can proceed according to law after approval within the reclaimable areas demarcated in the general plans for the utilization of land.
　It is forbidden to destroy forests and grassland in the process of land reclamation. It is forbidden to carry out landfill of lakes and occupy beachland of rivers.
　Whereas reclaimation of a land or rounding up of a land for reclaimation would give harm to ecological environment the land concerned should be restored as forerts, pasture fields or lakes step by step and in a planned manner according to the general plans for the utilization of land.

Article 40 For developing waste hills, land or beachland whose use rights have not been ascertained for crop cultivation, forestry, animal husbandry or fisheries, the use rights may be given to developers or individuals for long-term use with the approval of the people's government at and above the county level according to law.

Article 41 The State encourages land consolidation. People's governments of counties and townships (towns) shall organize rural collective economic organizations to carry out comprehensive consolidation of fields, water surface, roads, woods and villages according to the general plans for the utilization of land to raise the quality of cultivated land and increase areas for effective cultivation and improve the agricultural production conditions and ecological environment.
　Local people's governments at all levels shall adopt measures to ameliorate medium-and low-yielding land and consolidate idle and scattered and abandoned land.

　Article 42 Whereas land is damaged due to digging, cave-in and occupation, the units or individuals occupying the land should be responsible for reclamation according to the relevant provisions of the State; for lack of ability of reclamation or for failure to meet the required reclamation, land reclamation fees shall be paid, for use in land reclamation. Land reclaimed shall be first used for agricultural purposes.

CHAPTER FIVE LAND FOR CONSTRUCTION PURPOSES

Article 43 Any unit or individual that need land for construction purposes should apply for the use of land owned by the State according to law, except land owned by peasant collectives used by collective economic organizations for building township enterprises or building houses for villagers or land owned by peasant collectives approved according to law for use in building public facilities or public welfare facilities of townships (towns).
　The term "apply for the use of land owned by the State according to law" used in the preceding paragraph refers to land owned by the State and also land originally owned by peasant collectives but having been requistitioned by the State.

Article 44 Whereas occupation of land for construction purposes involves the conversion of agricultural land into land for construction purposes, the examination and approval procedures in this regard shall be required.
　For projects of roads, pipelines and large infrastructure approved by the people's governments of provinces, autonomous regions and municipalities, land for construction has to be approved by the State Council whereas conversion of agricultural land is involved.
　Whereas agricultural land is converted into construction purposes as part of the efforts to implement the general plans for the utilization of land within the amount of land used for construction purposes as defined in the general plans for cities, villages and market towns, it shall be approved batch by batch according to the annual plan for the use of land by the organs that approved the original general plans for the utilization of land. The specific projects within the scope of land approved for conversion shall be approved by the people's governments of cities or counties.
　Land to be occupied for construction purposes other than those provided for in the second and third paragraphs of this article shall be approved by the people's governments of provinces, autonomous region and municipalities whereas conversion of agricultural land into construction land is involved.

Article 45 The requisition of the following land shall be approved by the State Council:
　1. Basic farmland;
　2. Land exceeding 35 hectares outside the basic farmland;
　3. Other land exceeding 70 hectares.
　Requisition of land other than prescribed in the preceding paragraph shall be approved by the people's governments of provinces, autonomous regions and municipalities and submitted to the State Council for the record.
　Requisition of agricultural land should first of all go through the examination and approval procedure for converting agricultural land into land for construction purposes according to the provisions of Article 44 of this law. Whereas conversion of land is approved by the State Council, the land requisition examination and approval procedures should be completed concurrently with the procedures for converting agricultural land to construction uses and no separate procedures are required. Whereas the conversion of land is approved by people's governments of provinces, autonomous regions and municipalities within their terms of reference, land requisition examination and approval procedures should be completed at the same time and no separate procedures are required. Whereas the terms of reference has been exceeded, separate land requisition examination and approval procedures should be completed according to the provisions of the first paragraph of this article.

Article 46 For requisition of land by the State the local people's governments at and above the county level shall make an announcement and organize the implementation after the approval according to the legal procedures.
　Owners or users of the land requisitioned should, within the time limit specified in the announcement, go through the compensation registration for requisitioned land with the land administrative departments of the local people's governments on the strength of the land certificate.

Article 47 In requisitioning land, compensation should be made according to the original purposes of the land requisitioned.
　Compensation fees for land requisitioned include land compensation fees, resettlement fees and compensation for attachments to or green crops on the land. The land compensation fees shall be 6-10 times the average output value of the three years preceding the requisition of the cultivated land. The resettlement fee shall be calculated according to the number of agricultural population to be resettled. The number of agricultural population to be resettled shall be calculated by dividing the amount of cultivated land requisitioned by the per capital land occupied of the unit whose land is requisitioned. The resettlement fees for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the requisition of the cultivated land. But the maximum resettlement fee per hectare of land requisitioned shall not exceed 15 times of the average annual output value of the three years prior to the requisition.
　The standards for land compensation and resettlement fees for land requisitioned shall be determined by various provinces, autonomous regions and municipalities in reference to the land compensation fees and resettlement fees for cultivated land requisitioned.
　The standards for compensating for ground attachments and green crops on the land requisitioned shall be determined by various provinces, autonomous regions and municipalities.
　In requisitioning vegetable fields in suburban areas, the units using the land should pay new vegetable field development and construction fund.
　Whereas the land compensation fees and resettlement fees paid according to the provisions of the second paragraph of this article are not enough to maintain the original level of living, the resettlement fees may be increased with the approval of the people's governments of provinces, autonomous regions and municipalities. But the combined total of land compensation fees and resettlement fees shall not exceed 30 times the average output value of the three years prior to the requisition.
　In special circumstances, the State Council may raise the standards for land compensation and resettlement fees for land requisitioned according to the social and economic development level.

Article 48 After the plan for land compensation and resettlement fees is finalized, related local people's governments shall make an announcement and hear the opinions of the rural collective economic organizations and peasants whose land has been requisitioned.

Article 49 Rural collective economic organizations shall make public to its members the receipts and expenditures of the land compensation fees for land requisitioned and accept their supervision.
　It is forbidden to embezzle or divert the land compensation fees and other related expenses.
Article 50 Local people's governments at all levels shall support rural collective economic organizations and peasants in their efforts toward development and operations or in starting up enterprises.
 
Article 51 The standards for land compensation and method of resettlement for land requisitioned for building large and medium-sized water conservancy projects and hydroelectric power projects shall be determined separately by the State Council.

Article 52 In the process of the feasibility study for construction projects, land administrative departments may examine the related matters concerning the land for construction purposes and put forward their proposals according to the general plans for the utilization of land, the annual plan for the use of land and standards for land used for construction purposes.

Article 53 Whereas a construction project approved needs land owned by the State for construction purposes, the construction unit should file an application with land administrative department of the people's government at and above the county level with the power of approval on the strength of related documents required by law and administrative decrees. The land administrative department shall examine the application and submit it to the people's government at the same level for approval.

Article 54 A paid leasing should be go through in use of land owned by the State by a construction unit. But the following land may be obtained through government allocation with the approval of the people's governments at and above the county level according to law:
　1. Land for use by government organs and for military use;
　2. Land for building urban infrastructure and for public welfare undertakings;
　3. Land for building energy, communications and water conservancy and other infrastructure projects supported by the State.
　4. Other land as provided for by the law and administrative decrees.

　Article 55 Construction units that have obtained State-owned land by paid leasing can use the land only after paying the land use right leasing fees and other fees and expenses according to the standards and ways prescribed by the State Council.
　Starting from the date when this law comes into effect, 30% of the land compensation fees for new construction land shall be handed over to the central finance, with the rest 70% to be retained by related local people's governments, for the development of land for cultivation.

　Article 56 In using State-owned land, construction units should use the land according to the provisions of the contract for compensated use of leased land use right or according to the provisions of the documents of approval concerning the allocation of land use right. The change of the land to construction purposes should get the consent from the land administrative departments of the related people's governments and be submitted to the people's governments that originally give the approval for the use of land. In changing the purpose of land within the urban planned areas, the consent should be obtained form the related urban planning administrative departments before submission for approval.

　Article 57 In the case of temporary using State-owned land or land owned by peasant collectives by construction projects or geological survey teams, approval should be obtained from the land administrative departments of local people's governments at and above the county level. Whereas the land to be temporarily used is within the urban planned areas, the consent of the urban planning departments should be obtained before being submitted for approval. Land users should sign contracts for temporary use of land with related land administrative departments or rural collective organizations or villagers committees depending on the ownership of the land and pay land compensation fees for the temporary use of the land according to the standard specified in the contracts.
　Users who use the land temporarily should use the land according to the purposes agreed upon in the contract for the temporary use of land and should not build permanent structures.
The term for the temporary use of land shall not usually exceed two years.

　Article 58 In one of the following cases, the land administrative departments of related people's governments shall recover the land use right of State-owned land with the approval of the people's governments that originally gives the approval or the people's governments with the power of approval:
　1. Use land for the sake of public interests;
　2. Use land for adjustment in re-building old city districts in order to implement urban construction plans;
　3. When the term for the land use right expires according to what is agreed upon in the contract for compensated use of land, the land user has failed to apply for extension or failed to get approval for extension;
　4. The use of land originally allocated has been stopped due to cancellation or removal of units;
　5. Roads, railways, airports and mining sites that have been approved to be abandoned.
　Proper compensation should be given to land use right users whereas the use right of State-owned land is recovered according to the provisions of 1 and 2 of the preceding paragraph.

　Article 59 Construction of township enterprises, public facilities and public welfare undertakings of townships (towns) and rural villagers' houses should be rationally laid out according to the village or market town plans according to a comprehensive development plan, with good supporting facilities. Land used for construction purposes shall conform to the general plans for the utilization of land of townships (towns) and their annual plan for the use of land and the examination and approval procedures should be completed according to the provisions of Article 44, Article 60, Article 61 and Article 62 of this law.

