Key Laws and Regulations at a Glance 2006

(NPES International E-commerce Website, July 16, 2007) On January 1, amendments to the Company Law came into effect. Eight significant amendments were made, such as reduction in the minimum registered capital, enhancing shareholder's rights and board governance. The amendments to the Company Law represent a significant effort on the part of Chinese legislators to promote a fair and efficient framework for raising investment funds and mediating the interests of shareholders and management of Chinese companies.

On January 1, amendments to the Regulations of the People's Republic of China on Administration of Registration of Companies took in effect. According to the amendments, the State Administration Bureau for Industry and Commerce is responsible for registrations of the companies limited by shares, and 50 percent or above of which are approved to establish by the asset administration and management departments of the State Council, and other companies that should be registered by the State Administration Bureau for Industry and Commerce in accordance with the provisions of law or of the State Council.

On January 1, Provisions of Regulating Markings on Cigarette Packing in China came into effect, and made uniformed requirements on markings on cigarette package selling in mainland China (excluding Hongkong, Macao and Taiwan).

On April 24, the State Administration for Industry and Commerce, Ministry of Commerce, General Administration of Customs, and State Administration of Foreign Exchange jointly printed and distributed the Implementation Opinions on Some Issues Concerning Law Application for the Administration of Examination, Approval and Registration of Foreign-funded Companies (No.81 [2006] of the State Administration for Industry and Commerce. It clearly stipulated that the representative offices of foreign-funded companies are no longer required to go through registration. A representative office that has already been registered is no longer required to goes through the modification or extension formalities.

June 1, the Enterprise Bankruptcy Law of the People's Republic of China was formally put into effect, and Enterprise Bankruptcy Law of the People's Republic of China (For Trial Implementation) was revoked simultaneously.

On July 10, the Provisions on Banning the Entry into the Securities Market entered into effect, and clearly stated that the controlling shareholders or actual controllers, the directors, supervisors or senior managers of the controlling shareholders or actual controllers of an issuer or a listed company are within the personnel who are banned the entry into the securities market.

In July, General Rule on Food Packaging, Container and Tool Production Permit and Rules on Food Plastic Packaging, Container and Tool Production Permit Inspection were promulgated and the market access system for food plastic packaging, container and tool products will officially start up at the end of 2007.

On August 1, the Rules on Administration of Inspection and Supervision on Packaging Containers and Materials for Import and Export Food Stuff issued by the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China came into effect. The regulations aim at ensuring the safety and hygiene of import and export food, and counteracting on Foreign Technical Trade Barriers.

On August 27, Partnership Law of The Peoples Republic of China was amended and promulgated, and will be enforced as of June 1, 2007.

On September 8, Provisions on the Takeover of Domestic Enterprises by Foreign Investors revised edition jointly issued by the Ministry of Commerce, State Assets Supervision and Administration Commission of the State Council and 4 other state departments came into force.

On October 18, the General Administration of Press and Publication issued the Interim Measures for the Administration of Mass Organizations and Branches under the General Administration of Press and Publication, which facilitates the General Administration of Press and Publication's management of mass organizations and the standardization of the management.

On December 30, the Ministry of Commerce, General Administration of Press and Publication and General Administration of Customs jointly issued the Emergency Circular on Reinforcing the Administration of Engaging in Overseas Printing and Duplication Business, which calls for reinforcing the administration of companies to take over overseas printing and duplication business.