Regulations on Administration of Printing Industry

(Adopted at the 43rd Executive Meeting of the State Council
on July 26, 2001, promulgated by Decree No.315 of the State Council
of the People’s Republic of China on August 2, 2001, and effective
as of the date of promulgation)

Chapter I General Provisions

Article 1 These Regulations are formulated for
the purpose of strengthening administration of printing industry,
safeguarding the lawful rights and interests of printing operators
and social and public interests, and promoting socialist cultural
and ethical progress and material progress.

Article 2 These Regulations apply to printing
business activities with regard to publications, packaging and
decorating printed matter, and other printed matter.

“Publications” referred to in these Regulations include
newspapers, periodicals, books, maps, Spring Festival paintings,
painted cards, wall calendars, pictorials, and covers of
audiovisual products and electronic publications, etc.

“Packaging and decorating printed matter” referred to in these
Regulations include representations of trade marks, advertising
materials and printed matter such as paper, metal and plastic used
for package and decoration of products.

“Other printed matter” referred to in these Regulations include
documents, data and information material, charts, tickets and
coupons, certificates, name cards, etc.

“Printing business activities” referred to in these Regulations
mean business activities such as typesetting, platemaking,
printing, binding, reprography, photomechanical printing and
typing.

Article 3 Printing operators must abide by the
relevant laws, administrative regulations and rules, and pay
attention to social benefits.

It is prohibited to print publications, packaging and decoration
printed matter, or other printed matter that contain reactionary,
obscene or superstitious contents or other contents explicitly
prohibited by the State.

Article 4 The publication administration
department of the State Council takes charge of the supervision and
administration of printing industry throughout the country. The
administrative department responsible for the administration of
publication under the local people’s government at or above the
county level (hereinafter referred to as the publication
administration department) is responsible for the supervision and
administration of printing industry within its own administrative
region.

The department of public security, the department for industry
and commerce administration and other relevant departments of the
people’s government at or above the county level are responsible
for the supervision and administration with regard to printing
industry within their respective functions and duties.

Article 5 A printing
operator shall establish and improve such systems as the system of
verification of print undertaking, the system of registration of
print undertaking, the system of storage of printed matter, the
system of delivery of printed matter, and the system of destruction
of defective products and substandard products, etc. The specific
measures shall be formulated by the publication administration
department of the State Council jointly with the public security
department of the State Council.

When finding any illegal or criminal act in printing business
activities, a printing operator shall promptly report to the public
security department or the publication administration
department.

Article 6 Social organizations of the printing
industry shall, under the guidance of the publication
administration department, carry out self-regulated management in
accordance with their articles of association.

Chapter II Establishment of Printing
Enterprises

Article 7 The State implements a system of
licensing printing businesses. No unit or individual may engage in
printing business without acquiring a permit for printing business
according to these Regulations.

Article 8 The following conditions shall be met
in establishing a printing enterprise:

(1) possession of a name of the enterprise and its articles of
association;

(2) possession of a well-defined scope of business;

(3) possession of production and business premises that can meet
the needs of its scope of business, and of necessary capital,
equipment and other production and business conditions as well;

(4) possession of the organizational structure and staff that
can meet the needs of its scope of business; and

(5) other conditions stipulated by the relevant laws and
administrative regulations.

In addition to the provisions stipulated in the preceding
paragraph, the approval of the establishment of a printing
enterprise shall also conform to the planning of the State for the
total number, structure and distribution of printing
enterprises.

Article 9 Where a printing enterprise that
engages in printing business activities with regard to
publications, packaging and decorating printed matter and other
printed matter is to be established, an application shall be made
to the local publication administration department of the people’s
government of the province, autonomous region or municipality
directly under the Central Government; where an enterprise that
solely engages in printing name cards is to be established, an
application shall be made to the local publication administration
department of the people’s government at the county level. Upon
examination and approval, the applicant shall obtain a permit for
printing business; on the basis of this permit, the applicant shall
apply to the public security department in accordance with the
relevant provisions of the States and, upon verification and
approval, obtain a special industry permit; on the basis of the
permit for printing business and the special industry permit, the
applicant shall apply to the department for industry and commerce
administration for registration and obtain a business license.

No individual may engage in any printing business activities
with regard to publications and packaging and decorating printed
matter; any individual who intends to engage in the printing
business activity of other printed matter go through the
examination and approval formalities according to the provisions of
the preceding paragraph.

Article 10 The publication administration
department that undertakes an application for establishing an
enterprise engaging in printing business activities shall, within
60 days from the date of receipt of the application, make a
decision of approval or disapproval. If the application for the
establishment is approved, a printing permit shall be granted to
the applicant; if the application for the establishment is not
disapproved, the publication administration department shall notify
the applicant and give the reasons.

A printing permit shall indicate the category of the printing
business activity in which a printing enterprise engages.

A printing permit shall not be sold, rent, lend or assigned in
other manners.

Article 11 Where a printing operator applies
for a concurrent business or to make a change to the printing
business activities with regard to publications, packaging and
decorating printed matter or other printed matter, or to
incorporate other printing operators, or to establish a new
printing operator as a result of merger or division, formalities
shall be gone through according to the provisions of Article 9 of
these Regulations.

Where a change is to be made to any main registration item such
as the name, legal representative or responsible person, domicile
or premise, or the printing business activities are to be
terminated, the printing operator shall have the change or
cancellation registered with the public security department and the
department for industry and commerce administration that made the
original registration, and shall report for the record to the
publication administration department that originally approved the
establishment.

Article 12 The State allows the establishment
of Chinese-foreign equity joint ventures and Chinese-foreign
contractual joint ventures that engage in printing business,
foreign capital enterprises that engage in printing business
activities with regard to packaging and decorating printed matter
are also allowed. The specific measures shall be formulated by the
publication administration department of the State Council jointly
with the competent department of foreign economic relations and
trade of the State Council.

Article 13 A unit that
intends to establish an internal printing factory (shop) shall go
through registration formalities with the publication
administration department of the local people’s government at or
above the county level of the place where it is located, and shall
apply to the public security department for the record according to
the relevant provisions of the State; if an internal printing
factory (shop) established by a unit involves printing of printed
matter of State secrets, it shall also go through registration
formalities with the secret-guarding department.

An internal printing factory (shop) established by a unit shall
not engage in printing business activities; it shall go through
formalities in accordance with the provisions of this Chapter when
engaging in printing business activities.

Chapter III Printing of Publications

Article 14 The State encourages enterprises
engaged in printing business activities with regard to publications
to print promptly publications that embody the latest best cultural
accomplishments both at home and abroad, and to attach great
importance to the printing of excellent works of traditional
culture and valuable academic writings.

Article 15 Enterprises engaged in printing
business activities with regard to publications shall not print
publications explicitly prohibited by the State or published by
non-publishing units.

Article 16 Where publications are to be
printed, the unit commissioning the printing and the printing
enterprise shall conclude a printing contract in accordance with
the relevant provisions of the State.

Article 17 Where a printing enterprise
undertakes a commission from a publishing unit to print books or
periodicals, it shall verify and keep the letter of commission with
the seal of the publishing unit, and, before the printing begins,
report for the record to the publication administration department
of the people’s government of the province, autonomous region or
municipality directly under the Central Government where the
publishing unit is located; where a printing enterprise undertakes
a commission to print books or periodicals from a publishing unit
outside the province, autonomous region or municipality directly
under the Central Government where it is located, the letter of
commission shall be reported for the record in advance to the
publication administration department of the people’s government of
the province, autonomous region or municipality directly under the
Central Government where the printing enterprise is located. The
format of the letter of commission shall be unified by the
publication administration department of the State Council and be
printed unitarily by the publication administration department of
the people’s government of the province, autonomous region or
municipality directly under the Central Government.

Where a printing enterprise undertakes a commission from a
publishing unit to print newspapers, it shall verify the newspaper
publication license; where it undertakes a commission from a
publishing unit to print a supplement to a newspaper or periodical,
it shall also verify the documents issued by the competent
publication administration department to approve the publication of
the supplement.

Article 18 Where a printing enterprise
undertakes a commission to print publications of internal
information, it shall verify the printing permit issued by the
publication administration department of the people’s government at
or above the county level.

Where a printing enterprise undertakes a commission to print
publications of internal information with religious contents, it
shall verify the documents of approval issued by the religious
affairs administration department of the people’s government of the
province, autonomous region or municipality directly under the
Central Government and the printing permit issued by the
publication administration department of the people’s government of
the province, autonomous region or municipality directly under the
Central Government.

The publication administration department shall decide whether
to issue the printing permit or not within 30 days from the date of
receipt of the application for printing publications of internal
information or publications of internal information with religion
contents, and notify the applicant; if the publication
administration department makes no decision within the time limit,
its consent shall be deemed to have been given.

Article 19 Where a printing enterprise
undertakes a commission to print overseas publications, it shall,
on the basis of legal certifying documents relating to copyright,
acquire approval from the publication administration department of
the people’s government of the province, autonomous region or
municipality directly under the Central Government; such printed
publications shall all be transported overseas and shall not be
issued and distributed within the territory.

Article 20 The unit commissioning printing
must, in accordance with the relevant provisions of the State,
indicate on the publications printed under commission the name and
address of the publishing unit, book number, periodical number or
edition number, date of publication or number of issue, the actual
name and address of the enterprise that undertakes the commission
to print publications, and other relevant items.

A printing enterprise shall, within two years from the date of
accomplishment of the printing of a publication, keep a sample of
the publication printed under commission for checking.

Article 21 A printing
enterprise shall not pirate publications, shall not sell, print
more than the commissioned amount or print for a third party the
publications printed under commission, and shall not sell, rent,
lend or in any other manner transfer to any other unit or
individual the paper matrixes or printing negatives of the
publications printed under commission.

Article 22 A printing
enterprise shall not solicit orders for or sell publications, and
shall not counterfeit or usurp the name of other persons to print
or sell publications.

Chapter IV Printing of Packaging and Decorating Printed
Matter

Article 23 An enterprise engaged in printing
business activities with regard to packaging and decorating printed
matter shall not print counterfeit or forged representations of
registered trade marks, and shall not print advertising materials
or printed matter used to package or decorate a product by which
consumers may be easily misled.

Article 24 Where a printing enterprise
undertakes a commission to print the representation of a registered
trade mark, it shall verify the copy of the Trade Mark Registration
Certificate with the seal of the department for industry and
commerce administration at the county level in the place where the
trade mark registrant is located, and check the drawing of the
registered trade mark provided by the commissioning party; where a
printing enterprise undertakes a commission from the licensee of a
registered trade mark to print the representation of the registered
trade mark, it shall also verify the licensing contract of the
registered trade mark. The printing enterprise shall keep for two
years the copy of the Trade Mark Registration Certificate with the
seal of the department for industry and commerce administration,
the drawing of the registered trade mark and the copy of the
licensing contract of the registered trademark for examination and
verification.

Where the State has separate provisions on the printing of the
representation of registered trade mark, printing enterprises shall
also comply with these provisions.

Article 25 Where a printing enterprise
undertakes a commission to print advertising materials or printed
matter used to package or decorate a product, it shall verify the
business license of the unit or the resident identity card of the
individual commissioning the printing; where a printing enterprise
undertakes a commission from an advertising operator to print
advertising materials, it shall also verify the advertising
qualifications certificate.

Article 26 Where a printing enterprise
undertakes a commission to print packaging and decorating printed
matter, it shall deliver all the finished products, semi-finished
products, waste products and printing plates, paper matrixes,
negatives and original manuscripts to the unit or individual
commissioning the printing, and shall not retain any of them
without permission.

Article 27 Where a printing enterprise
undertakes a commission to print overseas packaging and decorating
printed matter, it shall, before the printing begins, report for
the record to the publication administration department of the
people’s government of the province, autonomous region or
municipality directly under the Central Government where it is
located; such printed packaging and decorating printed matter shall
all be transported overseas and shall not be sold within the
territory.

Chapter V Printing of Other Printed Matter

Article 28 Printing of documents, materials,
charts, tables and other matter on which categories of secrecy are
marked shall be in compliance with the provisions of the relevant
laws, regulations or rules of the State.

Article 29 For printing public notices,
circulars, staff identity cards or passes for major activities, or
coupons circulated for use in the society, the unit commissioning
the printing shall present the certification issued by its
competent department, and, in accordance with the relevant
provisions of the State, go through formalities for approval of
printing at the public security department of the place where the
printing enterprise is located and the printing shall be conducted
by a printing enterprise designated by the public security
department. The printing enterprise designated by the public
security department shall verify the certification issued by the
competent department and the printing-approval certification issued
by the public security department and keep for two years the copy
of the certification issued by the competent department and the
copy of the printing-approval certification issued by the public
security department for examination and verification, and shall not
further commission other persons to print the above-mentioned
printed matter.

For printing valuable or non-value coupons to be used internally
within an agency, a social organization, a military unit, an
enterprise or an institution, or for printing special printed
matter such as introduction letters, employee cards, membership
cards, passes, academic degree certificates, educational
qualification certificates or other academic certificates bearing
the name of a unit, the unit commissioning the printing shall
present a printing commission certification. The printing
enterprise shall verify the certification.

The enterprise undertaking the printing shall not retain any
sample copy or specimen page of the printed matter referred to in
the preceding two paragraphs; where it is necessary indeed to
retain the sample copy or specimen page for professional reference
purposes, consent shall be obtained from the unit commissioning the
printing and the retained printed matter shall be stamped with
“sample copy “or “specimen page”, and be properly preserved and
shall not be lost.

Article 30 Where a printing enterprise
undertakes a commission to print religious articles, it shall
verify the documents of approval issued by the religious affairs
administration department of the people’s government of the
province, autonomous region or municipality directly under the
Central Government, and the printing permit issued by the
publication administration department of the people’s government of
the province, autonomous region or municipality directly under the
Central Government; the publication administration department of
the people’s government of the province, autonomous region or
municipality directly under the Central Government shall decide
whether to issue the printing permit or not within 10 days from the
date of receipt of the application for printing the religious
articles and notify the applicant; if the publication
administration department makes no decision within the time limit,
it shall be deemed to have given its consent.

Article 31 An individual engaged in printing
business activities with regard to other printed matter shall not
print documents, materials, charts, tables or other printed matter
on which categories of secrecy are marked, shall not print public
notices, circulars, staff identity cards or passes for major
activities, or coupons circulated for use in the society, shall not
print valuable or non-value coupons to be used internally within an
agency, a social organization, a military unit, an enterprise or an
institution, shall not print special printed matter such as
introduction letters, employee cards, membership cards, passes,
academic degree certificates, educational qualification
certificates or other academic certificates bearing the name of a
unit, and shall not print religious articles.