　Article 60 In using the land for construction purposes defined in the general plan for the utilization of land of townships (towns) to start up enterprises or joint ventures together with other units or individuals by way of using land use right as shares, the rural collective economic organization shall file an application with land administrative departments of the local people's governments at and above the county level on the strength of documents of approval. The applications shall be approved by the local people's governments at and above the country according to the terms of reference provided for by various provinces, autonomous regions and municipalities whereas the use of land involving the occupation of agricultural land, the examination and approval procedures provided for in Article 44 of this law shall be followed.
　Land for construction purposes in starting enterprises provided for in the preceding paragraph shall be put under strict control. Provinces, autonomous regions and municipalities shall determine the standards for land use according to different trades and scale of operation of township enterprises.

　Article 61 In using land for building public facilities and public welfare facilities, townships (towns) shall file an application with land administrative departments of local people's governments at and above the county level after being examined by the township (town) people's governments at and the application shall be approved by the local people's governments at and above the county level according to the term of reference provided for by provinces, autonomous regions and municipalities. Where occupation of agricultural land is involved, the examination and approval procedures provided for in Article 44 of this law are required.
 
　Article 62 One rural household can own one piece of land for building house, with the area not exceeding the standards provided for by provinces, autonomous regions and municipalities.
　Construction of rural houses should conform to the general plans for the utilization of land of townships (towns) and the original land occupied by houses and open spaces of villages should be used as much as possible for building houses.
　The use of land for building houses should be examined by the township (town) people's governments and approved by the county people's governments. Whereas occupation of agricultural land is involved the examination and approval procedure provided for in Article 44 of this law is required.
　The application for housing land after selling or leasing houses shall not be approved.

　Article 63 The land use right of peasant collectives shall not be leased, transferred or rented for non-agricultural construction, except in the case of legal transfer of the land that conforms to the general plan for the utilization of land and legally obtained by enterprises due to bankruptcy or acquisition.

　Article 64 Buildings or structures put up before the general plan for the utilization of land and unconformable to the general plans are not allowed to be rebuilt or expanded.

　Article 65 In one of the following cases, the rural collective economic organizations may recover the land use right with the approval of the people's government that gives the approval for the use of land:
　1. Land needed for building public facilitie, , , , , , , , , s and public welfare undertakings of townships (towns) and villages;
　2. Land not used according to the purposes approved;
　3. Land not used any more due to cancellation or removal of the original units.
　Proper compensation shall be given to land users in the case of recovering the land owned by peasant collectives provided for in item 1 of the preceding paragraph.

CHAPTER SIX SUPERVISION AND EXAMINATION

　Article 66 Land administrative departments of the people's governments at and above the county level shall exercise supervision and examination on violations to the land administrative law and administrative decrees.
　Supervising personnel in such a regard should be well acknowledged with the land administrative law and decrees, loyal to their duties and justice in enforcement of the law.

　Article 67 In performing their supervising and examination duties, the land administrative departments of the people's governments at and above the county level have the right to adopt the following measures:
　1. Demand for documents and materials concerning land-use rights from units or individuals for examination, review or copying.
　2. Demand explanations from units or individuals concerned in regard to land-use rights;
　3. Enter into land illegally occupied by units or individuals under examination to carry out on-the-spot surveys, and
　4. Command units or individuals that have occupied land illegally to stop their acts of violating the land administrative law and decrees.

　Article 68 In performing their duties, whereas there is the need to carry out on-the-spot survey or demand units or individuals concerned to present documents and materials or explanations, supervising personnel should present certificates of land supervision and examination.

　Article 69 Units or individuals concerned should provide active support and cooperation to land administrative departments of the people's governments at and above the county level in their supervision and examination of violations to land administration and provide all the conveniences to facilitate but not in any way refuse or obstruct their work in such a regard.

　Article 70 Whereas land administrative departments of the people's governments at and above the county level have found government functionaries to have committed violations during their supervision and examination, they shall give them administrative punishments whereas the punishments are due. Whereas they do not have the right to handle the cases, they should put forward proposals for administrative punishments to the administrative supervision organs at the same level or at a higher level. The related administrative supervision departments shall mete out punishments according to law.

　Article 71 Whereas the land administrative developments of the people's governments at and above the county level have found violations to have constitute a crime in their supervision and examination, they shall hand over the case to related government organs to affix criminal responsibilities. Whereas the case cannot constitute a crime, administrative punishments shall be meted out.

　Article 72 Whereas related land administrative departments have failed to give administrative punishments due, the land administrative departments of the people's governments at a higher level have the right to command the land administrative departments to take punishment decisions or give administrative punishments directly and give administrative punishments to the person responsible of the related land administrative departments.

CHAPTER SEVEN LEGAL RESPONSIBILITIES

　Article 73 For illegal transfer of land through trade or other forms, land administrative departments of the people's governments at and above the county level shall confiscate the proceeds from the transfer. For converting agricultural land into land for construction uses in violations to the provisions of the general plans for the utilization of land, an order shall be given to dismantle the new buildings or other facilities illegally built on the land illegally transferred for restoration of the land to the original state, and whereas in such cases no violation to the general plan for the utilization of land, the new building and other facilities on the land illegally transferred shall be confiscated and a fine may be imposed. Administrative punishments shall be given to persons in charge and persons directly responsible and whereas the case constitutes a crime, criminal responsibilities shall be affixed.

　Article 74 Occupying cultivated land to build kilns or graves or build houses, dig sand, collect stones, do mining or collect soil from the cultivated land without authorization, thus damaging the conditions for growing crops or causing desertification and salinization due to land development in violation of this law, the land administrative departments of the people's governments at and above the county level shall order correction or improvetment within a prescribed time limit and concurrently impose a fine. Whereas the case constitute a crime, criminal responsibility shall be affixed.

　Article 75 Refusing to perform land reclamation obligations in violation of this law, the land administrative departments of the people's governments at and above the county level shall order correction within a prescribed time limit. Whereas no correction is made within the time limit, a payment of land reclamation fees specially used for land reclamation by the violator shall be ordered and a fine may be imposed concurrently.

　Article 76 Occupying land without approval or by deception, the land administrative departments of the people's governments at and above the county level shall order to return the land illegally occupied; turning to agricultural land into land for construction uses without authorization in violation of the general plans for the utilization of land, dismantling of the new buildings and other stuctures on the land illegally occupied within a prescribed time limit shall be ordered and whereas the act has not violated the general plans for the utilization of land, the new buildings and structure concerned shall be confiscated and a fine may be imposed concurrently. Persons in charge of the unit that occupies land illegally and the people directly responsible shall be given administrative punishments and whereas the case constitutes a crime, criminal responsibility shall be affixed.
　For an occupation of land in excess of the approved amount, part in excess shall be regarded as land illegally occupied.

　Article 77 Occupying land by rural villagers for building houses without approval or by deception shall be ordered a return of the land illegally occupied and dismantle the new houses built on the land illegally occupied by land administrative departments of the people's governments at and above the county level.
For occupation of land in excess of the standards prescribed by the provinces, autonomous regions and municipalities, the land in excess of the standards shall be regarded as having been illegally occupied.

　Article 78 Approving the occupation of land without the power of approval, beyond the term of reference, or not according to the purposes defined in the general plans for the utilization of land or approving the occupation or requisitioning of land in violation of the legal procedures, the documents of approval shall be invalid and the persons in charge and personnel directly responsible for illegal requisition or use of land shall be given administrative punishments. Whereas the case constitutes a crime, criminal responsibilities shall be affixed. The land illegally approved and used shall be recovered. Whereas parties concerned refuse to return, the case shall be regarded as illegal occupation of land.
Whereas illegal requisition and use of land have caused damages to parties concerned, the party responsible shall bear the responsibilities of compensation according to law.

    Article 79 Embezzling or diverting the use of land compensation fees and other related expenses of the units whose land is requisitioned, criminal responsibilities shall be affixed whereas the case constitutes the crime and administrative punishments shall be meted out whereas the case is not serious enough to constitute a crime.

    Article 80 A refusal to return of land use right upon a legal recovering of the land or an expiration of temporary land use term or State-owned land is used not according to the purposes approved, the land administrative departments of the people's governments at and above the county level shall order the return of the land and impose a fine.

    Article 81 Leasing, transferring or renting the use right of land owned by peasant collectives for non-agricultural construction uses, the land administrative departments of the people's governments at and above the county level shall order correction within a prescribed time limit, confiscate the proceeds concerned and impose a fine.

    Article 82 Refusing to go through the land alteration registration according to the provisions of this law, the land administrative departments of the people's governments at and above the county level shall order the parties concerned to go through the procedure within a prescribed time limit.

　Article 83 Whereas orders have been issued to dismantle the new buildings and other facilities on the land illegally occupied within a prescribed time limit according to the provisions of this law, the construction unit or individual shall stop operation immediately and dismantle them by themselves. Whereas the operation continues, the organ which decided for the punishment decisions has the right to stop it.
Whereas a construction unit or individual refuse to accept the administrative punishment decisions on dismantling the buildings and other facilities, it may bring the case before the people's court within 15 days starting from the day when the decision is received. Whereas a unit or individual fails to put the case in proceeding when the time limit expires and yet refuses to do the dismantling, the organ making the punishment decision shall apply for compulsory exercise with the people's court and the cost arising therefrom shall be borne by the law violator.

　Article 84 Dereliction of duty, abuse of power for personal gains and practise favouritism by personnel of the land administrative departments shall be affixed of criminal punishments according to criminal law whereas the case is serious enough to constitute a crime or imposed of administrative punishments whereas the case is not serious enough to constitute a crime.
　
　CHAPTER EIGHT SUPPLEMENTARY PROVISIONS
　
    Article 85 This law applies to the use of land by Sino-foreign joint equity and cooperative ventures, and wholly foreign-owned enterprises. Whereas there are separate provisions by law, those provisions shall prevail.

　Article 86 The law shall come into force starting from January 1, 1999.

    Appendix: Related articles in the Criminal Law:

　Article 228 Illegal transfer or trade of land use right for personal gains in violation of the land administrative law and regulations shall be sentenced to a prison term of less than three years or to forced labor, with a concurrent fine amounting to more than 5% and less than 20% of the proceeds from the illegal transfer or trading whereas the case is serious enough, and whereas the case is very serious, it shall be sentenced to a prison term ranging from more than three years to less than seven years, with a fine ranging from more than 5% to less than 20% of the proceeds from the illegal transfer or trading of the land use right.
 
