Laws of the People's Republic of China

No.51

The Amendments to the Criminal Law of the People's Republic of China (VI), adopted at the 22nd meeting of the Standing Committee of the Tenth National People's Congress on June 29, 2006 are hereby promulgated and shall go into effect as of the date of promulgation. President of PRC, Hu Jintao

June 29, 2006

Amendments to the Criminal Law of the People's Republic of China (VI)

(Adopted at the 22nd meeting of the Standing Committee of the Tenth National People's Congress on June 29, 2006)

I.

Article 134 of the Criminal Law is amended to as: "Anyone who violates the provisions on the safety management in production or operations and thus leading to any serious accidents of death and injury or any other serious consequences, shall be sentenced to not more than three years of fix-term imprisonment or criminal detention. If the circumstances are particularly serious, he shall be sentenced to fix-term imprisonment of not less than 3 years but not more than 7 years.

"In case anyone forces any other person to take a risk of working in violation of the related regulations so that any serious accidents of death and injury or any other serious consequence is caused, he shall be sentenced to not more than five years of fix-term imprisonment or criminal detention. If the circumstances are particularly serious, he shall be sentenced to five years or more of fix-term imprisonment."

II.

Article 135 of the Criminal Law is amended to as: "In case the facilities or conditions for safe work fail to meet the related provisions of the state and lead to any serious accidents of death and injury or any other serious consequences, the directly liable persons-in-charge and other directly liable persons shall be sentenced to not more than three years of fixed-term imprisonment or criminal detention. If the circumstances are particularly serious, he shall be sentenced to three years to seven years of fix-term imprisonment."

III.

There is an article added to the end of Article 135 as Article 135 (I): "In case any of the provisions on safety management is in violation of holding large-scale mass activities and any serious casualty or any other serious consequence is caused accordingly, the directly liable persons-in-charge and other directly liable persons shall be sentenced to not more than three years of fixed-term imprisonment of or criminal detention. If the circumstances are particularly serious, they shall be sentenced to three years to seven years of fixed-term imprisonment."

IV.

There is an article added to the end of Article 139 as Article 139 (I): "After any safety accident happens, if the person responsible for reporting it fails to report it or provides false report of the situation so that the rescue of the accident is bungled and if the circumstances are serious, he shall be sentenced to not more than three years of fixed-term imprisonment or criminal detention. If the circumstances are particularly serious, he shall be sentenced to not less than three years but not more than seven years in prison."

V.

Article 161 of the Criminal Law is amended to as: "If any company or enterprises, which has the responsibility of information disclosure, provides any financial and accounting report which is false or conceals any important facts to its shareholders and the general public, or . fails to disclose any other important information in accordance with the provisions so that serious damages are caused to the interests of the shareholders or any other person, or any other serious circumstances exist, the directly liable persons-in-charge and other directly liable persons shall be sentenced to not more than three years of fix-term imprisonment or criminal detention, and/or shall be imposed upon to a fine of not less than 20,000 Yuan but not more than 200,000 Yuan."

VI.

There is an article added to the end of Article 162 (I) as Article 162 (II): "If any company or enterprise transfers or disposes of its properties by concealing its properties or undertaking fabricated debts or by any other means or implement false bankruptcy so that serious damages are caused to the interests of the creditors or any other persons, the directly liable persons-in-charge and other directly liable persons shall be sentenced to not more than five years of fixed-term imprisonment or criminal detention, and/or shall be imposed upon to a fine of not less than 20,000 Yuan and not more than 200,000 Yuan."

VII.

Article 163 of the Criminal Law is amended to as: "If any staff of any company, enterprise or other units ask for or illegally accept properties from other persons taking advantage of job convenience, and seek benefits for other persons, and in case the properties involved is of a relatively large amount , he shall be sentenced to not more than five years of fixed-term imprisonment or criminal detention. If the amount is huge, he shall be sentenced to less than five years of fixed-term imprisonment and confiscation of property.

"If the staff of any company, enterprise or any other units, in the course of economic intercourses, accept kickbacks and commission charge in various forms taking advantage of job convenience in violation of the provisions of the state for his personal ownership, he shall be punished in accordance with provisions under the preceding paragraph.

"Anyone engaging in public services in any state-owned corporations, enterprise or other state-owned units and anyone assigned by state-owned companies, enterprises and other state-owned units to non-state-owned companies, enterprises and other units to engage in public service found to be committing the acts mentioned in the two preceding paragraphs, shall be convicted and punished in accordance with Articles 385 and 386 of the present Law."

VIII.

Paragraph 1, Article 164 of the Criminal Law is amended to as: "Anyone who gives a relatively large amount of property to the staff of any company, enterprise or other units so as to seek unwarrantable benefits shall be sentenced to not more than three years of fixed-term imprisonment or criminal detention. If the amount is huge, he shall be sentenced to not less than three years but not more than ten years in prison, and shall be imposed upon a fine."

