关键词：Securities

Article 161. Personnel directly in charge and other directly responsible

personnel of a company that presents false financial accounts or financial

accounts with concealment of material facts to its shareholders and members

of the public, that seriously hurt their interests, shall be punished with

imprisonment or criminal detention of less than three years, with a fine or

a separately imposed fine of over 20,000 yuan and less than 200,000 yuan.

Article 162. Personnel directly in charge and other directly responsible

personnel of a company or an enterprise that, during its liquidation

process, conceal property or make false entries in its balance sheet or

asset list, or distribute company or enterprise assets before repaying

debts that seriously hurt the interests of creditors and other people,

shall be punished with imprisonment or criminal detention of less than five

years, with a fine or a separately imposed fine of over 20,000 yuan but

less than 200,000 yuan.

Article 163. Enterprise work personnel who make use of their job

opportunity to demand property from others, or illegally receive others

property in exchange for benefits, shall, in cases involving relatively

large amounts, be punished with imprisonment or criminal detention for less

than five years; for cases involving a large amount, with imprisonment of

over five years, and may be subject to forfeiture of property.

Company and enterprise work personnel, who, in the course of economic

contacts, receive personal kick-backs and commissions in various forms in

violation of state rules, shall be punished according to provisions under

the preceding paragraph.

Personnel performing public duties in state-owned companies and

enterprises, and personnel assigned by state- owned companies and

enterprises to non-state-owned companies and enterprises for performance of

public duties found to be committing the acts mentioned in the two

preceding paragraphs, shall be convicted and punished according to

provisions under Articles 385 and 386 of this law.

Article 164. Offering property to company and enterprise work personnel

for improper benefits shall in cases involving relatively large amounts be

punished with imprisonment or criminal detention for less than three years,

for cases involving a large amount, with imprisonment of over three years

but less than 10 years, and with fine.

Units committing offenses under the preceding paragraph shall be punished

with a fine, with personnel directly in charge and other directly

responsible personnel being punished according to provisions of the

preceding paragraph.

A briber who confesses his bribery act before prosecution may receive a

lighter sentence or a waiver for punishment.

Article 165. Directors and managers of state-owned companies or

enterprises who, in order to gain illegal benefits, make use of their job

opportunity to conduct for themselves or others business similar to that

conducted by companies or enterprises to which they attach, shall, in cases

involving a large amount, be punished with imprisonment or criminal

detention for less than three years, with a fine or a separately imposed

fine, for cases involving extraordinarily large amounts, with imprisonment

of over three years but less than seven years, and with fine.

Article 166. Work personnel in state-owned companies, enterprises, or

institutions, who use their job opportunity to commit the following acts

that seriously hurt state interests, shall be punished with imprisonment or

criminal detention of less than three years, with a fine or a separately

imposed fine; for cases that cause extraordinary huge losses to state

interests, with imprisonment of over three years and less than seven years,

and with fine:

(1) offering profitable business conducted by their own units to their

relatives and friends for operation;

(2) buying merchandise from units operated and managed by their

relatives and friends at a price apparently higher than market price

or selling merchandise to units operated and managed by their

relatives and friends at a price apparently lower than market price; or

(3) buying substandard merchandise from units operated and managed by

their relatives and friends.

Article 167. People directly in charge of state-owned companies,

enterprises, or institutions who are defrauded because of serious

irresponsibility during the process of signing or fulfilling contracts and

thus cause great damage to national interests shall be sentenced to not

more than three years in prison or criminal detention. If they cause

especially serious damage to national interests, they shall be sentenced to

not less than three years and not more than seven years in prison.

Article 168. People directly in charge of state-owned companies or

enterprises who cause their companies or enterprises to go bankrupt or

suffer serious losses through the practice of favoritism and thus cause

great damage to national interests shall be sentenced to not more than

three years in prison or criminal detention.

Article 169. People directly in charge of state-owned companies or

enterprises or higher competent departments who cause great damage to

national interests by practicing favoritism and converting state-owned

assets into low-value stocks or selling them at a low price shall be

sentenced to not more than three years in prison or criminal detention.

They shall be sentenced to not less than three years and not more than

seven years in prison if they cause especially serious damage to national

interests.

Section 4. The Crimes of Undermining the Order of Financial Management

Article 170. Whoever counterfeits money shall be sentenced to not less

than three years and not more than 10 years in prison. In addition, he or

she shall be fined not less than 50,000 yuan and not more than 500,000

yuan. In any of the following circumstances, he or she shall be sentenced

to not less than 10 years in prison, life imprisonment, or death. In

addition, he or she shall be fined not less than 50,000 yuan and not more

than 500,000 yuan or have his or her property confiscated:

(1) Where the individual concerned is the ringleader of a

money-counterfeiting ring;

(2) Where the amount of money involved is especially large;

(3) Other especially serious circumstances.

Article 171. Whoever sells or buys a substantial amount of counterfeit

money or transports it with the full knowledge that it is counterfeit shall

be sentenced to not more than three years in prison or criminal detention.

In addition, he or she shall be fined not less than 20,000 yuan and not

more than 200,000 yuan. If the amount involved is large, he or she shall be

sentenced to not less than three years and not more than 10 years in

prison. In addition, he or she shall be fined not less than 50,000 yuan and

not more than 500,000 yuan. If the amount is especially huge, he or she

shall be sentenced to not less than 10 years in prison or life

imprisonment. In addition, he or she shall be fined not less than 50,000

yuan and not more than 500,000 yuan or have his or her property

confiscated.

Employees of banks or other financial institutions who buy counterfeit

money or take advantage of their positions to trade counterfeit money for

real currency shall be sentenced to not less than three years and not more

than 10 years in prison. In addition, they shall be fined not less than

20,000 yuan and not more than 200,000 yuan. If the amount involved is large

or if the circumstances are serious, they shall be sentenced to not less

than 10 years in prison or life imprisonment. In addition, they shall be

fined not less than 20,000 yuan and not more than 200,000 yuan or have

their property confiscated. If the circumstances are not so serious, they

shall be sentenced to not more than three years in prison or criminal

detention.

They shall be fined, additionally or exclusively, not less than 10,000 yuan

and not more than 100,000 yuan.

Whoever counterfeits money and sells or transports the counterfeit money

shall be convicted and given stiff punishment in accordance with the

provisions in Article 170 of this law.

Article 172. Whoever knowingly possesses or uses a substantial amount of

counterfeit money shall be sentenced to not more than three years in prison

or criminal detention. He or she shall be fined, additionally or

exclusively, not less than 10,000 yuan and not more than 100,000 yuan. If

the amount involved is large, he or she shall be sentenced to not less than

three years and not more than 10 years in prison. In addition, he or she

shall be fined not less than 20,000 yuan and not more than 200,000 yuan. If

the amount is especially large, he or she shall be sentenced to not less

than 10 years in prison. In addition, he or she shall be fined not less than 50,000 yuan and not more than 500,000 yuan or have his or her property confiscated.

Article 173. Whoever alters a substantial amount of money shall be sentenced to not more than three years in prison or criminal detention. He or she shall be fined, additionally or exclusively, not less than 10,000 yuan and not more than 100,000 yuan. If the amount is large, he or she shall be sentenced to not less than three years and not more than 10 years in prison. In addition, he or she shall be fined not less than 20,000 yuan and not more than 200,000 yuan.

Article 174. Whoever sets up a commercial bank or any other financial institution without the People's Bank of China's permission shall be sentenced to not more than three years in prison or criminal detention. He or she shall be fined, additionally or exclusively, not less than 20,000 yuan and not more than 200,000 yuan. If the circumstances are serious, he or she shall be sentenced to not less than three years and not more than 10 years in prison. In addition, he or she shall be fined not less than 50,000 yuan and not more than 500,000 yuan.

Whoever forges, alters, or transfers the business licenses of commercial banks or other financial institutions shall be punished in accordance with the provisions in the preceding paragraph.

Where the crimes mentioned in the preceding two paragraphs are committed by a unit, the unit in question shall be fined, and the individual directly in charge of it and other people who are directly responsible shall be punished in accordance with the first paragraph.

Article 175. Whoever illegally obtains credit funds from a financial

institution and relends them to other people at a high interest rate with

the aim of making a profit shall be sentenced to not more than three years

in prison or criminal detention, if the amount of illegal proceeds is

substantial. In addition, he or she shall be fined a sum not less than 100

percent and not more than 500 percent as high as the amount of illegal

proceeds. If the amount involved is large, he or she shall be sentenced to

not less than three years and not more than seven years in prison. In

addition, he or she shall be fined a sum not less than 100 percent and not

more than 500 percent as high as the amount of illegal proceeds.

If the crime mentioned in the preceding paragraph is committed by a unit,

the unit in question shall be fined, and the individual directly in charge

of it and other people who are directly responsible shall be sentenced to

not more than three years in prison or criminal detention.

Article 176. Whoever takes deposits from people illegally or in disguised

form and disrupts financial order shall be sentenced to not more than three

years in prison or criminal detention. He or she shall be fined,

additionally or exclusively, not less than 20,000 yuan and not more than

200,000 yuan. If the amount involved is large or if the circumstances are

otherwise serious, he or she shall be sentenced to not less than three

years and not more than 10 years in prison. In addition, he or she shall be

fined not less than 50,000 yuan and not more than 500,000 yuan.

If the crime mentioned in the preceding paragraph is committed by a unit,

the unit in question shall be fined, and the individual directly in charge

of it and other people who are directly responsible shall be punished in

accordance with the provisions in the preceding paragraph.

Article 177. Whoever forges or alters financial bills in any of the

following ways shall be sentenced to not more than five years in prison or

criminal detention. He or she shall be fined, additionally or exclusively,

not less than 20,000 yuan and not more than 200,000 yuan. If the

circumstances are serious, he or she shall be sentenced to not less than

five years and not more than 10 years in prison. In addition, he or she

shall be fined not less than 50,000 yuan and not more than 500,000 yuan. If

the circumstances are especially serious, he or she shall be sentenced to

not less than 10 years in prison or life imprisonment. In addition, he or

she shall be fined not less than 50,000 yuan and not more than 500,000 yuan

or have his or her property confiscated:

(1) Forging or altering bank drafts, cashier's checks, and checks;

(2) Forging or altering documents authorizing collection of payments,

remittance documents, certificates of deposit, and other

account-settlement documents;

(3) Forging or altering letters of credit or accompanying documents;

(4) Forging credit cards.

If the crimes mentioned in the preceding paragraph are committed by a unit,

the unit in question shall be fined, and the individual directly in charge

of it and other people who are directly responsible shall be punished in

accordance with the provisions in the preceding paragraph.

Article 178. Whoever forges or alters treasury bonds or other negotiable

securities issued by the state involving a substantial amount of money

shall be sentenced to not more than three years in prison or criminal

detention. He or she shall be fined, additionally or exclusively, not less

than 20,000 yuan and not more than 200,000 yuan. If the amount is large, he

or she shall be sentenced to not less than three years and not more than 10

years in prison. In addition, he or she shall be fined not less than 50,000

yuan and not more than 500,000 yuan. If the amount is especially large, he

or she shall be sentenced to not less than 10 years in prison or life

imprisonment. In addition, he or she shall be fined not less than 50,000

yuan and not more than 500,000 yuan or have his or her property

confiscated.

Whoever forges or alters share certificates or company and enterprise bonds

involving a substantial amount of money shall be sentenced to not more than

three years in prison or criminal detention. He or she shall be fined,

additionally or exclusively, not less than 10,000 yuan and not more than

100,000 yuan. If the amount is large, he or she shall be sentenced to not

less than three years and not more than 10 years in prison. In addition, he

or she shall be fined not less than 20,000 yuan and not more than 200,000

yuan.

If the crimes mentioned in the preceding two paragraphs are committed by a

unit, the unit in question shall be fined, and the individual directly in

charge of it and other people who are directly responsible shall be

punished in accordance with the provisions in the preceding two paragraphs.

Article 179. Whoever issues shares or company and enterprise bonds

involving a large amount of money without the permission of relevant state

departments shall be sentenced to not more than five years in prison or

criminal detention if the consequences are serious or if the circumstances

are otherwise serious. He or she shall be fined, additionally or

exclusively, a sum not less than 1 percent and not more than 5 percent of

the illegally raised funds.

If the crime mentioned in the preceding paragraph is committed by a unit,

the unit in question shall be fined, and the individual directly in charge

of it and other people who are directly responsible shall be sentenced to

not more than five years in prison or criminal detention.

Article 180. People who have inside information on securities trading,

illegally obtain inside information on securities trading, or buy or sell

securities or leak relevant information prior to the release of information

that could have a major effect on the issuance and trading of the

securities concerned or on the price of other securities shall be sentenced

to not more than five years in prison or criminal detention, provided the

circumstances are serious. They shall be fined, additionally or

exclusively, a sum not less than 100 percent and not more than 500 percent

as high as their illegal proceeds. If the circumstances are especially

serious, they shall be sentenced to not less than five years and not more

than 10 years in prison. In addition, they shall be fined a sum not less

than 100 percent and not more than 500 percent as high as their illegal

proceeds.

If the crimes mentioned in the preceding paragraph are committed by a unit,

the unit in question shall be fined, and the individual directly in charge

of it or people who are directly responsible shall be sentenced to not more

than five years in prison or criminal detention.

The scope of inside information shall be defined by relevant provisions in

laws and administrative rules.

People with inside information shall be defined by relevant provisions in

laws and administrative rules.

Article 181. Whoever disrupts securities trading markets and causes

serious consequences by fabricating or disseminating false information that

could have an effect on securities trading shall be sentenced to not more

than five years in prison or criminal detention. He or she shall be fined,

additionally or exclusively, not less than 10,000 yuan and not more than

100,000 yuan.

Employees of securities exchanges, securities companies, securities

associations, or securities management departments shall be sentenced to

not more than five years in prison or criminal detention if they

intentionally provide false information; forge, alter, or destroy trading

records; or trick investors into buying or selling securities, giving rise

to serious consequences. They shall be fined, additionally or exclusively,

not less than 10,000 yuan and not more than 100,000 yuan. If the

circumstances are especially adverse, they shall be sentenced to not less

than five years and not more than 10 years in prison. In addition, they

shall be fined not less than 20,000 yuan and not more than 200,000 yuan.

If the crimes mentioned in the preceding two paragraphs are committed by a

unit, the unit in question shall be fined, and the individual directly in

charge of it and other people who are directly responsible shall be

sentenced to not more than five years in prison or criminal detention.

Article 182. Whoever rigs securities trading prices and obtains

illegitimate benefits or shifts the risk in any of the following ways shall

be sentenced to not more than five years in prison or criminal detention,

provided the circumstances are serious. He or she shall be fined,

additionally or exclusively, a sum not less than 100 percent and not more

than 500 percent as high as his or her illegal proceeds:

(1) Taking advantage of one's financial strength, stock holdings, or

information to jointly or continuously sell or buy securities and rig

securities trading prices, either on one's own or by conspiring with

other people;

(2) Affecting securities trading prices or volume by conducting

securities transactions with each other or by buying or selling each

other's securities at a predetermined time and price and through a

predetermined method in collaboration with other people;

(3) Affecting securities trading prices or volume by taking oneself as

the only party to a transaction and buying from or selling to oneself

without transferring the right to own the securities;

(4) Rigging securities trading prices by other means.

If the crimes mentioned in the preceding paragraph are committed by a unit,

the unit in question shall be fined, and the individual directly in charge

of it or other people directly responsible shall be sentenced to not more

than five years in prison or criminal detention.

Article 183. Personnel of insurance companies who take advantage of their

office to intentionally make false claims on insured incidents which have

not occurred to defraud insurance indemnity are to be sentenced and

punished in accordance with the stipulations of Article 271 of this law.

Personnel of state-owned insurance companies and personnel delegated by

state-owned insurance companies to perform official duties in

non-state-owned insurance companies who commit an act mentioned in the

preceding paragraph are to be sentenced and punished in accordance with the

stipulations in Article 382 and Article 383 of this law.

Article 184. Personnel of banks or other monetary institutions who ask

others for money or goods, or illegally accept money or goods from others

in activities of monetary business and seek benefits for others, or accept

rebate or service charges for themselves under various pretexts in

violation of state stipulations are to be sentenced and punished in

accordance with the stipulations of Article 163 of this law.

Personnel of state-owned monetary institutions and personnel delegated by

state-owned monetary institutions to perform official duties in

non-state-owned monetary institutions who commit an act mentioned in the

preceding paragraph are to be sentenced and punished in accordance with the

stipulations in Article 385 and Article 386 of this law.

Article 185. Personnel of banks or other monetary institutions who take

advantage of their office to misappropriate funds of their respective

institutions or customers are to be sentenced and punished in accordance

with the stipulations of Article 272 of this law.

Personnel of state-owned monetary institutions and personnel delegated by

state-owned monetary institutions to perform official duties in

non-state-owned monetary institutions who commit an act mentioned in the

preceding paragraph are to be sentenced and punished in accordance with the

stipulations of Article 384 of this law.

Article 186. Personnel of banks or other monetary institutions who

violate the stipulations of laws and administrative regulations to grant

fiduciary loans to related people or to grant secured loans with conditions

better than those for granting similar loans to other borrowers, thus

causing relatively big losses, are to be sentenced to not more than five

years of fixed-term imprisonment or criminal detention, and to a fine of

not less than 10,000 yuan and not more than 100,000 yuan; when the losses

are serious, the sentence is to be not less than five years of fixed-term

imprisonment, and a fine of not less than 20,000 yuan and not more than

200,000 yuan.

Personnel of banks or other monetary institutions who violate the

stipulations of laws and administrative regulations to grant loans to

people other than the related people, thus causing serious losses, are to

be sentenced to not more than five years of imprisonment or criminal

detention, and a fine not less than 10,000 yuan and not more than 100,000

yuan; when the losses are especially serious, the sentence is to be not

less than five years of fixed-term imprisonment, and a fine not less than

20,000 yuan and not more than 200,000 yuan.

Institutions that commit a crime mentioned in the preceding two paragraphs

are to be sentenced to a fine, and personnel in charge directly responsible

for the crime and other personnel directly responsible for the crime are to

be punished in accordance with the stipulations in the preceding two

paragraphs.

The scope of related people is determined in accordance with "The Law of

Commercial Banks of the People's Republic of China" and other monetary laws

and regulations concerned.

Article 187. Personnel of banks or other monetary institutions who, with

the purpose of making profits, absorb customers' funds without entering an

item in their accounts, and illegally use such funds for calling or

granting loans, thus causing serious losses, are to be sentenced to not

more than five years of fixed-term imprisonment or criminal detention, and

to a fine not less than 20,000 yuan and not more than 200,000 yuan; when

the losses are especially serious, the sentence is to be not less than five

years of fixed-term imprisonment, and a fine of not less than 50,000 yuan

and not more than 500,000 yuan.

Institutions which commit a crime mentioned in the preceding paragraph is

to be sentenced to a fine, and personnel in charge directly responsible for

the crime and other personnel directly responsible for the crime are to be

punished in accordance with the stipulations in the preceding paragraph.

Article 188. Personnel of banks or other monetary institutions who

violate stipulations to issue for others letters of credit, or other

letters of guarantee, bills, deposit receipts, and credit certificates,

thus causing relatively serious losses, are to be sentenced to not more

than five years of fixed-term imprisonment or criminal detention; when the

losses are very serious, the sentence is to be not less than five years of

fixed-term imprisonment.

Institutions which commit a crime mentioned in the preceding paragraph are

to be sentenced to a fine, and personnel in charge directly responsible for the crime, or other personnel directly responsible for the crime are to be punished in accordance with the stipulations of the preceding paragraph.

Article 189. Personnel of banks or other monetary institutions who, in handling bills, accept, make payment for, or stand guarantee for, bills which are issued in violation of laws and regulation, thus causing serious losses, are to be sentenced to not more than five years of fixed-term imprisonment or criminal detention; when the losses are especially serious, the sentence is to be not less than five years of fixed-term imprisonment.

Institutions that commit a crime mentioned in the preceding paragraph are to be sentenced to a fine, and personnel in charge directly responsible for the crime and other personnel directly responsible for the crime are to be punished in accordance with the stipulations in the preceding paragraph.

Article 190. State-owned companies, enterprises, or other state-owned institutions which violate state stipulations and deposit foreign exchange abroad without authorization, or illegally transfer foreign exchange abroad, and the circumstances are series, are to be sentenced to a fine, and personnel in charge directly responsible for it, and other personnel directly responsible for it are to be sentenced to not more than five years of fixed-term imprisonment or criminal detention.

Article 191. Whoever commit any of the acts below to cover up or withhold the source or nature of what one knows is obtained from narcotics crimes, organized crimes of the underworld, or crimes of smuggling, or gains obtained through such crimes, are to be sentenced to not more than five years of fixed-term imprisonment or criminal detention, and are to be in addition or exclusively sentenced to a fine not less than 5 percent and not more than 20 percent of the amount of money laundered, and the gains obtained through committing the crimes mentioned above are to be confiscated; when the circumstances are serious, the sentence is to be not less than five years and not more than 10 years of fixed-term imprisonment and a fine not less than 5 percent and not more than 20 percent of the amount of money laundered:

(1) providing funds accounts;

(2) assisting to turn money and goods into cash or financial

instruments;

(3) assisting to transfer funds through transferring accounts, or

other ways of settling accounts;

(4) assisting to remit funds abroad; and

(5) other ways to cover up and withhold what is illegally obtained

through committing crimes, and the nature and sources of such gains.

Institutions which commit a crime mentioned in the preceding paragraph are

to be sentenced to a fine, and personnel in charge directly responsible for

the crime and other personnel directly responsible for the crime are to be

sentenced to not more than five years of fixed-term imprisonment or

criminal detention.

Section 5. Crimes of Financial Fraud

Article 192. Whoever for the purpose of illegal possession illegally

raises funds by fraudulent means, if the amount is quite big, is to be

sentenced to not more than five years of fixed-term imprisonment or

criminal detention, and to a fine of not less than 20,000 yuan and not more

than 200,000 yuan; when the amount is enormous or other circumstances are

serious, the sentence is to be not less than five years and not more than

10 years of fixed-term imprisonment, and a fine of not less than 50,000

yuan and not more than 500,000 yuan; when the amount is especially enormous

or other circumstances are especially serious, the sentence is to be not

less than 10 years of fixed-term imprisonment or life imprisonment, and a

fine not less than 50,000 yuan and not more than 500,000 yuan or

confiscation of property.

Article 193. Whoever for the purpose of illegal possession commits any of

the following acts to defraud the banks or other monetary institutions of

loans, if the amount is quite big, is to be sentenced to not more than five

years of fixed-term imprisonment or criminal detention, and a fine of not

less than 20,000 yuan and not more than 200,000 yuan; when the amount is

enormous or other circumstances are serious, the sentence is to be not less

than five years and not more than 10 years of fixed-term imprisonment and a

fine of not less than 50,000 yuan and not more than 500,000 yuan; when the

amount is especially enormous or other circumstances are especially

serious, the sentence is to be not less than 10 years of fixed-term

imprisonment or life imprisonment, and a fine of not less than 50,000 yuan

and not more than 500,000 yuan, or confiscation of property:

(1) cooking up false reasons for importing funds or projects;

(2) using false economic contracts;

(3) using false certificates;

(4) using false property right certificates for guarantee or making

duplicate guarantee exceeding the value of the mortgaged goods; and

(5) defrauding loans by other means.

