RESTRICTED  
  
WT/TPR/G/415  
15 September 2021  
(21-6777) Page: 1/27 
Trade Policy Review Body   Original: English  
 
 
TRADE P OLICY REVIEW  
REPORT BY  
CHINA 
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by China  is 
attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on China . WT/TPR/G/ 415 • China  
 
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  Contents  
1   INTRODUCTION  ................................ ................................ ................................ .........  4 
2   GROUNDING ITS EFFORTS IN THE NEW DEVELOPMENT STAGE, APPLYING THE  
NEW DEVELOPMENT PHILOSOPHY, AND FOSTERING A NEW DEVELOPMENT  
PARADIGM SO AS TO PROMOTE HIGH -QUALITY DEVELOPMENT  ................................ ..... 4 
2.1   Grounding its Efforts in the New Development Stage  ................................ ......................  4 
2.2   Applying the New Dev elopment Philosophy  ................................ ................................ .... 4 
2.3   Fostering a New Development Paradigm  ................................ ................................ ........  4 
2.4   Macroeconomic and Trade Environment during the Review Period  ................................ ..... 5 
2.4.1    Macroeconomic performance  ................................ ................................ .....................  5 
2.4.2    Foreign trade  ................................ ................................ ................................ ..........  5 
2.4.3    Investment  ................................ ................................ ................................ .............  6 
3   PURSUING HIGH -LEVEL OPENING UP AND EXPLORING NEW PROSPECTS FOR  
WIN-WIN COOPERATION  ................................ ................................ ................................  6 
3.1   Promoting the High -Quality Development of Trade  ................................ ..........................  6 
3.1.1    Implementing a more proactive import policy  ................................ ..............................  7 
3.1.2    Continuously improving trade facilitation  ................................ ................................ .... 7 
3.1.3    Actively cultivating new forms and new models of foreign trade and promoting 
innovative development of trade in services  ................................ ................................ ..........  8 
3.2   Building a Highland for Foreign Investment  ................................ ................................ .... 8 
3.2.1    Fully implementing the Foreign Investment Law and its implementing regulations  ...........  8 
3.2.2    Actively expanding market access for foreign investment  ................................ ..............  9 
3.2.3    Expanding the scope of encouraged foreign investment  ................................ ..............  10 
3.2.4    Promoting the innovation -driven development of national economic and 
technological development zones  ................................ ................................ .......................  10 
3.3   Pursuing Innovative Cooperation in Outbound Investment and Achieving Mutual  
Benefits and Win -Win with the Host Countries  ................................ ................................ ..... 10 
3.3.1    Advancing the reform of outbound investment administration system and 
improving the public service system for outbound investment  ................................ ...............  10 
3.3.2    Promoting the facilitation of outbound investment and cooperation  ..............................  10 
3.4   Building a Global -Oriented Network of High -Standard Free Trade Areas and Promoting  
the Liberalization and Facilitation of T rade and Investment  ................................ ...................  11 
3.5   Developing High -Standard Pilot Free Trade Zones and Free Trade ports  ..........................  11 
3.5.1    Promoting high -quality development of pilot free trade zones  ................................ ...... 11 
3.5.2    Promoting the vigorous development of Hainan free trade port  ................................ .... 12 
4   BUILDING AN OPEN WORLD ECONOMY AND PROMOTING THE CONSTRUCTION  
OF A COMMUNITY WITH A SHARED FUTURE FOR MANKIND  ................................ ..........  13 
4.1   Fully Supporting Global Cooperation on Combating  COVID -19 with Concrete Actions  ........  13 
4.2   Firmly Supporting the Multilateral Trading System with the WTO at its Core  ....................  14 
4.2.1    Actively participating in reform of the WTO, and opposing unilateralism and 
protectionism  ................................ ................................ ................................ ..................  14 
4.2.2    Deeply and fully participating in multilateral negotiations and discussions, and 
earnestly fulfilling the obligations as a WTO Member  ................................ ............................  15 
4.2.3    Supporting a bigger role of the WTO  ................................ ................................ ........  16 WT/TPR/G/ 415 • China  
 
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  4.3   Promoting Fairer and More Equitable Global Economic Governance System  ......................  17 
4.4   Building International Platforms for Opening Up and Cooperation  ................................ ... 18 
4.4.1    Promoting high quality cooperation for the Belt and Road Initiative  ..............................  18 
4.4.2    Hosting China International Import Expo (CIIE) with a view to benefiting all  .................  18 
4.4.3    Innovatively holding the Canton Fair, China International Fair for Trade in 
Services, China International Consumer Products Expo and China International Fair for 
Investment & Trade  ................................ ................................ ................................ .........  18 
4.5   Continuously Strengthening the South -South Cooperation  ................................ .............  19 
4.5.1    Implementing practical measures for the South -South cooperation  ..............................  19 
4.5.2    Contributing to the implementation of UN 2030 agenda for sustainable 
development  ................................ ................................ ................................ ...................  20 
4.5.3    Supporting capacity -building for home -grown development of other developing 
countries ................................ ................................ ................................ .........................  20 
5   DEEPENING REFORM ACROSS THE BOARD AND BUILDING A H IGH-STANDARD 
MARKET SYSTEM  ................................ ................................ ................................ ...........  20 
5.1   Generating New Demand Through Innovation -Driven Development and High -Quality 
Supply  ................................ ................................ ................................ ............................  21 
5.1.1    Improving the quality and efficiency of the supply system and further unleashing 
consumption potential  ................................ ................................ ................................ ...... 21 
5.1.2    Pursuing innovation -driven development, and optimizing and upgrading the 
industrial structure  ................................ ................................ ................................ ...........  21 
5.1.3    Dissolving excess production capacity and improving the quality of supply  ....................  21 
5.1.4    Intensifying efforts to prevent and control pollution, and upholding the concept 
that clear waters and green mountains are as valuable as mountains of gold and silver  ............  21 
5.2   Promoting Coordinated Regional Development and Rural Revitalization  ...........................  22 
5.2.1    Accelerating the implementation of major regional strategies and coordinated 
regional development strategies, and improving the layout of development among 
regions  ................................ ................................ ................................ ...........................  22 
5.2.2    Attaining a complete victory in the fight against poverty and making significant 
contribution to the global poverty reduct ion ................................ ................................ ........  22 
5.2.3    Fully implementing the rural revitalization strategy and steadily modernizing 
agriculture and rural areas  ................................ ................................ ................................  22 
5.3   Committed to Creating Market -Oriented, Law -Based and Internationalized Business 
Environment ................................ ................................ ................................ ....................  23 
5.3.1    Further improving the top -level design of the business environment  ............................  23 
5.3.2    Further strengthening intellectual property rights protection  ................................ ....... 23 
5.3.3    Implementing the Negative List for Market Access system across the board  ..................  24 
5.3.4    Improving the property rights system and promoting the market -based allocation 
of production factors  ................................ ................................ ................................ ........  24 
5.3.5    Improving the performanc e of state -owned assets and state -owned enterprises 
(SOEs) reforms  ................................ ................................ ................................ ................  24 
5.3.6    Fostering an enabling environment for the development of small and medium -
sized enterprises and private businesses  ................................ ................................ .............  25 
5.3.7    Improving the system for fair competition  ................................ ................................  25 
5.3.8    Deepening reforms in fiscal, taxation, financial and other key areas  .............................  25 
6   THE WAY FORWARD  ................................ ................................ ................................ . 26  WT/TPR/G/ 415 • China  
 
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  1  INTRODUCTION  
1.1.  Following the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a 
New Era, China pursues high-quality development as the main theme, ground s its efforts on the new 
development stage, applies the new development philosophy , and fosters a new development 
paradigm. In this process, China  has been continuously enhanc ing the liberalization and facilitation 
of trade and investment , and pursu ing a new pattern of opening -up on all fronts . As always, China 
is committed to develop ing new sy stems for an open economy , building a community of a shared 
future for mankind, and making significant contributions to the world economic recovery.  
1.2.  China proposes to accelerate efforts to foster a new development paradigm with domestic 
circulation as the mainstay and domestic and international circulations reinforcing each other. China  
commits itself  to deepening reform across the board, advances supply -side structural reform as the 
main task, and expands domestic demand as a strategic move . China adheres to harness ing 
innovation as the key source of momentum,  ensure s better alignment between an efficient market 
and a well -functioning government , and is committed to  creating a market -oriented, law -based, and 
internationalized business environment. Meanwhile , China upholds  the strategy of mutually 
beneficial opening  up, comprehensively improves the level of opening up, explores new prospects 
for win -win cooperation, and creates more opportunities for all countries to share in the high -quality 
development of C hina's economy.  
1.3.  In 2020, the sudden COVID -19 pandemic ravaged the world and the global economy fell into 
a deep recession. China has fully support ed global cooperation on combating COVID -19. It has made  
contributions to maintain ing the stability of the global industrial chains and supply chains , and 
building a global health community  for mankind . China has been upholding  the principle of pursuing 
shared benefits  through consultation and collaboration, and promoting Belt and Road coo peration 
with all parties . China  actively participat es in global governance, firmly support s the multilateral 
trading system,  and resolutely oppos es unilateralism and protectionism . China  further  advances  the 
building  of free trade areas, continuously impr oves the level of South -South cooperation, and makes 
economic globalization  more open, inclusive, beneficial to all, balanced, and win-win. 
2  GROUNDING ITS EFFORTS IN THE NEW DEVELOPMENT STAGE, APPLYING THE NEW 
DEVELOPMENT PHILOSOPHY, AND FOSTERING A NEW DEV ELOPMENT PARADIGM SO AS 
TO PROMOTE HIGH -QUALITY DEVELOPMENT  
2.1  Grounding its Efforts in the New Development Stage  
2.1.  In 1978, China made its historic decision of reform and opening up. After more than 40 years 
of reform and opening up, China has embarked on a ne w journey toward s fully building a modern 
socialist country. China  aims to coordinate  the overall  great rejuvenation strategy of the Chinese 
nation and the profound changes unseen in the world for a century. China draws up the Outline for 
the 14th Five-Year Plan for Economic and Social Development and Long -range Objectives through 
the Year 2035 , and e mbarks on a new journey toward s the second centenary goal, which marks that 
China has entered into a new development stage. China 's economy has shifted from a stage of high -
speed growth to a stage of high -quality development.  The basic national condition t hat China is still 
in the primary stage of socialism and will remain so for a long time has not changed.  China 's 
international status as the world 's largest developing country has not changed.  
2.2  Applying the New Development Philosophy  
2.2.  China unswervingly upholds  the concept of innovative, coordinated, green, open and shared 
development . It adheres to the general principle of pursuing progress while ensuring stability, sets 
high-quality development as the main theme , and intensifies  suppl y-side structural reform as the 
main task . China harnesses reform and innovation as the primary driving force  in endeavours  to 
meet the fundamental goals of satisfying people 's growing needs for a better life , and expedites the 
building of a modern economic system . 
2.3  Fostering a New Development Paradigm  
2.3.  China proposes to accelerate efforts to foster a new development paradigm with domestic 
circulation as the mainstay and domestic and international circulations reinforcing each other. The WT/TPR/G/ 415 • China  
 
