Regulations on Zhongguancun Science Park
(Adopted on December 8, 2000 at the 23rd Session of the Standing
Committee of the 11th People¡¯s Congress of Beijing Municipality)
Chapter I General Provisions
Article 1 These Regulations are formulated for the purposes of promoting and ensuring the construction and sustainable development of Zhongguancun Science Park (hereinafter referred to as ZSP).
Article 2 ZSP consists of Haidian Zone, Fengtai Zone , Changping Zone, Electronic City Zone, Yizhuang Science & Technology Zone and other areas as designated by the Municipal People's Government according to the Replies of the State Council.
Article 3 These Regulations shall apply to organizations and individuals in ZSP.
These Regulations shall also apply to organizations and individuals outside ZSP who conduct activities governed by these Regulations within the ZSP.
Article 4 ZSP is the experimental area for comprehensive reforms that are intended to push ahead with the strategy of developing the country by science and education and the development of market economy. It is to be a national model of scientific and technological innovation and a base for the incubation and propagation of scientific and technological achievements, the industrialization of new- and high-technologies and the training of innovative talents.
Article 5 Construction and development of ZSP shall be based on scientific and technological innovations, with Haidian Zone at the core. By transforming the concentrated intellectual resources of the Zhongguancun area into market-oriented scientific and technological innovations and by incubating start-up ventures and achieving scale economy in production, those innovations shall be spread across the city and the nation, and new- and high-technology industrialization shall be advanced.
Article 6 The emphasis of ZSP is to develop new- and high-technology industries and other intellect-intensive industries.
Article 7 Organizations and individuals in ZSP shall abide by laws, regulations and rules.
Property rights of organizations and individuals over their assets invested in the ZSP, their rights over earnings produced by such assets as well as other legitimate rights and interests shall be protected by law. They shall not be asserted illegally or infringed upon by any organization or individual.
Any organization or individual may conduct activities not explicitly prohibited by laws, regulations and rules in ZSP, provided that they do not damage social public interests, disturb social and economic order or contravene social public morals.
Article 8 The People's Governments of Beijing Municipality at all levels and their departments shall, according to the principles of openness, equity and fairness, provide services to organizations and individuals in the ZSP that engage in innovative activities and enterprise development, and shall establish a favorable environment conducive to innovation and enterprise development.
Chapter II Market Players and Competition Order
Article 9 Any organization or individual may make investments, establish enterprises or set up organizations in the ZSP in accordance with the law.
The Department for Industry and Commerce Administration shall directly examine and approve the registration application for enterprises to be established in ZSP, provided that such enterprises meet the requirements for establishment; and the issues subject to advance examination and approval according to law shall be made public by the Municipal People's Government.
Where enterprises to be established in ZSP apply for registration, the Department for Industry and Commerce Administration shall not examine and decide their concrete business scopes, except for those businesses that are prohibited by laws and regulations.
Article 10 Organizations and individuals are encouraged to set up new- and high-technology enterprises as well as research and development institutions in line with ZSP¡¯s key development fields.
All legally accredited new- and high tech enterprises in ZSP shall enjoy preferential policies as set forth by the State and this municipality.
Article 11 The contributors of an enterprise's capital may, through mutual consultation, determine the proportion of an enterprise¡¯s registered capital that may be accounted for by the high-technology; however, where the State assets are contributed, State regulations governing the administration of State assets shall be respected.
Article 12 Enterprises and other market players in ZSP may implement equity futures programs, profit sharing, annual salary, and earnings distribution systems based on technological, managerial and other intellect-based factors. Publicly traded companies with approval may issue stock futures.
Article 13 Enterprises, colleges, universities and scientific research institutes are encouraged to jointly set up enterprises and organizations engaging in technological innovations, or to jointly undertake research and development activities related to technological innovation projects. The government may provide funding support to technological innovation activities that combine production, learning and research.
