Legal analysis: External guarantee should be examined and approved by the department that performs the investor management duties on behalf of the country, namely SASAC or SASAC. If it is a state-owned holding company, it must be guaranteed in accordance with the articles of association.

Legal basis: Civil Code of People's Republic of China (PRC).

Article 682 A suretyship contract is an accessory contract to the principal creditor's rights and debts contract. If the principal creditor's rights and debts contract is invalid, the guarantee contract is invalid, unless otherwise stipulated by law. If the debtor, guarantor and creditor are at fault after the guaranty contract is confirmed to be invalid, they shall bear corresponding civil liabilities according to their faults.

Article 683 A legal person organ shall not act as a guarantor, except for the use of loans from foreign governments or international economic organizations with the approval of the State Council. A legal person not for profit or an unincorporated organization for public welfare may not act as a guarantor.