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  new developmen t paradigm is not a development loop behind closed doors. By fully tapping the 
potential of domestic demand, the new development paradigm serves to better connect the domestic 
and international markets, makes better use of both international and domestic m arkets and 
resources, and achieves stronger and more sustainable development. The potentials of vast market 
and domestic demand of China 's 1.4 billion people and more than 400 million middle -income 
population will be fully unleashed . In the process of buil ding a new development paradigm, China 
will further improve its level of opening up, develop a new system for a higher -standard open 
economy, and create more demand for the world, while provid ing broad markets and more 
development opportunities for all cou ntries.  
2.4  Macroeconomic and Trade Environment during the Review Period  
2.4.1   Macroeconomic performance  
2.4.  First, China carried out COVID -19 prevention and control and pursued economic and 
social development in a coordinated way, and achieved continuous and stable rec overy of 
the economy.  
2.5.  In 2018, the GDP reached RMB 91,928.1 billion, an increase of 6.7% over the previous year. 
In 2019, the GDP stood at RMB 98,651.5 billion, an increase of 6.0%. In 2020, the GDP amounted 
to RMB 101,598.6 billion, an increase of 2.3%, a nd the total economic output crossed 
RMB 100 trillion threshold. In 2020, 11.86 million new jobs were created; the disposable income per 
capita of urban and rural residents grew by 2.1% in real terms, which was basically in line with 
economic growth; and the registered urban unemployment rate was 4.2%.  
2.6.  Second, China continues intensifying supply -side structural reforms and takes new 
steps in industrial structure adjustment.  
2.7.  China takes solid steps in promoting the development of high -quality ma nufacturing, firmly 
promotes the development of modern service industry, and safeguards the food security and supply 
of agricultural and sideline products. In 2018, the added value of the primary sector stood at 
RMB 6,474.5 billion, an increase of 3.5%; th e added value of the secondary sector reached 
RMB 36,483.5 billion, an increase of 5.8%; and the added value of the tertiary sector was 
RMB 48,970.1 billion, an increase of 8.0%. In 2019, the added value of the primary sector equalled 
to RMB 7,047.4 billio n, an increase of 3.1%; the added value of the secondary sector represented 
RMB 38,067.1 billion, an increase of 4.9%; and the total added value of the tertiary sector reached 
RMB 53,537.1 billion, an increase of 7.2%. In 2020, the added value of the prima ry sector reached 
RMB 7,775.4 billion, an increase of 3.0%; the added value of the secondary sector reached 
RMB 38,425.5 billion, an increase of 2.6%; and the added value of the tertiary sector totalled 
RMB 55,397.7 billion, an increase of 2.1%. In terms o f demand structure, in 2018, the contribution 
rate of final consumption expenditure to GDP growth was 64.0%, the contribution rate of gross 
capital formation stood at 43.2%, and the contribution rate of net export of goods and services was 
-7.2%. In 2019, the contribution rate of final consumption came to 58.6%, the contribution rate of 
capital formation reached 28.9%, and the contribution rate of net export of goods and services stood 
at 12.6%.  
2.4.2   Foreign trade  
2.8.  First, the import and export of goods reached a  record high.  
2.9.  In 2018, China 's total import and export of goods stood at USD 4,622.44 billion, a year -on-
year increase of 12.5%. To be specific, exports reached USD 2,486.70 billion, an increase of 9.9%; 
and imports reached USD 2,135.75 billion, an increas e of 15.8%. In 2019, China 's total import and 
export of goods was USD 4,577.89 billion, dropped by 1.0% year on year. To be specific, exports 
reached USD 2,499.48 billion, an increase of 0.5%, and imports reached USD 2,078.41 billion, 
dropped by 2.7%. In 2 020, China 's total import and export of goods was USD 4,652.45 billion, a 
year-on-year increase of 1.6%. Exports reached USD 2,590.26 billion, an increase of 3.6%; and 
imports reached USD 2,062.19 billion, 8.5 folds as compared to 2001. China has maintaine d its 
position as the world 's second largest importer of goods for 12 consecutive years, and accounted for 
11.5% of global imports in 2020.  WT/TPR/G/ 415 • China  
 
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  2.10.   In 2020, the import and export of private enterprises increased by 10.8%, and the proportion 
of import and export o f private and foreign -invested enterprises in total foreign trade increased to 
85.2%, up 4.9% year on year. The import and export of the state -owned enterprises accounted for 
14.3% in the total import and export.  
2.11.   Second, stable and improved performance of services trade.  
2.12.   China is the second largest importer of services trade in the world. According to the data 
released by the WTO, in 2018, China 's total import and export of services stood at USD 786 billion. 
Services exports recorded USD 265 billion, a year -on-year increase of 17%; and services imports 
recorded USD 521 billion, a year -on-year increase of 12%. In 2019, China 's total import and export 
of services came to USD 779 billion. Services exports recorded USD 282 billion, a year -on-year 
increase of 4%;  and imports reached USD 497 billion, dropped by 5% year on year.  
2.4.3   Investment  
2.13.   First, the inflow of foreign investment increased despite the global declining trend.  
2.14.   In 2018, the paid-in foreign investment  was USD 138.31 billion, a year -on-year increase of 
1.5%. In 2019, the paid-in foreign investment  reached USD 141.23 billion, a year -on-year increase 
of 2.1%. In 2020, the paid-in foreign investment  stood at USD 149.34 billion, a year -on-year 
increase of 5 .7%. 
2.15.   In 2020, inward direct investment had the following features. First, the scale reached a record 
high. Despite a sharp decline in global direct investment, China 's inward direct investment 
maintained the rising trend, achieving progress in total FDI am ount, growth rate and its global share. 
Second, the sectoral distribution of foreign investment has been further optimized. The FDI in the 
services sector reached USD 117.26 billion, up 13.6% year on year. The FDI in high -tech industries 
reached USD 42.76 billion, up 9.5% year on year, accounting for 28.6% of total FDI. Third, major 
FDI sources remained stable. The investment from top 15 FDI sources grew by 4.7% year on year. 
Fourth, the leading role of regional development has been better leveraged. Foreig n investment in 
the eastern regions increased by 7.1%, and the pilot free trade zones attracted 17.9% of China 's 
total FDI.  
2.16.   Second, outbound direct investment expanded  employment and tax revenue of host 
countries.  
2.17.   In 2018, 2019 and 2020, the flows of outbo und direct investment reached USD 143.04 billion, 
USD 136.91 billion and USD 132.94 billion respectively. The investment of Chinese enterprises in 
host countries expanded local employment and tax revenue. In 2019, overseas Chinese enterprises 
contributed a  total of USD 56 billion in taxes revenue to the invested countries or regions. By the 
end of 2019, overseas Chinese enterprises employed 2.266 million foreign employees, accounting 
for 60.5% of the total overseas employees.  
3  PURSUING HIGH -LEVEL OPENING UP AND EXPLORING NEW PROSPECTS FOR WIN -WIN 
COOPERATION  
3.1.  China keeps opening up more sectors and broader fields in a more thorough manner, and relies 
on the advantages of the vast domestic markets to promote international cooperation and achieve 
mutual benefits  and win -win. China strives to promote the common opening -up of the world by 
making efforts on its own opening -up. China commits itself to comprehensively advancing opening 
up to higher levels and promoting the liberalization and facilitation of trade and investment.  
3.1  Promoting the High -Quality Development of Trade  
3.2.  Facing the complicated and profound changes in domestic and international environment, in 
November 2019, China issued the Guiding Opinions on Promoting the High -quality Development of 
Trade , which called for speeding up the transformation from the opening up based on flows of goods 
and factors of production to the opening up based on rules and related institutions, vigorously 
optimizing trade structure, enhancing the balanced and coordinated  development of trade, and WT/TPR/G/ 415 • China  
 
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  promoting orderly and free flow of production factors, efficient allocation of resources and in -depth 
integration of domestic and international markets to realize the high -quality development of trade.  
3.1.1   Implementing a more proactive import policy  
3.3.  Since the last review, China has further streamlined import administration procedures and 
continuously lowered import tariffs. In November 2018, China lowered the import duties on 
1,585  tariff lines covering mech anical and electrical equipment, parts and raw materials, etc. In each 
January from 2019 to 2021, China implemented interim import tariff rates, which are lower than the 
MFN tariff rates of over 700 items of goods, including some advanced equipment, spare parts, 
resource products and pharmaceutical raw materials. In each July from 2019 to 2021, China actively 
fulfilled its commitments on concessions for tariff reductions in the Information Technology 
Agreement (ITA) expansion, and implemented the 4th, 5th and 6th round of tariff reduction for certain 
information technology products. By 2010, China had fulfilled all of its WTO accession commitments 
for tariff reduction, reducing the average tariff level to 9.8%. After further self -initiated tariff 
reduction, China 's average tariff level stood at 7.5% at the beginning of 2021.  
3.4.  On 4 November 2020, China set up ten demonstration zones on import promotion, including 
Shanghai Hongqiao Central Business District and Jinpu New Area in Dalian, Liaoning, covering the 
eastern, central, western regions as well as the old industrial base in Northeast China. These zones 
include sea, land and air ports, reflecting the dynamism and potential of China 's import. The 
demonstration zones are designed to play an important role in f our aspects. First, facilitating import 
and tapping import potential through innovation and reduction of institutional costs. Second, 
expanding the import of technical equipment and raw materials and promoting the deep integration 
of imports and industries . Third, increasing the supply of domestic high -quality goods, and leading 
and creating domestic demand with high -quality supply. Fourth, focusing on the import distribution 
centres as conditions permit  and giving play to the exemplary role of the centres to surrounding 
areas.  
3.1.2   Continuously  improving trade facilitation  
3.5.  In January 2020, China notified measures implementing the Trade Facilitation Agreement (TFA)  
to the WTO ahead of schedule, including measures like "Exchange of Information ", "Provision of 
Information " and "Establishment and Publication of Average Release Times ". So far, China has fully 
implemented the measures stipulated in the TFA.  
3.6.  Since the last review, China has continued vigorously promoting paperless application for 
import and export licen ces and customs clearance. Since 15 October 2018, paperless application for 
import licen ces and customs clearance has been implemented nationwide for goods subject to 
automatic import licen ce administration and goods subject to import licen ce administration (except 
for ozone -depleting substances). Since 1 January 2020, paperless application for export licen ces and 
customs clearance has been implemented nationwide for goods under export restriction 
administration nationwide.  
3.7.  Since 2018, China Cu stoms has integrated the enterprises ' qualifications for customs 
declaration and inspection, and removed the validity period of the registration of customs declaration 
enterprises and their branches. Meanwhile, the inspection and quarantine operations have  been 
integrated into the overall framework and procedures of national customs clearance integration, 
realizing the "five unifications " (namely, unified declaration documents, unified operation system, 
unified risk assessment, unified issuing of instructio ns, and unified on -site law enforcement). By the 
end of 2018, China Customs had successfully completed full integration of national customs 
declaration and inspection. In March 2021, the overall customs clearance time for imports nationwide 
was 37.12 hours , reduced by 61.9% compared with that of 2017; and the overall customs clearance 
time for exports nationwide was 1.67 hours, reduced by 86.4% compared with that of 2017.  
3.8.  In addition, China has continuously deepened the reform of China Compulsory Certificat e (CCC) 
scheme. 62 products with relatively standardized industry development and lower risks were 
removed from the CCC catalogue. Enterprises self -declaration assessment mechanism was 
introduced to the CCC scheme, applying to 19 products. Certification pr ocess was optimized and the 
certification period was reduced by more than 30%.  WT/TPR/G/ 415 • China  
 
