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Sina Corporation.

Sina Corporation.

Sina Corporation is an online media company targeting the global Chinese community. Founded in 1998 and headquartered in Shanghai, it is publicly traded in the US on NASDAQ where it IPO`d in 2000. It operates some of the most popular web portals and social media sites in China which feature targeted content. Users browse most content for free, and the company monetizes its readership by selling advertisements similar to traditional media formats. Historically, the company’s web portals have been the most important channel for reaching users, but its social media platform, Weibo, continues to gain in significance for the company following its launch in late 2009.

 

 

The company sells advertisements, which constitutes about 80% of its revenue, on its web portals (please click here to see it’s various portals) and social media properties. Sina operates multiple portal sites for audiences in different places (mainland China, Taiwan, Hong Kong, etc), featuring a wide range of content. The mix of content enables the company to offer advertising clients placement in specific areas of interest (sports or finance, luxury etc) to reach their target audience. The majority of Sina’s advertising business is brand advertising, which focuses on building a brand opposed to influencing an immediate purchasing decision.

 

Pricing for advertising can vary based on the portal property, as well as which channel (sports, auto, finance, news, entertainment, etc.) the advertiser chooses. Examples of pricing are shown below (taken from the 2014 advertising rate card

·         Homepage banner (top of page, 1000x90 pixels, all 5 slots): 450,000 RMB per    day (or 100 RMB per CPM/day)

·         Homepage banner (top of page, 1000x90 pixels, first slot in rotation): 430,000   RMB per day

·         Homepage button (near top of page, 240x350 pixels): 450,000 RMB per day

·         Fashion page button (marriage section, 300x200 pixels): 15,000 RMB per day

·         Homepage text links (near autos section): 180,000 RMB per day

·         Sina news page text link (near society news, right side): 12,000 RMB per day

Major revenue streams are from customers in the automotive, fast-moving consumer goods, Internet services, financial services, IT and telecommunication industries. The company suggested that its target customers are multinationals and large domestic companies looking to build their brand within China.

 

The company’s non-advertising business includes Mobile Value Added Services, Weibo Value Added Services, online games, and other fee-based services the company provides.

 

Current company information and investor news is available via its English homepage found here

Coming to a bank near you: globalization...

Coming to a bank near you: globalization of the Renminbi.

It`s simply a question of when the renminbi (RMB) will become a global currency rather than if. The Internationalization of the RMB is an inevitable progression for an international economic power such as China. Its currency, which is still carefully managed by the government, has a market share well behind the US dollar and the euro and currently barely traded on foreign exchange markets. But volumes are climbing steadily and all the signs point towards the RMB gaining greater stature as a stable reserve currency of choice.
 

 


Late last year, as the world’s largest exporter and manufacturer, the RMB overtook the euro to become the second most used currency in global trade finance after the dollar, according to the Society for Worldwide Interbank Financial Telecommunication. And it also became the ninth most traded international currency.


China’s tight control on the nation’s capital account: the flow of funds both in and out of the country, seems to be the only outstanding issue in the RMB`s rise. Whilst international trade goes some way in redressing the balance, China needs a more efficient and most importantly, transparent, financial market.


The currencies of countries that play a major role in world trade have tended to become reserve currencies, i.e. held in significant quantities by national banks to protect nations against currency fluctuations. Central banks are now beginning to hold part of their foreign exchange reserves in RMB, albeit in small amounts, and the People’s Bank of China has set up 24 arrangements with international counterparts to allow it to swap the RMB in exchange for their own currencies.


China has begun to loosen its control over its financial markets and gradually open up access to its onshore markets. In 2007, the Chinese government began issuing RMB-denominated notes, bonds and funds, known as “dim sum bonds,” in Hong Kong. Since 2009, companies in Mainland China have been able to complete cross-border trade in RMB which allows companies to reduce transaction costs, better manage foreign exchange risks and speed up payments.


The reduced influence of the US dollar and diversification of currency reserves are key, if we are not to see a repeat of the 2008 financial crisis hit Asian Central banks again. More choices in international reserve currencies provide greater checks and balances to the international financial system worldwide.


While there are obvious benefits from the RMB challenging the dollar’s dominance, there are also numerous risks, predominantly the ability of Chinese policymakers to have total control of the economy, as has been the case for the last 30 years.  Secondly currency fluctuations can impinge significantly on China export sector which is already suffering from higher labour cost.


Countries are going to need to be able to trade in something besides dollars. It simply makes sense that if a large proportion of an emerging-market country's trade is with China, it should do its trades in RMB. However the key is stability in monetary policy and China`s need to make its currency reserves work on the international stage.

 

China Greentech report 2014.

China Greentech report 2014.

The China Greentech Initiative (CGTI) has now released its 2014 report.  Greener, Smarter, More Productive, the fifth in a series that was first launched at the World Economic Forum in 2009.

       


Increased awareness in China of the need to tackle pollution and improve the quality of life in Chinese cities is driving some significant changes in policy. The Report contends that to maintain a national GDP growth target of 7.5% through 2014, Chinese economic policy must be accompanied by an equally resolute vision for cleaner growth. Building on the new approach outlined in last year’s report, the latest edition offers a path forward for China to adopt a greener, smarter and more productive model of development.

The 2014 report asserts that there is a profound opportunity for leading companies to integrate their products and services to customize replicable solutions for China’s project owners and governments in the areas of industrial efficiency, distributed energy, greener buildings and cleaner mobility.

Since the release of the first report, China has emerged as an innovative driver of greentech industry development; and is fast becoming a hub for more productive practices and implementation that can be profitably adopted by global industry stakeholders. The report outlines ambitious new central and local government plans for pollution reduction; and highlights how forward-thinking companies can use innovative technologies, best practices, and global collaboration models to accelerate China's sustainable growth.

 

Please click here to downlaod the report as a PDF.

Performing due diligence on Chinese...

Performing due diligence on Chinese Companies.

Irrespective of where you are in the world and who you are about to do business with, due diligence is essential to protect yourself. In China things can be a little more difficult due to language issues and access to information but not impossible. Here is our checklist of things to do based on 20 years of doing business here.

  1. Ask for a copy of the company’s business license, this provides the most basic of information relating to the company:  Official company name, date of formation, business scope and name of business owner.

 

  1. If possible, check with local State Administration for Industry and Commerce (SAIC) on the legitimacy of the business details you have been provided.

 

  1. Points to notice on the license would be: Is the business scope in keeping with the type of business you will be conducting? Is the registered capital in keeping with the business you will be conducting: typically a Consulting company might have just 100,000 rmb in registered capital, whilst with a manufacturing company you would expect a few million rmb.

 

  1. Who is the person you are talking with? Is he using a company email or a personal one. Whilst it is not uncommon for legitimate people to be using  personal emails such as xxx@126.com or xxx@shou.com it should make you a little more cautious as to who they really are. Consider if you dealing with an official company representative or a middleman/broker? Does my contact have binding legal authority over the company?

 

  1. Take a look at the company website. Compare the information that is available on their English to their Chinese language site, and note any discrepancies you may find. See where the company is located, dose this match up with the registration address. If not it`s worth asking a few more questions.

 

  1. If your being asked to make a payment, is it to a Personal bank account with somebody`s name or to the official Company account with the company name? Whilst it is not unusual to use personal accounts in China to mitigate tax, ask to be given the company Bank details just as a further check on legitimacy. Further all Chinese companies should be able to provide you with a official Chinese Invoice issued by the Tax administration (not a Invoice printed on a company letterhead), if they say they are unable to it would be for one of 2 reasons: they are mitigating tax (in which case you may negotiate) or simply they are unable to since they are not tax registered.

 

  1. With a manufacturer do they have a quality control system in place? Do they have an international quality accreditation? If so, ask for a copy and check with the authorization organization. It is also worth checking the company against:

The International Suppliers Blacklist:

Trademark Office of the SAIC

State Intellectual Property Office

 

  1. Depending on the amount of money involved in your transaction:

Consider hiring a verification company to pay a visit to your Chinese supplier. Commonly 30% is usually acceptable as a retainer and the balance, 70%, with the B/L.  Also consider other ways to pay such as Letter of credit, to reduce the risk.

 

In the case of any dispute, a written procedure for Arbitration (either in China or elsewhere) instead of the Chinese Courts is always preferable: it will save you lots of money and time.

 

  1. Lastly consider the time spent at meetings and banquets as part of the process. You might think this is laborious, but the Chinese are using this time to establish whether you will make a suitable and trustworthy partner and whether they want to enter into a long-term business relationship with you. It is wise to be doing the same.

 

Whilst the realities of doing business with China can seem daunting they are not insurmountable. Do not presume anything, but do ask for information and proof. Again if your not comfortable with anything, ask and always use your instinct.

Insurance companies of China

Insurance companies of China

Having experienced rapid expansion and growth over the last decade the industry as a whole is still considered to be in its infancy even with a compound annual growth rate of 28-30% for the 2009-2013 period. FDI has played a major role in the development of the industry accounting for about half of the companies currently operating in the mainland. The market is mainly focused on two segments: auto and commercial property insurance however health insurance is becoming significantly more widespread along with emerging non-life insurance products like product liability, credit and marine insurance etc. Currently, auto insurance accounts for over 70% of the premium in the non-life insurance sector (please click here for KPMG`s latest outlook on auto sector insurance).

