Basic Law of the Macao Special Administrative Region of the People's Republic of China
Chapter VI Cultural and Social Affairs
Chapter VIII Interpretation and Amendment of the Basic Law
Annex I Method for the Selection of the Chief Executive of the Macao Special Administrative Region
Macao, including the Macao Peninsula, Taipa Island and Coloane Island, has been part of the territory of China since ancient times; it was gradually occupied by Portugal after the mid-16th century.
On April 13, 1987, the Chinese and Portuguese Governments signed the Joint Declaration on the Question of Macao, affirming that the Government of the People's Republic of China will resume the exercise of sovereignty over Macao with effect from December 20, 1999, thus fulfilling the long-cherished common aspiration of the Chinese people for the recovery of Macao.
In accordance with the Constitution of the People's Republic of China, the National People's Congress hereby enacts the Basic Law of the Macao Special Administrative Region of the People's Republic of China, prescribing the systems to be practiced in the Macao Special Administrative Region, in order to ensure the implementation of the basic policies of the People's Republic of China regarding Macao.
Article 2 The National People's Congress authorizes the Macao Special Administrative Region to exercise a high degree of autonomy and enjoy executive, legislative and independent judicial power, including that of final adjudication, in accordance with the provisions of this Law.
Article 5 The socialist system and policies shall not be practiced in the Macao Special Administrative Region, and the previous capitalist system and way of life shall remain unchanged for 50 years.
Article 8 The laws, decrees, administrative regulations and other normative acts previously in force in Macao shall be maintained, except for any that contravenes this Law, or subject to any amendment by the legislature or other relevant organs of the Macao Special Administrative Region in accordance with legal procedures.
Article 9 In addition to the Chinese language, Portuguese may also be used as an official language by the executive authorities, legislature and judiciary of the Macao Special Administrative Region.
Article 10 Apart from displaying the national flag and national emblem of the People's Republic of China, the Macao Special Administrative Region may also use a regional flag and regional emblem.
The regional flag of the Macao Special Administrative Region is a green flag with five stars, lotus flower, bridge and sea water.
Article 13 The Central People's Government shall be responsible for the foreign affairs relating to the Macao Special Administrative Region.
The Ministry of Foreign Affairs of the People's Republic of China shall establish an office in Macao to deal with foreign affairs.
Article 14 The Central People's Government shall be responsible for the defense of the Macao Special Administrative Region.
The Government of the Macao Special Administrative Region shall be responsible for the maintenance of public order in the Region.
Article 15 The Central People's Government shall appoint or remove the Chief Executive, the principal officials of the government and the Procurator-General of the Macao Special Administrative Region in accordance with the relevant provisions of this Law.
Article 16 The Macao Special Administrative Region shall be vested with executive power. It shall, on its own, conduct the administrative affairs of the Region in accordance with the relevant provisions of this Law.
Laws enacted by the legislature of the Macao Special Administrative Region must be reported to the Standing Committee of the National People's Congress for the record. The reporting for record shall not affect the entry into force of such laws.
The Standing Committee of the National People's Congress may add to or delete from the list of laws in Annex III after consulting its Committee for the Basic Law of the Macao Special Administrative Region and the government of the Region. Laws listed in Annex III to this Law shall be confined to those relating to defense and foreign affairs as well as other matters outside the limits of the autonomy of the Region as specified by this Law.
In the event that the Standing Committee of the National People's Congress decides to declare a state of war or, by reason of turmoil within the Macao Special Administrative Region which endangers national unity or security and is beyond the control of the government of the Region, decides that the Region is in a state of emergency, the Central People's Government may issue an order applying the relevant national laws in the Region.
Article 20 The Macao Special Administrative Region may enjoy other powers granted to it by the National People's Congress, the Standing Committee of the National People's Congress or the Central People's Government.
Article 21 Chinese citizens who are residents of the Macao Special Administrative Region shall be entitled to participate in the management of state affairs according to law.
In accordance with the assigned number of seats and the selection method specified by the National People's Congress, the Chinese citizens among the residents of the Macao Special Administrative Region shall locally elect deputies of the Region to the National People's Congress to participate in the work of the highest organ of state power.
Article 22 No department of the Central People's Government and no province, autonomous region, or municipality directly under the Central Government may interfere in the affairs which the Macao Special Administrative Region administers on its own in accordance with this Law.
