Laws of the People's Republic of China

    In order to strengthen the administration of investment contributions made
by investors of foreign investment enterprises (including those foreign
investment enterprises established by purchasing assets or stocks of internal
enterprises), these Supplementary Provisions are hereby formulated as follows
to the Several Provisions Concerning the Investment Made by the Various
Parties to Chinese-foreign Equity Joint Ventures.

    1. Any foreign investor who establishes a foreign investment enterprise by
purchasing assets or stocks of an internal enterprise(s) shall pay fully
purchasing charges within three months as of the date the business licence of
the said foreign investment enterprise is issued. If extension of payment is
required due to special circumstances, after approved by the examining and
approving authorities, more than 60% of the total amount of the purchasing
charges shall be paid within six months as of the date the business licence is
issued, and within one year the total amount shall be paid up; the
distribution of profit shall be made in proportion as the actual payment of
investment contributions. Unless the total amount of the purchasing charges
has been paid up, any holding investor may not have the enterprise's
decision-making power, nor he may in the form of a combination statement
incorporate rights and interests or assets of the said enterprise into his
accounting statement.

    2. Investors in a Chinese-foreign equity joint venture must simultaneously
pay up their respective investment contributions according to the percentage
and deadline stipulated in the contract. If any of them cannot do so, the case
shall be reported to the original examining and approving authorities for
approval and the distribution of profit be made according to the percentage of
the actual payment of his investment contributions. With regard to the holding
(including relatively holding) investor in a Chinese-foreign equity joint
venture, before the actual payment of his investment contributions attains his
total amount of his subscribed payment, he shall not obtain the enterprise's
decision-making power, nor he can in the form of a combination statement
incorporate rights and interests or assets of the said enterprise into his
accounting statement.

    3. Chinese-foreign contractual joint ventures and solely foreign invested
enterprises shall be handled with reference with these Provisions.