 

 

As a whole the industry is investing more in risk segmentation, new distribution, product innovation, and customer services. Sustained growth of the China non-life insurance market will be maintained over the next few years.

 

The list below comprises China`s top 10 Insures:

 

No.1 China Life Insurance Co Ltd

China Life Insurance Co Ltd is the largest life insurer in the People's Republic of China. The company offers individual life insurance, group life, accident insurance, and health insurance policies. China Life commands 45 percent of the market, and holds the number one position in 29 of the country's 31 major markets.

Total Assets: $321.205 billion

 

No.2 Ping An Life Insurance Company of China Ltd

Ping An Life Insurance Company of China, Ltd. is a major subsidiary of Ping An Insurance (Group) Company of China, Ltd. It was established in year 2002. For the past 10 years, Ping An Life has been growing rapidly as China's insurance industry has expanded, achieving a leading position in both scale and service quality. It is now the world's second-biggest life insurer by market value.

Total Assets: $117.795 billion

 

No.3 China Pacific Insurance (Group) Co Ltd

China Pacific Insurance (Group) Co Ltd ("CPIC") is an insurance group basically encompassing by China Pacific Insurance Company, a company established on 13 May 1991. The head office of CPIC is located in Shanghai.

Total Assets: $117.795 billion

 

No.4 New China Life Insurance Co Ltd

New China Life Insurance Co Ltd, headquartered in Beijing and founded in 1996, is an insurance company. The company primarily provides life insurance services. After the company went public in 2011, the total assets of the company reached 565.849 billion yuan.

Total Assets: $92.123 billion

 

No.5 Taikang Life Insurance Co Ltd

Taikang Life Insurance Company Limited is a Beijing-based, China-incorporated life insurance company. It is one of the largest in China and offers services ranging from life insurance to asset management. It was founded in 1996 and has branches in Beijing, Shanghai, Hubei, Shandong, and Guangdong.

Total Assets: $71.879 billion

 

No.6 Sino Life Insurance Co Ltd

Sino Life Insurance Co Ltd, incorporated in 2002, is a nationwide professional life insurance company in China currently headquartered in Shenzhen.

Total Assets: $31.888 billion

 

No.7 Taiping Life Insurance Co Ltd

China Taiping Insurance Group Ltd ("China Taiping") is a Chinese state-owned financial and insurance group whose management headquarters is located in Hong Kong. China Taiping is currently the longest standing national brand in China's insurance industry. It had already become an industry leader in the 1940s after its foundation in Shanghai in 1929.

Total Assets: $31.339 billion

 

No.8 AIA Group Ltd

The business that is now AIA was first established in Shanghai over 90 years ago. It is a market leader in the Asia-Pacific region, except for Japan, based on life insurance premiums, and holds a leading position across the majority of its markets.

Total Assets: $11,223 billion

 

No.9 CCB Life Insurance Co Ltd

CCB Life Insurance Co Ltd, headquartered in Shanghai, is an insurance company and its principle shareholder is China Construction Bank, one of China's major banks.

Total Assets:  $4.281 billion

 

No.10 Manulife-Sinochem Life Insurance Co Ltd

Manulife-Sinochem is a joint venture company between Manulife (International) Limited and Sinochem Finance Co Ltd (a member of the Sinochem Group). It was the first Chinese-foreign joint-venture life insurance company established in China.

Total Assets: $2.081 billion

China Railway Engineering Corporation...

China Railway Engineering Corporation.

China Railway Engineering Corporation (CREC) 中国中铁 is the second largest construction contractor in the world and occupies the 102th place on the Fortune Global 500 list. The Beijing-based SOE, together with its main rival, China Railway Construction Corporation, are of vital importance to the infrastructure expansion plans of China. The Group has 46 subsidiaries, including 28 wholly owned subsidiaries, 15 holding subsidiaries, 4 branch companies and 3 joint venture subsidiaries. CREC's construction teams are found in over 1,000 cities throughout China. In addition to the core business of construction, the company does surveying & design, installation, manufacturing, R&D, technical consulting, capital management as well as international economic and trade activities.

 

  

 

CREC has shown strong financial performance in recent years, as is shown in its financial results below (for its full annual report please click here). The company signed new contracts worth ¥929.6 ($149.2) billion dollars last year (2013), while existing contract revenue was ¥1.38 trillion ($222.3 billion).

 

 

2013

2012

Change %

Revenue

¥540.4($86.7) billion

¥465.6 ($74.7) billion

16.1%

Gross profit

¥40.3 ($6.5) billion

¥35.6 ($5.7) billion

13.4%

Net Profit

¥9.4 ($1.5) billion

¥7.4 ($1.2) billion

26.8%

 

 

Three sources constitute the majority of CREC’s revenue: railways, highways and municipal  construction. Last year the company built 4,843 kilometres of railways, 1,008 kilometres of new highways and 199 kilometres of light railway and subway lines. Notable projects include:

 

 

 

Railway lines

Highways

Municipal works

Nanjing - Hangzhou

Dali – Lijiang

Beijing Subway

Hangzhou - Ningbo

Fengjie – Wuxi

Shenzhen Subway

Tianjin - Qinhuangdao

Kunming – Bangkok

Shanghai Metro

Xiamen - Shenzhen

118 kilometres in Ethiopia

Guangzhou Subway

Addis-Ababa railway

Jiujiang Yangtze River

Shenyang 4th Ring Road

Tbilisi railway

Bristol Grieg cable bridge (Morocco)

Liuzhou Guangya Bridge

 

 

Other business areas in which CERC operates are: engineering equipment manufacturing, surveying, design, consulting, property development and natural resources mining, with the latter two showing the fastest growth.

 

 

Increasingly important, but often overlooked, is the China Railway Resources Group (CRRG), responsible for precious metals, ferrous and non-ferrous metals extraction, as well as logistics and surveying. With a strong focus on mineral extraction, specifically gold, copper, coal, cobalt, silver, nickel, zinc, lead and graphite, the Group has an active presence in Qinghai, Xinjiang, Inner Mongolia and Heilongjiang (where CRRC and Baoan Steel have signed an agreement to cooperate over a graphite mine). International operations in Congo, Australia, Laos and Venezuela (CREC began construction in 2009 of the Anaco-Tinaco railroad, an 800 million USD project to build a 471 km high speed railway line across the country).

Qingdao

Qingdao

A Snapshot

 

Qingdao is one of China's most dynamic, and possibly livable costal cities. An important international trade port located along the western coast of the Pacific Ocean in the south of the Shandong Peninsula, it is a main transportation hub for Northeast Asia. The original port built in 1892, then know as Tsingtao, now connects with 450 ports in 150 countries. The city currently boast numerous development and trade zone including: National Qingdao Economic and Technological Development Zone, Qingdao High and New-Tech Development Zone, Qingdao Qianwan Bonded Port Area, Qingdao Export Processing Zone, Qingdao West Coast Export Processing Zone, Sino-Germany Ecological Park, and Jiaozhou Economic and Technological Development Zone.

 

 

With a population of just under 8 million, Qingdao is also a major National Tourism city, know for it`s restored European buildings, beaches and International Conference venues. The city hosts the China International Consumer Electronics Show (SINOCES), the China International Marine Fair, Qingdao International Fashion Week, and the Qingdao International Beer Festival annually.

 

In recent years, Qingdao has been positively promoting the construction of a blue economic zone (for marine sciences) and a high-end industrial cluster, to build a advanced manufacturing base lead by companies such as Haier and Hisense.

 

Industries:

 

Logistics.

Valued at 412 Billion USD in 2011 the modern logistics industry in Qingdao has developed quickly in recent years: 6 major logistics parks, including Qianwan International Bonded Port. Four logistic centers, including the west coast export processing area, and six distribution centers, including Jiaozhou and Fu’an. Qingdao is now home to over 30 domestic and international logistics companies. Small and medium-sized logistics companies, in particular, are being actively encouraged to strengthen resource integration to meet the demands of national diversified logistics.

 

 

Tourism.

More than 50 million tourists visited Qingdao in 2013 catered to by over 155 star-rated hotels, including the international: Intercontinental, Hyatt, Kempinski, Accor chains. The city is currently focused on developing resort and vacation facilities and accelerating the development of Shi Laoren Resort, Phoenix Island, Langyatai, Tianheng Island, Lingshan Bay and Aoshan Mountain Hot Spring areas.

 

The municipal government is currently implementing plans to expand it`s port facilities to allow the city to become the `Home Port’ for a domestic cruise industry with an annual capacity of over 1 million passengers. Cruise operator Carnival expects to carry 500,000 Chinese cruise passengers in 2015, up from 350,000 this year.

 

 

Service Outsourcing.

The city currently has 167 outsourcing companies registered, employing around 30,000 university graduates, the largest seven companies accumulated accounting for over $10 million USD in revenue, including Lucent Technologies, Caterpillar, Qingdao Risong, and Unihub.

 

The city's Preferential Policy on Developing Service Outsourcing in Qingdao was launched in 2008, to provide financial support for the service-outsourcing sector. A supplemental policy on Service Outsourcing came out the following year to provide financial incentives to pay income and business taxes. It put more than 40 million RMB into the development of service outsourcing, a major force behind development in the city.

 

The city has a number of service outsourcing parks, with a total area of 1 million square meters, and more than 500 companies focusing on: software development, digital animation, data processing, integrated circuitry design and industrial engineering.

 

 

New Energy Companies.