If there is a need for departments of the Central Government, or for provinces, autonomous regions, or municipalities directly under the Central Government, to set up offices in the Macao Special Administrative Region, they must obtain the consent of the government of the Region and the approval of the Central People's Government.
For entry into the Macao Special Administrative Region, people from other provinces, autonomous regions or municipalities directly under the Central Government must apply for approval. Among them, the number of persons who enter the Region for the purpose of settlement shall be determined by the competent authorities of the Central People's Government after consulting the government of the Region.
Chapter III Fundamental Rights and Duties of the Residents
(3) The Portuguese who were born in Macao and have taken Macao as their place of permanent residence before or after the establishment of the Macao Special Administrative Region;
(4) The Portuguese who have habitually resided in Macao for a continuous period of not less than 7 years and have taken Macao as their place of permanent residence before or after the establishment of the Macao Special Administrative Region;
(5) Other persons who have habitually resided in Macao for a continuous period of not less than 7 years and have taken Macao as their place of permanent residence before or after the establishment of the Macao Special Administrative Region;
Article 27 Macao residents shall have freedom of speech, of the press and of publication; freedom of association, of assembly, of procession and of demonstration; and the right and freedom to form and join trade unions, and to strike.
No Macao resident shall be subjected to arbitrary or unlawful arrest, detention or imprisonment. In case of arbitrary or unlawful detention or imprisonment, Macao residents have the right to apply to the court for the issuance of a writ of habeas corpus.
Unlawful search of the body of any resident or deprivation or restriction of the freedom of the person shall be prohibited.
Torture or inhuman treatment of any resident shall be prohibited.
Article 29 Macao residents shall not be punished by law, unless their acts constitute a crime and they shall be punished for it as expressly prescribed by law at the time.
When charged with criminal offenses, Macao residents shall enjoy the right to an early court trial and shall be presumed innocent before convicted.
Article 30 The human dignity of Macao residents shall be inviolable. Humiliation, slander and false accusation against residents in any form shall be prohibited.
Macao residents shall enjoy the right to personal reputation and the privacy of their private and family life.
Article 31 The homes and other premises of Macao residents shall be inviolable. Arbitrary or unlawful search of, or intrusion into, a resident's home or other premises shall be prohibited.
Article 33 Macao residents shall have freedom of movement within the Macao Special Administrative Region and freedom of emigration to other countries and regions. They shall have freedom to travel and to enter or leave the Region and shall have the right to obtain travel documents in accordance with law. Unless restrained by law, holders of valid travel documents shall be free to leave the Region without special authorization.
Article 34 Macao residents shall have freedom of conscience.
Macao residents shall have freedom of religious belief and freedom to preach and to conduct and participate in religious activities in public.
Article 36 Macao residents shall have the right to resort to law and to have access to the courts, to lawyers' help for protection of their lawful rights and interests, and to judicial remedies.
Article 37 Macao residents shall have freedom to engage in education, academic research, literary and artistic creation, and other cultural activities.
The minors, the aged and the disabled shall be taken care of and protected by the Macao Special Administrative Region.
Article 40 The provisions of International Covenant on Civil and Political Rights, International Covenant on Economic, Social and Cultural Rights, and international labor conventions as applied to Macao shall remain in force and shall be implemented through the laws of the Macao Special Administrative Region.
Article 42 The interests of the residents of Portuguese descent in Macao shall be protected by the Macao Special Administrative Region in accordance with law, and their customs and cultural traditions shall be respected.
Article 44 Macao residents and other persons in Macao shall have the obligation to abide by the laws in force in the Macao Special Administrative Region.
Article 46 The Chief Executive of the Macao Special Administrative Region shall be a Chinese citizen of not less than 40 years of age who is a permanent resident of the Region and has habitually resided in Macao for a continuous period of not less than 20 years.
Article 48 The term of office of the Chief Executive of the Macao Special Administrative Region shall be five years. He or she may serve for not more than two consecutive terms.
Article 49 The Chief Executive of the Macao Special Administrative Region, during his or her term of office, shall have no right of abode in any foreign country and shall not engage in any activities for his or her personal gains. The Chief Executive, on assuming office, shall declare his or her assets to the President of the Court of Final Appeal of the Macao Special Administrative Region. This declaration shall be put on record.
