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Adopted at the 29th meeting of the Standing Committee of the 10th National People’’s Congress of the People’s Republic of China on August 30, 2007.

Chapter I General Provisions

Article 1 This Law is enacted for the purpose of preventing and restraining monopolistic conducts, protecting fair competition in the market, enhancing economic efficiency, safeguarding the interests of consumers and social public interest, promoting the healthy development of the socialist market economy.

Article 2 This Law shall be applicable to monopolistic conducts in economic activities within the People’’s Republic of China.

This Law shall apply to the conducts outside the territory of the People’’s Republic of China if they eliminate or have restrictive effect on competition on the domestic market of the PRC.

Article 3 For the purposes of this Law, “monopolistic conducts” are defined as the following:

(1) monopolistic agreements among business operators;

(2) abuse of dominant market positions by business operators; and

(3) concentration of business operators that eliminates or restricts competition or might be eliminating or restricting competition.

Article 4 The State constitutes and carries out competition rules which accord with the socialist market economy, perfects macro-control, and advances a unified, open, competitive and orderly market system.

Article 5 Business operators may, through fair competition, voluntary alliance，concentrate themselves according to law, expand the scope of business operations, and enhance competitiveness.

Article 6 Any business with a dominant position may not abuse that dominant position to eliminate, or restrict competition.

Article 7 With respect to the industries controlled by the State-owned economy and concerning the lifeline of national economy and national security or the industries implementing exclusive operation and sales according to law, the state protects the lawful business operations conducted by the business operators therein. The state also lawfully regulates and controls their business operations and the prices of their commodities and services so as to safeguard the interests of consumers and promote technical progresses.

The business operators as mentioned above shall lawfully operate, be honest and faithful, be strictly self-disciplined, accept social supervision, shall not damage the interests of consumers by virtue of their dominant or exclusive positions.

Article 8 No administrative organ or organization empowered by a law or administrative regulation to administer public affairs may abuse its administrative powers to eliminate or restrict competition.

Article 9 The State Council shall establish the Anti-monopoly Commission, which is in charge of organizing, coordinating, guiding anti-monopoly work, performs the following functions:

(1) studying and drafting related competition policies;

(2) organizing the investigation and assessment of overall competition situations in the market, and issuing assessment reports;

(3) constituting and issuing anti-monopoly guidelines;

(4) coordinating anti-monopoly administrative law enforcement; and

(5) other functions as assigned by the State Council.

The State Council shall stipulate composition and working rules of the Anti-monopoly Commission.

Article 10 The anti-monopoly authority designated by the State Council (hereinafter referred to as the Anti-monopoly Authority under the State Council) shall be in charge of anti-monopoly law enforcement in accordance with this Law.

The Anti-monopoly Authority under the State Council) may, when needed, authorize the corresponding authorities in the people’’s governments of the provinces, autonomous regions and municipalities directly under the Central Government to take charge of anti-monopoly law enforcement in accordance with this Law.

Article 11 A trade association shall intensify industrial self-discipline, guide business operators to lawfully compete, safeguard the competition order in the market.

Article 12 For the purposes of this Law,

“business operator” refers to a natural person, legal person, or any other organization that is in the engagement of commodities production or operation or service provision, and

“relevant market” refers to the commodity scope or territorial scope within which the business operators compete against each other during a certain period of time for specific commodities or services (hereinafter generally referred to as “commodities”).

Chapter II Monopoly Agreement

Article 13 Any of the following monopoly agreements among the competing business operators shall be prohibited:

(1) fixing or changing prices of commodities;

(2) limiting the output or sales of commodities;

(3) dividing the sales market or the raw material procurement market;

(4) restricting the purchase of new technology or new facilities or the development of new technology or new products;

(5) making boycott transactions; or

(6) other monopoly agreements as determined by the Anti-monopoly Authority under the State Council.

For the purposes of this Law, “monopoly agreements” refer to agreements, decisions or other concerted actions which eliminate or restrict competition.

Article 14 Any of the following agreements among business operators and their trading parties are prohibited:

(1) fixing the price of commodities for resale to a third party;

(2) restricting the minimum price of commodities for resale to a third party; or

(3) other monopoly agreements as determined by the Anti-monopoly Authority under the State Council.

Article 15 An agreement among business operators shall be exempted from application of articles 13 and 14 if it can be proven to be in any of the following circumstances:

(1) for the purpose of improving technologies, researching and developing new products;

(2) for the purpose of upgrading product quality, reducing cost, improving efficiency, unifying product specifications or standards, or carrying out professional labor division;

(3) for the purpose of enhancing operational efficiency and reinforcing the competitiveness of small and medium-sized business operators;

(4) for the purpose of achieving public interests such as conserving energy, protecting the environment and relieving the victims of a disaster and so on;

(5) for the purpose of mitigating serious decrease in sales volume or obviously excessive production during economic recessions;

(6) for the purpose of safeguarding the justifiable interests in the foreign trade or foreign economic cooperation; or

(7) other circumstances as stipulated by laws and the State Council.

Where a monopoly agreement is in any of the circumstances stipulated in Items 1 through 5 and is exempt from Articles 13 and 14 of this Law, the business operators must additionally prove that the agreement can enable consumers to share the interests derived from the agreement, and will not severely restrict the competition in relevant market.

Article 16 Any trade association may not organize the business operators in its own industry to implement the monopolistic conduct as prohibited by this Chapter.

Chapter III Abuse of Market Dominance

Article 17 A business operator with a dominant market position shall not abuse its dominant market position to conduct following acts:

(1) selling commodities at unfairly high prices or buying commodities at unfairly low prices;

(2) selling products at prices below cost without any justifiable cause;

(3) refusing to trade with a trading party without any justifiable cause;

(4) requiring a trading party to trade exclusively with itself or trade exclusively with a designated business operator(s) without any justifiable cause;

(5) tying products or imposing unreasonable trading conditions at the time of trading without any justifiable cause;

(6) applying dissimilar prices or other transaction terms to counterparties with equal standing;

(7) other conducts determined as abuse of a dominant position by the Anti-monopoly Authority under the State Council

For the purposes of this Law, “dominant market position” refers to a market position held by a business operator having the capacity to control the price, quantity or other trading conditions of commodities in relevant market, or to hinder or affect any other business operator to enter the relevant market.

Article 18 The dominant market status shall be determined according to the following factors:

(1) the market share of a business operator in relevant market, and the competition situation of the relevant market;

(2) the capacity of a business operator to control the sales markets or the raw material procurement market;

(3) the financial and technical conditions of the business operator;

(4) the degree of dependence of other business operators upon of the business operator in transactions;

(5) the degree of difficulty for other business operators to enter the relevant market; and

(6) other factors related to determine a dominant market position of the said business operator.

Article 19 Where a business operator is under any of the following circumstances, it may be assumed to be have a dominant market position:

(1) the relevant market share of a business operator accounts for1/2 or above in the relevant market;

(2) the joint relevant market share of two business operators accounts for 2/3 or above; or

(3) the joint relevant market share of three business operators accounts for 3/4 or above.

A business operator with a market share of less than 1/10 shall not be presumed as having a dominant market position even if they fall within the scope of second or third item.

Where a business operator who has been presumed to have a dominant market position can otherwise prove that they do not have a dominant market, it shall not be determined as having a dominant market position.

Chapter IV Concentration of Business operators

Article 20 A concentration refers to the following circumstances:

(1) the merger of business operators;

(2) acquiring control over other business operators by virtue of acquiring their equities or assets; or

(3) acquiring control over other business operators or possibility of exercising decisive influence on other business operators by virtue of contact or any other means.

Article 21 Where a concentration reaches the threshold of declaration stipulated by the State Council, a declaration must be lodged in advance with the Anti-monopoly Authority under the State Council, or otherwise the concentration shall not be implemented.

Article 22 Where a concentration is under any of the following circumstances, it may not be declared to the Anti-monopoly Authority under the State Council:

(1) one business operator who is a party to the concentration has the power to exercise more than half the voting rights of every other business operator, whether of the equity or the assets; or

(2) one business operator who is not a party to the concentration has the power to exercise more than half the voting rights of every business operator concerned, whether of the equity or the assets.