Teachers, researchers and students of colleges, universities and scientific research institutes are encouraged to combine their research projects with the technological innovations of enterprises. Enterprises are encouraged to provide research and probation facilities to students of colleges and universities. Colleges, universities and scientific research institutes are encouraged to train technological and managing personnel for enterprises.
Article 14 Any scientific or technological research achievements held by a college, university or scientific research institute in the ZSP that have not been commercially applied within one year from its development, may be so applied by their developers and participants in their scientific and technological development on the condition that this does not alter ownership rights over the scientific and technological achievements. Such developers and participants shall enjoy rights and interests as specified in agreements concluded with their units. The unit of the individual who produces scientific and technological research products on-the-job and then establishes an enterprise himself in order to commercially apply such products, may specify the equity rights or capital proportion which it may hold in the enterprise and may also gain revenue through the transfer of technology according to law.
Article 15 Teachers and scientific researchers of colleges, universities and scientific research institutes may leave their posts or work part-time for conducting innovative and business start-up activities in ZSP. Those who leave their posts to start businesses may through agreements with their original units, retain personnel relationships with their original units over a specified period of time, and may also return to their original units to compete for posts.
Students of colleges and universities and scientific research institutes may set up new- and high-technology enterprises in ZSP, undertake technology development activities or work on the commercial application of scientific and technological achievements in enterprises. Students who want to retain their student status may, with the approval of their units, maintain their student status for a specified period of time. The duration of such period shall be specified in contracts concluded between the schools or scientific research institutions and the students.
Article 16 ZSP shall establish and perfect a social intermediary service system to provide services for enterprises and other market players conducting innovative and business start-up activities.
Any accredited domestic or overseas professional intermediary service organizations may do business in accordance with the law in ZSP.
Any professionally qualified domestic or overseas organizations or individuals may establish intermediary service agencies in ZSP in accordance with the law.
Article 17 Intermediary service organizations and professionals shall stick to the principles of neutrality, objectivity, fairness and good faith and conduct intermediary service activities in accordance with laws, regulations and industry norms.
Intermediary service organizations and professionals shall be regulated through trade associations and subject to the supervision of administrative organs.
Article 18 Enterprises, colleges, universities, scientific research institutes as well as other community organizations and individuals are encouraged to establish university science and technology parks, business-start-up parks, business-start-up service centers as well as other forms of general incubators or specialized incubators to provide incubated enterprises with business start-up services. Accredited incubators shall enjoy the benefits of this city's preferential policies.
Incubators referred to in these Regulations mean special organizations that provide sites, instruments, equipment, funds or information to foster the growth of small enterprises at the initial stages of development and to reduce business start-up risks.
Article 19 Enterprises and other market players in ZSP are encouraged to establish trade associations and chambers of commerce according to law. Trade associations and chambers of commerce shall be self-regulated non-profit corporate legal entities.
Trade associations and chambers of commerce shall protect their members' rights and interests pursuant to their articles of association. They shall serve, guide and organize their members, and facilitate the exchange between members and the government. The actions of trade associations and chambers of commerce shall not exclude or restrict normal commercial competition.
Article 20 Market players in ZSP shall not exclude or restrict normal commercial competition through collusive price-setting, carving up markets, limiting production or other means.
Article 21 Market players in ZSP are prohibited to impose their commercial conditions on other market players by exploiting dominant market positions.
Market players in ZSP are prohibited to exclude or limit other market players' operations or normal commercial competition by using market or facilities monopolies.
Article 22 Except otherwise agreed to in accordance with law, market players in ZSP shall not restrict the resale activities of their trading partners.
Article 23 The government and its subordinate departments shall adopt measures to curb monopolistic behaviors and maintain fair market competition order, and shall not abuse administrative powers to restrict normal commercial competition.
Chapter III Promotional Measures and Guarantees
Section 1 Venture Investment
Article 24 Domestic and overseas investors may undertake venture investment activities in ZSP.
Non-governmental domestic and overseas funds are encouraged to set up venture investment institutions in ZSP.