Article 50 The Chief Executive of the Macao Special Administrative Region shall exercise the following powers and functions:
(2) To be responsible for the implementation of this Law and other laws which, in accordance with this Law, apply in the Macao Special Administrative Region;
(3) To sign bills passed by the Legislative Council and to promulgate laws;
(4) To decide on government policies and to issue executive orders;
(5) To formulate the administrative regulations and promulgate them for implementation;
(6) To nominate and to report to the Central People's Government for appointment of the following principal officials: Secretaries of Departments, Commissioner Against Corruption, Director of Audit, the leading members of the Police and the Customs and Excise; and to recommend to the Central People's Government the removal of the above-mentioned officials;
(8) To appoint or remove members of the Executive Council;
(9) To appoint or remove presidents and judges of the courts at all levels and procurators in accordance with legal procedures;
(10) To nominate and report to the Central People's Government for appointment of the Procurator-General and recommend to the Central People's Government the removal of the Procurator-General in accordance with legal procedures;
(12) To implement the directives issued by the Central People's Government in respect of the relevant matters provided for in this Law;
(13) To conduct, on behalf of the Government of the Macao Special Administrative Region, external affairs and other affairs as authorized by the Central Authorities;
(16) To confer medals and titles of honor of the Macao Special Administrative Region in accordance with law;
(17) To pardon persons convicted of criminal offenses or commute their penalties in accordance with law; and
(18) To handle petitions and complaints.
(2) The Legislative Council refuses to pass a budget introduced by the government or any other bills which he or she considers concern the overall interests of the Region, and after consultations, consensus still cannot be reached.
Article 53 If the Legislative Council of the Macao Special Administrative Region fails to pass the budget introduced by the government, the Chief Executive may approve provisional short-term appropriations according to the level of expenditure of the previous fiscal year.
Article 56 The Executive Council of the Macao Special Administrative Region shall be an organ for assisting the Chief Executive in policy-making.
Article 57 Members of the Executive Council of the Macao Special Administrative Region shall be appointed by the Chief Executive from among the principal officials of the executive authorities, members of the Legislative Council and public figures. Their appointment or removal shall be decided by the Chief Executive. The term of office of members of the Executive Council shall not extend beyond the expiry of the term of office of the Chief Executive who appoints them. Members of the original Executive Council shall remain in office until the new Chief Executive is selected.
The Executive Council shall be composed of seven to eleven persons. The Chief Executive may, as he or she deems necessary, invite other persons concerned to sit in on meetings of the Council.
If the Chief Executive does not accept a majority opinion of the Executive Council, he or she shall put the specific reasons on record.
Article 60 A Commission of Audit shall be established in the Macao Special Administrative Region. It shall function independently and its Director shall be accountable to the Chief Executive.
Article 61 The Government of the Macao Special Administrative Region shall be the executive authorities of the Region.
Article 64 The Government of the Macao Special Administrative Region shall exercise the following powers and functions:
(3) To conduct external affairs as authorized by the Central People's Government under this Law;
(6) To designate officials to sit in on the meetings of the Legislative Council to hear opinions or speak on behalf of the government.
Article 65 The Government of the Macao Special Administrative Region must abide by the law and be accountable to the Legislative Council of the Region: it shall implement laws passed by the Council and already in force; it shall present regular policy addresses to the Council; and it shall answer questions raised by members of the Council.
The majority of its members shall be elected.
Article 69 The term of office of the Legislative Council of the Macao Special Administrative Region shall be four years, except for the first term which shall be stipulated otherwise.
Article 70 If the Legislative Council of the Macao Special Administrative Region is dissolved by the Chief Executive in accordance with the provisions of this Law, it must, within 90 days, be reconstituted in accordance with Article 68 of this Law.
Article 71 The Legislative Council of the Macao Special Administrative Region shall exercise the following powers and functions:
(2) To examine and approve budgets introduced by the government; and examine the report on audit introduced by the government;
(3) To decide on taxation according to government motions and approve debts to be undertaken by the government;
(5) To debate any issue concerning public interests;
(6) To receive and handle complaints from Macao residents;
(8) To summon, as required when exercising the above-mentioned powers and functions, persons concerned to testify or give evidence.
Article 73 In case of absence of the President of the Legislative Council of the Macao Special Administrative Region, the Vice President shall act as President.
In the event that the office of President or of Vice President of the Legislative Council becomes vacant, new President or Vice President shall be elected.
