Rights and Obligations of the Enterprise

Article 22 The enterprise shall， under the guidance of state plans， have the right to arrange on its own the production of products needed by society or the provision of services for society.

Article 23 The enterprise shall have the right to request for the adjustment of mandatory plans when no arrangements are made for product sales.

The enterprise shall have the right to accept or reject production assignments given by any department or unit outside the mandatory plans.

Article 24 The enterprise shall have the right to sell its products on its own， except as otherwise stipulated by the State Council.

And enterprise undertaking production according to a mandatory plan shall have the right to marker for itself products manufactured in excess of the planned quota and products it retains as its share under the plan.

Article 25 The enterprise shall have the right to choose the suppliers for itself and purchase from them materials needed for production.

Article 26 The enterprise shall have the right to determine for itself the prices of its products and the charges for its services， except for those which， as stipulated by the State Council， are under the control of the price authorities and the relevant competent departments.

Article 27 The enterprise shall have the right to negotiate and sign contracts with foreign parties in accordance with the provisions of the State Council.

The enterprise shall have the right to withdraw and use， according to the provisions of the State Council， the foreign exchange revenues it retains as its Council.

Article 28 The enterprise shall have the right to budget and use its retained funds in accordance with the provisions of the State Council.

Article 29 The enterprise shall have the right， in accordance with the provisions of the State Council， to lease out or transfer against compensation the fixed assets that the state has authorized it to operate and manage， but the proceeds therefrom must be used for the renewal of equipment and technical transformation.

Article 30 The enterprise shall have the right to determine such forms of wages and methods of bonus distribution as are appropriate to its specific conditions.

Article 31 The enterprise shall have the right to employ or dismiss its staff members and workers in accordance with the provisions of the State Council.

Article 32 The enterprise shall have the right to decide on its organizational structure and the size of its personnel.

Article 33 The enterprise shall have the right to reject the exaction of its manpower， materials and financial resources in the form of apportionment by any state organ or unit. Except as otherwise stipulated by the laws and regulations， any demand made on the enterprise by any state organ or unit in any form for the provision of manpower， materials and financial resources shall be exaction by apportionment.

Article 34 The enterprise shall have the right， in accordance with law and the provisions of the State Council， to engage in joint operations with other enterprises or institutions， to invest in other enterprises or institutions and to hold shares in other enterprises.

The enterprise shall have the right to issue bonds in accordance with the provisions of the State Council.

Article 35 The enterprise must fulfil the mandatory plans.

The enterprise must perform the contracts concluded according to law.

Article 36 The enterprise must ensure the normal maintenance of its fixed assets and upgrade and renew its equipment.

Article 37 The enterprise must observe state provisions concerning finance， labour and wages， price control， etc.， and accept supervision by the financial， auditing， labour and wage， price and other administrative authorities.

Article 38 The enterprise must guarantee the quality of its products and services and be responsible to users and consumers.

Article 39 The enterprise must raise labour efficiency， economize the use of energy and of raw and processed materials and strive to reduce costs.

Article 40 The enterprise must strengthen its security work， maintain the order of production and protect state property.

Article 41 The enterprise must implement the system of safe production， improve labour conditions， do good work in labour protection and environmental protection， and carry on production in a safe and civilized manner.

Article 42 The enterprise shall strengthen ideological and political education， legal education， national defence education， scientific and cultural education as well as technical and vocational training so as to raise the quality of its staff and workers.

Article 43 The enterprise shall support its staff and workers in scientific research， invention and creation and activities for technical inovation， for making rationalization proposals and for socialist labour emulation， and reward them for such endeavours.