    Article 342 Illegal turning of cultivated land occupied into other uses in a big amount to cause damages to large tracts of cultivated land in violation of the land administrative law and regulations, a punishment of from less than five years' in prison or forced labor shall be given, together with a fine concurrently or separately.

　Article 410 Whereas government functionaries are found to have committed deception or forgery for personal gains in violation of the land administrative law and regulations or have abused their power to illegally approve the requisition of land or under-sell the use right of State-owned land and the cases are serious, a punishment of less than three years in prison or forced labor shall be given; whereas the cases have caused very big losses to the State or collectives, a prison term ranging from more than three years to less than seven years shall be meted out.

Contents

　　Chapter I General Provisions

　　Chapter II Fire Prevention

　　Chapter III Fire Fighting Organizations

　　Chapter IV Fire Extinguishment and Rescue

　　Chapter V Legal Liability

　　Chapter VI Supplementary Provision

CHAPTER ONE GENERAL PROVISIONS 

Article 1 This law is formulated in the purpose of preventing fire and reducing fire damage, safeguarding citizen's personal security, public property and civil assets, upholding public security and ensuring the smooth construction of the socialist modernization.
　Article 2 Fire control work shall follow the policy of devoting major efforts into prevention and combining fire prevention with fire fighting, and shall adhere to the principle of combining the efforts of both specialized organizations and the masses and carry out responsibility system on fire prevention and safety.

　Article 3 The State Council shall led and the people's governments at all levels be responsible for fire control work.
The people's government at all levels shall bring fire control work in line with the national economy and social development plan, and ensure that fire control work fit in with the economic construction and social development.

  Article 4 The public security department of the State Council shall monitor and administer the nationwide fire control work; the public security organs of local people's governments above county level shall monitor and administer the fire control work within their administrative region and the fire control institutions of public security organs of the people's government at the same level shall be responsible for the implementation. 
　Fire control work for military facilities, underground parts of mines and nuclear power plant shall be monitored and administered by their competent units. 
　For fire control work on forest and grassland, in cases there are separate regulations, the separate regulations shall be followed.

　Article 5 Any unit and individual shall have the obligation of keeping fire control safety, protecting fire control facilities, preventing fire disaster and reporting fire alarm.
　Any unit and adult shall have the obligation to take part in organized fire fighting work.

　Article 6 The people's government at all levels shall carry out regular fire control propaganda and education and strengthen citizens' awareness on fire control.
　Administrative department on education and labor shall put fire control knowledge into teaching and training.
　Competent departments in journalism, publishing, broadcasting, movie and television sector shall have the obligation to conduct propaganda and education on fire control safety.

　Article 7 Units and individuals who make prominent contribution or achievements in fire control work shall be awarded.

　CHAPTER TWO FIRE PREVENTION

　Article 8 Urban people's governments shall bring the fire control plan into the overall urban planning, including fire control safety layout, fire control station, fire control communication, fire truck passageway and fire control equipment, etc, and take the charge of organizing relevant departments for its implementation. 
　In case public fire control facilities and equipage are insufficient or do not fit in with actual demand, efforts should be made on expansion, rebuilding, allocation and purchase or technical reform.
　Science research and promotion on fire control work should be reiterated and advanced fire control technology and equipage should be adopted.

　Article 9 Existing factories and warehouses and specialized depots and wharves for production, storage, loading and unloading of inflammable and explosive dangerous goods, shall be established at urban border area or independent safety zone.
　Filling and loading stations, supply stations and pressure regulating stations for inflammable and explosive gas and liquid shall be set up in an appropriate location and shall conform to the requirements on prevention of fire and explosion.
　For existing factories and warehouses and specialized depots and wharves for production, storage, loading and unloading of inflammable and explosive dangerous goods, and filling and loading stations, supply stations and pressure regulating stations for inflammable and explosive gas and liquid, in case they do not conform to the regulations of this article, relevant units shall adopt measures to give a solution within a time limit.

　Article 10 For construction project conducting fire control design in accordance with requirements of the State Technical Standards on Fire Control for Engineering Construction, the design unit shall conduct the design in accordance with requirements of the State Technical Standards on Fire Control for Engineering Construction; the construction unit shall submit the drawings of fire control design for the construction project and relevant materials to relevant public security fire control institution for review and approval;
　for project not going through review and approval formalities or considered unqualified after the review and examination, the competent construction administrative department shall not issue the license for construction and the construction unit shall not carry out the construction.
　For fire control design for construction project approved by relevant public security fire control institution, in case the design needs changes, it shall be submitted to the previous public security fire control institution granting the approval for examination and approval; without approval, no unit or individual shall be allowed to make the changes.
　Upon the completion of a construction project containing a fire control design conducted in accordance with requirements of the State Technical Standards on Fire Control for Engineering Construction, the project must go through acceptance checked on fire control by relevant public security fire control institutions; project without going through the acceptance check or considered unqualified after the acceptance check shall not be put into use.

　Article 11 The fire proof performance of constructional elements and construction materials must conform to the state standards or industrial standards.
　The indoor fittings and decoration of public places using inflammable and flame retardant materials in accordance with requirements of the State Technical Standards on Fire Control for Engineering Construction, shall choose materials passing qualification check by inspection institution designated in accordance with regulations of the Product Quality Law.
　Article 12 Song and dance hall, cinema, hotel, restaurant, commercial center and market fair where the public gather, before putting into use or starting business, shall be reported to local public security fire control institutions and can only be put into use or start business after passing the acceptance check on fire control safety.

　Article 13 For mass activities with fire danger, such as large gatherings, fireworks evening party and lantern party, the host unit shall formulate preproposal on fire fighting and emergency evacuation and put into effect relevant fire control security measures, and report to public security fire control institutions which will conduct fire control security check. The activities can only be held when qualification check is granted.

　Article 14 State organs, organizations, enterprises and institutions shall perform the following duties on fire control security:
　(I) Formulate fire control safety system and operation rules on fire control safety;
　(II) Exercise fire prevention safety responsibility system, appoint person-in-charge for fire control safety of the unit and various departments and posts under the unit;
　(III) Conduct fire control propaganda and education on employees in light of the characteristics of the unit,
　(IV) Organize fire prevention inspection and remove hidden danger in time;
　(V) Allocate and purchase fire control facilities and devices, set up fire control safety marks in accordance with relevant state regulations, and organize regular inspection and maintenance to ensure a perfect and effective condition of fire control facilities and device;
　(VI) Ensure that evacuation passageway and safety exit are unblocked and set up evacuation marks on fire control safety conforming to the state regulations.
　The administrative unit of residential areas shall perform duties and responsibilities on fire control safety in accordance with regulations of this article and do a good job on fire control safety in the residential areas.

　Article 15 Rooms within the same building of workshop or warehouse shall not be used as dormitory.
　In case rooms in a building with workshop or warehouse have already been used as dormitory, the problem shall be solved within a time limit. 
　Those who indeed have difficulties for the time being, shall take necessary fire control safety measures and can only continue to use the dormitory after acquiring approval from public security fire control institutions.

　Article 16 For units with higher risk of fire disaster and units that may cause major casualties and deaths or heavy loss of assets in case of fire disaster, the public security fire control institutions of local people's governments above county level shall select these units as key units on fire control safety of their administrative region and file with the people's government of the same level for reference.
　Key units on fire control safety shall, in addition to performing the duties and responsibilities as stipulated in Article 14 of this law, perform the following duties and responsibilities on fire control safety: 
　(I) Set up file system on fire prevention, locate critical parts for fire control safety, set up fire prevention marks and exercise strict administration;
　(II) Exercise daily fire prevention patrol and set up patrol record;
　(III) Conduct fire control safety training on employees;
　(IV) Formulate pre-proposal on fire fighting and emergency evacuation and organize regular fire drill.
　Article 17 Any unit and individual engaged in production, storage, transportation, sales or use and destroy of inflammable and explosive dangerous goods, must execute relevant state regulations on fire control safety.
　Units producing inflammable and explosive dangerous goods shall attach instruction book with datas such as the ignition point, flash point and explosion limit of the product, and give points of attention for fire and explosion prevention.
　Inflammable and explosive dangerous goods with independent packing shall be attached with a tag of dangerous goods.
　Those who enter places where inflammable and explosive dangerous goods are produced and stored, must execute the state regulations on fire control safety.
　It is prohibited to carry kindling into places where inflammable and explosive dangerous goods are produced and stored.
　It is prohibited to illegally carry inflammable and explosive dangerous goods into public places or on public transportation means.
　The management of warehouses storing inflammable goods must be in execution of relevant state regulations on fire control safety.

　Article 18 It is prohibited to use naked light in places with fire and explosion danger; in case naked light operation is required for special reasons, examination and approval formalities shall be handled in accordance with relevant regulations.
　Operators shall follow the regulations on fire control safety and adopt corresponding measures on fire control safety.
　Operators conducting operation with fire danger like electrical welding and gas welding or operators for automatic fire control system, must hold relevant certificates and strictly observe operation rules on fire control safety.
    Article 19 The quality of fire control products must conform to the state standards or industrial standards.
　It is prohibited to produce, sell or use fire control products without passing qualification check by the inspection organ designated in accordance with regulations of the Product Quality Law.
　It is prohibited to use complementary fire control parts, extinguishant, maintenance and fire control facilities and devices not conforming to the state standards or industrial standards.
　Public security fire control institutions and their staff shall not specify sales units and brands of fire control products in the capacity of their functions.

　Article 20 The quality of electrical products and gas utensils must conform to the state standards or industrial standard.
　The installation, use and design and laying of circuit and pipes must conform to relevant technical regulations on fire control.

　Article 21 Any unit or individual shall not damage or arbitrarily use, dismantle and stop using fire control facilities and devices, and shall not bury and occupy hydrant, occupy fire prevention space and block fire control passageway.
　Public utility units or urban construction units, when building road and cutting off power, water supply and communication lines that may affect fire brigade in fire fighting and rescue work, must inform local public security fire control institutions in advance.
　
　Article 22 During farm products harvest seasons and fire prevention period of forest and grassland, major holidays and frequent fire disaster seasons, local people's government at all levels shall organize and carry out fire control propaganda and education according to the specific situations, adopt fire prevention measures and conduct fire control safety inspection.
　Article 23 Villagers committee and neighborhood committee shall organize the masses to carry out fire control work, formulate fire prevention safety convention and conduct fire control safety inspection.
　The township people's governments and urban neighborhood offices shall give guidance and supervision.
　
　Article 24 Public security fire control institutions shall monitor and conduct inspection on state organs, organizations, enterprises and institutions in terms of their observance of fire control laws and regulations.
　For key units for fire control safety, regular monitoring and inspection shall be conducted.
　Working staff of public security fire control institutions, when conducting supervision and inspection, shall produce certificates.
　Public security fire control institutions, when conducting fire control examination and approval and acceptance check, shall not collect fees.