Article 194. Whoever commits any of the following acts to carry out

fraudulent activities with financial bills, if the amount is quite big, is

to be sentenced to not more than five years of fixed-term imprisonment or

criminal detention, and to a fine of not less than 20,000 yuan and not more

than 200,000 yuan; when the amount is enormous, or other circumstances are

serious, the sentence is to be not less than five years and not more than

10 years of fixed-term imprisonment, and a fine of not less than 50,000

yuan and not more than 500,000 yuan; when the amount is especially enormous

or other circumstances are especially serious, the sentence is to be not

less than 10 years of fixed-term imprisonment or life imprisonment and a

fine of not less than 50,000 yuan and not more than 500,000 yuan, or

confiscation of property:

(1) knowingly using forged, altered drafts, cashier's checks, and

checks;

(2) knowingly using voided drafts, cashier's checks, checks;

(3) uttering other people's drafts, cashier's checks, checks;

(4) signing a dud check or a check with signature different from the

specimen one;

(5) issuing drafts or cashier's checks without guaranteed funds, or

making false records in issuing drafts or cashier's checks to defraud

money and goods.

Whoever uses forged and altered documents of authority for collection,

remittance documents, bank certificates of deposit, and other bank

documents of settlement is to be punished in accordance with the

stipulations of the preceding paragraph.

Article 195. Whoever uses one of the following ways for fraudulent

activities with letters of credit is to be sentenced to not more than five

years of fixed-term imprisonment or criminal detention, and a find of not

less than 20,000 yuan and not more than 200,000 yuan; when the amount is

enormous or other circumstances are serious, the sentence is to be not less

than five years and not more than 10 years of fixed-term imprisonment, and

a fine of not less than 50,000 yuan and not more than 500,000 yuan; when the amount is especially enormous or other circumstances are especially serious, the sentence is to be not less than 10 years of fixed-term imprisonment or life imprisonment, and a fine of not less than 50,000 yuan and not more than 500,000 yuan or confiscation of property:

(1) using forged or altered letters of credit or bills and documents attached;

(2) using voided letters of credit;

(3) obtaining letters of credit by fraud; and

(4) carrying out fraudulent activities with letters of credit in other ways.

Article 196. Whoever uses one of the following ways to carry out fraudulent activities with a credit card, if the amount is quite big, is to be sentenced to not more than five years of fixed-term imprisonment or criminal detention, and a fine of not less than 20,000 yuan and not more than 200,000 yuan; if the amount is enormous or other circumstances are serious, the sentence is to be not less than five years and not more than 10 years of fixed-term imprisonment, and a fine of not less than 50,000 yuan and not more than 500,000 yuan; if the amount is especially big, or other circumstances are especially serious, the sentence is to be not less than 10 years of fixed-term imprisonment or life imprisonment, and a fine not less than 50,000 and not more than 500,000 yuan, or confiscation of property:

(1) using a forged credit card;

(2) using a voided credit card;

(3) uttering other people's credit card; and

(4) overdrawing with evil intention.

The so-called overdrawing with evil intention mentioned in the preceding

paragraph means that the card holder, for the purpose of illegal

possession, overdraws exceeding the limit of overdrawn account or the time

limit, and refuses to return the money after the card-issuing bank demands

for the return.

Whoever steals a credit card and uses it is to be sentenced and punished in

accordance with the stipulations of Article 264 of this law.

Article 197. Whoever uses a relatively substantial amount of forged or

altered treasury bills or other negotiable securities issued by the state

to engage in fraudulent activities shall be sentenced to not more than five

years of fixed-term imprisonment or criminal detention and be fined no more

than 200,000 yuan but no less than 20,000 yuan; when the amount is large

and other serious circumstances are involved, the sentence shall be no more

than 10 years but no less than five years of fixed-term imprisonment and a

fine of no more than 500,000 yuan but no less than 50,000 yuan; and when

the amount is extraordinarily large and other especially serious

circumstances are involved, the sentence shall be life imprisonment or no

less than 10 years of fixed-term imprisonment and a fine of no more than

500,000 yuan but no less than 50,000 yuan, or confiscation of property.

Article 198. Fraudulent insurance activities falling under any one of the

following circumstances shall, for cases involving relatively large amounts

be punished with imprisonment or criminal detention of less than five

years, with a fine of over 10,000 yuan but less than 100,000 yuan; for

cases involving large amounts, or of a serious nature, with imprisonment of

over five years but less than 10 years, with a fine of over 20,000 yuan but

less than 200,000 yuan; for cases involving extraordinarily large amounts,

or of a serious nature, with imprisonment of over 10 years, with a fine of

over 20,000 yuan but less than 200,000 yuan, or with forfeiture of

property:

(1) policy holder intentionally fabricates insurance object to deceive

insurance money;

(2) policy holder, the insured, or the beneficiary fabricates false

causes to insurance incident or inflate the extent of loss to deceive

insurance money;

(3) policy holder, the insured, or the beneficiary fabricate

non-existing insurance incident to deceive insurance money;

(4) policy holder, the insured, or the beneficiary intentionally

create an insurance incident with property loss to deceive insurance

money; or

(5) policy holder or the beneficiary intentionally causes the death,

injury, or sickness of the insured to deceive insurance money.

Acts falling under preceding Paragraphs (4) and (5) which constitute other

crimes shall be punished for all offenses committed.

Units violating Paragraph (1) shall be punished with a fine, with personnel

directly in charge and other directly responsible personnel being punished

with imprisonment or criminal detention of less than five years; for cases

involving large amounts, or of a serious nature, with imprisonment of over

five years but less than 10 years; for cases involving extraordinarily

large amounts, with imprisonment of over five years but less than 10 years;

or, in cases involving an extraordinary large amount, or of a serious

nature, with imprisonment of over 10 years.

Appraisers, certifiers, and property valuers, who intentionally provide

false evidence to abet others to commit fraud, shall be punished as

insurance fraudulence accomplices.

Article 199. Offenders of Articles 192, 194, and 195 of this section that

cause extraordinarily heavy losses to the interests of the state and the

people shall be sentenced to life imprisonment or death, with forfeiture of

property.

Article 200. Units committing offenses under Articles 192, 194, and 195

of this section shall be punished with a fine, with personnel directly in

charge and other directly responsible personnel being punished with

imprisonment or criminal detention of less than five years; for cases

involving large amounts, or of a serious nature, with imprisonment over

five years and less than 10 years; for cases of extraordinary large amount,

or of a serious nature, with imprisonment of over 10 years or life

imprisonment.

Section 6. Offenses Against Tax Collection and Management

Article 201. Tax payers found guilty of forging, altering, concealing, or

indiscriminately destroying accounts books, entry proofs, or making

unsubstantiated expenditures, or failing to enter or enter lower income

items, or failing to submit tax returns after being notified by the tax

authorities, or submitting a false return, or failing to pay taxes or pay

less, or evading taxes exceeding 10 percent but less than 30 percent of

payable taxes, or evading taxes again after two administrative sanctions

for tax evasion, shall be punished with imprisonment or criminal detention

of less than three years, with a fine of over 100 percent but less than 500

percent of the evaded tax amount; for cases with evaded tax amount

exceeding 30 percent of payable taxes, or exceeding 100,000 yuan, with

imprisonment of over three years but less than seven years, with a fine of

over 100 percent but less than 500 percent of the evaded tax amount.

Withholding agents using the preceding means to refuse payment and full

payment of withheld or collected taxes, which are over 10 percent of

payable taxes or over 10,000 yuan, shall be punished in accordance with the

preceding paragraph.

Multiple commissions of the acts mentioned in the two preceding paragraphs

without detection shall be calculated on an accumulated basis.

Article 202. Using violence or threatening means to refuse payment of tax

shall be punished with imprisonment or criminal detention of less than

three years, with a fine of over 100 percent but less than 500 percent of

the amount of taxes so refused to pay; for cases of a serious nature, with

imprisonment of over three years but less than seven years, with a fine of

over 100 percent but less than 500 percent of the amount of taxes so

refused to pay.

Article 203. Taxpayers who fail to settle payable taxes, or transfer or

conceal property resulting in tax organs being unable to recover the owed

taxes of over 10,000 yuan but less than 100,000 yuan, shall be punished

with imprisonment or criminal detention of less than three years, with a

fine or a separately imposed fine of over 100 percent and less than 500

percent of the unsettled amount; if the amount in question exceeds 100,000

yuan, with imprisonment of over three years but less than seven years, with

a fine of over 100 percent but less than 500 percent of the unsettled

amount.

Article 204. Using false export reports or other fraudulent means to defraud state export tax refunds involving a relatively large amount shall be punished with imprisonment or criminal detention of less than five years, with a fine of over 100 percent but less than 500 percent of the defrauded tax refund; for cases involving large amounts or of a serious nature, with imprisonment of over five years but less than 10 years, with a fine of over 100 percent but less than 500 percent of the defrauded tax refund; for cases involving extraordinarily large amounts, or of a especially serious nature with imprisonment of over 10 years or life imprisonment, with a fine of over 100 percent but less than 500 percent of the defrauded tax refund, or with forfeiture of property.

Tax payers using the fraudulent means mentioned in preceding paragraph to deceptively reclaim their paid taxes shall be convicted and punished according to provisions of Article 201, with those who deceptively claim more than what they have paid, being punished according to provisions of the preceding paragraph.

Article 205. Falsely issuing exclusive value-added tax invoices or other invoices to defraud export tax refunds or to off set taxes shall be punished with imprisonment or criminal detention of less than three years, with a fine of over 20,000 yuan and less than 200,000 yuan; for cases involving relatively large amounts of falsely reported taxes, or of a serious nature, with imprisonment of over three years and less than 10 years, with a fine of over 50,000 yuan but less than 500,000 yuan; for cases involving large amounts of falsely reported taxes, or of a more serious nature, with imprisonment of over 10 years or life imprisonment, with a fine of over 50,000 yuan but less than 500,000 yuan, or with forfeiture of property.

Committing acts mentioned in the preceding paragraph to defraud state taxes shall, if the amount involved is extraordinarily large, and of a especially serious nature that causes particularly heavy losses to the state, be punished with life imprisonment or death, and with forfeiture of property.

Units committing offenses under this article shall be punished with a fine, with personnel directly in charge or other directly responsible personnel being punished with imprisonment of criminal detention of less than three years; for cases involving relatively large amounts of taxes, or with a serious nature, with imprisonment of over three years but less than ten years; for cases involving large amounts of taxes, or of a especially serious nature, with imprisonment of over 10 years or life imprisonment.

Falsely issuing exclusive value-added tax invoices or other invoices to defraud export tax refunds or to off set taxes refers to any false issuance intended for others or himself, or letting others falsely issue for him, or induce others to falsely issue.

Article 206. Forging or selling forged exclusive value- added tax invoices shall be punished with imprisonment or criminal detention of or restriction for less than three years, with a fine of over 20,000 yuan but less than 200,000 yuan; for cases involving relatively large quantities, or of a serious nature, with imprisonment of over three years and less than 10 years, with a fine of over 50,000 yuan but less than 500,000 yuan; for cases involving large quantities or of a especially serious nature, with imprisonment of over ten years or life imprisonment, with a fine of over 50,000 yuan but less than 500,000 yuan, or with forfeiture of property.

Committing forgery and the sale of forged exclusive value-added invoices in extraordinarily large quantities or of a especially serious nature that severely disrupt economic order shall be punished with life imprisonment or death, with forfeiture of property.

Units committing offenses under this article shall be punished with a fine, with personnel directly in charge or other directly responsible personnel being punished with imprisonment or criminal detention, or restriction for less than three years; for cases involving relatively large quantities or of a serious nature, with imprisonment of over three years but less than 10 years; for cases involving large quantities or of a especially serious nature, with imprisonment of over 10 years or life imprisonment.

Article 207. Committing illegal sale of exclusive value-added tax invoices shall be punished with imprisonment or criminal detention, or restriction for less than three years, with a fine over 20,000 yuan but less than 200,000 yuan.; for cases involving relatively large quantities, with imprisonment over three years but less than 10 years, with a fine of over 50,000 yuan but less than 500,000 yuan; for cases involving large quantity with imprisonment of over 10 years or life imprisonment, with a fine of over 50,000 yuan but less than 500,000 yuan, or with forfeiture of property.

Article 208. Illegal purchase of exclusive value-added tax invoices or forged exclusive value-added tax invoices shall be punished with imprisonment or criminal detention of less than five years, with a fine or a separately imposed fine of over 20,000 yuan and less than 200,000 yuan.

Falsely issuing or reselling illegally purchased exclusive value-added tax invoices or forged exclusive value-added tax invoices shall be convicted

and punished respectively under Articles 205, 206, and 207 of this law.

Article 209. Forging or manufacturing without authority or selling or

manufacturing without authority other invoices usable for defrauding export

tax refunds or offsetting taxes shall be punished with imprisonment or

criminal detention and restriction for less than three years, with a fine

of over 20,000 yuan but less than 200,000 yuan; for cases involving large

quantities, with imprisonment of over three years but less than seven

years, with a fine of over 50,000 yuan but less than 500,000 yuan; for

cases involving extraordinarily large quantities, with imprisonment of over

seven years, with a fine of over 50,000 yuan but less than 500,000 yuan, or

with forfeiture of property.

Forging or manufacturing without authority or selling other invoices

manufactured without authority, which have not been mentioned in the

preceding paragraph, shall be punished with imprisonment or criminal

detention of, or restriction for less than two years, with a fine of over

10,000 yuan but less than 50,000 yuan; for cases of a serious nature, with

imprisonment of over two years and less than seven years, with a fine of

over 50,000 yuan and less than 500,000 yuan.

Illegal sale of other invoices usable for defrauding export tax refunds or

offsetting taxes shall be punished according to the first paragraph.

Illegal sale of other invoices not mentioned in the third paragraph shall

be punished according to the second paragraph.

Article 210. Theft of exclusive value-added tax invoices or other

invoices usable in defrauding export tax refunds or offsetting taxes, shall

be convicted and punished according to Article 264 of this law.

Obtaining by fraudulent means exclusive value-added tax invoices or other

invoices usable in defrauding export tax refunds or offsetting taxes shall

be convicted and punished according to Article 266 of this law.

Article 211. Units committing offenses under Articles 201, 203, 204, 207,

208, and 209 of this section shall be punished with fines, with personnel

directly in charge and other directly responsible personnel being punished

according to these articles, respectively.

Article 212 Fines and forfeitures of property imposed against offenders

convicted under Articles 201 through 205 of this section should not be

enforced until the tax authorities have recovered the taxes in question and

the export tax refunds so defrauded.

Section 7. Infringement of Intellectual Property Rights

Article 213. Using an identical trademark on the same merchandise without

permission of its registered owner shall, if the case is of a serious

nature, be punished with imprisonment or criminal detention of less than

three years, with a fine, or a separately imposed fine; for cases of a more

serious nature, with imprisonment of over three years and less than seven

years, and with fine.

Article 214. Knowingly selling merchandise under a faked trademark with a

relatively large sales volume shall be punished with imprisonment or

criminal detention of less than three years, with a fine or a separately

imposed fine; in cases involving a large sales volume, with imprisonment of

more than three years but less than seven years, and with fine.

Article 215. Forging or manufacturing without authority or selling or

manufacturing without authority other's registered trademarks or

identifications shall, for cases of a serious nature, be punished with

imprisonment or criminal detention, or restriction for less than three

years, with a fine or a separately imposed fine; for cases of a especially

serious nature, with imprisonment of over three years and less than seven

years, and with fine.

Article 216. Whoever counterfeits other people's patents, and when the

circumstances are serious, is to be sentenced to not more than three years

of fixed-term imprisonment, criminal detention, and may in addition or

exclusively be sentenced to a fine.

Article 217. Whoever, for the purpose of reaping profits, has committed

one of the following acts of copyright infringement and gains a fairly

large amount of illicit income, or when there are other serious

circumstances, is to be sentenced to not more than three years of

fixed-term imprisonment, criminal detention, and may in addition or

exclusively be sentenced to a fine; when the amount of the illicit income

is huge or when there are other particularly serious circumstances, he is

to be sentenced to not less than three years and not more than seven years

of fixed-term imprisonment and a fine:

(1) copy and distribute written, musical, movie, televised, and video

works; computer software; and other works without the permission of

their copyrighters;

(2) publish books whose copyrights are exclusively owned by others;

(3) duplicate and distribute audiovisual works without the permission

of their producers;

(4) produce and sell artistic works bearing fake signatures of others.

Article 218. Whoever, for the purpose of reaping profits, knowingly sells

the duplicate works described in Article 217 of this Law, and gains a huge

amount of illicit income, is to be sentenced to not more than three years

of fixed-term imprisonment, criminal detention, and may in addition or

exclusively be sentenced to a fine.

Article 219. Whoever engages in one of the following activities which

encroaches upon commercial secrets and brings significant losses to persons

having the rights to the commercial secrets is to be sentenced to not more

than three years of fixed-term imprisonment, criminal detention, and may in

addition or exclusively be sentenced to a fine; or is to be sentenced to

not less than three years and not more than seven years of fixed-term

imprisonment and a fine, if he causes particularly serious consequences:

(1) acquire a rightful owner's commercial secrets via theft, lure by

promise of gain, threat, or other improper means;

(2) disclose, use, or allow others to use a rightful owner's

commercial secrets which are acquired through the aforementioned

means;

(3) disclose, use, or allow others to use, in violation of the

agreement with the rightful owner or the rightful owner's request of

keeping the commercial secrets, the commercial secrets he is holding.

Whoever acquires, uses, or discloses other people's commercial secrets,

when he knows or should know that these commercial secrets are acquired

through the aforementioned means, is regarded as an encroachment upon

commercial secrets.

The commercial secrets referred to in this article are technical

information and operation information that are unknown to the public, can

bring economic profits to their rightful owners, are functional, and are

kept as secrets by their rightful owners.

The rightful owners referred to in this Article are owners of the commercial secrets and users who have the permission of the owners.

Article 220. When a unit commits the crimes stated in Article 213 through Article 219, it is to be sentenced to a fine; its directly responsible person in charge and other personnel of direct responsibility should be punished in accordance with the stipulations respectively stated in these Articles of this section.

Section 8. Crimes of Disrupting Market Order

Article 221. Whoever fabricates and spreads falsified information to impair other people's commercial reputation and commodity reputation, and causes significant losses to others or if there are other serious circumstances, is to be sentenced to not more than two years of fixed-term imprisonment, criminal detention, and may in addition or exclusively be sentenced to a fine.

Article 222. Where, in violation of the state regulations, an advertisement owner, advertising agency, or advertisement carrier gives false publicity by taking the advantage of advertising a commodity or service, and when the circumstances are serious, he shall be sentenced to not more than two years of fixed-term imprisonment, criminal detention, and may in addition or exclusively be sentenced to a fine.

Article 223. Where bidders submit tenders in collusion and harm the interests of persons inviting tenders or other bidders, and when the circumstances are serious, they shall be sentenced to not more than three

years of fixed-term imprisonment, criminal detention, and may in addition

or exclusively be sentenced to a fine.

Where bidders and persons inviting tenders harm the legitimate interests of the state, collectives, and the public by colluding in the bidding, they are to be punished in accordance with the stipulations stated in the preceding paragraph.

Article 224. Whoever, for the purpose of illegal possession, uses one of the following means during signing or executing a contract to obtain property and goods of the opposite party by fraud, and when the amount of money is relatively large, is to be sentenced to not more than three years of fixed-term imprisonment, criminal detention, and may in addition or exclusively be sentenced to a fine; or be sentenced to not less than three years and not more than 10 years of fixed-term imprisonment and a fine, if the amount of money is huge or there are other serious circumstances; or be sentenced to more than 10 years of fixed-term imprisonment or life imprisonment and a fine or confiscation of property, if the amount of money is particularly huge or there are other particularly serious circumstances:

(1) sign a contract in the name of a made-up unit or under somebody else's name;

(2) use forged, altered, or invalid negotiable instruments or other false certificates of property rights as guaranties;

(3) fulfill small-amount contracts or partially fulfill the contract, instead of actually fulfilling the contract, to inveigle the opposite party into continuing to sign and fulfill the contract;

(4) go into hiding after receiving goods, payment, advance payment, or property as guaranty from the opposite party;

(5) defraud the opposite party's property through other means.

Article 225. Whoever, in violation of the state stipulations, has one of the following illegal business acts, which disrupts the market order and when the circumstances are serious, is to be sentenced to not more than five years of fixed-term imprisonment, criminal detention, and may in addition or exclusively be sentenced to a fine not less than 100 percent and not more than 500 percent of his illegal income and, where the circumstances are particularly serious, be sentenced to not less than five years of fixed-term imprisonment and a fine not less than 100 percent and

not more than 500 percent of his illegal income or the confiscation of his

property:

(1) engage in the monopoly business or monopolized commodities

stipulated in laws and administrative regulations, or other commodities whose purchase and sale are controlled, without permission;

(2) purchase and sell import-export licenses, certificates of origin, and operation permits or approved documents stipulated by other laws and administrative regulations;

(3) conduct other illegal business activities that seriously disrupt the market order.

Article 226. Whoever, by violence or coercion, forces others to purchase or sell commodities or provide or accept services is to be sentenced to not more than three years of fixed-term imprisonment, criminal detention, and may in addition or exclusively be sentenced to a fine, if the circumstances are serious.

Article 227. Whoever forges or profiteers from forged train and ship tickets, stamps, or other valuable coupons, which involve a relatively large amount of money, is to be sentenced to not more than two years of fixed-term imprisonment, criminal detention or control, and may in addition or exclusively be sentenced to a fine not less than 100 percent and not more than 500 percent of the amount of the coupons; or, if a huge amount is involved, to not less then two years and not more than seven years of fixed-term imprisonment and a fine not less then 100 percent and not more than 500 percent of the amount of the coupons.

Whoever profiteers from train and ship tickets, when the circumstances are serious, is to be sentenced to not more than three years of fixed-term

imprisonment, criminal detention or control, and may in addition or

exclusively be sentenced to a fine of not less than 100 percent and not

more than 500 percent of the amount of the coupons.

Article 228. Whoever, for the purpose of seeking personal gain, violates

the laws and regulations on land management by illegally transferring and

profiteering from land use rights and when the circumstances are serious,

is to be sentenced to not more than three years of fixed-term imprisonment,

criminal detention, or may in addition or exclusively be sentenced to a

fine of not less than five percent and not more than 20 percent of the

money gained from illegally transferring or profiteering from land use

rights or, when the circumstances are particularly serious, is to be

sentenced to not less than three years and not more than seven years of

fixed-term imprisonment and a fine of not less than five percent and not

more than 20 percent of the money gained from illegally transferring or

profiteering from land use rights.

Article 229. Where a person of intermediary organizations, who is in

charge of asset assessment and examination, certificate examination,

accounting, auditing, legal services, and other duties, intentionally

provides false certificates, and when the circumstances are serious, he is

to be sentenced to not more than five years of fixed- term imprisonment or

criminal detention, and a fine.

Where a person stated in the preceding paragraph extorts money and goods

from others or illegally accepts money and goods from others to commit the

aforementioned crime, and when the circumstances are serious, he is to be

sentenced to not more than five years of fixed-term imprisonment or

criminal detention, and a fine.

Where a person stated in the first paragraph of this article is seriously

irresponsible and causes serious consequences by issuing certificates

greatly inconsistent with the facts, he is to be sentenced to not more than

three years of fixed-term imprisonment or criminal detention, and may in

addition or exclusively be sentenced to a fine.

Article 230. Whoever violates the rules of the law on import-export

commodity inspection by avoiding commodity inspection and, without

authorization, selling and using imported goods or exporting exported goods

without having them gone through inspection by commodity inspection

authorities as required, and when the circumstances are serious, is to be

sentenced to not more than three years of fixed-term imprisonment or

criminal detention, and may in addition or exclusively be sentenced to a

fine.

Article 231. Where a unit commits the crimes stated in Article 221

through Article 230 of this section, it should be sentenced to a fine and

its directly responsible person in charge and other directly responsible

personnel be punished according to the stipulations in these articles.



