3.Policy and regulations regarding financial management

4.Policy and Regulations on Labor Management

5.Policy and stipulations regarding the inspection of import & export goods

6.Visa

7.Polocy and regulations on real estate investment

Finance registration

Foriegn-funded enterprises and their branch offices should, within 30 days of the transcript of the business license being issued, go through financial registration at the relevant financial governing bodies. Solely overseas-funded enterprises should register at the Beijing Finance Bureau. When registering, the enterprise needs to fill out a Finance Registration Card for Foreign-Invested Enterprises, and submit the following material (or transcripts or copies):

1. Approval certificate of the foreign-funded enterprises.

2. Transcript of business license.

3. Feasibility studies report, contract and other documents.

4. Contracts and documents and the official written reply by the Board of Directors regarding the application.

The financial bodies responsible should grant applicants the original and transcript of the financial registration card for foreign-funded enterprises.

If the enterprises make changes in the contract or change the name, address, boss, and/or business scope, they should register these changes of them occurring.

After the closure and liquidation of the enterprise and before it applies to cancell registration at the Administration for Industry and Commerce, it should first go through the financial registration cancellation procedure.

Fee collection

According to the criteria set by the Beijing Municipal Government and the actual land use of the enterprises, financial authorities collect a land use fee and subsidies for employees of Chinese nationality ( excluding those holding the rural recedence permits) at 30 yuan per person per month.

Under the approval of the financial authorities, foreign-funded enterprises can enjoy the following preferential policies:

1. Enterprises only pay 20% of the standard land use fee during the contracted preparatory period.

2. Exemption for productive enterprises during the contrated preparatory period.

3. Enterprises invested by overseas Chinese and Taiwan compatriots pay 20 to 30% of the standard land use fee on production of a letter by the City's Overseas Chinese Affairs Office and the Taiwan Affairs Office.

4. Enterprises, whose products are for export, and excellent high-tech enterprises, pay 10 to 30% less than the standard fee with the certificate granted by the Beijing Foreign Economic Relation and Trade Commission.

5. Enterprises, whose products are for export, and excellent high-tech enterprises are exempt from paying price subsidies or subsidies of other kinds for employees.

Annual financial inspection and supervision

Foreign-funded enterprises should go through the annual financial inspection before April 30 every year. The main contents include:

financial registration or registration change in the previous year, financial matters and accounting activities, observance of the financial law.

The following material shall be submitted for the annual financial inspection:

1. Transcript of the financial registration card.

2. Annual report of foreign-funded enterprises.

3. Final accounting of revenue and expenditure and explanatory report of financial status.

4. Audit report and capital examination report by accounting or auditing firms.

In addition to the annual financial inspection, the financial authorities shall select some enterprises for special or full inspection mid-year covering areas such as the establishment and implementation of financial and accounting systems, the submission of accounting report forms and the implementation of financial laws and regulations.

Tax repayment

The " Regulation on Encouraging Foreign Investment in High and New Technology Industries" issued by the Beijing Municipal Government stipulates: For foreign-funded production enterprises scheduled to operare for 10 years or longer, they shall be exempted from the corporate tax for the first and second year beginning from the first profit-making year, and the rate on corporate income tax payable by them shall be reduced by 50% between the third and fifth years( for three years). Enterprises may apply for the retrogressive reduction by 50% of the corporate income tax already paid. Where competent authorities of finance at the corresponding level have verified and approved the eligibility of relevant enterprises for retrogressive tax reduction, they shall be fully refunded the 50% of the corporate income tax already paid.

Enterprises of high and new technology industries should use the tax money refunded by financial authorities for production development, technological development or registered capital increase.

Registration

Foreign-funded enterprises should register at the Beijing Labor Bureau within 30 days after receiving the Business License. A letter of approval issued by the Municipal Economic and Trade Commission should also be shown.