IX.

There is an article added to the end of Article 169 of the Criminal Law as Article 169 (I): "If any director, supervisor or senior manager of a listed company violates his fiduciary duty to the company and manipulate the listed company to pursue any of the following behaviors taking advantage of job convenience ,causing any serious loss to the interest of the listed company, he shall be sentenced to not more than three years of fixed-term imprisonment or criminal detention, and/or shall be imposed upon to a fine. If the listed company thus suffers from a particularly huge loss, he shall be sentenced to not less than three years but not more than seven years in prison, and shall be imposed upon a fine:

(1)

Providing any fund, commodity, service or any other asset gratuitously to any other unit or individual;

(2)

Providing or accepting any fund, commodity, service or any other asset with obviously unfair terms;

(3)

Providing any fund, commodity, service or any other asset to any unit or individual obviously without the ability of repayment .;

(4)

Providing any guarantee to any unit or individual obviously without the ability of repayment , or providing guarantee to any other unit or individual without due reasons;

(5)

Giving up credit or assumption of debts without due reasons; or

(6)

Causing damage to the interests of the listed company by any other means.

If the controlling shareholder or actual controller of a listed company instigates any of the directors, supervisors, or senior managers of the listed company to conduct any of the acts as described in the preceding paragraph, it or he shall be punished in accordance with the provisions of the preceding paragraph.

If the controlling shareholder or actual controller of the listed company committing the acts as described in the preceding paragraph is a unit, the unit shall be imposed upon a fine and the directly liable persons-in-charge and other directly liable persons shall be punished in accordance with the first paragraph herein."

X.

There is an article added to the end of Article 175 as Article 175 (I): "If anyone obtains any loan, acceptance of any instrument, letter of credit, letter of guarantee, etc. by means of deception from any bank or any other financial institution so that any serious loss is caused to the bank or financial institution or any other serious circumstances exist, he shall be sentenced to not more than three years of fixed-term imprisonment or criminal detention, and/or shall be imposed upon to a fine. If a particularly large loss is caused to the bank or any other financial institution or if there is any other particularly serious circumstance, he shall be sentenced to not less than three years but not more than seven years in prison, and shall be imposed upon to a fine.

"Any unit committing the acts as described in the preceding paragraph shall be imposed upon to a fine, and the directly liable persons-in-charge and other directly liable persons shall be punished in accordance with the provisions of the preceding paragraph."

XI.

Article 182 of the Criminal Law is amended to as: "The person who manipulates the securities or futures market, if the circumstances are serious, shall be sentenced to not more than five years of fixed-term imprisonment or criminal detention, and/or shall be imposed upon to a fine. If the circumstances are particularly serious, he shall be sentenced to not less than five years but not more than 10 years in prison, and shall be imposed upon to a fine, in case any of the following circumstances arises:

(1)

Centralizing one's predominance in capital, shareholding and warehousing or taking advantage of information predominance to jointly or continuously buy and sell securities and futures, manipulating the trading prices or the trading volume of securities and futures, either on one's own or by conspiring with other people;

(2)

Affecting trading prices or volumes of securities and futures by colluding with other persons, conducting securities or futures transactions with each other at a predetermined time and price and in a predetermined way.;

(3)

Affecting trading prices or volumes of securities and futures by conducting securities transactions among the accounts under the actual control of the same person or regarding oneself as the trading object, buying and selling futures contracts from and to himself; or

(4)

Manipulating the securities or futures markets by any other means.

If any unit commits the acts as described in the preceding paragraph, the unit shall be imposed upon a fine, and the directly liable persons-in-charge and any other liable persons shall be punished in accordance with the provisions of the preceding paragraph."

XII.

There is an article added to the end of Article 185 as Article 185 (I): "Any commercial bank, stock exchange, futures exchange, securities company, futures brokering company, insurance company, or any other financial institution in violation of its fiduciary duty, utilizes the funds or any other consigned or entrusted property of its clients on itself, if the circumstances are serious, shall be imposed upon a fine, and the directly liable persons-in-charge and other directly liable persons shall be sentenced to not more than three years of fixed-term imprisonment or criminal detention, and shall be imposed upon to a fine of 30,000 Yuan up to 300,000 Yuan. If the circumstances are particularly serious, he shall be sentenced to f not less than three years but not more than ten years in prison, and shall be imposed upon to a fine of 50,000 Yuan up to 500,000 Yuan.

"In case of any public fund management institution such as a social security fund management institution or housing accumulation fund management institution, or any insurance company, insurance asset management company, or securities investment fund management company violates the provisions of the state in its use of funds, the directly liable persons-in-charge as well as other directly liable persons shall be punished in accordance with the provisions of the preceding paragraph."

XIII.