Chapter IV  Crimes of Infringing Upon the Rights of the Person and the Democratic Rights of Citizens

Article 232. Whoever intentionally kills another is to be sentenced to

death, life imprisonment or not less than 10 years of fixed-term

imprisonment; when the circumstances are relatively minor, he is to be

sentenced to not less than three years and not more than 10 years of

fixed-term imprisonment.

Article 233. Whoever negligently causes the death of another is to be

sentenced to not less than three years and not more than seven years of

fixed-term imprisonment; when the circumstances are relatively minor, he is

to be sentenced to not more than three years of fixed-term imprisonment.

Where this Law has other stipulations, matters are to be handled in

accordance with such stipulations.

Article 234. Whoever intentionally injures the person of another is to be

sentenced to not more than three years of fixed-term imprisonment, criminal

detention, or control.

Whoever commits the crime in the preceding paragraph and causes a person's

serious injury is to be sentenced to not less than three years and not more

than 10 years of fixed-term imprisonment; if he causes a person's death or

causes a person's serious deformity by badly injuring him with particularly

ruthless means, he is to be sentenced to not less than 10 years of

fixed-term imprisonment, life imprisonment, or death. Where this Law has

other stipulations, matters are to be handled in accordance with such

stipulations.

Article 235. Whoever negligently injures another and causes him serious

injury is to be sentenced to not more than three years of fixed-term

imprisonment or criminal detention. Where this law has other stipulations,

matters are to be handled in accordance with such stipulations.

Article 236. Whoever, by violence, coercion or other means, rapes a woman

is to be sentenced to not less than three years and not more than 10 years

of fixed-term imprisonment.

Whoever has sexual relations with a girl under the age of 14 is to be

deemed to have committed rape and is to be given a heavier punishment.

Whoever rapes a woman or has sexual relations with a girl involving one of

the following circumstances is to be sentenced to not less than 10 years of

fixed-term imprisonment, life imprisonment, or death:

(1) rape a woman or have sexual relations with a girl and when the

circumstances are odious;

(2) rape several women or have sexual relations with several girls;

(3) rape a woman in a public place and in the public;

(4) rape a woman in turn with another or more persons;

(5) cause the victim serious injury, death, or other serious

consequences.

Article 237. Whoever, by violence, coercion or other means, forces,

molests, or humiliates a woman is to be sentenced to not more than five

years of fixed-term imprisonment or criminal detention.

Whoever assembles a crowd to commit the crimes described in the preceding

paragraph, or commits such crimes in the public is to be sentenced to not

less than five years of fixed-term imprisonment.

Whoever molests a child is to be given a heavier punishment according to

the stipulations in the two preceding paragraphs.

Article 238. Whoever unlawfully detains another or deprives him of his

freedom of the person by any other means is to be sentenced to not more

than three years of fixed- term imprisonment, criminal detention, control,

or deprivation of political rights. In circumstances where beating or

humiliation are involved, a heavier punishment is to be given.

Whoever commits one of the crimes in the preceding paragraph and causes a

person's serious injury is to be sentenced to not less than three years and

not more than 10 years of fixed-term imprisonment; when he causes a

person's death, he is to be sentenced to not less than 10 years of

fixed-term imprisonment; when he causes a person disability or death by

violent means, he is to be punished in according with the stipulations in

Article 234 and Article 232 of this law.

Whoever unlawfully detains or takes somebody into custody for the purpose

of demanding the payment of a debt is to be given a punishment in

accordance with the stipulations stated in the two preceding paragraphs.

Where an employee of a state organ abuses his authority to commit any of

the three aforementioned crimes, he is to receive a heavier punishment in

accordance with the stipulations stated in the three preceding paragraphs.

Article 239. Those kidnapping others with the purpose of blackmailing or

kidnapping others as hostages are to be sentenced to 10 years or more in

prison or to be given life sentences, in addition to fines or confiscation

of their property. Kidnappers causing the death of their hostages or

killing their hostages are to be sentenced to death and their property

confiscated.

Those stealing or robbing infants or babies for the purpose of blackmailing

are to be punished according to stipulations in the above paragraph.

Article 240. Those abducting and trafficking women or children are to be

sentenced to 5 to 10 years in prison plus fine. Those falling into one or

more of the following cases are to be sentenced to 10 years of more in

prison or to be given life sentences, in addition to fines or confiscation

of property. Those committing especially serious crimes are to be sentenced

to death in addition to confiscation of property.

(1) Primary elements of rings engaging in abducting and trafficking

women or children;

(2) those abducting and trafficking more than three women and/or

children;

(3) those raping abducted women;

(4) those seducing, tricking, or forcing abducted women into

prostitution, or those selling abducted women to others who in turn

force them into prostitution;

(5) those kidnapping women or children using force, coercion, or

narcotics, for the purpose of selling them;

(6) those stealing or robbing infants or babies for the purpose of

selling them;

(7) those causing abducted women or children, or their family members,

to serious injuries or death, or causing other grave consequences;

(8) those selling abducted women or children to outside the country.

Abducting and trafficking women or children refers to abducting,

kidnapping, buying, selling, transporting, or transshipping women or

children.

Article 241. Those buying abducted women or children are to be sentenced

to three years or fewer in prison, or put under criminal detention or

surveillance.

Those buying abducted women and forcing them to have sex with them are to

be convicted and punished according to stipulations of article 236.

Those buying abducted women or children and illegally depriving them of or

restricting their physical freedom, or injuring or insulting them, are to

be convicted and punished according to relevant stipulations of this law.

Those buying abducted women or children and committing crimes stipulated in

paragraphs two and three of this article are to be punished for committing

more than one crime.

Those buying and selling abducted women or children are to be convicted and

punished according to article 240 of this law.

Those buying abducted women or children but not obstructing bought women

from returning to their original residence in accordance with their wishes,

or not abusing bought children and not obstructing efforts to rescue them,

may not be investigated for their criminal liability.

Article 242. Those using force or coercion to obstruct workers of state

organs from rescuing bought women or children are to be convicted and

punished according to article 277 of this law.

Primary elements who lead other people to obstruct workers of state organs

from rescuing bought women or children are to be sentenced to five years or

fewer in prison or put under criminal detention. Other elements who use

force or coercion are to be punished according to paragraph one of this

article.

Article 243. Those fabricating stories to frame others or in an attempt

to subject others to criminal investigation, if the case is serious, are to

be sentenced to three years or fewer in prison, or put under criminal

detention or surveillance. Those causing serious consequences are to be

sentenced to three to 10 years in prison.

Workers of state organs committing crimes stipulated in the above paragraph

are to be severely punished.

Stipulations in the above two paragraphs do not apply to those who do not

deliberately frame others but accuse others by mistake, or who report

others' crimes not conforming to the facts.

Article 244. Persons of employing units who are directly responsible for

forcing workers to labor by restricting their physical freedom in violation

of labor management laws and regulations are to be sentenced to three years

or fewer in prison or put under criminal detention, in addition to fine, or

are to be fined.

Article 245. Those illegally physically searching others or illegally

searching others' residences, or those illegally intruding into others'

residences, are to be sentenced to three years or fewer in prison, or put

under criminal detention.

Judicial workers committing crimes stipulated in the above paragraph by abusing their authority are to be severely punished.

Article 246. Those openly insulting others using force or other methods or those fabricating stories to slander others, if the case is serious, are to be sentenced to three years or fewer in prison, put under criminal detention or surveillance, or deprived of their political rights.

Those committing crimes mentioned above are to be investigated only if they are sued, with the exception of cases that seriously undermine social order or the state's interests.

Article 247. Judicial workers who extort a confession from criminal suspects or defendants by torture, or who use force to extract testimony from witnesses, are to be sentenced to three years or fewer in prison or put under criminal detention. Those causing injuries to others, physical disablement, or death, are to be convicted and severely punished according to articles 234 and 232 of this law.

Article 248. Supervisory and management personnel of prisons, detention centers, and other guard houses who beat or physically abuse their inmates, if the case is serious, are to be sentenced to three years or fewer in prison or put under criminal detention. If the case is especially serious, they are to be sentenced to three to 10 years in prison.

Those causing injuries to injuries, physical disablement, or death, are to be convicted and severely punished according to article 234 and 232 of this law.

Supervisory and management personnel who order inmates to beat or physically abuse other inmates are to be punished according to stipulations in the above paragraph.

Article 249. Those provoking ethnic hatred or discrimination, if the case is serious, are to be sentenced to three years or fewer in prison, put under criminal detention or surveillance, or deprived of their political rights. If the case is especially serious, they are to be sentenced to three to 10 years in prison.

Article 250. Persons directly responsible for publishing materials that discriminate or insult minority nationalities, if the case is serious and results in grave consequences, are to be sentenced to three years or fewer in prison, or put under criminal detention or surveillance.

Article 251. Workers of state organs who illegally deprive citizens' right to religious beliefs or who encroach on minority nationalities' customs or habits, if the case is serious, are to be sentenced to two years or fewer in prison or put under criminal detention.

Article 252. Those infringing upon the citizens right of communication freedom by hiding, destroying, or illegally opening others' letters, if the

case is serious, are to be sentenced to one year or less in prison or put

under criminal detention.

Article 253. Postal workers who open, hide, or destroy mail or telegrams

without authorization are to be sentenced to two years or less in prison or

put under criminal detention.

Those committing crimes stipulated in the above paragraph and stealing

money or other articles are to be convicted and severely punished according

to article 264 of this law.

Article 254. Workers of state organs who abuse their authority by

retaliating against or framing accusers, petitioners, criticizers, or

informants, in the name of conducting official business, are to be

sentenced to two years or less in prison or put under criminal detention.

If the case is serious, they are to be sentenced to two to seven years in

prison.

Article 255. Leaders of companies, enterprises, institutions, offices, or

other organizations who persecute and retaliate against accountants or

statisticians who perform their duty according to law and boycott acts that

violate the accounting and statistics law, if the case is serious, are to

be sentenced to three years or fewer in prison or put under criminal

detention.

Article 256. In electing deputies to the people's congresses at all

levels or leaders of state organs, those who undermine the elections or

obstruct voters and deputies from freely exercising their right to vote or

be elected by using force, coercion, deception, bribe; by falsifying

election documents; by making a false report on the numbers of ballots; or

by using other means, if the case is serious, are to be sentenced to three years or fewer in prison, put under criminal detention, or deprived of their political rights.

Article 257. Those using force to interfere in others' freedom of marriage are to be sentenced to two years or fewer in prison or put under criminal detention.

Those committing crimes stipulated in the above paragraph and causing others to die are to be sentenced to two to seven years in prison.

Those committing crimes stipulated in the first paragraph of this article are to be investigated only if they are sued.

Article 258. Those who have a spouse and get married again, or who marry someone whom they know has a spouse, are to be sentenced to two years or fewer in prison or put under criminal detention.

Article 259. Those who live together with or marry someone whom they know is the spouse of an active duty service member are to be sentenced to three years or fewer in prison or put under criminal detention.

Those who use their authority or subordinate relationship to seduce the wives of active duty servicemen for illicit sexual relations by resorting to coercion are to be convicted and punished according to article 236 of this law.

Article 260. Those mistreating their family members, if the case is serious, are to be sentenced to two years or less in prison, or put under criminal detention or surveillance.

Those committing crimes stipulated in the above paragraph and causing the victims to severe injuries or death are to be sentenced to two to seven years in prison.

Those committing crime stipulated in the first paragraph of this article are to be investigated only if they are sued.

Article 261. Those who have the obligation but refuse to support those who are aged, young, sick, or do not have the ability to live independently, if the case is serious, are to be sentenced to five years or fewer in prison or put under criminal detention or surveillance.

Article 262. Those abducting minors under 14 years of age from their family or guardians are to be sentenced to five years or less in prison or put under criminal detention.

Chapter V The Crime of Encroaching on Property

Chapter VI Crimes of Disrupting the Order of Social Administration

Chapter VII Crimes of Endangering the Interests of National Defense

Chapter VIII Graft and Bribery

Chapter IX Crimes of Dereliction of Duty

Chapter X Crimes of Violation of Duty by Military Personnel

Supplementary Articles

Appendix I

Appendix II



Chapter V The Crime of Encroaching on Property

Article 263. Those robbing public or private property using force, coercion, or other methods are to be sentenced to three to 10 years in prison in addition to fine. Those falling in one or more of the following cases are to be sentenced to 10 years or more in prison, given life sentences, or sentenced to death, in addition to fines or confiscation of property:

(1) those intruding into others' houses to rob;

(2) those committing robbery on public transportation vehicles;

(3) those robbing banks or other financial institutions;

(4) those committing several robberies or robbing large amounts of money or other properties;

(5) those causing serious injuries to or death while robbing;

(6) those committing robbery posing as servicemen or policemen;

(7) those committing robbery using guns;

(8) those robbing materials for military use, or materials for fighting disasters or relieving disaster victims.

Article 264. Those who steal relatively large amounts of public or private property and money or have committed several thefts are to be sentenced to three years or fewer in prison or put under criminal detention or surveillance, in addition to fines; or are to be fined. Those stealing large amounts of property and money or involving in other serious cases are to be sentenced to three to 10 years in prison, in addition to fines. Those stealing extraordinarily large amounts of property and money or involving in especially serious cases are to be sentenced to 10 years or more in prison or given life sentences, in addition to fines or confiscation of property. Those falling in one or more of the following cases are to be given life sentence or sentenced to death, in addition to confiscation of property:

(1) Those stealing extraordinarily large amounts of money and property from financial institutions;

(2) those committing serious thefts of precious cultural relics.

Article 265. Those stealing others' communication lines or reproducing others' telecommunication codes for the purpose of making profits, or those using telecommunication equipment or facilities knowing that they are stolen or reproduced are to be convicted and punished according to article 264 of this law.

Article 266. Those defrauding relatively large amounts of public or private money and property are to be sentenced to three years or fewer in prison or put under criminal detention or surveillance, in addition to fines; or are to be fined. Those defrauding large amounts of money and property or having involvement in other serious cases are to be sentenced to three to 10 years in prison, in addition to fines. Those defrauding extraordinarily large amounts of money and property or involving in especially serious cases are to be sentenced to 10 years or more in prisonor given life sentences, in addition to fines or confiscation of property.

If cases are governed by other stipulations of this law, those stipulationsshall apply.

Article 267. Whoever seizes public and private property, and the amountinvolved is quite large, is to be sentenced to not more than three years offixed-term imprisonment, criminal detention, or control; and may also besentenced to a fine, additionally or exclusively. When the amount involvedis huge and the other circumstances are serious, the sentence is to be notless than three years but not more than 10 years of fixed-term imprisonmentin addition to a fine. When the amount involved is particularly huge andthe other circumstances are particularly serious, the sentence is to be notless than 10 years of fixed-term imprisonment, or life imprisonment, inaddition to a fine or confiscation of property.

Whoever commits the crime with a lethal weapon is to be convicted andpunished according to the regulations in Article 263 of this law.

Article 268. In cases where a crowd is assembled to seize public ofprivate property, and the amount involved is quite large and the othercircumstances are serious, ringleaders and other active participants are tobe sentenced to not more than three years of fixed-term imprisonment,criminal detention or control, in addition to a fine; and the sentence isto be not less than three years and not more than 10 years, in addition toa fine, when the amount involved is huge and the other circumstances areparticularly serious.

Article 269. Whoever commits the crimes of theft, fraud, or forcible

seizure, and uses violence, or threats to use violence, at the scene in

order to conceal booty, resist arrest or destroy criminal evidence, is to

be convicted and punished in accordance with Article 263 of this Law.

Article 270. Whoever illegally takes over another person's property in

the latter's custody, and the amount involved is relatively large, and

refuses to return it, is to be sentenced to not more than two years of

fixed-term imprisonment, criminal detention, or a fine; when the amount

involved is huge and the other circumstances are serious, the sentence is

to be not less than two years but not more than five years of fixed-term

imprisonment, in addition to a fine.

Whoever illegally takes over someone's property which the latter forgets to

pick up, or the property someone had buried, and the amount involved is

relatively large, and refuses to return it, is to be punished according to

the preceding paragraph.

The crimes in this article will not be prosecuted unless a complaint is filed.

Article 271. In cases where a person of a company, enterprise, or any

unit, takes over the unit's property by taking advantage of his office, and

the amount involved in quite large, he is to be sentenced to not more than

five years of fixed-term imprisonment, or criminal detention; when the

amount involved is huge, the sentence is to be not less than five years,

and may be in addition to confiscation of property.

When personnel engage in public service in state-owned corporations,

enterprises, or other state-owned units; or when personnel of these

corporations, enterprises and units assigned to engage in public service in

nonstate-owned corporations, enterprises, or other units themselves as

stated in the preceding paragraph, they are to be convicted and punished

according to regulations in Articles 382 and 383 of this law.

Article 272. When personnel of companies, enterprises, and other units,

who take advantage of their offices to misappropriate their units' funds

for their own use or for lending to others, and the amounts involved are

relatively large and have not been returned for a period of over three

months; or, when the period is shorter than three months but the amounts

involved are quite large and the money is used for unlawful profit-making

activities, they are to be sentenced to not more than three years of

fixed-term imprisonment or criminal detention; those who misappropriate

huge amounts of their units' funds, or those whose misappropriations are

large and who refuse to return them are to be sentenced to not less than

three years but not more than 10 years of fixed-term imprisonment.

Personnel engaged in public service in state-owned corporations,

enterprises and other state-owned units, and personnel state-owned

corporations, enterprises and other state-owned units assigned to engage in

public service at nonstate-owned corporations, enterprises and other units

as stated in the preceding paragraph are to be convicted and punished

according to the regulations in Article 384 of this Law.

Article 273. Those directly responsible for misappropriating state fundsand materials allocated for disaster relief, emergencies, flood control,allowances for disabled servicemen and the families of revolutionarymartyrs and servicemen, aid-the-poor programs, resettlement, and socialrelief, when the circumstances are serious and have caused major damage tothe interests of the state and the people, are to be sentenced to not morethan three years of fixed-termed imprisonment or criminal detention; whenthe circumstances are particularly serious, the sentence is to be not lessthan three years but not more than seven years of fixed-term imprisonment.

Article 274. Whoever extorts public or private property by blackmail, andthe amount involved is quite large, is to be sentenced to not more thanthree years of fixed-termed imprisonment, criminal detention, or control;when the amount involved is huge and the other circumstances are serious,the sentence is to be not less than three years but not more than 10 yearsof fixed-term imprisonment.

Article 275. Whoever intentionally destroys public or private propertyand the amount involved is quite large and the other circumstances areserious is to be sentenced to not more than three years of fixed-termimprisonment, criminal detention, or a sentence of a fine; when the amountinvolved is huge and the other circumstances are particularly serious, thesentence is to be not less than three years but not more than seven yearsof fixed-term imprisonment.

Article 276. Whoever destroys machinery or equipment, cruelly injures orslaughters draft animals, or uses other means to sabotage production oroperation, with the purpose of giving vent to spite, seeking revenge, orfor other personal motives, is to be sentenced to not more than three yearsof fixed-term imprisonment, criminal detention, or control; when thecircumstance is serious, the sentence is to be not less than three years but not more than seven years of fixed-term imprisonment.



Chapter VI Crimes of Disrupting the Order of Social Administration

Section 1. Crimes of Disrupting Public Order

Article 277. Whoever uses violence or threat to obstruct state personnel

from discharging their duties is to be sentenced to not more than three

years of fixed-term imprisonment, criminal detention, or control; or a

sentence of a fine.

Whoever uses violence or threats to obstruct National People's Congress

deputies, or local people's congress deputies, from discharging their

lawful deputy duties is to be punished according to the preceding

paragraph.

Whoever, in the event of a natural disaster or an emergency, uses violence

or threats to obstruct Red Cross personnel from discharging their lawful

responsibilities is to be punished according to the first paragraph.

Whoever intentionally obstructs the state's security or public security

organs from carrying out their security assignments, and has caused serious

consequences even though no violence or threat is used is to be punished

according to the first paragraph.

Article 278. Whoever instigates the masses to use violence to resist the

enforcement of state laws and administrative regulations is to be sentenced

to not more than three years of fixed-term imprisonment, criminal

detention, control, or deprivation of political rights; when serious

consequences have been caused, the sentence is to be not less than three

years but not more than seven years of fixed-term imprisonment.

Article 279. Whoever poses as state organ personnel to cheat and bluff is

to be sentenced to not more than three years of fixed-term imprisonment,

criminal detention, control, or deprivation of political rights; when the

circumstances are serious, the sentence is to be not less than three years

but not more than 10 years of fixed-term imprisonment.

Whoever poses as a people's police to cheat and bluff is to be heavily

punished in accordance with the preceding paragraph.

Article 280. Whoever forges, alters, trades, steals, forcibly seizes or

destroys officials documents, certificates, or seals of state organs is to

be sentenced to not more than three years of fixed-term imprisonment; when

the circumstances are serious, the sentence is to be no less than three

years but not more than 10 years of fixed-term imprisonment.

Whoever forges seals of corporations, enterprises, institutions, or

people's organizations is to be sentenced to not more than three years of

fixed-term imprisonment, criminal detention, control, or deprivation of

political rights .

Whoever forges or alters citizens' identification cards is to be sentenced

to not more than three years of fixed- term imprisonment, criminal

detention, control, or deprivation of political rights; when the

circumstances are serious, the sentence is to be no less than three years

but not more than seven years of fixed-term imprisonment.

Article 281. Whoever illegally produces, purchases or sells standard

police uniforms, license plates of motor vehicles, or other special signs,

police tools, and the consequences are serious, is to be sentenced to not

more than three years of fixed-term imprisonment, criminal detention, or

control; and may also be sentenced to a fine, additionally or exclusively.

When a unit commits the crimes stated in the preceding paragraph, the unit

is to be fined, and its persons in charge and other who are directly

responsible are to be punished according to the regulations in the

preceding paragraph.

Article 282. Whoever illegally acquires state secrets by stealing,

secretly gathering, and purchasing is to be sentenced to not more than

three years of fixed-term imprisonment, criminal detention, control, or

deprivation of political rights; when the circumstances are serious, the

sentence is to be not less than three years but not more than seven years

of fixed-term imprisonment.

Whoever possesses documents, information, or other articles which are top

secret or classified information of the state, and refuses to state their

origins or use, is to be sentenced to not more than three years of

fixed-term imprisonment, criminal detention, or control.

Article 283. Whoever illegal produces and sells monitoring, photographing

or other special espionage equipment is to be sentenced to not more than

three years of fixed-term imprisonment, criminal detention, or control.

Article 284. Whoever illegally uses special monitoring or photographing

equipment and causes grave consequences is to be sentenced to not more than

two years of fixed-term imprisonment, criminal detention, or control.

Article 285. Whoever violates state regulations and intrudes into

computer systems with information concerning state affairs, construction of

defense facilities, and sophisticated science and technology is be

sentenced to not more than three years of fixed-term imprisonment or

criminal detention.

Article 286. Whoever violates states regulations and deletes, alters,

adds, and interferes in computer information systems, causing abnormal

operations of the systems and grave consequences, is to be sentenced to not

more than five years of fixed-term imprisonment or criminal detention; when

the consequences are particularly serious, the sentence is to be not less

than five years of fixed-term imprisonment.

Whoever violates state regulations and deletes, alters, or adds the data or

application programs installed in or processed and transmitted by the

computer systems, and causes grave consequences, is to be punished

according to the preceding paragraph.

Whoever deliberately creates and propagates computer virus and other

programs which sabotage the normal operation of the computer system and cause grave consequences is to be punished according to the first paragraph.

Article 287. Whoever uses a computer for financial fraud, theft, corruption, misappropriation of public funds, stealing state secrets, or other crimes is to be convicted and punished according to relevant regulations of this law.

Article 288. Whoever violates state regulations and installs or uses radio stations (transmitters), occupies frequencies without authorization, and refuses to stop using them after being ordered to do so, thus interfering in normal radio communications and causing serious consequences is to be sentenced to not more than three years of fixed- term imprisonment, criminal detention, or control; and may also be sentenced to a fine, additionally or exclusively.