Currently, there are five companies specializing in producing solar photovoltaic devices in Qingdao: Qingdao GIGA Solar New Energy Co (specializes in producing single crystal silicon, polysilicon, film solar cells and components). Abo New Energy Co. NESI Solar Co (solar film batteries). China Creative Wind Energy Co (on-grid wind power generation apparatus). Shandong Datang Corporation (wind power generation apparatus).

 

 

Established Industries.

Electric appliances- The leading companies, such as Haier, Hisense, and AUCMA are developing quickly and developing support companies so that, now the city has almost 1,000 supporting manufacturers, producing a range of goods.

 

Petrochemicals- As one of China`s major ports a whole range of companies have established industrial facilities in the city including: Sinopec Qingdao Refining & Chemical Co, Anbang Petrochemical, Huanhai Oil Technology, Yellow Sea Rubber Group, Guangming Tire, Huntsman Textile & Dying and BASF Pigment.

 

Automobiles - The city has 20 automobile manufacturers (18 for special models) and 260 spare-parts manufacturers, 82 of them large-scale.

 

Textiles and garments- The textile and garments industry has been evolving from traditional textiles to garments, household textiles, materials for fabric, dying and textile machinery which are all done in large scale production plants.

 

Ship and marine engineering- A ship and marine engineering area has been established on Huang Island at Haixi Bay, and at Jimo and Jiaonan. The Haixi Bay site is a production base for large barges, offshore platforms, low speed diesel machinery, large rollers, decks, ship electrical systems, and water loading. The Jimo and Jiaonan areas are bases for R&D centers for high value-added oil tanks with a 100,000-ton capacity, special ships, high-tech barge equipment, and support products. Companies, such as the China Shipbuilding Industry Corp, Branch Five, CNOOC Offshore Engineering, PetroChina Offshore Engineering, Yangfan Shipbuilding, and Harbin Engineering University research center all have facilities here.

Trademark Law of the PRC.

Trademark Law of the PRC.

China's new Trademark Law has been issued and becomes effective May 1st, 2014. Important changes in the areas of anti-piracy, prosecution, enforcement, well-known mark determination and usage, opposition, and cancellation have been made. Foreign companies and their counsel should be aware of these changes so that rights and interests are not prejudiced and opportunities are not missed.

 



The significant changes include:

 

  • Strengthened protection against piracy.
  • Shortened trademark prosecution times.
  • Sound marks and multiple class trademark applications made available.
  • Strengthened well-known mark protection.
  • Narrowed legal standing for oppositions and invalidation.
  • A mark proceeding to registration if the opposition fails at the first level of adjudication at the Trademark Office.
  • Increased fines, compensation, and statutory damage against infringement.

 

For the full updated atricles of the new law please click here for the PDF.

Is China’s Economy Crashing? The Immin...

Is China’s Economy Crashing? The Imminent Middle Income Trap.

China’s economy might indeed crash. Then again, it might not. Bearishness on China has gone viral. Two years ago, talk was of China’s economy saving the world. Today observers have swung to the opposite extreme, one expressed elegantly by Paul Krugman as “the Chinese model is about to hit its Great Wall, and the only question now is just how bad the crash will be.”

 

 

The following essay was written for the Boao Review by Professor Danny Quah of the LSE where he carefully dissects current predictions that the Chinese economy will either dramatically crash or else become ensnared in the ‘middle income trap’, please click here to open the full PDF.

 

Xining

Xining

Located near the geographical center of China but culturally part of Western China, Xining is the Capital of Qinghai province and at the heart of the governments Go West policy. With a population of about 2.25 million inhabitants about half of whom live in the main four urban areas, it is a prefectural level, third tier city with a GDP per capita of ¥19,494 RMB (US$2,800) in 2008, placing it roughly in the middle of all Chinese cities. Its main industries are currently wool spinning and textiles, fur, high altitude animal husbandry, dairy products, salt extraction & processing, Traditional Tibetan medicines, and light processing industries.

 

Xining has a relatively high percentage of ethnic minorities, the majority being Hui with also a sizeable Tibetan population. It is home to significant religious sites for both Muslims and Buddhists. Xining has a cold, semi-arid climate due to its high altitude.

 

 

Major Economic Indicators (2012)

 

 

Land Area (km2)

    7,665

   Population(million)

    2.25

   GDP (RMB billion)

    85.11

   

GDP Composition

 

          Primary Industry (Agriculture)

    3.66%

          Secondary Industry (Industry & Construction)

    51.64%

          Tertiary Industry (Service)

    44.7%

    GDP Per Capita (RMB)

    38,034

    Unemployment Rate

    3.47%

    Fixed Asset Investment (RMB billion)

    70.05

    Total Import & Export (USD million)

    934.17

          Export (USD million)

    662.14

          Import (USD million)

    272.03

    Sales of Social Consumer Goods (RMB billion)

    31.75

Source: Xining Economic and Social Development Report 2012

 

Xining has seen substantial economic growth over the past few years with 15% growth in GDP in 2012 from a year earlier. It’s GDP makes up nearly half of the total province (45.2% in 2012). In the same year, Xining’s value added industrial output rose 19.5% and foreign trade 14.5% year on year.

 

It is at the center of the so called Silk Road Economic Belt being a hub for both logistics and investment for increased economic ties with Central Asia. Key to this development plan is the currently ongoing Industrial Transfer process where manufacturing in the eastern costal cities are being actively encouraged to re-locate to the area, with a special focus on renewables.

 

   

 

One of the largest development projects in recent years was the Xining Economic and Technological Development Zone, completed in 2010. XETDZ lies in the east of Xining and is the first of its kind at the national level on the Qinghai-Tibet plateau as part of the country’s attempt to further develop the western region. XETDZ focuses on export-oriented industrial projects. It has an area of 12.8 square kilometers with a GDP over 18 billion in 2010.

 

Ferrosilicon, machine tools, bearings and cotton yarn are major exports of Xining. Japan, South Korea and the U.S. are the most important trading partners of the city.

 

The province is rich in natural resources, and current has an economy based on mineral extraction, hydropower, and Highland agro-husbandry. Oil and natural gas from the Chaidamu Basin have also been important contributors to the economy. Underdeveloped infrastructure however has thus far prohibited it from fully capitalizing on these advantages. For the future however, the focus will be very much on “Inclusive and Sustainable’ development revolving around solar, wind, and low-carbon energy projects.

 

Major Companies:

Qinghai Salt Lake Industry Group is a leading producer and distributor of potassium fertilizers. Headquartered in Xining, it posted RMB 5.9 billion in revenues and RMB 1.5 billion in net profits for 2010.

 

West Mining Co is a private company headquartered in Xining. It is engaged in the mining, smelting and trade of zinc, lead, copper and aluminum. It is China’s second-largest producer of lead concentrate. It posted RMB 18.51 billion in revenues and RMB 989.43 million in net profits for 2010. West Mining Co listed its A shares on the Shanghai Stock Exchange in 2007.

 

Xining Special Steel (Group) Co., Ltd. is the largest special steel enterprise in Northwest China with annual output of 400,000 tons. It produces steel bars and reinforced bars and machinery. It posted RMB 7.05 billion in revenues and RMB 233.12 million in net profits for 2010.

 

Qinghai Jinrui Mineral Development Co., Ltd. is principally engaged in the research, development, production, processing and sale of strontium products and castings. It was listed on the Shanghai Stock Exchange in 1996 and has total assets worth over 1.3 billion as of 2012.

 

Xining New Energy Development Co., Ltd. is a high-tech and joint stocking enterprises and engages in solar energy power generation. It is the largest production base of household solar energy power generation system in China.

 

      Golmud 200 MW PV solar plant

 

Qinghai Supower Titanium Co., Ltd. is the only company in Qinghai which produces and processes titanium and titanium alloy. Located in XETDZ, the company employs about 200 people with an annual output of 8,000 tons of titanium. It was founded in 2008 and has a registered fund of RMB 240 million.

 

Qinghai Huanghe Hydropower Development Co. Ltd. is a comprehensive energy enterprise focused on the development and construction of power stations as well as the production and sale of silicon products and solar power generating equipment. It was established in 1999 under China Power Investment Corporation and now has total assets worth over 57 billion RMB.

 
 
 

Resources

Xining is rich in mineral resources. Its reserves of potassium, magnesium, lithium, iodine, natural sulfur, silica and asbestos rank the first in China.

 

Education

As a provincial capital, Xining is the center of education of the province. As of the end of 2012, the city had 9 colleges and universities with a total of 61,858 students. The major universities include Qinghai University, Qinghai Normal University, and Qinghai University for Nationalities.

 

Transportation

Xining's main station is the first stop on the Qinghai-Tibet train line. This line, completed in 2006, is the world’s highest railway. As a result, Xining has considerable tourism from travelers passing through on their way to Tibet, especially as this is considered the best place to start the journey in order to acclimate to the altitude. Xining is also the connecting point for trains heading the opposite way on the Lanzhou-Qinghai Railway.

 

The main station has almost been completed for the high-speed rail link to Lanzhou and Urumqi, with construction due to finish in August.

 

Xining Airport (IATA: XNN) is located about 30km east of downtown Xining. It has 13 airlines operating out of it heading to more than 20 domestic destinations and Hong Kong.

 

There are long distance buses out of Xining to about ten surrounding cities ranging from 4-20 hours away. These buses run on China National Highway 214 out of Xining.

 

Within the city there is a low-cost bus system (flat-rate 1 RMB) that runs until about 9 p.m., sometimes ending earlier in the winter.

