Laws of the People's Republic of China

No. 174

Supplementary Provisions No. 2 to the Provisions on Foreign Investment in the Civil Aviation Industry has been deliberated and adopted at the executive meeting of the Civil Aviation Administration of China on November 30, 2006 and has been approved by the Ministry of Commerce and the National Commission of Development and Reform upon examination. It is hereby promulgated and shall enter into force as of January 4, 2007. Yang Yuanyuan, Director-General of the Civil Aviation Administration of China

Bo Xilai, Minister of the Ministry of Commerce

Ma Kai, Director-General of the National Development and Reform Commission

January 4, 2007

Supplementary Provisions No. 2 to the Provisions on Foreign Investment in the Civil Aviation Industry

Subject to Supplementary Agreement No.2 on Mainland and Hong Kong Closer Economic Partnership Arrangement, Supplementary Agreement No. 3 on Mainland/Hong Kong Closer Economic Partnership Arrangement, Supplementary Agreement No.2 on Mainland and Macao Closer Economic Partnership Arrangement and Supplementary Agreement No 3 to Macao/Mainland Closer Economic Partnership Arrangement as approved by the State Council, the Supplementary Provisions to the Provisions on Foreign Investment in the Civil Aviation Industry (Decree No. 110 of the Civil Aviation Administration of China, Ministry of Foreign Trade and Economic Cooperation and State Planning Commission) are hereby given as follows:

1.

A Hong Kong or Macao aviation sales agent meeting the definition of Hong Kong or Macao service provider is permitted to establish an equity joint, contractual, or solely-funded air transport sales agency in the Mainland. It shall satisfy the same requirement of registered capital as that for Mainland enterprises.

2.

The General Administration of Civil Aviation of China, Ministry of Commerce of the People's Republic of China and the National Commission of Development and Reform are responsible for the interpretation of the present Supplementary Provisions according to their respective functions.

3.

The present Supplementary Provisions shall enter into force as of January 4, 2007.