Article 23 A business operator shall, when lodge a concentration declaration with the Anti-monopoly Authority under the State Council, submit the following documents and materials:

(1) a declaration paper;

(2) explanations on the effect of the concentration on the relevant market competition;

(3) the agreement of concentration;

(4) the financial reports and accounting reports of the proceeding accounting year of the business operator; and

(5) other documents and materials as stipulated by the Anti-monopoly Authority under the State Council.

Such items shall be embodied in the declaration paper as the name, domicile and business scopes of the business operators involved in the concentration as well as the date of the scheduled concentration and other items as stipulated by the Anti-monopoly Authority under the State Council.

Article 24 Where the documents or materials submitted by a business operator are incomplete, it shall submit the rest of the documents and materials within the time limit stipulated by the Anti-monopoly Authority under the State Council; otherwise, the declaration shall be deemed as not filed.

Article 25 The Anti-monopoly Authority under the State Council shall conduct a preliminary review of the declared concentration of business operators, make a decision whether to conduct further review and notify the business operators in written form within 30 days upon receipt of the documents and materials submitted by the business operators pursuant to Article 23 of this Law. Before such a decision made by the Anti-monopoly Authority under the State Council, the concentration may be not implemented.

Where the Anti-monopoly Authority under the State Council decides not to conduct further review or fails to make a decision at expiry of the stipulated period, the concentration may be implemented.

Article 26 Where the Anti-monopoly Authority under the State Council decides to conduct further review, they shall, within 90 days from the date of decision, complete the review, make a decision on whether to prohibit the concentration, and notify the business operators concerned of the decision in written form. A decision of prohibition shall be attached with reasons therefor. Within the review period the concentration may not be implemented.

Under any of the following circumstances, the Anti-monopoly Authority under the State Council may notify the business operators in written form that the time limit as stipulated in the preceding paragraph may be extended to no more than 60 days:

(1) the business operators concerned agree to extend the time limit;

(2) the documents or materials submitted are inaccurate and need further verification;

(3) things have significantly changed after declaration.

If the Anti-monopoly Authority under the State Council fails to make a decision at expiry of the period, the concentration may be implemented.

Article 27 In the case of the examination on the concentration of business operators, it shall consider the relevant elements as follows:

(1) the market share of the business operators involved in the relevant market and the controlling power thereof over that market,

(2) the degree of market concentration in the relevant market,

(3) the influence of the concentration of business operators on the market access and technological progress,

(4) the influence of the concentration of business operators on the consumers and other business operators,

(5) the influence of the concentration of business operators on the national economic development, and

(6) other elements that may have an effect on the market competition and shall be taken into account as regarded by the Anti-monopoly Authority under the State Council.

Article 28 Where a concentration has or may have effect of eliminating or restricting competition, the Anti-monopoly Authority under the State Council shall make a decision to prohibit the concentration. However, if the business operators concerned can prove that the concentration will bring more positive impact than negative impact on competition, or the concentration is pursuant to public interests, the Anti-monopoly Authority under the State Council may decide not to prohibit the concentration.

Article 29 Where the concentration is not prohibited, the Anti-monopoly Authority under the State Council may decide to attach restrictive conditions for reducing the negative impact of such concentration on competition.

Article 30 Where the Anti-monopoly Authority under the State Council decides to prohibit a concentration or attaches restrictive conditions on concentration, it shall publicize such decisions to the general public in a timely manner.

Article 31 Where a foreign investor merges and acquires a domestic enterprise or participate in concentration by other means, if state security is involved, besides the examination on the concentration in accordance with this Law, the examination on national security shall also be conducted in accordance with the relevant State provisions.

Chapter V Abuse of Administrative Power to Eliminate or Restrict Competition

Article 32 Any administrative organ or organization empowered by a law or administrative regulation to administer public affairs may not abuse its administrative power, restrict or restrict in a disguised form entities and individuals to operate, purchase or use the commodities provided by business operators designated by it.

Article 33 Any administrative organ or organization empowered by a law or an administrative regulation to administer public affairs may not have any of the following conducts by abusing its administrative power to block free circulation of commodities between regions:

(1) imposing discriminative charge items, discriminative charge standards or discriminative prices upon commodities from outside the locality,

(2) imposing such technical requirements and inspection standards upon commodities from outside the locality as different from those upon local commodities of the same classification, or taking such discriminative technical measures as repeated inspections or repeated certifications to commodities from outside the locality, so as to restrict them to enter local market,

(3) exerting administrative licensing specially on commodities from outside the locality so as to restrict them to enter local market,

(4) setting barriers or taking other measures so as to hamper commodities from outside the locality from entering the local market or local commodities from moving outside the local region, or

(5) other conducts for the purpose of hampering commodities from free circulation between regions.

Article 34 Any administrative organ or organization empowered by a law or administrative regulation to administer public affairs may not abuse its administrative power to reject or restrict business operators from outside the locality to participate in local tendering and bidding activities by such means as imposing discriminative qualification requirements or assessment standards or releasing information in an unlawful manner.

Article 35 Any administrative organ or organization empowered by a law or administrative regulation to administer public affairs may not abuse its administrative power to reject or restrict business operators from outside the locality to invest or set up branches in the locality by imposing unequal treatment thereupon compared to that upon local business operators.

Article 36 Any administrative organ or organization empowered by a law or administrative regulation to administer public affairs may not abuse its administrative power to force business operators to engage in the monopolistic conducts as prescribed in this Law.

Article 37 Any administrative organ may not abuse its administrative power to set down such provisions in respect of eliminating or restricting competition.

Chapter VI Investigation into the Suspicious Monopolistic Conducts

Article 38 The anti-monopoly authority shall make investigations into suspicious monopolistic conducts in accordance with law.

Any entity or individual may report suspicious monopolistic conducts to the anti-monopoly authority. The anti-monopoly authority shall keep the informer confidential.

Where an informer makes the reporting in written form and provides relevant facts and evidences, the anti-monopoly authority shall make necessary investigation.

Article 39 The anti-monopoly authority may take any of the following measures in investigating suspicious monopolistic conducts:

(1) conducting the inspection by getting into the business premises of business operators under investigation or by getting into any other relevant place,

(2) inquiring of the business operators under investigation, interested parties, or other relevant entities or individuals, and requiring them to explain the relevant conditions,

(3) consulting and duplicating the relevant documents, agreements, account books, business correspondences and electronic data, etc. of the business operators under investigation, interested parties and other relevant entities or individuals,

(4) seizing and detaining relevant evidence, and

(5) inquiring about the business operators” bank accounts under investigation.

Before the measures as prescribed in the preceding paragraph are approved, a written report shall be submitted to the chief person(s)-in-charge of the anti-monopoly authority.

Article 40 When inspecting suspicious monopolistic conducts, there shall be at least two law enforcers, and they shall show their law enforcement certificates.

When inquiring about and investigating suspicious monopolistic conducts, law enforcers shall make notes thereon, which shall bear the signatures of the persons under inquiry or investigation.

Article 41 The anti-monopoly authority and functionaries thereof shall be obliged to keep confidential the trade secrets they have access to during the course of the law enforcement.

Article 42 Business operators, interested parties and other relevant entities and individuals under investigation shall show cooperation with the anti-monopoly authority in performing its functions, and may not reject or hamper the investigation by the anti-monopoly authority.

Article 43 Business operators, interested parties under investigation have the right to voice their opinions. The anti-monopoly authority shall verify the facts, reasons and evidences provided by the business operators, interested parties under investigation.

Article 44 Where the anti-monopoly authority deems that a monopolistic conduct is constituted after investigating and verifying a suspicious monopolistic conduct, it shall make a decision on how to deal with the monopolistic conduct, and publicize it.

Article 45 As regards a suspicious monopolistic conduct that the anti-monopoly authority is investigating, if the business operators under investigation promise to eliminate the impact of the conduct by taking specific measures within the time limit prescribed by the anti-monopoly authority, the anti-monopoly authority may decide to suspend the investigation. The decision on suspending the investigation shall specify the specific measures as promised by the business operators under investigation.

