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its Examination and Approval”, “Airport”, “Regulation Rule”, “Aviation Insurance”, “Standby”, “Aviation Fund”, “Aviation Market Regulation”, “ Aviation Security”, “Aviation Market Management”, “Technology and Measurement Standard ” and “ Aircraft Search and Rescue and Accident Research”. Airspace control At present, China is very strict with its airspace control. General aviation operation needs to apply for the airspace in advance following the rule “One Operation, One Report”. Without the permission of aviation administration department, general aviation operation shall not be carried out. The Chinese People’s Liberation Air Force will approve or disapprove the temporary flight airspace assignment between flight control regions. When using flight airspace and air routes and at airports to engage in general aviation activities, flight plans between regions must be approved/disapproved by the People39。s Liberation Air Force Influence of industry policy on present general aviation enterprises At present, industry administration policy is not only very strict with the basic petencies such as capital strength, personnel, technology, and security and so on, but also very specific on the operating activities of general aviation enterprises. For example, enterprises should follow specific examination and approval procedures if they purchase aircrafts and matched aviation materials, oil. Moreover, general aviation operation needs to apply for the airspace in advance following the rule “One Operation, One Report”, which makes it impossible for general aviation to make full use of its highefficiency, flexibility and convenience, because of the plicated procedures and long time. In this way, the normal production and operation shall be influenced. These regulations limit the investment in this field from general enterprises to some degree, which leads to the actual monopolization in general aviation operation at present. Meanwhile, the features of highefficiency, flexibility and convenience for general aviation can not be fully displayed. At last, many market opportunities are lost, and the increase in flight operation volume and the development of general aviation markets shall be influenced. Confidential Page 29 of 44 August, 2020 TEL: 01085803205 FAX: 01085803874 Email: ADD: D2105 Xian Dai Cheng 88 JianGuo Road Chao Yang District, Beijing P. R. China. 100022 Opening up to foreign investment According to Regulation of Foreign Investment in China’s Civil Aviation Industry, foreign investment is encouraged in existing public air transport industries including general aviation enterprises engaging in agriculture, forestry and fishery, business aviation, air sightseeing or in the provision of services related to these industries, but excluding national security items Foreign investors in general aviation enterprises such as business aviation and sightseeing must bee qualified Chinese corporations. Chinese investors should hold the majority of shares of general aviation enterprises invested by foreign investors, such as business aviation, air sightseeing and industrial aviation。 the percentage of foreign investment in general aviation enterprises engaging in agriculture, forestry and fishery should be decided mutually by the Sinoforeign parties Chinese investors should hold the majority of shares of aircraft maintenance (these enterprises must be internationally oriented and not limited to maintenance of aircraft from one pany or region only) and aviation fuel enterprises。 the percentage of foreign investment in cargo storage, ground support, food service, parking lots and others should be decided mutually by the Sinoforeign parties. Laws, regulations and policies related to GA industry Regulations for general aviation flight control of the People’s Republic of China This regulation will take effect on May 1st,2020. According to the regulation, units and individuals engaging in general aviation activities, when needing temporary airspace assignment, must apply to the relevant flight control department for that assignment. The application for temporary flight airspace assignment must be submitted to the relevant flight control department at least 7 working days before the planned use of the temporary flight airspace。 the flight control department should make decision to approve/disapprove and inform the applicant 3 working days before the planned use. Confidential Page 30 of 44 August, 2020 TEL: 01085803205 FAX: 01085803874 Email: ADD: D2105 Xian Dai Cheng 88 JianGuo Road Chao Yang District, Beijing P. R. China. 100022 Flight plans must be submitted by 15:00 of the day before the flight, and the relevant flight control department will approve/disapprove by 21:00 at the latest on the same day and notify the applicant. For emergencies, rescue and disaster relief, weathermaking and other urgent tasks, flight plans should be submitted at least an hour before the flight。 the relevant flight control department will approve/disapprove by 15 minutes before the flight and notify the applicant. General Aviation Operating Permit Administration Regulation It was passed in the CAAC conference in , 2020, and it began to be put in force from , 2020. According to Laws and Regulations for Civil Aviation of the People’s Republic of China”, CAAC issues “General Aviation Enterprise Examination and Approval Regulation”( CCAR53LR) in 1996. After that, tow articles were revised in 2020(CCAR102LR). However, with the development of the general aviation industry, the regulations are unable to meet the needs for effective administration to the general aviation market. Meanwhile, there are collisions with “Administration Permission Law of the People’s Republic of China”, which was put in force from Jul. 1st, 2020, in the