　Article 25 Public security fire control institutions, when finding out hidden fire danger, shall inform relevant units or individuals in time to take measures and order to remove the hidden danger within a time limit.
　　　
  CHAPTER THREE FIRE CONTROL ORGANIZATIONS

　Article 26 The people's government at all levels shall, in accordance with the requirement of economic and social development, set up fire control organizations in multi forms, strengthen construction of fire control organizations and the abilities on fire fighting. 
    
   Article 27 Urban people's governments shall, in accordance with the standards on fire control station construction, set up public security fire brigade, full time fire brigade to undertake fire fighting and rescue work. 
   Township people's governments may, in accordance with the requirements of economic development and fire control work, set up full time and voluntary fire brigades to undertake fire fighting and rescue work.
　Public security fire brigades, except guaranteeing to carry out fire fighting and rescue work as stipulated in this law, should also do rescue and relief work of other disasters or accidents.

　Article 28 The following units shall set up full time fire brigades to undertake fire fighting and rescue work.
　(I) Nuclear power plant, large power plant, civil airports and large wharves;
　(II) Large enterprises producing and storing inflammable and explosive dangerous goods;
　(III) Large warehouses and bases storing inflammable important goods;
    (IV) Other large enterprises other than those listed in Item (I) (II) (III), but with high risk of fire disaster and are far from local public security fire brigades.

　Article 29 The establishment of full time fire brigade shall conform to relevant regulations of the state and be submitted to fire control institutions of public security organs of the people's government at provincial level.
　　
　Article 30 State organs, organizations, enterprises and institutions as well as towns and villages may set up obligatory fire brigade consisting of working staff or villager based on need.
　
　Article 31 Public security fire control institutions shall give business guidance to full time and obligatory fire brigades, and shall have the right to direct and muster full time fire brigade for fire fighting and rescue work.

　CHAPTER FOUR FIRE FIGHTING AND RESCUE

　Article 32 Any one who discover a fire shall immediately report to the police.
　Any unit and individual shall provide convenience for fire alarm reporting gratis and shall not obstruct the reporting. It is strictly prohibited to make false reporting of fire.
　In case a fire occurs in a public place, the on site working staff of the public place shall have the obligation to organize and guide the evacuation of on-site masses.
　Units suffering fire disaster shall immediately organize fire fighting and rescue work. Neighboring units shall provide support.
　Fire brigades, upon receiving fire reporting, must rush to fire site immediately to rescue people under mishap, eliminate dangerous case and extinguish fire.

    Article 33 Public security fire control institutions, when making unified organization and direction of on site fire fighting and rescue, the chief commander shall have the right to determine the following matters in accordance with the requirements of fire fighting and rescue work:
　(I) Use of various water sources;
　(II) Cut off transmission of power, inflammable gas and liquid, and restrict the use of fire and power;
　(III) Delimit warning zone and exercise local transportation control;
　(IV) Make use of neighboring constructions and related facilities;
　(V) Dismantle or damage neighboring constructions and structures of fire site so as to prevent fire spreading;
　(VI) Muster relevant units of water and power supply, medical and rescue and transportation to assist the fire fighting and rescue work.
　For ultra large fire disaster, relevant local people's government shall organize relevant personnel and assemble necessary goods to support the fire fighting.

　Article 34 Public security fire control institutions, when conducting relief and rescue work of other disasters or accidents other than fire disaster, shall carry out the task under unified direction of relevant local people's government.

    Article 35 Fire trucks and fire boats, when rushing for fire fighting and rescue work or relief and rescue task for other disaster and accidents, shall not be restricted by its driving speed, driving route, driving direction and traffic signals; other vehicles, ships and pedestrians must make way and shall not conduct overtaking.
　Traffic commander shall guarantee the fast and smooth passing of fire trucks and fire boats.

　Article 36 Fire truck, fire boats and fire control devices, equipage and facilities shall not be used for purposes other than fire fighting and rescue work.

　Article 37 Fire brigades shall not charge any fee for fire fighting and rescue work from units and individuals suffering fire disaster.
Full time fire brigade and obligatory fire brigade shall be compensated for fuel, extinguishant and device and equipage used in taking part of fire fighting and rescue for other units.

　Article 38 Personnel suffering injury, cripple and death as a result of taking part of fire fighting and rescue work, shall be given medical treatment and compensation.

    Article 39 After a fire is extinguished, public security fire control institutions shall, based on need, have the right to seal up fire site, be responsible for investigation, identify fire cause, check and ratify fire losses and find out responsibilities of fire disasters.
　For ultra large fire disasters, in case the State Council or the people's government at provincial level consider it necessary, an investigation can be organized.
　After a fire is extinguished, fire breaking units shall protect fire site in accordance with requirements of public security fire control institutions, accept investigation on the accident and provide accurate facts on the fire disaster.

　CHAPTER FIVE LEGAL RESPONSIBILITIES

　Article 40 Any one who violates the rules of this law and has one of the following conducts, shall be ordered to make corrections within a time limit; those who do not make the corrections after the time limit, shall be ordered to stop construction, stop use of things concerned or stop production or business, and may be punished with penalty simultaneously:
　(I) Those who start construction when the fire control design of the construction projects have not be reviewed and approved or be considered disqualified after the review and examination by relevant public security fire control institutions.
　(II) Those who make arbitrary use of a completed construction project which should conduct fire control design in accordance with law but has not passed or fail to pass the fire control acceptance check;
　(III) Those who arbitrarily make use of or start business in places where the public gather without going through fire control safety check or fail to pass the qualification check;
　(IV) Units with conduct of this article shall be punished in accordance with rules of this article and the person in charge with direct responsibility or other personnel with direct responsibility shall be given warning or penalty.

　Article 41 Those who, in violation of this law, arbitrarily hold mass activities like large gatherings, fireworks evening party, lantern party with risk of fire disaster, shall be ordered to make corrections by public security fire control institutions;
　those who can not make the corrections, shall be ordered to suspend the activities and may be imposed with penalty.
　(V) Units with the conduct of this article shall be punished in accordance with the rules of this article, and the person in charge with direct responsibility or other personnel with direct responsibility shall be given disciplinary warning or penalty.

　Article 42 Those who, in violation of this law, arbitrarily lower technical standards on fire control in construction, us construction parts and materials not conforming the state standards or industrial standards or disqualified fitting and decoration materials during construction, shall be ordered to make corrections within a time limit;
　those who do not make the corrections within the time limit, shall be ordered to stop construction, and can be imposed with penalty simultaneously.
　Units with the conduct of this article, shall be punished in accordance with rules of this article; and the person in charge with direct responsibility or other personnel with direct responsibility shall be given disciplinary warning or penalty.

　Article 43 State organs, organizations, enterprises and institutions who violates rules of this law and do not perform responsibilities or fire control safety, shall be ordered to make corrections within a time limit;
　for units who do not make the corrections within the time limit, the person in charge with direct responsibility or other personnel with direct responsibility shall be given administrative sanction or disciplinary warning.
　Operational places with one of the following conducts shall be ordered to make corrections within a time limit; those who do not make the corrections within the time limit, shall be ordered to stop production and business, and can be imposed with penalty simultaneously; the person in charge with direct responsibility or other personnel with direct responsibility shall be imposed with penalty:
　(I) Those who do not remove fire danger in time;
　(II) Those who do not, in accordance with relevant regulations of the state, allocate and purchase fire control facilities and devices;
　(III) Those who do not guarantee the evacuation passageway and safety exist unblocked.
　Those who use rooms in a building with workshop or warehouse as dormitory shall be punished in accordance with rules of Article 2.
　Article 44 Those who, in violation the rules of this law, produce and sell fire control products that have not passed qualification check by inspection institutions designated in accordance with rules of the Product Quality Law, shall be ordered to stop illegal action, and be confiscated with product and illegal income, and be strictly punished in accordance with the rules of the Product Quality Law. 
　Those units engaged in maintenance and check and test of fire control facilities and devices, carry out maintenance and check and test in violation of rules on fire control technology, shall be ordered to make corrections within a time limit and can be imposed with penalty simultaneously; and the person in charge with direct responsibility or other personnel with direct responsibility shall be given disciplinary: warning or penalty.

　Article 45 In case the installation of electrical appliances and gas utensils or the laying of circuits and pipelines do not conform to the rules of fire control technology, the person in charge shall be ordered to make corrections within a time limit; those who do not make the corrections within the time limit, shall be ordered to stop the use.

　Article 46 Those who, in violation the rules of this law, produce, store, transport, sell or use, destroy inflammable and explosive dangerous goods, shall be ordered to stop illegal activities, and can be given disciplinary warning, penalty or disciplinary warning or penalty.
　Those units with the conduct of this article, shall be ordered to stop illegal activities, and can be given disciplinary warning or penalty, and the person in charge with direct responsibility or other personnel with direct responsibility shall be punished in accordance with rules of this article.

　Article 47 Those who, in violation the rules of this law, have one of the following conducts, shall be given disciplinary warning or penalty, or detention less than 15 days:
　(I) Those who, in violation the rules of this law, enter places where inflammable and explosive dangerous goods are produced and stored;
　(II) Those who, in violation law, use naked light in operation or who, in violation of prohibition, smoke, use naked light in places with fire and explosion danger.
　(III) Those who obstruct fire alarm reporting or make false report on fire disaster;
　(IV) Those who deliberately obstruct fire truck and fire boasts from rushing to fire site or who disturb the order of fire site;
　(V) Those who refuse to obey the command of fire site commander and influence fire fighting and rescue work;
　(VI) Those whose blunder causes fire but has not resulted in heavy losses.