Where the anti-monopoly authority decides to suspend the investigation, it shall supervise the implementation of the promise by the relevant business operators. If the business operators keep their promise, the anti-monopoly authority may decide to terminate the investigation.

However, the anti-monopoly authority shall resume the investigation, where

(1) the business operators fail to implement the promise,

(2) significant changes have taken place to the facts based on which the decision on suspending the investigation was made; or

(3) the decision on suspending the investigation was made based on incomplete or inaccurate information provided by the business operators.

Chapter VII Legal Liabilities

Article 46 Where business operators reach an monopoly agreement and perform it in violation of this Law, the anti-monopoly authority shall order them to cease doing so, and shall confiscate the illegal gains and impose a fine of 1% up to 10% of the sales revenue in the previous year. Where the reached monopoly agreement has not been performed, a fine of less than 500,000 yuan shall be imposed.

Where any business operator voluntarily reports the conditions on reaching the monopoly agreement and provides important evidences to the anti-monopoly authority, it may be imposed a mitigated punishment or exemption from punishment as the case may be.

Where a guild help the achievement of a monopoly agreement by business operators in its own industry in violation of this Law, a fine of less than 500,000 yuan shall be imposed thereupon by the anti-monopoly authority; in case of serious circumstances, the social group registration authority may deregister the guild.

Article 47 Where any business operator abuses its dominant market status in violation of this Law, it shall be ordered to cease doing so. The anti-monopoly authority shall confiscate its illegal gains and impose thereupon a fine of 1% up to 10% of the sales revenue in the previous year.

Article 48 Where any business operator implements concentration in violation of this Law, the anti-monopoly authority shall order it to cease doing so, to dispose of shares or assets, transfer the business or take other necessary measures to restore the market situation before the concentration within a time limit, and may impose a fine of less than 500,000 yuan.

Article 49 The specific amount of the fines as prescribed in Articles 46 through 48 shall be determined in consideration of such factors as the nature, extent and duration of the violations.

Article 50 Where any loss was caused by a business operator’’s monopolistic conducts to other entities and individuals, the business operator shall assume the civil liabilities.

Article 51 Where any administrative organ or an organization empowered by a law or administrative regulation to administer public affairs abuses its administrative power to eliminate or restrict competition, the superior authority thereof shall order it to make correction and impose punishments on the directly liable person(s)-in-charge and other directly liable persons. The anti-monopoly authority may put forward suggestions on handling according to law to the relevant superior authority.

Where it is otherwise provided in a law or administrative regulation for the handling the organization empowered by a law or administrative regulation to administer public affairs who abuses its administrative power to eliminate or restrict competition, such provisions shall prevail.

Article 52 As regards the inspection and investigation by the anti-monopoly authority, if business operators refuse to provide related materials and information, provide fraudulent materials or information, conceal, destroy or remove evidence, or refuse or obstruct investigation in other ways, the anti-monopoly authority shall order them to make rectification, impose a fine of less than 20,000 yuan on individuals, and a fine of less than 200,000 yuan on entities; and in case of serious circumstances, the anti-monopoly authority may impose a fine of 20,000 yuan up to 100,000 yuan on individuals, and a fine of 200,000 yuan up to one million yuan on entities; where a crime is constituted, the relevant business operators shall assume criminal liabilities.

Article 53 Where any party concerned objects to the decision made by the anti-monopoly authority in accordance with Articles 28 and 29 of this Law, it may first apply for an administrative reconsideration; if it objects to the reconsideration decision, it may lodge an administrative lawsuit in accordance with law.

Where any party concerned is dissatisfied with any decision made by the anti-monopoly authority other than the decisions prescribed in the preceding paragraph, it may lodge an application for administrative reconsideration or initiate an administrative lawsuit in accordance with law.

Article 54 Where any functionary of the anti-monopoly authority abuses his/her power, neglects his/her duty, seeks private benefits, or discloses trade secrets he/she has access to during the process of law enforcement, and a crime is constituted, he/she shall be subject to the criminal liability; where no crime is constituted, he/she shall be imposed upon a disciplinary sanction.

Chapter VIII Supplementary Provisions

Article 55 This Law does not govern the conduct of business operators to exercise their intellectual property rights under laws and relevant administrative regulations on intellectual property rights; however, business operators” conduct to eliminate or restrict market competition by abusing their intellectual property rights shall be governed by this Law.

Article 56 This Law does not govern the ally or concerted actions of agricultural producers and rural economic organizations in the economic activities such as production, processing, sales, transportation and storage of agricultural products.

Article 57 This Law shall enter into force as of August 1, 2008.

(Source:www.fdi.gov.cn)

(Adopted at the Third Session of the Eighth National People’s
Congress on March 18, 1995, promulgated by Order No. 46 of the
President of the People’s Republic of China on March 18, 1995, and
amended in accordance with the Decision on Amending the Law of the
People’s Republic of China on the People’s Bank of China adopted at
the 6th Meeting of the Standing Committee of the Tenth National
People’s Congress on December 27, 2003) 

 

Contents 

 

Chapter I     General Provisions 

 

Chapter II    Organization Structure  

 

Chapter III   The Renminbi 

 

Chapter IV    Business Operations  

 

Chapter V     Financial Supervision and
Control 

 

Chapter VI    Financial Affairs and
Accounting 

 

Chapter VII   Legal Responsibility 

 

Chapter VIII  Supplement Provisions 

 

Chapter I 

 

General Provisions 

 

Article 1   This Law is enacted in order to define the
status and make clear the functions and responsibilities of the
People’s Bank of China, ensure the correct formulation and
implementation of the monetary policies of the State, establish and
perfect a macro-control system through a central bank and maintain
financial stability. 

 

Article 2   The People’s Bank of China is the central
bank of the People’s Republic of China. 

 

The People’s Bank of China shall, under the leadership of the
State Council, formulate and implement monetary policies, guard
against and eliminate financial risks, and maintain financial
stability. 

 

Article 3   The aim of monetary policies shall be to
maintain the stability of the value of the currency and thereby
promote economic growth. 

 

Article 4 The People’s Bank of China shall perform the following
functions and responsibilities: 

 

(1) to promulgate and carry out the orders and regulations
related to its functions and responsibilities; 

 

(2) to formulate and implement monetary policies in accordance
with law; 

 

(3) to issue Renminbi ( RMB ) and control its
circulation; 

 

(4) to supervise and administer the inter-bank lending market
and the inter-bank  bond market; 

 

(5) to exercise control of foreign exchange and  supervise
and administer the inter-bank foreign exchange market; 

 

(6) to supervise and administer the gold market; 

 

(7) to hold, administer and manage the State foreign exchange
reserve and gold reserve; 

 

(8)to manage the State Treasury; 

 

(9) to maintain the normal operation of the system for making
payments and settling accounts; 

 

(10) to guide and make plans for  the fight against money
laundering in the banking industry, and to be responsible for
monitoring the use of the funds earmarked for the fight against
money laundering; 

 

(11) to be responsible for statistics, investigation, analysis
and forecasting concerning the banking industry; 

 

(12) to engage in relevant international banking operations in
its capacity as the central bank of the State; and 

 

(13) other functions and responsibilities prescribed by the
State Council. 

 

To implement monetary policies, the People’s Bank of China may
carry out financial operations in accordance with the relevant
provisions of Chapter IV of this Law. 

 

Article 5 The People’s Bank of China shall report its
decisions to the State Council for approval concerning the annual
money supply, interest rate, foreign exchange rates and other
important matters specified by the State Council before they are
implemented. 

 

The People’s Bank of China shall immediately implement decisions
on monetary policies for matters other than those specified by the
State Council for the record. 

 

Article 6 The People’s Bank of China shall submit to the
Standing Committee of the National People’s Congress work reports
concerning matters of monetary policies and the operations of the
banking industry. 

 

Article 7 The People’s Bank of China shall, under the leadership
of the State Council, implement monetary policies, perform its
functions and carry out its business operations independently
according to law and be free from intervention by local
governments, government departments at various levels, public
organizations or individuals. 