Article 74 The President of the Legislative Council of the Macao Special Administrative Region shall exercise the following powers and functions:
(2) To decide on the agenda, giving priority to government bills for inclusion in the agenda upon the request of the Chief Executive;
(3) To decide on the dates of meetings;
(4) To call special sessions during the recess;
(5) To call emergency sessions on his or her own or upon the request of the Chief Executive; and
Article 75 Members of the Legislative Council of the Macao Special Administrative Region may introduce bills in accordance with the provisions of this Law and legal procedures. Bills which do not relate to public expenditure or political structure or the operation of the government may be introduced individually or jointly by members of the Council. The written consent of the Chief Executive shall be required before bills relating to government policies are introduced.
Article 77 The quorum for the meeting of the Legislative Council of the Macao Special Administrative Region shall be not less than one half of all its members. Except otherwise prescribed by this Law, bills and motions shall be passed by more than half of all the members of the Council.
(1) When he or she loses the ability to discharge his or her duties as a result of serious illness or other reasons;
(2) When he or she assumes posts which he or she is not permitted by law to hold concurrently;
(4) When he or she breaches his or her oath; and
(5) When he or she is convicted and sentenced to imprisonment for more than 30 days for a criminal offense committed within or outside the Region.
Article 82 The courts of the Macao Special Administrative Region shall exercise the judicial power.
Article 83 The courts of the Macao Special Administrative Region shall exercise judicial power independently. They shall be subordinated to nothing but law and shall not be subject to any interference.
The power of final adjudication of the Macao Special Administrative Region shall be vested in the Court of Final Appeal of the Region.
The structure, powers and functions as well as operation of the courts of the Macao Special Administrative Region shall be prescribed by law.
Article 85 The primary courts of the Macao Special Administrative Region may, when necessary, establish special courts.
The previous system concerning criminal prosecution shall be maintained.
Article 86 An administrative court shall be established in the Macao Special Administrative Region. It is the court which shall have jurisdiction over administrative and tax cases. If a party refuses to accept a judgment by the administrative court, he or she shall have the right to file an appeal with an intermediate court.
The appointment and removal of the judges of the Court of Final Appeal shall be reported to the Standing Committee of the National People's Congress for the record.
Article 88 The presidents of courts of the Macao Special Administrative Region at all levels shall be chosen from among judges and appointed by the Chief Executive.
The President of the Court of Final Appeal of the Macao Special Administrative Region shall be a Chinese citizen who is a permanent resident of the Region.
Article 89 The judges of the Macao Special Administrative Region shall exercise judicial power according to law, instead of according to any order or instruction, except in the situation as prescribed in paragraph 3 of Article 19 of this Law.
Judges shall be immune from legal action for discharging his or her judicial functions.
During the term of his or her office, a judge shall not concurrently assume other public or private posts, nor shall he or she assume any post in organizations of a political nature.
The Procurator-General of the Macao Special Administrative Region shall be a Chinese citizen who is a permanent resident of the Region, shall be nominated by the Chief Executive and appointed by the Central People's Government.
Procurators shall be nominated by the Procurator-General and appointed by the Chief Executive.
The structure, powers and functions as well as operation of the procuratorates shall be prescribed by law.
Article 92 On the basis of the system previously operating in Macao, the Government of the Macao Special Administrative Region may make provisions for local lawyers and lawyers from outside Macao to practice in the Region.
Article 99 The Government of the Macao Special Administrative Region may employ Portuguese and other foreign nationals previously serving in the public service in Macao, or those holding permanent identity cards of the Region, to serve as public servants in government departments at all levels, unless otherwise provided by this Law.
These individuals shall be employed only in their individual capacities and shall be responsible to the Government of the Macao Special Administrative Region.
Article 100 The appointment and promotion of public servants shall be on the basis of their qualifications, experience and ability. Macao's previous system of employment, discipline, advanced and regular promotion may basically remain unchanged, but may be improved along with the development of the Macao society.
Article 103 The Macao Special Administrative Region shall, in accordance with law, protect the right of individuals and legal persons to the acquisition, use, disposal and inheritance of property and their right to compensation for lawful deprivation of their property.
The ownership of enterprises and the investments from outside the Region shall be protected by Law.
Article 106 The Macao Special Administrative Region shall practice an independent taxation system.
The Macao Special Administrative Region shall, taking the low tax policy previously pursued in Macao as reference, enact laws on its own concerning types of taxes, tax rates, tax reductions, allowances and expenditures, and other matters of taxation. The taxation system for franchised businesses shall be otherwise prescribed by law.