Article 32 Where a printing enterprise
undertakes a commission to print other printed matter from
overseas, it shall, before the printing begins, report for the
record to the publication administration department of the people’s
government of the province, autonomous region or municipality
directly under the Central Government where it is located; such
other printed matter shall all be transported overseas and shall
not be sold within the territory.

Article 33 A printing
enterprise and an individual engaged in printing business
activities with regard to other printed matter shall not pirate
other persons’ other printed matter, shall not sell, print more
than the commissioned amount or print for a third party the other
printed matter printed under commission, and shall not sell, rent,
lend, or in any other manner transfer to any other unit or
individual the paper matrixes or printing negatives of the other
printed matter printed under commission from a publishing
unit.

Chapter VI Penalty Provisions

Article 34 Anyone who, in violation of the
provisions of these Regulations, establishes a printing enterprise
without authorization or engages in printing business activities
without authorization shall be banned by the public security
department and the department for industry and commerce
administration according to their statutory functions and powers;
the printed matter, illegal income and the devices and equipment
specially used for the purpose of the illegal activities shall be
confiscated; if the amount of the illegal operations is not less
than 10,000 yuan, a fine of not less than five times but not more
than 10 times the amount of the illegal operations shall be
concurrently imposed; if the amount of the illegal operations is
less than 10,000 yuan, a fine of not less than 10,000 yuan but not
more than 50,000 yuan shall be concurrently imposed; if the act
constitutes a crime, the criminal liability shall be investigated
according to law.

Where an internal printing factory(shop) established by a unit
engages in printing business activities without going through the
formalities provided for in Chapter II of these Regulations, it
shall be punished according to the provisions of the preceding
paragraph.

Article 35 Where, in violation of the
provisions of these Regulations, a printing operator commits any
one of the following acts, the publication administration
department of the people’s government at or above the county level
shall order him to stop illegal activities, and suspend the
business for rectification, confiscate the printed matter and
illegal income, and concurrently impose a fine of not less than
five times but not more than ten times the amount of the illegal
operations if the amount of the illegal operations is not less
10,000 yuan; if the amount of the illegal operations is less than
10,000 yuan, a fine of not less than 10,000 yuan but not more than
50,000 yuan shall be concurrently imposed; if the circumstances are
serious, the permit shall be revoked by the original issuing
department; if the act constitutes a crime, the criminal liability
shall be investigated according to law.

(1) without acquiring the permit issued by the publication
administration department, operating a concurrent business or
making a change to the printing business activities with regard to
publications, packaging and decorating printed matter or other
printed matter, or incorporating other printing operators;

(2) establishing a new printing operator as a result of merger
or division without going through the formalities according to the
provisions of these Regulations; or

(3) selling, renting, lending the printing business license or
assigning it in other manners.

Article 36 Where a printing operator prints
publications, packaging and decorating printed matter or other
printed matter which, it or he knows clearly or ought to know,
contain the contents prohibited by the provisions of Article 3 of
these Regulations, or prints publications explicitly prohibited by
the State or published by non-publishing units, the publication
administration department and public security department of the
people’s government at or above the county level shall order to
suspend business for rectification according to their statutory
functions and powers, confiscate the printed matter and illegal
income, and concurrently impose a fine of not less than five times
but not more than ten times the amount of the illegal operations if
the amount of the illegal operations is not less than 10,000 yuan;
if the amount of the illegal operations is less than 10,000 yuan, a
fine of not less than 10,000 yuan but not more than 50,000 yuan
shall be concurrently imposed; if the circumstances are serious,
the permit shall be revoked by the original issuing department; if
the act constitutes a crime, the criminal liability shall be
investigated according to law.

Article 37 Any printing operator, if committing
any one of the following acts, shall be ordered to make corrections
and given a warning by the publication administration department
and the public security department of the people’s government at or
above the county level; if the circumstances are serious, it or he
shall be ordered to suspend business for rectification or its or
his permit shall be revoked by the original issuing department:

(1) failure to establish the systems such as the system of
verification of print undertaking, the system of registration of
print undertaking, the system of storage of printed matter, the
system of delivery of printed matter;

(2) failure to report promptly to the public security department
or publication administration department illegal or criminal acts
found in printing business activities;

(3) failure to report for the record to the publication
administration department that originally approves the
establishment where a change is to be made to any main registration
item such as the name, legal representative or responsible person,
domicile or premise, or the printing business activities are to be
terminated;

(4) failure to keep the documents for examination and
verification according to the provisions of these Regulation.

Where, in violation of the provisions of these Regulations, an
internal printing factory (shop) is established by a unit without
going through registration formalities with the publication
administration department and the secret-guarding department of the
local people’s government at or above the county level of the place
where it is located, and without reporting for the record to the
public security department in accordance with the relevant
provisions of the State, the publication administration department,
the secret-guarding department and the public security department
of the local people’s government at or above the county level
shall, according to their statutory functions and powers, order to
make corrections and give a warning; where the circumstances are
serious, the business shall be suspended for rectification.

Article 38 Any enterprise engaged in printing
business activities with regard to publications, if committing any
one of the following acts, shall be given a warning and have the
illegal income confiscated by the publication administration
department of the local people’s government at or above the county
level; if the amount of the illegal operations is not less than
10,000 yuan, a fine of not less than five times but not more than
ten times the amount of the illegal operations shall be
concurrently imposed; if the amount of the illegal operations is
less than 10,000 yuan, a fine of not less than 10,000 yuan but not
more than 50,000 yuan shall be concurrently imposed; if the
circumstances are serious, it or he shall be ordered to suspend
business for rectification or its or his permit shall be revoked by
the original issuing department; if the act constitutes a crime,
criminal liability shall be investigated according to law:

(1) undertaking a commission from another person to print
publications without verifying the letter of commission, relevant
certification or printing permit according to the provisions of
these Regulations, or without reporting for the record the letter
of commission to the publication administration;

(2) counterfeiting or usurping the name of other person to print
publications;

(3) pirating publications of other person;

(4) illegally printing more than the commissioned amount or
selling publications printed under commission;

(5) soliciting orders for or selling publications;

(6) renting, lending, selling or transferring in any other
manner to other person without authorization the paper matrixes and
printing negatives of publications printed under commission of a
publishing unit; or

(7) undertaking a commission to print overseas publications
without approval, or failing to transport all such printed
publications overseas.

Article 39 Any enterprise engaged in printing
business activities with regard to packaging and decorating printed
matter, if committing any one of the following acts, shall be given
a warning and have the illegal gains confiscated by the publication
administration department of the local people’s government at or
above the county level; if the amount of the illegal operations is
not less than 10,000 yuan, a fine of not less than five times but
not more than ten times the amount of the illegal operations shall
be concurrently imposed; if the amount of the illegal operations is
less than 10,000 yuan, a fine of not less than 10,000 yuan but not
more than 50,000 yuan shall be concurrently imposed; where the
circumstances are serious, it or he shall be ordered to suspend
business for rectification or its or his permit shall be revoked by
the original issuing department; if the act constitutes a crime,
criminal liability shall be investigated according to law.

(1) undertaking a commission to print the representation of a
registered trade mark without verifying and checking, according to
the provisions of these Regulations, the copy of the Trade Mark
Registration Certificate with the seal of the department for
industry and commerce administration, the drawing of the registered
trade mark or the copy of the licensing contract of the registered
trade mark;

(2) undertaking a commission to print advertising materials or
printed matter used to package or decorate a product without
verifying, according to the provisions of these Regulations, the
business license of the unit or the resident identity card of the
individual commissioning printing, or undertaking a commission from
an advertising operator to print advertising materials without
verifying the advertising qualifications certificate;

(3) pirating packaging and decorating printed matter of other
person; or

(4) undertaking a commission to print overseas packaging and
decorating printed matter without reporting for the record to the
publication administration department according to the provisions
of these Regulations, or failing to transport all printed matter
overseas.

Where a printing enterprise violates the relevant provisions of
the State on the administration of the printing of trade marks or
advertisements when undertaking a commission to print
representations of registered trade marks or advertising materials,
it shall be given a warning and have the printed matter and illegal
income confiscated by the department for industry and commerce
administration; if the amount of the illegal operations is not less
than 10,000 yuan, a fine of not less than five times but not more
than ten times the amount of the illegal operations shall be
concurrently imposed; if the amount of the illegal operations is
less than 10,000 yuan, a fine of not less than 10,000 yuan but not
more than 50,000 yuan shall be concurrently imposed.

Article 40 Any enterprise or individual engaged
in printing business activities with regard to other printed
matter, if committing any on of the following acts, shall be given
a warning and have the printed matter and illegal income
confiscated by publication administration department of the local
people’s government at or above the county level; if the amount of
the illegal operations is not less than 10,000 yuan, a fine of not
less than five times but not more than ten times the amount of the
illegal operations shall be concurrently imposed; if the amount of
the illegal operations is less than 10,000 yuan, a fine of not less
than 10,000 yuan but not more than 50,000 yuan shall be
concurrently imposed; where the circumstances are serious, it or he
shall be ordered to suspend business for rectification or its or
his permit shall be revoked by the original issuing department; if
the act constitutes a crime, criminal liability shall be
investigated according to law.

(1) undertaking a commission to print other printed matter
without verifying relevant certifications according to the
provisions of these Regulations;

(2) further commissioning other person to print the other
printed matter under a commission without authorization;

(3) renting, lending, selling or transferring in any other
manner to other persons the paper matrixes and printing negatives
of other printed matter printed under a commission;

(4) counterfeiting or altering official documents or
certificates of State organs such as academic degree certificates,
educational qualification certificates, etc., or official documents
or certificates of enterprises, institutions or people’s
organizations, or pirating other printed matter of other
person;

(5) illegally printing other printed matter more than the
commissioned amount or selling other printed matter under a
commission;

(6) undertaking an overseas commission to print other printed
matter without reporting for the record to the publication
administration department according to the provisions of these
Regulations, or failing to transporting all such printed matter
overseas;

(7) an individual engaged in printing business activities with
regard to other printed matter exceeding the scope of his
business.

Article 41 Where any of the following acts is
committed, a warning shall be given by the public security
department, and the printed matter and illegal income shall be
confiscated; if the amount of the illegal operations is not less
than 10,000 yuan, a fine of not less than five times but not more
than ten times the amount of the illegal operations shall be
concurrently imposed; if the amount of the illegal operations is
less than 10,000 yuan, a fine of not less than 10,000 yuan but not
more than 50,000 yuan shall be concurrently imposed; where the
circumstances are serious, the business shall be suspended for
rectification or the special industry permit hall be revoked:

(1) printing public notices, circulars, staff identity cards or
passes for major activities, or coupons circulated for use in the
society without verifying the certification issued by the competent
department and the printing permit issued by the public security
department, or further commissioning other persons to print the
above-mentioned printed matter;

(2) printing public notices, circulars, staff identity cards or
passes for major activities, or coupons circulated for use in the
society without being designated by the public security
department;

(3) a printing operator counterfeits or alters official
documents or certificates of State organs such as academic degree
certificates, educational qualification certificates, etc., or
official documents or certificates of enterprises, institutions or
people’s organizations;

For printing public notices, circulars, staff identity cards or
passes for major activities, or coupons circulated for use in the
society, if the unit commissioning the printing fails to acquire
the certification issued by its competent department, or fails to
go through the formalities for approval of printing according to
the provisions of the State with the public security department of
the place where the printing enterprise is located, or fails to
have the printing conducted at a printing enterprise designated by
the public security department, it shall be imposed a fine not less
than 500 yuan but not more than 5,000 yuan by the public security
department of people’s government at or above the county level.

Article 42 Where, in violation of the
provisions of these Regulations, a printing operator commits any
one of the following acts, it or he shall be ordered to make
corrections and given a warning by the publication administration
department of the local people’s government at or above the county
level; where the circumstances are serious, it or he shall be
ordered to suspend business for rectification or its or his permit
shall be revoked by the original issuing department:

(1) an enterprise engaged in printing business activities with
regard to packaging and decorating printed matter retains without
permission the finished products, semi-finished products, waste
products and printing plates, paper matrixes, negatives or original
manuscripts of the packaging and decorating printed matter printed
under commissioned;

(2) an enterprise or individual engaged in printing business
activities with regard to other printed matter retains without
permission the sample copy or specimen page of the other printed
matter; or fails to stamp the retained printed matter with “sample
copy “or “specimen page”.

Article 43 Where a printing operator is imposed
the administrative penalty of revoking of its or his permit, it or
he shall, according to the relevant provisions of the State, have
the change(s) or cancellation registered with the department for
industry and commerce administration; if it or he fails to do so
after expiration of the time limit, its or his business license
shall be revoked by the department for industry and commerce
administration.

Article 44 Where a printing enterprise is
imposed the administrative penalty of revoking of its permit, its
legal representative or responsible person shall not hold the same
post in any printing enterprise within ten years from the date of
revocation of its permit.

Where an individual engaged in printing business activities with
regard to other printed matter is imposed the administrative
penalty of revoking of his permit, he shall not engage himself in
printing business activities within ten years from the date of
revocation of its permit.

Article 45 The administrative punishment
imposed according to the provisions of these Regulations shall, in
accordance with the relevant laws and administrative regulations,
exercise the separation of decision making and fine collecting, and
the fine collected shall all be turned over to the State
Treasury.

Article 46 Where a publication administration
department, a public security department, a department for industry
and commerce administration or any other relevant departments, in
violation of the provisions of these Regulations, approves the
establishment of a printing enterprise that does not meet the
conditions for establishment, or fails to perform its functions and
duties of supervision, or fails to investigate and deal with
illegal acts, thus resulting in serious consequences, the person in
charge who is responsible and the other person who is directly
responsible shall be given a administrative sanction of demotion or
dismissal from office; if a crime is constituted, criminal
liability shall be investigated according to law.

Chapter VII Supplementary Provisions

Article 47 Those printing enterprises
established according to law before the effectiveness of these
Regulations shall renew their Permit for Printing Business with the
publication administration departments within 180 days from the
date of effectiveness of these Regulations.

For issuing permits according to these Regulations, no other
fees shall be charged other than the cost of the permits charged
according to statutory standards.

Article 48 These Regulations shall be effective
as of the date of promulgation. The Regulations on Administration
of Printing Business promulgated by the State Council on March 8,
1997 shall be repealed simultaneously.

(State Council)

Regulations on Administration of Foreign Law Firms’ Representative Offices in China

(Adopted at the 51st Executive Meeting of the State Council
on December 19, 2001, promulgated by the Decree No. 338 of the
State Council of the People’s Republic of China on December 22,
2001, and effective as of January 1, 2002)

Chapter I General Provisions

Article 1 These Regulations are formulated in
accordance with the Law of the People’s Republic of China on
Lawyers for the purposes of regulating the establishment of
representative offices in China by foreign law firms and legal
service activities thereof.

Article 2 These Regulations are applicable to
the establishment of representative offices in China (hereinafter
referred to as “representative offices”) by foreign law firms and
the legal service activities they conduct.

