Laws of the People's Republic of China

Shang Zi Tong Jin Fa [2003] No. 510

Each foreign trade and economic cooperation commission (department or bureau) of each province, autonomous region, municipality directly under the Central Government, and city separately designated in the state plan,

For the purpose of regulating the statistical work for the absorption of foreign investments, the former Ministry of Foreign Trade and Economic Cooperation in collaboration with the National Bureau of Statistics issued the Statistical Rules for the Utilization of Foreign Investments. The said Statistical Rules for Foreign Investments have played an important role in promoting and intensifying the statistical work for foreign investments all over the country. In recent years, some new features and new forms have appeared in our country's absorption of foreign investments, the existing rules are difficult to meet the needs of the statistical work of foreign investments.

On the basis of summarizing the past work experience, using the principle of the International Monetary Fund for reference, deeply hearing the opinions of the local commerce administrative departments and statistical departments, we make amendment on the former Statistical Rules in order to enhance the quality of the statistical data of foreign investments and provide an accurate basis for the administration of foreign investments. The Statistical Rules for Foreign Investments (attached) are hereby printed and distributed to you, please comply with them and timely report to us any problem arising during the course of implementation. The former Statistical Rules for the Utilization of Foreign Investments shall be revoked as of the date of promulgation of this Circular.

Ministry of Commerce

National Bureau of Statistics

December 31, 2003

Statistical Rules for Foreign Investments

(Ministry of Commerce and National Bureau of Statistics December 2003)

Chapter I General Provisions

Article 1

In order to scientifically and effectively organize the statistical work of foreign investments throughout the country, the present Rules are constituted under the Statistics Law of the People's Republic of China and the Detailed Rules for carrying out the Statistics Law of the People's Republic of China, and the laws and regulations of the state on utilizing foreign investments.

Article 2

The basic tasks of the statistical work of foreign investments: to reflect the all-around information about the absorption of foreign investments in a timely and accurate way, to systematically make statistical investigations into and statistical analyses of the foreign investment agreements and contracts approved by the state and the actual execution of these agreements and contracts, and the economic benefits derived therefrom, to make statistical supervision, to provide statistical information and statistical consultation for the economic management and macro-resolutions of the state and the government departments at all levels, and to provide services for foreign exchange.

Article 3

The present Rules shall be applicable to the local commerce administrative departments at all levels, the state's comprehensive departments and entities with utilization of foreign investments, and the foreign-funded enterprises and cooperative development projects within China.

Statistical materials shall be provided by the aforesaid departments, entities and enterprises under the Statistics Law of the People's Republic of China as well as the present Rules. Any statistical materials may not be made any false report, concealed, refused to report, delayed to report, forged or changed by any of them.

Article 4

The statistical rules for foreign investments shall be constituted by the Ministry of Commerce in collaboration with the National Bureau of Statistics. The commerce administrative departments at all levels shall organize, coordinate and administer the statistical work of foreign investments and the statistical institutions of the governments of the same level shall give direction. The Ministry of Commerce shall take charge of the collection, announcement and foreign exchange of statistical materials of foreign investments all over the country upon authorization of the State Council.

Article 5

The statistical work of foreign investments shall comply with the uniform leadership and level-by-level management. The present Rules shall govern the formats, indicators as well as computation criterions of the national statistical statements of foreign investments. If any place or department needs to make a special statistical investigation not covered by the present Rules, it shall be approved by the statistical institution and shall give a report to the Ministry of Commerce and the National Bureau of Statistics to put on records.

Chapter II Statistical Scope and Main Contents

Article 6

Under the existing policies and regulations of the state on foreign investments, the statistical scope of foreign investments consists of the direct investments and other investments of foreign investors.

Article 7

The term "foreign investment" as mentioned in the present Rules means the investments in cash, kind, intangible assets, etc. made by legal persons and natural persons from abroad and from Hong Kong, Macao and Taiwan region in the mainland of China. Among such investments, the direct investments of foreign investors mean the total investments made by foreign investors in non-listed companies, as well as the investments made by a single foreign investor in a listed company and accounting for 10% or more of the equities of this listed company; the other investments are other investments of foreign investors.

Article 8

For the purpose of converging to the international statistical system, the decision on the sources of foreign investments shall be made in the present Rules make in accordance with countries or regions where the investors are registered.

Article 9

The foreign investment statistical statements consist of the grassroots statistical statements of foreign investments and the comprehensive statistical statements of foreign investments.

The main contents of the grassroots statistical statements of foreign investments consist of,

(1)

The statement of the approval certificates of enterprises invested by foreign investors (Taiwan, Hong Kong and Macao investors), of which the contents shall be consistent with the contents of the counterfoils of the said approval certificates, consisting of the attributes of foreign invested enterprises, foreign investment funds under the contracts and the sources thereof.

(2)

The statistical statement of the actual investments to the enterprises invested by foreign investors (Taiwan, Hong Kong and Macao investors), consisting of the actual investments occurred during the current period and the detailed classification thereof.