When a unit commits the crimes stated in the preceding paragraph, the unit is to be fined, and its persons in charge and others who are directly responsible are to be punished according to the preceding paragraph.

Article 289. Whoever causes a person's injury, disability or death as result of assembling a crowd for "beating, smashing and looting" is to be convicted and punished according to regulations in Articles 234 and 232 of this law. In cases where public of private property is destroyed or forcibly taken and carried away, ringleaders, in addition to the ordering of restitution of compensation, are to be convicted and punished according to Article 263 of this law.

Article 290. In cases where crowds are assembled to disturb public order with serious consequences; where the process of work, production, business, teaching, and scientific research are disrupted; and where serious losses have been caused, the ringleaders are to be sentenced to not less than three years but not more than seven years of fixed-term imprisonment; other active participants are to be sentenced to not more than three years of fixed-term imprisonment, criminal detention, control, or deprivation of political rights.

Assembling crowds to attack state organs, thus disrupting their operations and causing serious losses, the ringleaders are to be sentenced to not less than five years but not more than 10 years of fixed-term imprisonment; and other active participants are to be sentenced to not less than five year of fixed-term imprisonment, criminal detention, control, or deprivation of political rights.

Article 291. In cases where a crowd is assembled to disturb order at stations, wharves, civil aviation stations, market places, public parks, theaters, exhibitions, sports grounds or other public places, or a crowd is assembled to block traffic or undermine traffic order, or resist or obstruct state security administration personnel who are carrying out their functions according to law, when the circumstances are serious, ringleaders are to be sentenced to not more than five years of fixed-term imprisonment, criminal detention, or control.

Article 292. In cases where a crowd is assembled to have brawls,

ringleaders and other active participants are to be sentenced to not more

than three years of fixed-term imprisonment, criminal detention, or

control. When the cases are one of the following, ringleaders and other

active participants are to be sentenced to not less than three years but not more than 10 years of fixed-term imprisonment:

(1) crowds are assembled on many occasions to have brawls;

(2) the size of crowds assembled to have brawls is large, and bad social effects have been caused;

(3) crowds are assembled for brawls in public places or main thoroughfares, and serious social disorders have been caused; or

(4) crowds are assembled for brawls with tools.

Whoever assembles a crowd to have brawls, thus causing a person serious injuries or death, is to be convicted and punished according to Articles 234 and 232 of this Law.

Article 293. Whoever undermines public order with anyone of the following provocative and disturbing behaviors is to be sentenced to not more than five years of fixed-term imprisonment, criminal detention, or control:

(1) willfully attacking another person and the circumstances are bad;

(2) chasing, intercepting, or cursing another person, and the circumstances are bad;

(3) forcibly taking away, demanding, or willfully damaging or seizing public or private property; and the circumstances are serious;

(4) creating a disturbance in a public place, causing serious

disorder.

Article 294. Whoever organizes, leads, or actively participates in an

organization with characteristics of a criminal syndicate, which carries

out lawless and criminal activities in an organized manner through

violence, threat, or other means, with the aim of playing the tyrant in a

locality, committing all sorts of crimes, bullying and harming the masses,

and doing what has seriously undermined economic and social order is to be

sentenced to not less than three years but not more than 10 years of

fixed-term imprisonment. Other participants are to be sentenced to not more

than three years of fixed-term imprisonment, criminal detention, control,

or deprivation of political rights.

Personnel of overseas criminal syndicates who come to the PRC to recruit

members are to be sentenced to not less than three years but not more than

10 years of fixed-term imprisonment.

Whoever commits other crimes in addition to those in the preceding two

paragraph is to the punished according to regulations for punishing

multiple crimes.

State organ personnel who harbor an organization with characteristics of a

criminal syndicate, or who connives at the organization's lawless and

criminal activities is to be sentenced to not more than three years of

fixed-term imprisonment, criminal detention, or deprivation of political

rights; when the circumstances are serious, the sentence is to be not less

than three years but not more than 10 years of fixed-term imprisonment.

Article 295. Whoever teaches crime-committing methods is to be to be

sentenced to not more than five years of fixed-term imprisonment, criminal

detention, or control; when the consequences are serious, to not less than

five years of fixed-term imprisonment; when the consequences are

particularly serious, to life imprisonment or death penalty.

Article 296. Whoever holds an assembly, parade, demonstration without

application in accordance with the law or without authorization after

application, or does not carry it out in accordance with the beginning time

and ending time, place, and road as permitted by authorities concerned, and

refuses to obey an order to dismiss, thereby seriously sabotaging social

order, those personnel who are in charge and those who are directly

responsible are to be to be sentenced to not more than five years of

fixed-term imprisonment, criminal detention, control or deprived of

political rights.

Article 297. Whoever violates laws and regulations by bringing with them weapons, controlled knives and tools or explosive articles to participate in an assembly, parade, demonstration is to be to be sentenced to not more than three years of fixed-term imprisonment, criminal detention, control or deprived of political rights.

Article 298. Whoever disturbs, collides, or sabotages with other methods the legally-held assembly, parade, demonstration, thereby giving rise to chaotic public order is to be to be sentenced to not more than five years of fixed-term imprisonment, criminal detention, control or deprived of political rights.

Article 299. Whoever purposely insults the national flag, national emblem of the PRC in a public place with such methods as burning, destroying, scribbling, soiling, and trampling is to be to be sentenced to not more  than three years of fixed-term imprisonment, criminal detention, control or deprived of political rights.

Article 300. Whoever organizes and utilizes superstitious sects, secret societies, and evil religious organizations or sabotages the implementation of the state's laws and executive regulations by utilizing superstition is to be sentenced to not less than three years and not more than seven years of fixed-term imprisonment; when circumstances are particularly serious, to not less than seven years of fixed-term imprisonment.

Whoever organizes and utilizes superstitious sects, secret societies, and evil religious organizations or cheats others by utilizing superstition, thereby giving rise to the death of people is to be punished in accordance with the previous paragraph.

Whoever organizes and utilizes superstitious sects, secret societies, and

evil religious organizations or has illicit sexual relations with women,

defraud money and property by utilizing superstition is to be convicted and

punished in accordance with the regulations of articles 236, 266 of the

law.

Article 301. Whoever takes a lead in assembling a crowd to engage in

promiscuous activities or repeatedly participates in such activities is to

be sentenced to not more than five years of fixed-term imprisonment,

criminal detention, or control.

Whoever seduces minors to participate in mass promiscuous activities is to

be severely punished in accordance with the previous paragraph.

Article 302. Whoever steals, insults corpses is to be sentenced to not

more than three years of fixed-term imprisonment, criminal detention, or

control.

Article 303. Whoever, for the purpose of reaping profits, assembles a

crow to engage in gambling, opens a gambling house, or makes an occupation

of gambling is to be sentenced to not more than three years of fixed-term

imprisonment, criminal detention, or control, in addition to fine.

Article 304. Postal service personnel who are severely irresponsible,

purposely delay sending mails thereby giving rise to great loss of public

properties, interests of the state and people are to be sentenced to not

more than two years of fixed-term imprisonment or criminal detention.

Section 2. Crimes of Disrupting Justice

Article 305. During the course of criminal procedures, any witness,

expert witness, recorder, translator who purposely makes false testimony,

makes expert evaluation, records, translates with an intention to frame

others or conceal criminal evidence in the circumstances which have an

important bearing on a case is to be sentenced to not more than three years

of fixed-term imprisonment or criminal detention; when the circumstances

are severe, to not less than three years and not more than seven years of

fixed-term imprisonment.

Article 306. During the course of criminal procedure, any defender, law

agent destroys, falsifies evidence, assist parties concerned in destroying,

falsifying evidence, threatening, luring witnesses to contravene facts,

change their testimony or make false testimony is to be sentenced to not

more than three years of fixed-term imprisonment or criminal detention;

when the circumstances are severe, to not less than three years and not

more than seven years of fixed-term imprisonment.

If witnesses, testimonies, or other evidences provided, shown, used by a

defender, law agent are not true but are not falsified purposely, they do

not fall into the category of falsifying evidences.

Article 307. Whoever stops with violence, threat, bribe, and other

methods a witness to testify or instigates others to make false testimony

is to be sentenced to not more than three years of fixed-term imprisonment

or criminal detention; when the circumstances are severe, to not less than

three years but not more than seven years of fixed-term imprisonment.

Whoever assists the parties concerned in destroying or falsifying evidences

is to be sentenced to not more than three years of fixed-term imprisonment

or criminal detention if the circumstances are severe.

Any judicial personnel committing the crimes as stated in the previous two

paragraphs is to be severely punished.

Article 308. Whoever resorts to persecution and retaliation against a witness is to be sentenced to not more than three years of fixed-term imprisonment or criminal detention; when the circumstances are severe, to not less than three years and not more than seven years of fixed-term imprisonment.

Article 309. Whoever gathers a crowd to make disturbances, charges a court, or beats judicial personnel, severely disturbs the order of a court is to be sentenced to not more than three years of fixed-term imprisonment, criminal detention, control or to be fined.

Article 310. Whoever provides a person who he clearly knows to be a convict witha hiding place, financial and material support, assists him to escape, hides, or protects him by falsifying evidence is to be sentenced to not more than three years of fixed-term imprisonment, criminal detention, or control; when the circumstances are severe, to not less than three years but not more than ten years of fixed-term imprisonment.

Whoever commits a crime as stated in the previous paragraph and conspires in advance is to be punished as committing a joint crime.

Article 311. Whoever refuses to provide information, when the state's public security organs look into relevant situations and collect relevant evidence from him, about other people who he clearly knows have conducted criminal espionage activities is to be sentenced to not more than three years of fixed-term imprisonment, criminal detention, or control if the circumstances are severe.

Article 312. Whoever conceals, transfers, purchases, or acts as an agent

to sell something he clearly knows as booty which have been gained through

committing a crime is to be sentenced to not more than three years of

fixed-term imprisonment, criminal detention, or control and may in addition

or exclusively be sentenced to a fine.

Article 313. Whoever refuses to carry out a decision or order made by a

people's court while he is able to carry it out is to be sentenced to not

more than three years of fixed-term imprisonment, criminal detention, or be

fined if the circumstances are severe.

Article 314. Whoever hides, transfers, sells off, purposely destroys

property which is already sealed, seized, or frozen is to be sentenced to

not more than three years of fixed-term imprisonment, criminal detention,

or be fined if the circumstances are severe.

Article 315. Criminals who, in accordance with the law, are already under

detention and perform one of the following acts which sabotage supervision

order are to be sentenced to not more than three years of fixed-term

imprisonment if the circumstances are severe:

(1) beat supervising personnel;

(2) organize other people under detention to sabotage supervision

order;

(3) assemble a crowd to make trouble, thereby disturbing normal

supervision order;

(4) beat, carry out corporal punishment on or instigate other people

to beat, carry out corporal punishment on other people under

detention.

Article 316. Criminals, defendants, criminal suspects who are already

under detention in accordance with the law and who escape are to be

sentenced to not more than five years of fixed-term imprisonment or

criminal detention.

Whoever seizes by force criminals, defendants, criminal suspects who are

sent under escort is to be sentenced to not more than seven years of

fixed-term imprisonment; when the circumstances are severe, to not less

than seven years of fixed-term imprisonment.

Article 317. Whoever takes a lead in organizing an attempt to escape from

a prison or whoever takes an active part in the attempt is to be sentenced

to not less than five years of fixed-term imprisonment; others who

participate in the attempt to not more than five years of fixed-term

imprisonment or criminal detention.

Whoever takes a lead in staging a riot to escape from a prison or in

assembling a crowd to open a prison with tools or whoever takes an active

part in the attempt is to be sentenced to not less than ten years of

fixed-term imprisonment or life imprisonment; when the circumstances are

particularly severe, to death penalty; others who participate in the

attempt to not less than three years and not more than ten years of

fixed-term imprisonment.

Section 3. Crimes of Disrupting Administration of the Border

Article 318. Whoever organizes people to secretly cross the national boundary (border) shall be sentenced to not less than two years and not more than seven years of fixed- term imprisonment and a fine; or not less than seven years of fixed-term imprisonment or to life imprisonment, and may in addition be sentenced to a fine or confiscation of property for any of the following situations:

(1) ringleader who organizes people to secretly cross the national boundary (border);

(2) repeatedly organizing people to secretly cross the national boundary (border) or organizing a large number of people to secretly cross the national boundary (border);

(3) causing serious injuries and deaths to the people being organized;

(4) depriving or restricting personal freedom of the people being organized;

(5) resisting investigation by violent or threatening methods;

(6) obtaining huge amounts of illegal income;

(7) other exceptionally serious circumstances.

Whoever commits the crimes mentioned in the preceding paragraph, killing, harming, raping, and kidnapping and selling the people being organized, or

the crimes of killing and harming investigating personnel shall be punished

in accordance with the stipulations concerning combined punishment for more

than one crime.

Article 319. Whoever defrauds people, in the name of labor export and

economic and trade exchanges or for other reasons, of their exit documents such as passports and visas through fraud and deception for use in organizing people in the secret crossing of the national boundary (border) shall be sentenced to not more than three years of fixed-term imprisonment, and may in addition be sentenced to a fine; and when the circumstances are serious, not less than three years and not more than 10 years of fixed-term imprisonment, and may in addition be sentenced to a fine.

Institutions which commit the crimes mentioned in the preceding paragraph shall be sentenced to a fine, and principal personnel directly responsible for the crime and other personnel with direct responsibility shall be punished in accordance with the stipulations of the preceding paragraph.

Article 320. Whoever provides fake and altered exit and entry documents such as passports and visas, or sells exit and entry documents such as passports and visas, shall be sentenced to not more than five years of fixed-term imprisonment, and may in addition be sentenced to a fine; and when the circumstances are serious, not less than five years of fixed-term imprisonment, and may in addition be sentenced to a fine.

Article 321. Whoever transports people secretly across the national boundary (border) shall be sentenced to not more than five years of fixed-term imprisonment and criminal detention or control, and may in addition be sentenced to a fine; or not less than five years and not more than 10 years of fixed-term imprisonment and a fine for any of the following situations:

(1) repeatedly involving in transporting activities or transporting a

large number of people;

(2) using transportation means such as ships and vehicles that do not

meet essential safety conditions and that are sufficient to cause

serious consequences;

(3) otaining huge amount of illegal income;

(4) other exceptionally serious circumstances.

Whoever, in the course of transporting people secretly across the national

boundary (border), causes heavy injuries and deaths to the people being

transported or resists investigation by violent and threatening methods

shall be sentenced to not less than seven years of fixed-term imprisonment,

and may in addition be sentenced to a fine.

Whoever commits the crimes mentioned in the two preceding paragraphs by

killing, harming, raping, and kidnapping and selling the people being

transported; or the crimes of killing and harming investigating personnel

shall be punished in accordance with the stipulations concerning combined

punishment for more than one crime.

Article 322. Whoever violates the laws and regulations controlling secret

crossing of the national boundary (border), and when the circumstances are

serious, shall be sentenced to not more than one year of fixed-term

imprisonment and criminal detention or control.

Article 323. Whoever intentionally sabotages boundary tablets, boundary

markers or survey indicators of a permanent nature along the borders of the

country shall be sentenced to not more than three years of fixed-term

imprisonment or criminal detention.

Section 4. Crimes of Disrupting Administration of Cultural Relics

Article 324. Whoever intentionally destroys precious cultural relics

under state protection or designated cultural relics of state institutions

for protecting major cultural relics and provincial-level cultural relics

protection departments shall be sentenced to not more than three years in

fixed-term imprisonment or criminal detention, and may in addition or

exclusively be sentenced to a fine; or when the circumstances are serious,

not less than three years and not more than 10 years of fixed-term

imprisonment, and may in addition be sentenced to a fine.

Whoever intentionally destroys state-protected places of historical

interest or scenic beauty, and when the circumstances are serious, shall be

sentenced to not more than five years of fixed-term imprisonment or

criminal detention, and may in addition or exclusively be sentenced to a

fine.

Whoever, through negligence, destroys precious cultural relics under state

protection or designated cultural relics of state institutions for

protecting major cultural relics and provincial-level cultural relics

protection departments shall be sentenced to not more than three years in

fixed- term imprisonment or criminal detention.

Article 325. Whoever violates laws and regulations on cultural relics

protection by secretly selling or giving to foreigners his or her

collection of precious cultural relics, the export of which is banned by the state shall be sentenced to not more than five years of fixed-term imprisonment or criminal detention, and may in addition be sentenced to a fine.

Institutions which commit the crime mentioned in the preceding paragraph shall be sentenced to a fine, and principal personnel directly responsible for the crime and other personnel with direct responsibility shall be punished in accordance with the stipulations of the preceding paragraph.

Article 326. Whoever, for the purpose of reaping profits, resells cultural relics, the transaction of which is banned by the state and when the circumstances are serious, shall be sentenced to not more than five years of fixed-term imprisonment or criminal detention, and may in addition be sentenced to a fine, or when the circumstances are exceptionally serious, not less than five years and not more than 10 years of fixed-term imprisonment, and may in addition be sentenced to a fine.

Institutions which commit the crime mentioned in the preceding paragraph shall be sentenced to a fine, and principal personnel directly responsible for the crime and other personnel with direct responsibility shall be punished in accordance with the stipulations of the preceding paragraph.

Article 327. States-owned museums, libraries, and other units that violate the laws and regulations on protection of cultural relics, selling or giving without permission cultural relic objects under state protection to non-state- owned units or individuals are to be sentenced to a fine and persons in direct charge of the units and other persons directly involved in the case for responsibility are to be sentenced to not more than three years of fixed-term imprisonment or criminal detention.

Article 328. Whoever robs ancient cultural ruins and ancient tomb burial objects that have historical, artistic, and scientific value are to be sentenced to not less than three years and not more than ten years of fixed-term imprisonment and are to be sentenced to a fine; when the circumstances are relatively light in nature, the sentence is to be not more than three years of fixed-term imprisonment, criminal detention or surveillance and the offender is also to be sentenced to a fine; whoever has one of the following cases is to be sentenced to not less than ten years of fixed-term imprisonment, life imprisonment or death penalty and are in addition to be sentenced to a fine or confiscation of property.

(1) Robbing ancient cultural ruins and ancient tomb burial objects slated as selected national cultural relic protection units and province-level cultural relic protection units;

(2) ringleaders of the gangs engaged in robbing ancient cultural ruins and ancient tomb burial objects;

(3) whoever has robbed ancient cultural ruins and ancient tomb burial objects many times; and

(4) whoever robs ancient cultural ruins and ancient tomb burial objects and whoever steals precious cultural relics or causes great damage on precious cultural relics.

Whoever robs ancient human fossils and ancient vertebrate fossils that have scientific value is to be punished according to the provisions of the preceding article.

Article 329. Whoever seizes and steals state-owned records is to be

sentenced to not more than five years of fixed-term imprisonment or

criminal detention.

Whoever violates the provisions of the Archives Law, selling and

transferring state-owned records without authorization and when the

circumstances are serious is to be sentenced to not more than three years

of fixed-term imprisonment or criminal detention.

Whoever commits the preceding two acts and at the same time, they form the

other crimes specified in this law is to be convicted and punished

according to the provisions that provide relatively severe punishment.

Section 5. Crimes of Endangering Public Health

Article 330. Whoever violates the provisions of the Law on Prevention and

Cure of Contagious Diseases and has one of the following cases, causing the

spread of A-category contagious diseases or causing a serious danger of the

spread of contagious diseases is to be sentenced to not more than three

years of fixed-term imprisonment or criminal detention; when the

consequences are particularly serious, the sentence is to be not less than

three years and not more than seven years of fixed-term imprisonment.

(1) The drinking water supplied by water supply units is not up to the

hygienic standards set by the state;

(2) refusing to give sterilization treatment to sewage, pollutants,

and excrement and urine contaminated by pathogens of contagious

diseases according to the hygienic requirements set by the sanitation

and epidemic control organs;

(3) allowing or conniving at contagious disease suffers, contagious

disease pathogen carriers, and suspected contagious disease sufferers

to take up jobs susceptible to spreading contagious diseases that are

prohibited to be taken by such persons by the provisions of the public

health administrative departments of the State Council; and

(4) refusing to implement the prevention and control measures set by

the sanitation and epidemic control organs in accordance with the Law

on Prevention and Cure of Contagious Diseases.

Any unit that commits the preceding crimes is to be sentenced to a fine and

the person in direct charge of the unit and other persons directly involved

in the case for responsibility are to be punished according to the

provisions of the preceding article.

The scope of A-category contagious diseases is determined in accordance

with the "The Law of the People's Republic of China on Prevention and Cure

of Contagious Diseases" and the relevant provisions of the State Council.

Article 331. Personnel engaged in the testing, storage, carriage, and

transporting of contagious diseases' bacterial spawns and viruses violate

the relevant provisions of the public health administrative departments of

the State Council, causing the spread of contagious diseases' bacterial

spawns and viruses and resulting in serious consequences are to be

sentenced to not more than three years of fixed-term imprisonment or

criminal detention; when the consequences are particularly serious, the

sentence is to be not less than three years and not more than seven years

of fixed-term imprisonment.

Article 332. Whoever violates national border health and quarantine

regulations, causing the spread of quarantined contagious diseases or a

serious danger of spreading them, is to be sentenced to not more than three

years of fixed-term imprisonment or criminal detention, and may in addition

or exclusively be sentenced to a fine.

A unit which violates the crime of the preceding paragraph shall be

sentenced to a fine, and principal personnel directly responsible to the

unit and other personnel with direct responsibility shall be penalized in

accordance with the stipulations of the preceding paragraph.

Article 333. Whoever sells blood illegally by involving others shall be

sentenced to not more than five years of fixed-term imprisonment and a

fine. Whoever, by violent and threatening methods, forces others to sell

blood shall be sentenced to not less than five years and not more than 10

years of fixed-term imprisonment and a fine.

Whoever causes harm to others through the act mentioned in the preceding

paragraph shall be convicted and fined in accordance to stipulations of

Article 234 of this law.

Article 334. Whoever illegally collects and supplies or produces and

supplies blood products that do not meet state- stipulated standards, and

enough to endanger human health, shall be sentenced to not more than five

years of fixed-term imprisonment or criminal detentionand a fine. Whoever

causes serious harm to human health shall be sentenced to not less than

five years and not more than 10 years of fixed-term imprisonment and a

fine; and for whoever causes exceptionally serious consequences, a sentence

of not less than 10 years of fixed-term imprisonment or life imprisonment,

and may in addition be sentenced to a fine or confiscation of property.

Departments that have approval from principal state departments to collect

and supply blood or produce and supply blood products but do not conduct

inspection and tests in accordance with stipulations or violate other

operations specifications, causing harm to human health, the unit concerned

shall be fined, and principal personnel directly responsible to the unit

and other personnel with direct responsibility shall be sentenced to not

more than five years of fixed-term imprisonment or criminal detention.

Article 335. Medical personnel who fail seriously to carry out their

responsibility, causing the death of patients or serious harm to the health

of patients shall be sentenced to not more than three years of fixed-term

imprisonment or criminal detention.

Article 336. Whoever illegally engages in medical practice without

obtaining the qualification for medical practice, and when the

circumstances are serious, shall be sentenced to not more than three years

of fixed-term imprisonment, criminal detention, or control, and may in

addition or exclusively be sentenced to a fine. Whoever causes serious harm

to the health of patients shall be sentenced to not less than three years

and not more than 10 years of fixed-term imprisonment, and a fine. Whoever

causes the death of patients shall be sentenced to not less than 10 years

of fixed-term imprisonment and a fine.