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  3.1.3   Actively cultivating new forms and new models of foreign trade and promoting 
innovative development of trade in services  
3.9.  China actively promotes well -regulated, healthy and sust ainable development of cross -border 
e-commerce and other new forms and modes. China has established 105 cross -border e -commerce 
pilot zones in five batches, guided the local authorities to build test grounds, promoted business 
model innovation, and created  a fair, open and transparent development environment. Meanwhile, 
in view of the characteristics of small transaction volume with high frequency of cross -border 
e-commerce, China explored and formed a number of experiences and practices by using new 
techno logies and tools, which have been replicated and adopted nationwide. On 1 January 2019, the 
E-commerce Law came into effect. The standards of the e -commerce sector have been continuously 
improved and the integrity and trustworthiness of the sector have bee n further deepened.  
3.10.   In August 2020, China issued the Overall Plan for Deepening the Pilot Programme of the 
Innovative Development of Trade in Services  to promote the transformation, upgrading and high -
quality development of foreign trade. According to the Plan, Beijing, Tianjin, Shanghai and other 
25 provinces/cities/regions are designated as pilot zones, which will comprehensively explore 
eight pilot tasks within the three -year pilot period. In the key areas of services trade under full 
competition or limi ted competition, and competitive elements of services trade under natural 
monopoly, China promoted the cancellation or relaxation of restrictions on services trade, guided by 
the principles of full removal, substantial relaxation and orderly liberalization  correspondingly.  
3.11.   With the development of modern information and communication technology, digital trade 
thrives and becomes a new engine for the development of trade in services. China is committed to 
fostering an open, fair and non -discriminatory digital  trading environment, and establishing basic 
regimes and standards for property rights, transaction circulation, cross -border transmission and 
security protection of data resources. China hopes to deepen cooperation with other members on 
the basis of mutua l respect and jointly build a fair, reasonable, safe and orderly international 
rules-based system for digital trade.  
3.2  Building a Highland for Foreign Investment  
3.12.   China unswervingly promotes opening up, improves the legal system for foreign investment, 
continuously liberalizes foreign investment market access, and expands the encouraged categories 
for foreign investment. It improves the service system of foreign inv estment, steps up to protect 
the legitimate rights and interests of foreign investment, and constantly optimizes the foreign 
investment environment. Since the last review, China has promulgated the Foreign Investment Law  
and its implementing regulations. C hina has also issued the Circular on Certain Measures for Actively 
and Effectively Utilizing Foreign Investment to Promote Quality Economic Development , the Opinions 
of the State Council on Further Effectively Utilizing Foreign Investment and the Opinions of the 
General Office of the State Council on Further Stabilizing Foreign Trade and Foreign Investment , 
building a policy system for foreign investment in the new era and effectively improving quality and 
level of foreign investment in China.  
3.2.1   Fully impleme nting the Foreign Investment Law and its implementing regulations  
3.13.   On 15 March 2019, the Second Session of the 13th National People 's Congress deliberated and 
adopted the Foreign Investment Law of the People 's Republic of China , which came into effect on 
1 January 2020. On the basis of reviewing the practical experience of the previous legal system for 
foreign investment (namely, the "Three Laws on Foreign Investment ", which include the Law on 
Foreign -owned Enterprises , the Law on Sino -foreign Equity Joint V entures , and the Law on 
Sino-foreign Cooperative Joint Ventures ), the new Foreign Investment Law  unifies the regulations 
on foreign investment activities, and establishes the basic framework of the legal system for foreign 
investment in the new era.  
3.14.   In terms of investment promotion, the new Law requires improving the transparency of 
foreign investment policies, ensuring that foreign -invested enterprises participate in market 
competition on an equal footing, strengthening services for foreign investmen t, as well as 
encouraging and guiding foreign investment in accordance with laws and regulations. In terms of 
investment protection, the new Law requires strengthening the protection of property rights of 
foreign -invested enterprises, reinforcing the const raints on the formulation of normative documents WT/TPR/G/ 415 • China  
 
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  related to foreign investment, encouraging local governments to keep their commitments, and 
establishing a complaint mechanism for foreign -invested enterprises. In terms of investment 
administration, the new  Law requires that foreign investment shall be subject to an administrative 
system of pre -establishment national treatment plus negative list. Foreign investment in sectors not 
included in the Negative List shall be supervised and managed in accordance wit h the principle of 
same treatment for domestic and foreign investment. The approval and record -filing of the 
establishment and changes of foreign -invested enterprises by the authorities in charge of commerce 
shall be removed. The foreign investment informa tion reporting system shall be fully implemented. 
In addition, the new Law clearly stipulates that forced technology transfer through administrative 
means is prohibited.  
3.15.   To ensure the effective implementation of the Foreign Investment Law , the State Counci l 
promulgated the Regulations on the Implementation of the Foreign Investment Law of the People 's 
Republic of China  in December 2019, which came into effect on 1 January 2020, simultaneously with 
the Foreign Investment Law . The Regulations provides impleme ntation details for the major legal 
systems established by the Foreign Investment Law , and develops specific operable rules. In order 
to effectively implement the Foreign Investment Law , the State Council promulgated the Decision 
on Amending and Rescinding  Some Administrative Regulations  on 29 November 2020, overhauled 
administrative regulations inconsistent with the Foreign Investment Law , revised provisions of 
22 administrative regulations, including the Regulations on the Administration of Commercial 
Performances , and rescinded the Administrative Measures for the Establishment of Partnership 
Enterprises within China by Foreign Enterprises or Individuals . 
3.2.2   Actively expanding market access for foreign investment  
3.16.   China significantly shortened the negative lis t for foreign investment access. In June 2020, 
China issued the Special Administrative Measures (Negative List) for the Access of Foreign 
Investment (2020 edition) . China has revised the negative list for foreign investment access four 
times since 2017. Co mpared with the 2017 edition, the items of the latest national negative list have 
been reduced from 63 to 33. The main amendments in previous revisions are as follows. First, in 
the services sector, removing the restriction on foreign shareholding ratio in  railway passenger 
transport companies, international shipping agents and international maritime transport companies; 
and lifting the regulatory requirements that the Chinese side shall hold the controlling majority of 
shares in the joint ventures regardin g the construction and operation companies of gas, heat and 
water supply and drainage networks in cities with a population of more than 500,000, and cinemas 
and performance brokerage institutions. Second, in the manufacturing sector, removing the 
restricti on on foreign shareholding ratio in companies manufacturing special vehicles, new energy 
vehicles and commercial vehicles; and lifting the prohibition of foreign investment in radioactive 
minerals production and processing and nuclear fuel production. Thir d, in the agriculture and forestry 
sector, removing the restrictions on foreign investment in the purchase and wholesale of rice, wheat 
and corn; and lifting the prohibition of foreign investment in wildlife animal and plant resources 
development.  
3.17.   China fu rther opens up its financial services. First, as for the banking sector, in 2018, the cap 
of foreign investment shareholding ratio in Chinese commercial banks was lifted and the unified 
equity investment ratio rules for both domestic and foreign investment  were implemented. The 
Regulations on the Administration of Foreign -invested Banks  and the Detailed Rules for the 
Implementation of the Regulation on the Administration of Foreign -invested Banks were revised in 
October and December 2019 respectively, which  removed the total assets requirement of 
USD 10 billion for foreign banks to set up foreign -invested legal person corporate banks in China 
and the total assets requirement of USD 20 billion for foreign banks to set up branches in China. 
The restrictions on  Chinese shareholders of Sino -foreign joint venture banks were eased as well, and 
the requirement that the sole or major Chinese shareholder must be a financial institution was also 
lifted. Second, as for the securities sector, on 1 April 2020, the cap of foreign investment 
shareholding ratio in securities companies and fund management companies was removed 
nationwide. Eight foreign -holding securities companies, including UBS Securities Co. Limited, have 
been approved. From 1 January 2020, the cap of foreig n investment shareholding ratio in futures 
companies was removed, and JP Morgan Chase Futures Co., Ltd. was approved as the first foreign 
wholly -owned futures company. Third, as for the insurance sector, as of the end of 2019, the 
requirements of operating  business for 30 years and operating a representative office for 
2 consecutive years before the establishment of a foreign insurance institution were lifted 
nationwide, and foreign insurance group companies were allowed to invest in the establishment of WT/TPR/G/ 415 • China  
 
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  insurance institutions. From 2020, the cap of foreign investment shareholding ratio in life insurance 
companies was eased to 100%. Fourth, as for other sectors, overseas financial institutions have 
been allowed to establish and invest in pension management c ompanies. Financial institutions in 
trust, financial leasing, auto finance, money brokerage, and consumer finance have been encouraged 
to introduce overseas professional investors with unlimited shareholding cap.  
3.2.3   Expanding the scope of encouraged foreign i nvestment  
3.18.   In June 2019, China issued the Catalogue of Encouraged Industries for Foreign Investment 
(2019 edition) , with a total of 1,108 items. This Catalogue combined the encouraged items in the 
Catalogue for the Guidance of Foreign Investment Industries  with the items in the Catalogue on 
Industries Advantageous to Foreign Investment in the Central and Western Regions of China , 
significantly expanding the scope of encouraged foreign investment. In December 2020, the 
Catalogue of Encouraged Foreign Investme nt Industries (2020 edition)  was published with 
1,235  items, an increase of 127 compared with the 2019 edition. The main feature of the revision is 
to further encourage foreign investment in advanced manufacturing, modern services and 
advantageous industri es in central and western regions.  
3.2.4   Promoting the innovation -driven development of national economic and 
technological development z ones  
3.19.   As of May 2021, China has set up 217 national economic and technological development zones 
in 31 provinces/autonomous regions/municipalities, with 107 in the eastern region, 63 in the central 
region and 47 in the western region. These Development Zones con tribute more than 10% of 
national GDP and fiscal revenue. They also take up 20% of national industrial added value, total 
value of import and export and utilization of foreign investment. In May 2019, the State Council 
issued the Opinions on Advancing Inno vation in National Economic and Technological Development 
Zones and Building a New Highland for Reform and Opening -up and offered 22 supportive measures 
in five aspects: improving the quality of open economy, granting greater autonomy in reform, 
building a  modern industrial system, improving the functions of domestic and foreign cooperation 
platforms, and strengthening guarantees for productive factors and intensive use of resources.  
3.3  Pursuing Innovative Co operation in Outbound I nvestment and Achieving Mutua l 
Benefits and Win-Win with the Host Countries  
3.20.   China gives priority both to FDI attraction and outbound investment. China strives to improve 
the quality and level of facilitation for outbound investment. China continuously improves, promotes 
and guarantees  the policy and service system for outbound investment. Committed to maintaining 
the stability of global industrial chains and supply chains , China has brought  new dynamics into the 
recovery of the world economy.  
3.3.1   Advancing the reform of outbound investment  administration system and improving 
the public service system for outbound investment  
3.21.   In January 2018, the Ministry of Commerce and relevant ministries and departments jointly 
issued the Interim Measures for the Reporting of Outbound Investments Subject t o Record -filing or 
Approval . In March 2018, the National Development and Reform Commission implemented the 
Measures for the Administration of Outbound Investments of Enterprises  to facilitate outbound 
investment. In May 2019, the Ministry of Commerce issue d the Rules for the Implementation of the 
Reporting of Outbound Investment Subject to Record -filing or Approval . In addition, the Ministry of 
Commerce provides public service annually to help enterprises understand the business environment 
of host countrie s and better comply with the laws and regulations of host countries. These efforts 
include the formulation and publication of the Guide for Countries and Regions on Overseas 
Investment and Cooperation  and the Report on Development of China 's Outward Invest ment and 
Economic Cooperation.   
3.3.2   Promoting the facilitation of outbound investment and cooperation  
3.22.   In recent years, China has issued  the Decision on Eliminating a Number of Administrative 
Licenses , revised the Regulations on Contracting Foreign Projects  and other administrative 
regulations, and removed two items subjects to administrative approval. To be specific, these WT/TPR/G/ 415 • China  
 