Article 3 Representative offices and their
representatives shall, when conducting legal service activities,
abide by the laws, regulations and rules of China, scrupulously
observe the professional ethics and practice discipline of Chinese
lawyers, and shall not endanger the State security, social and
public interests in China.

Article 4 Representative offices and their
representatives, when conducting legal service activities in
accordance with the provisions of these Regulations, are protected
by Chinese law.

Article 5 Foreign law firms assume civil
liability for the legal service activities conducted by their
representative offices and representatives within the territory of
China.

Chapter II Establishment, Change, and Registration
Cancellation of Representative Offices

Article 6 The establishment of a representative
office in China and the posting of representatives thereto by a
foreign law firm shall be permitted by the judicial administration
department of the State Council.

No foreign law firms, other organizations or individuals may
conduct legal service activities within the territory of China as a
consulting firm or under other names.

Article 7 A foreign
law firm applying to establish a representative office in China and
post representatives thereto shall meet the following
requirements:

(1) it has been in practice lawfully in its home country and
never has been punished for a violation of lawyers’ professional
ethics or practice discipline;

(2) the representatives of the representative office are
practitioner lawyers who are members of the bar or law society of
the country where they obtain the qualifications to practice, have
practiced for not less than two years outside of China, and have
never been punished for a criminal offense or a violation of
lawyers’ professional ethics or practice discipline. The chief
representative of the representative office has practiced for not
less than three years outside of China and is a partner or
equivalent of the said firm.

(3) there is an actual need to establish a representative office
in China to conduct legal service business.

Article 8 A foreign
law firm applying to establish a representative office in China
shall produce the following documents to the judicial
administration department of the people’s government of the
province, autonomous region or municipality directly under the
Central Government where the proposed representative office is to
be located:

(1) an application signed by the principal responsible person of
the said foreign law firm for establishing the representative
office in China and posting representatives thereto. The name of
the proposed representative office shall be “Representative Office
of ______(name of the said law firm translated into Chinese) in
______(name of the Chinese city where the proposed representative
office is to be located)”;

(2) documents certifying that the said law firm has been
lawfully established in its home country;

(3) the partnership agreement or the articles of association of
the said law firm, and a list of its responsible persons and
partners;

(4) the power of attorney issued by the said law firm to the
representatives of the proposed representative office, and a
written statement confirming that the chief representative is a
partner of the said law firm or equivalent;

(5) certificates of the qualifications to practice of each
representative of the proposed representative office, and documents
certifying that the chief representative has practiced law for not
less than three years outside of China and the other
representatives for not less than two years.

(6) documents from the bar or law society of the said law firm’s
home country certifying that the representatives of the proposed
representative office are their members;

(7) documents from the lawyer administration department of the
said law firm’s home country certifying that the said law firm and
the representatives of the proposed representative office have
never been punished for a criminal offense or a violation of
lawyers’ professional ethics or practice discipline.

The documents listed in the preceding paragraph shall be
notarized by a notary institution or a notary in the applicant’s
home country, authenticated by the competent foreign affairs organ
of the applicant’s home country or an organ authorized by it, and
authenticated by the Chinese Embassy or Consulate in such
country.

The documents submitted by the foreign law firm shall have three
copies, and a corresponding Chinese translation shall be attached
to those in a foreign language.

Article 9 The judicial administration
departments of the people’s governments of provinces, autonomous
regions and municipalities directly under the Central Government
shall, within three months from the date of receiving the
application documents, finish the examination of them, and submit
their examination opinions and such application documents to the
judicial administration department of the State Council for
reexamination. The judicial administration department of the State
Council shall make a decision within six months; if the
establishment of the proposed representative office is permitted, a
license to practice shall be issued thereto and certificates to
practice to its representatives; if permission is not granted, the
applicant shall be informed of the reasons in writing.

Article 10 Before conducting the legal service
activities provided for in these Regulations, representative
offices and their representatives shall, on the basis of their
licenses to practice and certificates to practice, register with
the judicial administration department of the people’s government
of the provinces, autonomous regions and municipalities directly
under the Central Government where such representative offices are
located. Representative offices and their representatives shall
register annually.

The judicial administration departments of the people’s
governments of provinces, autonomous regions and municipalities
directly under the Central Government shall handle the registration
applications within two days from the date of receiving them.

Article 11 A
representative office shall, in accordance with relevant laws and
administrative regulations, go through formalities of taxation,
banking and foreign exchange, etc.

Article 12 A foreign
law firm which needs to change the name of its representative
office, or reduce its representatives shall in advance submit an
application signed by its principle responsible person and other
relevant documents to the judicial administration department of the
people’s government of the province, autonomous region or
municipality directly under the Central Government where the said
office is located. Such changes or reduction shall be subject to
the examination and approval of the judicial administration
department of the State Council, and the certificates to practice
of those who do not serve as representatives any longer shall be
withdrawn.

In the case of merger, division or posting of new
representatives, a representative office shall go through the
permission formalities in accordance with the provisions of these
Regulations for the establishment of a representative office.

Article 13 Where a representative of a
representative office falls into one of the following
circumstances, the judicial administration department of the State
Council shall revoke the permission to practice granted to him and
withdraw his certificate to practice, and the judicial
administration department of the people’s government of the
province, autonomous region or municipality directly under the
Central Government shall cancel his registration to practice
accordingly:

(1) his license to practice in his home country has become
void;

(2) being disqualified as a representative by the foreign law
firm he belongs to;

(3) his certificate to practice or the license to practice of
the representative office he belongs to is revoked according to
law.

Article 14 Where a representative office falls
into one of the following circumstances, the judicial
administration department of the State Council shall revoke the
permission to practice granted to it and withdraw its license to
practice; and the judicial administration department of the
people’s government of the province, autonomous region and
municipality directly under the Central Government shall cancel its
registration to practice accordingly:

(1) the foreign law firm it affiliates to has been dissolved or
the registration of which has been canceled;

(2) the foreign law firm it affiliates to applies to cancel its
registration;

(3) it does not meet the requirements set forth in Article 7 of
these Regulations any longer;

(4) its license to practice is revoked according to law.

The representative offices whose registration is cancelled in
accordance with the preceding paragraph shall be liquidated
according to law, and before the repayment of their liabilities,
their property shall not be transferred out of the territory of
China.

Chapter III Business Scope and Practice
Rules

Article 15 A
representative office and its representatives may only conduct the
following activities that does not encompass Chinese legal
affairs:

(1) to provide clients with the consultancy on the legislation
of the country where the lawyers of the law firm are permitted to
engage in lawyer’s professional work, and on international
conventions and international practices;

(2) to handle, when entrusted by clients or Chinese law firms,
legal affairs of the country where the lawyers of the law firm are
permitted to engage in lawyer’s professional work;

(3) to entrust, on behalf of foreign clients, Chinese law firms
to deal with the Chinese legal affairs;

(4) to enter into contracts to maintain long-term entrustment
relations with Chinese law firms for legal affairs;

(5) to provide information on the impact of the Chinese legal
environment.

Representative offices may directly instruct lawyers in the
entrusted Chinese law firms, as agreed between both parties.

A representative office and its representatives shall not
conduct any legal service activities or other for-profit activities
other than those set forth in the first paragraph and the second
paragraph of this Article.

Article 16 A
representative office shall not employ Chinese practitioner
lawyers; its support staff employed shall not provide legal
services to clients.

Article 17 A
representative office and its representatives shall not commit any
of the following acts in their practice:

(1) to provide false evidence, conceal facts, intimidate or
induce another with promise of gain to provide false evidence or
conceal facts, or obstruct the opposing party’s lawful obtaining of
evidence;

(2) to accept money or other things of value from parties by
using the advantage of providing legal services;

(3) to divulge commercial secrets or private matters of
parties.

Article 18 A
representative of a representative office shall not be concurrently
a full-time or part-time representative in two or more
representative offices.

Article 19 Representatives of a representative
office shall be resident in China for not less than 6 months each
year, if the said representatives fail to do so, they will not be
registered in the following year.

Article 20 A
representative office may charge its clients fees when conducting
legal services provided for in these Regulations. The fees
collected must be settled within the territory of
China.

Chapter IV Supervision and Administration

Article 21 The judicial administration
department of the State Council and the judicial administration
departments of the people’s governments of provinces, autonomous
regions and municipalities directly under the Central Government,
in accordance with their duties, are responsible for the
supervision and administration of representative offices and their
representatives.

Article 22 A
representative office shall, before March 31 of each year, submit
to the judicial administration department of the peoples’
government of the province, autonomous region or municipality
directly under the Central Government where it is located for
annual examination a copy of its license to practice and its
representatives’ certificates to practice, and the following
materials of the previous year:

(1) information on their performance of legal services,
including the legal affairs entrusted to Chinese law firms;

(2) its annual financial statement audited by an accounting
firm, and documents certifying that its accounts have been settled
within the territory of China and taxes have been paid according to
law.

(3) information on the change of its representatives and the
employment of Chinese support staff;

(4) information on the residence of its representatives in the
territory of China.

(5) information on the registration of itself and its
representatives.

(6) other information on the performance of the duties provided
for in these Regulations.

The judicial administration departments of the people’s
governments of provinces, autonomous regions and municipalities
directly under the Central Government shall, after finishing the
annual examination of the representative offices that are located
in their respective administrative regions, submit their
examination opinions to the judicial administration department of
the State Council for the record.

Article 23 The judicial administration
departments of the people’s governments of provinces, autonomous
regions and municipalities directly under the Central Government
shall, when collecting fees in registering representative offices
and their representatives or collecting fees in conducting annual
examination of representative offices according to law, strictly
follow the same standards for Chinese law firms and practitioner
lawyers which are verified and determined by the pricing
administration department of the State Council. All fees collected
shall be turned over to the State Treasury.

Where the judicial administration departments of the people’s
governments of provinces, autonomous regions and municipalities
directly under the Central Government impose administrative
punishment of fines according to law, the fine decisions and
collection of such fines shall be separated in accordance with the
provisions of relevant laws and administrative regulations. All
fines collected and illegal income confiscated shall be turned over
to the State Treasury.

Chapter V Legal Liability

Article 24 Any representative office or
representative who endangers China’s State security, public
security or administration of public order, shall be investigated
for criminal liability according to the provisions of the Criminal
Law on crimes of endangering State security, crimes of endangering
public security or crimes of obstructing the administration of
public order, and the license to practice of the representative
office or the certificate to practice of the representative shall
be revoked by the judicial administration department of the State
Council. If the case is not serious enough for criminal punishment,
administrative penalties for public security shall be imposed
according to law, and the license to practice of the representative
office or the certificate to practice of the representative shall
be revoked by the judicial administration department of the State
Council.

Article 25 Any representative office or
representative who, in violation of Article 15 of these
Regulations, illegally conducts legal service activities or other
for-profit activities shall be ordered to suspend its/his business
within a specified time limit by the judicial administration
department of the people’s government of the province, autonomous
region or municipality directly under the Central Government. If
the circumstances are serious, the judicial administration
department of the State Council shall revoke the license to
practice of the representative office or the certificate to
practice of the representative.

The judicial administration department of the people’s
government of the province, autonomous region and municipality
directly under the Central Government shall confiscate the illegal
income of the representative office or the representative who
commits the acts set forth in the preceding paragraph, and impose a
fine of not less than 50,000 yuan but not more than 200,000 yuan
respectively on the chief representative and other representatives
directly responsible.

Article 26 Where a representative office falls
under one of the following circumstances, the judicial
administration department of the people’s government of the
province, autonomous region and the municipality directly under the
Central Government shall give it a warning and order it to make
corrections within a specified time limit; if the circumstances are
serious, the judicial administration department of the people’s
government of the province, autonomous region and the municipality
directly under the Central Government shall order a suspension of
its business within a specified time limit; if the representative
office fails to make corrections within the specified time limit,
the judicial administration department of the State Council shall
revoke its license to practice:

(1) employing Chinese practitioner lawyers, or its employed
support staff conducts legal services activities;

(2) failing to settle the fees that it collects for legal
services within the territory of China;

(3) failing to submit relevant materials for annual examination
on time, or failing to pass the annual examination.

If the representative office commits the acts set forth in item
(2) of the preceding paragraph, the judicial administration
department of the people’s government of the province, autonomous
region and the municipality directly under the Central Government
shall impose on it a fine of not less than one time but not more
than three times the money that should have been settled in the
territory of China.

Article 27 Where a representative office or a
representative falls under one of the following circumstances, the
judicial administration department of the people’s government of
the province, autonomous region and the municipality directly under
the Central Government give it/him a warning, confiscate its/his
illegal income, and concurrently impose a fine of not less than
20,000 yuan but not more than 100,000 yuan:

(1) concurrently serving as a full-time or part-time
representative in two or more representative offices;

(2) divulging commercial secrets or private matters of
parties;

(3) accepting money or other things of value from parties by
using the advantage of providing legal services.

Article 28 Where a representative office whose
registration is cancelled transfers its property out of the
territory of China before repaying its liabilities, the judicial
administration department of the people’s government of the
province, autonomous region and municipality directly under the
Central Government shall order a retransfer of the property
transferred out of the territory of China for the repayment of
liabilities. If such transfer seriously infringes upon other
persons’ interests, the chief representative of the representative
office and other persons directly responsible for such transfer
shall be investigated for criminal liability for the crime of
concealing property according to the provisions of the Criminal
Law. If the case is not serious enough for criminal punishment, the
judicial administration department of the people’s government of
the province, autonomous region and municipality directly under the
Central Government shall impose a fine of not less than 50,000 yuan
but not more than 300,000 yuan on the representative office, and a
fine of not less than 20,000 yuan but not more than 100,000 yuan
respectively on the chief representative and other persons directly
responsible for such transfer.

Article 29 Where a representative of a
representative office provides false evidence, conceals facts or
intimidates or induces another with promise of gain to provide
false evidence or conceal facts, he shall be investigated for
criminal liability for the crime of obstructing testimony in
accordance with the provisions of the Criminal Law, and his
certificate to practice shall be revoked by the judicial
administration department of the State Council.

Article 30 Where a foreign law firm, a foreign
lawyer or any other foreign organization or individual conducts
legal service activities within the territory of China without
permission, or where a representative office or a representative
whose permission to practice has been revoked continues to conduct
legal service activities within the territory of China, the
judicial administration department of the people’s government of
the province, autonomous region and municipality directly under the
Central Government shall ban such activities, confiscate the
illegal income, and impose a fine of not less than 50,000 yuan but
not more than 300,000 yuan concurrently.

Article 31 Where the license to practice of a
representative office is revoked according to law, the foreign law
firm that the said office is affiliated to will not be permitted to
apply to establish its representative office in China for five
years; where the certificate to practice of a representative of a
representative office is revoked according to law, he will not be
permitted to serve as a representative of any representative office
in China for five years.