Whoever conducts unauthorized birth control reversal surgery, fake birth

control surgery, and pregnancy termination surgery, or takes out birth

control devices from the womb, and when the circumstances are serious,

shall be sentenced to not more than three years of fixed-term imprisonment,

criminal detention, or control, and may in addition or exclusively be

sentenced to a fine. Whoever causes serious harm to the health of patients

shall be sentenced to not less than three years and not more than 10 years

of fixed-term imprisonment and a fine. Whoever causes the death of patients

shall be sentenced to not less than 10 years of fixed-term imprisonment and

a fine.

Article 337. Whoever violates the stipulations of the Quarantine Law on

the Entry and Exit of Animals and Plants, causing major proliferation of

animal and plant diseases, shall be sentenced to not more than three years

of fixed- term imprisonment or criminal detention, and may in addition or

exclusively be sentenced to a fine.

Units that commit the crime of the preceding paragraph shall be sentenced

to a fine, and principal personnel directly responsible to the unit and

other personnel with direct responsibility shall be penalized in accordance

with the stipulations of the preceding paragraph.

Section 6. Crimes of Undermining Protection of Environmental Resources

Article 338. Whoever releases, dumps, or disposes of radioactive wastes,

wastes containing pathogen of contagious diseases, and toxic materials or

other dangerous wastes into land, water, and the atmosphere in violation of

state stipulations, causing major environment pollution accidents, heavy

losses to public and private property, or grave consequences of personal

deaths and injuries shall be sentenced to not more than three years of

fixed-term imprisonment or criminal detention, and may in addition or

exclusively be sentenced to a fine; and in exceptionally serious

consequences, not less than three years and not more than seven years of

fixed-term imprisonment, and a fine.

Article 339. Those who dump, store or process solid waste from abroad in

the country in violation of state regulations are to be sentenced to not

more than five years of fixed-term imprisonment or criminal detention, and

in addition be sentenced to a fine. Those whose acts cause serious

environmental pollution and major damages to public or private properties

or seriously endanger people's health are to be punished by sentence of not

less than five years and not more than 10 years of fixed-term imprisonment,

and in addition be sentenced to a fine. Those whose acts have especially

serious consequences are to be sentenced to more than 10 years of

fixed-term imprisonment, and in addition be sentenced to a fine.

Those who import solid waste as raw material without the approval of

concerned administrative department of the State Council and cause serious

environmental pollution, major damages to public or private properties and

or seriously endanger people's health are to be sentenced to not more than

five years of fixed-term imprisonment or criminal detention, and in

addition be sentenced to a fine.

Those whose acts are especially serious are to be sentenced to not less

than five years and not more than 10 years of fixed-term imprisonment, and

in addition be sentenced to a fine.

Those who import solid waste in the name of raw material which cannot be

used as material are to be punished in accordance with the provisions of

Article 155 of this Law.

Article 340. Those who violate laws and regulations to protect aquatic

products and catch aquatic products in forbidden areas or forbidden periods

or use tools and methods in violation of regulations in a serious nature

are to be sentenced to not more than three years of fixed-term imprisonment

or criminal detention or control, and may in addition be sentenced to a

fine.

Article 341. Those who illegally hunt and kill rare and endangered wild

animals which are under the state key production plan or illegally

purchase, transport or sell those rare and endangered wild animals and

their manufactured products are to be sentenced to not more than five years

of fixed-term imprisonment or criminal detention, and may in addition be

sentenced to a fine. In serious cases, those law offenders are to be

sentenced to not less than five years and not more than 10 years of

fixed-term imprisonment, and may in addition be sentenced to a fine. In

especially serious cases, those law offenders are to be sentenced to more

than 10 years of fixed-term imprisonment, and in addition be sentenced to a

fine and confiscation of their properties.

Those who violate hunting law and regulations and use tools and methods

which are forbidden to be used in no- hunting zones or periods and thus

damage the source of wild animals and if the situation is serious are to be

sentenced to not more than five years of fixed-term imprisonment or

criminal detention or control, and in addition be sentenced to a fine.

Article 342. Those who illegally occupy farmland for other uses in

violation of land administrative law and regulations in a relatively large

area and cause damage to large tracts of farmland are to be sentenced to

not more than five years of fixed-term imprisonment or criminal detention,

and in addition be sentenced to a fine or may be sentenced to a simple

fine.

Article 343. Those who violate the stipulations of the Mineral Resources

Law and start to engage in mining operation without first obtaining a

mining permit, those who wantonly enter state mining areas which are

important to the national economy or mining areas of other people, those

who wantonly excavate special minerals protected by the state and those who

continue mining operations and cause damage to mineral resources after

receiving a notice to stop such operation are to be sentenced to not more

than three years of fixed-term imprisonment or criminal detention or

control, and in addition be sentenced to a fine or may be sentenced to a

simple fine. Those whose operations have caused serious damages to natural

resources are to be sentenced to not less than three years and not more

than seven years of fixed-term imprisonment, and in addition be sentenced

to a fine.

Those who violate the stipulations of Mineral Resources Law and use

destructive mining methods to tap mineral resources and have caused serious

damages to mineral resources are to be sentenced to not more than five

years of fixed-term imprisonment or criminal detention, and in addition be

sentenced to a fine.

Article 344. Those who violate the stipulations of the Forestry Law and

engage in illegal logging and damage valuable trees are to be sentenced to

not more than three years of fixed-term imprisonment or criminal detention

or control, and in addition be sentenced to a fine. In serious cases, those law offenders are to be sentenced to not less than three years and not more than seven years of fixed-term imprisonment and, in addition, be sentenced to a fine.

Article 345. Those who have engaged in illegal logging of forest or other trees in relatively large quantity are to be sentenced to not more than three years of fixed-term imprisonment, criminal detention or control, and in addition be sentenced to a fine. They may be punished by a simple fine.

If the quantity is quite large, those law offenders are to be sentenced to not less than three years and not more than seven years of fixed-term imprisonment and, in addition, be sentenced to a fine. If the quantity is especially large, those law offenders are to be sentenced to more than seven years of fixed-term imprisonment and, in addition, be sentenced to a fine. Those who violate the stipulations of the Forestry Law and engage in wanton logging of forest or other trees in relatively large quantity are to be sentenced to less than three years fixed- term imprisonment, or criminal detention or control and, in addition, be sentenced to a fine. They may also be punished by a simple fine. If the quantity is especially large, the law offenders are to be sentenced to not less than three years and not more than seven years of fixed-term imprisonment and, in addition, be sentenced to a fine.

Those who, in order to make a profit, illegally purchase timber from illegal or wanton logging in a serious manner are to be sentenced to less than three years of fixed-term imprisonment or criminal detention or control and, in addition, be sentenced to a fine. They may also be punished by a simple fine. In especially serious cases, those law offenders are to be sentenced to not less than three years and not more than seven years of fixed-term imprisonment and, in addition, be sentenced to a fine.

Those who engage in illegal and wanton logging of forests or other trees inside state natural protection zones are to be punished in a severe manner.

Article 346. If a unit commits the crimes stipulated in Article 338 to 345, the unit will be sentenced to a fine, while the leading person with direct responsibility and other personnel directly responsible for such violations are to be punished in accordance with the stipulations of related articles.

Section 7. Crimes of Smuggling, Trafficking, Transporting and Manufacturing Drugs

Article 347. Those who commit the crimes of smuggling, trafficking, transporting and manufacturing drugs, regardless of the quantity of drugs, shall be investigated for their criminal responsibility and punished according to the Criminal Law.

Those who smuggle, traffic, transport or manufacture drugs with one of the following conditions are to be punished by 15 years of fixed-term imprisonment, life imprisonment or death sentence, and, in addition, confiscation of their properties:

(1) Smuggling, trafficking, transporting or manufacturing opium with a quantity of more than 1,000 grams [ke 0344], heroin or methylaniline [jia ji ben bing an 3946 1015 0058 0014 5143] with a quantity of more than 50 grams or other narcotics with a large quantify;

(2) The principal leaders of criminal groups engaged in smuggling, trafficking, transporting and manufacturing drugs;

(3) Those who use arms to cover up smuggling, trafficking, transporting and manufacturing drugs;

(4) Those who use violence to resist inspection, detention or arrest in serious situation; and

(5) Those who take part in organized international drug trafficking

activities.

Those who smuggle, traffic, transport or manufacture opium with a quantity

less than 1,000 grams but more than 200 grams, those who smuggle, traffic,

transport or manufacture heroin or methylaniline with a quantity less than

50 grams but more than 10 grams, and those who deal with other drugs in

large quantity are to be sentenced to more than seven years of fixed-term

imprisonment and, in addition, be sentenced to a fine.

Those who smuggle, traffic, transport or manufacture opium with a quantity

less than 200 grams, those who smuggle, traffic, transport or manufacture

heroin or methylaniline with a quantity less than 10 grams, or those who

deal with a small quantity of other drugs are to be sentenced to less than

three years of fixed-term imprisonment, detention or control, and, in

addition, be sentenced to a fine. In more serious cases, those law

offenders are to be sentenced to more than three years but less than seven

years of fixed-term imprisonment and, in addition, be sentenced to a fine.

Units which commit the crimes as stated in (2), (3) and (4) above are to be

penalized with a fine. Their leading personnel directly responsible for

those acts and other directly responsible personnel are to be punished in

accordance with the above sections of this article.

Those who utilize or urge youngsters to engage in smuggling, trafficking,

transporting or manufacturing drugs or selling drugs to youngsters are to

be punished in a heavier manner.

As to those who commit crimes repeatedly, the quantities of drugs involved

in smuggling, trafficking, transporting and manufacturing will be combined

in the judgment for sentencing.

Article 348. Those who illegally hold more than 1,000 grams of opium or

more than 50 grams of heroin or methylaniline or large quantities of other

drugs are to be sentenced to more than seven years of fixed-term

imprisonment or life imprisonment and, in addition, be sentenced to a fine.

Those who illegally hold more than 200 grams but less than 1,000 grams of

opium or hold more than 10 grams of heroin but less than 50 grams of

methylaniline or hold a large quantity of other drugs are to be sentenced

to less than three years of fixed-term imprisonment or detention or control

and, in addition, be sentenced to paying a fine. In serious cases, the law

offenders are to be sentenced to more than three years but less than seven

years of fixed-term imprisonment and, in addition, be sentenced to paying a

fine.

Article 349. Those who provide cover for criminals who have engaged in

smuggling, trafficking, transporting and manufacturing drugs and those who

hide, move or conceal drugs and properties of criminals are to be sentenced

to less than three years of fixed-term imprisonment, detaining or control.

In serious cases, they are to be sentenced to more than three years but

less than 10 years of fixed-term imprisonment.

Anti-drug smuggling personnel or other workers of state organs who shield

or harbor criminal elements who smuggle, sell, transport, or make drugs,

are to be severely punished according to stipulations of the above

paragraph.

Those who conspire with others in advance to commit crimes stipulated in

the above two paragraphs of this article are to be handled as accomplices

of smuggling, trafficking, transporting, or making drugs.

Article 350. Those violating the state's regulations to illegally

transport or hand carry into or out of the country acetic oxide, ethyl

ether, chloroform, or other raw materials or elixirs for making drugs; and

those violating the state's regulations to illegally sell or buy the

aforementioned materials within the country, are to be sentenced to three

years or fewer in prison or put under criminal detention or surveillance,

in addition to paying a fine. Those involved in large amounts of drugs are

to be sentenced to three to 10 years in prison, in addition to paying a

fine.

Those providing aforementioned materials to those whom they know are making

drugs are to be handled as accomplices to the making of drugs.

Units committing crimes stipulated in the above two paragraphs are to be

fined, and their persons directly in charge and other personnel directly

responsible for the case are to be punished according to stipulations of

the above two paragraphs.

Article 351. Illegal growing of opium poppy, marijuana, or other kinds of

plants from which drugs are extracted is to be forcibly eliminated. Those

falling in one or more of the following cases are to be sentenced to five

years or fewer in prison or put under criminal detention or surveillance,

in addition to fine:

(1) Those growing more than 500 but fewer than 3,000 opium poppy

plants, or those growing relatively large numbers of other kinds of

plants from which drugs are extracted;

(2) those who grow again after their cases have been settled by a

public security organ;

(3) those refusing and resisting elimination of their crops.

Those illegally growing more than 3,000 opium poppy plants or large numbers

of other kinds of plants from which drugs are extracted are to be sentenced

to five years or more in prison, in addition to paying a fine or having

their property confiscated.

Those illegally growing opium poppy plants or other kinds of plants from

which drugs are extracted but voluntarily wiping them out before reaping

them may be exempted from punishment.

Article 352. Those illegally selling, buying, transporting, hand

carrying, or those who are illegally in possession of non-sterilized seeds

or saplings of opium poppy or other kinds of plants from which drugs are

extracted, if the amounts are relatively large, are to be sentenced to

three years or fewer in prison or put under criminal detention or

surveillance, in addition to paying a fine; or are to be fined.

Article 353. Those who lure, instigate, or trick others into taking or

injecting drugs are to be sentenced to three years or fewer in prison or

put under criminal detention or surveillance, in addition to fine. If the

case is serious, they are to be sentenced to three to seven years in prison

in addition to paying a fine.

Those forcing others to take or inject drugs are to be sentenced to three

to 10 years in prison in addition to paying a fine.

Those luring, instigating, tricking, or forcing minors into taking or

injecting drugs are to be severely punished.

Article 354. Those harboring others who take or inject drugs are to be

sentenced to three years or fewer in prison or put under criminal detention

or surveillance, in addition to paying a fine.

Article 355. Personnel who produce, transport, manage, or use according

to law narcotics or drugs for mental sickness under the state's control and

who, in violation to the state's regulations, provide those who take or

inject drugs with addictive narcotics or drugs for mental sickness that are

under the state's control are to be sentenced to three years or fewer in

prison or put under criminal detention, in addition to fine. If the case is

serious, they are to be sentenced to three to seven years in prison in

addition to paying a fine. Those providing addictive narcotics or drugs for

mental sickness that are under the state's control to criminal elements

engaging in smuggling or trafficking drugs or, with the purpose of making

profits, to those taking or injecting drugs, are to be convicted and

punished according to article 347 of this law.

Units committing crime stipulated in the above paragraph are to be fined,

and their persons directly in charge and other personnel directly

responsible for the case are to be punished according to stipulations of

the above paragraph.

Article 356. Those who have been convicted of smuggling, trafficking,

transporting, or making drugs, or who are illegally in possession of drugs,

and who again commit the crime stipulated in this section, are to be

severely punished.

Article 357. Drugs as mentioned in this law refer to opium, heroin, ice,

morphine, marijuana, cocaine, and other addictive narcotics and drugs for

mental sickness that are under the state's control.

The amounts of drugs are to be calculated according to the verified amounts

of drugs smuggled, sold, transported, or made, or the amounts illegally in

possession, and are not to be calculated in terms of the pureness of the drugs.

Section 8. The Crime of Organizing, Forcing, Seducing, Harboring, or Introducing Prostitution

Article 358. Those organizing others for or forcing others into prostitution are to be sentenced to five to 10 years in prison in addition to having to pay a fine. Those falling in one or more of the following cases are to be sentenced to 10 years or more in prison or given a life sentence, in addition to a fine or confiscation of property:

(1) Those committing serious crimes of organizing others for prostitution;

(2) those forcing young girls under the age of 14 into prostitution;

(3) those forcing more than one person into prostitution and those repeatedly forcing others into prostitution;

(4) those forcing others who were raped by them into prostitution;

(5) those causing severe injuries, death, or other serious consequences to those who are forced into prostitution.

Those committing one or more of the above crimes, if the case is especially serious, are to be given a life sentence or sentenced to death, in addition to confiscation of property.

Those helping others organize people for prostitution are to be sentenced

to five years or fewer in prison in addition to a fine. If the case is

serious, they are to be sentenced to five to 10 years in prison in addition

to being fined.

Article 359. Those harboring prostitution or seducing or introducing

others into prostitution are to be sentenced to five years or fewer in

prison or put under criminal detention or surveillance, in addition to

paying a fine. If the case is serious, they are to be sentenced to five

years or more in prison in addition to a fine.

Those seducing young girls under 14 years of age into prostitution are to

be sentenced to five years or more in prison in addition to a fine.

Article 360. Those engaging in prostitution or visiting a whorehouse

knowing that they are suffering from syphilis, clap, or other serious

venereal diseases are to be sentenced to five years or fewer in prison or

put under criminal detention or surveillance, in addition to having to pay

a fine.

Those who visit young girl prostitutes under 14 years of age are to be

sentenced to five years or more in prison an addition to paying a fine.

Article 361. Personnel of hotels, restaurants, entertainment industry,

taxi companies, and other units who take advantage of their units' position

to organize, force, seduce, harbor, or introduce others to prostitution are

to be convicted and punished according to articles 358 and 359 of this law.

Main persons in charge of the aforementioned units who commit crimes

stipulated in the above paragraph are to be severely punished.

Article 362. Personnel of hotels, restaurants, entertainment industry,

taxi companies, or other units who inform law offenders and criminals while

public security personnel are checking prostitution and whorehouse visiting

activities, if the case is serious, are to be convicted and punished

according to article 310 of this law.

Section 9. The Crime of Producing, Selling, or Disseminating Obscene

Materials

Article 363. Those producing, reproducing, publishing, selling, or

disseminating obscene materials with the purpose of making profits are to

be sentenced to three years or fewer in prison or put under criminal

detention or surveillance, in addition to paying a fine. If the case is

serious, they are to be sentenced to three to 10 years in prison in

addition to having to pay a fine. If the case is especially serious, they

are to be sentenced to 10 years or more in prison or given life sentence,

in addition to a fine or confiscation of property.

Those providing others with international standard book numbers [ISBN] for

publishing obscene books or magazines are to be sentenced to three years or

fewer in prison or put under criminal detention or surveillance, in

addition to having to pay a fine; or are to be fined. Those providing

others with ISBNs knowing that they are going to use them for publishing

obscene books or magazines are to be punished according to the above

stipulations.

Article 364. Those disseminating obscene books, magazines, films, audio

or video products, pictures, or other kinds of obscene materials, if the

case is serious, are to be sentenced to two years or fewer in prison or put

under criminal detention or surveillance.

Those organizing the broadcasting or showing of obscene motion pictures,

video films, or other kinds of audio or video products are to be sentenced

to three years or fewer in prison or put under criminal detention or

surveillance, in addition to having to pay a fine. If the case if serious,

they are to be sentenced to three to 10 years in prison in addition to

paying a fine.

Those producing or reproducing and organizing the broadcasting or showing

of obscene motion pictures, video tapes, or other kinds of audio or video

products are to be severely punished according to stipulations in paragraph

two of this article.

Those broadcasting or showing obscene materials to minors under 18 years of

age are to be severely punished.

Article 365. Those organizing an obscene performance are to be sentenced

to three years or fewer in prison or put under criminal detention or

surveillance, in addition to paying a fine. If the case is serious, they

are to be sentenced to three to 10 years in prison in addition to having to

pay a fine.

Article 366. Units committing crimes stipulated in articles 363, 354, or

365 of this section are to be fined, and their main persons directly in

charge and other personnel directly responsible for the case are to be

punished according to stipulations of respective articles.

Article 367. Obscene materials mentioned in this law refer to erotic

books, magazines, motion pictures, video tapes, audio tapes, pictures, and

other obscene materials that graphically describe sexual intercourse or

explicitly publicize pornography.

Scientific products about physiological or medical knowledge are not

obscene materials.

Literary and artistic works of artistic value that contain erotic contents

are not regarded as obscene materials.

Chapter VII Crimes of Endangering the Interests of National Defense

Article 368. Those who use methods of violence or threat to obstruct

military personnel from carrying out their duties in accordance with the

law are to be sentenced to not more then three years of fixed-term

imprisonment, or criminal detention or control and may, in addition, be

sentenced to a fine.

Those who intentionally obstruct military actions of the armed forces and

cause serious consequences are to be sentenced to not more than five years

of fixed-term imprisonment or criminal detention.

Article 369. Those who sabotage weapons and equipment, military

facilities or military communications are to be sentenced to not more than

three years of fixed- term imprisonment or criminal detention or control.

Those who sabotage important weapons and equipment, military facilities or

military communications are to be sentenced to more than three years but

less than 10 years of fixed-term imprisonment. Those whose crimes are

especially serious are to be sentenced to more than 10 years of fixed-term

imprisonment, life imprisonment or death. During war times, the punishment

will be more severe.

Article 370. Those who knowingly supply unqualified weapons and equipment

and other military facilities to armed units are to be sentenced to not

more than five years fixed- term imprisonment or criminal detention. In

serious cases, those law offenders are to be sentenced to more than five

years but less than 10 years of fixed-term imprisonment. In especially

serious cases, those law offenders are to be sentenced to more than 10

years of fixed-term imprisonment, life imprisonment or death.

Those who commit the above-mentioned crimes and cause serious consequences

due to negligence are to be sentenced to not more than three years of

fixed-term imprisonment or criminal detention. Those who commit above-

mentioned crimes and cause especially serious consequences due to

negligence are to be sentenced to more than three years but less than seven

years of fixed-term imprisonment.

If a unit commits crimes noted in section one of this article, the unit

will be sentenced to a fine. Leading personnel of the unit having direct

responsibility and other personnel directly responsible for the crimes are

to be punished in accordance with section one of this article.

Article 371. The principal leaders of those who assemble a crowd to

charge military forbidden zones and seriously disrupt order in military

forbidden zones are to be sentenced to more than five years but less than

10 years of fixed-term imprisonment. Other active participants are to be

sentenced to not more than five years of fixed-term imprisonment, criminal

detention or control or deprivation of political rights.

The principal leaders of those who assemble a crowd to seriously disrupt

order in military administrative zones, hamper operation in the military

administrative zones and cause serious losses are to be sentenced to more

than three years but less than seven years of fixed-term imprisonment.

Other active participants are to be sentenced to not more than three years

of fixed-term imprisonment, criminal detention, control or deprivation of

political rights.

Article 372. Those who pose as military personnel and engage in cheating

and bluffing are to be sentenced to not more than three years of fixed-term

imprisonment, criminal detention, control or deprivation of political

rights. In serious cases, those law offenders are to be sentenced to more

than three years but less than 10 years of fixed-term imprisonment.

Article 373. Those who instigate military personnel to escape from the

unit to which they belong or knowingly employ those escaped military

personnel are to be sentenced to not more than three years of fixed-term

imprisonment, criminal detention or control if the situation is serious.

Article 374. Those who play favoritism and commit irregularities in

conscription work or receive and deliver unqualified enlisted men are to be

sentenced to not more than three years of fixed-term imprisonment or

criminal detention if the situation is serious. Those law offenders are to

be sentenced to more than three years but less then seven years fixed-term

imprisonment if the consequences are especially serious.

Article 375. Those who forge, alter, buy or sell, steal or rob documents,

certificates and seals of armed units are to be sentenced to not more than

three years of fixed-term imprisonment, criminal detention, control or

deprivation of political rights. If the situation is serious, those law

offenders are to be sentenced to more than three years but less than 10

years of fixed-term imprisonment.

Those who illegally produce, buy or sell uniform, vehicle licenses and

other military signs of armed forces are to be sentenced to not more three

years of fixed-term imprisonment, criminal detention or control if the

situation is serious, and, in addition, be sentenced to a fine.

Units which commit the crime of paragraph two of this article are to be

sentenced to a fine. The principal leading persons responsible for the

crime and other directly responsible personnel are to be punished in

accordance with paragraph two of this article.

Article 376. Reserve service personnel who refuse or evade conscription

or military training in times of war are to be sentenced to not more than

three years of fixed-term imprisonment or criminal detention if the

situation is serious.

Citizens who refuse or evade conscription in times of war are to be

sentenced to not more two years of fixed-term imprisonment if the situation

is serious.