　Article 48 Those who violates the rules of this law and have one of the following conducts, shall be given disciplinary warning or penalty:
　(I) Those who instigate or force others to conduct operation at risk in violation the rules on fire control safety, but have not cause serious results;
　(II) Those who bury, occupy fire hydrant or occupy fire prevention space, block fire control passageway, or damage and arbitrarily use, dismantle and stop use fire control facilities and devices;
　(III) Those who do not remove serious fire danger after being informed by public security fire control institutions;
　Units with the conduct of this article shall be punished in accordance with rules of this article; and the person in charge with direct responsibility or other personnel with direct responsibility shall be disciplinary warning or penalty.

　Those who have the conduct listed in item 2 of Clause 1, shall be further ordered to make restoration or compensate the losses within a time limit; for those who do not make the restoration after the time limit, a forcible execution will be carried out on the dismantle or cleaning up at the expense of the person(s) with illegal conduct.

　Article 49 On site working staff of public places, in case of a fire, do not perform the obligation of organizing and guiding the evacuation of the on site masses, and cause casualty and death, but do not constitute a criminal charge, shall be punished with detention less than 15 days.

　Article 50 For those who, after a fire is extinguished, deliberately destroy the fire site or make a simulated scene in the purpose of concealing and covering up fire causes and shirking their responsibility, but do not constitute a criminal charge, shall be given disciplinary warning or penalty and the person in charge with direct responsibility or other personnel with direct responsibility shall be punished in accordance with this article.

　Article 51 The punishment on conducts violating the rules of this law shall be decided by public security fire control institutions;
　punishment of detention shall be decided by public security organs in accordance with rules of penal clauses on public order administration.

　Article 52 The working staff of public security fire control institutions, in case of abusing their authority, ignoring their duty and playing favoritism and committing irregularities, and having one of the following conducts, causing loss to the benefit of the state and people, but having not constituted a criminal charge, shall be given administrative sanction in accordance with law:
　(I) Those who pass the examination and approval and acceptance check to fire control design and construction projects that do not conform to the state technical standards on fire control for construction projects;
　(II) Those who deliberately delay in giving and do not give examination and approval and acceptance check to fire control design and construction projects that shall be given examination and approval and acceptance check in accordance with law.
　(III) Those who do not inform relevant units or individual to make corrections when finding hidden danger of fire.
　(IV) Those who, in the capacity of their function, specify sales units or brands of fire control products or specify construction units of fire control facilities.
　(V) Other conducts involving abusing authority, dereliction of duty and playing favoritism and committing irregularities.

　Article 53 Those who violate this law and commit a criminal offence will be punished as a crime.

　Article 54 This law shall come into force as of September 1, 1998. Meanwhile, the "Regulations on Fire Control of the People's Republic of China" approved by the fifth meeting of the Standing Committee of the 6th National People's Congress on May 11, 1984 and promulgated by the State Council on May 13, 1984 shall be annulled simultaneously.

Order of the China Banking and Insurance Regulatory Commission

(No. 9 [2020])

The Interim Measures for the Administration of Internet Loans of Commercial Banks, as adopted at the 4th executive meeting of the China Banking and Insurance Regulatory Commission on April 22, 2020, are hereby issued, and shall come into force on the date of issuance.

Chairman: Guo Shuqing

July 12, 2020

Chapter I General Provisions

Article 1 These Measures are developed in accordance with the Banking Supervision Law of the People's Republic of China, the Law of the People's Republic of China on Commercial Banks and other relevant laws and regulations, for the purposes of regulating the Internet loan business of commercial banks and promoting the sound development of the Internet loan business.

Article 2 Commercial banks legally formed within the territory of the People's Republic of China shall engage in the Internet loan business in compliance with these Measures.

Article 3 For the purposes of these Measures, “Internet loans” means personal loans and working capital loans provided to eligible borrowers for consumption or regular production and operation turnover, among others, by a commercial bank using information and communication technologies such as Internet and mobile communication to conduct cross validation and risk management based on risk data and risk models, online automatic acceptance of loan applications, and risk assessment, and complete operations in core business links such as credit approval, contract conclusion, loan payment, and post-loan management.

Article 4 For the purposes of these Measures, “risk data” means various internal and external data collected and used by a commercial bank in such links as the verification of borrowers' identity and identification, analysis, evaluation, monitoring, early warning and disposal of loan risks.

For the purposes of these Measures, “risk models” means various models applied to the entire process of the Internet loan business, including but not limited to identity authentication model, anti-fraud model, anti-money laundering model, compliance model, risk evaluation model, risk pricing model, credit approval model, risk early warning model and loan clearance model.

For the purposes of these Measures, “cooperators” means various institutions that cooperate with commercial banks in such aspects as marketing and client acquisition, co-financing for loan issuance, payment and settlement, risk sharing, information technology, and overdue clearance in the Internet loan business, including but not limited to financial institutions such as banking financial institutions and insurance companies, as well as non-financial institutions such as petty loan companies, financing guarantee companies, e-commerce companies, non-banking payment institutions and information technology companies.

Article 5 These Measures shall not apply to the following loans:

(1) Loans for which applications are made by borrowers online, but pre-loan investigation, risk assessment and credit approval are conducted or mainly conducted by commercial banks offline or the core judgments on lending and credit granting arise from offline.

(2) Collateralized loans provided by commercial banks, the collateral of which shall be subject to or mainly subject to offline appraisal, registration, and delivery for custody.

(3) Other loans prescribed by the China Banking and Insurance Regulatory Commission (“CBIRC”).

Other relevant regulatory provisions shall apply to the aforesaid loans.

Article 6 Internet loans shall observe the principles of small amount, short term, high efficiency and controllable risks.

The credit line for personal credit loans for consumption to a single client shall not exceed 200,000 yuan; if the loan is to be repaid in a lump sum upon maturity, the credit period shall not exceed one year. The CBIRC may adjust the aforesaid credit line according to commercial banks' business management, risk level, and development of the Internet loan business, among others. A commercial bank shall, within the credit line prescribed above, determine different credit lines based on the characteristics and consumption scenarios of its group of clients, among others.

A commercial bank shall, based on its own risk management capability, and in light of the region, industry and category, among others, of Internet loans, determine the ceiling of credit line for personal loans for production or operation or working capital loans to a single client. For any of the aforesaid loans with a term of more than one year, the corresponding credit for the loan shall be reassessed and re-approved at least on an annual basis.

Article 7 A commercial bank shall, based on its market positioning and development strategies, develop Internet loan business plans in line with its own characteristics, and specify the cooperation mode if any cooperator is involved.

Article 8 A commercial bank shall conduct the unified management of its Internet loan business, include its Internet loan business in the comprehensive risk management system, establish and improve the risk governance structure, risk management policies and procedures, and the internal control and audit system in line with the characteristics of the Internet loan business, effectively identify, assess, monitor and control Internet loan business risk, and guarantee that the development of its Internet loan business is commensurate with its own risk appetite and risk management capability.

Where the Internet loan business involves any cooperator, the core links of risk control such as credit approval and contract conclusion shall be conducted by the commercial bank in an independent and effective manner.

Article 9 A local corporate bank engaging in the Internet loan business shall mainly serve local clients, prudently provide services in regions beyond the jurisdiction of its place of registration, and effectively identify and monitor the development of services in regions beyond the jurisdiction of its place of registration, except those that have no physical business outlets, mainly provide services online, and meet other conditions prescribed by the CBIRC.

Where a branch is established in another province (autonomous region or municipality directly under the Central Government), the services provided to clients within the administrative region at the place where the branch is located are not services in regions beyond the jurisdiction of the place of registration as mentioned in the preceding paragraph.

Article 10 A commercial bank shall establish and improve the mechanism for the protection of borrowers' rights and interests, improve its internal appraisal system for the protection of consumers' rights and interests, effectively assume the primary responsibility for the protection of borrowers' data, strengthen the protection of borrowers' privacy data, and build safe and effective business consultation and complaint handling channels so as to ensure that borrowers enjoy corresponding services not inferior to those for offline lending, and embed the requirements for consumer protection into the system for the entire process management of the Internet loan business.

Article 11 The CBIRC and its local offices (hereinafter referred to as “banking regulatory authorities”) shall supervise and administer the Internet loan business of commercial banks in accordance with these Measures.

Chapter II Risk Management System

Article 12 A commercial bank shall establish and improve the Internet loan risk governance structure, specify the duties of the board of directors and the senior management for Internet loan risk management, and establish appraisal and accountability mechanisms.

Article 13 The board of directors of a commercial bank shall assume the ultimate responsibility for Internet loan risk management, and perform the following duties:

(1) Deliberating and approving Internet loan business plans, cooperator management policies and cross-regional business management policies.

(2) Deliberating and approving Internet loan risk management rules.

(3) Supervising the senior management's management and control of Internet loan risk.

(4) Obtaining Internet loan business assessment reports on a periodical basis, and obtaining the information on the business management and risk level of the Internet loan business and consumer protection, among others, in a timely manner.

(5) Other relevant duties.

Article 14 The senior management of a commercial bank shall perform the following duties:

(1) Determining Internet loan business management structure, and specifying the division of duties among all departments.

(2) Developing, assessing and overseeing the implementation of Internet loan business plans, risk management policies and procedures, cooperator management policies and procedures, as well as cross-regional business management policies.

(3) Developing risk management and control indicators for the Internet loan business, including but not limited to the quota of Internet loans, quota of loans co-financed with cooperators and the proportion of capital contribution, concentration of cooperators, and ratio of non-performing loans.

(4) Establishing a risk management mechanism of the Internet loan business, continuously monitoring, controlling and reporting various risks in an effective manner, and responding to risk events in a timely manner.

(5) Obtaining sufficient information on and assessing on a periodical basis the development, risk level and management status of the Internet loan business, as well as consumer protection, obtaining the information on their major changes in a timely manner, and filing reports with the board of directors on a periodical basis.

(6) Other relevant duties.

Article 15 A commercial bank shall ensure that it has sufficient resources to manage Internet loan risk in an independent and effective manner, ensure that the board of directors and the senior management are aware of the risk status in a timely manner, and accurately understand the role and limitations of risk data and risk models.

