The Catalogue for the Guidance of Foreign Investment Industries (Amended in 2011) (the “Catalogue”), which shall come into force as of January 30th, 2012 and replace the old version of the Catalogue promulgated on October 31, 2007.

The new Catalogue includes 473 items in total - 354 encouraged items, 80 restricted items and 39 prohibited items.

China's National People's Congress issued the new Individual Income Tax Law (the "IITL") on June 30, 2011, which will enter into force on September 1, 2011.

The new IITL was modified based on the current IITL (issued on December 29, 2007) and the major changes were made as follows:

The new Detailed Rules of the Provisional Regulations on Value-added Tax of the People’s Republic of China (the “VAT Rules”) and the new Detailed Rules of the Provisional Regulations on Business Tax of the People’s Republic of China (the “Business Tax Rules”) were issued by the Ministry of Finance and the State Administration of Taxation on October 28, 2011 and will become effective as of November 1, 2011.

According to the VAT Rules and the Business Tax Rules, the minimum thresholds of the Valued-added Tax (the “VAT”) and the business tax are increased. The specific rules are as follows:

Administrative Measures of Shanghai Municipality on Pharmaceutical Prices (Trial Implementation, the “Measures”) were issued by Shanghai Development and Reform Commission on July 29, 2011. The Measures will be effective as of September 1, 2011.

The main contents of the Measures are as follows:

The Ministry of Human Resources and Social Security issued the Tentative Measures for Social Insurance Enrollment of Foreign Employees in China (Draft for Comments) (the "Tentative Measures") on June 10, 2011.

The main contents of the Tentative Measures are as follows:

On May 4th 2011, the Ministry of Commerce (“MOFCOM”) issued a Draft of the Management Measures regarding Capital Contribution by Equity to Foreign Invested Enterprises (“FIEs”) for public comments ("Draft Measures"). The deadline for the submission of comments was May 20th, 2011.

According to the current laws and regulations, the form of capital contribution to the FIE shall only include cash and non-monetary assets which are transferable and can be economically assessed, such as tangible assets, intellectual property, land use right, etc.