Article 377. Those who intentionally provide false enemy information and

thus cause serious consequences are to be sentenced to more than three

years but less than 10 years of fixed-term imprisonment. Those whose acts

cause especially serious consequences are to be sentenced to more then 10

years of fixed-term imprisonment or life imprisonment.

Article 378. Those who create rumors and undermine the morale of the

armed forces are to be sentenced to not more three years of fixed-term

imprisonment, criminal detention or control. In serious cases, those law

offenders are to be sentenced to more than three years but less than 10

years of fixed-term imprisonment.

Article 379. Those who knowingly provide shelter, properties and things

for escaped military personnel in times of war are to be sentenced to not

more than three years of fixed-term imprisonment or criminal detention if

the situation is serious.

Article 380. Units which refuse or intentionally delay military orders

for supplies in times of war are to be sentenced to a fine. The principal

leading responsible personnel and other persons directly responsible for

the crimes are to be sentenced to not more than five years of fixed-term

imprisonment or criminal detention. In serious cases, those law offenders

are to be sentenced to more than five years of fixed-term imprisonment.

Article 381. Those who refuse military requisition in times of war are to

be sentenced to more than three years of fixed-term imprisonment or criminal detention if the situation is serious.

Chapter VIII  Graft and Bribery

Article 382. State personnel who take advantage of their office to misappropriate, steal, swindle or use other illegal means to acquire state properties constitute the crime of graft.

Those who are entrusted by state organs, state companies, state enterprises, state undertakings and mass organizations to administer and operate state properties but take advantage of their office to misappropriate, steal, swindle or use other illegal means to acquire state properties also constitute the crime of graft.

Those who collaborate with those personnel as listed in the aforementioned two paragraphs and join the crime are considered as committing a joint crime.

Article 383. Those who commit the crime of graft are to be punished according to the following stipulations depending on the seriousness of their cases:

(1) Individuals who have engaged in graft with an amount of more than 100,000 yuan are to be sentenced to more than 10 years of fixed-term imprisonment or life imprisonment and may, in addition, have their properties confiscated. In especially serious cases, those offenders are to be sentenced to death and, in addition, have their properties confiscated.

(2) Individuals who have engaged in graft with an amount of more than 50,000 yuan but less than 100,000 yuan are to be sentenced to more than 5 years of fixed-term imprisonment and may, in addition, have their properties confiscated. In especially serious cases, those offenders are to be sentenced to life imprisonment and, in addition, have their properties confiscated.

(3) Individuals who have engaged in graft with an amount of more than 5,000 yuan but less than 50,000 yuan are to be sentenced to more than one year but less than seven years of fixed-term imprisonment. In serious cases, those offenders are to be sentenced to more than seven years but less than 10 years of fixed-term imprisonment. Individuals who have engaged in graft with a amount of more than 1,000 yuan but less than 10,000 yuan may receive a reduced punishment or be exempted from punishment if they express repentance after having committed crimes and actively returning the illegally obtained money. However, they will receive administrative action to be decided by the unit to which they belong or the higher administrative organ.

(4) Individuals who have engaged in graft with an amount of less than 5,000 yuan, with the situation being serious, are to be sentenced to less than two years of fixed-term imprisonment or criminal detention.

In lighter cases, they will be given administrative action to be decided by the unit to which they belong or the higher administrative organ.

Toward those who have committed repeated crimes of graft, all amounts of graft of unhandled cases are to be added in meting out punishment.

Article 384. State personnel who take advantage of their office and misappropriate public funds for personal use or illegal activities or misappropriate large amounts of public funds without returning the money within three months are guilty of the crime of embezzlement and are to be sentenced to not more than five years of fixed-term imprisonment or criminal detention. In serious cases, those offenders are to be sentenced to more than five years of fixed-term imprisonment. Those who misappropriate a large amount of public funds without returning the money are to be sentenced to more than 10 years of fixed-term imprisonment or life imprisonment.

Those who misappropriate funds for relief of natural disasters, flood prevention, preferential treatment to military dependents, helping the poor and aid supplies for personal use are to be punished in a severe manner.

Article 385. State personnel who take advantage of their office to demand money and things from other people or if they illegally accept money and things from other people and give favors to the latter are guilty of the crime of bribery.

State personnel in their economic operation accept various kinds of kickback and handling fees for their personal use in violation of state provisions also guitly of the crime of bribery and are to be punished accordingly.

Article 386. Whoever commits the crime of accepting bribes is to be

punished on the basis of Article 383 of this law according to the amount of bribes and the circumstances.

A heavier punishment shall be given to whoever demands a bribe.

Article 387. State organs, state-owned companies, enterprises, institutions, and people's organizations which exact or illegally accept articles of property from other people and try to obtain gain for other people shall be sentenced to a fine if the circumstances are serious; moreover, their personnel who are directly in charge and other personnel who are directly held responsible for the crime are to be sentenced to not more than five years of fixed-term imprisonment or to criminal detention.

In economic activities, should the units listed in the preceding paragraph secretly accept, outside the account, kickback or service charges of various types, they are to be punished as having accepted a bribe on the basis of the provisions in the preceding paragraph.

Article 388. State functionaries who help trustors to seek illegitimate gain, exact or accept articles of property from trustors by taking advantage of the facilities created by their authority of office or position, or through the action related to the post of other state functionaries, shall be dealt with according to the crime of accepting bribes.

Article 389. An act of giving state functionaries articles of property in order to seek illegitimate gain shall be considered a crime of offering bribes.

In economic activities, whoever gives articles of property to state

functionaries in violation of state provisions, when the amount is fairly

large, or gives a kickback or service charges of various types to state

functionaries in violation of state provisions is to be dealt with as

committing the crime of offering bribes.

Whoever gives articles of property to state functionaries due to extortion

but receives no illegitimate gain shall not be considered as committing the

crime of offering bribes.

Article 390. Whoever commits the crime of offering bribes is to be

sentenced to not more than five years of fixed-term imprisonment or to

criminal detention; whoever offers bribes to seek illegitimate gain, when

the circumstances are serious, or causes great damage to state interests,

is to be sentenced to not less than five years and not more than 10 years

of fixed-term imprisonment, or to not less than 10 years of fixed-term

imprisonment or life imprisonment when the circumstances are extremely

serious, and may in addition be sentenced to confiscation of property.

Before prosecution, offenders in offering bribes who take the initiative to

admit their crime may receive a lighter punishment or be exempted from

punishment.

Article 391. To seek illegitimate gain, whoever gives articles of

property to state organs, state-owned companies, enterprises, institutions,

and people's organizations, or in economic activities gives kickbacks or

service charges in violation of state provisions, is to be sentenced to not

more than three years of fixed-term imprisonment or to criminal detention.

Whichever unit commits the crime mentioned in the preceding paragraph is to

be sentenced to a fine, and the responsible persons who are directly in

charge of the unit or other personnel who are held directly responsible for

the crime shall be punished on the basis of the preceding paragraph.

Article 392. Whoever introduces bribery to state functionaries, when the

circumstances are serious, is to be sentenced to not more than three years

of fixed-term imprisonment or to criminal detention.

Before prosecution, if the person introducing bribery to state

functionaries takes the initiative to admit his/her crime, he or she may

receive a lighter punishment or be exempted from punishment.

Article 393. To seek illegitimate gain, any unit which offers bribes or

gives kickback or service charges to state functionaries in violation of

state provisions, when the circumstances are serious, is to be sentenced to

a fine, and the personnel directly in charge of the unit or other personnel

who are directly held responsible for the crime are to be sentenced to not

more than five years of fixed- term imprisonment or to criminal detention.

In case the income obtained illegally through bribery is received by an

individual, the individual shall be punished according to the crime

stipulated in Article 389 and Article 390 of this law.

Article 394. State functionaries who accept gifts in the course of

carrying out official duties at home or in intercourse with foreign

countries but who fail to turn over the gifts to the state in accordance

with state provisions, when the amount is fairly large, shall be punished

in accordance with the crimes stated in Article 382 and Article 383 of this

law.

Article 395. When the property or expenses of state functionaries clearly

exceed their legitimate income, when the difference is huge, they shall be

ordered to explain the sources of their property. When state functionaries

fail to explain the legitimacy of their property, that part of property

shall be considered an illegal income, and they themselves shall be

sentenced to not more than five years of fixed-term imprisonment or to

criminal detention, and the difference must be handed over to the state.

State functionaries who have savings deposits in foreign countries must

declare their deposits according to state provisions. Those who hide their

deposits of this nature by not declaring them are to be sentenced to not

more than two years of fixed-term imprisonment or to criminal detention;

when the circumstances are not serious, they shall be given administrative

punishment by the unit to which they belong or by a competent organ of a

higher level according to the circumstance.

Article 396. State organs, state-owned companies, enterprises, business

units, and mass organizations which violate state regulations by privately

distributing state assets to groups of individuals in the name of the

units, where the amounts involved are fairly large, the principal personnel

directly responsible and other personnel with direct responsibility shall

be sentenced to not more than three years of fixed-term imprisonment or

criminal detention, and may in addition or exclusively be sentenced to a

fine; and when huge amounts are involved, not less than three years and not

more than seven years of fixed-term imprisonment, and may in addition be

sentenced to a fine.

Judicial organizations and administrative and law enforcement organizations

which violate state stipulations by privately distributing to groups of

individuals fines and confiscated goods that should be turned over to the

higher authorities, shall be punished in accordance with the stipulations

of the preceding paragraph.

Chapter IX Crimes of Dereliction of Duty

Article 397. State personnel who abuse their power or neglect their

duties, causing great losses to public property and the state's and

people's interests, shall be sentenced to not more than three years of

fixed-term imprisonment or criminal detention; and when the circumstances

are exceptionally serious, not less than three years and not more than

seven years of fixed-term imprisonment. Where there are separate

stipulations under this law, these stipulations shall be followed.

State personnel who practice favoritism and commit irregularities and the

crimes mentioned in the preceding paragraph shall be sentenced to not more

than five years of fixed-term imprisonment or criminal detention, and when

the circumstances are exceptionally serious, not less than five years and

not more than 10 years of fixed-term imprisonment.

Where there are separate stipulations under this law, these stipulations

shall be followed.

Article 398. State personnel who violate the stipulations of the Law of

Protection of State Secrets and intentionally or negligently reveal state

secrets, and when the circumstances are serious, shall be sentenced to not

more than three years of fixed-term imprisonment or criminal detention; and

when the circumstances are exceptionally serious, not less than three years

and not more than seven years of fixed-term imprisonment.

Non-state personnel who commit the crime mentioned in the preceding

paragraph shall be punished in consideration of the circumstances and in

accordance with the stipulations of the preceding paragraph.

Article 399. Judicial personnel who act with partiality and defeat the

ends of justice and bend the law for the benefit of relatives or friends,

subjecting to prosecution persons they clearly know to be innocent or

intentionally protecting from prosecution persons they clearly know to be

guilty, or, intentionally go against facts and laws in criminal trials to

render judgments that misuse the law, shall be sentenced to not more than

five years of fixed-term imprisonment or criminal detention, and when the

circumstances are serious, not less than five years and not more than 10

years of fixed-term imprisonment; and in exceptionally serious

circumstances, not less than 10 years of fixed-term imprisonment.

Whoever intentionally goes against facts and laws in civil and

administrative trials to render judgments that misuse the law, and when the

circumstances are serious, shall be sentenced to not more than five years

of fixed-term imprisonment; and in exceptionally serious circumstances, not

less than five years and not more than 10 years of fixed-term imprisonment.

Judicial personnel who take bribes and bend the law and commit the crimes

mentioned in the two preceding paragraphs, and meanwhile constituting the

crimes mentioned in Article 385 of this law, shall be convicted and

punished in accordance with the stipulations for a heavier penalty.

Article 400. Judicial work personnel who release without authority crime

suspects, accused persons, or criminals from custody shall be punished with

imprisonment or criminal detention of less than five years; or -- for cases

of a serious nature -- with imprisonment of over five years and less than

10 years; or -- for cases of an extraordinary serious nature -- with

imprisonment of over 10 years.

Judicial work personnel who, because of serious irresponsibility, cause the

escape of crime suspects, accused persons, or criminals from custody

resulting in severe consequences, shall be punished with imprisonment or

criminal detention of less than three years; or -- for cases causing

extraordinary serious consequences -- with imprisonment of over three years

and less than 10 years.

Article 401. Judicial work personnel who, because of favoritism and

malpractice, offer commutation, parole, or out-of-prison enforcement for

offenses that fail to meet requirements of such commutation, parole, or

out-of-prison enforcement, shall be punished with imprisonment or criminal

detention of less than three years; or -- for cases of a serious nature --

with imprisonment of over three years and less than seven years.

Article 402. Administrative law enforcement personnel who, because of

favoritism and malpractice, fail to refer cases to judicial organs for

establishing criminal liabilities under the law, shall -- in cases of a

serious nature -- be punished with imprisonment or criminal detention of

less than three years; or -- where serious consequences have been caused --

with imprisonment of over three years and less than seven years.

Article 403. State organ work personnel under relevant competent state

departments, who, because of favoritism, malpractice, and abuse of powers,

approve or register the incorporation or registration of companies that

fail to meet conditions required by law, or approve their applications for

issuance of shares or bonds, or listing resulting in serious losses to

public property and interests of the state and the people, shall be

punished with imprisonment or criminal detention of less than five years.

Personnel directly in charge of a department of a higher level that

forcibly order registration organs or their work personnel to commit acts

of the preceding paragraph shall be punished according to provisions of the

preceding paragraph.

Article 404. Work personnel of tax organs, who, because of favoritism and

malpractice, fail to impose or impose less mandatory taxes resulting in

serious losses of state revenues, shall be punished with imprisonment or

criminal detention of less than five years; or -- in cases causing

extraordinary serious losses -- with imprisonment of over five years.

Article 405. Work personnel of tax organs, who, in violation of

provisions under the law and administrative rules, cause great losses to

state interests in handling work relating to sale of invoices, tax

offsetting, and export tax refund as a result of favoritism and

malpractice, shall be punished with imprisonment or criminal detention of

less than five years; or -- in cases causing extraordinary serious losses

to state interests -- with imprisonment of over five years.

Other state organ work personnel, who, in violation of state stipulations,

practice favoritism and malpractice in work relating to export tax refunds,

including provision of customs declaration bills for export goods, and

verification and cancellation of exchange earnings through export,

resulting in serious losses to state interests, shall be punished according

to the provisions of the preceding paragraph.

Article 406. Work personnel of state organs, who, because of serious

irresponsibility, have been deceived in the course of entering or executing agreements, resulting in serious losses to state interests, shall be punished with imprisonment or criminal detention of less than three years; or -- for cases causing extraordinary serious losses to state interests -- with imprisonment of over three years and less than seven years.

Article 407. Work personnel of departments in charge of forest industry, who, in violation of provisions under the Forest Law, issue logging licenses in excess of approved annual quotas or indiscriminately issue logging licenses, shall -- in cases of a serious nature that cause severe damages to forests -- be punished with imprisonment or criminal detention of less than three years.

Article 408. Work personnel of state organs in charge of environmental protection and supervision, whose serious irresponsibility has resulted in serious consequences, including severe environmental pollution that causes serious damages to public and private property or human casualties, shall be punished with imprisonment or criminal detention of less than three years.

Article 409. Government work personnel of public health administrative departments engaging in the prevention and treatment of infectious diseases, whose serious irresponsibility has resulted in the communication and spread of infectious diseases, shall -- in cases of a serious nature --be punished with imprisonment or criminal detention of less than three years.

Article 410. State organ work personnel, who practice favoritism and malpractice, violate land management rules, and abuse powers in illegally approving land acquisition and occupation, or illegally leasing out land use rights at a price lower than market value, shall -- in cases of a serious nature -- be punished with imprisonment or criminal detention of less than three years; or -- for cases causing extraordinary heavy losses to state or collective interests -- with imprisonment of over three years and less than seven years.

Article 411. Customs work personnel who practice favoritism and malpractice in conniving smuggling, shall, -- for cases of a serious nature-- be punished with imprisonment or criminal detention of less than five years; or -- for cases of an extraordinary serious nature -- be punished with imprisonment of over five years.

Article 412. Work personnel with state commercial inspection departments or organizations, who practice favoritism and malpractice and forge inspection results, shall be punished with imprisonment or criminal detention of less than five years; or -- for cases of a serious nature -- with imprisonment of over five years and less than 10 years.

Work personnel mentioned in the preceding paragraph, who, because of serious irresponsibility, fail to inspect goods requiring inspection, or delay inspection and issuance of certificates, or wrongly issue certificates resulting in serious losses to state interests, shall be punished with imprisonment or criminal detention of less than three years.

Article 413. Quarantine personnel with animal and plant quarantine organs, who practice favoritism and malpractice in forging quarantine results, shall be punished with imprisonment or criminal detention of less than five years; or -- in cases with serious consequences -- with imprisonment of over five years and less than 10 years.

Work personnel mentioned in the preceding paragraph, who, because of serious irresponsibility, fail to carry out quarantine on goods requiring quarantine, or delay quarantine and issuance of certificates, or wrongly issue certificates resulting in serious losses to state interests, shall be punished with imprisonment or criminal detention of less than three years.

Article 414. State organ work personnel charged with the responsibility of establishing liabilities of criminal acts relating to the sale of fake

and shoddy merchandise, who practice favoritism and malpractice and fail to

perform their duties under the law, shall -- in cases of a serious nature

-- be punished with imprisonment or criminal detention of less than five

years.

Article 415. State organ work personnel charged with the responsibility

of handling passports, visas, and other exit/entry documents, who knowingly

grant exit/entry documents to personnel attempting to cross state (border)

lines illegally; or state organ work personnel of frontier defense or

customs, who knowingly let go personnel who try to cross state (border)

lines illegally, shall be punished with imprisonment or criminal detention

of less than three years; or -- in cases of a serious nature -- with

imprisonment of over three years and less than seven years.

Article 416. State organ personnel charged with the responsibility of

rescuing abducted or kidnapped women and children, who fail to act at the

request of the abducted or kidnapped women or children or members of their

family or at information received from members of the public, resulting in

serious consequences, shall be punished with imprisonment or criminal

detention of less than five years.

State organ work personnel with rescue responsibility, who take advantage

of their duties to obstruct rescue operations, shall be punished with

imprisonment of over two years and less than seven years; or -- for less

serious cases -- with imprisonment or criminal detention of less than two

years.

Article 417. State organ personnel charged with the responsibility of

investigating and banning criminal activities, who send secret information

or tip off criminal elements, or provide facility to help them evade

punishment, shall be punished with imprisonment or criminal detention of

less than three years; or -- in cases of a serious nature -- with

imprisonment of over three years and less than 10 years.

Article 418. State organ work personnel who practice favoritism and

malpractice in recruiting government functionaries or students, shall -- in

cases of a serious nature -- be punished with imprisonment or criminal

detention of less than three years.

Article 419. State personnel who cause damage to or loss of precious

cultural relics through serious irresponsibility shall be sentenced to not

more than three years in prison or criminal detention if the circumstances

are serious.



Chapter X Crimes of Violation of Duty by Military Personnel

Article 420. Acts by military personnel of endangering national and

military interests in violation of their duties which are punishable by law

are considered crimes in violation of duty by military personnel.

Article 421. Those who endanger military operations in defiance of orders

in wartime shall be sentenced to not less than three years and not more

than 10 years in prison. If they cause major losses in combat or battle,

they shall be sentenced to not less than 10 years in prison, life

imprisonment, or death.

Article 422. Those who endanger military operations by deliberately

concealing military information, providing false military information,

refusing to relay military orders, or relaying false military orders shall

be sentenced to not less than three years and not more than 10 years in

prison. If they cause major losses in combat or battle, they shall be

sentenced to not less than 10 years in prison, life imprisonment, or death.

Article 423. Those who care for nothing but their own lives on the

battleground and lay down their arms and surrender to the enemy of their

own accord shall be sentenced to not less than three years and not more

than 10 years in prison. If the circumstances are serious, they shall be

sentenced to not less than 10 years in prison or life imprisonment.

Those who work for the enemy after their surrender shall be sentenced to

not less than 10 years in prison, life imprisonment, or death.

Article 424. Those who flee from battle shall be sentenced to not more

than three years in prison. If the circumstances are serious, they shall be

sentenced to not less than three years in prison and not more than 10 years

in prison. If they cause major losses in combat or battle, they shall be

sentenced to not less than 10 years in prison, life imprisonment, or death.

Article 425. Commanders and personnel on duty who cause serious

consequences by leaving their posts without permission or by neglecting

their duties shall be sentenced to not more than three years in prison or

criminal detention. In the event of especially serious consequences, they

shall be sentenced to not less than three years and not more than seven

years in prison.

Those who commit the crimes mentioned in the preceding paragraph in wartime

shall be sentenced to not less than five years in prison.

Article 426. Those who obstruct commanders or personnel on duty from

performing their duties through violence or intimidation shall be sentenced

to not more than five years in prison or criminal detention. If the

circumstances are serious, they shall be sentenced to not less than five

years in prison. In the event of serious injuries or deaths, or other

especially serious circumstances, they shall be sentenced to life

imprisonment or death. If they commit these acts in wartime, they shall be

given stiff punishment.

Article 427. Those who cause serious consequences by abusing their powers

and directing their subordinates to engage in activities in violation of

their duties shall be sentenced to not more than five years in prison or

criminal detention. If the circumstances are especially serious, they shall

be sentenced to not less than five years and not more than 10 years in

prison.

Article 428. Commanders who cause serious consequences by turning away

from battle or acting passively in combat in defiance of orders shall be

sentenced to not more than five years in prison. In the event of major

losses in combat or battle, or other especially serious circumstances, they

shall be sentenced to not less than five years in prison.

Article 429. The commanders of those who cause friendly forces to suffer

major losses by not coming to their rescue on the battleground, although

they know that they are in imminent danger, are asking for rescue, and can

be rescued, shall be sentenced to not more than five years in prison.

Article 430. Those who endanger national and military interests by

leaving their posts without permission, fleeing the country, or defecting

while outside the country during the course of performing official duties

shall be sentenced to not more than five years in prison or criminal

detention.

If the circumstances are serious, they shall be sentenced to not less than

five years in prison.

In the event of desertion by aircraft or on board vessels, or other

especially serious circumstances, those involved shall be sentenced to not

less than 10 years in prison, life imprisonment, or death.

Article 431. Those who illegally obtain military secrets by stealing,

spying, or buying such secrets shall be sentenced to not more than five

years in prison. If the circumstances are serious, they shall be sentenced

to not less than five years and not more than 10 years in prison.

If the circumstances are especially serious, they shall be sentenced to not

less than 10 years in prison.

Those who steal, spy, or buy military secrets for overseas institutions,

organizations, or personnel, and illegally provide such secrets to them

shall be sentenced to not less than 10 years in prison, life imprisonment,

or death.

Article 432. Those who leak military secrets by design or by accident in

violation of laws and regulations on protecting state secrets shall be

sentenced to not more than five years in prison or criminal detention if

the circumstances are serious. If the circumstances are especially serious,

they shall be sentenced to not less than five years and not more than 10

years in prison.

Those who commit the crime mentioned in the preceding paragraph in wartime

shall be sentenced to not less than five years and not more than 10 years

in prison. If the circumstances are especially serious, they shall be

sentenced to not less than 10 years in prison or life imprisonment.

Article 433. Those who fabricate rumors to mislead people and shake the

morale of troops in wartime shall be sentenced to not more than three years

in prison. If the circumstances are serious, they shall be sentenced to not

less than three years and not more than 10 years in prison.

Those who fabricate rumors to mislead people and shake the morale of troops

in collusion with the enemy shall be sentenced to not less than 10 years in

prison or life imprisonment. If the circumstances are especially serious,

they may be sentenced to death.

Article 434. Those who inflict injuries on themselves to eschew military

duties in wartime shall be sentenced to not more than three years in

prison. If the circumstances are serious, they shall be sentenced to not

less than three years and not more than seven years in prison.