Article 25 Venture investment institutions may take the form of limited partnerships.
The partners of a limited partnership may include limited partners and general partners. Investors shall be limited partners, with their liabilities limited to their capital contributions. The managers of funds shall be general partners that assume unlimited liabilities.
The partners of a limited partnership shall conclude a partnership agreement in writing. They shall stipulate in the agreement the partners¡¯ proportions of equity holdings, distribution relations, operational and managerial jurisdictions and other rights and obligations relations.
Partners shall pay the income tax of a limited partnership separately. Partners who are natural persons shall pay personal income tax on their investment gains, while partners who are legal persons shall pay enterprise income tax on their investment gains.
Article 26 The registered capital of a venture investment institution may be paid in installments as agreed on by the capital contributors.
Venture investment institutions may utilize all their capitals for investment purposes.
Article 27 Venture investment institutions may get back their venture investments through enterprise acquisition and merger, redemption of equity rights, listing companies on stock markets as well as other methods.
Section 2 Funding Support
Article 28 The establishment of start-up funds for small and medium-sized enterprises (SME) is encouraged and those funds shall support the technological innovations of SMEs located in ZSP by means of matching fund appropriation schemes, equity rights investment programs and such other programs.
Article 29 The Municipal People's Government shall set up ZSP new- and high-technology industry development funds to support the development of new- and high-technology industry projects in ZSP that will lead to scale production through State Assets Management Companies and grants of interest-subsidized loans.
Article 30 Enterprises and other market players are encouraged to set up credit guarantee agencies in ZSP according to law to provide credit guarantees, mainly financial guarantees, to SMEs.
ZSP shall establish a credit guarantee agency risk reserve fund system and a system of financial limited compensation guarantee to compensate losses.
Section 3 Attraction of Talents
Article 31 Domestic and overseas experts are encouraged to engage in technological innovative activities, giving lectures, academic exchange and other cooperative activities in the ZSP for long or over a short period of time. Relevant units shall provide them with favorable work and living facilities.
Article 32 Persons studying abroad or technical and managerial talents from other provinces or cities whose expertise is needed for the development of the ZSP may be granted Residence Certificates for Work or registered as permanent residents according to relevant provisions of this Municipality, and they shall not be subject to quota restrictions on the number of persons moving into Beijing.
Newly graduated students from colleges, universities and scientific research institutes located in the administrative jurisdiction of this Municipality who are employed by new- and high-technology enterprises located in ZSP may be registered directly as permanent residents of this Municipality.
Article 33 Colleges, universities and scientific research institutes located in the administrative jurisdiction of this municipality shall not collect training fees or other charges from their newly graduated students who are employed by new- and high-tech enterprises in the ZSP, unless otherwise agreed to by both parties.
Article 34 Children of the persons referred to in Article 32(1) of these Regulations should attend neighborhood schools for receiving compulsory education, which shall be arranged by the departments for education administration of the districts where they live. No department or school shall collect fees beyond those authorized by the State or this Municipality. For children who would like to receive other types of education, relevant provisions of this Municipality shall apply.
Schools in the ZSP are encouraged to develop bilingual education programs.
Article 35 Persons studying abroad and working in the ZSP who have been naturalized as foreign citizens may apply to the public security organ for an alien residence permit valid for two years and a multiple exit-entry visa valid for one year. Those intending to stay in China only for a short time but unable to depart as scheduled may apply for a visa extension. Those who, due to time pressure or for other reasons, have not obtained an entry visa overseas, may apply for a port visa according to relevant regulations.
Article 36 Persons studying abroad who have obtained permanent residence abroad may, after paying taxes as required by law, convert into foreign currency all their lawful income from work for new- or high-technology enterprises located in the ZSP, and may carry or remit this foreign currency abroad in accordance with relevant provisions.
