Laws of the People's Republic of China

The Ministry of Labor and Social Security, the State Administration for Industry and Commerce

Decree of the Ministry of Labor and Social Security and the State Administration for Industry and Commerce

No.14

The Interim Provisions on the Administration of the Establishment of Chinese-foreign Joint Venture and Chinese-foreign Cooperative Job Intermediary Institutions have been adopted at the 7th executive meeting of the Ministry of Labor and Social Security (MLSS) on May 8, 2001 and, upon the consent of the Ministry of Foreign Trade and Economic Relations (MOFTEC), are hereby promulgated for implementation as of December 1, 2001.

Minister of the Ministry of Labor and Social Security: Zhang Zuoji

Director of the State Administration for Industry and Commerce (SAIC): Wang Zhongfu

October 9, 2001

Interim Provisions on the Administration of Chinese-foreign Joint Venture and Chinese-foreign Cooperative Job Intermediary Institutions

Article 1

These Provisions have been formulated in accordance with the Labor Law, the Law on Chinese-foreign Equity Joint Enterprises and the Law on Chinese-foreign Cooperative Enterprises for the purpose of standardizing the establishment of Chinese-foreign joint venture and Chinese-foreign cooperative job intermediary institutions and protecting the lawful rights and interests of the job seekers and the employing entities.

Article 2

These Provisions shall be observed in the establishment of Chinese-foreign joint venture and Chinese-foreign cooperative institutions for the purpose of job intermediary activities.

Article 3

The administrative departments of labor and social security, the administrative departments of foreign trade and economic cooperation and the administrations for industry and commerce shall, within their respective functions and duties, be responsible for the approval, registration, administration, supervision and inspection of Chinese-foreign joint venture and Chinese-foreign cooperative job intermediary institutions.

In order to set up a Chinese-foreign joint venture and Chinese-foreign cooperative job intermediary institution, the approval of the administrative department of labor and social security of the people's government on the provincial level (hereinafter referred to as labor and social security department) and the administrative department of foreign trade and economic cooperation shall be obtained and registration shall be gone through at the local administration for industry and commerce of the place where the enterprises is to be situated that is authorized by the SAIC. No solely foreign-capital job intermediary institution may be established.

The representative offices of foreign enterprises in China and the foreign chambers of commerce established in China may not engage in any job intermediary activities.

Article 4

The Chinese-foreign joint venture and Chinese-foreign cooperative job intermediary institutions shall carry out their business activities on the basis of law, and their lawful business activities shall be subject to the protection of Chinese law.

Article 5

A Chinese-foreign joint venture or Chinese-foreign cooperative job intermediary institution may be engaged in any and all of the following businesses:

1.

providing intermediary services to the job seekers and employing entities both at home and abroad;

2.

providing services in employment guidance and consultation;

3.

collecting and distributing information about the labor markets;

4.

holding job fairs after obtaining the consent of the department of labor and social security on the provincial level or the department of labor and social security on the prefecture level authorized thereby;

5.

engaging in other services as ratified by the department of labor and social security on the provincial level or the department of labor and social security on the prefecture level authorized thereby;

Relevant provisions of the state shall be applicable to the intermediary services provided by the Chinese-foreign joint venture and Chinese-foreign job intermediary institutions to the Chinese citizens in helping them to seek employment overseas and to the representative offices of foreign enterprises within China in their seeking of Chinese employees.

Article 6

The following conditions shall be satisfied in the application for establishing a Chinese-foreign joint venture or Chinese-foreign cooperative job intermediary institution, and formalities shall be completed in accordance with the procedures as provided in articles 7 and 10 of these Provisions:

1.

The foreign investor that applies for establishing a Chinese-foreign joint venture or Chinese-foreign cooperative job intermediary institution shall be a legal person that is engaged in the job intermediary business and shall have experience in job intermediary services in the country where it is registered and shall have good credit standing;

2.

The Chinese investor that applies for establishing a Chinese-foreign joint venture or Chinese-foreign cooperative job intermediary institution shall be a legal person that is eligible for engagement in the job intermediary business and shall have good credit standing;

3.

The Chinese-foreign joint venture or Chinese-foreign cooperative institution to be established shall have a registered capital of not less than 300,000 USD, 3 or more full-time employees that have the credentials for engaging in the job intermediary services, a definite scope of business, articles of incorporation, rules for management, and fixed offices and facilities necessary for carrying out business. The key business operators shall have experience in providing job intermediary services.

Article 7

To establish a Chinese-foreign joint venture or Chinese-foreign cooperative job intermediary institution, an application shall be filed to the department of foreign trade and economic cooperation on the provincial level of the place where the institution is to be established, and relevant documents of the Chinese-foreign joint venture or Chinese-foreign cooperative institution to be established shall be submitted at the same time.

After having received the application, the department of foreign trade and economic cooperation on the provincial level shall transfer the documents as mentioned below to the department of labor and social security on the same level:

1.

registration certificates of both the Chinese and foreign parties (in photocopy);

2.

career certificates (in photocopy) and resumes of the major business operators;

3.

resumes and employment credentials of the future full-time employees;

4.

certificates for the use of domicile;

5.

certificates of business scope to be engaged in;

6.

other documents as provided in laws or regulations.

Article 8

The department of labor and social security on the provincial level shall, after receiving the documents that have been transferred thereto as pursuant to Article 7 of these Provisions, give a reply within 15 days. If the applicant has satisfied the conditions, a certification document shall be issued for approving the establishment of the Chinese-foreign joint venture or Chinese-foreign cooperative job intermediary institution; where the applicant has not satisfied the conditions, reasons shall be given and the documents as mentioned above shall be returned to the department of foreign trade and economic cooperation on the provincial level.

Article 9

The department of foreign trade and economic cooperation shall, within 30 days after receiving the certification document of the department of labor and social security on the same level approving the establishment of the Chinese-foreign joint venture or Chinese-foreign cooperative institution, decide whether to approve or disapprove. If approval is to be granted, an approval certificate shall be issued to the Chinese-foreign joint venture or Chinese-foreign cooperative institution; if approval is not to be granted, it shall notify the applicant.

Article 10

Any applicant that have obtained approval shall, within 30 days after receiving the certificate of approving the Chinese-foreign joint venture or Chinese-foreign cooperative enterprise, apply for registration at the local administration for industry and commerce of the place where the enterprise is to be situated that has been authorized by the SAIC, and shall, within 10 days after completing the registration, go through the procedures of filing archives at the department of labor and social security on the provincial level or the department of labor and social security on the prefecture level authorized thereby.

Article 11

If there is any change in the investors, proportion of shares of the Chinese-foreign joint venture or Chinese-foreign cooperative job intermediary institution or any branch is to be established, the approving procedures as provided in these Provisions shall be followed so as to obtain the approval of the original approving authority, relevant alteration procedures shall be completed at the administration for industry and commerce, and the procedures for filing archives shall be completed at the department of labor and social security.

Article 12

The Provisions for the Administration of Labor Markets and other relevant provisions for the administration of enterprises with foreign investment shall be applicable to the administration of Chinese-foreign joint venture and Chinese-foreign cooperative job intermediary institutions.

Article 13

These Provisions shall be applicable by reference to the Chinese-foreign joint venture or Chinese-foreign cooperative job intermediary institutions established by investors from the Hang Kong Special Administrative Region, Macao Special Administrative Region or investors from Taiwan within the Mainland of China.

Article 14

These Provisions shall enter into force as of December 1, 2001.