Article 435. Those who desert their troops in violation of military

service laws and regulations shall be sentenced to not more than three

years in prison or criminal detention if the circumstances are serious.

Those who commit the crime mentioned in the preceding paragraph in wartime

shall be sentenced to not less than three years and not more than seven

years in prison.

Article 436. Those who violate regulations on the use of weaponry in

circumstances that are so serious as to constitute accidents through

negligence that result in serious injuries or deaths or that cause other

serious consequences shall be sentenced to not more than three years in

prison or criminal detention. If the consequences are especially serious,

they shall be sentenced to not less than three years and not more than

seven years in prison.

Article 437. Those who cause serious consequences by changing the

prescribed ways of using weaponry in violation of weaponry management

regulations shall be sentenced to not more than three years in prison or

criminal detention. If the circumstances are especially serious, they shall

be sentenced to not less than three years and not more than seven years in

prison.

Article 438. Those who steal or snatch weaponry or war materiel shall be

sentenced to not more than five years in prison or criminal detention. If

the circumstances are serious, they shall be sentenced to not less than

five years and not more than 10 years in prison. If the circumstances are

especially serious, they shall be sentenced to not less than 10 years in

prison, life imprisonment, or death.

Those who steal or snatch firearms, ammunition, or explosives shall be

punished in accordance with the provisions in Article 127 of this law.

Article 439. Those who illegally sell or transfer military weaponry shall

be sentenced to not less than three years and not more than 10 years in

prison. In the event of selling or transferring large quantities of

weaponry, or other especially serious circumstances, they shall be

sentenced to not less than 10 years in prison, life imprisonment, or death.

Article 440. Those who abandon weaponry in defiance of orders shall be

sentenced to not more than five years in prison or criminal detention. In

the event of abandoning important weaponry or large quantities of weaponry,

or other serious circumstances, they shall be sentenced to not less than

five years in prison.

Article 441. In the event of failure to promptly report loss of weaponry,

or other serious circumstances, those involved shall be sentenced to not

more than three years in prison or criminal detention.

Article 442. In the event of selling or transferring military real estate

without permission in violation of relevant provisions, and if the

circumstances are serious, the people directly responsible shall be

sentenced to not more than three years in prison or criminal detention. If

the circumstances are especially serious, they shall be sentenced to not

less than three years and not more than 10 years in prison.

Article 443. Those who abuse their powers and maltreat their subordinates

in vicious circumstances that result in serious injuries or give rise to

other serious consequences shall be sentenced to not more than five years

in prison or criminal detention. If deaths result, they shall be sentenced

to not less than five years in prison.

Article 444. Persons directly responsible for the intentional abandonment

of injured or sick servicemen on battlefields, if the case is serious, are

to be sentenced to five years or fewer in prison.

Article 445. Those working in medical aid or medical treatment positions

during wartime who refuse to save or treat seriously injured or critically

sick servicemen when conditions permit them to do so are to be sentenced to

five years or fewer in prison or put under criminal detention. If the case

results in serious disability, death, or other grave consequences of the

injured or sick servicemen, those responsible are to be sentenced to five

to 10 years in prison.

Article 446. Those cruelly injuring innocent residents or looting

innocent residents' money or other property on military action areas are to

be sentenced to five years or fewer in prison. If the case if serious, they

are to be sentenced to five to 10 years in prison. If the case is

extraordinarily serious, they are to be sentenced to 10 years or more in

prison, given a life sentence, or sentenced to death.

Article 447. Those releasing prisoners of war without authorization are

to be sentenced to five years or fewer in prison. Those releasing important

prisoners of war or many prisoners of war, or those involved in other

serious cases, are to be sentenced to five years or more in prison.

Article 448. Those mistreating prisoners of war, if the case is serious,

are to be sentenced to three years or fewer in prison.

Article 449. During wartime, convicted servicemen who are sentenced to

three years or fewer in prison, who pose no practical dangers, and whose

sentence is suspended, are allowed to redeem themselves by good service. If

they prove to have done meritorious service, their original sentence may be

rescinded and they may not be considered to have committed a crime.

Article 450. This chapter applies to active duty military officers,

civilian cadres, soldiers, and cadets with military status of the Chinese People's Liberation Army [PLA]; active duty military officers, civilian cadres, soldiers, and cadets with military status in the Chinese People's Armed Police; and personnel of the reserve force and other personnel carrying out military tasks.

Article 451. Wartime as mentioned in this chapter refers to the time after the state has declared the state of war, troops have been assigned with combat missions, or when the country is suddenly attacked by enemy.

The time during which troops carry out marshal law missions or handle emergency violence is considered wartime. Supplementary Articles

Article 452. This law will go into effect as of October 1, 1997. Regulations, supplementary provisions, and decisions made by the National People's Congress Standing Committee that are listed in appendix one of this law have either been included in this law or are no longer applicable; therefore they are to be nullified as of the date when this law goes into effect.

Supplementary provisions and decisions made by the National People's Congress Standing Committee that are listed in appendix two of this law are to be retained. Among them, provisions governing administrative punishment and measures continue to be effective; provisions governing criminal liability have been included in this law and therefore provisions in this law will apply as of the date when this law goes into effect.



Appendix I

The following regulations, supplementary provisions, and decisions, made by

National People's Congress Standing Committee, have either been included in

this law or are no longer applicable; therefore they are to be nullified as

of the date when this law goes into effect

1. PRC Provisional Regulations on Punishing Military Personnel for

Violation of Duty;

2. Decision on Severely Punishing Criminals Seriously Undermining the

Economy;

3. Decision on Severely Punishing Criminal Elements Seriously

Compromising Social Order;

4. Supplementary Provisions on Cracking Down on the Crime of

Smuggling;

5. Supplementary Provisions on Cracking Down on the Crime of

Corruption or Bribery;

6. Supplementary Provisions on Cracking Down on the Crime of Letting

Out State Secrets;

7. Supplementary Provisions on Cracking Down on the Crime of Killing

Rare and Endangered Wildlife That Are Selectively Under the State's

Protection;

8. Decision on Cracking Down on the Crime of Insulting the PRC

National Flag or Emblem;

9. Supplementary Provisions on Cracking Down on the Crime of Robbing

Ancient Cultural Ruins or Ancient Tombs;

10. Decision on Punishing Criminal Elements Hijacking Aviation Vehicles;

11. Supplementary Provisions on Cracking Down on the Crime of Counterfeiting Registered Trade Marks;

12. Decision on Cracking Down on the Crime of Producing or Selling Counterfeit or Inferior Commodities;

13. Decision on Cracking Down on the Crime of Infringing on Copyright;

14. Decision on Cracking Down on the Crime of Violating the Company Law;

15. Decision on Handling Escaped Criminals Under Reform Through Labor

or People Under Education Through Labor, or Those Who Commit Crimes Again.



Appendix II

The following supplementary provisions and decisions, made by the National People's Congress Standing Committee, are to be retained. Among them, provisions governing administrative punishment and measures continue to be effective; provisions governing criminal liability have been included in this law and therefore provisions in this law will apply as of the date when this law goes into effect.

1. Decision on Prohibiting Drugs;

2. Decision on Punishing Criminal Elements Committing Smuggling, Producing, Selling, or Disseminating Obscene Materials;

3. Decision on Punishing Criminal Elements Committing Abduction and Selling or Kidnapping of Women or Children;

4. Decision on Strictly Prohibiting Prostitution and Whorehouse Visiting;

5. Supplementary Provisions on Cracking Down on the Crime of Evading Taxes or Refusing to Pay Taxes;

6. Supplementary Provisions on Severely Cracking Down on the Crime of Organizing People to Illegally Cross National Borders (Frontiers) or of Illegally Shipping People Across National Borders (Frontiers);

7. Decision on Cracking Down on the Crime of Undermining the Financial Order;

8. Decision on Cracking Down on the Crime of the Fraudulent Issuance of, Forging, or Illegally Selling Invoices Exclusively for Value-Added Taxes.

----------------------------------------------------------

Measures for the Administration of Stock Exchanges

Promulgation date:    12-10-1997    Department:    Securities Commission of the State Council (repealed)
Effective date:    12-10-1997    Subject:    Securities
Measures for the Administration of Stock Exchanges

(Approved by the State Council on November 30, 1997 and promulgated by the Securities Commission under the State Council on December 10, 1997)
Measures for the Administration of Stock Exchanges

Measures for the Administration of Stock Exchanges

(Approved by the State Council on November 30, 1997 and promulgated by the Securities Commission under the State Council on December 10, 1997)
Chapter I

secure, fair and efficient services and accept the supervision of the
stock exchanges over their business activities.

Notice of China Securities Regulatory Commission (CSRC) on the Issues concerning the Implementation of the Pilot Rules on the Administration of Overseas Securities Investment by Qualified Domestic Institutional Investors

Promulgation date:    06-18-2007    Department:    China Securities Regulatory Commission
Effective date:    07-05-2007    Subject:    Securities
Notice of China Securities Regulatory Commission (CSRC) on the Issues concerning the Implementation of the Pilot Rules on the Administration of Overseas Securities Investment by Qualified Domestic Institutional Investors

(No.81 [2007] of China Securities Regulatory Commission)

To: all fund management companies, securities companies and custodian banks:

In order to implement the Pilot Rules on the Administration of Overseas Securities Investment by Qualified Domestic Institutional Investors (the “Pilot Rules”) and do a good job in the overseas securities investment by qualified domestic institutional investors, the issues concerning the implementation of the Pilot Rules are hereby notified to you as follows:

I. The certificates in conformity with Article 8 of the Pilot Rules shall be:

(a) Certificates on the asset management scale, etc. at the end of the most recent quarter issued by a domestic certified public accountant;
(b) Introduction to the basic information on the personnel who have the related experience in the overseas investment management, such as educational background, work experience, professional qualifications, and professional titles; and
(c) Major systems, such as the risk control, compliance control and investment management systems.

II. The certificates in conformity with Article 14 of the Pilot Rules shall be:

(a) Business license and business permit certificates (photocopies) approved and issued by the government or regulatory authorities of the country or region where an overseas investment advisor (the “investment advisor”) is located;
(b) Certificates on the asset management scale at the end of the previous year issued by a foreign certified public accountant;
(c) Articles of association of the company or partnership of an investment advisor;
(d) Major systems, such as the risk control, compliance control and investment management systems, of an investment advisor;
(e) Statements on whether an investment advisor has been seriously punished by the regulatory authorities over the last five years or is being investigated by the judicial authorities or regulatory authorities due to any serious violation;
(f) Audited financial statements in the most recent year of an investment advisor; and
(g) Statements on the institutions formed and business operated within China by an investment advisor or any of its affiliates.

Where any of the certificates as mentioned in the preceding paragraph is written in a foreign language, it shall be accompanied by a Chinese translation or abstract.

III. The certificates in conformity with Article 19 of the Pilot Rules shall be:

(a) Financial business permit (photocopy);
(b) Business license (photocopy);
(c) Certificate on the paid-up capital or scale of assets under custody at the end of the previous year issued by a foreign certified public accountant;
(d) Statements on the manning of staff in the custodian department and conditions for asset safekeeping;
(e) Major management systems of the custodian business; and
(f) Statements on the non-existence of serious punishment by the regulatory authorities in the country or region where an overseas asset custodian is located over the last three years or the nonexistence of ongoing investigation by the judicial authorities or regulatory authorities due to any serious violation.

Where any of the certificates as mentioned in the preceding paragraph is written in a foreign language, it shall be accompanied by a Chinese translation or abstract.

IV. Fundraising

1. Application materials for fundraising

To apply for fundraising under a fund or pool fund, a domestic institutional investor shall also submit the following documents (one original, one copy), in addition to the application materials to be submitted in accordance with the Securities Investment Fund Law, the Rules on the Administration of Securities Investment Fund Operations, the Pilot Rules on the Business of Client Asset Management of Securities Companies and other relevant provisions:

(a) A risk revelation letter for investors;
(b) Materials for investor education, including but not limited to:
(i) Basic information on the fund or pool fund;
(ii) Information on the major risks facing an investor who makes overseas investment through the purchase under the fund or pool fund;
(iii) Basic information on the market in the country or region where the investment is to be made;
(iv) General knowledge on the proposed financial product or instrument for investment; and
(v) Criteria for preparing and standards for selecting the benchmark for the comparison of fund investment performance.

The materials for investor education shall be written in the Chinese language, which shall be succinct, plain and easily understandable, shall not comprise the promotion of a specific fund product or pool fund, domestic institutional investor or its product or service, but may cite the product or service as an example, and such citation shall not have any effect of prompting the company, product or service.

(c) Where a domestic institutional investor engages an investment advisor, the following documents shall also be submitted:
(i) Form of Basic Information on Investment Advisor (See Annex I);
(ii) Draft agreement entered into between a domestic institutional investor and an investment advisor; and
(iii) Certificates set forth in paragraph II of this Notice.

(d) Where a custodian engages an overseas custodian, the following documents shall also be submitted:
(i) Draft agreement entered into by a custodian and an overseas custodian; and
(ii) Certificates set forth in paragraph III of this Notice.

Where any of the certificates as mentioned in the preceding paragraph is written in a foreign language, it shall be accompanied by a Chinese translation or abstract.

2. The name of a fund or pool fund shall satisfy the following requirements:

(a) The language shall be succinct, plain and easily understandable; and
(b) Consistence with the investment strategy, scope, country or region under the fund or pool fund.

3. The benchmark for the comparison of fund investment performance and its selection shall satisfy the following requirements:

(a) The performance comparison benchmark shall be determined in the beginning of the performance appraisal period;
(b) The performance comparison benchmark shall be consistent with the investment style and technique of the fund;
(c) The performance comparison benchmark data may be obtained at a reasonable frequency;
(d) The benchmark components and their proportions may be clearly determined;
(e) Having the knowledge of the current condition of securities constituting the comparison benchmark and having the research specialties;
(f) The accepted performance comparison benchmark is applicable and the deviation between the active management and the performance comparison benchmark may be reasonably explained; and
(g) The performance comparison benchmark shall be duplicable.

4. The initial fundraising under a fund or pool fund shall satisfy the following requirements:

(a) The fund may be raised in Renminbi, U.S. dollar or any other major foreign exchange currency as the calculation currency;
(b) The amount of fundraising under a fund shall not be less than 200 million yuan or equivalent currency; the amount of fundraising under a pool fund shall not be less than 100 million yuan or equivalent currency;
(c) The number of holders of shares in an open-ended fund shall not be less than 200, the number of holders of shares in an close-ended fund shall not be less than 1,000, and the number of holders in a pool fund shall not be less than 2; and
(d) Where the fund is raised at the par value, a domestic institutional investor may determine the amount of par value according to the features of the product.

V. Investment operations

1. Except as otherwise provided for by the CSRC, a fund or pool fund may make investment in the following financial products or instruments:
(a) Bank deposits, negotiable certificates of deposit, bank acceptance, bank paper, commercial paper, repurchase agreements, short-term government bonds, and other instruments on the currency market;
(b) Government, corporate and convertible bonds, mortgage-backed securities (MBS), asset-backed securities (ABS) and securities issued by an international financial organization that has been accredited by the CSRC (See Annex II);
(c) Common stocks, preference stocks, global depository receipts (GDR), American depository receipts (ADR), and real estate investment trust receipts listed and traded on the securities market of a country or region that has signed a memorandum of understanding on the bilateral regulatory cooperation with the CSRC (See Annex III);
(d) Funds raised by public offerings that have been registered with the securities regulatory authorities of a country or region that has signed a memorandum of understanding on the bilateral regulatory cooperation with the CSRC.
(e) Structured products linked to such subject matters as fixed income, equity, credit, commodity index and fund; and
(f) Such financial derivatives as forwards, swaps, and warrants, options and futures listed and traded on an overseas stock exchange that is accredited by the CSRC (See Annex IV).

The bank as mentioned in (a) of the preceding paragraph shall refer to a subsidiary bank formed overseas by a Chinese-funded commercial bank or an overseas bank up to the rating in the most recent fiscal year by a credit rating institution that is accredited by the CSRC (See Annex V).

2. Except as otherwise provided for by the CSRC, a fund or pool fund shall not have the following conduct:

(a) Purchasing a real estate.
(b) Purchasing a real estate mortgage.
(c) Purchasing precious metals or receipts representing precious metals.
(d) Purchasing commodities in kind.
(e) Borrowing funds except for such interim purposes as due payments for redemption and transaction settlement. The ratio of funds borrowed for an interim purpose shall not exceed 10% of the net asset value of a fund or pool fund.
(f) Purchasing securities by financing, except investment in financial derivatives.
(g) Participating in short selling without holding the underlying assets.
(h) Engaging in securities underwriting business.
(i) Any other conduct prohibited by the CSRC.

3. A domestic institutional investor or investment advisor shall not have the following conduct:

(a) Unfairly treating different clients or different portfolios.
(b) Disclosing client information to any third party, except as otherwise provided for by a law or administrative regulation.
(c) Any other conduct prohibited by the CSRC.

4. Limitations on investment proportions

(a) The deposits in a same bank held by a single fund or pool fund shall not exceed 20% of the net value of the fund or pool fund. The deposits in the custody accounts of a fund or pool fund may be exempted from the above limitation.
(b) The market value of the securities issued by a same institution (other than a government or international financial organization) and held by a single fund or pool fund shall not exceed 10% of the net value of the fund or pool fund. An index fund may be exempted from the above limitation.
(c) The securities assets listed and traded on the securities exchanges of a country or region other than the one that has signed a memorandum of understanding on the bilateral regulatory cooperation with the CSRC and held by a single fund or pool fund shall not exceed 10% of the net asset value of the fund or pool fund, and such securities assets held in any country or region above shall not exceed 3% of the net asset value of the fund or pool fund.
(d) A fund or pool fund shall not purchase securities for controlling or influencing the institution issuing the securities or its management. All fund and pool funds managed by a same domestic institutional investor shall not hold more than 10% of the total outstanding securities with voting right in a same institution. An index fund may be exempted from the above limitation.
When the investment ratio limitation in the preceding paragraph is applied, the total capitalization at home and abroad of a same institution shall be calculated in a consolidated way, complete with the underlying securities represented by the GDR and ADR, with an assumption of the exercise of conversion of the equity warrants held.
(e) The market value of illiquid assets held by a single fund or pool fund shall not exceed 10% of the net value of the fund or pool fund.
The illiquid assets in the preceding paragraph shall refer to the securities that are restricted in trading as provided for by law or the fund contract or pool fund contract and other assets determined by the CSRC.
(f) The total market value of overseas funds held by a single fund or pool fund shall not exceed 10% o the net value of the fund or pool fund. The money market funds (MMF) held may be exempted from the above limitation.
(g) All funds and pool funds managed by a same domestic institutional investor shall not hold more than 20% of the total shares of any single overseas fund.
Where the investment ratio limitation above is exceeded, a fund or pool fund shall take reasonable commercial measures to reduce its position within 30 working days after exceeding the ratio so as to meet the investment ratio limitation.
The CSRC may adjust the investment ratio above on the basis of the development of the securities market or the individual fund or pool fund.

5. Fund of funds (FoF)

(a) The ratio of investment in overseas funds by a single FoF shall not exceed 20% of the net asset value of the FoF. Where an FoF invests in an overseas umbrella fund, this umbrella fund shall be deemed as a single fund.
(b) An FoF shall not invest in the following funds:
(i) Any other FoF;
(ii) A feeder fund; and
(iii) A fund as mentioned in (i) or (ii) above as a sub-fund of an umbrella fund.
(c) The above provisions shall apply, by analogy, to a pool fund mainly investing in funds.

6. Investment in financial derivatives

A fund or pool fund shall invest in derivatives only for the purpose of avoiding risks by portfolio or effective management, not for speculation or margin transactions, and shall meanwhile strictly comply with the following provisions:

(a) The gross derivatives exposure of a single fund or pool fund shall not be higher than 100% of the net asset value of the fund or pool fund.
(b) The total amount of the initial margin for investment in futures, the option premiums for investment in options or charged to and the initial fees for investment in OTC derivatives paid by a single fund or pool fund shall not be higher than 10% of the net asset value of the fund or pool fund.
(c) The investment in forwards, swaps and other OTC financial derivatives by a fund or pool fund shall satisfy the following requirements:
(i) All transaction counterparties (other than a Chinese–funded commercial bank) shall have a rating not lower than that made by a credit rating institution accredited by the CSRC.
(ii) The transaction counterparty shall value the transaction at least each working day, and the fund or pool fund may, at any time, terminate the transaction at a faire value.
(iii) The market-to-market exposure of any transaction counterparty shall not exceed 20% of the fund or pool fund.
(d) Where a fund or pool fund plans to invest in derivatives, the domestic institutional investor in the application for the fundraising of the product shall submit to the CSRC the risk management flow, the proposed combination for risk avoidance and the effective management strategies for the investment in derivatives by the fund or pool fund.
(e) The domestic institutional investor shall submit to the CSRC an annual report covering the derivatives position and risk analysis within 60 working days after the end of each fiscal year of a fund or pool fund.
(f) A fund or pool fund shall not directly invest in the derivatives related to commodities in kind.

7. A fund or pool fund managed by a domestic institutional investor may participate in the securities lending transactions, and shall comply with the following provisions:

(a) All transaction counterparties (other than a Chinese-funded commercial bank) shall have a rating made by a credit rating institution accredited by the CSRC.
(b) The market-to-market system shall be adopted in adjustment to ensure the market value of collaterals is not lower than 102% of the market value of the lent securities.
(c) The borrower shall timely pay the fund or pool fund all dividends, interest and bonuses accruing on the lent securities within the transaction period. Once the borrower defaults, the fund or pool fund is entitled to retain and dispose of the collaterals to meet the needs for claiming damages according to the agreement and relevant laws.
(d) Except as otherwise provided for by the CSRC, the collaterals may be the following financial instruments or varieties:
(i) Cash;
(ii) Certificate of deposit;
(iii) Commercial paper;
(iv) Government bond; and
(v) Irrevocable L/C issued by a Chinese-funded commercial bank or an overseas financial institution with a rating not lower than that made by a credit rating institution accredited by the CSRC (but not as a transaction counterparty or any of its affiliates).
(e) A fund or pool fund shall be entitled to terminate securities lending transactions at any time, and require the return of any and all lent securities within such a reasonable period as a normal market practice.
(f) A domestic institutional investor shall assume the relevant liability for any loss arising out of the participation in a securities lending transaction by a fund or pool fund.

8. A fund or pool fund managed by a domestic institutional investor may participate in the repurchase and reverse repurchase transactions according to normal market practices, and shall comply with the following provisions:

(a) All counterparties participating in a repurchase transaction (other than a Chinese-funded commercial bank) shall have a rating made by a credit rating institution accredited by the CSRC.
(b) For the participation in a repurchase transaction, the market-to-market system shall be adopted in adjustment to ensure the cash not lower than 102% of the market value of the sold securities. Once the purchaser defaults, the fund or pool fund is entitled to retain and dispose of the proceeds from sales to meet the needs for claiming damages according to the agreement and relevant laws.
(c) The purchaser shall timely pay the fund or pool fund all the dividends, interest and bonuses accruing on the sold securities within the period of a repurchase transaction.
(d) For the participation in a reverse repurchase transaction, the market-to-market system shall be adopted in the adjustment of the purchased securities to ensure the market value of the purchased securities not lower than 102% of the cash paid. Once the seller defaults, the fund or pool fund is entitled to retain and dispose of the purchased securities to meet the needs for claiming damages according to the agreement and relevant laws.
(e) A domestic institutional investor shall assume the relevant liability for any loss arising out of the participation in a securities repurchase or reverse repurchase transaction by a fund or pool fund.

9. Where a fund or pool fund participates in a securities lending or repurchase transaction, the total market value of all lent securities but not returned or the total market value of all securities sold but not repurchased shall not exceed 50% of the total assets of the fund or pool fund.