Paragraphs I and II of Article 186 of the Criminal Law are amended to as: "If the staff of any bank or other financial institution offers any loan in violation of the provisions of the state and the amount is huge or any serious loss has caused, he shall be sentenced to not more than five years of fixed-term imprisonment or criminal detention, and shall be imposed upon to a fine of 10,000 Yuan up to 100,000 Yuan. If the amount is particularly huge or particularly serious losses have been caused, he shall be sentenced to more than five years of fixed-term imprisonment, and shall be imposed upon to a fine of 20,000 Yuan up to 200,000 Yuan.

"Any staff of any bank or other financial institution in violation of the provisions of the state to offer loans to any of his relatives, shall be punished in accordance with the provisions of the preceding paragraph."

XIV.

Paragraph I of the Article 187 of the Criminal Law is amended as: "If any staff of any bank or other financial institution accepts the money of any client without writing it into the accounts, and if the sum is huge or if any serious loss has caused, he shall be sentenced to not more than five years of fixed-term imprisonment, and shall be imposed upon to a fine 20,000 Yuan up to 200,000 Yuan. If the sum is particularly huge or the losses are particularly serious, he shall be sentenced to five years or more in prison, and shall be imposed upon to a fine of 50,000 Yuan up to 500,000 Yuan."

XV.

Paragraph I of Article 188 of the Criminal Law is amended to as: "If the staff of any bank or any other financial institution in violation of the provisions when issuing any letter of credit, letter of guarantee, instrument, certificate of deposit, certification of credit, etc. for any other person, and if the circumstances are serious, he shall be sentenced to not more than five years of fixed-term imprisonment or criminal detention. If the circumstances are particularly serious, he shall be sentenced to five years or more in prison."

XVI.

Paragraph I of Article 191 of the Criminal Law is amended as: "If anyone who is clearly aware that the earnings are obtained from drug-related crime, organizational crime of any gangland, terrorist crime, crime of smuggling, crime of corruption or bribery, crime of disrupting the financial management order, crime of financial fraud, etc. as well as that the incomes are generated therefrom, yet commits any of the following acts so as to conceal and disguise the origin or nature thereof, the incomes obtained from the commission of the aforementioned crimes as well as the incomes generated therefrom shall be confiscated, and the criminal shall be sentenced to not more than five years of fixed-term imprisonment or criminal detention, and/or shall be imposed upon to a fine of 5% up to 20% of the amount of laundered money. If the circumstances are serious, he shall be sentenced to not less than five years but not more than ten years in prison, and shall be imposed upon to a fine of 5% up 20% of the amount of laundered money:

(1)

Providing any capital account;

(2)

Assisting to transfer property into cash, financial instruments, or negotiable securities;

(3)

Assisting to transfer capital by means of transfer accounts or any other means of settlement;

(4)

Assisting to remit capital abroad;

(5)

Concealing and disguising the origin or nature of any crime-related earnings or the incomes generated therefrom by any other means."

XVII.

There is an article added to the end of Article 262 of the Criminal Law as Article 262 (I): "Anyone who organizes any disabled person or any juvenile below the age of 14 by force or coercion to beg, shall be sentenced to not more than three years of fixed-term imprisonment or criminal detention, and shall be imposed upon to a fine. If the circumstances are serious, he shall be sentenced to not less than three years not more than seven years in prison, and shall be imposed upon to a fine."

XVIII.

Article 303 of the Criminal Law is amended as: "Anyone who, for the purpose of making profits, assembles a crow to engage in gambling or makes a gambling his occupation, shall be sentenced to not more than three years of fixed-term imprisonment criminal detention, or surveillance, and shall be imposed upon to a fine.

"Anyone who sets up any casino shall be sentenced to not more than three years of fixed-term imprisonment, criminal detention, or surveillance, and shall be imposed upon to a fine. If the circumstances are serious, he shall be sentenced to not less than three years but not more than ten years in prison, and shall be imposed upon to a fine."

XIX.

Article 312 of the Criminal Law is amended as: "If anyone who is clearly aware that the earnings are obtained through crimes as well as that the incomes are generated therefrom yet conceals, transfers, purchases, or acts as an agent to sell them or conceals and disguises them by any other means, he shall be sentenced to not more than three years of fixed-term imprisonment, criminal detention, or surveillance, and/or shall be imposed upon to a fine. If the circumstances are serious, he shall be sentenced to not less than three years but not more than seven years in prison, and shall be imposed upon to a fine."

XX.

There is an article added to the end of Article 399 of the Criminal Law as Article 399 (I): "If anyone who undertakes the duties of arbitration in accordance with law makes any wrongful ruling purposely in violation of the facts and laws in the activities of arbitration, in case the circumstances are serious, he shall be sentenced to not more than three years of fixed-term imprisonment or criminal detention. If the circumstances are particularly serious, he shall be sentenced to not less than three years but not more than seven years in prison."

XXI.

The present Amendments shall go into effect as of the date of promulgation.