 

Article 8 All capital of the People’s Bank of China is invested
by the State and owned by the State. 

 

Article 9 The State Council shall establish a coordinating
mechanism for financial supervision and administration. The
specific measures therefor shall be formulated by the State
Council. 

 

ChapterII 

 

Organizational Structure 

 

Article 10 The People’s Bank of China shall have a Governor and
a certain number of Deputy Governors. 

 

The candidate for the Governor of the People’s Bank of China
shall be nominated by the Premier of the State Council and decided
by the National People’s Congress; when the National People
Congress is not in session, the Governor shall be decided by the
Standing Committee of the National People’s Congress and appointed
or removed by the President of the People’s Republic of China. The
Deputy Governors of the People’s Bank of China shall be appointed
or removed by the Premier of the State Council. 

 

Article11 The People’s Bank of China shall practice a system
wherein the Governor shall assume overall responsibility. The
Governor shall direct the work of the People’s Bank of China, the
Deputy Governors shall assist the Governor in his or her
work. 

 

Article12 The People’s Bank of China shall establish a monetary
policy committee, whose functions, composition and working
procedures shall be prescribed by the State Council and reported to
the Standing Committee of the National People’s Congress for the
record. 

 

The monetary policy committee of the People’s Bank of China
shall play an important role in the State macro-control and the
formulation and adjustment of monetary policies. 

 

Article13 The People’s Bank of China shall establish branches as
its representative organs in light of the need of performing its
functions and responsibilities and exercise unified leadership and
administration with respect to its branches. 

 

The branches of the People’s Bank of China shall, as authorized
by the People’s Bank of China, maintain financial stability in
their respective districts and handle relevant business
operations. 

 

Article 14 The Governor, Deputy Governors and other staff
members of the People’s Bank of China shall scrupulously abide by
their duties; they may not abuse their power or conduct malpractice
for private ends and they may not assume concurrent positions in
any other banking institutions, enterprises or
foundations. 

 

Article 15 The Governor, Deputy Governors and other staff
members of the People’s Bank of China shall safeguard State Secrets
according to law and be obligated to safeguard the secrets of the
banking institutions and parties concerned with their
implementation of their functions and responsibilities. 

 

Chapter III 

 

The Renminbi 

 

Article 16 The legal tender of the People’s Republic of China is
the Renminbi (RMB). When Renminbi is used to repay all public or
private debts within the territory of the People’s Republic of
China, no units or individuals may refuse to accept it. 

 

Article 17The unit of the Renminbi is the yuan and the units of
the fractional currency of the Renminbi are the jiao and the
fen. 

 

Article 18 The Renminbi shall be printed and issued solely ny
the People’s Bank of China. 

 

When putting forth a new Renminbi issue, the People’s Bank of
China shall make known to the public the issuing date, face values,
designs, patterns and specifications. 

 

Article 19 It is prohibited to counterfeit or alter Renminbi. It
is prohibited to sell or purchase counterfeit or altered Renminbi.
It is prohibited to transport, hold or use counterfeit or altered
Renminbi. It is prohibited to deliberately destroy or damage the
Renminbi. It is prohibited to illegally use the parttens of
Renminbi in propaganda materials, publications or other
commodities. 

 

Article 20 No units or individuals may print or sell promissory
notes as substitutes for Renminbi to circulate on the
market. 

 

Article 21The damaged or soiled Renminbi shall be exchanged in
accordance with the regulations of the People’s Bank of China,
which shall also be responsible to recall and destroy such
Renminbi. 

 

Article 22 The People’s Bank of China shall establish a Renminbi
issue treasuries at its branches. The subsidiary issue treasuries
shall, in allocating Renminbi issue fund, act on the order of
allocation from their superior treasury. No units or individuals
may use the issue fund in violation of regulations. 

 

Chapter IV 

 

Business Operations 

 

Article 23 To implement monetary policies, the People’s Bank of
China may apply the following monetary policy
instruments: 

 

(1) to require a financial institution of the banking industry
to place a deposit reserve at a prescribed ratio; 

 

(2) to fix the base interest rates for the central
bank; 

 

(3) to handle rediscount for financial institutions of the
banking industry that have opened accounts in the People’s Bank of
China; 

 

(4) to provide loans for commercial banks; 

 

(5) to deal in State bonds, other government bonds, and
financial bonds and foreign exchange on the open market;
and 

 

(6) other monetary policy instruments decided by the State
Council. 

 

When applying the monetary policy instruments listed in the
preceding paragraph to implement monetary policies, the People’s
Bank of China may work out specific requirements and
procedures. 

 

Article 24The People’s Bank of China shall manage he State
treasury in accordance with laws and administrative rules and
regulations. 

 

Article 25 The People’s Bank of China may, on behalf of the
financial department under the State Council, issue to financial
institutions, and honour State bonds and other government
bonds. 

 

Article 26 The People’s Bank of China may open accounts for
financial institutions of the banking industry as needed, but may
not allow them to overdraw. 

 

Article 27 The People’s Bank of China shall organize or assist
in organizing a clearing system among financial institutions of the
banking industry, coordinate the efforts of such institutions in
matters of clearing and provide services in this regard. The
specific measures therefor shall be formulated by the People’s Bank
of China. 

 

The People’s Bank of China shall, in conjunction with the
banking regulatory authority under the State Council, formulate
regulations on payment and clearing. 

 

Article 28  The People’s Bank of China may, as required by
the implementation of monetary policies, determine the amounts,
term, interest rates and forms of loans extended to commercial
banks, however, the maximum term of loans shall not exceed one
year. 

 

Article 29 The People’s Bank of China may not make an overdraft
for the government, and may not directly subscribe or underwrite
State bonds or other government bonds. 

 

Article 30 The People’s Bank of China may not provide loans to
the local governments or government departments at various levels,
to non-banking institutions, other units or individuals, with the
exception of the specific non-banking institutions as decided by
the State Council. 

 

The People’s Bank of China may not provide guaranty for any unit
or individual. 

 

Chapter V 

 

Financial Supervision and Control 

 

Article 31 The People’s Bank of China shall, in accordance with
law, monitor the operation of the financial markets, conduct
macro-control of such markets and promote their coordinated
development. 

 

Article 32 The People’s Bank of China shall have the power to
inspect and supervise the following activities of the financial
institutions and other units and individuals: 

 

(1) implementation of the regulations for control of deposit
reserve; 

 

(2)activities related to the special loans of the People’s Bank
of China; 

 

(3)implementation of the regulations for control of
Renminbi; 

 

(4)implementation of the regulations for control of the
inter-bank lending market and the inter-bank  bond
market; 

 

(5)implementation of the regulations for control of foreign
exchange; 

 

(6)implementation of the regulations for control of
gold; 

 

(7)management of the State Treasury on behalf of the People’s
Bank of China; 

 

(8)implementation of the regulations for control of clearing;
and 

 

(9)implementation of the regulations against money
laundering. 

 

The special loan mentioned in the preceding paragraph are
loans granted, upon decision by the State Council, by the
People’s Bank of China for special purposes. 

 

Article 33 The People’s Bank of China may, according to the need
to implement monetary policies and maintain financial stability,
propose that the banking regulatory authority under the State
Council inspect and supervise the financial institutions of the
banking industry. The said authority shall, within thirty days from
the date it receives the proposal, make a reply. 

 

Article 34 When financial institutions of the banking industry
have difficulties in making payment that may trigger off financial
risks, the People’s Bank of China shall, with a view to maintaining
financial stability, have the power to inspect and supervise the
financial institutions of the banking industry with the approval of
the State Council. 

 

Article 35 The People’s Bank of China shall, according to the
need to fulfill its functions and responsibilities, have the power
to demand the financial institutions of the banking industry to
submit the necessary balance sheets, statements of profit and other
financial and accounting reports, statistical reports and
information. 

 

The People’s Bank of China, the banking regulatory authority
under the State Council and the other financial regulatory
institutions under the State Council shall establish a mechanism to
share supervisory information. 

 

Article 36 The People’s Bank of China shall be responsible for
compiling unified statistics and accounting statements from the
national banking system and shall publish them in accordance with
relevant regulations of the State. 

