Unofficial translation courtesy of Squire,Sanders Dempsey LLP PROVISIONS ON ACQUISITION OF DOMESTIC ENTERPRISES BY FOREIGN INVESTORS TABLE OF CONTENT CHAPTER I GENERAL PROVISIONS CHAPTER II】 BASIC SYSTEM CHAPTER III EXAMINATION,APPROVAL AND REGISTRATION CHAPTER IV ACQUISITION OF DOMESTIC COMPANY BY FOREIGN INVESTOR THROUGH PAYMENT OF EQUITY INTERESTS SECTION 1 CONDITIONS OF EQUITY ACQUISITION SECTION 2 APPLICATION DOCUMENTS AND PROCEDURES SECTION 3 SPECIAL PROVISIONS ON SPECIALLY-PURPOSED COMPANIES CHAPTER V ANTI-MONOPOLY INVESTIGATION CHAPTER VI SUPPLEMENTARY PROVISIONS Chapter I General Provisions Article 1 These Provisions are formulated pursuant to laws and administrative regulations for foreign-invested enterprises("FIEs"),Company Law and other related laws and administrative regulations in order to promote and regulate investments in China by foreign investors,introduce advanced foreign technology and management expertise,make more effective use of foreign investment,realize the rational allocation of resources,ensure employment and safeguard fair competition and the economic security of the State. Article 2 For the purposes of these Provisions,the term"acquisition of domestic enterprises by foreign investors"means a foreign investor's purchase by agreement of the equity interests of a shareholder in an enterprise other than a FIE (hereinafter referred to as the"Domestic Company")or subscription to a Domestic Company's capital increase,resulting in the conversion of the Domestic Company into a newly established FIE (hereinafter referred to as the "Equity Acquisition");or a foreign investor's establishment of a FIE and purchase by agreement,through such FIE,of the assets of a domestic enterprise and operation of such assets,or a foreign investor's purchase by agreement of the assets of a domestic enterprise and use of such assets to