Where a representative of a representative office is imposed a
criminal punishment for endangering the State security, public
security or administration of public order in China, the foreign
law firm that his representative office affiliates to will not be
permitted to apply to establish its representative office again and
the said representative will not be permitted to serve as a
representative of any representative office in China for life.

Article 32 Where a judicial administration
department staff member commits one of the following acts, an
administrative sanction of demerit recording, grave demerit
recording or demotion shall be imposed on the person in charge and
other persons directly responsible according to law:

(1) failing to examine or reexamine the certifying documents on
proposed representative offices and their representatives in
accordance with the requirements provided for in these
Regulations;

(2) failing to conduct registration or annual examination for
representative offices in accordance with the provisions of these
Regulations;

(3) failing to collect fees in accordance with the fee items and
fee standards set forth by the State.

Article 33 If a judicial administration
department staff member commits one of the following acts, an
administrative sanction of demotion, dismissal from the post or
discharge from public employment shall be imposed on the person in
charge and other persons directly responsible:

(1) issuing license to practice or certificate to practice to
proposed representative offices or its representatives which do not
meet the requirements provided for in these Regulations;

(2) using advantage of the office to accept money or property,
or to seek personal gain;

(3) in violation of the provisions of these Regulations, failing
to revoke the permission to practice granted to representative
offices or representatives, withdraw their license to practice or
certificate to practice, or cancel their registration where such
revocation or cancellation shall be done;

(4) failing to issue a receipt for the lawfully collected fines
or failing to truthfully fill in the amount of the fines;

(5) violating the system for separation of the fine decision
respecting and collection of fines or failing to turn over to the
State Treasury the fees and fines collected and the illegal income
confiscated as provided for;

(6) failing to promptly investigate and deal with the violations
of these Regulations by representative offices or their
representatives;

(7) other acts of not strictly enforcing laws or abusing powers
which cause serious consequences.

Those who commit one of the acts set forth in the preceding
paragraph which cause a heavy loss to public property or the
interests of the State and people shall be investigated for
criminal liability for the crime of abuse of power, negligence of
duty or acceptance of bribes in accordance with the provisions of
the Criminal Law.

Chapter VI Supplementary Provisions

Article 34 Measures for administration of the
representative offices established in Chinese mainland by law firms
in the separate customs territories shall be separately formulated
by the judicial administration department of the State Council in
accordance with the principles of these Regulations.

Article 35 These Regulations shall be effective
as of January 1, 2002. Representative offices of foreign law firms
and their representatives which have been approved to operate and
practice on a trial basis by the judicial administration department
of the State Council shall, within 90 days from effective date of
these Regulations, apply anew to handle examination and approval
formalities.

(State Council)

Regulations on Computers Software Protection

(Promulgated by Decree No. 339 of the State Council of the
People’s Republic of China on December 20, 2001, and effective as
of January 1, 2002)

Chapter I General Provisions

Article 1 These Regulations are formulated in
accordance with the Copyright Law of the People’s Republic of
China, for the purposes of protecting the rights and interests of
copyright owners of computer software, regulating the relationship
of interests generated in the development, dissemination and use of
computer software, encouraging the development and application of
computer software, and promoting the development of software
industry and the informatization of national economy.

Article 2 For the purposes of these
Regulations, the term “computer software” (hereinafter referred to
as “software”) means computer programs and relevant documents.

Article 3 For the purposes of these
Regulations, the following definitions apply:

(1) “computer program” means a coded instruction sequence which
may be executed by devices with information processing capabilities
such as computers, or a symbolic instruction sequence or symbolic
statement sequence which may be automatically converted into a
coded instruction sequence for the purpose of obtaining certain
expected results; the source program and object program of a
computer program shall be deemed as one and the same work;

(2) “documents” means literal descriptions or charts used to
describe the content, structure, design, functional performance,
historical development, test results and usage, such as program
design instructions, flowcharts, and user’s manuals;

(3) “software developer” means a legal entity or other
organization that actually organizes, or directly carries out, the
development of a piece of software and assumes responsibility for
the accomplished software, or a natural person who independently
completes, relying on his own conditions, the development of a
piece of software and assumes responsibility therefor;

(4) “software copyright owner” means a natural person, legal
entity or other organization that enjoys software copyright in
accordance with these Regulations.

Article 4 The software protected under these
Regulations must be developed independently by the developer and
fixed on tangible medium.

Article 5 Chinese citizens, legal entities or
other organizations enjoy, in accordance with these Regulations,
copyright in the software which they have developed, whether
published or not.

Foreigners or stateless persons having software first published
within the territory of the People’s Republic of China enjoy
copyright in accordance with these Regulations.

Software copyright enjoyed by foreigners or stateless persons
under an agreement concluded between China and the country to which
they belong to or in which they have their habitual residences, or,
under an international treaty acceded to by China, is protected in
accordance with these Regulations.

Article 6 The protection of software copyright
under these Regulations shall not extend to the ideas, processing,
operating methods, mathematical concepts or the like used in
software development.

Article 7 A software
copyright owner may register with the software registration
institution recognized by the copyright administration department
of the State Council. A registration certificate issued by the
software registration institution is a preliminary proof of the
registered items.

Fees shall be paid for software registration. The charging
standards for software registration shall be provided for by the
copyright administration department of the State Council jointly
with the competent department for pricing of the State Council.

Chapter II Software Copyright

Article 8 A software
copyright owner shall enjoy the following
rights:

(1) the right of divulgation, that is, the right to decide
whether to make the software available to the public;

(2) the right of developer-ship, that is, the right to claim
developer’s identity and to have the developer’s name mentioned in
connection with the software;

(3) the right of alteration, that is, the right to supplement or
abridge the software, or to change the sequence of instructions or
statements;

(4) the right of reproduction, that is, the right to produce one
or more copies of the software;

(5) the right of distribution, that is, the right to provide the
original copy or reproductions of the software to the public by
selling or donating;

(6) the right of rental, that is, the right to authorize others
to use temporarily and onerously the original copy or reproductions
of the software, except where the software itself is not the
essential object of the rental;

(7) the right of communication through information network, that
is, the right to make the software available to the public by wire
or wireless means so that members of the public may have access to
the software from a place and at a time individually chosen by
them;

(8) the right of translation, that is, the right to converse the
natural language of the software into another natural language;
and

(9) other rights which shall be enjoyed by software copyright
owners.

A software copyright owner may authorize others to exploit his
copyright, and has a right to receive remuneration.

A software copyright owner may transfer, wholly or in part, his
copyright, and has a right to receive remuneration.

Article 9 Except where otherwise provided in
these Regulations, the copyright in a piece of software belongs to
its developer.

The natural person, legal entity or other organization whose
name is mentioned in connection with a piece of software shall, in
the absence of proof to the contrary, will be its developer.

Article 10 Where a piece of software is
developed jointly by two or more natural persons, legal entities or
other organizations, the copyright ownership shall be agreed upon
in a written contract between the co-developers. Where, in the
absence of a written contract or an explicit agreement in the
contract, the joint software can be separated into independent
parts and exploited separately, each co-developer may enjoy
independent copyright in the part which he has developed, but the
exploitation of such copyright shall not extend to the copyright in
the joint software as a whole. Where the joint software cannot be
separated into independent parts and exploited separately, its
copyright is enjoyed jointly by those co-developers and exploited
by agreement. In the absence of such an agreement, any co-developer
shall not prevent, without justification, the other(s) from
exploiting the copyright except the right of transfer; however, the
profit received for exploiting the joint software shall be
reasonably shared between all the co-developers.

Article 11 Where a piece of software is
developed on commission, the copyright ownership shall be agreed
upon in a written contract between the commissioning and the
commissioned parties. In the absence of a written contract or an
explicit agreement in the contract, the copyright shall be enjoyed
by the commissioned party.

Article 12 Where a piece of software is
developed under a task assigned by a State organ, the ownership and
exploitation of its copyright shall be stipulated in a letter of
project assignment or a contract. In the absence of an explicit
stipulation in the letter of project assignment or the contract,
the copyright shall be enjoyed by the legal entity or other
organization that has accepted the task.

Article 13 Where a piece of software developed
by a natural person working in a legal entity or other organization
in the course of his service involves one of the following
circumstances, the copyright therein shall be enjoyed by such legal
entity or organization, which may reward the natural person for the
development of the software:

(1) the software is developed based on the development objective
explicitly designated in the line of his service duty;

(2) the software is a foreseeable or natural result of his work
activities in the line of his service duty; or

(3) the software is developed mainly with the material and
technical resources of the legal entity or other organization, such
as funds, special equipment or unpublished special information, and
the legal entity or other organization assumes the responsibility
therefor.

Article 14 The software copyright shall exist
from the date on which its development has been completed.

In the case of software copyright of a natural person, the term
of protection shall be the lifetime of such person and fifty years
after his death, expiring on December 31 of the fiftieth year after
his death. In the case of a piece of joint software, the term of
protection shall expire on December 31 of fiftieth year after the
death of the last surviving developer.

In the case of software copyright a legal entity or other
organization, the term of protection shall be fifty years, expiring
on December 31 of the fiftieth year after the first publication of
such software; however, if any such software has not been published
within fifty years from the date on which its development has been
completed, it shall be no longer protected under these
Regulations.

Article 15 Where software copyright belongs to
a natural person, his successer(s) may, after his death, inherit
the rights provided for in Article 8 of these Regulations except
the right of developer-ship, during the term of protection provided
for in these Regulations, in accordance with the succession Law of
the People’s Republic of China.

Where software copyright belongs to a legal entity or other
organization, the copyright shall, after the change or the
termination of the legal entity or other organization, be enjoyed,
during the term of protection provided for in these Regulations, by
the legal entity or other organization that has taken over the
former’s rights and obligations, or, in the absence of such entity
or organization, by the State.

Article 16 Owners of lawful copies of a piece
of software enjoy the following rights:

(1) to install and store the software in devices with
information processing capabilities, such as computers, according
to the need of their use;

(2) to make backup copies against damage, provided that such
owners do not offer others in any way the backup copies for their
use and that they destroy such copies once they lose the ownership
thereof; and

(3) to make necessary alterations to the software in order to
implement it in an actual environment of computer application or to
improve its functions or performance, provided that such owners do
not, except otherwise agreed in the contract, offer any third party
the altered software without permission from the software copyright
owner.

Article 17 A piece of
software may be used by its installing, displaying, transmitting or
storing for the purposes of studying or researching the design
ideas or principles embodied therein, without permission from, and
without payment of remuneration, to the software copyright
owner.

Chapter III Software Copyright Licensing and
Transfer

Article 18 In the
case of a license to exploit software copyright, the parties shall
conclude a licensing contract.

The licensee shall not exploit any right that the software
copyright owner has not expressly granted in the contract.

Article 19 In the
case of an exclusive license to exploit software copyright, the
parties shall conclude a written contract.

In the absence of a written contract or an explicit agreement
upon exclusive license in the contract, the right that the licensee
is authorized to exploit shall be deemed as a non-exclusive
right.

Article 20 In the
case of a transfer of software copyright, the parties shall
conclude a written contract.

Article 21 Anyone that concludes an exclusive
licensing contract or a transfer contract of software copyright may
register with the software registration institution recognized by
the copyright administration department of the State Council.

Article 22 A Chinese
citizen, legal entity or other organization that authorizes a
foreigner’s exploiting software copyright, or transfers it to a
foreigner, shall comply with the Regulations of the People’s
Republic of China on Administration of Technology Import and
Export.

Chapter IV Legal Liability

Article 23 Except where otherwise provided in
the Copyright Law of the People’s Republic of China or these
Regulations, anyone who commits any of the following acts of
infringement shall, in light of the circumstances, bear civil
liability by means of ceasing infringements, eliminating ill
effects, making an apology, or compensating for losses:

(1) to publish or register a piece of software without the
authorization of the software copyright owner;

(2) to publish or register a piece of software developed by
another person as ones own;

(3) to publish, or register, a piece of joint software as
developed solely by oneself, without the authorization of the other
co-developer(s);

(4) to have ones name mentioned in connection with, or alter the
name on, a piece of software developed by another person;

(5) to alter or translate a piece of software without the
authorization of the software copyright owner; or

(6) to commit other acts of infringing upon software
copyright.

Article 24 Except where otherwise provided in
the Copyright Law of the People’s Republic of China, these
Regulations, or other laws or administrative regulations, anyone
who, without the authorization of the software copyright owner,
commits any of the following acts of infringement shall, in light
of the circumstances, bear civil liability by means of ceasing
infringements, eliminating ill effects, making an apology, or
compensating for losses; where such act also prejudices the public
interest, the copyright administration department may order to
cease infringements, confiscate illegal income, confiscate or
destroy the infringing copies, and may impose a fine concurrently;
where the circumstances are serious, the copyright administration
department may confiscate the material, tools and equipment mainly
used to produce infringing copies; and where the act violates the
Criminal Law, criminal liability shall be investigated for the
crime of infringing upon copyright or selling infringing copies in
accordance with the provisions of the Criminal Law:

(1) to reproduce, wholly or in part, a piece of software of the
copyright owner;

(2) to distribute, rent or communicate to the public through
information network a piece of software of the copyright owner;

(3) to knowingly circumvent or sabotage technological measures
used by the copyright owner for protecting the software
copyright;

(4) to knowingly remove or alter any electronic rights
management information attached to a copy of a piece of software;
or

(5) to transfer, or authorize another person to exploit, the
software copyright of the owner.

Whoever commits the act referred to in item (1) or (2) of the
preceding paragraph may be concurrently fined 100 yuan for per copy
or not more than 5 times of the value of the products; and, those
who commits the act referred to in item (3), (4) or (5) of the
preceding paragraph may be fined not more than 50,000 yuan
concurrently.

Article 25 The compensation paid for infringing
upon software copyright shall be determined in accordance with
Article 48 of the Copyright Law of the People’s Republic of
China.

Article 26 A software
copyright owner that can present evidence to prove that another
person is committing, or is to commit, an infringement which, if
not being prevented promptly, is likely to cause irreparable harm
to him, may, before instituting legal proceedings, apply to a
people’s court, in accordance with Article 49 of the Copyright Law
of the People’s Republic of China, for an order of a stop to
relevant act and for measures of property
preservation.

Article 27 In order
to prevent infringement, a software copyright owner may, before
instituting legal proceedings, apply to a people’s court, in
accordance with Article 50 of the Copyright Law of the People’s
Republic of China, for evidence preservation where the evidence is
likely to be missing, or to be obtained difficultly
later.

Article 28 A
publisher or producer of copies of a piece of software that fails
to prove that the legal authorization for the publication or
production, or, a distributor or renter of copies of a piece of
software that fails to prove the legal source of the copies which
he distributes or rents, shall bear legal
liability.