Article 16 A commercial bank's rules for the management of Internet loan risk shall cover the entire lending process including marketing, investigation, credit granting, contract conclusion, loan release, payment, tracking and recovery, among others.

Article 17 A commercial bank shall obtain the data on target clients through legal channels and methods, conduct loan marketing, and fully assess target clients' capital needs, repayment willingness and capability. The commercial bank shall, in the loan application process, increase the link of compulsorily reading the loan contract and set a reasonable time limit for reading.

A commercial bank shall, when introducing Internet loan products to target clients by itself or through any cooperator, fully disclose such basic information as the borrower, loan conditions, actual annual interest rate, annualized synthetic fund cost, arrangements on the repayment of principal with interest, overdue clearance, consulting and complaint channels, as well as the liability for the breach of contract in conspicuous positions to guarantee clients' right to know and to make their own choices, and shall not deprive clients of their rights to declare their intention by such means as check by default and forced tie-in sales.

Article 18 As required for combating money laundering and financing of terrorism, among others, a commercial bank shall, through constructing an identity authentication model, take such effective measures as online verification and biometrics to identify clients, verify and retain online borrowers' identity data and willingness to borrow so as to ensure true and valid identity data of borrowers, and borrowers' true declaration of will. The commercial bank shall not entrust the verification of borrowers' identities to any cooperator without restrictions.

Article 19 A commercial bank shall establish an effective anti-fraud mechanism, monitor frauds on real time, analyze changes of fraud risks on a periodical basis, constantly improve anti-fraud model review rules and relevant technical means to prevent the acts of posing as others to maliciously obtain bank loans in a fraudulent manner, and guarantee the safety of credit funds.

Article 20 A commercial bank shall, after obtaining authorization, inquire about a borrower's credit information, and collect, inquire about and validate relevant qualitative and quantitative information of the borrower online through legal channels and means, including but not limited to the information on taxation, social insurance funds, and housing provident funds, so as to obtain the information on the borrower's credit status in a comprehensive manner.

Article 21 A commercial bank shall build effective risk assessment, credit approval and risk pricing models, strengthen unified credit management, use risk data, and based on a borrower's existing debts, prudently assess the borrower's repayment capability, and determine the credit rating of and credit plan for the borrower.

(No. 7 [2020] of the State Council)

The people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government; and all ministries and commissions of the State Council, and all institutions directly under the State Council:

With more than three decades of development, China's national high-tech industrial development zones (hereinafter referred to as the “national high-tech zones”) have grown into important hubs for implementing the innovation-driven development strategy. Apart from that, they have made significant contributions to the shift of growth model, upgrading of industrial structure and increase of international competitiveness, and have been embarking on a path of high-tech industrialization with Chinese characteristics. For the purposes of promoting high-quality development of the national high-tech zones, and harnessing the exemplary and leading role of the zones, the Opinions are hereby offered as follows.

I. General requirements

1. Guiding ideology

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, efforts shall be made to implement the 19th CPC National Congress and the 2nd, 3rd, and 4th plenary sessions of the 19th CPC Central Committee, remain committed to the new vision of development, continue to follow the direction of “developing advanced technologies and supporting commercialization”, and make great efforts to improve the capability of independent innovation by prioritizing the reform of systems and mechanisms and the creation of an environment favorable to innovation and business startup, focusing on developing internationally competitive enterprises and industries, and centering on scientific and technological innovations. There shall also be efforts to deploy innovation chains based on industrial chains, lay out industrial chains to meet the needs of innovation chains, cultivate new drivers of development, improve the modernization of industrial development, and build the national high-tech zones into demonstration zones of innovation-driven development and pilot areas for high-quality development.

2. Basic principles

Continuing the innovation-driven approach and leading the high-quality development: Pursuing the fundamental path of innovation-driven development, optimizing the innovation ecosystem, gathering and integrating innovation resources, improving the capability of independent innovation, and taking the lead in high-quality development.

Adhering to the position of a high-tech innovation hub: Remaining firm to the development of advanced technologies and innovations, setting the pace of future development of technologies and industries, and building a growth pole that is open, innovative, and suitable for innovation, entrepreneurship, residence, and clustering of high-end industries.

Persisting in deepening reforms and stimulating vitality: Setting the goal of transformation and upgrading, improving the competition mechanism, strengthening institutional innovation, creating an open, impartial and transparent development environment that is conducive to competition, and unleashing the potential of various pro-innovation entities.

Following a reasonable pattern and playing an exemplary role: Strengthening the top-level design, optimizing the overall layout, highlighting the position as a role model, and promoting regional coordination and sustainable development.

Upholding distinctive features and providing targeted guidance: Exploring various modes of high-quality development for different regions based on their resources and conditions, establishing a mechanism for targeted assessment, and supporting dynamic management.

3. Development objectives

By 2025, the national high-tech zones will have an optimized development pattern, markedly stronger capability of independent innovation, continuously innovating systems and mechanisms, and apparently improved environment for innovation and entrepreneurship. A system for high-tech industries will be basically formed, and a mechanism for commercialization and industrialization of technological achievements will be established. Major breakthroughs will be made on a number of core technologies that are the pillar of industrial and regional development. A range of independently developed and internationally advanced products will come into being. Also emerging in the national high-tech zones will be a batch of innovation-oriented enterprises and industrial clusters with international competitiveness. Several world's leading high-tech industrial parks and innovation-based featured parks will be established. By 2035, a large number of high-tech industrial parks with global influence will be developed, with their principal businesses moving up to the middle and upper ends of the global value chain; and the governance system and capacity of the zones will be modernized.

II. Striving to improve the capability of independent innovation

4. Excellent innovation resources shall be vigorously gathered. The national high-tech zones shall actively introduce innovation resources from both home and abroad, such as universities and scientific research institutes, to meet the specific needs of the national strategy and industrial development by supporting the establishment of subsidiaries and joint construction. The national high-tech zones shall be supported in building market-oriented high-level laboratory facilities and innovation bases with primary support from leading enterprises in cooperation with universities and scientific research institutes. Active measure shall be adopted to cultivate new research and development institutions and other industrial technology innovation organizations. Priority shall be given to those that meet the conditions of being a national key laboratory or a national technology innovation center.

5. Top-caliber innovation personnel shall be retained and fostered. The national high-tech zones shall be supported in recruiting talents from all over the world. Leading enterprises in the zones shall be encouraged to work with universities to jointly build and manage modern industrial colleges to cultivate highly competent personnel. For talented foreigners working in enterprises in the national high-tech zones, the upper age limit to apply for work permits may be relaxed to 65 years upon approval of the administrative departments of science and technology of the people's governments at or above the municipal level (the Administrative Department for Foreigners Working in China). Foreign senior managers and professional technicians invited by enterprises in the national high-tech zones may, as required, apply for corresponding visas for multiple years and multiple entries; and talented foreigners working in enterprises in the zones may, as required, apply for residence permits valid for five years at most. If an outstanding international student who has obtained a bachelor's degree or above in one of China's leading colleges and universities or a foreign student who has graduated from an internationally renowned university engages in innovation or business startup activities, support shall be provided for him or her to apply for a residence permit.

6. Innovation of core technologies and commercialization of achievements shall be strengthened. The national high-tech zones shall increase investment in basic and applied researches, intensify joint efforts and commercial applications of key generic technologies, cutting-edge leading technologies, modern engineering technologies, and game-changing technologies, and promote the integration of technological innovation, standardization, intellectual property rights and commercialization. The relevant entities in the national high-tech zones shall be supported in undertaking the projects of national and local science and technology schemes, and major innovation achievements shall be supported in being commercialized, turned into products and industrialized in the zones. The construction of pilot testing and project-based service platforms of scientific and technological achievements shall be supported in the zones, and a risk sharing mechanism shall be explored. Efforts shall be made to pursue the reform on the ownership of job-related scientific and technological achievements. The construction of a specialized technology transfer mechanism and a platform for the trading of technological achievements shall be strengthened. Technical consultants, technology brokers and other technical professionals shall be cultivated.

    Hengyang will make continuing efforts to build a clean, neat and orderly urban environment this year, starting from the following aspects. First, continue to increase efforts to carry out the six battles and further strengthen the work done on six points including setting up stalls, sediment transportation, outdoor advertising and etc. . Second, pay close attention to the two projects, greening and lighting, to make Hengyang greener, its night brighter, and the pavements cleaner. The third is to promote the marketized reforms of the greenbelt management, sanitation and scenery belt maintenance, calling for all sectors of the society to participate in the city administration. The fourth is to propel the city administration to be segmented, elaborate, long-term and normalized, fostering an overall rise of the level of city administration.

    I. Nobody is allowed to charge the approved parking spaces on the sidewalks.

    There is a basic requirement for parking on the sidewalks:  the width of sidewalks should be at least 7 meters. With the bureau having not delimited stop lines on the sidewalks, most of the existing stop lines, at present, are designated personally by self-employed households. We will check all the stop lines of the city, and those that do not meet the parking conditions will be eradicated.

    Since last year, the city has conducted a massive rectification of traffic order which prohibits parking randomly an disorderly on roads so that there are many cars parked on the sidewalk. Currently, the parking spaces in urban areas are limited. As to the existing parking spaces on sidewalks which are 7 meters wide or above, we acquiesce in their parking, but we will not allow anyone to charge the parking. The parking spaces that are designated personally by self-employed households and that  do not meet the parking requirements will be considered as a violation. The Civil Administrative Police Detachment will give them punishment according to related law. Learning from the practice of other cities, we have presented a proposal of parking management on sidewalks which has been  reported to the municipal government for approval. If it is implemented as scheduled, probably more than 3,000 parking spaces will be increased in urban areas.

    II.Current sanitation of the city has greatly improved.

    At present, the sanitation of Hengyang is administrated through the contracted responsibility system with section as the shortest responsibility segment which means each section has a responsible contractor, being responsible for the cleaning work of the entire section. For some communities and special sections, market-oriented reforms will be implemented, for instance, the alleys and communities of Shigu and Zhengxiang district, have implemented the market-oriented bidding, employing professional cleaning companies to do the sweeping and cleaning. In addition, we have also strengthened supervision, reformed the sweeping and cleaning mode: 32 sprinklers working from 11 pm to 5 am each night sprinklers; cleaning vehicles, washing and sweeping vehicles as well as cleaning vehicles with manual labor cooperating with each other;  electric washing vehicles doing spot cleaning to somewhere particularly dirty.

