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CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING STRENGTHENING THE ADMINISTRATION OF HOLDING OF FOREIGN ECONOMIC AND TECHNOLOGICAL EXHIBITIONS WITHIN THE TERRITORY OF CHINA

    People's governments of all provinces, autonomous regions and
municipalities directly under the Central Government, all ministries
and commissions under the State Council and all agencies directly under
the State Council:

    Recent years have witnessed rapid growth in the holding of foreign
economic and technological exhibitions (including international exhibitions,
foreign economic and trade talks, export commodities trade fairs and
foreign civilian economic and technological exhibitions in China, etc.)
within the territory of China, which has played a positive role in the
realization of sharing of information resources, reduction of costs in
transactions, promotion of exchanges and cooperation with foreign countries,
introduction of advanced technologies and equipment and promotion of expansion
of foreign trade. However, problems such as examination and approval by
many departments and repetitive holding of exhibitions have emerged. For
the purpose of strengthening the administration of holding of foreign
economic and technological exhibitions within the territory of China,
the related questions are hereby notified as follows:

    I.Holding of foreign economic and technological exhibitions should be
instrumental to the promotion of the development of the cause of foreign
economic cooperation and trade of our country, to the promotion of economic
and technological exchanges and cooperation with foreign countries, to the
introduction of advanced technologies and equipment, to pushing advancement
in production, techniques and technologies in the country and to the
acceleration of upgrading and generational renewal of export products.
Contents to be put on display should be in conformity with the state
industrial policies, of technologies, equipment and finished products
of world advanced levels.

    II.The hosting unit and the sponsoring unit of a foreign economic and
technological exhibition must have the qualifications for hosting and
sponsoring approved by the competent department of foreign economic
cooperation and trade; holding of an economic and technological exhibition
by an external agency in China must proceed with a unit having qualifications
for hosting such an exhibition within the territory of China jointly or with
entrustment to the latter.

    1. Hosting units within the country:

    (1) Exhibition companies or foreign economic and trade companies, agencies
for economic and trade promotion or trade (speciality) associations and
chambers of commerce at the provincial level with the organizational
capability of inviting businessmen and exhibitors and the capability of
bearing civil liabilities in the holding of exhibitions, having specialized
departments or agencies thereunder for the holding of exhibitions and
corresponding specialized personnel for exhibitions (including planning,
design, organization, management and foreign languages), having complete
rules for the holding of exhibitions, and having participated in assisting in
hosting or sponsoring more than five large-scale international exhibitions
may acquire the qualifications for hosting.

    The Ministry of Foreign Trade and Economic Cooperation shall, in
conjunction with the departments concerned, carry out a sorting out and
reverification of the hosting units in the near future, grant the
qualifications for hosting to those units which meet the requirements and
publish the list at intervals. Organs of industry and commerce administration
shall, on the strength of the approval documents of the Ministry of Foreign
Trade and Economic Cooperation, reverify the business scope of the units
concerned.

    (2) Municipal people's governments at the provincial or deputy provincial
level, or the competent departments of foreign trade and economic cooperation
at the provincial level may host foreign economic and trade talks and export
commodities trade fairs.

    (3) Departments under the State Council may, in the name of the respective
departments, host international exhibitions relevant to the business under
their charge.

    2. Overseas host units for the holding of exhibitions in China should be
exhibition agencies, large transnational corporations, economic groups or
organizations (including economic and trade promotion agencies, chambers of
commerce and trade associations, etc.) with appropriate scale, strength for
the holding of exhibitions and good international influence.

    3. Host units shall mainly be responsible for the formulation and
implementation of the exhibition schemes and plans and the organization
for inviting businesses and exhibitors.

    4. Sponsoring units shall mainly be responsible for the arrangement of
the exhibition, security and guard duties and matters relating to the
exhibition. Units qualified for hosting exhibitions have corresponding
qualifications for sponsorship as well; companies concerned may, with the
entrustment of the host unit, undertake single-item business of the
exhibition (including design, arrangement of the exhibition, construction
of the exhibition and advertising).

    5. State-to-state bilateral, multilateral and friendly inter-provincial
and inter-city exhibitions domestic or foreign (including exhibitions on
exchange basis) shall be hosted and sponsored by corresponding units
according to the principle of reciprocity and actual requirements.

    III.Examination, approval and administration at different levels shall be
practised with respect to foreign economic and technological exhibitions the
display floor area of which are more than 1,000 square meters.

    1. International exhibitions and fairs, etc. which really necessitate
hosting in the name of a department under the State Council or in the name
of a people's government at the provincial level must be submitted to the
State Council for approval.

    2. Foreign economic and technological exhibitions hosted by a unit under
the State Council or an overseas agency shall be submitted to the Ministry
of Foreign Trade and Economic Cooperation for examination and approval.
For exhibitions to be held in areas outside Beijing, the host unit must
gain in advance the consent of the department of foreign trade and economic
cooperation of the locality wherein the exhibition is to be held.