Article 29 The development of a piece of
software which is similar to a pre-existing one due to a limit of
alternative forms of expression does not constitute an infringement
of the copyright in the pre-existing one.

Article 30 A holder
of copies of a piece of software that neither knows nor has
reasonable grounds to know that such copies are infringing ones
does not bear liability of compensation but shall cease the use of,
and destroy, the infringing copies. Nevertheless, if the cease of
use or the destruction of such copies is likely to cause heavy
losses to him, the holder of such copies may, after paying
reasonable remuneration to the software copyright owner, continue
to use such copies.

Article 31 A dispute
over software copyright infringement may be settled by
mediation.

A dispute over a software copyright contract may be submitted to
an arbitration institution for arbitration under an arbitration
clause in the copyright contract or under a written arbitration
agreement concluded later between the parties.

Any party may institute legal proceedings directly in a people’s
court in the absence of an arbitration clause in the contract or of
a written arbitration agreement concluded afterwards between the
parties.

Chapter V Supplementary Provisions

Article 32 Any act of infringing upon software
copyright committed prior to the entry into force of these
Regulations shall be dealt with under the relevant provisions of
the State that are in force at the time when the act was
committed.

Article 33 These Regulations shall be effective
as of January 1, 2002. The Regulations on Computer Software
Protection promulgated by the State Council on June 4, 1991 shall
be repealed simultaneously.

(State Council)

Regulations on Administration of Audio-visual Products

(Adopted at the 50th Executive Meeting of the State Council
on December 12, 2001, promulgated by Decree No.341 of the State
Council of the People’s Republic of China on December 25, 2001, and
effective as of February 1, 2002)

Chapter I General Provisions

Article 1 These Regulations are formulated to
strengthen the administration of audio-visual products, promote the
healthy development and flourish of the audio-visual undertakings,
enrich the cultural life of the people and promote the construction
of socialist material civilization and spiritual civilization.

Article 2 These Regulations shall apply to the
administration of the publication, production, reproduction,
importation, wholesale, retail and rental of such recorded
audio-visual products as audio tapes, video tapes, gramophone
records, compact discs and laser discs.

Those audio-visual products for the purpose of radio and TV
broadcasting shall be applied to the laws and administrative
regulations on radio and TV broadcasting.

Article 3 Publication, production,
reproduction, importation, wholesale, retail and rental of the
audio-visual products shall conform to the Constitution and
relevant laws and regulations, adhere to the principle of serving
the people and socialism and disseminate the ideological, ethical,
scientific, technological and cultural knowledge that is beneficial
to economic development and social progress.

No audio-visual product shall contain the following
contents:

(1) those opposing the basic principles established in the
Constitution;

(2) those endangering the unification, sovereignty and
territorial integrity of the State;

(3) those divulging secrets of the State, harming national
security, or impairing the honor and interests of the State;

(4) those inciting the enmity, discrimination of nationalities,
jeopardizing the unity among the various ethnic groups, or
violating the Customs and habits of minority nationalities;

(5) those spreading cults or superstitions;

(6) those disturbing social order and destroying social
stability;

(7) those inciting pornography, gambling, violence or
instigating a crime;

(8) those insulting or libeling others, violating the lawful
rights and interests of others; or

(9) those endangering social moralities or fine national
cultural traditions;

(10) other contents which are prohibited by laws and
administrative regulations or by the State.

Article 4 The publication administration
department of the State Council shall be responsible for the
publication, production and reproduction of audio-visual products
nationwide; the culture administration department of the State
Council shall be responsible for the supervision and administration
of the importation, wholesale, retail and rental of audio-visual
products nationwide; the other relevant administrative departments
of the State Council shall, in accordance with division of duties
prescribed by the State Council, be responsible for the supervision
and administration of commercial activities of audio-visual
products.

A administrative departments in charge of publication of the
local people’s governments at or above the county level shall be
responsible for the supervision and administration of the
publication, production and reproduction of audio-visual products
within their administrative areas; the culture administration
department of the local governments at or above county level shall
be responsible for the supervision and administration of the
importation, wholesale, retail and rental of audio-visual products
within their administrative areas; the other relevant
administrative departments of the local governments at or above
county level shall, within their own duties, be responsible for the
supervision and administration of commercial activities of
audio-visual products.

Article 5 The State implements a license system
for the publication, production, reproduction, importation,
wholesale, retail, and rental of audio-visual products. Any entity
or individual, without a license, shall not be engaged in the
publication, production, reproduction, importation, wholesale,
retail or rental of audio-visual products.

Any license or approval documents issued according to these
Regulations shall not be assigned by means of rental, lending, sale
or any other means.

Article 6 The publication administration
departments and culture administration department of the State
Council are responsible for formulating a development program of
the audio-visual publishing undertakings and determining, in
accordance with the division of duties prescribed by the State
Council, the total number, distribution and structure nationwide of
the audio-visual publishing units, audio-visual reproduction units
and audio-visual end products importation units.

Article 7 The departments and their staff
members in charge of the supervision and administration of
commercial activities of audio-visual products shall not engage or
engage, in a disguised form, in the commercial activities in
audio-visual products nor participate or participate, in a
disguised form, in such activities of the units dealing in
audio-visual products.

Chapter II Publication

Article 8 For establishment, an audio-visual
publishing unit shall meet the following conditions:

(1) possess a name and the articles of association of the
audio-visual publishing unit;

(2) possess a sponsoring unit which is recognized by the
publication administration department of the State Council and its
competent agency at the higher level;

(3) possess a well-defined scope of business;

(4) possess an organizational structure which meets the needs of
its scope of business and audio-visual publication professionals
conforming to the qualification conditions stipulated by the
State;

(5) possess necessary funds, equipment and production premises;
and

(6) other requirements prescribed by the laws and administrative
regulations.

In addition to the conditions listed in the preceding paragraph,
the approval of the establishment of an audio-visual publishing
unit shall conform to the development program concerning the total
number, distribution and structure of the audio-visual publishing
units.

Article 9 An application for establishing an
audio-visual publishing unit shall be, after being examined and
consented to by the publication administrative department of the
people’s government of the province, autonomous region or
municipality directly under the Central Government, submitted to
the publication administrative department of the State Council for
examination and approval. The latter shall, within 60 days from the
date of receipt of the application, make a decision on approving or
not approving the application, and make a notice to the applicant.
Where an application is approved, the License for Publishing
Audio-visual Products shall be issued, with which the applicant may
go through the formalities of registration at the administrative
department for industry and commerce, and obtain the business
license according to law; while the application is not approved,
the reason shall be given.

The application shall include the following items:

(1) the name and address of the audio-visual publishing
unit;

(2) the names and addresses of the sponsoring unit of the
audio-visual publishing unit and its competent agency at the higher
level;

(3) the name, address and qualification certifying document of
the legal representative or the major responsible person of the
audio-visual publishing unit; and

(4) the source and amount of fund of the audio-visual publishing
unit.

Article 10 Where an audio-visual publishing
unit intends to change its name, its sponsoring unit or the
competent agency at the higher level, or its business scope, , or
to merge other audio-visual publishing unit, or to establish a new
audio-visual publishing unit due to amalgamation or separation, it
shall go through the formalities of examination and approval in
accordance with the provisions of Articles 9, and go through the
relevant formalities of registration at the administrative
department for industry and commerce where the original
registration was gone through.

Where an audio-visual publishing unit intends to change address,
its legal representative or the major responsible person, or to
terminate its operations, it shall go through the formalities of
registration for change or revocation at the administrative
department for industry and commerce where the original
registration was gone through, and file for the record with the
publication administration department of the State Council at the
same time.

Article 11 The annual publication plan, and
important subjects involving national security and social stability
of an audio-visual publishing unit shall be examined by the
publication administration department of the people’s government of
the province, autonomous region or municipality directly under the
Central Government and be filed for the record with the publication
administration department of the State Council. Any audio-visual
product with important subjects shall not be published without
filing for the record before its publication.

Article 12 An audio-visual publishing unit
shall indicate at prominent positions on the audio-visual products
and their packages such contents as the name and address of the
publishing unit, the publisher’s code, the date of publication and
the owner of copyright of the audio-visual products. In the case of
publishing an imported audio-visual product, the importation
approval document number shall also be indicated.

The audio-visual publishing unit shall, within 30 days from the
date of publication of audio-visual products, present sample copies
for free to the National Library of China, National Editions
Library and the publication administration department of the State
Council.

Article 13 An audio-visual publishing unit may
not rent out, lend or sell its name or to assign its name in any
other ways to any other unit or individual, nor to sell publisher’s
code to any other unit or individual or to assign in any other ways
its publisher’s code to any other unit or individual.

Article 14 No unit or individual may engage in
the publication of audio-visual products by the means of
.purchasing, renting, borrowing or using without authorization the
name of an audio-visual publishing unit, or by the means of
purchasing or forging a publisher’s code.

No books publishing unit, newspapers publishing unit,
periodicals publishing unit or electronic publishing unit may
publish audio-visual products which are not in support of the
publications under its own imprint. However, in accordance with the
provisions by the publication administration department of the
State Council, they may engage in publication of audio-visual
products in support of the publications under its own imprint, and
enjoy the rights and bear the obligations with reference to those
of an audio-visual publishing unit.

Article 15 An audio-visual publishing unit may
cooperate with an organization or individual from Hong Kong Special
Administrative Region, Macao Special Administrative Region, and the
region of Taiwan or from a foreign country to produce audio-visual
products. The specific measures shall be formulated by the
publication administration department of the State Council.

Article 16 An audio-visual publishing unit
shall adopt a system of editor’s responsibility to ensure that the
contents of its audio-visual products conform to the provisions of
these Regulations.

Article 17 Any application for establishing, by
a unit other than an audio-visual publishing unit, a unit to engage
separately in the production of audio-visual products(hereinafter
referred as to audio-visual production unit) shall be examined and
approved by the publication administration department of the
people’s government of the province, autonomous region or
municipality directly under the Central Government. The publication
administration department of the people’s government of the
province, autonomous region or municipality directly under the
Central Government shall, within 60 days from the date of receipt
of the application, make a decision on approving or not approving
the application, and make a notice to the applicant. Where an
application is approved, the License for Producing Audio-visual
Products shall be issued, with which the applicant may go through
the formalities of registration at the administrative department
for industry and commerce, and obtain the business license
according to law; while the application is not approved, the reason
shall be given. The establishment of a unit to engage in production
of radio and TV programs shall be dealt with in accordance with the
provisions of the relevant laws and administrative regulations.

The application shall include the following items:

(1) the name and address of the audio-visual production
unit;

(2) the name, address and qualification certifying document of
the legal representative or the major responsible person of the
audio-visual publishing unit; and

(3) the source and amount of fund of the audio-visual production
unit.

Where the establishment of an audio-visual production unit is to
be examined for approval, in addition to the requirements listed in
the preceding paragraph, the total number, distribution and
structure of the audio-visual production unit shall also be
considered.

Article 18 Where an audio-visual production
unit intends to change its name or its business scope, or to merge
other audio-visual production unit, or to establish a new
audio-visual production unit due to amalgamation or separation, it
shall go through the formalities of examination and approval in
accordance with the provisions of Articles 17, and go through the
relevant formalities of registration at the administrative
department for industry and commerce where the original
registration was gone through.

Where an audio-visual production unit intends to change its
address, its legal representative or the major responsible person,
or to terminate its operations, it shall go through the formalities
of registration for change or revocation at the administrative
department for industry and commerce where the original
registration was gone through, and file the record with the
publication administration department of the people’s government of
the province, autonomous region or municipality directly under the
Central Governmental at the same time.

Article 19 Any audio-visual production unit
shall not commission a unit that has not obtained a License for
Production of Audio-visual Products to produce audio-visual
products.

When an audio-visual production unit accepts a commission to
produce audio-visual products, it shall, in accordance with the
relevant provisions by the State, enter into an agreement on
commissioned production with the commissioning publishing unit, and
verify the License for Production of Audio-visual Products of the
commissioning publishing unit, or the certificate of publications
under its own imprint and the commissioning deed for production of
audio-visual products sealed by the commissioning publishing
unit.

An audio-visual production unit shall not publish, reproduce,
wholesale, retail or rent out audio-visual products.

Chapter III Reproduction

Article 20 For establishment, an audio-visual
reproduction unit shall meet the following conditions:

(1) possess the name and the articles of association of the
audio-visual reproduction unit;

(2) possess a well-defined scope of business;

(3) possess an organizational structure and personnel which
meets to the needs of its scope of business;

(4) possess necessary funds, equipment and reproduction
premises; and

(5) other requirements prescribed by the laws and administrative
regulations.

Where the establishment of an audio-visual reproduction unit is
to be examined for approval, in addition to the requirements listed
in the preceding paragraph, the total number, distribution and
structure of the audio-visual reproduction units shall also be
considered.

Article 21 An application for establishing an
audio-visual reproduction unit shall be, after being examined or
consented to by the publication administration department of the
people’s government of the province, autonomous region or
municipality directly under the Central Government shall, submitted
to the publication administration department of the State Council
for examination and approval. The publication administration
department of the State Council shall, within 60 days from the date
of receipt of the application, make a decision on approving or not
approving the application, and make a notice to the applicant.
Where an application is approved, the License for Reproduction in
Audio-visual Products shall be issued, with which the applicant may
go through the formalities of registration at the administrative
department for industry and commerce, and obtain the business
license according to law; while the application is not approved,
the reason shall be given.

The application shall include the following items:

(1) the name and address of the audio-visual reproduction
unit;

(2) the name and address of the legal representative or the
major responsible person of the audio-visual reproduction unit;
and

(3) the source and amount of fund of the audio-visual
reproduction unit.

Article 22 Where an audio-visual reproduction
unit intends to change its business scope, or to merge other
audio-visual reproduction unit, or to establish a new audio-visual
reproduction unit due to amalgamation or separation, it shall go
through the formalities of examination and approval in accordance
with the provisions of Article 21, and go through the relevant
formalities of registration at the administrative department for
industry and commerce where the original registration was gone
through.

Where an audio-visual reproduction unit intends to change its
name, address, its legal representative or the major responsible
person, or to terminate its operations, it shall go through the
formalities of registration of change or revocation at the
administrative department for industry and commerce where the
original registration was gone through, and file the record with
the publication administration department of the State Council at
the same time.

Article 23 Where an audio-visual reproduction
unit accepts a commission to reproduce audio-visual products, it
shall, in accordance with the relevant provisions of the State,
enter into an agreement on commissioned reproduction with the
commissioning publishing unit, and verify the License for
Publishing Audio-visual Products and the copy of the business
license of the commissioning publishing unit, the commissioning
deed for reproduction of audio-visual products sealed by the
commissioning publishing unit and the letter of authorization of
the copyright owner. Where the commissioned audio-visual products
are products not for sale, it shall verify the commissioning deed
for reproduction of products issued by the publication
administration department of the people’s government of provinces,
autonomous region, and the municipality under the central
government and sealed by commissioning unit.