The Government of the Macao Special Administrative Region shall, on its own, formulate monetary and financial policies, safeguard the free operation of financial markets and all kinds of financial institutions, and regulate and supervise them in accordance with law.
Article 108 The Macao Pataca, as the legal tender in the Macao Special Administrative Region, shall continue to circulate.
The authority to issue Macao currency shall be vested in the Government of the Macao Special Administrative Region. The issue of Macao currency must be backed by a 100 per cent reserve fund. The system regarding the issue of Macao currency and the reserve fund system shall be prescribed by law.
The foreign exchange reserve of the Macao Special Administrative Region shall be managed and controlled by the Government of the Macao Special Administrative Region according to law.
Article 110 The Macao Special Administrative Region shall maintain the status of a free port and shall not impose any tariff unless otherwise prescribed by law.
Article 111 The Macao Special Administrative Region shall pursue the policy of free trade and safeguard the free movement of goods, intangible assets and capital.
Article 112 The Macao Special Administrative Region shall be a separate customs territory.
The Macao Special Administrative Region may, using the name "Macao, China," participate in relevant international organizations and international trade agreements (including preferential trade arrangements), such as the General Agreement on Tariffs and Trade and arrangements regarding international trade in textiles.
Export quotas, tariff preferences and other similar arrangements, which are obtained or made by the Macao Special Administrative Region or which were obtained or made but remain valid, shall be enjoyed exclusively by the Region.
Article 113 The Macao Special Administrative Region may issue its own certificates of origin for products in accordance with prevailing rules of origin.
Article 114 The Macao Special Administrative Region shall, in accordance with law, protect the free operation of industrial and commercial enterprises and make its own policies on the development of industry and commerce.
The Government of the Macao Special Administrative Region shall improve the economic environment and provide legal guarantees for promoting the development of industry and commerce and for encouraging investments, technological progress and development new industries and new markets.
The Macao Special Administrative Region shall establish consultative co-ordination organizations composed of representatives from the government, the employers' organizations and the employees' organizations.
Article 116 The Macao Special Administrative Region shall maintain and improve Macao's previous systems of shipping management and shipping regulation, and make shipping policy on its own.
Private shipping businesses and shipping-related businesses and terminals in the Macao Special Administrative Region may continue to operate freely.
Article 119 The Macao Special Administrative Region shall carry out the protection of environment in accordance with law.
The grant or renewal of land leases after the establishment of the Macao Special Administrative Region shall be dealt with in accordance with the relevant land laws and policies of the Region.
Article 121 The Government of the Macao Special Administrative Region shall, on its own, formulate policies on education, including policies regarding the educational system and its administration, the language of instruction, the allocation of funds, the examination system, the recognition of educational qualifications and the system of academic awards so as to promote educational development.
Community organizations and individuals may, in accordance with law, run educational undertakings of various kinds.
Article 122 The existing educational institutions of all kinds in Macao may continue to operate. All educational institutions in the Macao Special Administrative Region shall enjoy their autonomy and teaching and academic freedom in accordance with law.
Educational institutions of all kinds may continue to recruit staff and use teaching materials from outside the Macao Special Administrative Region. Students shall enjoy freedom of choice of educational institutions and freedom to pursue their education outside the Macao Special Administrative Region.
Article 125 The Government of the Macao Special Administrative Region shall, on its own, formulate policies on culture, including literature, art, broadcasting, film and television programs.
The Government of the Macao Special Administrative Region shall protect by law scenic spots, historical sites and other historical relics as well as the lawful rights and interests of the owners of antiques.
Article 126 The Government of the Macao Special Administrative Region shall, on its own, formulate policies on press and publication.
Article 127 The Government of the Macao Special Administrative Region shall, on its own, formulate policies on sports. Non-governmental sports organizations may continue to exist and develop in accordance with law.
Article 128 The Government of the Macao Special Administrative Region, consistent with the principle of religious freedom, shall not interfere in the internal affairs of religious organizations or in the efforts of religious organizations and believers in Macao to maintain and develop relations with their counterparts outside Macao, or restrict religious activities which do not contravene the laws of the Region.
Religious organizations shall, in accordance with law, enjoy the rights to acquire, use, dispose of and inherit property and the right to receive donations. Their previous property rights and interests shall be protected by law.
The Government of the Macao Special Administrative Region shall, in accordance with the relevant regulations, recognize the professions and the professional organizations recognized prior to the establishment of the Region and may, as required by social development and in consultation with the parties concerned, recognize new professions and professional organizations.