(3)

The statistical statement of the status quo of business operations of enterprises invested by foreign investors (Taiwan, Hong Kong and Macao investors), consisting of the indicators for the assets, liabilities, business proceeds, personnel, import and export of the enterprises.

The List of Statistical Statements of Foreign Investments and the explanatory notes of the statements are integral parts of the present Rules.

Chapter III Submission, Management and Announcement of Statistical Materials.

Article 10

The local commerce administrative departments at all levels and the related comprehensive departments and entities with utilization of foreign investments shall make collection, examination, summary, formulation and report on the related statements in time, and do well in managing and comprehensively analyzing the statistical materials of foreign investments at the same time.

Article 11

When a foreign-funded enterprise is set up upon approval, it shall handle the statistical registration procedures in the foreign-funded approval department. The statistical materials shall be provided and the statistical statements shall be filled in accordance with the Statistics Law of the People's Republic of China as well as the present Rules. In accordance with the statistical investigation tasks, a foreign-funded enterprise shall equip with professional personnel or designate part-time statistical personnel. The statistical work of foreign investments shall start from the approval of setting up this enterprise or from the approval of the agreement or contract, and end at the time of termination of the enterprise or at the time of completion of implementing the agreement or contract.

Article 12

The statistical statements of foreign investments shall be reported, in the form of central database management on the basis of on-line transmission, by the commerce administrative departments at all levels to the commerce departments at the next higher level. Such statements shall be reported by a provincial commerce administrative department to the Ministry of Commerce and a copy shall be sent to the statistical bureau at the same level.

The statistical statements of foreign investments in the banking, securities and insurance sectors shall be summarized by China Banking Regulatory Commission, China Securities Regulatory Commission as well as China Insurance Regulatory Commission and shall be reported to the Ministry of Commerce.

Article 13

The Ministry of Commerce shall verify and check the statistical data reported by all places in order to make sure the continuity, accuracy and seriousness of the statistical data of foreign investments.

Article 14

When making public announcement or provision of statistical materials of foreign investments to outside, the local commerce administrative departments at all levels shall keep state secrets and business secrets of the enterprises and strictly abide by the Statistics Law of the People's Republic of China, Detailed Rules for Carrying Out the Statistics Law of the People's Republic of China, and the related provisions of the state.

Chapter IV Statistical Organizations and Statistical Personnel

Article 15

The leadership to the statistical work of foreign investments shall be enforced , and a corresponding organization or staff full-time statistical personnel according to the actual needs shall be set up by the local commerce administrative departments at all levels , and the statistical personnel of foreign investment shall be kept relatively stable.

Article 16

The statistical personnel of foreign investments shall be qualified with the professional knowledge to meet the needs of the statistical work. The professional skill training of the statistical personnel of foreign investments shall be strengthened by the local commerce administrative departments at all levels.

Article 17

Under the Statistics Law of the People's Republic of China, the statistical personnel of foreign investments may require the related entities and personnel to provide statistical materials in accordance with the provisions of the state, examine the accuracy of the statistical materials, correct the uncertain statistical materials, and expose any violation in the statistical work.

Article 18

For any functionary of a local commerce administrative department makes any false report, conceals, forges, alters, refuses to report, or delays the report of any statistical materials, if the situation is serious, the department for which he working in shall give him an administrative punishment or make suggestions to the related department to give him an administrative punishment, and the commerce administrative department at or above the county level shall, in collaboration with the statistical bureau at the same level, give him criticism by circulating a notice.

For any foreign-funded enterprise committing any of the violations mentioned above, if the situation is serious, the commerce administrative department at the county level or above shall suggest the statistical bureau at the same level to give him a warning, and may give him a punishment in accordance with the related provisions of the state.

Article 19

For anyone who formulates or announces any statistical statements of foreign investments or who announces any statistical materials of foreign investments without approval of the department taking charge of the statistical work of foreign investments, he shall be ordered to make a correction by the commerce administrative department at or above the county level in collaboration with the statistical bureau at the same level and shall be criticized by circulating a notice.

Chapter V Supplementary Provisions

Article 20

The statistical currency of foreign investments shall be USD. The transfer rate between the USD and other currencies shall be adopted in accordance with the Table of Internal Uniform Translation Rates between USD and Other Currencies constituted by the State Administration of Foreign Exchange.

Article 21

The present Rules shall adopt the statistical codes in accordance with the Statistical Codes of Countries and Regions constituted by the General Administration of Customs. The sector types shall be adopted in accordance with the Classification of the Industrial Sectors of National Economy (GB/T 4754-2002) of the People's Republic of China.

Article 22

The date of submission of statements may be postponed accordingly during legal holidays (excluding Saturdays and Sundays).

Article 23

The Ministry of Commerce shall have the power to make interpretation on the present Rules.

Article 24

The present Rules shall go into effect as of January 1, 2004. If any former provision is not consistent with the present Rules, the present Rules shall prevail.