 

Tourism

Xining is a popular tourist destination in the summer, especially as it is an important religious location with the Ta’er Monastery(one of six famous monasteries in the Gelugpa Sect of Tibetan Buddhism) and the Dongguan Mosque (one of the most famous mosques in the northwest region of China).

 

Tourism is also an important pillar in Xining. In 2012, it hosted 11.28 million tourists, with a tourist income of RMB 7.52 billion, up 33.9% year on year.

 

History and Culture

There are about 37 nationalities living in Xining, though only a few groups are numerically significant. According to the 2010 Census, Han Chinese make up 74.04 percent of the total population of Xining, while Hui (16.26 percent), Tibetan (5.51 percent) and Tu (2.6 percent) are the main minority groups in the city.

 

Xining has a history of over 2,100 years and was part of the Northern Silk Road. It was also significant as a western stronghold against foreign attacks in the Han, Sui, Tang, and Song dynasties.

 

Key Indicators on ASEAN-China Trade...

Key Indicators on ASEAN-China Trade & Investment 2013

The Association of Southeast Asian Nations, or ASEAN, was established on 8 August 1967 in Bangkok, Thailand, with the signing of the ASEAN Declaration. At present, China is the largest trading partner of ASEAN while ASEAN is China's third largest trading partner. From 2002 to 2012, China-ASEAN bilateral trade climbed 23.6 percent annually to its current 400 billion U.S. dollars. Mutual investment added up to over 100 billion dollars by the end 2012. Currently member countries and China are working to upgrade and deepend the China-ASEAN Free Trade Area (CAFTA) that was established in 2010.

 

 

Key Indicators on ASEAN-China Relations (2013): Trade

 

Category

Contents

Ranking

Remarks

ASEAN-China Trade

443.6 billion USD

(ASEAN Importing 244.1 billion USD /Exporting 199.5 billion USD)

China is ASEAN's largest trade partner, and ASEAN is China's 3rd largest trade partner.

Increased by 10.9% from 2012

 China's Trade with Malaysia

 106.07 billion USD

(Malaysia Importing 45.93 billion USD /Exporting 60.14 billion USD)

 1st among ASEAN Member States

Increased by 11.9% from 2012
 China's Trade with Singapore

75.91 billion USD

(Singapore Importing 45.86 billion USD /Exporting 30.05 billion USD) 

2nd

 Increased by 9.6% from 2012
China's Trade with Thailand

71.26 billion USD

 (Thailand Importing 32.74 billion USD /Exporting 38.52 billion USD)

3rd

Increased by 2.2% from 2012

 China's Trade with Indonesia

 68.35 billion USD

(Indonesia Importing 36.93 billion USD /Exporting 31.42 billion USD)

 4th

Increased by 3.2% from 2012 
 China's Trade with Vietnam

 65.48 billion USD

(Vietnam Importing 48.59 billion USD /Exporting 16.89 billion USD)

 5th

Increased by 29.8% from 2012
China's Trade with the Philippines

38.07 billion USD

(the Philippines Importing 19.84 billion USD /Exporting 18.23 billion USD)

6th

Increased by 4.6% from 2012

Source: General Administration of Customs of China

 

Key Indicators on ASEAN-China Relations (2013): Investment

 

 ASEAN-China Investment Total: 14.09 billion USD

 

 ASEAN's Investment to China Total: 8.35 billion USD China's Investment to ASEAN Total: 5.74 billion USD 
Rank   Country  Investment    Rank  Country Investment
 1st among ASEAN Member States  Singapore  7.327 billion USD  1st among ASEAN Member States Singapore 2.4 billion USD
 2nd Thailand  480 million USD 2nd  Laos 800 million USD
 3rd  Malaysia  280 million USD  3rd  Indonesia  760 million USD

Source: Ministry of Commerce of China

 

China`s foreign aid budgets 2001-2013...

China`s foreign aid budgets 2001-2013.
This paper aims to estimate China’s net foreign aid from 2001 to 2013 as compared to net ODA figures which OECD DAC usually uses. First, a practical definition to capture China’s foreign aid activities as a proxy for China’s ODA was proposed. It consists of grants and interest-free loans (treated as grants), concessional loans as bilateral aid, and contributions to international development agencies as multilateral aid. Second, both net and gross disbursements of China’s foreign aid were estimated. The results showed that China’s net foreign aid has grown rapidly since 2004 and reached US$ 7.1 billion in 2013. The share of bilateral aid is much larger than that of multilateral aid. The difference between net and gross foreign aid is still small due to the fact that the repayment of concessional loans is still relatively limited.
 
 
Relevant points from the paper are:
 
  • Most Chinese aid is provided bilaterally. Only 15% is given as multilateral aid.
  • Concessional loans, provided by China Eximbank, now make up nearly half of the total aid.
  • There are more than 40 departments involved in some way.

The full paper is available here.

Constitution of the Peoples Republic...

Constitution of the Peoples Republic of China, Part 1.

PREAMBLE

 

 

China is one of the countries with the longest histories in the world. The people of all nationalities in China have jointly created a splendid culture and have a glorious revolutionary tradition. Feudal China was gradually reduced after 1840 to a semi-colonial and semi-feudal country. The Chinese people waged wave upon wave of heroic struggles for national independence and liberation and for democracy and freedom. Great and earth-shaking historical changes have taken place in China in the 20th century. The Revolution of 1911, led by Dr Sun Yat-sen, abolished the feudal monarchy and gave birth to the Republic of China. But the Chinese people had yet to fulfil their historical task of overthrowing imperialism and feudalism. After waging hard, protracted and tortuous struggles, armed and otherwise, the Chinese people of all nationalities led by the Communist Party of China with Chairman Mao Zedong as its leader ultimately, in 1949, overthrew the rule of imperialism, feudalism and bureaucrat capitalism, won the great victory of the new-democratic revolution and founded the People's Republic of China. Thereupon the Chinese people took state power into their own hands and became masters of the country.

 

After the founding of the People's Republic, the transition of Chinese society from a new- democratic to a socialist society was effected step by step. The socialist transformation of the private ownership of the means of production was completed, the system of exploitation of man by man eliminated and the socialist system established. The people's democratic dictatorship led by the working class and based on the alliance of workers and peasants, which is in essence the dictatorship of the proletariat, has been consolidated and developed. The Chinese people and the Chinese People's Liberation Army have thwarted aggression, sabotage and armed provocations by imperialists and hegemonists,safeguarded China's national independence and security and strengthened its national defence. Major successes have been achieved in economic development. An independent and fairly comprehensive socialist system of industry has in the main been established. There has been a marked increase in agricultural production. Significant progress has been made in educational, scientific, cultural and other undertakings, and socialist ideological education has yielded noteworthy results. The living standards of the people have improved considerably. Both the victory of China's new-democratic revolution and the successes of its socialist cause have been achieved by the Chinese people of all nationalities under the leadership of the Communist Party of China and the guidance of Marxism-Leninism and Mao Zedong Thought, and by upholding truth, correcting errors and overcoming numerous difficulties and hardships.

 

The basic task of the nation in the years to come is to concentrate its effort on socialist modernization. Under the leadership of the Communist Party of China and the guidance of Marxism- Leninism and Mao ZedongThought, the Chinese people of all nationalities will continue to adhere to the people's democratic dictatorship and follow the socialist road, steadily improve socialist institutions, develop socialist democracy, improve the socialist legal system and work hard and self-reliantly to modernize industry, agriculture, national defence and science and technology step by step to turn China into a socialist country with a high level of culture and democracy. The exploiting classes as such have been eliminated in our country. However, class struggle will continue to exist within certain limits for a long time to come. The Chinese people must fight against those forces and elements, both at home and abroad, that are hostile to China's socialist system and try to undermine it. Taiwan is part of the sacred territory of the People's Republic of China. It is the lofty duty of the entire Chinese people, including our compatriots in Taiwan, to accomplish the great task of reunifying the motherland. In building socialism it is imperative to rely on the workers, peasants and intellectuals and unite with all the forces that can be united. In the long years of revolution and construction, there has been formed under the leadership of the Communist Party of China a broad patriotic united front that is composed of democratic parties and people's organizations and embraces all socialist working people, all patriots who support socialism and all patriots who stand for reunification of the motherland. This united front will continue to be consolidated and developed. The Chinese People's Political Consultative Conference is a broadly representative organization of the united front, which has played a significant historical role and will continue to do so in the political and social life of the country, in promoting friendship with the people of other countries and in the struggle for socialist modernization and for the reunification and unity of the country. The People's Republic of China is a unitary multi-national state built up jointly by the people of all its nationalities. Socialist relations of equality, unity and mutual assistance have been established among them and will continue to be strengthened. In the struggle to safeguard the unity of the nationalities, it is necessary to combat big-nation chauvinism, mainly Han chauvinism, and also necessary to combat local-national chauvinism. The state does its utmost to promote the common prosperity of all nationalities in the country. China's achievements in revolution and construction are inseparable from support by the people of the world. The future of China is closely linked with that of the whole world. China adheres to an independent foreign policy as well as to the five principles of mutual respect for sovereignty and territorial integrity, mutual non-aggression, non-interference in each other's internal affairs, equality and mutual benefit, and peaceful coexistence in developing diplomatic relations and economic and cultural exchanges with other countries; China consistently opposes imperialism, hegemonism and colonialism, works to strengthen unity with the people of other countries, supports the oppressed nations and the developing countries in their just struggle to win and preserve national independence and develop their national economies, and strives to safeguard world peace and promote the cause of human progress. This Constitution affirms the achievements of the struggles of the Chinese people of all nationalities and defines the basic system and basic tasks of the state in legal form; it is the fundamental law of the state and has supreme legal authority. The people of all nationalities, all state organs, the armed forces, all political parties and public organizations and all enterprises and undertakings in the country must take the Constitution as the basic norm of conduct, and they have the duty to uphold the dignity of the Constitution and ensure its implementation.