    Now, both manual cleaning and mechanical operating account for 50% of the cleaning work. Sweeping and cleaning is dominated by manual cleaning. Mechanical operating is basically realized on the sweeping of main roads, highways and bridges. All of the roads cleaning are mechanically operating.

    III. The administrative police will only lock the vehicles of illegal parking, but not withhold the driver’s license of the driver when the parking rule has been found violated.

    When the parking rule has been found violated, the administrative police will not withhold driving license and driver's license, but only lock the vehicles. The next step in the reform program is to take the illegal parking on sidewalks into the management platform of traffic police and write down their license number. When dealing with the illegal vehicles of sediment transportation, the driver will be required to stop the violation, but the licenses will not be withheld.

    IV. The charges of booths in each district will be abolished.

    It is not allowed to set up stalls at main roads. The flowing stalls can only go into the community to ease the traffic. The entrance of the medical school which belongs to the main road, Chuanshan Avenue, where setting up stalls is not allowed  either. If there are stalls set up illegally, they will be punished according to the law. But it is strongly prohibited to acquiesce in setting up stalls by charging a certain amount of money per month, for it turns out to fine instead of administration. In the last six battles, each district has made it clear to abolish all forms of charging at booths. Don’t have to bother about those charges with no charging basis, permits and invoice.

    V. The city administration and civilized law enforcement should be more ingeniously combined.

    The ultimate purpose of city administration is to serve the public. The law enforcement should be conducted in a civilized manner according to the law, requiring not only to maintain the amenity and order of this city, to take care of the interests of vulnerable groups. The people violating city administration law will be persuaded rationally and the law enforcement methods will be applied, namely educating first and no punishment for the first time violation, instead of confiscation and damaging.

    VI. Citizens can help supervise the sanitation workers on burning trash.

    The phenomenon of burning garbage can be found in our investigation work too. Therefore, we have printed the Standard of  Sanitation Operation and issued a notice--- no burning of garbage, and delivered these to each sanitation worker. And specialized training has been completed which clearly prohibits burning garbage and sweeping the garbage into green belt. With specially-assigned person responsible for inspecting, once there is a violation, it will be punished right away. With high mobility of sanitation workers, it is quite difficult to put an end to the phenomenon of burning garbage. Citizens can give assistance to supervise. As long as there is a report, we will rush to the scene to stop this behavior within 15 minutes.

    VII. The situation of withered green belts by the roadside will be improved.

    Since last year, the quality of urban greening has been improved with many newly planted seedlings. According to the  contract of greening construction, the construction side have to be responsible for the survival of these seedlings, and it cannot be checked and approved until all the dead are replaced by the survived seedlings. The green belt on the way to Chejiang was planted by the unified organization of municipal government in the project--- greening at “three sides”  (roadside, water side, railroad side) in last year. Last year met a once-in-a-century drought, which made the trees along the highway dry out and die. The construction side is responsible for the maintenance within a year, and now the deadline has not yet come and the project has not been checked and approved. There is a special leading group from the city in charge of this matter.

    VIII. The sediment management will be standardized.

    Sediment management is one of the items on which the city government put special emphasis. We will take a series of measures to make effective breakthroughs: First, before the end of March this year, the work of registering sediment vehicles will be basically completed. And from April, any unlicensed sediment transporting vehicles will not be allowed to run in the city, which has been conducted by the city traffic police detachment. The second is to install GPS in the sediment transporting vehicles and video surveillance system at the sediment sites, linking the management of the sediment transporting vehicles with the digital platform of city administration and incorporated it into the monitoring range of digital city management. Third, implement franchise management on sediment transportation. Vehicles from non-professional sediment transportation companies are not expected to get licenses of sediment vehicles and permissions for sediment transportation. Fourth, build washing platforms at construction sites, with unified standards and standardized management, to ensure the car washing. Fifth, the law enforcement efforts should be made more on sediment management, providing guarantee for the smooth implementation of the above works, at the meantime, strengthening the management of sediment holding venue, to avoid a secondary pollution.

    IX. The auction about the right of use of outdoor advertising space will be standardized.

    The auction about the right of use of outdoor advertising space is organized by the municipal government which has been held in 2003 and 2009. At present, we are preparing the third auction of outdoor advertising space. The specific procedures are as follows: The administrative department of urban and rural planning present a special set of outdoor advertising plan, to be discussed and adopted by the City Planning Commission, and then the auction will be organized by municipal government and the relevant departments. Last year, the major punishment for the illegal ads space using was to remove them. And this year, this work will be strengthened. Industrial and commercial buildings at the city center, Fuan Building and buildings around Hengyang Railway Station will be included in the scope of key remediation. In accordance with the government's request, after the removal of a large number of illegal advertisement, we will proceed with the norms and quality improvement of outdoor advertising, promoting the use of LED panels, trivision and other high-tech advertising media. The Industrial and Commercial Department is responsible for the audit of advertising lines and logos. We will cooperate with the departments concerned, and introduce the specialized outdoor advertising regulatory measures, to make preparations for the third auction of outdoor advertising space.

    X. The classified collection and transportation of food wastes will be conducted.

    Currently, the city's food waste is disposed with solid waste in city life. This year, we will continue to increase the construction and investment of sanitation infrastructure. Recycling and safe disposal center of kitchen waste is under construction and the kitchen waste will soon achieve classified collection and transportation. To protect the ecological environment and develop new energy sources, we are carrying out closure transformation of Ji Xing landfill and ecological restoration projects. The project, garbage incineration for electricity generation, will also be started within this year.

　CHAPTER I GENERAL PROVISIONS

　Article 1. This Law is formulated in order to suit the development of the planned socialist commodity economy and the needs of the reform of the economic structure, to promote the autonomous operation of enterprises owned by the whole people, to strengthen the economic responsibility system and democratic management, to improve the state of operations, to increase economic efficiency and to protect the lawful rights and interests of creditors and debtors.

　Article 2. This Law applies to enterprises owned by the whole people.

　Article 3. Enterprises which, owing to poor operations and management that result in serious losses, are unable to repay debts that are due shall be declared bankrupt in accordance with the provisions of this Law.
　Enterprises for which creditors file for bankruptcy shall not be declared bankrupt under any of the following circumstances:
　(1) public utility enterprises and enterprises that have an important relationship to the national economy and the people's livelihood, for which the relevant government departments grant subsidies or adopt other measures to assist the repayment of debts;
　(2) enterprises that have obtained guarantees for the repayment of debts within six months from the date of the application for bankruptcy.
　With respect to enterprises for which creditors file for bankruptcy, bankruptcy proceedings shall be suspended against those for which the superior departments in charge have applied for reorganization, and if the enterprise and the creditors have reached a settlement agreement through consultation.

　Article 4. The state through various means shall appropriately arrange for the reemployment of the staff and workers of bankrupt enterprises, and shall guarantee their basic living needs prior to reemployment; specific measures shall be separately stipulated by the State Council.

　Article 5. Bankruptcy cases shall be under the jurisdiction of the people's courts in the location of the debtor.

　Article 6. Where this Law has not stipulated the procedures for bankruptcy cases, the legal provisions for civil procedures shall apply.

　CHAPTER II THE SUBMISSION AND ACCEPTANCE OF BANKRUPTCY APPLICATIONS
　Article 7. Where the debtor is unable to repay debts that are due, the creditors may file to declare the debtor bankrupt.
　When the creditor is submitting the bankruptcy application, it should provide relevant evidence relating to the amount of the claim, whether or not it is secured with property, and to the inability of the debtor to repay debts that are due.

    Article 8. The debtor, upon the agreement of its superior departments in charge, may apply for the declaration of bankruptcy.
When the debtor is submitting the bankruptcy application, it shall explain the circumstances of the enterprise's losses and deliver relevant accounting statements, a detailed list of debts and a detailed list of claims.

　Article 9. After the people's court has accepted a bankruptcy case, it shall notify the debtor within ten days and make a public announcement. Within ten days after receiving the detailed list of debts delivered by the debtor, the people's court shall notify known creditors. The public announcement and notice shall stipulate the date of the first convening of the creditors' meeting.
　Creditors who have been notified shall, within one month after receiving the notice, and creditors who have not been notified shall, within three months after the date of the public announcement, report their claims to the people's court and explain the amount of the claims, as well as whether or not they are secured with property, and also deliver relevant materials of proof. Creditors who do not report their claims during these periods shall be deemed to have automatically abandoned their claims.
　The people's court shall register separately claims that are secured with property and claims that are not secured with property.

　Article 10. Where creditors have made the bankruptcy application, the debtor shall, within 15 days after receiving the notice of the people's court, deliver to the people's court the relevant materials described in the second paragraph of Article 8 of this Law.
　If the debtor is a guarantor for another unit, it shall, within five days after receiving the notice of the people's court, in turn notify the relevant parties.

　Article 11. After the people's court has accepted a bankruptcy case, other civil enforcement proceedings against the property of the debtor must be suspended.

　Article 12. After the people's court has accepted a bankruptcy case, payment by the debtor to only some of the creditors is null and void, with the exception of payments required for the normal production and operations of the debtor.

　CHAPTER III CREDITORS' MEETINGS

　Article 13. All creditors are members of the creditors' meeting. Members of the creditors' meeting enjoy the right to vote, provided, however, that creditors with claims secured with property which have not abandoned their priority right to be repaid are excepted. Guarantors of the debtor, after having repaid debts on behalf of the debtor, may be deemed creditors, and enjoy the right to vote.
　The chairman of the creditors meeting is designated by the people's court from among the creditors with the right to vote.
　The legal representative of the debtor must attend the creditors' meetings and answer the creditors inquiries.

　Article 14. The first creditors' meeting is called by the people's court, and shall be convened within 15 days after the expiration of the period for reporting claims. Subsequent creditors' meetings are convened at such times as the people's court or the chairman of the meeting deems them necessary, and may also be convened on the request of the liquidation committee or of creditors whose claims comprise more than one fourth of the total amount of claims not secured with property.