    3. Foreign economic and trade talks and export commodities trade fairs
hosted by competent departments of foreign trade and economic cooperation at
the provincial level or hosted jointly by a number of provinces (autonomous
regions or municipalities directly under the Central Government) shall be
subject to the examination and approval of the Ministry of Foreign Trade
and Economic Cooperation. Foreign economic and technological exhibitions
hosted by other units of the localities shall be subject to the examination
and approval of the competent department of foreign trade and economic
cooperation of the province, autonomous region or municipality directly under
the Central Government wherein it is to be held, and concurrently submitted
to the Ministry of Foreign Trade and Economic Cooperation for the record.

    4. The State Commission of Science and Technology shall be responsible
for the examination and approval of the exhibitions with scientific research,
technological exchange and seminars as their contents.

    5. Foreign economic and technological exhibitions to be held under the
chain of the China Council for the Promotion of International Trade shall be
subject to the China Council for the Promotion of International Trade for
examination and approval and concurrently submitted to the Ministry of
Foreign Trade and Economic Cooperation for the record. With respect to
those exhibitions to be held in areas outside Beijing, the host units
should gain in advance the consent of the competent department of foreign
trade and economic cooperation of the locality wherein it is to be held.

    6. Foreign economic and technological exhibition involving participation
of manufacturers or agencies from the Taiwan region shall be subject to
examination and approval of the Ministry of Foreign Trade and Economic
Cooperation and submitted to the Office of Taiwan Affairs under the State
Council for the record. Economic and technological exhibitions of both sides
of the Straits shall be subject to the examination and approval of the
Ministry of Foreign Trade and Economic Cooperation in conjunction with
the Office of Taiwan Affairs under the State Council.

    7. Units with qualifications for hosting foreign economic and
technological exhibitions may hold foreign economic and technological
exhibitions the floor area of which are under 1,000 square meters on their
own which, however, shall be submitted to the competent unit for the record.

    IV.Strengthening coordination and administration, adopting strict
measures for examination and approval, avoiding holding of repetitious
exhibitions and standardizing acts of exhibition.

    1. The number of exhibitions shall be strictly controlled to avoid
repetition and waste, joint exhibitions shall be encouraged and promoted and
holding of specialized exhibitions shall be encouraged. With respect to
exhibitions of same type in the same province, autonomous region and
municipality directly under the Central Government as well as the municipality
of deputy provincial level, not more than two of which may be held each year
in principle.

    2. With respect to a foreign economic and technological exhibition with
the title of an international exhibition, participation by foreign
manufacturers in the exhibition must amount to more than 20%.

    3. Organization for inviting businesses and exhibitors must follow
the principle of voluntary participation by enterprises and no administrative
interference shall be permitted to attract exhibitors; the relevant
advertisements and publicity materials must be truthful and reliable.

    4. The host unit shall, within one month on the completion of the
exhibition, submit a summary report on the exhibition to the unit of
examination and approval in accordance with the contents and requirements
prescribed by the Ministry of Foreign Trade and Economic Cooperation.

    5. Departments of examination and approval must strengthen administration
of the exhibition activities of the host units and sponsoring units, and
maintain normal order in the holding of exhibitions. Exhibitions hosted by
subsidiary units of the departments under the State Council (including the
China Council for the Promotion of International Trade) in localities outside
Beijing shall be administered by the competent departments of foreign trade
and economic cooperation of the localities.

    V.Entry into the country and retention for sale of foreign exhibits in
exhibitions the floor area of which are more than 1,000 square meters
shall be handled by the Customs in accordance with provisions on the strength
of the formal approval documents issued by the units of examination and
approval prescribed in this Circular; those exhibitions the floor area of
which are under 1,000 square meters shall be handled by the Customs in
accordance with provisions on the strength of the applications of the host
units.

    VI.For the holding of a foreign economic and technological exhibition
in violation of the provisions of this Circular as well as indiscriminate
apportionment in the process of holding exhibitions and infringement on the
legitimate rights and interests of the participating units and other acts
in violation of laws and regulations, the Ministry of Foreign Trade and
Economic Cooperation shall nullify the qualifications of the host unit,
and the departments concerned shall seriously conduct investigations and
handle the case in accordance with laws and regulations. With respect to
units without qualifications for hosting or sponsoring foreign economic and
technological exhibitions holding exhibitions without authorization, or
usurping the name of another unit in the holding of exhibitions, the
competent departments of foreign trade and economic cooperation and
organs of industry and commerce administration at all levels shall
investigate and handle the cases according to law.

    VII.The Ministry of Foreign Trade and Economic Cooperation shall be
responsible for the coordination and administration of the holding of
foreign economic and technological exhibitions. All departments concerned
should give full play to their functional roles, strengthen cooperation and
carry out successful joint administration over foreign economic and
technological exhibitions. Information on the examination and approval and
holding of foreign economic and technological exhibitions shall be
circulated at regular intervals and information on exhibitions made public
in the form of joint sessions headed by the Ministry of Foreign Trade and
Economic Cooperation in conjunction with the State Commission of Science
and Technology, the China Council for the Promotion of International Trade
and other units; studies should be made of the situation and problems
emerging in the process of the growth of the foreign exhibition industry,
and timely and effective measures taken to strengthen coordination and
administration; the legitimate rights and interests of units holding
exhibitions and units participating in exhibitions shall be safeguarded
and the healthy development of the foreign exhibition industry ensured; and
the holding of influential foreign economic and technological exhibitions with
characteristics and scale shall be promoted and supported.