CHAPTER I. GENERAL PRINCIPLES

 

Article 1. The People's Republic of China is a socialist state under the people's democratic dictatorship led by the working class and based on the alliance of workers and peasants. The socialist system is the basic system of the People's Republic of China. Sabotage of the socialist system by any organization or individual is prohibited.

 

Article 2. All power in the People's Republic of China belongs to the people. The organs through which the people exercise state power are the National People's Congress and the local people's congresses at different levels. The people administer state affairs and manage economic, cultural and social affairs through various channels and in various ways in accordance with the law.

 

Article 3. The state organs of the People's Republic of China apply the principle of democratic centralism. The National People's Congress and the local people's congresses at different levels are instituted through democratic election. They are responsible to the people and subject to their supervision. All administrative, judicial and procuratorial organs of the state are created by the people's congresses to which they are responsible and under whose supervision they operate. The division of functions and powers between the central and local state organs is guided by the principle of giving full play to the initiative and enthusiasm of the local authorities under the unified leadership of the central authorities.

 

Article 4. All nationalities in the People's Republic of China are equal. The state protects the lawful rights and interests of the minority nationalities and upholds and develops the relationship of equality, unity and mutual assistance among all of China's nationalities. Discrimination against and oppression of any nationality are prohibited; any acts that undermine the unity of the nationalities or instigate their secession are prohibited. The state helps the areas inhabited by minority nationalities speed up their economic and cultural development in accordance with the peculiarities and needs of the different minority nationalities. Regional autonomy is practised in areas where people of minority nationalities live in compact communities; in these areas organs of self- government are established for the exercise of the right of autonomy. All the national autonomous areas are inalienable parts of the People's Republic of China. The people of all nationalities have the freedom to use and develop their own spoken and written languages, and to preserve or reform their own ways and customs.

 

Article 5. The state upholds the uniformity and dignity of the socialist legal system. No law or administrative or local rules and regulations shall contravene the constitution. All state organs, the armed forces, all political parties and public organizations and all enterprises and undertakings must abide by the Constitution and the law. All acts in violation of the Constitution and the law must be investigated. No organization or individual may enjoy the privilege of being above the Constitution and the law.

 

Article 6. The basis of the socialist economic system of the People's Republic of China is socialist public ownership of the means of production, namely, ownership by the whole people and collective ownership by the working people. The system of socialist public ownership supersedes the system of exploitation of man by man; it applies the principle of 'from each according to his ability, to each according to his work.

 

Article 7. The state economy is the sector of socialist economy under ownership by the whole people; it is the leading force in the national economy. The state ensures the consolidation and growth of the state economy.

 

Article 8. Rural people's communes, agricultural producers' co-operatives, and other forms of co- operative economy such as producers' supply and marketing, credit and consumers co-operatives, belong to the sector of socialist economy under collective ownership by the working people. Working people who are members of rural economic collectives have the right, within the limits prescribed by law, to farm private plots of cropland and hilly land, engage in household sideline production and raise privately owned livestock. The various forms of co-operative economy in the cities and towns, such as those in the handicraft, industrial, building, transport, commerical and service trades, all belong to the sector of socialist economy under collective ownership by the working people. The state protects the lawful rights and interests of the urban and rural economic collectives and encourages, guides and helps the growth of the collective economy.

 

Article 9. Mineral resources, waters, forests, mountains, grassland, unreclaimed land, beaches and other natural resources are owned by the state, that is, by the whole people, with the exception of the forests, mountains, grassland, unreclaimed land and beaches that are owned by collectives in accordance with the law. The state ensures the rational use of natural resources and protects rare animals and plants. The appropriation or damage of natural resources by any organization or individual by whatever means is prohibited.

 

Article 10. Land in the cities is owned by the state. Land in the rural and suburban areas is owned by collectives except for those portions which belong to the state in accordance with the law; house sites and private plots of cropland and hilly land are also owned by collectives. The state may in the public interest take over land for its use in accordance with the law. No organization or individual may appropriate, buy, sell or lease land, or unlawfully transfer land in other ways. All organizations and individuals who use land must make rational use of the land.

 

Article 11. The individual economy of urban and rural working people, operated within the limits prescribed by law, is a complement to the socialist public economy. The state protects the lawful rights and interests of the individual economy. The state guides, helps and supervises the individual economy by exercising administrative control.

 

Article 12. Socialist public property is sacred and inviolable. The state protects socialist public property. Appropriation or damage of state or collective property by any organization or individual by whatever means is prohibited.

 

Article 13. The state protects the right of citizens to own lawfully earned income, savings, houses and other lawful property. The state protects by law the right of citizens to inherit private property.

 

Article 14. The state continuously raises labour productivity, improves economic results and develops the productive forces by enhancing the enthusiasm of the working people, raising the level of their technical skill, disseminating advanced science and technology, improving the systems of economic administration and enterprise operation and management, instituting the socialist system of responsibility in various forms and improving organization of work. The state practises strict economy and combats waste. The state properly apportions accumulation and consumption, pays attention to the interests of the collective and the individual as well as of the state and, on the basis of expanded production, gradually improves the material and cultural life of the people.

 

Article 15. The state practises economic planning on the basis of socialist public ownership. It ensures the proportionate and co-ordinated growth of the national economy through overall balancing by economic planning and the supplementary role of regulation by the market. Disturbance of the orderly functioning of the social economy or disruption of the state economic plan by any organization or individual is prohibited.

 

Article 16. State enterprises have decision-making power in operation and management within the limits prescribed by law, on condition that they submit to unified leadership by the state and fulfil all their obligations under the state plan. State enterprises practise democratic management through congresses of workers and staff and in other ways in accordance with the law.

 

Article 17. Collective economic organizations have decision-making power in conducting independent economic activities, on condition that they accept the guidance of the state plan and abide by the relevant laws. Collective economic organizations practise democratic management in accordance with the law, with the entire body of their workers electing or removing their managerial personnel and deciding on major issues concerning operation and management.

 

Article 18. The People's Republic of China permits foreign enterprises, other foreign economic organizations and individual foreigners to invest in China and to enter into various forms of economic co-operation with Chinese enterprises and other economic organizations in accordance with the law of the People's Republic of China. All foreign enterprises and other foreign economic organizations in China, as well as joint ventures with Chinese and foreign investment located in China, shall abide by the law of the People's Republic of China. Their lawful rights and interests are protected by the law of the People's Republic of China.

 

Article 19. The state develops socialist educational undertakings and works to raise the scientific and cultural level of the whole nation. The state runs schools of various types, makes primary education compulsory and universal, develops secondary, vocational and higher education and promotes pre-school education. The state develops educational facilities of various types in order to wipe out illiteracy and provide political, cultural, scientific, technical and professional education for workers, peasants, state functionaries and other working people. It encourages people to become educated through self- study. The state encourages the collective economic organizations, state enterprises and undertakings and other social forces to set up educational institutions of various types in accordance with the law. The state promotes the nationwide use of Putonghua (common speech based on Beijing pronunciation).

 

Article 20. The state promotes the development of the natural and social sciences, disseminates scientific and technical knowledge, and commends and rewards achievements in scientific research as well as technological discoveries and inventions.

 

Article 21. The state develops medical and health services, promotes modern medicine and traditional Chinese medicine, encourages and supports the setting up of various medical and health facilities by the rural economic collectives, state enterprises and undertakings and neighbourhood organizations, and promotes sanitation activities of a mass character, all to protect the people's health. The state develops physical culture and promotes mass sports activities to build up the people's physique.

 

Article 22. The state promotes the development of literature and art, the press, broadcasting and television undertakings, publishing and distribution services, libraries, museums, cultural centres and other cultural undertakings, that serve the people and socialism, and sponsors mass cultural activities. The state protects places of scenic and historical interest,valuable cultural monuments and relics and other important items of China's historical and cultural heritage.

 

Article 23. The state trains specialized personnel in all fields who serve socialism, increases the number of intellectuals and creates conditions to give full scope to their role in socialist modernization.

 

Article 24. The state strengthens the building of socialist spiritual civilization through spreading education in high ideals and morality, general education and education in discipline and the legal system, and through promoting the formulation and observance of rules of conduct and common pledges by different sections of the people in urban and rural areas. The state advocates the civic virtues of love for the motherland, for the people, for labour, for science and for socialism; it educates the people in patriotism, collectivism, internationalism and communism and in dialectical and historical materialism; it combats the decadent ideas of capitalism and feudalism and other decadent ideas.

 

Article 25. The state promotes family planning so that population growth may fit the plans for economic and social development.

 

Article 26. The state protects and improves the living environment and the ecological environment, and prevents and controls pollution and other public hazards. The state organizes and encourages afforestation and the protection of forests.