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  two removed items were the approval of business qualification for contracting foreign projects and 
the approval of bidding tende ring (bid negotiation) for contracting foreign projects. These efforts 
have facilitated Chinese enterprises ' cooperation with their partners in overseas infrastructure. Since 
2015, the Ministry of Commerce has implemented paperless management of record -filing of 
enterprises ' outbound investments. In March 2020, the Ministry of Commerce issued the Notice on 
Improving Paperless Management of Record -filing (Approval) of Outbound Investments  to further 
facilitate outbound investment.  
3.4  Building a Global -Oriented Network of High -Standard Free Trade Areas and 
Promoting the Liberalization and Facilitation of Trade and Investment  
3.23.   Since the last review, China has signed free trade agreements (FTAs) with Mauritius and 
Cambodia respectively, signed protocols on upgrading  FTAs with Singapore and New Zealand 
respectively, and signed Protocol of the Second Phase of FTA with Pakistan. China -Mauritius FTA 
came into effect on 1 January 2021, which is the first FTA signed between China and an African 
country. The  protocol upgrad ing China -Chile FTA came into effect in March 2019. In addition, in 
December 2018, the Mainland of China signed the Agreement on Trade in Goods under the Closer 
Economic Partnership Arrangement (CEPA) with the Hong Kong Special Administrative Region and 
the Macao Special Administrative Region respectively. In November 2019, the Mainland of China 
signed the Agreement Concerning Amendment to the CEPA Agreement on Trade in Services with the 
Hong Kong Special Administrative Region and the Macao Special Administ rative Region respectively.  
3.24.   In November 2020, China signed the Regional Comprehensive Economic Partnership 
Agreement (RCEP) with the ten ASEAN countries, Japan, Republic of Korea, Australia and 
New Zealand. RCEP is a modern, comprehensive, high -quality lar ge-scale regional free trade 
agreement that delivers mutual benefits. In terms of trade in goods, over 90% of products will 
eventually enjoy zero tariff. The principle of regional accumulation is adopted to deepen the industrial 
chains and value chains wit hin the region. In terms of services and investment, the overall level of 
openness of all parties is significantly higher than their WTO commitments. The RCEP adopts a 
negative list approach to investment liberalization. It also covers modern rules on issu es such as 
intellectual property rights, e -commerce, competition policy, government procurement, conformity 
assessment procedures, etc.  
3.25.   Up to now, China has signed 19 free trade agreements with 26 countries or regions, in which 
over 90% of China 's tariff l ines are or will reduce to zero. Currently, there are 12 ongoing 
negotiations for new FTAs or upgrading existing ones, including China -Japan -Republic of Korea FTA, 
China -Gulf Cooperation Council FTA, China -Sri Lanka FTA, China -Israel FTA, China -Norway FTA,  
China -Republic of Moldova FTA, China -Panama FTA, China -Palestine FTA, the Second Phase of China -
Republic of Korea FTA, the upgrading of China -Peru FTA, and the follow -up talks for the upgraded 
China -Singapore FTA, and the China -Belarus Agreement on Trade in Services and Investment.  
3.26.   China continues enhancing liberalization of trade and investment with its trading partners. In 
October 2019, the Agreement on Trade and Economic Cooperation between China and Eurasian 
Economic Union  came into effect. In De cember 2020, the leaders of China and Europe jointly 
announced the conclusion of negotiations on China -EU Comprehensive Agreement on Investment . 
Review and translation of the texts are now in process, with a view to signing the Agreement and 
bringing it in to effect promptly. In the meantime, China favorably considers joining the 
Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP) and has made 
informal contacts with relevant CPTPP signatories.  
3.5  Developing High -Standard Pilot Free Tra de Zones and Free Trade ports  
3.5.1   Promoting high-quality development of pilot free trade zones  
3.27.   Developing pilot free trade zones is an important strategic measure of China to voluntarily 
advance reform and opening up, which is a milestone for China 's reform an d opening up. Since 2018, 
China has successively set up 10 pilot free trade zones in Hainan, Shandong, Beijing and other 
regions, added Lin -gang New Area to Shanghai Pilot Free Trade Zone, and expanded Zhejiang Pilot 
Free Trade Zone. Currently, a total of 21 pilot free trade zones in China have yielded positive results 
on further reform and opening up in terms of promoting liberalization and facilitation of trade and WT/TPR/G/ 415 • China  
 
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  investment, enabling financial services to boost real economy and transforming government 
functions.  
3.28.   Further increasing efforts of exploration and testing of opening up.  
3.29.   For the last three  years since 2018, China has been shortening the negative list for foreign 
investment access in pilot free trade zones. The number of special administrative me asures has been 
reduced from 95 in 2017 to 30 in 2020. The market access has been continuously enhanced in 
manufacturing and service industries, creating a much more open and transparent market.  
3.30.   Promoting the level of trade liberalization and facilitation.  
3.31.   China improves the Single Window for International Trade through innovations such as 
blockchain platforms for public services in Fujian Pilot Free Trade Zone. The functions of the Single 
Window have been further optimized with better service capabilities.  The pilot free trade zones 
introduced a series of facilitation measures, such as establishing central warehouses for the return 
of imported goods sold via cross -border e -commerce businesses, and enabling paperless digital 
services for the entire procedure  from enterprises ' customs registration to port access. These 
measures have greatly accelerated customs clearance, enhanced supervision efficiency and reduced 
business costs. Currently, 98% of customs clearance is completed digitally at Shanghai Port, 
lowering direct costs by more than  RMB 400 million each year.  
3.32.   Promoting openness and innovation of the financial sector, with a view to serving 
the real economy.  
3.33.   Market Access for foreign -invested financial institutions has been substantially liberalized. The 
free trade account system introduced in Shanghai Pilot Free Trade Zone is now expanding to pilot 
free trade zones in Hainan, Guangdong and Tianjin. Reform measures explored in pilot free trade 
zones are replicated and promoted across China , such as allowing foreign -invested enterprises to 
voluntarily settle their foreign exchange capital and providing financing and settlement of railway 
documentary L/C. By making corporate financing easier, these measures have given a strong boost 
to the re al economy.  
3.34.   In 2020, a total of 393,000 new enterprises were established in the first 18 pilot free trade 
zones, including 6,472 foreign -invested enterprises. The paid -in foreign investment was 
RMB 176.38  billion and total imports and exports reached RMB 4 .7 trillion. At the end of 2020, 
260 outcomes of institutional innovation were put in place in pilot free trade zones and then 
introduced to the rest of the country, continuously improving the business environment and 
effectively boosting market vitality.  
3.5.2   Promoting the vigorous development of Hainan free trade port  
3.35.   In June 2020, China issued the Master Plan for Hainan Free Trade Port . The plan makes 
institutional arrangements regarding trade, investment, cross -border capital flow, personnel 
entry/exit, conv enient transportation, as well as safe and orderly flow of data. In the area of trade 
in goods,  the liberalization and facilitation arrangements are implemented with zero -tariff as the 
basic feature. In the area of trade in services,  the liberalization and  facilitation measures focus on 
both market access and business operations. A negative list for cross -border services trade is 
adopted. In the area of investment liberalization, market access is significantly expanded with less 
prohibitions and restriction s, highlighting the principle of  "entry unless on the list ". In the area of 
investment facilitation, the Single Window for International Investment is set up in Hainan to provide 
investors with all -in-one package service and convenient investment environme nt. 
3.36.   Since the release of the Master Plan for Hainan Free Trade Port last year, the policies and 
measures to liberalize market access as well as the negative list for foreign investment access have 
taken effect. Market entities have been instantly attracted to Hainan. The offshore duty -free 
shopping policy has been improving. And the Yangpu Port has witnessed significant growth in terms 
of throughput.  WT/TPR/G/ 415 • China  
 
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  4  BUILDING AN OPEN WORLD ECONOMY AND PROMOTING THE CONSTRUCTION OF A 
COMMUNITY WITH A SHARED FUTURE F OR MANKIND  
4.1.  China is always committed to safeguarding world peace, contributing to global development 
and upholding international order with a view to making economic globalization more open, inclusive, 
beneficial to all, balanced, and win -win, and promotin g the construction of a community with a 
shared future for mankind . 
4.1  Fully Supporting Global Cooperation on Combating  COVID -19 with Concrete Actions  
4.2.  During the COVID -19 outbreak when people 's safety and health were seriously endangered, 
China mobilized maximum efforts and resources within the shortest period of time to contain the 
spreading of the pandemic. With arduous efforts, China made major strategic achievements in 
fighting against the pandemic and took the lead in resuming work and produ ction. The complete 
industrial chains and strong support systems in China play a positive role in boosting the recovery 
of the world economy. As combating the pandemic is the most urgent task facing the international 
community, President Xi Jinping is prom oting international cooperation and calling for building a 
global health community for mankind, strengthening bilateral and multilateral cooperation, and 
jointly addressing the challenges posed by the pandemic. China has been actively fulfilling its 
intern ational obligations and made significant contribution to the global cooperation on combating 
COVID -19. 
4.3.  China is sharing information and experience in fighting against the pandemic with 
the international community.  
4.4.  After the outbreak, China immediately took  the initiative to share the information on pandemic 
with the WHO, as well as other countries and regional organizations including the whole coronavirus 
genome sequence and the specific primers and probes for detecting the coronavirus. China regularly 
notified the WHO and relevant countries of information of the pandemic. China compiled the 
documents of COVID -19 prevention and control plans and treatments, which were translated into 
three languages, and shared with more than 180 countries, as well as over 1 0 international and 
regional organizations.  
4.5.  China is providing humanitarian assistance to the international community.  
4.6.  China launched the largest global emergency humanitarian operation since the founding of the 
People 's Republic of China. China has been a ctively sending medical assistance overseas, donating 
medical supplies to 150 countries and regions and 12 international organizations, and sending 
36 medical teams to 34 countries. China provided the WHO with two donations totaling 
USD 50 million in cash for fighting the pandemic. In May 2020, President Xi Jinping announced at 
the opening ceremony of the 73rd World Health On -line Assembly that China would donate 
USD 2 billion in the coming two  years supporting the international community to combat COVID -19. 
4.7.  China is making every effort to improve the accessibility of vaccines.  
4.8.  China firmly believes that COVID -19 vaccines are first and foremost a global public good, and 
has taken the lead in committing that all vaccines developed shall be considered as publi c goods. 
China has been working hard to improve the accessibility and affordability of vaccines to developing 
members. China is working with over 10 countries in vaccine R&D and production. China has 
participated in the WHO -initiated COVAX and committed to  donating a first batch of 10 million 
vaccine doses to developing countries in urgent need. China is now donating vaccines to 
85 developing members and 4  international organizations, and exporting vaccines to more than 
40 countries. In May 2021, President Xi Jinping announced at the Global Health Summit that China 
would provide an additional USD 3 billion in international aid over the next three years to support 
combating COVID -19 as well as economic and social recovery in other developing countries. Up to 
now, China has supplied 350  million doses of vaccines to the whole world. And China supports for 
waiving intellectual property rights on COVID -19 vaccines, and hopes to see a consensus on this 
issue be reached in the WTO and other international organizatio ns soonest possible.  
4.9.  China is promoting the export of pandemic  control supplies in an orderly manner.  WT/TPR/G/ 415 • China  
 
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  4.10.   As the largest manufacturer of anti -pandemic supplies, China spares no effort in providing 
supplies to the rest of the world, while meeting the domestic needs. By May 2021, China had 
provided over 280  billion masks, over 3 billion protective suits and 4 billion testing kits to more than 
200 countries and regions, providing strong support to other countries in their fight against 
COVID -19. 
4.11.   China is  taking trade facilitation measures during the pandemic.  
4.12.   In order to facilitate the compulsory product certification process, China encourages and 
advises certification bodies to provide online training for enterprises, carries out virtual inspections 
on manufacturers, opens fast tracks and green lanes, and issues electronic certificates. In 2020, a 
total number of 142,000 expired CCC certificates at home and abroad were renewed. In so doing, 
China recognized and accepted the conformity assessment results o f the mutual recognition systems 
established through multilateral or bilateral channels.  
4.2  Firmly Supporting the Multilateral Trading System with the WTO at its Core  
4.13.   The multilateral trading system with the WTO at its core is the cornerstone of economic 
globalization and free trade. However, the system at present is facing unprecedented challenges. At 
the World Economic Forum Virtual Event of the Davos Agenda held in January 2021, 
President  Xi Jinping pointed out in his special address that it was necessary to build an open world 
economy and firmly safeguard the multilateral trading system, push forward the WTO reform and 
protect the development rights and policy space of developing members.   
4.14.   This year marks the 20th anniversary of China 's accession to the WTO. China has always been 
a staunch supporter, active participant and major contributor to the multilateral trading system. 
China calls on the WTO members to maintain a rules -based, transparent, non -discriminatory, open 
and inclusive multilateral trading system, and to oppose unilateralism and protectionism. China also 
calls on the WTO members to discard discriminatory or exclusionary standards, rules or regimes, 
and to take down barriers to trade, investment and technological exchanges. China has fully 
participated in the various work of the WTO, actively participated in reform of the WTO, and 
committed itself to supporting the WTO 's greater role in further opening up and enhancing 
development, and strengthening the authority and efficacy of the multilater al trading system.  
4.2.1   Actively participating in reform of the WTO, and opposing unilateralism and 
protectionism  
4.15.   In China 's view, the WTO is facing severe challenges: unilateralism and protectionism are 
currently spreading; the dispute settlement mechanism has  been undermined; the multilateral 
negotiation process is slow; and COVID -19 has dealt a heavy blow to the global economy. As 
President Xi Jinping emphasized on several occasions, China supports necessary reform of the WTO 
and firmly safeguards the multila teral trading system.  
4.16.   In November 2018, the Chinese Government issued China 's Position Paper on WTO Reform , 
which outlined three basic principles and five suggestions on WTO reform. The three basic principles 
are: the reform shall preserve the core value o f the multilateral trading system; safeguard the 
development interests of developing members; and adhere to the practice of decision -making by 
consensus. The five suggestions are: the reform should uphold the primacy of the multilateral trading 
system; the  priority of the reform is to address the existential problems faced by the WTO; the 
reform should address the imbalance of trade rules and respond to the latest developments of the 
times; the reform should safeguard the special and differential treatment for developing members; 
and the reform should respect members ' development models. In May 2019, China submitted its 
Proposal on WTO Reform to the WTO, putting forward ideas on four areas for action and 12 topics, 
such as suggestions on tightening the disci plines to curb unilateral measures inconsistent with 
WTO rules, and rectifying the inequity in rules on agriculture.  
4.17.   China believes that reform of the WTO should aim to restore the normal operations of the 
Organization soonest possible. In particular, memb ers must break the impasse of the Appellate Body, 
curb unilateralism and protectionism, and address as a priority the long -standing and unsolved 
inequity in rules on agriculture. In this regard, pressing issues include high AMS entitlement enjoyed 
by devel oped members, and legitimate requests of developing members about public stockholding WT/TPR/G/ 415 • China  
 