In the calculation of the ratio limitation in the preceding paragraph, the collaterals and cash held as a result of participation in a securities lending or repurchase transaction shall not be included in the total assets of the fund or pool fund.

10. Where a fund or pool fund participates in a securities lending, repurchase or reverse repurchase transaction, the domestic institutional investor shall establish, as required, the appropriate internal control system, operating procedures and archival management.

VI. Calculation of fees and costs and the net value

1. An FoF shall make reasonable arrangements on the management rates and sales costs. Where an investment advisor is engaged, the investment advisory fee may be expended from the fund assets.

2. The net share value of a fund or pool fund shall be calculated and disclosed at least once a week, and shall be calculated and disclosed every working day if the fund or pool fund invests in derivatives.

3. The net share value of a fund or pool fund shall be disclosed within 2 working days after the valuation date.

4. The net share value of a fund or pool fund shall be calculated and disclosed separately or concurrently in Renminbi or a principal foreign currency such as U.S. dollar.

5. Each transaction of purchase or sale of any asset of a fund or pool fund shall be reflected in the calculation of the most recent net share value.

6. The securities that are restricted in liquidity may be valued by referring to the international accounting principles.

7. The derivatives may be valued by analogy to the international accounting principles.

8. A domestic institutional investor shall reasonably determine the time of choosing the asset price of an open-ended fund, which shall be stated in the prospectus and the fund contract.

9. The specific methods for the calculation of the net value and purchase and redemption prices of an open-ended fund or pool fund shall be stated in the fund or pool fund contract and the prospectus, and the digit number behind the decimal point shall be defined.

10. Within 10 working days as after accepting a holder’s valid application for redemption, a domestic institutional investor shall pay for the redemption, except as otherwise provided for by the CSRC.

11. The ratio of cash or government bonds held by a fund may be agreed on in a fund contract, and the special variety as approved by the CSRC may be exempted from the ratio limitation in Article 28 of the Rules on the Operation and Management of Securities Investment Funds.

12. The times and ratios of distribution of fund profits each year shall be agreed on in an open-ended or close-ended fund contract. The distribution of fund profits may be exempted from the limitation in Article 35 of the Rules on the Operation and Management of Securities Investment Funds, except as otherwise provided for by the CSRC.

VII. Information disclosure

The disclosure of fund information shall strictly comply with the relevant provisions and satisfy the following requirements:

1. The information may be disclosed concurrently in Chinese and English, and the Chinese version shall prevail.

2. The net value and related information may be calculated and disclosed in Renminbi or a principal foreign currency such as U.S. dollar. Where a conversion of currencies is involved, the source of the exchange rate shall be disclosed, and the rate consistency shall be maintained. In the case of any change, the change and the reasons for the change shall be disclosed. The exchange rate of Renminbi to a principal foreign currency shall be the central parity rate of Renminbi published by the People’s Bank of China or its authorized body on the last valuation date at the end of the term report.

3. A domestic institutional investor shall disclose any engaged investment advisor in the prospectus, including but not limited to: the name, registered address, office address, legal representative, date of formation, asset management scale in the most recent fiscal year, principal contact persons and their telephone and fax numbers and E-mail addresses, and introductions to the educational backgrounds, work experiences and professional qualifications and titles of the principal persons in charge, of the investment advisor.

4. Where a principal person in charge of a domestic institutional investor or investment advisor changes during the operation of a fund, the domestic institutional investor deeming that such a change is likely to have a material effect on the fund investment shall timely announce it and state it in an updated prospectus.

5. A custodian engaging an overseas custodian shall publish the information on the overseas custodian in the prospectus, including at least: the name, registered address, office address, legal representative, date of formation, paid-up capital in the most recent fiscal year, scale of custodial asset, credit rating, etc.

6. A fund investing in financial derivatives shall state, in detail, the proposed varieties of derivatives to be invested in and their basic features, proposed combinations for risk avoidance, and effective management strategies and the manners and frequencies for adopting such strategies in the fund contract and prospectus.

7. A fund investing in overseas funds shall disclose the rate arrangements between the fund and the overseas funds.

8. A fund participating in the securities lending, repurchase and/or reverse repurchase transactions shall make disclosure in the fund contract and prospectus according to relevant provisions.

9.A fund shall disclose the following risks likely to arise from investment in an overseas market in the prospectus: overseas market risks, government control risks, political risks, liquidity risks, exchange rate risks, derivative product risks, operating risks, accounting risks, tax risks, trade clearing risks, legal risks, financial model risks, securities lending/repurchase/reverse repurchase risks, risks on small market value/newly emerging market/ high and new technology company stocks, credit risks, interest rate risks, primary product risks, block trade risks, etc. The disclosure shall also include the definitions, characteristics and possible consequences of the risks above.

10. A fund shall disclose the guidelines, procedures and document keeping for the voting by proxy according to the relevant provisions.

11. A fund shall calculate and present its investment performance according to the Global Investment Performance Standards (GIPS).

12. The information on a pool fund shall be disclosed by analogy to the above provisions.

VIII. An investment advisor carrying out the related business activities within China shall comply with the relevant Chinese laws and administrative regulations and provisions.

IX. The sub-funds of an umbrella fund shall comply with the provisions of the Pilot Rules and this Notice.

X. This notice shall be effective as of July 5, 2007.

Annexes:
I. Form of Basic Information on an Investment Advisor (omitted)
II. International Financial Organizations Accredited by the CSRC (omitted)
III. Countries or Regions That Have Signed a Memorandum of Understanding on the Bilateral Regulatory Cooperation with the CSRC (omitted)
IV. Overseas Exchanges Accredited by the CSRC (omitted)
V. Ratings Made by a Credit Rating Institution Accredited by the CSRC (omitted)



June 18, 2007

Trial Measures for the Administration of Overseas Securities Investment by Qualified Domestic Institutional Investors

Promulgation date:    06-18-2007    Department:    China Securities Regulatory Commission
Effective date:    07-05-2007    Subject:    Securities
Order of China Securities Regulatory Commission


The Trial Measures for the Administration of Overseas Securities Investment by Qualified Domestic Institutional Investors, which were deliberated and adopted at the 27th chairmen’s utive meeting of China Securities Regulatory Commission on April 30, 2007, are hereby promulgated and shall come into force as of July 5, 2007.

Chairman of China Securities Regulatory Commission Shang Fulin
June 18, 2007

Trial Measures for the Administration of Overseas Securities Investment by Qualified Domestic Institutional Investors

Chapter I General Principles
Article 1 These Measures are formulated according to the Law on Securities Investment Funds, the Securities Law and other relevant laws and administrative regulations for the purpose of regulating the overseas securities investment by qualified domestic institutional investors and protecting the legitimate rights and interests of investors.

Article 2 The “qualified domestic institutional investors” (hereinafter referred to as the QDII) as mentioned in these Measures refers to domestic fund management companies, securities companies and other securities institutions that conform to the requirements as set down in these Measures, raise funds within the territory of the People’s Republic of China upon approval of China Securities Regulatory Commission (CSRC), and carry out overseas securities investment management in the form of portfolio by using part or all of the funds it has raised.

Article 3 In case a QDII engages in the business of overseas securities investment, it shall entrust a domestic commercial bank to take charge of asset custody, and entrust a foreign securities service institution for buying and selling securities.

Article 4 The CSRC and the State Administration of Foreign Exchange (SAFE) shall implement supervision and administration of the overseas securities investment by QDIIs.

Chapter II Qualification Requirements of QDIIs, and Examination and Approval Procedures
Article 5 To apply for the QDII qualification, an applicant shall meet the following requirements:
1. It has a stable source of finance and a good credit status, and its assets scale and operating life, etc. meet the requirements as set down by the CSRC;
2. It has a qualified staff who has the experiences in overseas investment management;
3. It has a sound governance structure and a perfect internal control system, as well as normalized business conducts;
4. It has not been subjected to any major punishment by the regulatory organ for the recent three years, and has nothing important being investigated by the judicial organ or the regulatory organ; and
5. Other requirements determined by the CSRC according to the principle of prudent supervision.

Article 6 The requirement as mentioned in Article 5 (1) means that:
1. For a fund management company: its net asset is no less than 0.2 billion yuan, it has engaged in the management of securities investment funds (hereinafter referred to as the fund) for no less than two years, and its asset management scale at the end of the latest quarter is no less than 20 billion yuan or the foreign exchange assets in an equivalent value;

2. For a securities company: all of its risk control indicators conform to the prescribed standards, its net capital is no less than 0.8 billion yuan; the proportion of its net capital to its net assets is no less than 70%, it has engaged in the business of asset pool management plans (hereinafter referred to as the pool plan) for one year or more, and its asset management scale at the end of the latest quarter is no less than 2 billion yuan of assets or the foreign exchange assets in an equivalent value.

Article 7 The requirement as mentioned in Article 5 (2) means that: an applicant shall have one or more medium-level manager(s) owning the investment management experiences in the overseas securities market for five years or more as well as a pertinent qualification, and shall have three or more staff members owning the investment management experiences in the overseas securities market for three years or more.

Article 8 To apply for the QDII qualification, an applicant shall submit the following documents (one original and one duplicate thereof) to the CSRC:
1. an application form;
2. a certification document prescribed in Article 5 of these Measures; and
3. other documents as required by the CSRC.

Article 9 The CSRC shall, after receipt of a complete set of qualification application documents, examine such application documents, and make a decision of approval or disapproval. In the case of approval, the CSRC shall issue a licensing document for overseas securities investment business; and in the case of disapproval, the CSRC shall notify the decision to the applicant in written form.

Article 10 An applicant may, after obtaining the QDII qualification, submit the documents for a product raising application to the CSRC.

Article 11 The CSRC shall, after receipt of a complete set of the documents for a product raising application, examine the application materials, make a decision of approval or disapproval, and notify the applicant of the decision in the written form.

Article 12 A QDII shall apply to the SAFE for the foreign exchange business qualification according to legal provisions.

Chapter III Overseas Investment Advisor
Article 13 The “overseas investment advisor” (hereinafter referred to as “investment advisors”) as mentioned in these Measures refers to those overseas financial institutions that conform to the requirements as set down in these Measures, and provide suggestions for buying and selling securities or provide the management service of investment portfolio, etc. with regard to the overseas securities investment to QDIIs according to the contract, and obtain proceeds therefrom.

Article 14 A QDII may entrust an investment advisor consistent with the following requirements for the overseas securities investment:
1. It is established abroad, and engages in the investment management business upon approval of the regulatory organ of its country or region;
2. The regulatory organ of its country or region has concluded a memorandum of understanding on bilateral supervisory cooperation with the CSRC, and keeps an effective supervisory cooperation with each other;
3. It has engaged in the investment management business for five years or more, and the securities assets under its management for the latest accounting year is no less than 10 billion USD or the equivalent value in a foreign currency; and
4. It has a sound governance structure, a perfect internal control system, as well as normalized business conducts; and it has not been subjected to any major punishment by the regulatory organ of its country or region and has no major matter that is being put on files of or investigated by the judicial organ or the regulatory organ for the recent five years.

In case a branch established abroad by a domestic securities company acts as an investment advisor, it shall not be restricted by Item 3 of the preceding paragraph.

Article 15 A QDII shall assume the fiduciary responsibility, and perform the obligation of fidelity surveys in the selection or authorization of an investment advisor.

Article 16 An investment advisor shall scrupulously abide by the laws and regulations of our country, the fund contract or the asset pool management contract, and always put the interests of the fund or pool plan holders at the first place, put forward suggestions on a reasonable basis, seek for the best transactions of the fund or pool plan, treat all clients fairly and objectively, always implement the investment decisions according to the investment purposes, strategies, policies, guidelines and restrictions of the fund or pool plan, fully disclose all the important facts involving the conflict of interests, and respect the confidentiality of clients’ information.

Article 17 In case a QDII entrusts an investment advisor to make investment decisions, it shall clarify in the agreement that the investment advisor shall assume corresponding liabilities for any property loss caused due to its omission, negligence and failure to perform duties, etc.

Chapter IV Asset Custody
Article 18 When a QDII engages in the overseas securities investment business, there shall be a bank with a securities investment fund custody qualification (hereinafter referred to as the custodian) to take charge of the asset custody.

Article 19 A custodian may entrust an overseas asset custodian meeting the following requirements to take charge of the overseas asset custody business:
1. It is established in a country or region outside the territory of China, and is subject to the supervision of the local government, financial or securities regulatory organ;
2. It has 1 billion USD or more of paid-in capital or the equivalent value in a foreign currency in the latest accounting year, or its scale of custody assets is no less than 100 billion USD or the equivalent value in a foreign currency;
3. It has sufficient full-time staff members familiar with the overseas custody business;
4. It has the conditions for safe keeping of assets;
5. It is able to make settlement and delivery in a safe and highly efficient way; and
6. It has not been subjected to any major punishment by the regulatory organ and has nothing important being investigated by the judicial organ or the regulatory organ for the recent three years.

Article 20 A custodian shall perform the following duties for the trustee according to the relevant laws and regulations:
1. Protecting the holders’ interests, implementing supervision over the daily investment as well as the outward and inward remittance of capital for a fund or pool plan according to legal provisions, and timely report to the CSRC and the SAFE if finding any illegal or irregular investment directive, outward or inward remittance of capital;
2. Safely protecting the property of a fund or pool plan, promptly notifying the information about the company’s behaviors to the QDII, and ensuring that proper incomes could be timely obtained for the fund or pool plan;
3. Ensuring that the fund or pool plan is managed according to pertinent laws, regulations, as well as the investment targets and restrictions as stipulated in the fund contract or the asset pool management contract;
4. Implementing the directives of the QDII or the investment advisor, and timely making settlement and delivery according to pertinent laws, regulations as well as the fund contract or the asset pool management contract;
5. Ensuring that the net value of the fund or pool plan units is calculated according to the methods as set down in pertinent laws, regulations, as well as the fund contract or the asset pool management contract;
6. Ensuring that the fund or pool plan is applied for, subscribed or redeemed, etc. according to pertinent laws, regulations, as well as the fund contract or the asset pool management contract;
7. Ensuring that the proceeds distribution scheme for a fund or pool plan is determined and implemented according to pertinent laws, regulations, as well as the fund contract or the asset pool management contract;
8. Registering the assets in the name of the custodian or the designated agent according to pertinent laws, regulations, as well as the fund contract or the asset pool management contract;
9. Reporting the conditions about the overseas investment of the QDII to the CSRC and the SAFE within 7 working days after conclusion of each month, and reporting the balance of payments according to legal provisions; and
10. Other responsibilities determined by the CSRC or the SAFE according to the principle of prudent supervision.

Article 21 As for the overseas assets of a fund or pool plan, a custodian may entrust an overseas custodian to perform the duty for the trustee on its behalf. In case the overseas custodian causes any loss to the assets of a fund or pool plan due to its fault or negligence, etc. during the process of performing duties, the custodian shall assume corresponding liabilities.

Article 22 A custodian shall perform the following custody responsibilities according to pertinent laws and regulations:
1. Safely keeping the assets of a fund and pool plan, and opening a capital account and a securities account;
2. Engaging in the settlement, sales, collection and payment of foreign exchange as well as the Renminbi settlement business for the QDII;
3. Keeping the relevant materials about outward remittance, inward remittance, conversion of capital, the collection and payment of foreign exchange, capital flows, authorization and transaction records of the QDII for no less than 20 years; and
4. Other responsibilities determined by the CSRC or the SAFE according to the principle of prudent supervision.

Article 23 A custodian or overseas custodian shall separate its own assets completely from the assets under the management of the QDII.

Chapter V Capital Raising, Investment Operation and Information Disclosure
Article 24 A fund management company that has obtained the QDII qualification may raise the capital by publicly selling fund units according to relevant laws and regulations, and invest fund assets in the overseas securities market. To apply for raising a fund, a fund management company shall submit the application materials according to relevant laws and regulations.

Article 25 A securities company that has obtained the QDII qualification may raise the capital by establishing a pool plan, etc., and invest the capital it raised in the overseas securities market. For the establishment of a pool plan, a securities company shall submit the application materials according to legal provisions, raise the capital and make the investment.

Article 26 Relevant investment performance comparison benchmarks shall be selected for a fund for which a raising application is filed.

Article 27 A fund or pool plan shall be used to invest in the financial products or tools prescribed by the CSRC.

Article 28 A fund or pool plan shall abide by the provisions on the proportion of investment.

Article 29 To select or entrust an overseas securities service institution for buying and selling securities, a QDII or investment advisor shall rigidly perform the fiduciary responsibility, and manage the procedures of investment transactions, the information disclosure and the preservation of records according to legal provisions.

Article 30 The securities trading and the research service arrangement among a QDII, an investment advisor and an overseas securities service institution shall be carried out according to the following principles:
1. The trading commissions are the property of the holders of a fund or pool plan; and
2. The QDII and the investment advisor shall be responsible for the trading quality on behalf of holders, and such responsibilities include, but not limited to:
a. seeking for the best trading for implementation;
b. seeking the minimized trading costs; and
c. using the trading commissions of holders for their benefits.

Article 31 For the overseas securities investment, a QDII shall abide by the relevant laws and regulations formulated by the local regulatory organ and the local stock exchange.

Article 32 The QDII, the custodian and other people with the obligation to make information disclosure shall disclose the information in strict accordance with pertinent laws and regulations.

Chapter VI Quota and Capital Management
Article 33 A QDII shall set reasonable upper limits of the quota and the scale in the raising scheme according to the market conditions and the characteristics of the product, report them to the SAFE for archival filing, and go through pertinent formalities at the SAFE according to legal provisions. The quota or scale within the extension of a fund or pool plan shall be managed according to legal provisions.

Article 34 A QDII shall open a custody account at the custodian for the custody of all the assets of a fund or pool plan.

Article 35 A custodian shall open a settlement account and a securities custody account for a fund or pool plan, and use it for the capital settlement business and the securities custody business with the securities depository and clearing institution, etc.

Article 36 The incomes and expenses of a custody account, settlement account or securities custody account shall conform to legal provisions, and the capital in such accounts shall not be lent to anyone else or be used for security purposes.

Article 37 A QDII shall regularly report the use of its quota as well as the outward and inward remittance of capital to the SAFE.

Chapter VII Supervision and Administration
Article 38 The CSRC and the SAFE may request the QDII and the custodian to submit the relevant materials about the overseas investment activities of QDIIs; and may carry out on-site inspections if necessary.

Article 39 In case a QDII is under any of the following circumstances, it shall give a report to the CSRC for archival filing and make an announcement within 5 working days upon occurrence of such a circumstance:
1. change of the custodian or overseas custodian;
2. change of the investment advisor;
3. a lawsuit or any other major event abroad; or
4. any other circumstance as prescribed by the CSRC.

In the case of changing the custodian or overseas custodian, a QDII shall also make a report to the SAFE for archival filing.

Article 40 In case a QDII is under any of the following circumstances, it shall apply for the qualification of overseas securities investment business again within 60 working days upon occurrence of such a circumstance, and apply to the SAFE for the foreign exchange business qualification again and go through the formality for archival filing of the investment quota:
1. change of its name;
2. takeover by another institution; or
3. any other circumstance as prescribed by the CSRC or the SAFE.

Article 41 In case a QDII commits any major illegal or irregular act when making the securities investment by using the property of a fund or pool plan, the CSRC may adopt the measure of restricting its trading, and the SAFE may adopt the measure of restricting its outward remittance and inward remittance of capital, etc.

Article 42 In case a custodian commits any serious illegal or irregular act, the CSRC may make a decision of restricting its custody business.

Article 43 In case a QDII or custodian violates these Measures, it may be imposed on a corresponding administrative sanction by the CSRC or the SAFE.

Chapter VIII Supplementary Provisions
Article 44 The investment in financial products or instruments of the Hong Kong Special Administrative Region or Macao Special Administrative Region by QDIIs shall be governed by these Measures by analogy.

Article 45 The targeted raising of capital or the acceptance of targeted objects’ asset authorization for the investment in the overseas securities market by a fund management company that has obtained the QDII qualification shall be governed by these Measures by analogy.

Article 46 The directional asset management, specialized asset management business or the capital investment in the overseas securities market by a securities company that has obtained the QDII qualification shall be governed by these Measures by analogy.

Article 47 These Measures shall come into force as of July 5, 2007.

Questions About Securities Law
Q: What are securities?

A: Securities are investment vehicles like stocks, mutual funds and bonds. As securities, they reflect investments by various individuals and entities in a common enterprise, like a corporation, made with the expectation of deriving a profit. For example, a stock represents a share, or percentage, in a corporation's profits and assets. By purchasing stock an investor is buying a percentage of ownership in a company. If the corporation makes higher profits, the value of its securities will increase and the value of a stock will increase. Shareholders make money by selling their shares of stocks at a price higher than the price when they purchased the stock. When a corporation loses money the value of the investor's shares will decrease.



Q: What is securities fraud?

A: Securities fraud occurs when an individual or entity acts in an attempt to illegally manipulate the investment market. Securities fraud may be committed by broker/dealers, financial advisor/analysts, corporations, and private investors. Renewed concern over securities fraud arose during the recent telecom bust. Investors lost millions on Internet companies that had gone from being highly rated and seemingly secure to bankrupt in a phenomenally short period of time.



Q: Who commits securities fraud?

A: Securities fraud may be committed by:

Brokers-dealers (misleading clients or advising based on inside information)
Financial advisors or analysts (purposefully offering poor advice or inside information)
Corporations (hiding or distorting information)
Private investors (acting on inside information)



Q: What is a securities class action?

A: A securities class action is a lawsuit that is brought on behalf of a group of investors who lost money because of claimed violations of the securities laws. Often such cases allege a series of false and misleading statements regarding a company's business that caused the company's stock to trade at higher prices than it otherwise would have. In other words, investors never would have paid as much as they did for the stock if they had known the truth about the company's business. Typically, it is more efficient for investors to pursue their claims as part of a class, rather than pursuing an individual claim.



Q: What are the benefits of a class action?

A: A securities class action provides small shareholders with the ability to litigate on an equal playing field with the large, well-funded corporations who have allegedly violated the securities laws and have a lot of money to spend on defending lawsuits directed at those violations. A class action allows many people who would never have brought an individual action against a company to seek recovery from the company without having to individually retain a lawyer and incur a legal fee.



Q: How do I know if I have a securities claim?

A: If you purchased a publicly-traded security that declined in value after a significant negative disclosure about the company, you might have a claim.



Q: What should I do if I have believe I have a securities claim?

A: If you or someone you love has been the victim of securities fraud or other securities wrongdoings, you should contact a lawyer who has experience representing investors. An attorney who understands securities law will not only inform you of your rights as an investor, but also help to recover some, if not all, of what you lost.



Q: How long does securities class action litigation take?

A: A class action typically takes anywhere from one to four years to resolve. This is only a generalization of course. Some cases, if brought to trial followed by appeals, can last longer.



Q: What is securities arbitration?

A: 1987, the U.S. Supreme Court held that brokerage firms could enforce pre-dispute arbitration clauses contained in their standard form customer agreements. Virtually all brokerage firms' customer agreement forms now contain arbitration clauses. As a result, most disputes between brokerage firms and customers are arbitrated. Arbitration is a private dispute resolution process in which three arbitrators are appointed to decide the merits of a case. In an arbitration, the parties are typically represented by counsel and present evidence through testimony and documents like in a court proceeding.



Q: What is corporate fraud?

A: When a corporation deliberately conceals or skews information to appear healthy and successful before shareholders, it has committed corporate or shareholder fraud. Corporate fraud may involve a few individuals or many, depending on the extent to which employees are informed of their company's financial practices. Directors of corporations may fudge financial records or disguise inappropriate spending. Fraud committed by corporations can be devastating, not only for outside investors who have made share purchases based on false information, but also for employees.