The audio-visual reproduction unit shall, within 2 years from
the date of completion of the reproduction of audio-visual
products, preserve the agreement on commissioned reproduction,
sample copies of its reproduced audio-visual products and copies of
the relevant certifying documents for purpose of examination and
verification.

Article 24 No audio-visual reproduction unit
may accept commission to reproduce commercial audio-visual products
from a unit or individual other than an audio-visual publishing
unit. The audio-visual reproduction unit may not reproduce
audio-visual products of its own accord, nor wholesale, retail or
rent out audio-visual products.

Article 25 An audio-visual reproduction unit
shall, when reproducing laser discs, use the plastic mould etched
with the source identification code of laser digital storage chip
approved and issued by the publication administration department of
the State Council.

Article 26 Where an audio-visual reproduction
unit accepts a commission to reproduce overseas audio-visual
products, it shall submit the sample copies of such audio-visual
product to the publication administration department of the
people’s government of the province, autonomous region or
municipality directly under the Central Government for examination
and approval, and shall submit the letter of authorization of the
copyright owner for registration at the administrative department
in charge of copyright affairs. The audio-visual products
reproduced shall all be transported overseas.

Chapter IV Importation

Article 27 The importation business of the
audio-visual end products shall be operated by the units engaged in
importation of audio-visual end products designated by the culture
administration department of the State Council. No unit or
individual may engage in importation of audio-visual end products
without designation.

Article 28 Any importation of audio-visual
products to be used for publication, and of audio-visual end
products to be used for wholesale, retail or rental, shall be
subject to the content examination by the culture administration
department of the State Council.

The culture administration department of the State Council
shall, within 30 days from the date of receipt of the application
for content examination of audio-visual products, make a decision
on approving or not approving the application, and make a notice to
the applicant. Where an application is approved, the approved
documents shall be issued, while the application is not approved,
the reason shall be given.

The unit importing audio-visual products to be used for
publication or the unit engaged in importation of audio-visual end
products shall, with the documents approved by the culture
administration department of the State Council, go through the
formalities of importation at the Customs.

Article 29 When audio-visual products are
imported for purpose of publishing, the relevant copyright matters
shall be registered with the copyright affairs administration
department of the State Council.

Article 30 Any importation of audio-visual
products for reference in research, teaching and studying shall be
handled and commissioned by the unit engaged in importation of
audio-visual end products in accordance with Article 28 of these
Regulations.

Any importation of audio-visual products for exhibition and
demonstration shall, after approved by the culture administration
department of the State Council, go through the formalities of
temporary importation at the Customs.

Any audio-visual products imported according to these
Regulations shall not be used for commercial reproduction,
wholesale, retail, rental or projection.

Chapter V Wholesale, Retail and Rental

Article 31 For establishment, a wholesale,
retail or rental unit of audio-visual products shall meet the
following conditions:

(1) possess the name and the articles of association of the
wholesale, retail or rental unit of audio-visual products ;

(2) possess a well-defined scope of business;

(3) possess an organizational structure and personnel which
meets to the needs of its scope of business;

(4) possess necessary funds and permanent premises; and

(5) other requirements prescribed by the laws and administrative
regulations.

Article 32 An application for establishing a
nationwide audio-visual products chain business shall be, after it
has been examined and consented by the culture administration
department of the people’s government of the province, autonomous
region or municipality directly under the Central Government where
the head office of the chain business is located, submitted to the
culture administration department of the State Council for
examination and approval. Any application for establishing a
wholesale unit of audio-visual products shall be submitted to the
culture administration department of the people’s government of the
province, autonomous region or municipality directly under the
Central Government for examination and approval. Any application
for establishing a retail and rental unit of audio-visual products
shall be submitted to the culture administration department of the
people’s government at county level for examination and approval.
The culture administration departments shall, within 30 days from
the date of receipt of the application, make a decision on
approving or not approving the application, and make a notice to
the applicant. Where an application is approved, the License for
Business in Audio-visual Products shall be issued, with which the
applicant may go through the formalities of registration at the
administrative department for industry and commerce, and obtain the
business license according to law; while the application is not
approved, the reason shall be given.

The category of audio-visual business shall be indicated in the
License for Business in audio-visual Products.

Article 33 Where a wholesale, retail or rental
unit of audio-visual products intends to change its name, business
scope, or to merge other wholesale, retail or rental unit of
audio-visual products, or to establish a new wholesale, retail or
rental unit of audio-visual products due to amalgamation or
separation, it shall go through the formalities of examination and
approval in accordance with the provisions of Articles 32, and go
through the relevant formalities of registration at the
administrative department for industry and commerce where the
original registration was gone through.

Where wholesale, retail or rental unit of audio-visual products
intends to change address, its legal representative or the major
responsible person, or to terminate its operations, it shall go
through the formalities of registration for change or revocation at
the administrative department for industry and commerce where the
original registration was gone through, and at the same time file
for the record with the culture administration department where the
original approval was made.

Article 34 An audio-visual publishing unit may,
in accordance with the relevant provisions of the State, engage in
the wholesale or retail of audio-visual products that are published
by itself. If it intends to engage in the wholesale or retail of
audio-visual products that are not published by itself, it shall go
through the formalities of examination and approval in accordance
with the provisions of Article 32, and go through the relevant
formalities of registration at the administrative department for
industry and commerce where the original registration was gone
through.

Article 35 The State allows the establishment
of Chinese-foreign contractual joint venture to engage in the
distribution business of audio-visual products. The specific
measure and procedures shall be formulated, according to the
relevant provisions, by the culture administration department of
the State Council jointly with the competent foreign trade and
economic cooperation department of the State Council.

Article 36 Any wholesale unit of audio-visual
products, or any unit or individual engaged in the retail or rental
of audio-visual products may not be engaged in the business of
audio-visual products that are not published by an audio-visual
publishing unit or reproduced by an audio-visual reproduction unit,
nor be engaged in the business of audio-visual products that are
imported without approval by the culture administration department
of the State Council , nor be engaged in the business of
audio-visual products that infringe upon the copyrights of
others.

Chapter VI Penalty Provisions

Article 37 Where the publication administration
department, the culture administration department, the
administrative department for industry and commerce and other
administrative departments, as well as their staff members, take
advantages of their duties accepting from others properties or
other benefits to approve the establishment of a unit for
publication, production, reproduction, importation, wholesale,
retail or rental of audio-visual products which is not satisfied
with the legal conditions, or fail to perform their supervisory
duties or fail to investigate and deal with illegal activities
found, causing serious results, the responsible person in charge
and other directly responsible person shall be investigated for
criminal liability, in accordance with the provisions on crimes of
acceptance of bribes, abuse of power, neglect of duties or other
crimes in the Criminal Law; if it is not enough for criminal
punishment, administrative sanction of demotion or removal from
post shall be given.

Article 38 Where the staff members of the
departments in charge of the supervision and administration of
commercial activities of audio-visual products engage or engage, in
a disguised form, in the commercial activities of audio-visual
products, or participate or participate, in a disguised form, in
commercial activities of the units dealing in audio-visual
products, they shall be given the administrative sanction of
removal or discharge from post.

If the departments in charge of the supervision and
administration of commercial activities of audio-visual products
engage in the activities listed in the preceding paragraph, the
responsible person in charge and other directly responsible person
shall be punished according to the preceding paragraph.

Article 39 Without approval, any authorized
establishment of a unit of publication, production, reproduction,
importation, wholesale, retail, rental or projection of
audio-visual products, or any act to engage in the publication,
production, reproduction, importation, wholesale, retail, rental or
projection of audio-visual products, shall be banned by the
publication administration department and the administrative
department for industry and commerce according to their legal
duties, and criminal liability shall be investigated in accordance
with the relevant provision on illegal business operation in the
Criminal Law; if it is not enough for criminal punishment, the
audio-visual products for illegal business, illegal income, the
special devices, equipment mainly and specially used for illegal
business shall be confiscated; where the illegal business amount is
more than 10000 yuan, a fine of more than 5 times and less than 10
times of illegal business amount shall be imposed at the same time;
where the illegal business amount is less than 10000 yuan, a fine
of less than 50000 yuan shall be imposed concurrently.

Article 40 Where anyone who publishes the
audio-visual products containing the contents prohibited in
paragraph 2 of Article 3 of these Regulations, or produces,
reproduces, wholesales, retails, rents out or projects the
audio-visual products containing the contents which it has known or
should have known, prohibited in paragraph 2 of Article 3 of these
Regulations, criminal liability shall be investigated according to
the relevant provisions of the Criminal Law; if it is not enough
for criminal punishment, the publication administration, the
culture administration department or public security department
shall order to suspend business for rectification in accordance
with their duties and confiscate the audio-visual products for
illegal business and illegal income; if the illegal business amount
is more than 10000 yuan, a fine of more than 5 times and less than
10 times of illegal business amount shall be imposed concurrently;
if the illegal business amount is less than 10000 yuan, a fine of
less than 50000 yuan shall be imposed concurrently; if the case is
serious, the license shall be revoked by the original issuing
department.

Article 41 Where audio-visual product are
smuggled, criminal liability shall be investigated in accordance
with the crime on smuggling in the Criminal Law; if is not enough
for criminal punishment, administrative punishments shall be
imposed by the Customs.

Article 42 Where anyone who, in violation of
these Regulations, commits one of the following acts, the
publication administration department shall order to stop illegal
act, give a warning, or confiscate the audio-visual products for
illegal business and the illegal income; if the illegal business
amount is more than 10000 yuan, a fine of more than 5 times and
less than 10 times of illegal business amount shall be imposed
concurrently; if the illegal business amount is less than 10000
yuan, a fine of more than 10000 yuan and less than 50000 yuan shall
be imposed concurrently; if the case is serious, order to suspend
business for rectification or the original issuing department shall
revoke the license:

(1) where an audio-visual publishing unit rents out, lends,
sells or assigns in other form its own name, or sells or assigns in
any other form its publisher’s code to another unit or
individual;

(2) where an audio-visual publishing unit commissions a unit
without a License for Production in Audio-visual Products to
produces audio-visual products, or commissions a unit without a
License for Reproduction in Audio-visual Products to reproduces
audio-visual products;

(3) where an audio-visual publishing unit publishes the
audio-visual products for which the importation is not approved by
the culture administration department of the State Council;

(4) where an audio-visual production or reproduction unit fails
to verify, according to the provisions in these Regulations, the
commissioning deed and the relevant certifying documents of the
audio-visual publishing unit; or

(5) where an audio-visual reproduction unit reproduces
audio-visual products of others without authorization, or accepts a
commission from a unit other than an audio-visual publishing unit
or individual to reproduce commercial audio-visual products, or
reproduce the audio-visual products of its own accord.

Article 43 Where an audio-visual publishing
unit produces, in violation of the relevant provisions of the
State, audio-visual products in cooperation with organizations or
individuals from Hong Kong Special Administrative Region, Macau
Special Administrative Region, the region of Taiwan or foreign
countries, and an audio-visual reproduction unit accepts a
commission, in violation of the relevant provisions of the State,
to reproduce overseas audio-visual products, without examination
and consent of the publication administration department of the
people’s government of the province, autonomous region or
municipality directly under the Central Government, or failing to
transport fully the reproduced audio-visual products overseas, the
publication administration department of the people’s government of
the province, autonomous region or municipality directly under the
Central Government shall order to make correction and confiscate
the audio-visual products for illegal business and illegal income;
if the illegal business amount is more than 10000 yuan, a fine of
more than 5 times and less than 10 times of illegal business amount
shall be imposed concurrently; if the illegal business amount is
less than 10000 Yuan, a fine of more than 10000 Yuan and less than
50000 Yuan shall be imposed concurrently; if the case is serious,
the original issuing department shall revoke the license.

Article 44 Where anyone who commits one of the
following acts, the publication administration department and the
culture administration department shall order to make correction;
if the case is serious, order to suspend business for rectification
or the original issuing department shall revoke the license:

(1) an audio-visual publishing unit fails to file its annual
publication plan, and important subjects involving national
security and social stability for the record with the publication
administration department of the State Council;

(2) a unit of publication, production, reproduction, wholesale ,
retail, rental of audio-visual products fails, when changing its
name, address, legal representative or major responsible person, or
its scope of business, to go through the formalities of examination
and approval or filing for the record in accordance with these
Regulations;

(3) an audio-visual publishing unit fails to indicate the
contents prescribed in these Regulations at prominent positions on
its audio-visual products published and packages;

(4) an audio-visual publishing unit fails to submit sample
copies according to these Regulations;

(5) an audio-visual reproduction unit fails to preserve the
materials for potential examination in accordance with these
Regulations; or

(6) an audio-visual reproduction unit, when reproducing laser
discs, uses the plastic mould which is not etched with the source
identification code of laser digital storage chip approved and
issued by the publication administration department of the State
Council.

Article 45 Where anyone who, in violation of
these Regulations, commits one of the following acts, the culture
administration department shall order to stop illegal act, give a
warning, or confiscate the audio-visual products for illegal
business and the illegal income; if the illegal business amount is
more than 10000 yuan, a fine of more than 5 times and less than 10
times of illegal business amount shall be imposed concurrently; if
the illegal business amount is less than 10000 Yuan, a fine of more
than 10000 yuan and less than 50000 yuan shall be imposed
concurrently; if the case is serious, order to suspend business for
rectification or the original issuing department shall revoke the
license:

(1) where audio-visual products published or reproduced by a
unit other than an audio-visual publishing or reproducing units are
sold at wholesale or retail, rented out or projected;

(2) where audio-visual products for which the importation is not
approved by the culture administration department of the State
Council;

(3) where audio-visual products used for reference in research,
teaching and studying only or for purpose of exhibition or
demonstration are sold at wholesale or retail, rented out or
projected; and

(4) where an audio-visual publishing unit publishes the
audio-visual products for which the importation is not approved by
the culture administration department of the State Council.

Article 46 Any unit received the administrative
punishment of license revoking, for violating these Regulations
shall go through the formalities of changing registration or
canceling registration; if it fails to go through such formalities
when the time limit expires, the business license shall be revoked
by the administrative department for industry and commerce.

Article 47 Where a unit received an
administrative punishment of license revoking, for violating these
Regulations, its legal representative or the major responsible
person shall not act, within 10 years from the date of revocation
of the license, as legal representative or the major responsible
person of a unit engaged in the publication, production,
reproduction, importation, wholesale, retail, rental of
audio-visual products.

Where an individual engaged in the retail, rental or projection
business received an administrative punishment of license revoking,
for violating these Regulations shall not engage, within 10 years
from the date of revocation of the license, in the retail, rental
or projection business.