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  programmes for food security purposes. In light of the gaps and ambiguities in the multilateral trade 
remedy rules, the countervailing and anti -dumping rules should be fu rther clarified and improved in 
order to prevent the abusive use and misuse of trade remedies. Meanwhile, the WTO rules need to 
keep pace with the times, and strive to achieve outcomes in regard to new issues such as investment 
facilitation, e -commerce, se rvices domestic regulation, and MSMEs.  
4.18.   China is fully engaged in reviving the WTO Appellate Body. China, together with 120 members, 
submitted joint proposals to initiate the appointment process of the Appellate Body members. China 
is one of the 42 members that submitted the proposal on the Appellate Body reform. Moreover, 
China co -established the Multi -Party Interim Appeal Arbitration Arrangement (MPIA) with 
24 members to restore the functioning of the dispute settlement mechanism.  
4.19.   China always believes tha t unilateralism and protectionism are undermining the rules -based, 
free and open international trade order, harming the interests of WTO members, especially 
developing members, and damaging the authority and efficacy of the WTO. China expressed its 
serious  concern and strong opposition to the unilateral and protectionist actions that specific 
members have taken, which are in serious violation of the fundamental rules and spirit of the WTO. 
China brought the case against the United States with respect to the  Section 301 tariff measures, 
and the Panel fully supported China 's claim. China raised concerns regarding the abusive use of 
national security and economic sanctions by certain members in the WTO subsidiary bodies. China 
calls on all members to maintain o pen markets, and promote trade liberalization and facilitation. 
Trade frictions between members should be resolved in the framework of the WTO according to 
multilateral trade rules, and based on mutual respect.  
4.2.2   Deeply and fully participating in multilatera l negotiations and discussions, and 
earnestly fulfilling the obligations as a WTO Member  
4.20.   China has been actively participating in the WTO negotiations on all issues. Our aim is to 
establish international trade rules that respond to the development of the times and needs of the 
industries, and take full consideration of members ' economic development level and capability. China 
has participated in the regular meetings of WTO councils and committees in a constructive way and 
raised issues o f its concern. China has earnestly fulfilled its commitments to the WTO, implemented 
the commitment to open goods and services markets, and strengthened the protection of intellectual 
property rights. In addition, China has taken initiatives to further ope ning up, making contribution 
to build an open world economy. China strictly abides by the WTO rules when making and 
implementing economic and trade policies, so as to ensure the stability, transparency and 
predictability of those polices.  
4.21.   China actively participates in the WTO negotiations on fisheries subsidies, putting forward 
proposals to prohibit certain forms of subsidies which contribute to overcapacity and overfishing and 
to eliminate subsidies that contribute to IUU fishing. By maki ng these efforts, China will contribute 
to the timely completion of the negotiations and realization of the UN 2030 Agenda for Sustainable 
Development . China 's newly adopted fishery policies for 2021 to 2025 will further promote high -
quality development an d modernize the fisheries sector. The direction of adjustment of these new 
policies is in line with the direction of the WTO negotiations in fisheries subsidies. These new policies 
incorporate fishery management element into subsidy policies, promote the t ransformation of the 
fisheries industry and provide guidance to the fishermen to conserve the fishery resources.  
4.22.   Investment facilitation is an issue benefiting all WTO members and attracts increasing 
attention from business communities. Multilateral rules on investment facilitation will facilitate cross -
border investment, enhance trade capacity and achieve the development goals. In November 2019, 
92 members issued the Joint Ministerial Statement on Investment Facilitation for Development  
during the Informal  WTO Ministerial Meeting in Shanghai. In 2020, the Investment Facilitation for 
Development proceeded into negotiating stage. Together with over 100 members, China is fully 
participating in the process. With joint efforts, the participants are working towar ds an early 
integration of investment facilitation into the multilateral framework, and an outcome that benefits 
all WTO members.  
4.23.   China values and supports the e -commerce related work in the WTO. China has actively 
participated in relevant discussions, sub mitted concrete proposals, and joined the "Friends of 
E-Commerce for Development ". In January 2019, China, together with other 75 WTO Members, WT/TPR/G/ 415 • China  
 
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  confirmed their intention to commence WTO negotiations on trade -related aspects of e -commerce. 
Since then, China has submitted four proposals, pushing the negotiations forward together with 
other participants. China also supports the work related to services domestic regulation within the 
WTO framework. In December 2017, 59 Members, including China, announced the ini tiation of the 
plurilateral negotiation on services domestic regulation. The negotiation has made substantial 
progress following three years of intensive consultations.  
4.24.   China has fully fulfilled its obligations of notification under all WTO agreements. As the largest 
developing member, China has made significant progress in subsidy notification, which is the most 
difficult exercise in terms of data collection process. In 2019, China submitted the New and Full 
Subsidy Notification  at the central and sub -central government level during the period from 2017 to 
2018. The notification covers 79 subsidy programmes at central level and 420 ones at sub -central 
level (31 provinces/autonomous regions/municipalities and 5 cities directly designated by the State 
Council ). Programmes in all provincial administrative regions and local governments at the 
provincial, city and county levels are included. And it was the first time that China notified fisheries 
subsidies in a separate chapter. The number of notified programmes reached a new high record of 
China 's notifications.  
4.2.3   Supporting a bigger role of the WTO  
4.25.   In November 2019, China successfully hosted the Informal WTO Ministerial Meeting in 
Shanghai. The ministers or representatives from 33 members attended the meeting and reached 
broad consensus. On that occasion, the ministers exchanged ideas on issues of safeguarding the 
multilateral trading system, working towards a successful 12th Ministerial Conference (MC12) and 
supporting the necessary reform of the WTO. During the S econd China International Import Expo, 
China and the WTO jointly released the World Trade Report 2019 （Chinese Version) . 
4.26.   China is actively participating in preparing the MC12 outcomes. China believes that MC12 will 
be a testimony to Members ' confidence in the multilateral trading system. China is willing to work 
with other Members to build consensus, to support the new Direc tor-General 's work, and to achieve 
outcomes on issues such as fisheries subsidies, fighting COVID -19 pandemic, agriculture, investment 
facilitation, services domestic regulation , e-commerce, and the Appellate Body reform.  
4.27.   China is working hard to enable th e WTO to play an important role in pandemic prevention 
and control and economic recovery. China would continue its active participation in WTO discussions 
on trade liberalization for medical products, vaccine 's intellectual property rights waiver, and othe r 
trade and health -related issues. These efforts will help safeguard global public health and promote 
world economic recovery. As a member of the WTO Informal Working Group on MSMEs, China has 
always actively participated in relevant consultations. In this  regard, China strongly supports 
cooperation among WTO members on MSMEs issues such as information exchange, sharing best 
practices and trade facilitation. After the outbreak of COVID -19, China and other Members of the 
Working Group issued a joint statemen t in May 2020 to support MSMEs in response to COVID -19. 
At the end of 2020, a package of six proposals was adopted as the WTO joint statement initiative, 
marking a major step forward in terms of supporting MSMEs to overcome the pandemic crisis 
through trad e. 
4.28.   China actively participates in the WTO 's "Aid for Trade " initiative, fully supports the integration 
of developing Members into the multilateral trading system, and advocates a bigger role of the WTO. 
China 's LDCs and Accessions Programme (the "China Pro gramme ") was set up to help the LDCs join 
the WTO. By the end of 2020, China had contributed a total of USD 4.2 million to the "China 
Programme ". This Programme provides technical assistance and capacity -building to the acceding 
parties, supports the acces sion work of the WTO, and enhances the representativeness of 
WTO membership, contributing to strengthening the multilateral trading system. In September 2018 
and December 2019, the 7th and 8th China Round Table meetings took place in Kazakhstan and 
Russia n Federation  respectively. In December 2020, the 9th China Round Table meeting was held 
virtually as one of the events to celebrate the 25th anniversary of the WTO. In March 2021, China 
shared its experience in joining the WTO with other acceding parties online.  
4.29.   At the same time, China also signed an economic and technical cooperation agreement with 
the WTO through the South -South Cooperation Assistance Fund, pledging to provide USD 8 million 
to the WTO for designing or implementing research -related projects regarding Aid for Trade and WT/TPR/G/ 415 • China  
 
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  other areas. In May 2019, the WTO launched the project of "Improving Access To Trade and Market 
Access Statistics and Developing Trade In Value -Added Databases " with USD 1.1 million from the 
above -mentioned fund, helping developing members collect detailed official trade statistics. This 
project is of vital importance to building a real global computing system of trade in value -added and 
global value chains, and pro vides capacity -building to those members in Asia and Africa.  
4.30.   In addition, China is constructively participating in discussions on issues such as women 's 
economic empowerment, trade and health, and trade and environment. China co -sponsored the 
Trade and Hea lth initiative to update the WTO rules to keep pace with the times.  
4.3  Promoting Fairer and More Equitable Global Economic Governance System  
4.31.   Since the last review, China has continue d its constructive participation in economic and trade 
cooperation agenda of G20, BRICS, and APEC . In this process, China put forward plans and 
suggestions on the liberalization and facilitation of trade and investment , and building of an open 
world economy.  
4.32.   China actively supports the  G20's role  as a major forum for international economic 
cooperation. With joint efforts of all G20 members, the G20 successfully adopted Leaders ' Summit 
Declarations from 2018 to 2020 . These declarations include  commitments on uphold ing the 
multilateral trading system, support ing the necessary reform of the WTO, keep ing the market open, 
and creat ing a free, fair, inclusive, non -discriminatory, transparent, predictable, and stable trade 
and investment environment. Facing  the grave challen ges posed by the outbreak and spread of 
COVID -19, the G20 held two leaders ' summits and one trade ministerial meeting  in 2020 . A number 
of outcome  documents  were adopted, such as the Extraordinary G20 Leaders ' Summit Statement 
on COVID -19, the Rome Declara tion and G20 Actions to Support World Trade and Investment in 
Response to COVID -19. G20 m embers were able to reach consensus on strengthening international 
cooperation in combating COVID -19 and stabilizing the global industrial chains and supply chains. 
These efforts have boosted the world 's confidence and motivation in revitalizing international trade 
and investment and building an open world economy.  
4.33.   China contributes constructively to the economic and trade cooperation of the BRICS 
countries. With other members, China actively facilitated the release of the joint communiqués of 
Meetings of BRICS Trade Ministers from 2018  to 2020. The BRICS trade ministers reached consensus 
on supporting the multilateral trading system ; opposing unilateralism and protectio nism; promoting 
the Model E -Port Network ; and making progress in terms of trade and investment facilitation, 
e-commerce, service s trade, intellectual property rights, technical specifications and 
standardization, and MSMEs. These documents laid solid found ation for the BRICS leaders to deliver 
economic and trade outcomes. Since the outbreak of the pandemic,  the BRICS countries have 
reached consensus  on wide -ranging issues. I n the field of economic  cooperation  and trade,  the 
BRICS countries decided to strengthen  the coordination of combating COVID -19, and jointly 
safeguard the stability of the industrial chains and supply chains . This sends  a strong message to 
the world that the BRICS countries are resolute in jointing hands and ris ing to the external 
challenges. The Strategy for BRICS Economic Partnership 2025  adopted at the 12th BRICS summit 
maps out the key areas of economic and trade cooperation and the way forward for the next 
five years.  
4.34.   China has deeply  participated  in APEC economic and trade cooperation, and is committed to 
building an Asia -Pacific community with a shared future. With other economies , China contributed 
to the APEC Putrajaya Vision 2040 , which envisages the cooperation of the next two decades. Facing  
the pandemic, China contributed to the two Statements made by APEC Ministers Responsible for 
Trade in 2020 on combating COVID -19, and the Declaration on Facilitating the Movement of Essential 
Goods . China helped to build consensus among the APEC economies  on supporting the multilateral 
trading system, promoting regional economic integration, and enhancing regional trade and 
investment liberalization and facilitation. China put forward nearly 30 initiatives in such fields as 
inclusive trade and investment, digital economy,  interconnectivity, trade facilitation, and the green 
economy. China supported the 23 ports from 13 economies to join the Asia -Pacific Model E -Port 
Network, completing the APEC TiVA Database.  
4.35.   In addition, China promotes the Asia -Europe Meet ing (ASEM) economic and trade cooperation 
mechanism with a pragmatic approach. China successfully hosted the 19th intergovernmental and WT/TPR/G/ 415 • China  
 