 

Article 27. All state organs carry out the principle of simple and efficient administration, the system of responsibility for work and the system of training functionaries and appraising their work in order constantly to improve quality of work and efficiency and combat bureaucratism. All state organs and functionaries must rely on the support of the people, keep in close touch with them, heed their opinions and suggestions, accept their supervision and work hard to serve them.

 

Article 28. The state maintains public order and suppresses treasonable and other counter- revolutionary activities; it penalizes actions that endanger public security and disrupt the socialist economy and other criminal activities, and punishes and reforms criminals.

 

Article 29. The armed forces of the People's Republic of China belong to the people. Their tasks are to strengthen national defence, resist aggression, defend the motherland, safeguard the people's peaceful labour, participate in national reconstruction, and work hard to serve the people. The state strengthens the revolutionization, modernization and regularization of the armed forces in order to increase the national defence capability.

 

Article 30. The administrative division of the People's Republic of China is as follows: (1) The country is divided into provinces, autonomous regions and municipalities directly under the Central Government; (2) Provinces and autonomous regions are divided into autonomous prefectures, counties, autonomous counties and cities; (3) Counties and autonomous counties are divided into townships, nationality townships and towns. Municipalities directly under the Central Government and other large cities are divided into districts and counties. Autonomous prefectures are divided into counties, autonomous counties, and cities. All autonomous regions, autonomous prefectures and autonomous counties are national autonomous areas.

 

Article 31. The state may establish special administrative regions when necessary. The systems to be instituted in special administrative regions shall be prescribed by law enacted by the National People's Congress in the light of the specific conditions.

 

Article 32. The People's Republic of China protects the lawful rights and interests of foreigners within Chinese territory, and while on Chinese territory foreigners must abide by the law of the People's Republic of China. The People's Republic of China may grant asylum to foreigners who request it for political reasons.

 


CHAPTER II. THE FUNDAMENTAL RIGHTS AND DUTIES OF CITIZENS

 

Article 33. All persons holding the nationality of the People's Republic of China are citizens of the People's Republic of China. All citizens of the People's Republic of China are equal before the law. Every citizen enjoys the rights and at the same time must perform the duties prescribed by the Constitution and the law.

 

Article 34. All citizens of the People's Republic of China who have reached the age of 18 have the right to vote and stand for election, regardless of nationality, race, sex, occupation, family background, religious belief, education, property status, or length of residence, except persons deprived of political rights according to law.

 

Article 35. Citizens of the People's Republic of China enjoy freedom of speech, of the press, of assembly, of association, of procession and of demonstration.

 

Article 36. Citizens of the People's Republic of China enjoy freedom of religious belief. No state organ, public organization or individual may compel citizens to believe in, or not to believe in, any religion; nor may they discriminate against citizens who believe in, or do not believe in, any religion. The state protects normal religious activities. No one may make use of religion to engage in activities that disrupt public order, impair the health of citizens or interfere with the educational system of the state. Religious bodies and religious affairs are not subject to any foreign domination.

 

Article 37. The freedom of person of citizens of the People's Republic of China is inviolable. No citizen may be arrested except with the approval or by decision of a people's procuratorate or by decision of a people's court, and arrests must be made by a public security organ. Unlawful deprivation or restriction of citizens' freedom of person by detention or other means is prohibited; and unlawful search of the person of citizens is prohibited. Article 38. The personal dignity of citizens of the People's Republic of China is inviolable. Insult, libel, false charge or frame-up directed against citizens by any means is prohibited.

 

Article 39. The home of citizens of the People's Republic of China is inviolable. Unlawful search of, or intrusion into, a citizen's home is prohibited.

 

Article 40. The freedom and privacy of correspondence of citizens of the People's Republic of China are protected by law. No organization or individual may, on any ground, infringe upon the freedom and privacy of citizens' correspondence except in cases where, to meet the needs of state security or of investigation into criminal offences, public security or procuratorial organs are permitted to censor correspondence in accordance with procedures prescribed by law.

 

Article 41. Citizens of the People's Republic of China have the right to criticize and make suggestions to any state organ or functionary. Citizens have the right to make to relevant state organs complaints and charges against, or exposures of, violation of the law or dereliction of duty by any state organ or functionary; but fabrication or distortion of facts with the intention of libel or frame-up is prohibited. In case of complaints, charges or exposures made by citizens, the state organ concerned must deal with them in a responsible manner after ascertaining the facts. No one may suppress such complaints, charges and exposures, or retaliate against the citizens making them. Citizens who have suffered losses through infringement of their civil rights by any state organ or functionary have the right to compensation in accordance with the law.

 

Article 42. Citizens of the People's Republic of China have the right as well as the duty to work. Using various channels, the state creates conditions for employment, strengthens labour protection, improves working conditions and, on the basis of expanded production, increases remuneration for work and social benefits. Work is the glorious duty of every able-bodied citizen. All working people in state enterprises and in urban and rural economic collectives should perform their tasks with an attitude consonant with their status as masters of the country. The state promotes socialist labour emulation, and commends and rewards model and advanced workers. The state encourages citizens to take part in voluntary labour. The state provides necessary vocational training to citizens before they are employed.

 

Article 43. Working people in the People's Republic of China have the right to rest. The state expands facilities for rest and recuperation of working people, and prescribes working hours and vacations for workers and staff.

 

Article 44. The state prescribes by law the system of retirement for workers and staff in enterprises and undertakings and for functionaries of organs of state. The livelihood of retired personnel is ensured by the state and society.

 

Article 45. Citizens of the People's Republic of China have the right to material assistance from the state and society when they are old, ill or disabled. The state develops the social insurance, social relief and medical and health services that are required to enable citizens to enjoy this right. The state and society ensure the livelihood of disabled members of the armed forces, provide pensions to the families of martyrs and give preferential treatment to the families of military personnel. The state and society help make arrangements for the work, livelihood and education of the blind, deaf-mute and other handicapped citizens.

 

Article 46. Citizens of the People's Republic of China have the duty as well as the right to receive education. The state promotes the all-round moral, intellectual and physical development of children and young people.

 

Article 47. Citizens of the People's Republic of China have the freedom to engage in scientific research, literary and artistic creation and other cultural pursuits. The state encourages and assists creative endeavours conducive to the interests of the people made by citizens engaged in education, science, technology, literature, art and other cultural work.

 

Article 48. Women in the People's Republic of China enjoy equal rights with men in all spheres of life, political, economic, cultural and social, and family life. The state protects the rights and interests of women, applies the principle of equal pay for equal work for men and women alike and trains and selects cadres from among women.

 

Article 49. Marriage, the family, and mother and child are protected by the state. Both husband and wife have the duty to practise family planning. Parents have the duty to rear and educate their minor children, and children who have come of age have the duty to support and assist their parents. Violation of the freedom of marriage is prohibited. Maltreatment of old people, women and children is prohibited.

 

Article 50. The People's Republic of China protects the legitimate rights and interests of Chinese nationals residing abroad and protects the lawful rights and interests of returned overseas Chinese and of the family members of Chinese nationals residing abroad.

 

Article 51. The exercise by citizens of the People's Republic of China of their freedoms and rights may not infringe upon the interests of the state, of society and of the collective, or upon the lawful freedoms and rights of other citizens.

 

Article 52. It is the duty of citizens of the People's Republic of China to safeguard the unity of the country and the unity of all its nationalities.

 

Article 53. Citizens of the People's Republic of China must abide by the constitution and the law, keep state secrets, protect public property and observe labour discipline and public order and respect social ethics.

 

Article 54. It is the duty of citizens of the People's Republic of China to safeguard the security, honour and interests of the motherland; they must not commit acts detrimental to the security, honour and interests of the motherland.

 

Article 55. It is the sacred obligation of every citizen of the People's Republic of China to defend the motherland and resist aggression. It is the honourable duty of citizens of the People's Republic of China to perform military service and join the militia in accordance with the law.

 

Article 56. It is the duty of citizens of the People's Republic of China to pay taxes in accordance with the law.


CHAPTER III. THE STRUCTURE OF THE STATE

 

SECTION 1. THE NATIONAL PEOPLE'S CONGRESS

 

Article 57. The National People's Congress of the People's Republic of China is the highest organ of state power. Its permanent body is the Standing Committee of the National People's Congress.

 

Article 58. The National People's Congress and its Standing Committee exercise the legislative power of the state.

 

Article 59. The National People's Congress is composed of deputies elected by the provinces, autonomous regions and municipalities directly under the Central Government, and by the armed forces. All the minority nationalities are entitled to appropriate representation. Election of deputies to the National People's Congress is conducted by the Standing Committee of the National People's Congress. The number of deputies to the National People's Congress and the manner of their election are prescribed by law.

 

Article 60. The National People's Congress is elected for a term of five years. Two months before the expiration of the term of office of a National People's Congress, its Standing Committee must ensure that the election of deputies to the succeeding National People's Congress is completed. Should exceptional circumstances prevent such an election, it may be postponed by decision of a majority vote of more than two- thirds of all those on the Standing Committee of the incumbent National People's Congress, and the term of office of the incumbent National People's Congress may be extended. The election of deputies to the succeeding National People's Congress must be completed within one year after the termination of such exceptional circumstances.

 

Article 61. The National People's Congress meets in session once a year and is convened by its Standing Committee. A session of the National People's Congress may be convened at any time the Standing Committee deems this necessary, or when more than one-fifth of the deputies to the National People's Congress so propose. When the National People's Congress meets, it elects a presidium to conduct its session.

