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Law of the People's Republic of China on Township
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1997.01.01
STANDING COMMITTEE OF THE NATIONAL PEOPLE'S CONGRESS
    ORDER OF THE PRESIDENT OF THE PEOPLE'S REPUBLIC OF CHINA
                 No. 76
The Law of the People's Republic of China on Township Enterprises,
adopted at the 22nd Meeting of the Standing Committe of the Eighth
National People's Congress of the People's Republic of China on October
29, 1996, is hereby promulgated and shall enter into force as of January
1, 1997.
Jiang Zemin
President of the People's Republic of China
October 29, 1996
LAW OF THE PEOPLE'S REPUBLIC OF CHINA ON TOWNSHIP ENTERPRISES
(Adopted at the 22nd Meeting of the Standing Committee of the Eighth
National People's Congress on October 29, 1996, promulgated by Order No.
76 of the President of the People's Republic of China on October 29,
1996, and effective as of January 1, 1997)
Article 1 This Law is enacted for the purpose of facilitating and
guiding the sound and sustained development of township enterprises,
protecting their legitimate rights and interests, standardizing their
operations, bringing about a prosperous rural economy and promoting the
socialist modernization drive.
Article 2 The term "township enterprises" as used in this Law refers to
the different types of enterprises that are established in townships
(including the villages under their jurisdiction) with the bulk of their
capital being invested by rural economic collectives or farmers and that
undertake the obligations to support agriculture.
The words "the bulk of their capital" as used in the preceding paragraph
mean that the capital invested by the rural economic collectives or
farmers exceeds 50 percent of the total, or is less than 50 percent but
enough to play a holding or dominating role.
A township enterprise that meets the qualifications for an enterprise
legal person shall obtain the status of a legal person as an enterprise.
Article 3 Township enterprises provide the mainstay of the rural economy
and constitute an important component of the national economy.
The main tasks of township enterprises are to develop production of
commodities in light of market demands, provide service to the public,
increase the supply of marketable products, absorb surplus rural labor,
help  raise the income of farmers, support agriculture,  advance
agricultural and rural modernization and promote the development of the
national economy and social undertakings.
Article 4 In developing township enterprises, the principle of taking
the rural collective economy as the leading force and promoting  the
simultaneous development of the diversified economic sectors shall be
adhered to.
Article 5 The State gives active support to township enterprises, makes
rational planning for their development, provides different guidance to
different types of them and administer their affairs pursuant to law.
Article 6 The State cncourages and mainly hepls the  economically
underdeveloped areas and areas inhabited by ethnic minorities to develop
township enterprises, and encourages township enterprises and other
economic organizations in economically developed areas to support, by
different means, the economically underdeveloped areas and  areas
inhabited by ethnic minorities in their efforts to run township
enterprises.
Article 7 The administrative department for township enterprises under
the State Council and other relevant departments shall, in accordance
with their respective functions and responsibilities, make plans for and
arrange coordination among, exercise supervision over and provide
service  to  township enterprises nationwide;  the  administrative
departments for township enterprises and other relevant departments of
the local people's governments at or above the county level shall, in
accordance with their respective functions and responsibilitis, do  the
same with regard to township enterprises within their respective
administrative regions.
Article 8 The township enterprises established through registration
pursuant to law shall go through the procedure of registration for the
record  with  the local administrative  department  for  township
enterprises.
Where a township enterprise wishes to change its name or domicile, or to
divide itself or merger with another, to suspend operation of close
down,  it  shall, after making the registration  of  alteration,
establishment  of cancellation according to law, report  to  the
administrative department for township enterprises for the record.
Article 9 The branches established in cities by township enterprises and
the enterprises set up by rural economic collectives in cities to
undertake the obligations in support of agriculture shall be treated as
township enterprises.
Article 10 Where a township enterprise is eat

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