Article 37 Persons studying abroad who work in ZSP may take part in social insurance programs according to the provisions of this Municipality, with their continuous service years counted as their social insurance payment years. Where the years during which a person studying abroad worked prior to going abroad, during his/her stay abroad and after his/her return, may be counted cumulatively pursuant to relevant state provisions, they shall be so counted.
Individuals working in ZSP enterprises that were formerly staff members of institutions shall participate in the social insurance programs according to relevant provisions of this municipality. Their continuous service years in their former institutions shall be counted as their social insurance payment years.
Article 38 Persons studying abroad who employed to fill professional technological posts in ZSP shall not be subject to the quota restrictions on the number of persons moving into Beijing.
Persons studying abroad who have specialized foreign professional qualifications and whose country of residence has concluded an agreement on mutual recognition with the People's Republic of China, may apply for corresponding professional credentials in this Municipality.
Section 4 Protection of Intellectual Property Rights
Article 39 Intellectual property rights (IPR) of organizations and individuals in ZSP are protected by law and shall not be infringed upon by any organization or individual.
Enterprises, colleges, universities, scientific research institutes and their related personnel in ZSP are encouraged to apply for patents and the registration of trademarks and software copyrights so as to acquire independent IPR. Measures shall be adopted to protect independent IPR.
Article 40 ZSP shall protect the IPR of on-line information. Network operators shall adopt measures to protect the IPR of on-line information.
No organization or individual shall do any of the following without the approval of appropriate rights-holders:
1. making profits by transmitting other persons' copyrighted works via a network;
2. publicly releasing or adapting another person¡¯s copyrighted works via a network; or
3. infringing upon IPR by other means via a network.
Article 41 The production, reproduction or sale of pirated software or electronic publications in the ZSP is prohibited. State organs, enterprises and other market players are prohibited from using pirated software or electronic publications.
Article 42 Trade secrets of enterprises and other market players in the ZSP are protected by law. No organization or individual shall infringe upon another person¡¯s trade secrets by any means.
Enterprises and their employees may include confidentiality clauses in their labor contracts or conclude separate confidentiality agreements.
Employees of enterprises shall be obligated not to disclose trade secrets relating to the enterprises during employment and afterwards in accordance with the provisions of laws and contracts.
Article 43 Enterprises and their employees may include non-competition clauses in their labor contracts or confidentiality agreements, and may also make special non-competition contracts. Any non-competition clause or contract shall clearly define the scope and duration of restrictions on competitive behaviors. The duration of non-competition restrictions shall not exceed three years to the maximum, unless otherwise stipulated by laws or regulations. Where a trade secret becomes publicly known, any related non-competition clause or contract shall expire automatically.
Article 44 Any employee who knows or has the possibility to know trade secrets shall be bound by a non-competition agreement, and shall not, within a specified period after leaving an enterprise, do business for himself or for other persons that competes with the enterprise where he/she formerly worked.
An enterprise shall, as stipulated in a non-competition agreement, pay specific amounts of annual compensation to its former employees bound by the non-competition agreement. The amount of compensation shall not be less than half of the employee¡¯s annual salary for the last year of his/her employment in the enterprise.
Article 45 The provisions of Articles 42-44 of these Regulations shall apply to colleges, universities and scientific research institutes located in the ZSP. The provisions of Articles 43 and 44 of these Regulations shall apply to part-time employees or retired employees working in enterprises, colleges, universities and scientific research institutes located in the ZSP.
Section 5 Planning and Environment Protection
Article 46 The Municipal People's Government shall uniformly plan the construction and development of the ZSP in accordance with the overall plan of Beijing City, the development needs of the ZSP and the specific circumstances of each zone in the ZSP.
Article 47 The Municipal and District People's Governments shall adopt measures to address the problems of road traffic, city appearance, public security, garbage, sewage, noise and other factors detrimental to the environment in the ZSP.
Environmental impact assessments shall be carried out at the planning and building stages of development construction in the ZSP.
The establishment of enterprises and organizations that pollute the environment and hinder sustainable development in the ZSP is prohibited.