Article 48 Where a fine as an administrative
punishment is imposed according to these Regulations, the
decision-making of the fine shall be separated from the collection
of the fine in accordance with the provision of the relevant laws
and administrative regulations. All the fines collected shall be
submitted to the State Treasury.

Chapter VII Supplementary Provisions

Article 49 As of the date of implementation of
these Regulations, no establishment of a commercial audio-visual
products projection unit may be examined and approved; those
established according to law shall not update the existing
equipment and shall be closed within 5 years; before closure, they
shall be supervised and administered by the culture administration
department.

Article 50 Where a license is issued according
to these Regulations, no other fees may be levied except the cost
to be collected at the legal standards.

Article 51 These Regulations shall be effective
as of February 1, 2002. The Regulations on Administration of
Audio-visual Products promulgated by the State Council on August
25, 1994 shall be repealed simultaneously.

(State Council)

Regulations of the People’s Republic of China on Administration of Foreign-funded Insurance Companies

(Adopted at the 49th Executive Meeting of the State Council
on December 5, 2001, promulgated by Decree No. 336 of the State
Council of the People’s Republic of China on December 12, 2001, and
effective as of February 1, 2002)

Chapter I General Provisions

Article 1 These Regulations are formulated to
meet the need of opening up to the outside world and developing
economy, to strengthen and improve the supervision and
administration of foreign-funded insurance companies, and to
promote the healthy development of the insurance industry.

Article 2 The term of “foreign-funded insurance
companies”, as used in these Regulations, refers to the following
insurance companies that are approved to be established and to
operate within the territory of China in accordance with relevant
laws and administrative regulations of the People’s Republic of
China:

(1) insurance companies which are funded and operated within the
territory of China by foreign insurance companies jointly with
Chinese companies or enterprises (hereinafter referred to as joint
venture insurance companies);

(2) insurance companies which are solely funded and operated
within the territory of China by foreign insurance companies
(hereinafter referred to as solely-foreign-funded insurance
companies); and

(3) branches of foreign insurance companies within the territory
of China (hereinafter referred to as branches of foreign insurance
companies).

Article 3 Foreign-funded insurance companies
shall abide by the laws and regulations of China and shall not
infringe upon the social and public interests of China.

The legitimate business activities and lawful rights and
interests of foreign-funded insurance companies are protected by
the laws of China.

Article 4 The China Insurance Regulatory
Commission (hereinafter referred to as CIRC) is responsible for the
supervision and administration of foreign-funded insurance
companies. The agencies of CIRC exercise routine supervision and
administration on foreign-funded insurance companies within their
respective jurisdictions according to the powers delegated by
CIRC.

Chapter II Establishment and Registration

Article 5 The establishment of a foreign-funded
insurance company shall be approved by CIRC.

Regions where foreign-funded insurance companies may be
established shall be determined by CIRC in accordance with relevant
provisions.

Article 6 For foreign-funded insurance
companies to engage in insurance of the person or property
insurance business, their establishment form and foreign investment
proportion shall be determined by CIRC in accordance with relevant
provisions.

Article 7 The minimum registered capital
requirement of a joint venture insurance company or a
solely-foreign-funded insurance company is RMB 200,000,000 yuan or
its equivalent of a freely convertible currency; the minimum
registered capital must be fully paid-up in currency. The
contribution of foreign insurance companies shall be made in freely
convertible currencies.

A branch of a foreign insurance company shall be allocated as
its operating fund by its headquarter company a free sum of freely
convertible currencies equivalent to not less than RMB 200,000,000
yuan.

CIRC may, according to the business scope and operation scale of
a foreign-funded insurance company, increase the minimum
requirement of the registered capital or operating fund provided
for in the preceding two paragraphs.

Article 8 A foreign
insurance company applying to establish a foreign-funded insurance
company shall meet the following requirements:

(1) It has engaged in insurance business for not less than 30
years;

(2) It has maintained a representative office within the
territory of China for not less than 2 years;

(3) It possessed total assets of not less than US$5,000,000,000
at the end of the year prior to the submission of its establishment
application;

(4) The country or region where it is domiciled has a sound
system of insurance supervision and administration, and it is under
the effective supervision and administration by the relevant
competent authorities of the country or region;

(5) It satisfies the solvency standards of the country or region
where it is domiciled;

(6) The relevant competent authorities of the country or region
where it is domiciled consents to its application; and

(7) It meets other prudent requirements prescribed by CIRC.

Article 9 To establish a foreign-funded
insurance company, the applicant shall submit an application to
CRIC in writing, together with the following materials:

(1) an application signed by the legal representative of the
applicant, or, where a joint venture insurance company is applied
for, jointly signed by the respective legal representatives of each
joint party;

(2) a duplicate of the foreign applicant’s business license, a
certification proving that the foreign applicant satisfies the
solvency standards, and the opinion on the application issued by
the relevant competent authorities of the country or region where
the applicant is domiciled;

(3) the foreign applicant’s articles of association and its
annual reports for the last three years prior to submission of the
application;

(4) in the case of applying for establishing a joint venture
insurance company, relevant materials of the Chinese applicant
(s);

(5) the feasibility study report and the preparatory plan of the
proposed company;

(6) the names, biographical information and qualification
certifications of the personnel responsible for the preparatory
work of the proposed company; and

(7) other materials to be submitted as provided by CIRC.

Article 10 CIRC shall conduct a preliminary
examination on the application for establishing a foreign-funded
insurance company and decide to accept or reject it within 6 months
from the date of receipt of the complete application documents. If
the application is accepted, CIRC shall issue an official
application form to the applicant; if the application is rejected,
CIRC shall inform the applicant in writing and give reasons for the
rejection.

Article 11 Applicants shall complete the
preparatory work within 1 year from the date of receipt of the
official application form. An extension of 3 months may be granted
upon the approval of CIRC where the preparatory work is not
completed within the specified time limit for proper reasons. If
the preparatory work is not completed within the extended period,
the acceptance decision made by CIRC automatically ceases to be
effective. Upon completion of the preparatory work, the applicant
shall submit to CIRC the completed application form together with
the following materials for examination and approval:

(1) a report on the preparatory work;

(2) the articles of association of the proposed company;

(3) a list of the investors of the proposed company and the
amount of their respective contributions;

(4) a capital verification certificate issued by a statutory
capital verification institution;

(5) letters of attorney issued to the principal responsible
persons of the proposed company;

(6) the names, biographical information and qualification
certifications of the senior management personnel of the proposed
company;

(7) the business plan and reinsurance program of the proposed
company for the first 3 years to come;

(8) insurance clauses, premium rates and the calculation
statements of the liability reserves for the insurance products to
be distributed within the territory of China;

(9) information on the business premises and other facilities
related to the business operation of the proposed company;

(10) in the case of applying for establishing a branch of a
foreign insurance company, a bond issued by the headquarter company
guaranteeing the taxes and debts obligation of the proposed
branch;

(11) in the case of applying for establishing a joint venture
insurance company, the joint venture agreement; and

(12) other materials to be submitted as provided by CIRC.

Article 12 CIRC shall, within 60 days from the
date of receipt of the complete official application documents,
decide to approve or disapprove the application. If the application
is approved, CIRC shall issue a permit to carry on insurance
business; if the application is disapproved, CIRC shall inform the
applicant in writing and give the reasons for the disapproval.

Where the establishment of a foreign-funded insurance company is
approved, the applicant shall, on strength of the permit to carry
on insurance business, register with the administrative department
for industry and commerce and obtain a business license.

Article 13 Upon the establishment of a
foreign-funded insurance company, 20% of the total amount of its
registered capital or operating fund shall be deposited with the
bank(s) designated by CIRC as a guarantee fund. This guarantee fund
shall not be used except for paying off debts when the
foreign-funded insurance company is liquidated.

Article 14 Branching of a foreign-funded
insurance company within the territory of China shall be examined
and approved by CIRC in accordance with relevant provisions.

Chapter III Business Scope

Article 15 Foreign-funded insurance companies
may, within the business scope approved by CIRC and in accordance
with law, conduct all or part of the following classes of insurance
business:

(1) property insurance, including property loss or damage
insurance, liability insurance, credit insurance etc., or

(2) insurance of the person, including life assurance, health
insurance, accidental injury insurance etc.

Foreign-funded insurance companies may, upon the approval of
CIRC in accordance with relevant provisions, engage in large-scale
commercial risks insurance and master policy insurance within the
scope approved.

Article 16 A
foreign-funded insurance company shall not engage in both property
insurance and insurance of the person
concurrently.

Article 17 A
foreign-funded insurance company may conduct the following
reinsurance business with respect to the insurance business
provided for in Article 15 of these
Regulations:

(1) outward reinsurance; and

(2) inward reinsurance.

Article 18 The specific business scope,
geographic restriction of business and types of clients of a
foreign-funded insurance company shall be approved by CIRC in
accordance with relevant provisions. A foreign-funded insurance
company may only conduct its business within the scope of
approval.

Chapter IV Supervision and Administration

Article 19 CIRC has the right to inspect the
business performance, financial status and the utilization of funds
of a foreign-funded insurance company, to require a foreign-funded
insurance company to furnish relevant documents, materials and
written report (s) within a specified time limit, and to impose
penalties or make other dispositions according to law on any
violation of laws or rules.

Foreign-funded insurance companies shall accept the supervision
and inspection conducted by CIRC according to law, and truthfully
provide relevant documents, materials and written report (s).
Refusal, hindrance or concealment is prohibited.

Article 20 Foreign-funded insurance companies
shall not engage in any of the following transactions with their
associated enterprises unless is otherwise approved by CIRC:

(1) outward or inward reinsurance; or

(2) purchase or sale of assets, or other transactions.

The term of “associated enterprises”, as used in the preceding
paragraph, refers to any enterprise that has one of the following
associations with the foreign-funded insurance company:

(1) relationships of control in shareholding or capital
contribution;

(2) being controlled by a third party together with the
foreign-funded insurance company in shareholding or capital
contribution; or

(3) other association in interests.

Article 21 A branch of
a foreign insurance company shall, within 3 months after the end of
each fiscal year, submit to CIRC the financial statements of both
the branch and the headquarter company of the previous year and
make them public.

Article 22 A branch of
a foreign insurance company shall, where the headquarter company of
which falls under one of the following circumstances, submit to
CIRC a written report on relevant information within 10 days from
the date of occurrence of such circumstance(s):

(1) change of its name, the principal responsible persons or the
place of registration;

(2) change in the amount of its capital;

(3) change of shareholder(s) holding 10% or more of its total
capital or total shares;

(4) adjustment of its business scope;

(5) penalized by the relevant competent authorities of the
country or region where it is domiciled;

(6) significant losses incurred;

(7) separation, merger, dissolution, mandatory closure or being
declared bankrupt; or

(8) other circumstances provided for by CIRC.

Article 23 CIRC shall order a branch of a
foreign insurance company to cease to conduct new business where
its headquarter company is dissolved, closed according to law, or
declared bankrupt.

Article 24 A
foreign-funded insurance company, when engaging in insurance in
foreign currencies, shall abide by the relevant provisions of the
State on administration of foreign exchange.

Any foreign-funded insurance company conducting insurance
business within the territory of China, other than those otherwise
approved by the foreign exchange administration organ of the State,
shall use RMB in price quotations and in settlements.

Article 25 All documents, materials and written
reports submitted to CIRC in accordance with these Regulations
shall be written in the Chinese language.

Chapter V Termination and Liquidation

Article 26 A
foreign-funded insurance company may, upon the approval of CIRC, be
dissolved in the event of division, merger or the occurrence of
other dissolution circumstances set forth in the articles of
association of the company. When a foreign-funded insurance company
is dissolved, a liquidation task force shall be established
according to law to conduct the liquidation.

A foreign-funded insurance company engaging in life assurance
shall not be dissolved, except in the event of separation or
merger.

Article 27 Where the permit to carry on
insurance business of a foreign-funded insurance company is revoked
by CIRC due to its violation of laws or administrative regulations,
the company shall be closed according to law. CIRC shall timely
establish a liquidation task force to conduct the liquidation.

Article 28 Where a foreign-funded insurance
company is liquidated due to dissolution or closure, it shall,
within 60 days from the date of establishment of the liquidation
task force, make public announcements in the newspaper for at least
three times. The content of such public announcement shall be
approved by CIRC.

Article 29 Where a foreign-funded insurance
company is unable to pay off its debts when due, it may, upon the
approval of CIRC, be declared bankrupt by a people’s court. The
people’s court shall organize relevant departments such as CIRC and
relevant persons to establish a liquidation task force to conduct
the liquidation.

Article 30 Where a foreign-funded insurance
company is dissolved, closed according to law, or declared
bankrupt, it shall not transfer its assets outside the territory of
China before paying off all the debts.

Chapter VI Legal Liability

Article 31 Those who, in violation of these
Regulations, establish a foreign-funded insurance company or
illegally engage in insurance activities shall be banned by CIRC
and be investigated for criminal liability in accordance with the
provisions of the Criminal Law on the crime of illegally
establishing financial institutions, the crime of illegal operation
or other crimes. Where such violation is not serious enough for
criminal punishment, CIRC shall confiscate the illegal income and
concurrently impose a fine of not less than one time nor more than
five times the illegal income, or a fine of not less than 200,000
yuan nor more than 1,000,000 yuan if there is no illegal income or
the illegal income is less than 200,000 yuan.

Article 32 Where a foreign-funded insurance
company, in violation of these Regulations, engages in insurance
activities exceeding the approved business scope, geographic
restriction or types of clients, it shall be investigated for
criminal liability in accordance with the provisions of the
Criminal Law on the crime of illegal operation or other crimes.
Where such violation is not serious enough for criminal punishment,
CIRC shall order the foreign-funded insurance company to make
corrections and to refund the premiums collected, confiscate the
illegal income, and concurrently impose a fine of not less than one
time nor more than five times the illegal income, or a fine of not
less than 100,000 yuan nor more than 500,000 yuan if there is no
illegal income or the illegal income is less than 100,000 yuan.
Where the foreign-funded insurance company fails to make
corrections within a specified time limit or causes serious
consequences, CIRC shall order the foreign-funded insurance company
to suspend its business operation within a specified time limit, or
revoke its permit to carry on insurance business.

Article 33 Where a foreign-funded insurance
company, in violation of these Regulations, conducts one of the
following activities, CIRC shall order it to make corrections in a
specified time limit and impose a fine of not less than 50,000 yuan
nor more than 300,000 yuan. If the circumstances are serious, CIRC
may order the foreign-funded insurance company to cease accepting
new business, or revoke its permit to carry on insurance
business:

(1) failing to set up a guarantee fund as in accordance with
provisions or using the guarantee fund in violation of the
provisions;

(2) engaging in transactions with its associated enterprises in
violation of the provisions; or

(3) failing to replenish the registered capital or operating
fund as in accordance with provisions.