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  ministerial Meeting of the Greater Tumen Initiative (GTI) Consultative Commission in 2019. 
Economic cooperation in the G reater Mekong Sub -region has been carried out in a practical way.  
4.4  Building International Platforms for Opening Up and Cooperation  
4.4.1   Promoting high quality cooperation for the Belt and Road Initiative  
4.36.   In April 2019, the Second Belt and Road Forum for International Cooperation was held in 
Beijing, delivering a series of cooperation outcomes. By the end of February 2021, a total of 
171 countries and international organizations had signed cooperation documents with China on the 
joint construction of the B elt and Road. China will provide better path for the joint construction of 
the Belt and Road and bring more opportunities to partners of this Initiative. China is willing to work 
with all parties to ensure stable and resilient cooperation in the high -quality construction of the Belt 
and Road, so as to provide strong impetus for building a community with a shared future for 
mankind.  
4.37.   From 2018 to 2020, China has made new achievements in economic and trade cooperation 
with countries along the Belt and Road, to talling USD 4 trillion in trade and over USD 55 billion in 
accumulated investment. In these countries, trade facilitation has been promoted and investment 
environment has been improved. Since 2020, facing the grave impact of the COVID -19, China has 
reinfor ced international cooperation to combat the pandemic, and advocated for Health Silk Road , 
Information Corridor  and Digital Silk Road . With greater cooperation on green energy, green 
infrastructure and green finance, a Green Silk Road  is being built.  
4.4.2   Hostin g China International Import Expo (CIIE) with a view to benefiting all  
4.38.   Hosting the CIIE is an important and significant decision made by China to promote a new 
round of high -level opening up, a major policy measure of China to further open its market to th e 
world. Since 2018, China has successfully hosted three sessions of the CIIE. During the past 
three  years, the CIIE has become a major platform featuring four areas of activities: international 
procurement, investment promotion, cultural and people -to-people exchanges, as well as opening 
up and international cooperation. The CIIE greatly contributes to building an open world economy 
and a community with a shared future for mankind.  
4.39.   In November 2020, the third CIIE was convened at a special time. During the  COVID -19 
pandemic, all countries and regions suffered huge losses and the global economy was hit hard. China 
sought common development with the rest of the world, advocating for open market, close 
cooperation and mutual benefits. This global trade event w as held successfully under the 
precondition of ensuring pandemic control and safety. It demonstrated China 's sincerity in sharing 
its development opportunities with the world and contributing to the global economic recovery. The 
Expo, with a total exhibiti on area of nearly 360,000 square meters, received nearly 
400,000  registered visitors and over 3,000 journalists from home and abroad. The accumulative 
value of tentative deals reached USD 72.62 billion, with a year -on-year increase of 2.1%.  
4.4.3   Innovatively holding the Canton Fair, China International Fair for Trade in Services, 
China International Consumer Products Expo and China International Fair for Investment 
& Trade  
4.40.   In addition to the CIIE, China Import and Export Fair (Canton Fair), China International Fair 
for Trade in Services (CIFTIS), China International Consumer Products Expo (CICPE) and China 
International Fair for Investment & Trade (CIFIT) are also important exhibition platforms for China 
to put forward its opening up measures.  
4.41.   In 2020, to mitigate the impact of COVID -19 on the international trade, China held 
two sessions of Canton Fair online, which was the first time that such a large -scale international 
economic and trade exhibition could be completely held online. These efforts h elped to keep 
industrial chains and supply chains in smooth operation , and demonstrated China 's proactive 
response to the pandemic and its support for the multilateral trading system as a major country. 
Buyers from more than 200 countries and regions regis tered for both two sessions of the 
Canton  Fair. WT/TPR/G/ 415 • China  
 
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  4.42.   The CIFTIS is the first international and comprehensive fair for trade in services at the national 
level in the world, covering 12 services sectors as defined by the WTO. In September 2020, the 
CIFTIS was suc cessfully held in Beijing, attracting 22,000 enterprises and institutions from 
148 countries and regions. As the first major international economic and trade event held both online 
and offline by China since the COVID -19 outbreak, the CIFTIS demonstrated C hina's remarkable 
achievements in pandemic control and in economic and social development. It fully showed China 's 
firm confidence in furthering opening up to the world.  
4.43.   In May 2021, China hosted the first CICPE in Hainan Province, attracting 1,505 enterpr ises 
from 70 countries or regions. Foreign brands accounted for 52% of all participating brands, covering 
75% of the exhibition area. Over 30,000 professional buyers and over 240,000 visitors joined the 
event. As a global platform of displaying and trading  high-end consumer products, the CICPE helps 
all countries share market opportunities of China, boosting the global economic recovery and growth. 
It also enables China to offer the world more quality consumer products. China is willing to deepen 
bilateral,  multilateral and regional cooperation, with comprehensive reforms and the highest level of 
openness being experimented in Hainan Free Trade Port. China is committed to working with all 
parties to create a better future for mankind.  
4.44.   In September 2018, the 20th CIFIT was held in Xiamen City, Fujian Province, featuring the 
theme of "Implementing New Development Philosophy, Integrating the Belt and Road Initiative, and 
Promoting Two -way Investment ". This event included more than 80 forums such as meetings with 
transnational corporations, symposiums on investment facilitation and development, and 
international symposiums on overseas economic and trade cooperation zones. Altogether 
1,005  industrial and commercial groups, about 5,000 enterprises and m ore than 
120,000  businessmen from 128 countries and regions attended the event. More than 
1,900  investment projects with a total investment amount of more than RMB 500 billion were signed 
at the CIFIT. International organizations including the WTO, the Org anization for Economic 
Co-operation and Development (OECD) and the World Association of Investment Promotion Agencies 
(WAIPA) participated in the Fair.  
4.5  Continuously Strengthening the South -South Cooperation  
4.45.   As the largest developing country, China resonate s with other developing members regarding 
the need for development. While pursuing its own development, guided by the principle of upholding 
justice while pursuing shared interests and the principle of sincerity, real results, affinity, and good 
faith, Chi na offers assistance to other developing members, especially the least -developed countries 
(LDCs), within the framework of South -South cooperation. China keeps promoting the 
South -South  cooperation, implementing the UN 2030 Agenda for Sustainable Developme nt and 
building a community with a shared future for mankind.  
4.5.1   Implementing practical m easures for the South -South cooperation  
4.46.   Since the last review, China has fulfilled its responsibility as a major country and taken 
practical measures to make further cont ribution to global development. At the Second Belt and Road 
Forum for International Cooperation held in 2019, President Xi Jinping announced a series of 
important measures. Among other things, these measures include: to implement the Belt and Road 
South -South Cooperation Initiative on Climate Change ; to deepen cooperation in agriculture, health, 
disaster mitigation and water resources; to invite 10,000 representatives to visit China; to encourage 
and support extensive cooperation on public well -being projec ts among social organizations of 
participating countries; and  to continue the Chinese government scholarship Silk Road Programme 
and other important measures. From 2013 to 2018, China cancelled 98 due interest -free loan debts 
(totalled RMB 4.184 billion) o f the LDCs, heavily indebted poor countries, landlocked developing 
countries and small island developing countries.  
4.47.   At the Forum on China -Africa Cooperation (FOCAC) Beijing Summit held in September 2018, 
President Xi Jinping stated that China would launch eight major initiatives in the next three years 
and beyond. These initiatives focus on industrial promotion, infrastructure connectivity, trade 
facilitation, green development, capacity building, health care, cultural and people -to-people 
exchanges, and pe ace and security. At the Extraordinary China -Africa Summit on Solidarity Against 
COVID -19 held in June 2020, President Xi Jinping declared that China would continue fully supporting 
Africa 's response to COVID -19, and working with Africa to accelerate the f ollow-ups to the FOCAC WT/TPR/G/ 415 • China  
 
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  Beijing Summit. Priority would be given to cooperation on public health, work and production 
resumption, and people 's well -being, building an even stronger China -Africa community with a 
shared future.  
4.48.   China is one of the countries that provide maximal market access to the LDCs. It provides 
zero-tariff to products under 97% of all tariff lines exported to China from the LDCs that have 
established diplomatic relations with China. Up to now, China has provided the above -menti oned 
treatment to 42 LDCs that have exchanged diplomatic notes, boosting greatly the exports from the 
LDCs to China. Since 2008, China has been the major export market for the LDCs, importing about 
one fourth of their total exports.  
4.5.2   Contributing to the implementation of UN 2030 agenda for sustainable de velopment  
4.49.   China has made positive contributions to the implementation of the UN 2030 Agenda for 
Sustainable Development  through international development cooperation, especially the 
South -South cooperation. A  large number of cooperation projects, through China -UN Peace and 
Development Fund  and South -South Cooperation Assistance Fund , have been carried out to assist 
other developing members to implement the UN 2030 Agenda for Sustainable Development . China 
has helped other developing countries reduce poverty by providing assistance in the construction of 
rural public facilities, sharing experiences in the conservation of agriculture and forestry, and offering 
technology transfer. China helped other developing me mbers ensure food security by assisting 
agriculture development in light of local conditions. To improve medical and health care services, 
China has helped them improve local public health systems. In addition, China has also helped other 
developing member s promote education by building schools, training teachers, and providing 
scholarships. Moreover, China attaches great importance to helping promote women 's development 
and economic empowerment. To strengthen environmental protection and combat climate cha nge, 
China has helped other developing members by building public facilities and energy infrastructure 
and supporting wildlife protection.  
4.5.3   Supporting capacity -building for home -grown development of other developing 
countries  
4.50.   China adheres to the principles  of "teaching one how to fish rather than giving him fish " and 
"providing the means for home -grown development ". In carrying out international development 
cooperation, China has always taken into full consideration the resources, development level and 
needs of other developing countries and helped them build the capacity for home -grown 
development to achieve diversified, independent and sustainable development. China has sent 
39 senior consultants to assist other developing countries to make development pla ns. By holding 
seminars and academic degree programmes, China has shared its practices and experiences in 
national governance. China has also shared its scientific and technological outcomes with other 
developing countries through training programmes, incl uding those on space and satellite 
applications, 3D printing technology, metering technology, and marine biotechnology. Transnational 
technological transfer centre s were founded to promote transfer of advanced applicable technologies 
and their applications  through technology bridging, demonstration and training.  
5  DEEPENING REFORM ACROSS THE BOARD AND BUILDING A HIGH -STANDARD MARKET 
SYSTEM  
5.1.  China firmly commits itself to comprehensively deepening reform, fully leverages the decisive 
role of the market in alloc ating resources and gives better play to the role of government to ensure 
better alignment between an efficient market and a well -functioning government. China endeavo urs 
to generate new demand with innovation -driven development and high -quality supply. Ch ina 
promotes the domestic circulation, while facilitates the "dual circulation " of domestic and 
international circulations. Consumer spending is boosted across the board, and the potential for 
investment is unleashed. China promotes coordinated regional development and rural revitalization 
strategy. China is committed to energizing i nitiatives of all market entities, improving 
macroeconomic governance, modernizing fiscal, taxation, and financial systems, building a high -
standard market system, and accelerating the transformation of government functions.  WT/TPR/G/ 415 • China  
 
