(Adopted at the 44th Session of the Standing Committee of the
11th Shanghai Municipal People' s Congress on October 31, 2002)
These Provisions are formulated, in the light of the actual
circumstances of this Municipality, pursuant to relevant laws and administrative
regulations, with a view to promoting the development of the trade associations
of this Municipality, safeguarding the trade associations
carrying out their
activities in accordance with law, and normalizing the organizations and acts of
the trade associations.
The trade association mentioned in
these Provisions refers to a non-profit mass organization voluntarily organized
and other economic organizations of a same trade to carry out
trade services and self-disciplinary administrations.
The objective of a trade association is to provide services to its members,
uphold the legitimate rights and interests of the members,
and safeguard the
fair competition of the trade, link its members with the government, as well as
society, and promote the economic
development of the trade.
associations follow the principle of running independently the association,
dealing with the association affairs independently,
and raising funds by
The activities of a trade association shall conform to the laws
and regulations and the overall interests and the requirements of
the trade, and
shall not harm the public interest of the society.
The normal activities of a
trade association are protected by law, and shall not be interfered illegally by
any organization or
The people' s
government at all levels shall promote and foster the development of the trade
associations, support the trade associations
to run independently their
associations, administer according to law, and ensure the independent operation
of the trade associations.
The Municipal Office of Trade Associations
Development, the municipal administrative departments of registration of mass
and the relevant departments of the municipal government shall,
according to their own duties, do a good job of the work of the
the trade associations.
The trade associations shall be
established according to the current State standard of trades' classification.
It may also be established
according to the product, mode of business operation,
links of business operation and the functions of service. The trade associations
shall have representativeness of the trades of the whole Municipality.
establishment of a trade association shall be accompanied by the formulation of
the constitution of the trade association. The
aim, scope of business,
organizational structure, rule of activity and the rights and obligations of the
members shall be stipulated
in the constitutions of the trade
The basic procedure and conditions of examination and approval
of the establishment of a trade association shall be executed according
State provisions on the registration of mass organizations and the relevant
provisions of this Municipality.
The trade association
shall set for the enterprises of different areas, departments, ownership, scale
of business operation, or
other economic organizations, the same standard of
entry, ensuring the equal right of joining the association.
or other economic organizations of the same trade may become, upon approval of
the trade association, members of
the trade association, if they apply
voluntarily to join the association.
A member of the trade association may
withdraw from the association of their own will. The trade association may also
members who have committed serious acts in violation of law and
breach of contract of their membership according to the stipulations
constitution of the trade association.
association adopts the membership system. General member meeting or general
meeting of representatives of membership is
the organ of power of the trade
association. The trade association sets up its board of directors to act as the
of the general membership meeting or general meeting of
representatives of membership. The trade association sets up its secretariat
its administrative body.
The president, vice presidents and the directors are
elected according to the constitution of the trade association. The secretary
general is the full-time administrator, who is employed by the board of
directors, or by other means according to the constitution
of the trade
association. The staff members working in the secretariat of the trade
association shall be professionalized step
agencies, personnel and finance of the relevant working departments of the
government shall be separated from the trade associations,
and their working
agencies shall not share the same office with the working body of the trade
No working personnel of government organs shall hold leading
positions of any trade association.
The trade association may,
according to the demand of its members, organize the expansion of the market,
issue the information of
the market, recommend and introduce the products of the
trade or services, provide training of the trade or offer consultancy
The trade association may formulate its own
rules and stipulations of the trade. It may make suggestions to the relevant
departments of the government on the formulation of the relevant
technical standard, or participate in the formulation of the relevant
The trade association may mediate the disputes
between members, members and non-members, or members and consumers arisen in
business activities. It may coordinate the matters of business operation
between itself and other trade associations or organizations
involved. It may
participate in the collective negotiation of the trade on behalf of the trade,
and put forward suggestions and
proposal involving the interest of the
The trade association may, according to the
provisions of laws and administrative regulations and on behalf of the relevant
of the trade or other economic organizations, put forward to the
working departments of the government, the anti-dumping and anti-subsidy
investigation or apply for taking protective measures, and assist the relevant
departments of the government to complete the investigation.
