Article 21

Chinese and foreign partners shall distribute income or products and shall bear the responsibility for risks or losses in accordance with the provisions stipulated in the co-operative enterprise contract.

When the Chinese and foreign partners agree in the co-operative enterprise contract that, on the expiry of the duration of the term of co-operation, all the fixed assets of the co-operative enterprise shall revert to ownership by the Chinese partner, methods to allow the foreign partner to recover its investment within the term of co-operation may be stipulated in the co-operative enterprise contract.

If a co-operative enterprise contract stipulates that the foreign partner shall recover its investment before paying income tax, an application shall be submitted to the finance and taxation organs which shall examine and determine an approval of the matter in accordance with the relevant State provisions on taxation.

When the foreign partner recoups its investment within the period of co-operation according to the provisions of the previous paragraph, the Chinese and foreign partners shall be responsible for the liabilities of the co-operative enterprise in accordance with the provisions of the relevant laws and the stipulations of the co-operative enterprise contract.

Article 22

Dividends remaining after a foreign partner has fulfilled all obligations as prescribed in the laws and regulations and the stipulations of the co-operative enterprise contract, and other legal income and funds distributed by the co-operative enterprise at the termination of co-operation may be remitted abroad in accordance with the law.

Income in the form of wages or other legal earnings of employees of foreign nationality of a co-operative enterprise may be remitted abroad after payment of individual income tax in accordance with the law.

Article 23

On the expiry or premature termination of the term of a co-operative enterprise, assets, claims and debts shall be liquidated in accordance with legal procedures. Chinese and foreign partners shall determine ownership of co-operative enterprise property in accordance with the stipulations of the co-operative enterprise contract.

On the expiry or premature termination of the term of a co-operative enterprise, the procedures for the cancellation of registration shall be carried out with the administration for industry and commerce and the taxation organ.

Article 24

The duration of the term of co-operation of a co-operative enterprise shall be determined through a consultation by the Chinese and foreign partners and specified in the co-operative enterprise contract. If the Chinese and foreign partners agree to extend the term of co-operation, an application shall be submitted to the examining and approving organ 180 days before the expiry of the term of co-operation. The examining and approving organ shall decide whether or not to approve the application within 30 days of receipt.