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  5.1  Generating New Demand Through I nnovation -Driven Development and High -Quality 
Supply  
5.1.1   Improving the quality and efficiency of the supply system and further unleashing 
consumption potential  
5.2.  China expands domestic demand as a strategic move. Together with the supply -side structural 
reform, China accelerates the establishment of a comprehensive system of domestic demand. Since 
the last review, China has issued the Several Opinions on Improving and Enhancing Consumption 
Systems and Mechanisms to Further Tap the Potential of Residential Consump tion and a three -year 
action plan, so as to support the development of new types of consumption generated by new forms 
and models of business and to promote the development of international consumption centre cities. 
The pilot projects of culture and touri sm consumption and information consumption are in progress. 
Services consumption with regard to the aged and child care  have been improved. E -commerce for 
rural areas is applied extensively. Meanwhile, the reform of the investment approval system allows 
capital to play a greater role. The revised Catalogue for Guiding Industry Restructuring and the 
guidelines on high -quality infrastructure development support private capital to move into major 
projects. The rapid development of a modern circulation system h as reduced systemic transaction 
costs in the circulation sector.  
5.1.2   Pursuing innovation -driven development, and optimizing and upgrading the 
industrial struct ure 
5.3.  China has continuously strengthened innovation as the core of the modernization drive. 
Innovation  platforms are established with a rapid pace. Enterprises as the main innovation driving 
force are encouraged to increase R&D input, while the government provides policy incentives that 
apply to all. New types of infrastructure, including 5G, data centres,  cloud computing, and the 
industrial Internet are making steady progress. The industrial sector is upgraded with digital and 
smart technologies. National -level pilot zones of digital economy for innovation -driven development 
are under construction. Actions  are taken to foster new forms of digital economy businesses. Since 
the last review, China has made efforts to promote business start -ups and innovation nationwide. 
The experiences of innovation and reform are replicated and applied nationwide. China has h eld the 
National Mass Entrepreneurship and Mass Innovation Week.  And Innovation and Entrepreneurship 
demo centres are under construction.  
5.1.3   Dissolving excess production capacity and improving the quality of supply  
5.4.  Since the last review, China has continued reducing capacity through market -oriented, law -
based, systematic and structural approaches. Further efforts have been made to consolidate the 
progress achieved. Resettlement of employees has been steadily carried out. In the iron and steel 
sector, China has continuously deepened the supply -side structural reform, implemented capacity 
replacement and improved the filing requirement of iron steel projects. In the coal sector, China has 
eliminated out -dated production  capacity, improved the quality of the supply system, and optimized 
the coal production capacity layout. Meanwhile, China has been addressing "zombie enterprises ". 
From 2018 to 2020, over 500 million tons of out -dated coal production capacity had been diss olved. 
From 2016 to 2018, China had reduced more than 150 million tons of crude steel production 
capacity, meeting the target of the 13th Five Year Plan two years ahead of schedule.  
5.1.4   Intensifying efforts to prevent and control pollution, and upholding the c oncept that 
clear waters and green mountains are as valuable as mountains of gold and silver 
5.5.  Bearing in mind the concept that "clear waters and green mountains are as valuable as 
mountains of gold and silver ", China has been strengthening ecological and en vironmental 
protection. Ecological and environmental quality has been improved substantially. China has made 
great efforts in keeping skies blue, waters clear, and lands pollution -free. The Three -year Action Plan 
for Blue Skies  was issued and implemented. Main initiatives include Comprehensive Response to Air 
Pollution in Key Areas in Autumn and Winter , and Ozone (O 3) Pollution Prevention and Control in 
Summer . As a result, statistics show that in cities at and above the prefectural level across the 
nation, the number of days with excellent or good air quality accounts for 87% of days in a year. 
China accelerates the establishment of a modern environmental gove rnance system, and ensures 
that the emission permit system covers all fixed pollution sources in the country. China actively WT/TPR/G/ 415 • China  
 
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  promotes a market -oriented and diversified mechanism for ecological compensation. It has launched 
pilot projects of energy -use righ ts trading, and made steady progress in building a national carbon 
emissions trading market. China has intensified its efforts in energy saving and emissions reduction. 
Energy consumption per unit of GDP and carbon dioxide emissions per unit of GDP have be en on the 
decline. The share of non -fossil fuels energy in the total energy consumption reached 15.9%.  
5.2  Promoting Coordinated Regional Development and Rural Revitalization  
5.2.1   Accelerating the implementation of major regional strategies and coordinated 
regional  development strategies, and improving the layout of development among regions  
5.6.  China pays greater attention to regional comparative advantages and promotes integrated 
urban -rural development. China moves forward the coordinated development of the 
Beijing -Tianjin -Hebei region, the high -standard and high -quality planning and construction of 
Xiongan New Area, the construction of the Guangdong -Hong Kong -Macao Greater Bay Area, and the 
integrated development of the Yangtze Economic Belt. China continues its driv e to promote large -
scale development in the western region, new breakthroughs in the revitalization of northeast China, 
high-quality development of the central region, and accelerated modernization of the eastern region. 
At the same time, China has been su pporting old revolutionary base areas and ethnic minority areas 
in speeding up development, and strengthening the development of border areas.  
5.2.2   Attaining a complete victory in the fight against poverty and making significant 
contribution to the global pover ty reduction  
5.7.  China has won a complete victory in the fight against poverty. By the end of 2020, 98.99 million 
rural residents living below the current poverty line had all been lifted out of poverty, and 
832 registered poor counties and 128,000 villages ha d been removed from the poverty list. China 
has eliminated regional poverty and completed the arduous task of eradicating extreme poverty. 
According to the World Bank 's poverty standard, the number of Chinese population lifted out of 
poverty accounted for more than 70% of that of the world 's total for the same period. China has 
met the target of eradicating poverty set by the UN 2030 Agenda for Sustainable Development  
10 years ahead of schedule, which highlights China 's contribution to the community with a shared 
future for mankind. Guided by the strategy of targeted poverty alleviation, China has taken 
development as the fundamental way of poverty alleviation, and changed its approach from "blood 
transfusion " to "blood regeneration ". 
5.2.3   Fully implementing the rural revitalization strategy and steadily modernizing 
agriculture and rural areas  
5.8.  Since the last review, China has further advanced the supply -side structural reform in 
agriculture. The irrigation and water conservation infrastructure has been continuousl y improved. 
Scientific and technological equipment support for agricultural development has been strengthened. 
The quality and the performance have been gradually improved. The development of processing and 
distribution of agricultural products has acceler ated, with industrial and value chains extended. The 
production, processing, and sales of agricultural products have been significantly integrated. The 
multiple functions of the agriculture sector have been further enhanced. Meanwhile, China commits 
itself to improving agricultural subsidy policies. Its agricultural subsidy system, as well as relevant 
incentive and disincentive mechanism, is green -oriented and aims at promoting rational utilization 
of agricultural resources and protection of ecological envi ronment. After the victory in the fight 
against poverty, the focus of "Agriculture, Rural Areas and Rural People " has been shifted to 
promoting comprehensive rural revitalization. In January 2021, the Opinions on Comprehensively 
Promoting Rural Revitalizat ion and Accelerating Agricultural and Rural Modernization  was issued to 
fully implement the rural revitalization strategy. China is committed to aligning efforts to consolidate 
and expand the achievements in poverty alleviation with efforts to promote rura l revitalization, 
accelerating agricultural modernization, and vigorously carrying out rural development initiatives. In 
February 2021, the National Administration for Rural Revitalization was formally established.  WT/TPR/G/ 415 • China  
 
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  5.3  Committed to Creating Market -Oriented, Law -Based and Internationalized Business 
Environment  
5.3.1   Further improving the top -level design of the business environment  
5.9.  Guided by the Implementation Outline for Building a Rule of Law Government (2015 -2020) , 
China has transformed governmen t functions, streamlined administration and delegated powers, 
and strictly followed administrative rules and regulations. In October 2019, the State Council issued 
the Regulation on Improving the Business Environment  to ensure that all market entities have  equal 
access to various production factors and support policy. It promulgated institutional regulations on 
shortening the time needed to start a business, ensuring equal access to the market, and promoting 
credit supervision. Inspection has been conducted  through the "random selection of both inspectors 
and inspections targets and the prompt release of inspection results ". In addition, China has also 
promoted the "Internet Plus Regulation ". 
5.3.2   Further stren gthening intellectual property rights protection  
5.10.   In November 2019, China issued the Opinions on Strengthening Intellectual Property Rights 
Protection , which clearly requires people to firmly establish the concept that protecting intellectual 
property rights (IPRs) is to protect innovation. China adheres to t he principles of strict protection, 
overall coordination, key breakthroughs and equal protection. IPR protection system has been 
continuously reformed and improved in a multi -pronged approach. This includes legal, 
administrative, economic, technological me ans and social governance, aiming to enhance the overall 
protection capabilities and level.  
5.11.   First, China steadily pushes forward the legislation on IPR protection. The Civil Code , officially 
implemented on 1 January 2021, provides an important institution al basis for strengthening 
IPR protection. The Copyright Law , amended in November 2020, improves the concepts and systems 
related to works and rights, and scales up the penalty on infringement. The Trademark Law , 
amended in April 2019, effectively regulate s bad -faith trademark registration and applications that 
are not for use, and strengthens the protection of the exclusive right to trademark use. The Patent 
Law, amended in October 2020, increases the compensation for infringing patents, improves the 
burde n of proof, and establishes the patent term compensation system, so as to further strengthen 
patent protection. In addition, the Anti -unfair Competition Law , amended in April 2019, introduces 
the punitive compensation system for infringement of trade secrets to further strengthen the 
protection of trade secrets.  
5.12.   Second, China continuously strengthens judicial protection of IPRs. Since the last review, 
great breakthroughs have been made in the intellectual property trial system and mechanism. On 
1 Janua ry 2019, the Intellectual Property Court of the Supreme People 's Court officially began to 
operate, hearing technology -related intellectual property appeal cases nationwide. The intellectual 
property trial system has been established. The Supreme People 's Court plays a leading role. The 
intellectual property courts in Beijing, Shanghai, Guangzhou and Hainan Free Trade Port serve as 
the models. The intellectual property courts of 22 local courts have been identified as key players, 
and the intellectual prope rty courts of senior and intermediate people 's courts and a number of 
primary -level courts are the supporting bases. In addition, the "three -in-one" reform of intellectual 
property trials is making solid progress, and the technical fact -finding mechanism c ontinues to be 
improved. In 2020, the number of new cases handled and concluded by people 's courts increased 
by 9.1% and 10.2% respectively compared with the data in 2019.  
5.13.   China ensures that the applicable standards of laws are uniform. The Supreme People 's Court 
issues judicial interpretation and case guidance. It is an important way for the Supreme People 's 
Court to provide guidance. The Supreme People 's Court issues judicial interpretations and judicial 
policies, such as the Provisions on Evidence in  Civil Litigation of Intellectual Property Rights  and the 
Opinions on Increasing Penalties of IPR Infringement Acts according to Law , which refines the 
standards of adjudication and unifies the severity of punishment. The Supreme People 's Court issues 
the Annu al Report on IPR Cases  and other documents as standards of adjudication with general 
guiding significance.  
5.14.   Third, China actively carries out law enforcement actions to protect IPRs. China organizes 
special law enforcement actions for IPR protection, focusi ng on key areas such as e -commerce, food WT/TPR/G/ 415 • China  
 