　Article 15. The functions and powers of the creditors' meeting are:
　(1) to examine materials of proof relating to the claims, and to confirm the amount of such claims and whether or not the claims are secured with property;
　(2) to discuss and adopt a draft settlement agreement; and
　(3) to discuss and adopt a plan for the disposition and distribution of bankruptcy property.

　Article 16. Resolutions of the creditors meeting are adopted by a majority of creditors with the right to vote present at the meeting; the amount of their claims must comprise more than half of the total amount of claims that are not secured with property, however, with respect to a resolution adopting a draft settlement agreement, such amount must comprise more than two thirds of the total amount of claims not secured with property.
　Resolutions of the creditors' meeting shall have binding force on all the creditors.
　Creditors who consider the resolutions of the creditors' meeting to be contrary to the provisions of law may, within seven days after the creditors' meeting has made such resolutions, apply to the people's court for judgment.

　CHAPTER IV SETTLEMENT AND REORGANIZATION

　Article 17. With respect to enterprises for which the creditors apply for bankruptcy, the superior departments in charge of the enterprise that is the subject of the bankruptcy application may, within three months after the people's court has accepted the case, apply to carry out reorganization of the enterprise; the period of reorganization shall not exceed two years.

　Article 18. After an application for reorganization is submitted, the enterprise shall propose a draft settlement agreement to the creditors' meeting.
　The settlement agreement shall stipulate the period in which the enterprise shall repay the debts.

　Article 19. After the enterprise and creditors' meeting have reached a settlement agreement which has been recognized by the people's court, the people's court shall make a public announcement and suspend the bankruptcy proceedings. The settlement agreement shall have legal effect from the date of the public announcement.

　Article 20. The reorganization of the enterprise shall be supervised by its superior departments in charge.
　The reorganization plan of the enterprise shall be discussed by the congress of the staff and workers of the enterprise. The circumstances of the reorganization of the enterprise shall be reported to the congress of the staff and workers of the enterprise and its opinion shall be heeded.
　The circumstances of the reorganization of the enterprise shall be periodically reported to the creditors' meeting.

　Article 21. During the period of reorganization, an enterprise in any of the following circumstances shall, upon judgment of the people's court, terminate reorganization and declare its bankruptcy:
　(1) not implementing the settlement agreement;
　(2) continued worsening in its financial condition, for which reason the creditors' meeting has applied for the termination of reorganization; and
　(3) committing any of the acts listed in Article 35 of this Law and seriously harming the interests of creditors.

　Article 22. With respect to an enterprise that has undergone reorganization and is able to repay debts in accordance with the settlement agreement, the people's court shall terminate the bankruptcy proceedings for such enterprise, and also make a public announcement thereof.
　With respect to an enterprise that, on the expiration of the period of reorganization, is unable to repay debts in accordance with the settlement agreement, the people's court shall declare such enterprise bankrupt, and shall re-register the claims in accordance with the provisions of Article 9 of this Law.

　CHAPTER V BANKRUPTCY DECLARATIONS AND BANKRUPTCY LIQUIDATIONS

　Article 23. In any of the following circumstances, after the judgment of the people's court, an enterprise shall be declared bankrupt:
　(1) if, in accordance with the provisions of Article 3 of this Law should be declared bankrupt;
　(2) if, reorganization has been terminated in accordance with the provisions of Article 21 of this Law; and
　(3) if, upon the expiration of the period of reorganization, is unable to repay debts in accordance with the settlement agreement.

　Article 24. The people's court shall, within 15 days after the date the enterprise is declared bankrupt, establish a liquidation team to take over the bankrupt enterprise. The liquidation team shall be responsible for the keeping, putting into order, appraisal, disposition and distribution of the bankruptcy property. The liquidation team may carry out necessary civil actions in accordance with law.
　The members of the liquidation team shall be designated by the people's court from among the superior departments in charge, government finance departments, and other relevant departments and professional personnel. The liquidation team may hire necessary work personnel.
　The liquidation team is responsible to, and shall make report on its work to, the people's court.

　Article 25. No unit or individual may illegally dispose of the property, account books, documents, materials, seals, etc. of a bankrupt enterprise.
　The debtors of a bankrupt enterprise and persons holding the property of a bankrupt enterprise can repay debts or deliver property only to the liquidation team.

　Article 26. The liquidation team may decide to terminate or to continue to perform the contracts that have not yet been performed by the bankrupt enterprise.
　If the liquidation team decides to terminate a contract, and the other party to the contract suffers harm as the result of the termination of the contract, the amount of compensation for the harm constitutes a bankruptcy claim.

　Article 27. Before the legal representative of the bankrupt enterprise has handled the procedures for transfer to the liquidation team, he shall be responsible for the keeping of the property, account books, documents, materials, seals, etc. of such enterprise.
　Before the conclusion of the bankruptcy proceedings, the legal representative of the bankrupt enterprise shall carry out work according to the requirements of the people's court or the liquidation team, and may not leave his position without authorization.

　Article 28. Bankruptcy property comprises the following property:
　(1) all property that the bankrupt enterprise operated and managed at the time bankruptcy was declared;
　(2) property obtained by the bankrupt enterprise during the period from the declaration of bankruptcy until the conclusion of the bankruptcy proceedings; and
　(3) other property rights that the bankrupt enterprise should exercise.
　Property that already constitutes security collateral is not bankruptcy property; the portion of the value of the security collateral exceeding the amount of the debt that it secures is bankruptcy property.

　Article 29. Property in the bankrupt enterprise that belongs to other persons shall be retrieved by the persons with the right to such property through the means of the liquidation team.
　Article 30. Claims not secured with property and claims secured with property for which the priority right to receive repayment has been abandoned, which are established before bankruptcy is declared, are bankruptcy claims.
　The expenses of creditors for participating in the bankruptcy proceedings may not constitute bankruptcy claims.

　Article 31. Claims that are not due when bankruptcy is declared shall be deemed to be claims that have already become due, provided, however, that the interest that is not yet due shall be deducted.

　Article 32. With respect to claims secured with property that are established before bankruptcy is declared, the creditors enjoy the right to receive repayment with priority with respect to such security.
　With respect to claims that are secured with property whose amount exceeds the value of the security collateral, the part that is not repaid constitutes a bankruptcy claim, and will be repaid in accordance with the bankruptcy proceedings.

　Article 33. Creditors which owe debts to the bankrupt enterprise may offset them before the bankruptcy liquidation.

　Article 34. Priority shall be given to saving the following bankruptcy expenses from the bankruptcy property:
　(1) the expenses needed for the management, sale and distribution of the bankruptcy property, including the expenses of hiring work personnel;
　(2) the litigation expenses of the bankruptcy case; and
　(3) other expenses paid in the course of bankruptcy proceedings for the common interest of the creditors.
　With respect to enterprises whose bankruptcy property is insufficient to cover bankruptcy expenses, the people's court should declare termination of bankruptcy proceedings.

　Article 35. During the period from six months before the people's court accepts the bankruptcy cases until the date that bankruptcy is declared, the following actions of a bankrupt enterprise are null and void:
　(1) concealment, secret distributions or transfers of property without compensation;
　(2) sale of property at abnormally depressed prices;
　(3) securing with property of claims that originally were not secured by property;
　(4) early repayment of claims that are not yet due; and
　(5) abandonment of the enterprise's own claims.
　With respect to bankrupt enterprises which have committed acts listed in the previous paragraphs, the liquidation team has the right to apply to the people's court to recover the property, which shall be added to the bankruptcy property.

　Article 36. Complete sets of equipment in the bankruptcy property shall be sold as a whole, and that which cannot be sold as a whole may be sold in parts.

　Article 37. The distribution plan for the bankruptcy property shall be proposed by the liquidation team, adopted by the creditors meeting and submitted to the people's court for judgment before implementation.
　After the prior deduction of bankruptcy expenses from the bankruptcy property, repayment shall be made in the following order:
　(1) wages of staff and workers and labour insurance expenses that are owed by the bankrupt enterprise;
　(2) taxes that are owed by the bankrupt enterprise; and
　(3) bankruptcy claims.
　Where the bankruptcy property is insufficient to repay all the repayment needs within a single order of priority, it shall be distributed on a pro-rata basis.

　Article 38. Upon the completion of the distribution of the bankruptcy property, the liquidation team shall apply to the people's court for the conclusion of the bankruptcy proceedings. After the termination of bankruptcy proceedings, claims that have not been repaid shall no longer be repaid.

　Article 39. After the conclusion of the bankruptcy proceedings,the liquidation team shall handle the procedures for the cancellation of registration at the original registration authorities of the bankrupt enterprise.

　Article 40. With respect to bankrupt enterprises that are discovered within one year after the date of the conclusion of the bankruptcy proceedings to have committed any of the acts listed in Article 35 of this Law, the people's court shall recover the property and order repayment in accordance with Article 37 of this Law.
　
　Article 41. With respect to bankrupt enterprises that have committed any of the acts listed in Article 35 of this Law, the legal representative and the directly responsible personnel of the bankrupt enterprise shall be subject to administrative sanctions; where the acts of the legal representative and the directly responsible personnel of the bankrupt enterprise constitute crimes, criminal responsibility shall be investigated in accordance with the law.

　Article 42. After an enterprise is declared bankrupt, the government supervisory departments and audit departments are responsible for pinpointing the responsibility for the bankruptcy of the enterprise.
　Where the legal representative of the bankrupt enterprise bears the major responsibility for the bankruptcy of the enterprise, administrative sanctions shall be applied.
　Where the superior departments in charge of the bankrupt enterprise bear the major responsibility for the bankruptcy of the enterprise, administrative sanctions shall be applied to the leaders of such superior departments in charge.
　　With respect to the legal representative of the bankrupt enterprise and the leaders of superior departments in charge of bankrupt enterprise who, due to neglect of duty, cause the bankruptcy of the enterprise that result in the major loss of state property, criminal responsibility shall be investigated in accordance with Article 187 of the Criminal Law of the People's Republic of China.

　CHAPTER VI BANKRUPTCY DECLARATIONS AND BANKRUPTCY LIQUIDATIONS

　Article 43. This Law is to be implemented on a trial basis three full months after the Law on Industrial Enterprises with Ownership by the Whole People comes into effect, and the specific plans and steps for the trial implementation shall be stipulated by the State Council.