 

Article 37 The People’s Bank of China shall establish and
perfect system for its own examination and inspection and
strengthen its own supervision and administration. 

 

Chapter VI 

 

Financial Affairs and Accounting 

 

Article 38 The People’s Bank of China shall exercise independent
control over its financial budget. 

 

The budget of the People’s Bank of China shall be incorporated
in the central budget after it has been examined and verified by
the financial department under the State Council and the
implementation thereof shall be subject to supervision of the
financial department under the State Council. 

 

Article 39 The People’s Bank of China shall, after withdrawing
funds for its general reserve at a proportion determined by the
financial department under the State Council, turn over to the
State treasury the entire net profit remaining from its income in
an accounting year minus its expenditures in the same
period. 

 

Losses sustained by the People’s Bank of China shall be made up
by appropriations from the State treasury. 

 

Article 40 The financial receipts and payments and accounting
affairs of the People’s Bank of China shall be governed by laws,
administrative regulations and unified State financial and
accounting systems and be subject to the auditing and supervision
conducted, in accordance with law, separately by the audit
institution and the financial department under the State
Council. 

 

Article 41The People’s Bank of China shall, within three months
after the end of every accounting year, compile balance sheets of
its assets, statements of profit and loss and relevant financial
and accounting reports, prepare its annual report and publish them
in accordance with relevant regulations of the State. 

 

The fiscal year of the People’s Bank of China begins on the
first day of January and ends on the thirty-first day of December
of the Gregorian calendar. 

 

Chapter VII 

 

Legal Responsibility 

 

Article 42 Anyone who counterfeits or alters Renminbi, sells
counterfeit or altered Renminbi or knowingly transports counterfeit
or altered Renminbi, which is serious enough to constitute a crime,
shall be investigated for criminal responsibility in accordance
with law; if the case is not serious enough to constitute a crime,
he shall be put in detention for not more than 15 days and fined
not more than 10,000 yuan by a public security organ. 

 

Article 43 Anyone who buys counterfeit or altered Renminbi or
knowingly holds or uses counterfeit or altered Renminbi, which is
serious enough to constitute a crime, shall be investigated for
criminal responsibility in accordance with law; if the case is not
serious enough to constitute a crime, he shall be put in detention
for not more than 15 days and fined not more than 10,000 yuan by a
public security organ. 

 

Article 44 If anyone illegally uses the patterns of Renminbi in
propaganda materials, publications or other commodities, the
People’s Bank of China shall order him to set it right and shall
destroy the illegally used patterns of Renminbi, confiscate the
illegal gains and impose a fine of not more than 50,000
yuan. 

 

Article 45 If anyone prints or sells promissory notes as
substitutes for Renminbi to circulate on the market, the People’s
Bank of China shall order him to cease his illegal act and impose a
fine of not more than 200,000 yuan. 

 

Article 46 Where in relevant laws and administrative regulations
there are provisions governing punishment for violations in respect
of the activities as are listed in Article 32 of this Law,
punishment shall be meted out in accordance with those provisions;
where in such laws and administrative regulations there are no
provisions governing such punishment, the People’s Bank of China
shall, on the merits of each case, give a disciplinary warning,
confiscate the unlawful gains, or if the unlawful gains exceed
500,000 yuan, shall, in addition, impose a fine of not less than
the amount of such gains but not more than five times that amount;
if there are no unlawful gains or if such gains are less than
500,000 yuan, it shall impose a fine of not less than 500,000 yuan
but not more than 2,000, 000 yuan. The director or senior manager
who is directly in charge or any other person who is directly
responsible shall be given a disciplinary warning and be fined not
less than 50,000 yuan but not more than 500,000 yuan. If a crime is
constituted, criminal responsibility shall be investigated in
accordance with law. 

 

Article 47 If any party refuses to accept the administrative
punishment, he may institute an administrative lawsuit in
accordance with the Administrative Procedure Law of the People’s
Republic of China. 

 

Article 48 If the People’s Bank of China commits any of the
following acts, the persons directly in charge and other persons
directly responsible for the offense shall be subject to
administrative sanctions according to law; if the case constitutes
a crime, the offenders shall be investigated for criminal
responsibility according to law: 

 

(1) to provide a loan in violation of the provisions in the
first paragraph of Article 30; 

 

(2) to provide guaranty for a unit or individual; or 

 

(3) to use the issue fund without authorization. 

 

If any of the acts specified in the preceding paragraph results
in losses, the persons directly in charge and other persons
directly responsible for the offense shall be partially or wholly
liable for the losses. 

 

Article 49 If a local government or a government department at
any level, a public organization or an individual forcibly demands
the People’s Bank of China or its staff member to provide a loan or
a guaranty in violation of the provisions in Article 30, the
persons directly in charge and other persons who are directly
responsible for the offense shall be subject to administrative
sanctions in accordance with the law; if the case constitutes a
crime, the offenders shall be investigated for criminal
responsibility according to law; if losses are caused, the
offenders shall be partially or wholly liable for the
losses.    

 

Article 50 If any staff member of the People’s Bank of China
divulges State secrets or the business secrets he knows, which is
serious enough to constitute a crime, he shall be investigated for
criminal responsibility according to law; if the case is not
serious enough to constitute a crime, he shall be subject to
administrative sanction according to law. 

 

Article 51  If any staff member of the People’s Bank of
China commits embezzlement, accepts bribes, conducts malpractices
for personal ends, abuses his power or neglects his duty, which is
serious enough to constitute a crime, he shall be investigated for
criminal responsibility according to law; if the case is not
serious enough to constitute a crime, he shall be subject to
administrative sanction according to law. 

 

Chapter VIII 

 

Supplementary Provisions 

 

Article 52  For purposes of this law, the financial
institutions of the banking industry are financial institutions
established within the territory of the People’s Republic of China
that take in deposits from the general public, including, among
others, commercial banks, urban credit cooperatives and rural
credit cooperatives, and policy banks. 

 

The provisions of this Law pertaining to financial institutions
of the banking industry are applicable to the assets management
companies, trust and investment companies, financial companies and
financial leasing companies established within the territory of the
People’s Republic of China and other financial institutions
established with the approval of the banking regulatory authority
under the State Council. 

 

Article 53 This Law shall be effective on the date of
promulgation.

 

(Legislative Affairs Commission of the Standing Committee of the
National People’s Congress)

 

Order of the President of the People’s Republic
of China

No. 5

 

The Port Law of the People’s Republic of China, adopted at the
3rd Meeting of the Standing Committee of the Tenth National
People’s Congress of the People’s Republic of China on June 28,
2003, is hereby promulgated and shall go into effect as of January
1, 2004.

 

　　

Hu Jintao 

　　President of the
People’s Republic of China

　　June 28, 2003

　　

Contents

Chapter I General Provisions

Chapter II Port Planning and Construction

Chapter III Port Operation

Chapter IV Port Safety and Supervision

Chapter V Legal Responsibilities

Chapter VI Supplementary Provisions

 

Chapter I

General Provisions

 

Article 1 This Law is enacted with a view to strengthening port
administration, maintaining port safety and operational order,
protecting the legitimate rights and interests of the parties and
promoting the construction and development of ports.

 

Article 2 This Law is applicable to the planning, construction,
maintenance, operation and administration of ports and other
relevant activities.

 

Article 3 As used in this Law, the term “port” means a region
comprising certain water and land areas, having the functions for
vessels to enter, leave, lie at anchor and moor, for passengers to
embark and disembark, and for goods to be loaded, unloaded,
lightered and stored, and being equipped with the necessary dock
facilities.

 

A port may consist of one or more port areas.

 

Article 4 The State Council and the local people’s governments
at or above the county level concerned shall embody the
requirements of port development and planning in their plans of
national economic and social development, protect and make rational
use of the port recourses in accordance with law.

 

Article 5 The State encourages economic organizations and
individuals at home and abroad to invest in port construction and
operation in accordance with law, and protects the legitimate
rights and interests of the investors.

 

Article 6 The competent department of communications under the
State Council shall be in charge of the administration of port
affairs throughout the State.