association may participate in the activities of answering the anti-dumping
The trade association may, on behalf of its trade,
report to the relevant state departments about the matters related to the
of the trade, make suggestions and proposals on economic policy and
The trade association may, according to the
stipulations of the constitutions of the trade association, take
against the members who violate the rules and
stipulations of the trade association, and damage the overall image of the
and report to the relevant departments about the self-disciplinary
measures. The trade association may suggest or assist the relevant
of the government to investigate and punish the enterprises or other economic
organizations within the trade that are
engaged in illegal businesses.
trade association may, if necessary, formulate the rules and procedures on
revolving disputes within the trade.
The relevant state
organs, when formulating the local laws, rules and regulations, public policies,
administrative measures, technical
standard, or the development plan of the
trade that involve the interest of the trade, shall solicit the opinions of the
association. When formulating relevant technical standards, the relevant
state organ may also entrust the trade association to do
The relevant working departments of the
government shall support the trade associations to carry out trade service, and
or entrust step by step the functions of, in the light of the actual
situations, the evaluation and demonstration of the trade,
the examination of
the technical competency, the investigation and statistics of the trade, and the
exhibition and marketing of
the product to the trade associations.
The relevant working departments of the government shall provide the trade
associations with information and consultancy, and report
to the competent
departments of the State about the demands of the trade.
The relevant working
departments of the government or mass organizations shall support the trade
associations to participate in
the relevant activities concerning anti-dumping,
anti-subsidy, and anti unfair competition.
associations may raise funds for their activities through charging membership
dues, accepting contribution and donation,
carrying out the provision of
service, undertaking matters entrusted by the relevant working departments of
the government. The
standard of the membership dues shall be stipulated by the
constitution of the trade association. The use of the funds shall be
the scope of business as stipulated in the constitution of the trade
association, and shall be subject to the supervision
of the members and the
relevant working departments of the government.
The funds for the public
administrative affairs undertaken by the trade association shall be paid by the
public fund. When the relevant
working departments of the government entrust the
trade association to undertake the work, the form of paid service shall be
The necessary public fund support shall be given, according to relevant
provisions, to those trade associations that are really
in difficulty in the
initial stage of the establishment.
The trade association shall
not, by way of formulating rules of trade or other means, monopolize the market,
impede fair competition,
and jeopardize the legitimate rights and interests of
consumers, non-member enterprises or other economic organizations and the
interest of society. It shall not abuse its power to restrict its members in
carrying out proper business activities or
participating in other social
activities, nor shall it impose discriminating treatments among members. It
shall not make use of
its organizational advantage to engage itself in the
business operational activities that are similar with the businesses operation
of the trade.
No member of the trade association shall make use the advantage
of its scale of business or market share to restrict the other members
their roles in the trade association.
When the members of the
trade association have objections to the rules, self-disciplinary measures, or
other decisions implemented
by the trade association, they may apply to the
trade association for review, or apply to, according to law, the relevant
departments of the government to handle it.
If consumers, non-member
enterprises or other economic organizations believe that the relevant measures
of the trade association
jeopardize their interests, they may ask the trade
association to adjust or change the measures concerned, or they may apply to,
according to law, the relevant working departments of the government for
handling or lodge a lawsuit to the people' s court.
municipal administrative departments of registration of mass organizations, the
Municipal Office of Trade Associations Development
and the relevant departments
of the government shall supervise and administrate the activities of the trade
to the relevant laws, rules and regulations.
These Provisions are applicable to the trade association composed of
intermediary agencies of market of authentication category or
association in which practitioners as required by law or regulations must join
These Provisions shall become effective on
February 1, 2003.