Article 48 First stage land development in the ZSP shall proceed according to ZSP¡¯s unified construction plan. When granting rights of usage over its land monopoly, the government shall do it through public bid invitation and bidding or by auctions in accordance with the law
Article 49 Investment in the municipal infrastructure, information infrastructure and other public facilities in the ZSP is encouraged.
The construction of infrastructure and public facilities in the ZSP shall follow ZSP¡¯s overall planning, and shall be done through public bid invitation and bidding in accordance with the law.
Article 50 The construction of information facilities in ZSP shall proceed in accordance with this city¡¯s overall plan for information facilities construction and adapt to the needs of scientific and technological innovation and network economy development. Information resources shall be developed and employed rationally so as to realize the integration of cable television, telecommunications and computer networks, and establish a high-speed broadband network for multi-media information transmission.
Broadband link-up systems shall be installed in the business areas and new residential areas of ZSP. New business and office buildings shall be equipped to satisfy the needs for high-speed data transmission as well as convenient and secure information services.
The construction of information facilities in ZSP shall be based on the establishment and advancement of a system of standards and indexes for information so as to safeguard information security.
Section 6 Other Provisions
Article 51 The establishment of markets for personnel, technology and other productive factors is encouraged so as to promote the orderly flow of talents, technologies, capital and other productive factors in ZSP.
Technology exchanges and enterprise property rights exchanges in the ZSP may set up membership-based systems. Membership-based technology exchanges and enterprise property rights exchanges shall be self-managed and operate according to laws, regulations and their respective articles of association.
Article 52 ZSP shall establish a credit service system so as to provide credit services to enterprises and other market players engaging in economic activities.
Article 53 The statistic index systems and methods of the Departments for Statistic Administration concerning ZSP shall adapt to the features of the ZSP and ensure compliance with international practices.
Article 54 Laboratories of colleges, universities and scientific research institutes located in ZSP that are qualified to be open shall open to the public. Units with such laboratories may collect reasonable fees.
Chapter IV International Economic and Technological Cooperation
Article 55 Enterprises and scientific research institutes located in ZSP are encouraged to undertake overseas investment and financing, transnational business and research and development activities, and international economic, technological and personnel exchanges and cooperation.
Overseas organizations and individuals are encouraged to establish new- and high-technology enterprises, research and development institutions or regional headquarters in ZSP. Such enterprises, research and development institutions and regional headquarters shall enjoy preferential treatments provided by the State and this Municipality with respect to examination and approval, registrations, extensions of credit, handling of customs formalities, border-crossing of personnel, use of sites, public facilities, establishment of bonded factories and warehouses and taxation.
Article 56 Overseas economic organizations or individuals may establish new- and high-technology joint ventures and cooperative enterprises in ZSP with domestic organizations or individuals.
Overseas economic organizations or individuals that set up joint ventures or cooperative enterprises in ZSP may open foreign exchange accounts in banks designated to handle foreign exchange after prior examination and approval of the registration of their enterprise names and obtaining approval from the authorities for foreign exchange control.
Overseas companies may set up branch offices in the ZSP.
Article 57 New- and high-technology enterprises and other production enterprises and scientific research institutions located in the ZSP that are qualified for import and export businesses, upon registering and filing with the administrative department in charge of foreign trade in accordance with the law, may conduct import and export activities by themselves.
Article 58 Employees of new- and high-technology enterprises located in ZSP who need go abroad on business or invite foreign persons engaging in economic and trade activities or scientific and technological research to visit China, may carry out examination and approval procedures through authorized administrative department in ZSP. For those traveling abroad on business temporarily, a multiple exit-entry system that requires examination and approval only once a year shall be instituted.
Article 59 Overseas economic, science and technology, educational and cultural institutions may build, rent or purchase houses or rent sites in ZSP according to relevant laws and regulations of the People's Republic of China.