Article 131 local organizations providing social services in the Macao Special Administrative Region may, on their own, decide their forms of service, provided that the law is not contravened.
The Central People's Government shall, in accordance with the circumstances and needs of the Region, take measures to ensure that the Macao Special Administrative Region shall continue to retain its status in an appropriate capacity in those international organizations of which the People's Republic of China is a member and in which Macao participates in one capacity or another.
The Central People's Government shall, in accordance with the circumstances and needs of the Region, facilitate the continued participation of the Macao Special Administrative Region in an appropriate capacity in those international organizations in which Macao is a participant in one capacity or another, but of which the People's Republic of China is not a member.
Article 138 The application to the Macao Special Administrative Region of international agreements to which the People's Republic of China is a member or becomes a party shall be decided by the Central People's Government, in accordance with the circumstances and needs of the Region, and after seeking the views of the government of the Region.
Article 140 The Central People's Government shall assist or authorize the Government of the Macao Special Administrative Region to negotiate and conclude visa abolition agreements with relevant foreign states or regions.
Article 141 The Macao Special Administrative Region may, as necessary, establish official or semi-official economic and trade missions in foreign countries and shall report the establishment of such missions to the Central People's Government for the record.
Consular and other official missions established in Macao by states which have formal diplomatic relations with the People's Republic of China may be maintained.
According to the circumstances of each case, consular and other official missions established in Macao by states which have no formal diplomatic relations with the People's Republic of China may either remain or change to semi-official missions.
The courts of the Macao Special Administrative Region may also interpret other provisions of this Law in adjudicating cases.
Article 144 The power of amendment of this Law shall be vested in the National People's Congress.
No amendment to this Law shall contravene the established basic policies of the People's Republic of China regarding Macao.
Documents, certificates and contracts valid under the laws previously in force in Macao, and the rights and obligations provided for in such documents, certificates or contracts shall continue to be valid and be recognized and protected by the Macao Special Administrative Region, provided that they do not contravene this Law.
Method for the Selection of the Chief Executive of the Macao Special Administrative Region
1. The Chief Executive shall be elected by a broadly representative Election Committee in accordance with this Law and appointed by the Central People's Government.
2. The Election Committee shall be composed of 300 members from the following sectors:
Cultural and educational sectors and other professions 80
The term of office of the Election Committee shall be five years.
3. The delimitation of the various sectors, the organizations in each sector eligible to return Election Committee members and the number of such members returned by each of these organizations shall be prescribed by an electoral law enacted by the Macao Special Administrative Region in accordance with the principles of democracy and openness.
Members of the Election Committee shall vote in their individual capacities.
5. The Election Committee shall, on the basis of the list of the nominees, elect the Chief Executive designate by secret ballot on a one-person-one-vote basis. The specific election method shall he prescribed by the electoral law.
6. The first Chief Executive shall be selected in accordance with the "Decision of the National People's Congress of the People's Republic of China on the Method for the Election of the First Government, the First Legislative Council and the First Judiciary of the Macao Special Administrative Region."
I. In the first term, the Legislative Council shall be formed in accordance with the "Decision of the National People's Congress of the People's Republic of China on the Method for the Formation of the First Government, the First Legislative Council and the First Judiciary of the Macao Special Administrative Region."
Members indirectly returned 10
III. If there is a need to change the method for forming the Legislative Council of the Macao Special Administrative Region in and after 2009, such amendments must be made with the endorsement of two-thirds majority of all the members of the Council and the consent of the Chief Executive, and they shall he reported to the Standing Committee of the National People's Congress for the record.
2. Resolution on the National Day of the People's Republic of China
7. Law of the People's Republic of China on the National Emblem
Law of the People’s Republic of China on the Promotion of Small and Medium-sized Enterprises
(Adopted at the 28th Meeting of the Standing Committee of the Ninth National People’s Congress of the People’s Republic of China on June 29, 2002)
The standard for classifying small and medium-sized enterprises shall be formulated by the department of the State Council in charge of enterprises work according to the indexes such as the number of employees, the sales value and the total assets of the enterprises and in light of the characteristics of the industries, and the standard shall be subject to the approval of the State Council.
Article 3 The State shall apply the guidelines with respect to small and medium-sized enterprises such as actively supporting, strengthening the direction, improving the service, regulating according to law and guaranteeing their rights and interests, and thus create favorable environment for the establishment and development of small and medium-sized enterprises.
