1. The joint annual inspection of foreign-invested enterprises is an important measure to strengthen the supervision and administration of foreign-invested enterprises, transform the government management modes and improve the investment environment; it provides a working platform for the government to keep informed of the existence of foreign-invested enterprises and to make proper decisions.

2. The joint annual inspection of foreign-invested enterprises shall be carried out from March 1 to June 30, 2011 and shall cover the status of operations of foreign-invested enterprises in 2010. All foreign-invested enterprises within the territory of China that have been established and registered upon approval according to law and have obtained the legal personality must participate in the annual inspection.

3.  All departments that participate in the joint annual inspection shall make full use of modern information technologies and the existing network resources, and diligently carry out online annual inspection of FIEs. If conditions allow, participating departments may use the online platform for annual inspection to complete relevant data collection.

4.  Regions that engage in pilot work on electronic signature and seal shall carry out such work to the extent financial support has been obtained, and may not apportion expenses among enterprises.

5.  With respect to any enterprises that fail to apply for annual inspection, fail to submit materials required for the annual inspection truthfully, or have committed illegal or irregular acts in their production and business activities, the departments participating in the joint annual inspection shall deal with the same to the extent of their respective functions according to law. Accounting firms shall issue authentication documents and provide services in an objective, truthful and fair manner pursuant to the Accounting Law of the People’s Republic of China (the "PRC"), the PRC Law on Certified Public Accountants, Regulations on Financial and Accounting Reports of Enterprises and other financial and accounting regulations.

6.  All departments participating in the joint annual inspection shall strengthen guidance to the annual inspection work at the grassroots level, keep timely informed of the work progress, coordinate in solving any problems that have arisen therefrom, and thus ensure the orderly performance of the annual inspection. They shall strengthen the training of annual inspection staff from governmental agencies and enterprises so as to effectively improve the professional level of the joint annual inspection staff. They shall also intensify the statistical analysis of annual inspection data, and make full use of the information resources and data related to the joint annual inspection, conduct in-depth analysis of the operations of foreign-invested enterprises, thus prepare and submit analysis reports to higher authorities upon completion of annual inspection.

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