 

The local people’s governments shall, in accordance with the
regulations on the system for port administration formulated by the
State Council, decide on the administration of the port situated
within their own administrative areas.

 

According to the port administration system decided on as
prescribed in the preceding paragraph, for a port that comes under
the administration of the people’s government of the city or county
where it is located, the said people’s government shall assign a
department to administer the port specifically; and for a port that
comes under the administration of the people’s government of a
province, autonomous region, or municipality directly under the
Central Government where it is located, the said people’s
government shall assign a department to administer the port
specifically.

 

The departments assigned as per the provisions in the preceding
paragraph to conduct specific port administration are hereinafter
referred to as port administration authorities in general.

 

Chapter II

Port Planning and Construction

 

Article 7 Port plans shall be drawn up in accordance with the
requirements of national economic and social development and the
needs of national defense, shall embody the principle of rational
use of the coastline resources, shall comply with the plans for the
network of cities and towns, and shall be connected and coordinated
with the general plans for land use, general city plans, river
basin plans, flood-control plans, marine function divisions,
waterway transport development plans, development plans for other
modes of transport and other relevant plans provided for by laws or
administrative regulations.

 

In drawing up a port plan, specialists shall be invited to
expound and prove it; and the effects on the environment shall be
evaluated in accordance with law.

 

Article 8 Port plans include port layout plans and port general
plans.

 

A port layout plan means the plan for the geographical
distribution of ports, embracing the national port layout plan and
the port layout plan of a province, autonomous region, or
municipality directly under the Central Government.

 

A port general plan means the specific plan of one port for a
given period of time, embracing the scope of water and land areas,
division of the port area, handling capacity and types of calling
vessels, the character and functions of the port, use of water and
land areas, use of coastline for the construction of port
facilities, allocation of land for construction, the order of
construction phases, etc.

 

The port general plan shall conform to the port layout plan.

 

Article 9 The national port layout plan shall be drawn up by the
competent department of communications under the State Council
after consulting with the relevant departments under the State
Council and the military authorities concerned and shall be
promulgated for implementation upon approval by the State
Council.

 

With respect to the port layout plan of a province, autonomous
region, or municipality directly under the Central Government, the
people’s government of the province, autonomous region, or
municipality directly under the Central Government shall make
arrangements to draw it up on the basis of the national port layout
plan and submit it to the competent department of communications
under the State Council for comments and suggestions. If the said
department puts forward no suggestions for revision within 30 days
from the date it receives the plan submitted for its comments and
suggestions, the port layout plan shall be promulgated for
implementation by the people’s government of the province,
autonomous region, or municipality directly under the Central
Government. If the competent department of communications under the
State Council considers the plan not in conformity with the
national port layout plan, it shall put forward its suggestions for
revision within 30 days from the date it receives the plan. If the
people’s government of the relevant province, autonomous region, or
municipality directly under the Central Government raises
objections to the suggestions for revisions, it shall report to the
State Council for decision.

 

Article 10 A port general plan shall be drawn up by the port
administration authority after consulting with the relevant
departments and the military authorities concerned.

 

Article 11 With respect to the general plan of a major port with
an important geographical position, a relatively great handling
capacity and a fairly wide-spread effect on the economic
development, the competent department of communications under the
State Council shall consult with the relevant departments under the
State Council and the military authorities concerned, before it
gives approval to the plan in conjunction with the people’s
government of the relevant province, autonomous region, or
municipality directly under the Central Government and promulgates
it for implementation. The list of major ports shall be decided on
and promulgated after the competent department of communications
under the State Council consults with the relevant departments
under the State Council.

 

The people’s government of a province, autonomous region, or
municipality directly under the Central Government shall decide on
the major ports located there after consulting with the competent
department of communications under the State Council. The general
plans of the major ports shall be subject to approval and be
promulgated for implementation by the people’s government of the
province, autonomous region, or municipality directly under the
Central Government after consulting with the competent department
of communications under the State Council.

 

The general plans of the ports other than the ones as specified
in the preceding two paragraphs shall be promulgated for
implementation upon approval by the people’s government of the city
or county where the ports are located and shall be submitted to the
people’s government of the province, autonomous region, or
municipality directly under the Central Government for the
record.

 

The general plan of a port belonging to the category of the
ports as specified in the first or second paragraph of this Article
which is drawn up by the port administration authority of the
people’s government of a city or county shall be subject to
examination and agreement by the said people’s government before it
is submitted for examination and approval.

 

Article 12 Revision of port plans shall be made in accordance
with the procedures for formulating port plans.

 

Article 13 Where deep-water coastline is to be used for the
construction of port facilities in the area covered by the port
general plan, the matter shall be subject to approval by the
competent department of communications under the State Council
together with the department in charge of comprehensive and
macro-economic regulation and control under the State Council.
Where non-deep-water coastline is to be used for the construction
of port facilities, the matter shall be subjected to approval by
the port administration authority. However, where port coastline is
to be used for the construction of a project which has been
approved by the State Council or the department in charge of
comprehensive and macro-economic regulation and control under the
State Council, there shall be no need to go through the formalities
of examination and approval separately for such use.

 

The standard of port deep-water coastlines shall be formulated
by the competent department of communications under the State
Council.

 

Article 14 Port construction shall conform to port plans. No
port facilities shall be constructed at variance with port
plans.

 

Article 15 With respect to port construction projects subject to
approval by the relevant authorities according to State
regulations, the approval formalities shall be gone through in
accordance with the relevant regulations of the State, and the
projects shall conform to the relevant national standards and
technical specifications.

 

The effect exerted by port construction projects on the
environment shall be evaluated in accordance with law.

 

Safety facilities and environmental protection facilities for
port construction projects shall be designed, constructed and put
into use simultaneously with the principal parts of the
projects.

 

Article 16 In port construction, land and water areas shall be
used in conformity with the provisions of the laws and
administrative regulations concerning administration of land and of
the use of sea areas, administration of the river courses and of
the fairways and administration of protection for military
facilities, and other relevant laws and administrative
regulations.

 

Article 17 Places in ports for handling dangerous cargoes and
special places for sanitation and pest elimination shall conform to
the general plans of ports and the requirements of the State for
safe production, protection against fire, inspection and
quarantine, and environmental protection; the distance between such
places and densely-populated districts and the passenger transport
facilities in the port shall conform to the regulations of the
relevant departments under the State Council; and such places shall
be constructed only after the relevant formalities are gone through
in accordance with law and approval is given by the port
administration authorities.

 

Article 18 Beacons and other auxiliary facilities shall be put
up simultaneously with the construction of the port and their
putting into use on schedule shall be guaranteed.

 

The construction of office facilities for the relevant
administrative authorities in the port shall conform to the port
general plan, and the expenses involved therefor shall not be
apportioned among port operators.

 

Article 19 Upon completion of construction, port facilities
shall be put into use only after they are checked and accepted as
qualified in accordance with the relevant regulations of the
State.

 

The ownership of port facilities shall be determined in
accordance with the provisions of relevant laws.

 

Article 20 The relevant people’s governments at or above the
county level shall guarantee the necessary investment of funds in
the construction and maintenance of the port infrastructures for
public use, such as the fairways, breakwaters and anchorages. The
specific measures thereof shall be formulated by the State
Council.

 

Article 21 The relevant people’s governments at or above the
county level shall take measures and make arrangements for the
construction of facilities subsidiary to the port, such as
fairways, railways, roads, water supply and drainage, power supply
and telecommunications.

 

Chapter III

Port Operation

 

Article 22 Whoever intends to operate a port shall submit a
written application to the port administration authority for a port
operation permit and register with the department for industry and
commerce in accordance with law.

 

When granting permission for port operation, the port
administration authority shall follow the principles of openness,
impartiality and fairness.

 

Port operations include the operations of dock and other port
facilities, port services for passenger transport, cargo loading,
unloading, lightering and storing in the port area, and operations
of tugs in port.

 

Article 23 Whoever intends to obtain a port operation permit
shall have fixed business places and the necessary facilities,
equipment, professional technicians and managerial staff for the
operations, and meet the other requirements provided for by laws
and regulations.