 

Article 62. The National People's Congress exercises the following functions and powers:

(1) To amend the Constitution;

(2) To supervise the enforcement of the Constitution;

(3) To enact and amend basic statutes concerning criminal offences, civil affairs, the state organs and other matters;

(4) To elect the President and the Vice-President of the People's Republic of China; (previously translated as Chairman and Vice-Chairman of the People's Republic of China--translator's note.)

(5) To decide on the choice of the Premier of the State Council upon nomination by the President of the People's Republic of China, and to decide on the choice of the Vice-Premiers, State Councillors, Ministers in charge of Ministries or Commissions and the Auditor-General and the Secretary-General of the State Council upon nomination by the Premier;

(6) To elect the Chairman of the Central Military Commission and, upon his nomination, to decide on the choice of the other members of the Central Military Commission;

(7) To elect the President of the Supreme People's Court;

(8) To elect the Procurator-General of the Supreme People's Procuratorate;

(9) To examine and approve the plan for national economic and social development and the reports on its implementation;

(10) To examine and approve the state budget and the report on its implementation;

(11) To alter or annul inappropriate decisions of the Standing Committee of the National People's Congress;

(12) To approve the establishment of provinces, autonomous regions, and municipalities directly under the Central Government;

(13) To decide on the establishment of special administrative regions and the systems to be instituted there;

(14) To decide on questions of war and peace; and

(15) To exercise such other functions and powers as the highest organ of state power should exercise.

 

Article 63. The National People's Congress has the power to recall or remove from office the following persons:

(1) The President and the Vice-President of the People's Republic of China;

(2) The Premier, Vice-Premiers, State Councillors, Ministers in charge of Ministries or Commissions and the Auditor-General and the Secretary-General of the State Council;

(3) The Chairman of the Central Military Commission and others on the commission;

(4) The President of the Supreme People's Court; and

(5) The Procurator-General of the Supreme People's Procuratorate.

 

Article 64. Amendments to the Constitution are to be proposed by the Standing Committee of the National People's Congress or by more than one-fifth of the deputies to the National People's Congress and adopted by a majority vote of more than two-thirds of all the deputies to the Congress. Statutes and resolutions are adopted by a majority vote of more than one half of all the deputies to the National People's Congress.

 

Article 65. The Standing Committee of the National People's Congress is composed of the following: The Chairman; The Vice-Chairmen; The Secretary-General; and Members. Minority nationalities are entitled to appropriate representation on the Standing Committee of the National People's Congress. The National People's Congress elects, and has the power to recall, all those on its Standing Committee. No one on the Standing Committee of the National People's Congress shall hold any post in any of the administrative, judicial or procuratorial organs of the state.

 

Article 66. The Standing Committee of the National People's Congress is elected for the same term as the National People's Congress; it exercises its functions and powers until a new Standing Committee is elected by the succeeding National People's Congress. The Chairman and Vice-Chairmen of the Standing Committee shall serve no more than two consecutive terms.

 

Article 67. The Standing Committee of the National People's Congress exercises the following functions and powers:

(1) To interpret the Constitution and supervise its enforcement;

(2) To enact and amend statutes with the exception of those which should be enacted by the National People's Congress;

(3) To enact,when the National People's Congress is not in session, partial supplements and amendments to statutes enacted by the National People's Congress provided that they do not contravene the basic principles of these statutes;

(4) To interpret statutes;

(5) To examine and approve, when the National People's Congress is not in session, partial adjustments to the plan for national economic and social development and to the state budget that prove necessary in the course of their implementation;

(6) To supervise the work of the State Council,the Central Military Commission, the Supreme People's Court and the Supreme People's Procuratorate;

(7) To annual those administrative rules and regulations, decisions or orders of the State Council that contravene the Constitution or the statutes;

(8) To annul those local regulations or decisions of the organs of state power of provinces, autonomous regions and municipalities directly under the Central Government that contravene the Constitution, the statutes or the administrative rules and regulations;

(9) To decide, when the National People's Congress is not in session, on the choice of Ministers in charge of Ministries or Commissions or the Auditor-General and the Secretary-General of the State Council upon nomination by the Premier of the State Council;

(10) To decide, upon nomination by the Chairman of the Central Military Commission, on the choice of others on the commission, when the National People's Congress is not in session;

(11) To appoint and remove the Vice-Presidents and judges of the Supreme People's Court, members of its Judicial Committee and the President of the Military Court at the suggestion of the President of the Supreme People's Court;

(12) To appoint and remove the Deputy Procurators-General and procurators of the Supreme People's Procuratorate, members of its Procuratorial Committee and the Chief Procurator of the Military Procuratorate at the request of the Procurator-General of the Supreme People's Procuratorate, and to approve the appointment and removal of the chief procurators of the people's procuratorates of provinces, autonomous regions and municipalities directly under the Central Government;

(13) To decide on the appointment and recall of plenipotentiary representatives abroad;

(14) To decide on the ratification and abrogation of treaties and important agreements concluded with foreign states;

(15) To institute systems of titles and ranks for military and diplomatic personnel and of other specific titles and ranks;

(16) To institute state medals and titles of honour and decide on their conferment;

(17) To decide on the granting of special pardons;

(18) To decide, when the National People's Congress is not in session, on the proclamation of a state of war in the event of an armed attack on the country or in fulfillment of international treaty obligations concerning common defence against aggression;

(19) To decide on general mobilization or partial mobilization;

(20) To decide on the enforcement of martial law throughout the country or in particular provinces, autonomous regions or municipalities directly under the Central Government; and

(21) To exercise such other functions and powers as the National People's Congress may assign to it.

 

Article 68. The Chairman of the Standing Committee of the National People's Congress presides over the work of the Standing Committee and convenes its meetings. The Vice-Chairmen and the Secretary-General assist the Chairman in his work. Chairmanship meetings with the participation of the chairman, vice- chairmen and secretary-general handle the important day-to-day work of the Standing Committee of the National People's Congress.

 

Article 69. The Standing Committee of the National People's Congress is responsible to the National People's Congress and reports on its work to the Congress.

 

Article 70. The National People's Congress establishes a Nationalities Committee, a Law Committee, a Finance and Economic Committee, an Education, Science, Culture and Public Health Committee, a Foreign Affairs Committee, an Overseas Chinese Committee and such other special committees as are necessary. These special committees work under the direction of the Standing Committee of the National People's Congress when the Congress is not in session. The special committees examine, discuss and draw up relevant bills and draft resolutions under the direction of the National People's Congress and its Standing Committee.

 

Article 71. The National People's Congress and its Standing Committee may, when they deem it necessary, appoint committees of inquiry into specific questions and adopt relevant resolutions in the light of their reports. All organs of state, public organizations and citizens concerned are obliged to supply the necessary information to those committees of inquiry when they conduct investigations.

 

Article 72. Deputies to the National People's Congress and all those on its Standing Committee have the right, in accordance with procedures prescribed by law, to submit bills and proposals within the scope of the respective functions and powers of the National People's Congress and its Standing Committee.

 

Article 73. Deputies to the National People's Congress during its sessions, and all those on its Standing Committee during its meetings, have the right to address questions, in accordance with procedures prescribed by law, to the State Council or the ministries and commissions under the State Council, which must answer the questions in a responsible manner.

 

Article 74. No deputy to the National People's Congress may be arrested or placed on criminal trial without the consent of the Presidium of the current session of the National People's Congress or, when the National People's Congress is not in session, without the consent of its StandingCommittee.

 

Article 75. Deputies to the National People's Congress may not be called to legal account for their speeches or votes at its meetings.

 

Article 76. Deputies to the National People's Congress must play an exemplary role in abiding by the Constitution and the law and keeping state secrets and, in production and other work and their public activities, assist in the enforcement of the Constitution and the law. Deputies to the National People's Congress should maintain close contact with the units and people which elected them, listen to and convey their opinions and demands and work hard to serve them.

 

Article 77. Deputies to the National People's Congress are subject to the supervision of the units which elected them. The electoral units have the power, through procedures prescribed by law, to recall the deputies whom they elected.

 

Article 78. The organization and working procedures of the National People's Congress and its Standing Committee are prescribed by law.

 

SECTION 2. THE PRESIDENT OF THE PEOPLE'S REPUBLIC OF CHINA

 

Article 79: The President and Vice-President of the People's Republic of China are elected by the National People's Congress. Citizens of the People's Republic of China who have the right to vote and to stand for election and who have reached the age of 45 are eligible for election as President or Vice-President of the People's Republic of China. The term of office of the President and Vice-President of the People's Republic of China is the same as that of the National People's Congress, and they shall serve no more than two consecutive terms.

 

Article 80. The President of the People's Republic of China, in pursuance of decisions of the National People's Congress and its Standing Committee, promulgates statutes; appoints and removes the Premier, Vice-Premiers, State Councillors, Ministers in charge of Ministries or Commissions, and the Auditor- General and the Secretary-General of the State Council; confers state medals and titles of honour; issues orders of special pardons; proclaims martial law; proclaims a state of war; and issues mobilization orders.

 

Article 81. The President of the People's Republic of China receives foreign diplomatic representatives on behalf of the People's Republic of China and, in pursuance of decisions of the Standing Committee of the National People's Congress, appoints and recalls plenipotentiary representatives abroad, and ratifies and abrogates treaties and important agreements concluded with foreign states.

