Article　 16.　 Articles　 of　 association　shall　include　the
following main items:
(1) The name of the joint venture and its legal address;
(2) The purpose, business scope and duration of the joint venture;
　(3)　 The　 names,　countries　of　registration and legal addresses of
parties　to　the　 joint　 venture,　 and　 the　names,　professions and
nationalities of the legal representatives thereof;
　(4)　The　total　amount of investment, registered capital of the joint
venture,　each　 party's　investment proportion, stipulations concerning
the　assignment　of　 investment,　the　ratio of profit distribution and
losses to be borne by parties to the joint venture;
　(5)　 The composition of the board of directors, its responsibilities,
powers　and　 rules　 of　 procedure,　 the　 term　 of　 office　of the
directors, and the responsibilities of its chairman and vice-chairman;
　(6)　 The　 setting up of management organizations, rules for handling
routine　affairs,　 the　 responsibilities　 of　 the　general　manager,
deputy　　general　 manager　　and　　other　　high-ranking　 management
personnel,　and the method of their appointment and dismissal;
(7) Principles governing finance, accounting and auditing;
(8) Dissolution and liquidation;
(9) Procedures for amendment of the articles of association.
　　　Article　17.　The　agreement, contract and articles of association
shall　come　 into　 force　after　being　approved　by　the　examination
and approval authority. The same applies in the event of amendments.
　　　 Article　 18.　The　examination　and　approval　authority and the
registration　 and　　administration　　office　　are　 responsible　for
supervising　and inspecting the execution of the joint venture contracts
and articles of association.
CHAPTER III FORM OF ORGANIZATION AND REGISTERED CAPITAL
　　 Article 19. A joint venture is a limited liability company.
　Each　 party　 to　 the　joint　venture is liable to the joint venture
within the limit of the capital subscribed by it.
　　　Article　20. The total amount of investment (including loans) of a
joint　venture　 refers to the sum of capital construction funds and the
circulating　funds　 needed　for the joint venture's production scale as
stipulated　in the contract and the articles of association of the joint
venture.
　　　 Article　 21.　 The　 registered　 capital　 shall　 generally be
presented　in　total　　amount　 of　 investment　 registered　 at　 the
registration　 and　administration　 office for the establishment of the
joint　venture.　It　should　be　 the　 total　 amount　 of　 investment
subscribed　by　parties to the joint venture.
　The　 registered　capital shall generally be presented in Renminbi, or
may　be　in　a　foreign currency agreed upon by the parties to the joint
venture.
　　　 Article　 22.　A　joint　venture　shall not reduce its registered
capital during the term of the joint venture.
　　　 Article　23.　If one party to the joint venture intends to assign
all　or　part　 of　 his　 investment　 subscribed　to　a　third　party,
consent　shall be obtained　from　the　other party to the joint venture,
and approval from the examination and approval authority is required.
　When　 one　 party　assigns　all　or part of his investment to a third
party, the other party has pre-emptive right.
　When　 one　 party　 assigns　 his　 investment　subscribed to a third
party,　the　conditions　 given　shall not be more favourable than those
given to the other party to the joint venture.
　No　 assignment　shall be made effective should there be any violation
of the above stipulations.
　　　 Article　　24.　　Any　increase,　assignment　or　other　disposal
of　 the　registered　 capital of a joint venture shall be approved by a
meeting　of　the　board　 of　 directors　 and submitted to the original
examination　 and　 approval　 authority　 for　 approval.　Registration
procedures　for changes shall be dealt with at the original registration
and administration office.
CHAPTER IV WAYS OF CONTRIBUTING INVESTMENT
　　　 Article　 25.　Each participant to a joint venture may contribute
cash　 or　 buildings,　 premises,　 equipment　 or　 other　 materials,
industrial　property,　know-how,　 right　 to　 the　 use　of　a site as
investment,　the　value　of　which　shall　 be　 ascertained.　 If　 the
investment　 is　 in　 the　form　of buildings, premises,　equipment　or
other　materials,　industrial　property or known-how, the　prices　shall
be　ascertained　through　consultation　by　the　parties　to　the　joint
venture　 on　the　basis of fairness and reasonableness, or evaluated by
the third party agreed upon by parties to the joint venture.
　　　 Article　 26.　The　foreign　currency　contributed by the foreign
participant　shall　 be　 converted　 into　Renminbi　according　to　the
exchange　rate　announced　by　 the　 State　General　Administration　of
Foreign　 Exchange　 Control　 of　the