Labor employment

Foreign-funded enterprises must sign labor contracts with the employees on the day of starting the employment, in compliance with the Labor Law of the People's Republic of China and Regulations on the Implementation of Labor Contract System of Beijing. Foreign-funded enterprises are also required to sign labor agreements with the senders of workers concerned before the employment of them.

1. Employment

In employment personnel with the permanent residential permit of Beijing City, foreign-funded enterprises shall go through the formalities of formally employing the personnel concerned or the formalities of transfering them to the foreign-funded enterprises. In employing Beijing-based rural laborers, foreign-funded enterprises shall report the employment to the labor management bureau at the city, district or county where the relevant rural labors reside for registration.

In employing personnel from outside of Beijing, foreign-funded enterprises shall separately make employment applications to the labor management bureau at the city, district or county where the foreign-funded enterprises are based for review and approval, and shall manage to obtain the Employment License for Non-Permanent Beijing Residents Seeking Jobs in Beijing for the employees concerned.

In employing personnel form Taiwan, Hong Kong and Macao to work in Beijing, foreign-funded enterprises shall apply to Beijing Municipal Bureau of Labor for the License for the Employment of People from Taiwan, Hong Kong and Macao.

2.Termination of employment

When a labor contract expires in line with relevant agreement, the employer and the employee may negotiate to continue their relationship of labor employment and sign a new labor contract. Or, they can renounce their relationship of labor employment and terminate the labor contract.

Where a foreign-funded enterprise has to cut its workforce because of changes in production and operation, or where the relationship of labor employment involving a number of employees has to be renounced as a result that the employees remain unqualified after trial employment or that they have broken relevant regulations, the foreign-funded enterprises may act to renounce the relationship of labor employment before its natural expiration and terminate the labor contract concerned.

During the trial employment period, or at any time when the foreign-funded enterprise had encroached the legal rights and interests of employees in violation of terms of the labor contract concerned, the employees concerned may act to renounce their relationship of labor employment with the enterprise before its natural expiration and terminate the labor contract concerned.

3. Compensation policy

Where the two sides to renounce their relationship of labor employment in advance because of reasons on the part of the foreign-funded enterprise, the enterprise shall pay economic compensations to the employees concerned in line with relevant regulations of the State and government, and where the two sides have to renounce their relationship of labor employment in advance because of reasons on the part of employees, the employees concerned shall pay indemnity to the enterprise in line with relevant terms of agreements and systems of the enterprise.

Labor protection

System of Work Hours and Holiday Leaves

Enterprises must apply the system that the total work hours may not exceed 8 hours per day, and that the average work hours for each work per week may not exceed 44 hours in total. Employers must arrange holiday leaves for their employees on the occasions of the New Year's Day, the Chinese Lunar New Year's Day ( or Spring Festival), the International Labor Day, the National Day of the People's Republic of China and other holidays defined Chinese Law and government regulations.

For employees who have worked in an enterprise successively for a period of more than one year, they are eligible to enjoy the treatment of spending annual holiday leaves with pay. However, the duration of such holiday leaves is subject to decision by the enterprise concerned.

Labor safety and hygiene

Enterprises must strictly observe the regulations and standards concerning labor safety and hygiene in China. The production equipment and installations must be supplemented with safty protection devices and hygiene facilities. For new projects, expansion projects and reconstruction projects,safety protection devices and hygiene facilities must be designed, installed and put into use simultaneously with the progress in building, expanding or rebuilding the principal parts of the projects.

Labor insurance, welfare and salary system

Salary standard for Chinese employees:

The salary standard for Chinese employees is decided by the enterprise itself, but should not lower than RMB1.8 Yuan per hour and RMB 310 Yuan per month.

Standards for extraction of various welfare and pensions for Chinese employees:
The foreign-funded enterprises should extract the total salaries and wages of Chinese employees from its cost and take the extraction as the base.

Price subsidiaries standards:

Foreign-funded enterprise should pay Chinese employees welfare and social insurance.