 

Article 82. The Vice-President of the People's Republic of China assists the President in his work. The Vice-President of the People's Republic of China may exercise such parts of the functions and powers of the President as the President may entrust to him.

 

Article 83. The President and Vice-President of the People's Republic of China exercise their functions and powers until the new President and Vice- President elected by the succeeding National People's Congress assume office.

 

Article 84. In case the office of the President of the People's Republic of China falls vacant, the Vice-President succeeds to the office of President. In case the office of the Vice-President of the People's Republic of China falls vacant, the National People's Congress shall elect a new Vice-President to fill the vacancy. In the event that the offices of both the President and the Vice-President of the People's Republic of China fall vacant, the National People's Congress shall elect a new President and a new Vice-President. Prior to such election, the Chairman of the Standing Committee of the National People's Congress shall temporarily act as the President of the People's Republic of China.

 

SECTION 3. THE STATE COUNCIL

 

Article 85. The State Council, that is, the Central People's Government of the People's Republic of China, is the executive body of the highest organ of state power; it is the highest organ of state administration.

 

Article 86. The State Council is composed of the following: The Premier; The Vice-Premiers; The State Councillors; The Ministers in charge of Ministries; The Ministers in charge of Commissions; The Auditor- General; and The Secretary-General. The Premier has overall responsibility for the State Council. The Ministers have overall responsibility for the respective ministries or commissions under their charge. The organization of the State Council is prescribed by law.

 

Article 87. The term of office of the State Council is the same as that of the National People's Congress. The Premier, Vice-Premiers and State Councillors shall serve no more than two consecutive terms.

 

Article 88. The Premier directs the work of the State Council. The Vice- Premiers and State Councillors assist the Premier in his work. Executive meetings of the State Council are composed of the Premier, the Vice-Premiers, the State Councillors and the Secretary-General of the State Council. The Premier convenes and presides over the executive meetings and plenary meetings of the State Council.

 

Article 89. The State Council exercises the following functions and powers: (1) To adopt administrative measures,enact administrative rules and regulations and issue decisions and orders in accordance with the Constitution and the statutes; (2) To submit proposals to the National People's Congress or its Standing Committee; (3) To lay down the tasks and responsibilities of the ministries and commissions of the State Council, to exercise unified leadership over the work of the ministries and commissions and to direct all other administrative work of a national character that does not fall within the jurisdiction of the ministries and commissions; (4) To exercise unified leadership over the work of local organs of state administration at different levels throughout the country, and to lay down the detailed division of functions and powers between the Central Government and the organs of state administration of provinces, autonomous regions and municipalities directly under the Central Government; (5) To draw up and implement the plan for national economic and social development and the state budget; (6) To direct and administer economic work and urban and rural development; (7) To direct and administer the work concerning education, science, culture, public health, physical culture and family planning; (8) To direct and administer the work concerning civil affairs, public security, judicial administration, supervision and other related matters; (9) To conduct foreign affairs and conclude treaties and agreements with foreign states; (10) To direct and administer the building of national defence; (11) To direct and administer affairs concerning the nationalities and to safeguard the equal rights of minority nationalities and the right of autonomy of the national autonomous areas; (12) To protect the legitimate rights and interests of Chinese nationals residing abroad and protect the lawful rights and interests of returned overseas Chinese and of the family members of Chinese nationals residing abroad; (13) To alter or annul inappropriate orders, directives and regulations issued by the ministries or commissions; (14) To alter or annul inappropriate decisions and orders issued by local organs of state administration at different levels; (15) To approve the geographic division of provinces, autonomous regions and municipalities directly under the Central Government, and to approve the establishment and geographic division of autonomous prefectures, counties, autonomous counties and cities; (16) To decide on the enforcement of martial law in parts of provinces, autonomous regions and municipalities directly under the Central Government; (17) To examine and decide on the size of administrative organs and, in accordance with the law, to appoint, remove and train administrative officers, appraise their work and reward or punish them; and (18) To exercise such other functions and powers as the National People's Congress or its Standing Committee may assign it.

 

Article 90. The ministers in charge of ministries or commissions of the State Council are responsible for the work of their respective departments and convene and preside over their ministerial meetings or commission meetings that discuss and decide on major issues in the work of their respective departments. The ministries and commissions issue orders, directives and regulations within the jurisdiction of their respective departments and in accordance with the statutes and the administrative rules and regulations, decisions and orders issued by the State Council.

 

Article 91. The State Council establishes an auditing body to supervise through auditing the revenue and expenditure of all departments under the State Council and of the local governments at different levels, and those of the state financial and monetary organizations and of enterprises and undertakings. Under the direction of the Premier of the State Council,the auditing body independently exercises its power to supervise through auditing in accordance with the law, subject to no interference by any other administrative organ or any public organization or individual.

 

Article 92. The State Council is responsible, and reports on its work, to the National People's Congress or, when the National People's Congress is not in session, to its Standing Committee.

 

SECTION 4. THE CENTRAL MILITARY COMMISSION

 

Article 93. The Central Military Commission of the People's Republic of China directs the armed forces of the country. The Central Military Commission is composed of the following: The Chairman; The Vice-Chairmen; and Members. The Chairman of the Central Military Commission has overall responsibility for the commission. The term of office of the Central Military Commission is the same as that of the National People's Congress.

 

Article 94. The Chairman of the Central Military Commission is responsible to the National People's Congress and its Standing Committee.

 

SECTION 5. THE LOCAL PEOPLE'S CONGRESS AND THE LOCAL PEOPLE'S GOVERNMENTS AT DIFFERENT LEVELS

 

Article 95. People's congresses and people's governments are established in provinces, municipalities directly under the Central Government, counties, cities, municipal districts, townships, nationality townships and towns. The organization of local people's congresses and local people's governments at different levels is prescribed by law. Organs of self-government are established in autonomous regions, autonomous prefectures and autonomous counties. The organization and working procedures of organs of self-government are prescribed by law in accordance with the basic principles laid down in Sections V and VI of Chapter Three of the Constitution.

 

Article 96. Local people's congresses at different levels are local organs of state power. Local people's congresses at and above the county level establish standing committees.

 

Article 97. Deputies to the people's congresses of provinces, municipalities directly under the Central Government, and cities divided into districts are elected by the people's congresses at the next lower level; deputies to the people'scongresses of counties, cities not divided into districts, municipal districts, townships, nationality townships and towns are elected directly by their constituencies. The number of deputies to local people's congresses at different levels and the manner of their election are prescribed by law.

 

Article 98. The term of office of the people's congresses of provinces, municipalities directly under the Central Government and cities divided into districts is five years. The term of office of the people's congresses of counties, cities not divided into districts, municipal districts, townships, nationality townships and towns is three years.

 

Article 99. Local people's congresses at different levels ensure the observance and implementation of the Constitution, the statutes and the administrative rules and regulations in their respective administrative areas. Within the limits of their authority as prescribed by law, they adopt and issue resolutions and examine and decide on plans for local economic and cultural development and for development of public services. Local people's congresses at and above the county level examine and approve the plans for economic and social development and the budgets of their respective administrative areas, and examine and approve reports on their implementation. They have the power to alter or annul inappropriate decisions of their own standing committees. The people's congresses of nationality townships may, within the limits of their authority as prescribed by law, take specific measures suited to the peculiarities of the nationalities concerned.

 

Article 100. The people's congresses of provinces and municipalities directly under the Central Government, and their standing committees, may adopt local regulations, which must not contravene the Constitution, the statutes and the administrative rules and regulations, and they shall report such local regulations to the Standing Committee of the National People's Congress for the record.

 

Article 101. At their respective levels, local people's congresses elect, and have the power to recall, governors and deputy governors, or mayors and deputy mayors, or heads and deputy heads of counties, districts, townships and towns. Local people's congresses at and above the county level elect, and have the power to recall, presidents of people's courts and chief procurators of people's procuratorates at the corresponding level. The election or recall of chief procurators of people's procuratorates shall be reported to the chief procurators of the people's procuratorates at the next higher level for submission to the standing committees of the people's congresses at the corresponding level for approval.

 

Article 102. Deputies to the people's congresses of provinces, municipalities, directly under the Central Government and cities divided into districts are subject to supervision by the units which elected them; deputies to the people's congresses of counties, cities not divided into districts, municipal districts, townships, nationality townships and towns are subject to supervision by their constituencies. The electoral units and constituencies which elect deputies to local people's congresses at different levels have the power, according to procedures prescribed by law, to recall deputies whom they elected.

 

Article 103. The standing committee of a local people's congress at and above the county level is composed of a chairman, vice-chairmen and members, and is responsible, and reports on its work, to the people's congress at the corresponding level. The local people's congress at and above the county level elects, and has the power to recall, anyone on the standing committee of the people's congress at the corresponding level. No one on the standing committee of a local people's congress at and above the county level shall hold any post in state administrative, judicial and procuratorial organs.

 

Article 104. The standing committee of a local people's congress at and above the county level discusses and decides on major issues in all fields of work in its administrative area; supervises the work of the people's government, people's court and people's procuratorate at the corresponding level; annuls inappropriate decisions and orders of the people's government at the corresponding level; annuls inappropriate resolutions of the people's congress at the next lower level; decides on the appointment and removal of functionaries of state organs within its jurisdiction as prescribed by law; and, when the people's congress at the corresponding level is not in session, recalls individual deputies to the people's congress at the next higher level and elects individual deputies to fill vacancies in that people's congress.

 

Article 105. Local people's governments at di

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