The department of the State Council in charge of enterprises work shall organize the implementation of the policies, arrangements and planning of the State with respect to small and medium-sized enterprises, and render comprehensive coordination, direction and service to the small and medium-sized enterprises work of the whole country.
The relevant departments of the State Council shall, in accordance with the policies and arrangements of the State on small and medium-sized enterprises, render direction and service to the small and medium-sized enterprises work within their respective scope of duties.
Article 6 The State shall protect the legitimate investment of small and medium-sized enterprises, their investors, and the legitimate proceeds obtained from the investment. No unit or individual may infringe upon the property and legitimate proceeds of small and medium-sized enterprises.
No unit may, in violation of laws and regulations, collect charges from or impose fines on small and medium-sized enterprises, or apportion obligations of property and money to small and medium-sized enterprises. Small and medium-sized enterprises shall have the right to refuse and to report and accuse the acts violating the provisions mentioned above.
Article 7 The administrative authorities shall safeguard the legitimate rights and interests of small and medium-sized enterprises, protect their right to participate in fair competition and fair trade according to law, and may not discriminate against them or impose unfair trade conditions on them.
Article 8 Small and medium-sized enterprises shall observe the laws and regulations of the State on labor safety, occupational health, social security, protection of resources and environment, quality, taxation and finance, etc. and shall operate and manage according to law, and may not infringe upon the legitimate rights and interests of the employees or damage the public interests.
1) the special capital of support for the development of small and medium-sized enterprises arranged by the central budget;
The state shall, by means of taxation policies, encourage donations to the development fund for small and medium-sized enterprises.
1) assistance and service for the initiation of business;
2) support for establishment of the credit guarantee system for small and medium-sized enterprises;
5) support for staff training and information consultancy by small and medium-sized enterprise service agencies;
6) support for development of international market by small and medium-sized enterprises;
7) support for clean production by small and medium-sized enterprises;
The methods for the establishment, use and management of the development fund for small and medium-sized enterprises shall be formulated by the State Council separately.
The People’s Bank of China shall enhance the support given to small and medium-sized enterprises, and encourage the commercial banks to adjust the credit structure to give more credit support to small and medium-sized enterprises.
Article 15 The financial institutions shall provide financial support to small and medium-sized enterprises, make efforts to improve the financial service, change the service style, enhance the service sense and improve the service quality.
The commercial banks and credit cooperatives shall improve the credit management, expand the service area, develop the financial products suitable for small and medium-sized enterprises, adjust the credit structure and provide services to small and medium-sized enterprises in the aspects of credit, settlement, financial consultancy, investment management, etc.
The policy-based financial institutions of the State shall, within their respective scope of business, adopt various kinds of forms to provide services to small and medium-sized enterprises.
Article 17 The State shall encourage various kinds of venture capital institutions established, through taxation policy, to invest more capital in small and medium-sized enterprises.
Article 18 The State shall promote the construction of the credit system of small and medium-sized enterprises, establish the credit information collection and evaluation system, and realize the socialization of the inquiry, exchange and share of credit information of small and medium-sized enterprises.
Article 20 The State shall encourage various kinds of guarantee institutions to provide credit guarantee to small and medium-sized enterprises.
Article 21 The State shall encourage small and medium-sized enterprises to carry out various kinds of mutual financing guarantee.
Article 22 The relevant governmental departments shall actively create conditions, provide necessary and relevant information and consultation services, and, according to the needs of the development of small and medium-sized enterprises, rationally arrange necessary sites and facilities in the construction planning of cities and villages to support the initiation of business of small and medium-sized enterprises.
The relevant governmental departments shall take measures to expand the channels to enable small and medium-sized enterprises to absorb graduates from the institutions of higher and medium learning.
Article 25 The local people’s governments shall, according to the actual situations, provide policy consultation and information services in the aspects of industry and commerce, taxation, financing, labor and social security, etc. to the persons initiating business.
Article 27 The State shall encourage small and medium-sized enterprises to, in accordance with the policies of the State on utilization of foreign investment, introduce in foreign capital, advanced technology and management experience, and to launch Chinese-foreign equity joint ventures and Chinese-foreign cooperative joint ventures.
Article 28 The State shall encourage individuals or legal persons to participate in the initiation of small and medium-sized enterprises by investing industrial property or non-patented technology, etc. according to law.