 

Article 24 The port administration authority shall make a
decision whether to grant or not to grant permission within 30 days
from the date it receives the written application prescribed in the
first paragraph of Article 22 of this Law. If it decides to grant
permission, it shall issue a port operation permit to the
applicant. If it refuses to do so, it shall inform the applicant of
the fact in writing and give the reasons why.

 

Article 25 Whoever intends to engage in port tallying shall
obtain a permit in accordance with relevant regulations. Permission
for port tallying shall be granted in adherence to the principles
of openness, impartiality and fairness. The specific measures shall
be formulated by the competent department of communications under
the State Council.

 

A port tallyman shall do the tallying impartially and
accurately; and he shall not concurrently engage in the loading,
unloading and storing of cargoes as prescribed in the third
paragraph of Article 22 of this Law.

 

Article 26 In conducting operational activities, a port operator
shall abide by the relevant laws and regulations and the rules
governing port operations formulated by the competent department of
communications under the State Council, perform in accordance with
law the obligations agreed upon in contracts, and provide clients
with fair and fine services.

 

A port operator engaged in passenger transport shall take
effective measures to ensure the passengers’ safety, provide them
with quick and convenient services and keep a good environment for
them when waiting to board a ship.

 

A port operator shall, in accordance with the laws and
regulations concerning environmental protection, take effective
measures to prevent and control pollution and hazards to the
environment.

 

Article 27 A port operator shall give first priority to the
materials for use in emergency, materials for relief of disasters
and materials urgently needed for the buildup of national
defence.

 

Article 28 At his business place, a port operator shall
publicize the items of services on which fees are charged and the
service rates. Unless publicized, they shall not be put into
practice.

 

Where the rates of port operational fees are guided or fixed by
the government in accordance with law, the port operator shall
collect fees according to the relevant regulations.

 

Article 29 The State encourages and protects fair competition in
port operational activities.

 

A port operator shall not make a monopoly of the operation or
conduct illegitimate competition and shall not by any means compel
another person to accept the port services he provides.

 

Article 30 The port administration authorities shall, in
accordance with the provisions in the Statistics Law of the
People’s Republic of China and relevant administrative regulations,
require the port operators to provide statistical data, the port
operators shall provide truthful data.

 

The port administrative authorities shall, in accordance with
the relevant regulations of the State, submit the statistical data
provided by port operators to the authorities at a higher level
without delay and shall keep the business secrets for the port
operators.

 

Article 31 The legitimate rights and interests of the port
operators are protected by law. No units or individuals may
apportion charges among the port operators or collect fees from
them in violation of laws, or illegally interfere with the right of
the port operators to make their own decisions for their
operation.

 

Chapter IV

Port Safety and Supervision

 

Article 32 A port operator shall, in accordance with the
provisions in the Law of the People’s Republic of China on Work
Safety and other relevant laws and regulations and the provisions
of the rules formulated by the competent department of
communications under the State Council concerning safe operation of
ports, tighten supervision over safe production, establish sound
rules and regulations on the responsibility system for safe
production, keep improving the conditions for safe production, take
effective measures for safe production and ensure safe
production.

 

A port operator shall, in accordance with law, make its own
contingency plans against accidents due to dangerous cargoes,
emergency plans for evacuation and rescue of passengers in a major
accident due to lack of safe production and plans against natural
disasters, and shall ensure the implementation of the plans.

 

Article 33 A port administration authority shall formulate port
contingency plan against accidents due to dangerous cargoes in port
that may jeopardize public interests, emergency plans for
evacuation and rescue of passengers in a major accident due to lack
of safe production and plans against natural disasters, and shall
establish a sound port emergency and rescue system major accidents
due to lack of safe production in port.

 

Article 34 Before a vessel enters or leaves a port, the matter
shall be reported to the maritime administration authority in
accordance with the provisions in laws and administrative
regulations concerning waterway traffic safety. After receiving the
report, the maritime administration authority shall, without delay,
notify the port administration authority thereof.

 

Before a vessel carrying dangerous cargoes enters or leaves a
port, the descriptions, characteristics and package of the cargoes
and the time of entry or departure shall be reported to the
maritime administration authority in accordance with the
regulations of the competent department of communications under the
State Council. After receiving the report, the maritime
administration authority shall make the decision whether to grant
approval or not within the time limit specified by the competent
department of communications under the State Council and notify the
reporter and the port administration authority of the decision.
However, fixed vessels navigating along fixed routes and carrying
fixed categories of cargoes may make the report on a regular
basis.

 

Article 35 Before loading, unloading and lightering dangerous
cargoes in a port area, the descriptions, characteristics and
package of the cargoes and the time and place for the operations
shall be reported to the port administration authority in
accordance with the regulations of the competent department of
communications under the State Council. After receiving the report,
the said authority shall make the decision whether to grant
approval or not within the time limit specified by the competent
department of communications under the State Council and notify the
reporter and the maritime administration authority of the
decision.

 

Article 36 A port administration authority shall, in accordance
with law, conduct supervision and inspection of safe production in
the port and maintain patrol of key docks where masses of
passengers embark and disembark or relatively large quantities of
cargoes are loaded and unloaded, or which are used for special
purposes. If hidden dangers threatening safety are found during
inspection, it shall instruct the party under inspection to
eliminate, immediately or within a time limit, such dangers.

 

The department in charge of supervision of safe production and
other departments concerned shall, within the limits of their
respective duties, conduct supervision and inspection of safe
production in the port in accordance with the provisions of laws
and regulations.

 

Article 37 Aquaculture and planting in the water area of a port
is prohibited.

 

Excavation, demolition and other activities in a port area that
may threaten port safety are prohibited; but where such activities
are really needed for construction or other purposes, the necessary
protective measures for safety shall be taken and the activities
shall be reported to the port administration authority for
approval; and where, according to the provisions of the laws and
administrative regulations concerning waterway traffic safety,
approval by the maritime administration authority is required, such
activities shall, in addition, be reported to the said authority
for approval.

 

Dumping of soil and sand and stone into the water area of a port
and discharging of noxious and harmful substances in excess of the
specified norms in violation of laws and regulations concerning
environmental protection are prohibited.

 

Article 38 With respect to the construction of bridges,
submarine tunnels, hydropower stations and other projects that may
change the hydrologic conditions of a port, the department
responsible for examination and approval of such projects shall
consult with the port administration authority beforehand.

 

Article 39 With respect to vessels which need be piloted into or
out of a port in accordance with the laws and administrative
regulations concerning waterway traffic safety, an application for
pilotage shall be submitted to the pilotage authority. The specific
measures for pilotage shall be formulated by the competent
department of communications under the State Council.

 

Article 40 In conditions where passengers and cargoes are held
up so that the port is blockaded, the port administration authority
shall take effective measures in time to regulate the flow of
passengers and cargoes; and when it deems it necessary, the
people’s government of the city or county where the port is located
may directly take measures to do so.

 

Article 41 The port administration authority shall take charge
of the formulation of the charter of the port under its
administration and make the charter known to the public.

 

The contents of the port charter shall include the descriptions
of the port’s geographical position, fairway conditions, harbor
depth, mechanical equipment, cargo handling capacity, etc.,
together with the specific measures taken by this port for the
implementation of laws and regulations concerning port
administration and the relevant regulations of the competent
department of communications under the State Council.

 

Article 42 The port administration authority shall supervise and
inspect the implementation of this Law in compliance with its
duties.

 

When exercising supervision and inspection in accordance with
law, the supervisors or inspectors from the port administration
authority shall have the right to ask the unit under inspection and
the individuals concerned for relevant information and to look up
and duplicate relevant materials.

 

The supervisor or inspector shall keep confidential the business
secrecies learnt during inspection.

 

The supervisor or inspector shall produce his law-enforcement
papers when exercising supervision and inspection.

 

Article 43 The supervisor or inspector shall keep a written
record of the time, place and items of supervision and inspection,
the problems found, and the solutions thereof, and the record shall
be signed by the supervisor or inspector and the person in charge
of the unit under inspection. Where the person in charge of the
unit under inspection refuses to sign, the supervisor or inspector
shall put such refusal on record and report it to the port
administration authority.