Chapter V Norms for Government Actions
Article 60 Administrative organs and their staff members shall act according to law, their administrative actions shall be in conformity with their statutory functions and powers and statutory procedures, and they shall uphold the legitimate rights and interests of market players in ZSP.
Administrative organs shall establish delegation of law enforcement responsibilities and fault investigation systems.
Article 61 The Municipal and District People's Governments and their departments shall make public the information concerning government affairs and services of ZSP.
Regulations and other normative documents concerning issues related to ZSP made by municipal organs shall be published or released before they take effect. They shall be published without delay in bulletins, government gazettes and press media and on government websites.
Article 62 This Municipality shall institute a hearing system for important decisions concerning ZSP. Hearings shall be held by any organ making decisions on major policy issues concerning the reform, construction or development of the ZSP that affect the interests of market players located there.
Hearings shall be held by any Municipal organ that makes Municipal regulations or a normative document affecting market players in ZSP and relating to administrative examination and approval, issuance of certificates, fee-collection, administrative punishment, compulsory measures or other such matters.
Article 63 Government departments that carry out administrative examination and approval shall reduce the number of steps in the process, simplify formalities, and make public all conditions, criteria, procedures and timeframes.
The Municipal People's Government shall, in accordance with law, eliminate any issues subject to administrative examination and approval that hamper the development of ZSP and publicize such elimination.
Article 64 Whenever relevant government departments carry out administrative law enforcement inspections on enterprises and other market players located in ZSP, law enforcement persons shall issue an inspection notice signed by the responsible person of their administrative organ. The inspection notice shall contain the reason for inspection, the time of the inspection, the items to be inspected, the names of persons conducting the inspection and the person in charge of the inspection. The administrative law enforcement inspection shall not disturb the normal production and operational order of the inspected enterprise.
Relevant government departments may waive the inspection on a particular enterprise or other market player located in ZSP due to its good reputation.
Article 65 The scope, criteria and procedures of administrative and institutional fee collection in ZSP shall comply with relevant laws and regulations, and shall be made public. Any unit or person that is charged administrative or institutional fees in violation of laws and regulations shall have the right to refuse making payment.
Article 66 Where the Municipal or District People's Government, for social public interests, needs to demolish or relocate the premises used by an enterprise or other market player located in ZSP, prior notice shall be given and corresponding compensation shall be made.
Article 67 Where any enterprise or other market player located in the ZSP considers that its legitimate rights and interests have been infringed upon by any administrative act, it may file a complaint with the ZSP administrative organ.
ZSP administrative organ shall address a complaint that falls into the scope of its functions and jurisdiction within 10 working days from receiving the complaint. A complaint that should be addressed by another department shall be transferred to it without delay, and the complainant shall be informed of it in writing. The department to which the complaint has been transferred shall deal with the complaint within 10 working days from receiving it and the complainant and the department from which the complaint was transferred shall be informed of it in writing.
Chapter VI Administrative System
Article 68 According to the principles of systematic innovation, effectiveness, efficiency and streamlined administration, ZSP shall establish an administrative system that is well-suited for the development of advanced productive forces and the needs of market economy, that serves new- and high-technology enterprises and other market players well, and that is conducive to giving full play to the advantages of intellect concentration in the core area of ZSP.
The administrative system of ZSP shall be decided and modified by the Municipal People's Government.
Article 69 The Municipal and District People's Governments and their relevant departments shall well manage and service ZSP according to their respective functions and duties.
According to the principle of transferring powers to a lower level, the Municipal and District People's Governments and their relevant departments shall turn over to the administrative organ of the Park the administrative examination and approval issues and other economy administration matters concerning new- and high-technology enterprises and other market players located in the ZSP. Concrete provisions shall be formulated by the Municipal People's Government.
Chapter VII Legal Liabilities
Article 70 Acts violating these Regulations shall be investigated for liabilities according to the provisions of relevant laws and regulations. Where no such provisions are available, those in this Chapter shall be applied.
