Laws of the People's Republic of China

Taiwan Affairs Office of the State Council, The Ministry of Civil Affairs

Notice of Taiwan Affairs Office of the State Council and the Ministry of Civil Affairs Concerning Printing and Issuing Interim Measures for Administration of Associations of Enterprises Funded by Taiwan Compatriots

Taiwan affairs office and the ministry of civil affairs of every province, autonomous region and municipality directly under the Central Government, Taiwan affairs office and the ministry of civil affairs of every city specifically designated in the state plan:

Interim Measures for Administration of Associations of Enterprises Funded by Taiwan Compatriots are hereby printing and issuing, please carry out.

Taiwan Affairs Office of the State Council

The Ministry of Civil Affairs

March 20,2003

Interim Measures for Administration of Associations of Enterprises Funded by Taiwan Compatriots

Article 1

These measures are formulated for the purpose of guaranteeing the legal rights and interests of the Associations of Enterprises Funded by Taiwan Compatriots (hereinafter referred as to AETCs), accelerating economic communications and cooperation between the Mainland and Taiwan and normalizing the administration, according to the Law of the People's Republic of China on Protection of the Investments of Taiwan Compatriots as well as the Administrative Regulations of Associations Registration.

Article 2

AETCs refer to the associations legally established voluntarily which principal members are the enterprises funded by Taiwan compatriots (hereinafter referred as to ETC) and registered in the Mainland China.

Article 3

AETCs shall abide by the State's constitutions, laws and regulations and shall not endanger reunification of the country, security of the State and solidarity of the nations, and shall not impair the State's interests, public interests or citizen legal rights and interests.

Article 4

The State protects the legal rights and interests of AETCs and their members as well as legal activities according to their corporate charters.

Article 5

AETCs take a purpose of serving their members and accelerating the communications and cooperation between the Mainland and Taiwan. Their key operations include:

(1)

Developing association and communication activities;

(2)

Providing the members with consulting services on State' laws and regulations and economic information;

(3)

Communicating between the members and local governments and relevant administrative organs, reporting opinions, suggestions and demands on production and operation from the members, and maintaining the legal rights and interests of the members.

(4)

Accelerating the economic communications and cooperation between the local economies and Taiwan Region.

(5)

Hosting social and commonweal activities;

(6)

Helping the members to solve the problems met in the work and life.

Article 6

The Taiwan Affairs Office of the State Council and relevant Taiwan affairs offices of local peoples' governments are the supervising organs for the operations of AETCs. The relevant Taiwan affairs offices of local peoples' governments and civil affairs administrations are responsible for directing the operations of AETCs and administrating their registration affairs.

Article 7

The members of AETCs are divided into entity ones (as the principal body) and individual ones.

An entity member is an ETC joining the AETC in the name of its business name, which is registered locally.

An individual member is a Taiwan compatriot joining the local AETC in the name of himself, which business is registered locally, as well as a person who provides services to the AETC in a proper name.

Article 8

The following requirements shall be met with for establishing an AETC:

(1)

In a region where there mass ETCs;

(2)

Over 50 founder members including no less than 30 entity members;

(3)

A fixed operation site;

(4)

Full-time staff suitable for developing operation activities;

(5)

Legal fund sources.

(6)

Other requirements stipulated in the laws, regulations, and rules.

Article 9

Any establishment of an AETC shall be examined and approved by the competent administration registered according to relative regulations and reported to and recorded by the Taiwan Affairs Office of the State Council.

Article 10

Local Taiwan affairs offices shall fulfill their responsibilities as competent administrations and provide services and assistances to AETCs.

(1)

Directing the activities performed by AETCs' according to laws;

(2)

Assisting AETCs in communicating with local governments and relevant administrations;

(3)

Assisting AETCs in organizing activities related to major economic exchanging and major conferences.

(4)

Assisting AETCs in organizing trainings on laws and economic operations;

(5)

Providing assistance to the commonweal activities hosted by AETCs;

(6)

Providing assistance in solving problems met by AETCs in their operations and difficulties met by their members in their production and life; and

(7)

Providing other necessary assistances.

Article 11

The chairman of an AETC shall be assumed by a Taiwan businessman. Any chairman and vice-chairman shall meet with following requirements:

(1)

Abiding by the principle of one China, upholding the reunification of the country, and actively and willingly striving for accelerating the economic communications and cooperation;

(2)

A Taiwan businessman with competitive capability in economy and his business shall have a certain large scale.

(3)

A Taiwan businessman with good personal quality, who enjoys a prestige among local Taiwan businessmen.

(4)

Enthusiastic about the work of the association, with strong working capability.

(5)

Good in health, capable of routine job.

(6)

Not a legal representative of any other association; and

(7)

With full capacity for civil conduct.

Article 12

In order for AETC to communicate with the administration of government easily and provide better services for the members, the responsible person of the Taiwan affairs office of the local people's government may accept the invitation from the AETC to hold a proper post in the AETC. The person to be engaged for a post in the AETC shall be selected according to the procedures of the constitutions of the AETC and shall not take any pay from the AETC?¡ê

Article 13

The employment of common staff by an AETC shall be accordance with relevant regulations of the State.

Article 14

For receptions of visits of key visiting groups or persons from Taiwan, the AETC shall report to the local competent administration beforehand for record.

Major activities to be hosted by an AETC including establishment, expiration of office terms and celebration shall be reported to the competent administration for approval.

Any Tran regional activities to be hosted by an AETC shall be reported to the competent administration for reporting to its upper level administration for approval.

Article 15

No AETC shall join a foreign chamber of commerce or an overseas association.

An AETC shall operate according to its constitution independently without any subjection relationship with any other organization, and shall not accept any consign from any other organization or individual to pursue any activity incompliant with its constitution.

Article 16

Any receipt of member fees, donations or financial assistances shall be accordance with the tenet and business scope specified in its constitution. The receipt and use of such member fees, donations or financial assistances shall be reported to the competent administration and registration administration authority and shall be publicized in a proper way.

Article 17

The competent administration and registration administration authority shall grant commends to the AETCs with excellent performances during their legal operations.

Article 18

For an AETC established prior to the enforcement of these Measures, any incompliance with these Measure shall be corrected within six months since the enforcement of these Measures according to relative regulations in these Measures.

Article 19

Any circumstance that have not mentioned in these Measures shall be dealt with according to the Administrative Regulations of Associations Registration as well as relevant regulations of the State.

Article 20

The Taiwan Affairs Office of the State Council is responsible for the interpretation of these Measures.

Article 21

These Measures shall enter into force as of April 20, 2003.