Article 34 Where a foreign-funded insurance
company, in violation of these Regulations, conducts one of the
following activities, CIRC shall order it to make corrections
within a specified time limit. If the foreign-funded insurance
company fails to make corrections within the specified time limit,
it shall be fined not less than 10,000 yuan nor more than
100,000:

(1) failing to submit relevant documents, materials or written
reports as in accordance with provisions; or

(2) failing to make public announcements as in accordance with
provisions.

Article 35 Where a foreign-funded insurance
company, in violation of these Regulations, conduct one of the
following activities, CIRC shall impose a fine of not less than100,
000 yuan nor more than 500,000 yuan:

(1) submitting falsified documents, materials or written
reports; or

(2) refusing or hindering supervision and inspection conducted
according to law.

Article 36 Where a foreign-funded insurance
company, in violation of these Regulations, transfers its assets
out of the territory of China, CIRC shall order it to transfer back
the assets and impose a fine of not less than 20% nor more than the
full amount of the assets so transferred.

Article 37 Where a foreign-funded insurance
company violates relevant Chinese laws, administrative regulations
or these Regulations, CIRC may disqualify the senior managerial
personnel of the company to serve in China for a specified period
of time up to their whole life.

Chapter VII Supplementary Provisions

Article 38 Where there are no provisions in
these Regulations on the matters concerning the supervision and
administration of foreign-funded insurance companies, the Insurance
Law of the People’s Republic of China, as well as other relevant
laws, administrative regulations and other relevant provisions of
the State apply.

Article 39 These Regulations are mutatis
mutandis applicable to the insurance companies established and
operated within the mainland by insurance companies of Hong Kong
Special Administrative Region, Macao Special Administrative Region
and Taiwan region.

Article 40 These Regulations shall be effective
as of February 1, 2002.

(State Council)

Djokovic batters Nadal to reach final

Djokovic batters Nadal to reach final

Serbia’s Novak Djokovic extended a brilliant run of form by outclassing world No. 2 Rafael Nadal 6-2, 6-3 to advance to the Paris Masters final yesterday.
World No. 3 Djokovic, who beat world No. 1 Roger Federer in the Basel final last week, will face local favorite Gael Monfils or Czech Radek Stepanek in the final of the last event of the regular season today.
Spaniard Nadal, who has not won a title since beating Djokovic in the Rome Masters final last May, will now prepare for the November 22-29 World Tour Finals in London featuring the world’s top eight players.
Nadal returned to competition in October after a month off with a pulled stomach muscle. He reached the semifinals in Beijing, then the final in Shanghai where he lost to Nikolay Davydenko.
The first set was tight until Djokovic earned three break points in the sixth game, firing a backhand winner on the first.
Nadal kept struggling on his serve and went on to offer his opponent three set points with an unforced error two games later. Djokovic hit a return winner on the first, wrapping up the set in 33 minutes.
The 22-year-old Serb stayed on top in the second set, winning the first two games to love and breaking Nadal in the second with a forehand winner.
Nadal, who won the French Open four times but never this indoor event, could not recover and a near-faultless Djokovic remained in charge until sealing victory with a superb forehand on the first match point after just 76 minutes.
On Friday, Spain’s Fernando Verdasco grabbed the last remaining spot for the World Tour Finals without playing.
Swede Robin Soderling and Frenchman Jo-Wilfried Tsonga’s defeats in the quarterfinals meant Verdasco became the eighth player to qualify for the season finale.
Verdasco, who lost in the third round in Paris, joins Federer, Nadal, Djokovic, Andy Murray, Juan Martin del Potro, Andy Roddick and Davydenko at the London event.
Nadal silenced a partisan crowd on Friday by knocking out Paris title holder Tsonga 7-5, 7-5. Djokovic had earlier ruined Soderling’s hopes with a 6-4, 1-6, 6-3 victory.
Monfils, seeded 15th, made sure there would be a French presence in the last four by recovering from a set down to oust 12th seed Marin Cilic of Croatia 3-6, 6-4, 6-4.
The gifted but erratic Monfils worried his fans at first with clumsy errors but then stepped up a gear and thrilled a raucous 14,000 crowd with astonishing winners.
Stepanek, the 13th seed, qualified the easy way when US Open champion del Potro, who was hampered by an abdominal strain and was trailing 0-4, retired.
Argentine Del Potro, the world No. 5 who had survived seven match points before Chilean Fernando Gonzalez retired in their third-round match late on Thursday, clearly struggled to move around the court before quitting.

Nadal to play Djokovic in Paris Masters semi-final

Nadal to play Djokovic in Paris Masters semi-final

Second seed Rafael Nadal beat title-holder Jo-Wilfried Tsonga 7-5, 7-5 on Friday, setting up a Paris Masters semi-final clash with third seed Novak Djokovic.
Djokovic had earlier defeated Robin Soderling of Sweden 6-4, 1-6, 6-3 in the first of the day’s quarterfinals to reach the last four in Paris for the first time.
Frenchman Tsonga was seeking to become the first man to successfully defend the prestigious Bercy title that traditionally brings down the curtain on the ATP regular season.
And he got off to a storming start in front of a packed Bercy Stadium by holding his serve to love and then procuring two break points on Nadal’s following serve.
But he was unable to convert any of those as the gritty Nadal, who saved five match points against Nicolas Almagro in the third round on Wednesday and narrowly escaped against Tommy Robredo on Thursday, hung on to level.
Tsonga let slip three more break points in the sixth game and was made to pay the price five games later when a resurgent Nadal grabbed the first break of the match with a stinging forehand drive that the net-bound Tsonga volleyed long.
The Spaniard duly pocketed the set on his own serve.
The second set followed a near identical pattern to the first with Tsonga holding serve comfortably earlier on and Nadal having a harder time of it.
But once again in the 11th game, Tsonga’s concentration wavered resulting in unforced errors that handed Nadal the break of serve he needed.
The Spaniard had no trouble putting the match away as Tsonga’s game fell apart and the title he won superbly last year was taken from him.
Djokovic’s win over Soderling wrecked the Swede’s hopes of a first-ever appearance in the ATP Tour Finals.
Soderling, who made the final of the French Open the last time he played in Paris in June, went into the match knowing that he needed to at least reach the final here to clinch the remaining spot in the season-ending tournament.
He did just fine in the second set which he won 6-1 after dropping the first, but in a tense decider he was the first to crack on serve in the eighth game when two unforced errors on the backhand side followed by a double fault gave Djokovic three breakpoints.
Soderling saved the first of these, but then netted a weak backhand to hand the break to the third seed who made no mistake in serving out for the match.
The remaining two quarterfinals on Friday see France’s Gael Monfils take on Marin Cilic of Croatia followed by U.S. Open champion Juan Martin del Potro of Argentina against Radek Stepanek of the Czech Republic.
The losses for Tsonga and Soderling meant that Spain’s Fernando Verdasco was assured of the eighth and final spot in the November 22-29 ATP Tour Finals in London.
The other players qualified for that are Nadal, Djokovic, Roger Federer, Andy Murray, Juan Martin del Potro, Andy Roddick and Nikolay Davydenko.

Safin bids farewell to tennis in Paris

Safin bids farewell to tennis in Paris


Marat Safin of Russia holds the key of the Paris Bercy stadium as he poses with other tennis players after his match against Juan Martin Del Potro of Argentina in the Paris Masters Series tennis tournament November 11, 2009. Safin played his last professional tennis match. [Agencies]
Well known for furious rants, throwing his racket and a rock ‘n’ roll lifestyle, Marat Safin would rather remember the hard work he put in during a 12-year career marked by two Grand Slam titles and a Davis Cup win.
The former No. 1 ended his career Wednesday after losing to Juan Martin del Potro 6-4, 5-7, 6-4 in the second round of the Paris Masters.
“A lot of people there really thought that I’m not a really hard worker,” Safin said. “But you can ask all my coaches how I dedicated myself to tennis. They will tell you it’s completely the opposite of what a lot of people think.”
The 29-year-old Safin first made headlines in 1998 when he reached the fourth round at the French Open with victories over Andre Agassi and Gustavo Kuerten. He won his first ATP title the year after, and then claimed his first major at the 2000 US Open with a victory over Pete Sampras in the final.
Safin reached No. 1 in November 2000 before injuries and other issues prevent him from lasting too long at the top of the rankings. He lost two major finals before adding a second Grand Slam title at the 2005 Australian Open.
Safin, who said he will miss high-level competition, is relieved he won’t have to deal with injuries and pressure anymore.
“You are completely stressed 24-7,” the 65th-ranked Russian said. “This is what I hate about it. It’s just too much. There is no rest for the brain at all. Once you are top 10, and then you can drop to 150. And it’s difficult to comeback. It’s a very tough living.”
Hailed by many observers as the most talented player of the decade along with current No. 1 Roger Federer, Safin doesn’t have so many regrets about his career but would love to be able to change the outcome of two painful defeats.
“French Open semifinals against (Juan Carlos) Ferrero and Australian Open final against (Thomas) Johansson,” said Safin, remembering losses dating back to 2002.
That year, the Russian was beaten by Johansson in four sets on his 22nd birthday, but also gave Russia a Davis Cup win over France in Paris.
“It’s where I started and where I finished,” Safin said about the French capital. “I couldn’t have found a better place to (retire). French people have been great to me. Great fans, great spectators. They perfectly understand tennis.”
Safin, a three-time winner at the Paris Masters, captured 15 singles titles during his career. But the charismatic Russian hasn’t won a tournament since his Australian Open victory in 2005. His best result this year was reaching the semifinals in St. Petersburg, Russia, last month.
“Today I will put all my memories, all my wins and losses in a small box,” Safin said during a small ceremony where he received a special trophy. “Today a door is closed, hopefully another one will open.”
Safin was joined on the court by several current and former players, including Marc Rosset, Younes El Aynaoui and Albert Costa.
“It’s really a special feeling to see Younes, Marc and Alberto here,” Safin said. “We had some fun together. For me it means a lot that they came to say goodbye.”
Safin, whose outspokenness will be missed on the tour, also teased some of the players who came to greet him.
“Of course it’s very nice to see all the people coming to the court,” Safin said. “And I hope the ATP people didn’t push them to do that. Because I didn’t expect some of them to be here.”
For his last match, Safin gave the Parisian crowd a perfect picture of his style, with terrific winners from the baseline, a fine touch at the net, strong first serves but also horrendous unforced errors and a throwing of the racket.
In the first set, he missed a chance to break Del Potro when the fifth-seeded Argentine served a winner to level at 3-3. Safin then lost his serve after sending a forehand wide and Del Potro concluded the set with a service winner.
Safin then saved a break point at 5-5 in the second set and earned three set points when Del Potro sent a forehand in the net. Del Potro survived the first one with a service winner but was left stranded by Safin’s forehand winner on the next point.
In the decider, Del Potro broke for a 2-1 lead and finished Safin off on his second match point with an ace.
Del Potro congratulated Safin at the net while the audience gave the Russian a standing ovation.
Safin remained unclear about his projects for the future but said he won’t take any vacation before next summer.
“Sportsmen are great when they are sportsmen,” Safin said. “Afterwards, it’s a little bit tough for them. The transition from being a tennis player to do something else is difficult. And if time passes too much, you’re just an ex-tennis player.”

Federer upset by Benneteau in Paris Masters

Federer upset by Benneteau in Paris Masters


Roger Federer of Switzerland leaves the court after by defeated by Julien Benneteau of France in the Paris Masters tennis tournament November 11, 2009.(Xinhua/Reuters Photo)
World number one Roger Federer was stunned by unseeded Frenchman Julien Benneteau 3-6, 7-6(4), 6-4 in the second round at the Paris Masters tennis tournament on Wednesday.
Federer’s exit capped a dramatic day at the Bercy arena, where Rafael Nadal saved five match points to beat Spanish compatriot Nicolas Almagro, and former three-time champion Marat Safin bid farewell to the tennis circuit.
The Swiss master looked on course for another easy victory after cruising through the first set but came unstuck in the second as uncharacteristic errors began to creep into his game.
And the Frenchman started to find his range, dominating the tiebreaker of the second set, leveling the match with a low return that landed just inside the baseline.

Julien Benneteau of France reacts during his match against Roger Federer of Switzerland in the Paris Masters tennis tournament November 11, 2009.(Xinhua/Reuters Photo)
Benneteau, the world number 49, was roared on by his home crowd and secured the result of his life with an ace after bringing up match point by rattling a crosscourt backhand past the 15-time Grand Slam-winner.
“He was very strong at the end,” said Federer of his 27-year-old opponent, who has never won an ATP title.
“Even in the second set, I don’t think I had a break point.
“I can definitely play better but I can also play much worse. It wasn’t a bad performance. Julien went out and got the victory. I had chances and missed them.”
Benneteau’s next opponent will be countryman Gael Monfils, the 15th seed, who beat David Guez 6-4, 7-5.
Nadal, who has never won the Paris Masters, edged Almagro 3-6, 7-6(2), 7-5, saving all the match points at the end of the second set.
“I am very lucky to be in (the next) round,” Nadal said. “I played bad. I won. That’s one positive thing that I had all my career, and it’s important (I) don’t lose this ability to win matches when you are not playing really well.”

Rafael Nadal of Spain returns a shot to compatriot Nicolas Almagro during their match in the Paris Masters Series tennis tournament November 11, 2009.(Xinhua/Reuters Photo)
Nadal will now face another Spaniard in the form of 14th seed Tommy Robredo.
The world’s top five players were all in action on Wednesday, with Novak Djokovic and Juan Martin Del Petro both joining Nadal in round three ahead of fourth seed Andy Murray’s opening match against America’s James Blake.
Swedish ninth seed Robin Soderling kept alive his hopes of snatching a place at the ATP World Tour Finals in London by defeating Croatia’s Ivo Karlovic 6-4, 7-6(6).

Tsonga fit to defend Paris Masters title

Tsonga fit to defend Paris Masters title

Jo-Wilfried Tsonga is fit to begin the defence of his Paris Masters title on Tuesday after picking up a wrist injury last week.
“I played yesterday and today and it felt okay,” the Frenchman told reporters on Monday.
Tsonga was forced to retire from his first-round match against Russia’s Mikhail Youzhny in Valencia last week.
The world number nine needs to win in the French capital to stand any chance of qualifying for the Nov. 22-29 World Tour Finals in London.
“I’m excited to be back here, I love the atmosphere and I’ll give it my very best,” said Tsonga. “I’ve got nothing to lose.”
The 24-year-old, who has a first-round bye in Paris, starts his campaign against Spain’s Albert Montanes.
Six players have already qualified for the eight-man season finale in London. The last two places are up for grabs in Paris with Russia’s Nikolay Davydenko and Spaniard Fernando Verdasco first in line.