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Policies and regulations governing personnel, technical consolidation and technological development.

Article 8: Scientific research institutes, colleges, universities, enterprises, and non-government scientific and technological establishments from other places coming to set up entities or carry out technology transfers, technical consultations, technical services, and technical training in the autonomous region shall be exempt from the income tax levied on earnings they make by offering technical services and the additional fees of the circulation tax as stipulated by the government of the autonomous region. Their business tax shall first be collected and then refunded.

Article 9: Colleges, universities, research institutes, enterprises and individuals from other places are encouraged to join hands with the autonomous region in the development of productive projects by becoming shareholders with their famous-brand products or technology. Holders of the technical shares may draw part of the after-tax profits (no more than20 percent) and then share out the dividends on the basis of the number of shares they hold three years after the projects have been in operation. Special preferential policies may be worked out for projects which put out high-grade, new, precision, or advanced products or products with a high reputation in and outside of the country.

Article 10: Any units and individuals that help productive enterprises in the autonomous region carry out technical transformations and achieve marked economic results, besides being paid according to the contracts, shall be entitled to a bonus equal to 10-20 percent of the newly-added after-tax profit the enterprises make in the year the enterprises are in operation.

Article 11: Colleges, universities, research institutes and technical personnel from other places are encouraged to sign technical contract with enterprises in the autonomous region. The contractors that have fulfilled the contractual technical obligations and achieved remarkable economic results, in addition to the payment they receive according to the contracts, shall be entitled to a bonus of 10-20 percent of the after-tax profit made in the year the contracts are signed or the following year. Those who have turned around money-losing enterprises or reduced money losing by a big margin shall be amply rewarded in accordance with the economic results of the enterprises.

Article 12: Colleges, universities, research institutes, and non-government scientific and technological establishments from other places which join hands with research institutes and enterprises in the autonomous region in developing new products shall have the priority to be included in the plan of science and technology development of the autonomous region and be provided with appropriate loans. The expenses incurred in new product development and technical transformation shall be included in the cost of the year. In case the amount of expenses is large, these expenses may be included in the cost by installments in the following years. Enterprises that develop and manufacture what the autonomous region holds as hi-tech products may draw 10-20 percent of the newly added after-tax profit to encourage and reward research personnel concerned within three years beginning with the year in which they are in operation.

Article 13: Enterprises shall be encouraged to hire on contract or take untalented personnel urgently needed. The wage rates of the needed personnel shall be settled through negotiations by the two sides involved, subject to no restrictions. Those who have made special contributions to the enterprises shall be encouraged with special bonuses. Those with a medium or senior professional title and the term of their contractual services is more than five years shall be allowed to change the domicile of their spouses and children under the age of 18 from rural to urban areas and entitled to exemption from the urban-accommodation supporting fees, subject to approval by the government at the corresponding level. Priority shall be given to their children in attending school and obtaining employment.

Article14: Scientific and technological personnel from other places who come to work in the rural enterprises and urban collective-owned enterprises in Ningxia may bypass the convention to be hired to professional posts and be entitled to appropriate wages and other terms of employment.

Article 15: Managerial personnel from other places are welcome to carryout fair competitions for management posts in Ningxia?ˉs medium-size and small enterprises and exercise leadership over, contract to operate, or become trustees of the medium-size and small enterprises in the autonomous region. Their wage rate shall be fixed according to the economic results of the enterprises, subject to no restrictions. For those who have created marked economic results, the enterprises shall give a nonrecurring reward of less than 500,000 yuan, subject to approval by the people's government.

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