Article 71 Where the acts of an administrative organ or its staff members violate the provisions of Articles 23, 60(1), 63(1), 64(1) and 65 of these Regulations, they shall be deemed invalid and ordered to be corrected by the superior administrative organ. Where the circumstances are serious, a supervisory organ or the superior administrative organ shall investigate the person directly responsible and the person in charge for administrative liabilities.
Article 72 Where administrative organs or their staff members fail to perform their statutory duties and any of the following circumstances exists, they shall be ordered to correct their mistakes by the superior administrative organ; where the circumstances are serious, a supervisory organ or the superior administrative organ shall investigate the person directly responsible and the person in charge for administrative liabilities; and where a crime is constituted, they shall be investigated for criminal liabilities according to law:
1. Due to the omission of an administrative organ or its staff members, the legitimate rights and interests of an enterprise or other market player that should be protected by these Regulations are infringed upon; or
2. Due to the omission of an administrative organ or its staff members, an enterprise or other market player is unable to enjoy the rights and interests to which it is entitled under the provisions of these Regulations.
Article 73 Where any administrative organs or their staff members fail to perform the duties stipulated under Articles 61, 62, 66 and 67(2) of these Regulations, they shall be ordered to correct their mistakes by their superior administrative organs. Where the circumstances are serious, a supervisory organ or the superior administrative organs shall investigate the persons directly responsible and the persons in charge for administrative liabilities.
Article 74 Where any market player or other organization or individual violates the provisions of Articles 17(1), 20, 21, 22, 33, 34(1), 41, 42(1) and 47(3) of these Regulations and in consequence, jeopardizes public interests or economic order, administrative sanctions such as warnings, fines, confiscation of illegal gains or mandatory suspension of business shall be imposed by a relevant administrative organ in accordance with its duties and functions.
Where an administrative organ fails to perform its statutory duties and functions and does not impose administrative sanctions in accordance with the provisions of the preceding paragraph, it shall be ordered to correct its mistakes by its superior administrative organ. Where the circumstances are serious, a supervisory organ or the superior administrative organ shall investigate the person directly responsible and the person in charge for administrative liabilities.
Article 75 Any market player or other organization or individual that has committed any of the following acts shall assume civil liabilities:
1. in violation of the provisions of Article 17(1) of these Regulations, providing false information to or concealing important facts from other persons and in consequence, infringing upon the legitimate rights and interests of other persons or a third party;
2. in violation of the provisions of Articles 20-22 of these Regulations, restricting on normal commercial competition and in consequence, causing damages to other persons;
3. in violation of the provisions of Articles 40-42(1) of these Regulations, infringing upon the intellectual property rights or disclosing the trade secrets of other persons;
4. in violation of the provisions of Articles 42(3) and 44(1) of these Regulations, failing to keep the trade secrets or implement the non-competition agreements;
5. in violation of the provisions of Article 44(2), failing to pay compensation for non-competition agreements in time or underpay it; or
6. infringing upon other legitimate rights or interests of other persons.
Article 76 Where an enterprise or other market player considers that its lawful rights or interests have been infringed upon by an administrative organ or its staff members, it may apply to the administrative organ at a higher level for administrative reconsideration or file a lawsuit in the People's Court according to law.
Article 77 Where an administrative organ or its staff members, by illegally exercising administrative functions and powers, infringe upon the lawful rights and interests of enterprises or other market players and cause economic losses to them, the State shall assume compensation obligations according to law.
Article 78 Parties may request the Beijing Arbitration Commission or another arbitration institution to settle their economic disputes according to their contract or a special agreement entered into after the event. Where there is no arbitration clause stipulated in the contract or no arbitration agreement reached after the event, the parties may file a lawsuit in the People's Court.
Chapter VIII Supplementary Provisions
Article 79 Where detailed rules or other concrete provisions are needed for the implementation of these Regulations, the Municipal People's Government or a relevant administrative department shall make them in time.
Article 80 These Regulations shall be implemented as of January 1, 2001.
