Regulations and Agreements for the Equipment Manufacturing Industry in Shandong Province

Chapter 1 General Provisions

Article 1: In order to revitalize and develop the equipment manufacturing industry in Shandong Province, safeguard the interests of the industry and the legitimate rights and interests of member units, establish a good industry image, improve the overall reputation of the industry, and promote the healthy development of the industry, in accordance with the current laws and regulations of the country, the "Shandong Province Equipment Manufacturing Industry Rules and Regulations" (hereinafter referred to as the "Rules") are specially formulated.

Article 2: The formulation of this regulation aims to establish an industry self-discipline mechanism, regulate and constrain the business behavior of enterprises, and achieve coordinated development of the industry.

Article 3: All member units of Shandong Equipment Manufacturing Association and all employees in the industry shall comply with this industry regulation.

Chapter 2 Industry Ethics

Article 4: Advocate for advanced corporate culture. Build a civilized and disciplined excellent team. Advocate unity, mutual assistance, coordination, and self-discipline among member units, leverage the overall advantages of the industry, and exchange information, jointly discuss, and negotiate solutions to hot topics, difficulties, and major issues that occur in the industry.

Article 5: Adhere to the principles of "standardization, legality, and integrity", insist on operating in accordance with the law, prioritize honesty, and abide by contracts.

Article 6: Maintain the overall image and interests of the industry. Peers, regardless of system or size, unite and cooperate with each other to jointly shape the overall image of the equipment manufacturing industry in the province.

Article 7: Advocate civilized operation, high-quality service, safe and environmentally friendly production, strengthen enterprise basic management, consciously regulate enterprise operation and management behavior, build enterprise culture, forge enterprise spirit, and carry out image construction and spiritual civilization construction of member units and industries.

Chapter 3 Industry Regulations

Article 8: All member units must strictly comply with the relevant laws and regulations of the state on the management of equipment manufacturing industry, as well as the corresponding qualification assessment and license system, and operate legally. Adhere to the principles of fairness, openness, and fair competition, and consciously maintain the normal order of industry production and operation.

Article 9: Strictly produce and operate in accordance with national standards, and do not produce or sell counterfeit, inferior, low-quality, or other unqualified products that do not meet national standards.

Article 10: Respect contracts, keep promises, and establish an industry integrity and compliance system. Sign and strictly enforce written sales contracts in accordance with laws and regulations, ensure that production enterprises deliver goods in quality, quantity, and on time, and the operating company guarantees not to maliciously delay payment, jointly maintaining the reputation of the enterprise and market operation order.

Article 11 Enterprises and institutions engaged in the equipment manufacturing industry shall consciously resist and refuse the following behaviors:

（1） Counterfeiting someone else's registered trademark and stealing someone else's patented technology.

（2） Falsifying or impersonating authentication marks, famous brand marks, and related recommendation certificates.

（3） Exclude competitors and dump equipment and products at prices lower than the average cost.

（4） Make untrue advertisements that defame the products and services of other companies.

（5） Produce and sell inferior products.

（6） Using commercial bribery to sell products.

（7） Borrowing someone else's qualification certificate to undertake related business.

（8） Lending relevant qualification certificates to others for profit.

Article 12: Enhance social responsibility awareness, consciously maintain market operation order, proactively report illegal and unlawful phenomena, and cooperate with government departments to crack down on illegal production, storage, operation, transportation and other behaviors.

Chapter 4 Management of Industry Rules

Article 13: The Secretariat of Shandong Equipment Manufacturing Industry Association is responsible for daily supervision and management work, setting up complaint and supervision hotlines, specifically responsible for receiving visits and accepting appeals.

Article 14: Member units shall consciously abide by this industry regulation. In order to ensure the implementation of the industry regulation, the Secretariat of the Association will regularly organize inspections of the implementation of the industry regulation. Commend and widely promote member units that have performed well.

Article 15: Member units and individuals who violate industry regulations shall be punished through criticism, industry notifications, and public exposure according to the severity of the circumstances, and industry condemnation shall be carried out in a timely manner. If there are serious violations or breaches of contract, the association's secretariat will report and report to relevant departments, and suggest revoking their professional qualifications.

Article 16: In case of disputes arising from the implementation of this industry regulation by member units, they may file an appeal to the Secretariat of the Association, which will investigate and coordinate with relevant units for resolution.

Article 17 All member units are encouraged to supervise each other. Members have the obligation to report violations of these regulations to the secretariat of the association; at the same time, they also have the right to supervise the fairness of the secretariat of the association in implementing these regulations.

Chapter V Supplementary Provisions

Article 18 If the matters listed in these regulations are inconsistent with national policies and regulations or relevant national policies and regulations have been established, the national policies and regulations shall prevail.

Article 19 The formulation, modification, implementation, supervision, inspection and management of these regulations shall be the responsibility and interpretation of the Shandong Provincial Equipment Manufacturing Association Council.

Article 20 these rules shall be implemented as of the date when they are approved by the first second general meeting of members.

Shandong Equipment Manufacturing Industry Association

January 18, 2018