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  and drug, and software, as well as key places such as exhibitions and imports and exports. Since 
2018, six government departments have been jointly launching campaigns targeting counterfeit and 
shoddy food in rural areas. In 2019, China National Intellectual Property Administration issued the 
2019 Action Plan for Special Actions on IPR Protection  to guide local law enforcement. The State 
Administration for Market Regulation and China National Intellectual Property Ad ministration jointly 
issued the Iron Fist Action Plan for Intellectual Property Enforcement 2019 , which cracked down hard 
on violations of trademarks, patents and geographical indications, and investigated and dealt with 
more than 70,000 illegal cases.  
5.15.   Fourth, China continuously improves the transparency of IPR protection. The Office of the 
National Leading Group on the Fight against IPR Infringement and Counterfeits organizes the 
drafting and publication of the Report on Latest Development in IPR Protectio n and Business 
Environment in China (both in Chinese and English) annually. Press conferences are held to brief the 
Report. The full texts are available on the website of the Campaign Against IPR Infringements and 
Counterfeits and the official website of S tate Administration for Market Regulation for reading and 
download.  
5.3.3   Implementing the Negative List for Market Access system across the board  
5.16.   In December 2018, based on the experience from pilot projects, China revised and improved 
the pilot list, and issue d the Negative List for Market Access (2018)  to comprehensively implement 
the negative list for market access nationwide. Since then, the list has been revised annually. The 
contents of the list have been continuously improved. Market access has been further liberalized and 
regulated. The Negative L ist for Market Access (2019)  and the Negative List for Market Access (2020)  
were issued in November 2019 and December 2020 respectively. In 2020, the listed items were cut 
from 131 to 123, and greater market access has been provided.  
5.3.4   Improving the property  rights system and promoting the market -based allocation 
of production fact ors 
5.17.   China is committed to improving the property rights system and market -based allocation of 
production factors. In November 2016, China issued opinions on improving the property r ights 
system and protecting property rights in accordance with the law, strengthening the equal protection 
of economic property rights of all forms of ownership in accordance with the law, so that people shall 
have peace of mind when they possess property.  With fairness as the core principle of the property 
rights protection system, the Civil Code  establishes complete rules for the real rights protection and 
relief. It clearly stipulates that the real rights of the State, the collectives, individuals, and o ther 
right holders shall be equally protected by law, and shall not be infringed upon by any organization 
or individual. In March 2020,  the Opinions on Improving the Systems and Mechanisms for Market -
based Allocation of Factors of Production  was issued, fo r the purpose of establishing modern factor 
markets, especially new factor markets. This document calls for promoting market -oriented 
allocation of land and capital factors, accelerating the development of technology factor markets and 
data factor markets,  carrying out market -oriented reform of factor prices, and guiding the rational 
and orderly flow of labour factors.  
5.3.5   Improving the performance of state-owned assets and state-owned enterprises 
(SOEs) reforms  
5.18.   China is committed to pushing forward the reform of State -owned Enterprises. Since the last 
review, the SOE reform has been extensive and intensive, making significant achievements. The 
reform to convert SOEs into standard companies has basically been completed and the corporate 
legal person governance s tructure has been further improved. China has reorganized and set up 
state-owned capital investment and operation companies to effectively promote the reform of the 
authorized management system of state -owned capital, and further improve the supervision sy stem 
of state -owned assets. China promotes the market -oriented reform of the competitive links in such 
industries as energy, railway, telecommunications and public utilities. China steadily advances the 
reform of mixed ownership, promotes the mixed ownersh ip reform of enterprises in fully competitive 
industries and fields, and steadily explores the mixed ownership reform in key sectors such as 
electricity, oil, natural gas, railways, civil aviation, telecommunications and military industry. In 
2020, China o fficially launched three -year action plan of SOE reform, starting a new boom in 
SOE reform. As of January 2021, the total number of central enterprises directly supervised by WT/TPR/G/ 415 • China  
 
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  State -owned Assets Supervision and Administration Commission of the State Council  was 97, among 
which more than 70% were mixed ownership enterprises. Listed companies have become the major 
player in the mixed ownership reform of central SOEs. The total assets and the profits of listed 
companies controlled by central SOEs accounted for 67% and 88% respectively of the total amount 
of central SOEs.  
5.3.6   Fostering an enabling environment for the development of small and medium -sized 
enterprises and private businesses  
5.19.   Since the last review, China has further promoted the development of small and medium -sized 
enterprises and private businesses. Market entities other than power grid enterprises are allowed to 
set up electric power sales enterprises to engage in competitive electric power sales business. 
Restrictions on private enterprises invest ing in nuclear power construction have been gradually 
relaxed. Meanwhile, qualified private enterprises are allowed to import crude oil through non -state 
trading. Restrictions on oil and gas exploration and exploitation have been removed. Private 
enterpris es may engage in mobile communication resale business under guidance. In addition, the 
long-term work mechanism is further improved, so that commercial banks are confident, willing, 
and able to lend to private enterprises. Efforts have been made to simplif y procedures of MSMEs ' 
deregistration.  
5.20.   From 1 January 2019 to 31 December 2020, as for the annual taxable income of small and 
low-profit enterprises that is not more than RMB 1 million, 25% of which shall be calculated as 
taxable income, and the applicable  enterprise income tax rate shall be 20%; and as for the annual 
taxable income of small and low -profit enterprises that is more than RMB 1 million but not more 
than RMB 3 million, 50% of which shall be calculated as taxable income, and the applicable enter prise 
income tax rate shall be 20%. From 1 January 2019 to 31 December 2021, small -scale VAT 
taxpayers with monthly sales of less than RMB 100,000 shall be exempted from VAT. In order to 
further support small and micro enterprises, from 1 January 2021 to 3 1 December 2022, as for the 
annual taxable income of small low -profit enterprises that is not more than RMB 1 million, the 
enterprise income tax shall be halved while still eligible for current preferential treatment. From 
1 April 2021 to 31 December 2022,  small -scale VAT taxpayers with monthly sales of less than 
RMB 150,000 shall be exempted from VAT.  
5.3.7   Improving the system for fair competition  
5.21.   In June 2016, the State Council issued  the Opinions on Establishing the Fair Competition 
Review System in the Devel opment of the Market System . It maintains order for fair competition 
and ensures that various market entities utilize production factors on an equal footing, participate 
in market competition fairly and are equally protected by law, so as to stimulate mark et vitality. The 
fair competition review system has been implemented by governments at national, provincial, city 
and county levels. By April 2019, China had basically established the fair competition review system 
nationwide. In March 2021, the State Coun cil issued the Action Plan for Building a High -standard 
Market System , which requires comprehensive improvement of the fair competition system, 
including strengthening the binding force of the fair competition review system, intensifying and 
improving anti -monopoly and anti -unfair competition law enforcement, and eliminating regional 
segmentation and local protection.  
5.22.   Since 2018, China 's anti -monopoly law enforcement agencies have continuously improved the 
anti-monopoly legal system, amended the Anti -monopo ly Law , and promulgated and implemented 
departmental rules such as  the Interim Provisions on Prohibiting Monopoly Agreements  and the 
Interim Provisions on Prohibiting Abuse of Dominant Market Position s to strengthen anti -monopoly 
law enforcement. From 2018  to 2020, the anti -monopoly authorities investigated and concluded 
243 cases of market monopoly, 49 cases of illegal implementation of concentration of business 
operators, 171 cases of administrative power abuse to exclude and restrict competition, and 
1,406 cases of concentration of business operators. These efforts have effectively ensured fair 
competition in the market and safeguarded consumers ' rights and interests.  
5.3.8   Deepening  reforms in fiscal, taxation, financial and other key are as 
5.23.   Since the last review, China has further deepened reforms in fiscal, taxation, financial and 
other key areas. China has implemented the reform to define the respective fiscal powers and WT/TPR/G/ 415 • China  
 
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  expenditure responsibilities of central and local governments in field s such as ecological 
environment, public culture, natural resources and emergency rescue, and improved the local tax 
system. The Catalogue of Pricing by the Central Government  was revised, cutting pricing items by 
nearly 30%. Continued efforts have been ma de to deepen pricing reforms in key areas such as 
electricity, oil and gas, public utilities and agricultural products.  
5.24.   In August 2019, the People 's Bank of China decided to reform and improve the loan prime 
rate (LPR) mechanism, and deepened reforms to st rengthen the market 's role in setting interest 
rates. The amendment to the Securities Law , which came into effect on 1 March 2020, implements 
a public offering system based on the registration system to replace the current securities issuance 
approval syst em. In addition , China has steadily facilitated cross -border investment and financing, 
and introduced a series of reform measures, such as lifting the restrictions on the upfront costs of 
FDI, deepening the reform of capital account settlement and payment facilitation, and delegating 
pilot banks to register foreign debt cancellation.  
5.25.   In November 2020, China combined the qualifications rules and institutional rules of Qualified 
Foreign Institutional Investors (QFIIs) and RMB Qualified Foreign Institutional Investors (RQFIIs). 
First, access conditions were relaxed. Application paperwork was simplified and the review and 
approval period shortened. Simplified administrative licensing procedures were implemented. 
Second, China expanded the scope of investment in  a steady and orderly manner. QFIIs and RQFIIs 
could invest in National Equities Exchange and Quotations listed securities, private equity funds and 
financial derivatives that meet the requirements.  
5.26.   Due to a series of measures taken by the Chinese governme nt, China 's business environment 
has been further improved. According to the Doing Business 2019  released by the World Bank, China 
implemented a record number of reform measures to improve the business environment for SMEs 
in the previous year, and its glo bal ranking jumped from 85th to 46th. According to the Doing Business 
2020, due to vigorous implementation of the reform agenda, China ranks among the top 
ten economies with the greatest improvement in the global business environment for 
two consecutive ye ars. China 's global ranking advanced further from 46th to 31st in 2020. China is 
the most improved economy in terms of global business environment.  
6  THE WAY FORWARD  
6.1.  Currently, the global industrial chains and supply chains are hampered, trade and investment 
activities remain sluggish, and the momentum of global economic recovery is rather unstable . Facing 
the harsh and complicated international situation and the arduous tasks of  domestic reform, 
development, and stability, especially under the severe impact of COVID -19, China will uphold its 
belief in openness, cooperation, and unity for achieving win -win outcome , stay committed to 
expanding all -round opening up and exploring mor e efficient ways to connect domestic and foreign 
markets, and share production factors and resources. The aim is to turn the market of China into a 
market for the world, a market shared by all, and a market accessible by all and  bring more positive 
energy to the international  community. China is committed to promoting mutual opening up 
featuring shared benefits, shared responsibilities, and shared governance  and building an open world 
economy.  
6.2.  China will pursue high -quality development through higher -standa rd opening -up. First, it will 
promote the innovative development of foreign trade. China is the most promising major market in 
the world, and a major  trading partner of more than 120 countries and regions. Its accumulative 
value  of goods imports of the nex t ten years is expected to exceed USD 22 trillion. Providing  open 
platforms including the CIIE, it will support foreign companies in exploring  business opportunities in 
China, and accelerate the development of new business forms and models such as cross -border 
e-commerce. China will also shorten the Catalogue of Technologies Prohibited or Restricted from 
Import  so as to create a sound environment for the free cross -border flow of technological factors. 
Second, China will continue improving its business envi ronment by promoting the institutional 
opening -up of rules, regulations, administration and standards. The negative list for foreign 
investment access will be further shortened to treat all enterprises registered in China on an equal 
footing. China will co ntinue strengthening intellectual property protection, and safeguarding the 
legitimate rights and interests of foreign investors. Third, China will build a new highland for opening 
up by using  the pilot free trade zones and free trade ports  as leading exam ples. The Negative List 
for Cross -border Trade in Services  will be introduced, and reform and innovation in trade and 
investment liberalization and facilitation will be deepened.  WT/TPR/G/ 415 • China  
 
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  6.3.  China will uphold and practice multilateralism, and join efforts  with other m embers to tackle 
global challenges and build a community with a shared future for mankind. China will continue 
sharing its useful experience in pandemic  prevention and control with other countries, and try its 
best to assist countries and regions with diff iculties to fight against the pandemic. China will actively 
participate in the WTO reform, improve global governance, and promote high -quality Belt and Road 
cooperation . China will further implement the United Nations Framework Convention on Climate 
Change and the Paris Agreement  to address climate change . Moreover,  China will strive to peak 
carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060  to promote sustainable 
development. As a developing member, China will continue deepen ing South -South cooperation and 
contribut ing to poverty eradication, debt relief, and economic growth of developing members.  
6.4.  There is only one Earth and one shared future for humanity. China stands ready  to join hands  
with other  members and march on together, letting the torch of multilateralism light up the way 
forward to a community with a shared future for mankind.  
 
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