Local rules on labor management in Shanghai are relatively                      comprehensive. Most of the local rules are mainly issued to                      simply supplement or implement the national laws such as the                      Labor Law of the PRC. Under the national law and local                      rules, an employment contract is always required when a foreign                      investment enterprise recruits its employees. There are restrictions                      imposed on employing Chinese workers from outside of Shanghai.                      Shanghai also insists on certain strict requirements concerning                      the protection of safety and health in work place.