 

Article 44 The unit under inspection and individuals concerned
shall accept the supervision and inspection conducted by the port
administration authority in accordance with law, truthfully provide
the relevant information and materials and shall not refuse to
accept inspection, conceal the relevant information and materials,
or provide false information and materials.

 

Chapter V

Legal Responsibilities

 

Article 45 Whoever commits one of the following acts shall be
instructed by the local people’s government at or above the county
level or by the port administration authority to rectify within a
time limit; if he fails to do so at the expiration of the time
limit, the authority that makes the decision for rectification
within a time limit shall apply to the people’s court for
compulsory demolishing of the facilities constructed in violation
of law; and a fine of not more than RMB 50,000 yuan may be imposed
on him:

 

(1) constructing a port, dock or other port facilities at
variance with port plans; or

 

(2) using port coastlines in the construction of port facilities
without obtaining approval in accordance with law.

 

Where the department in charge of examination and approval of
construction projects grants approval to the construction of a
project at variance with port plans, the persons directly in charge
and the other persons directly responsible shall be given
administrative sanctions in accordance with law.

 

Article 46 Whoever, without obtaining approval in accordance
with law, has places constructed in a port for handling dangerous
cargoes or special places constructed for sanitation and pest
elimination, or fails to keep the distance between the said places
and the densely-populated districts or the passenger transport
facilities in the port in conformity with the regulations of the
relevant departments under the State Council shall be instructed by
the port administration authority to stop their construction or use
and to rectify within a time limit and may be imposed a fine of not
more than 50,000 yuan.

 

Article 47 Whoever puts into use the handling facilities or
passenger transport facilities which are not checked and accepted
as qualified shall be instructed by the port administration
authority to stop their use and to rectify within a time limit and
may be imposed a fine of not more than 50,000 yuan.

 

Article 48 Whoever commits one of the following acts shall be
instructed by the port administration authority to stop the illegal
operation, and his illegal gains shall be confiscated; where the
illegal gains exceed 100,000 yuan, he shall, in addition, be fined
not less than two times but not more than five times the illegal
gains; and where the illegal gains are less than 100,000 yuan, he
shall be fined not less than 50,000 yuan but not more than 200,000
yuan :

 

(1) engaging in port operation without obtaining a port
operation permit in accordance with law;

 

(2) engaging in port tallying without obtaining permission in
accordance with law; or

 

(3) in the case of a port tallyman, concurrently engaging in
loading, unloading or storing cargoes.

 

For a person who commits the act specified in Sub-paragraph (3)
of the preceding paragraph, if the circumstances are serious, his
port tallying permit shall be revoked by the relevant competent
authority.

 

Article 49 Where a port operator does not give first priority to
the materials for use in emergency, materials for relief of
disasters and materials urgently needed for the buildup of national
defence, he shall be instructed by the port administration
authority to rectify; and if the consequences are serious, his port
operation permit shall be revoked by the authority.

 

Article 50 Where a port operator, in violation of the provisions
of relevant laws and administrative regulations, makes a monopoly
of the operation or conduct illegitimate competition, he shall bear
legal responsibility in accordance with the provisions of relevant
laws and administrative regulations.

 

Article 51 Where a port operator violates of the provisions in
Article 32 of this Law concerning safe production, he shall, in
accordance with law, be sanctioned by the port administration
authority or other departments charged with the duty of supervising
safe production in accordance with law; if the circumstances are
serious, the port administration authority shall revoke his port
operation permit and shall punish the principal leading member in
accordance with law; and if a crime is constituted, the offender
shall be investigated for criminal responsibility in accordance
with law.

 

Article 52 Where, before entering or leaving a port, a vessel
fails to report to the maritime administration authority in
accordance with the provisions in Article 34 of this Law, the said
authority shall impose a punishment according to the provisions in
the laws and administrative regulations concerning waterway traffic
safety.

 

Article 53 Whoever fails to report to and obtain approval from
the port administration authority in accordance with law before
loading, unloading and lightering dangerous cargoes in a port area
shall be instructed by the port administration authority to stop
the operation and shall be fined not less than 5,000 yuan but not
more than 50,000 yuan.

 

Article 54 Whoever engages in aquiculture or planting in the
water area of a port shall be instructed by the maritime
administration authority to rectify within a time limit; if he
fails to do so at the expiration of the time limit, the cultivation
and planting facilities shall be demolished compulsorily, and the
expenses thus entailed shall be borne by the law-breaker; and he
may be fined not more than 10,000 yuan.

 

Article 55 Whoever, without obtaining approval in accordance
with law, engages in excavation, demolition or other activities in
a port area that may threaten port safety, or dumps soil or sand
and stone into the water area of a port shall be instructed by the
port administration authority to stop the illegal acts and
eliminate, within a time limit, the hidden dangers that threaten
safety; if he fails to eliminate the hidden dangers at the
expiration of the time limit, the dangers shall be eliminated
compulsorily and the expenses thus entailed shall be borne by the
law-breaker; he shall be fined not less than 5,000 yuan but not
more than 50,000 yuan; where, according to the provisions in the
laws and administrative regulations concerning waterway traffic
safety, punishment shall be imposed by the maritime administration
authority, those provisions shall prevail; and if a crime is
constituted, the offender shall be investigated for criminal
responsibility in accordance with law.

 

Article 56 Where the competent department of communications, the
port administration authority or the maritime administration
authority fails to perform its duties in accordance with law and
commits one of the following acts, the persons directly in charge
and the other persons directly responsible shall be given
administrative sanctions in accordance with law; if a crime is
constituted, criminal responsibility shall be investigated in
accordance with law:

 

(1) in violation of law, approving the use of port coastlines
for the construction of port facilities, or approving construction
of places in port for handling dangerous cargoes or special places
for sanitation and pest elimination, or approving the entry or
departure of a vessel carrying dangerous cargoes, or approving the
loading, unloading or lightering of dangerous cargoes in port;

 

(2) granting permission for port operation or port tallying to
applicants who do not meet the statutory requirements;

 

(3) failing to revoke the permit obtained by a the port operator
or port tallyman immediately after discovering that he no longer
meets the statutory permission requirements; or

 

(4) failing to perform the duties of supervision and inspection
in accordance with law and failing to investigate and impose
punishment on the construction of ports, docks or other port
facilities at variance with port plans, on port operation or port
tallying engaged in without obtaining permission in accordance with
law, on failure to comply with the regulations concerning
administration of safe production, on acts threatening the safety
of port operation, and on other acts violating the provisions of
this Law.

 

Article 57 Where an administrative organ interferes with the
right of a port operator to make his own decisions for his
operation, it shall be instructed by the administrative organ at
the next higher level or a supervisory authority to rectify; where
such an organ collects money or things of value from among port
operators or collects fees from among them in violation of law, it
shall be instructed to return the same; and if the circumstances
are serious, the persons directly in charge and the other persons
directly responsible shall be given administrative sanctions in
accordance with law.

 

Chapter VI

Supplementary Provisions

 

Article 58 To open a port to vessels navigating along
international routes, the relevant people’s government of the
province, autonomous region, or municipality directly under the
Central Government shall, in accordance with the relevant
regulations of the States, consult the relevant departments under
the State Council and the military authorities concerned and, after
obtaining their consent, submit the matter to the State Council for
approval.

 

Article 59 The competent fishery administration department of
the people’s government at or above the county level shall be in
charge of the administration of fishery ports. The specific
measures in this regard shall be formulated by the State
Council.

 

As used in the preceding paragraph, fishery ports mean man-made
ports or natural harbors, including the special fishing harbors,
special water areas for fishery and special anchorages for fishing
boats in a multi-purpose port, which are specially in the service
of fishery production, for fishing boats to anchor, to take shelter
from the winds, to load and unload their catches and to replenish
the supply of the necessities for fishing.

 

Article 60 The measures for the construction and administration
of military ports shall be formulated by the State Council and the
Central Military Commission.

 

Article 61 This Law shall go into effect as of January 1,
2004

 

(Legislative Affairs Commission of the Standing
Committee of the National People’s Congress)