RESTRICTED WORLD TRADE ORGANIZATION
ORGANISATION MONDIALE DU COMMERCE
ORGANIZACIÓN MUNDIAL DEL COMERCIOWT/ACC/CHN/20
16 June 2000
(00-2433)
Working Party on the
Accession of ChinaOriginal:  English/
anglais/
inglés
COMMUNICATION FROM CHINA
In preparation for the Working Party Meeting to be held on 19-23 June 2000, the Chinese
Delegation has submitted the following documentation1.
Groupe de travail del'accession de la Chine
COMMUNICATION DE LA CHINE
En vue de la réunion du Groupe de travail qui aura lieu du 19 au 23 juin 2000, la délégation
chinoise a communiqué la documentation ci-après.
1
Grupo de Trabajo sobre
la Adhesión de China
COMUNICACIÓN DE CHINA
Para preparar la reunión del Grupo de Trabajo que se celebrará del 19 al 23 de junio de 2000,
la delegación de China ha presentado la siguiente documentación.1
                                                     
1 In English only./En anglais seulement./En inglés solamente.WT/ACC/CHN/20
Page 2
Amendment of Legislation with WTO Agreements (Draft) 12 June 2000
Information of State-Trading (Draft) 12 June 2000
Checklist of Illustrative TBT Issues for Consideration in
Accessions 12 June 2000
Notification Pursuant to Article 5 of the Agreement on
Trade-Related Investment Measures 12 June 2000
Implementation of the Agreement on Trade-Related Aspects
of Intellectual Property Rights 12 June 2000WT/ACC/CHN/20
Page 3
AMENDMENT OF LEGISLATION WITH WTO AGREEMENTS (Draft)
The People's Republic of China
June 12, 2000
Laws and Administrative
RegulationsRelevance of the Laws or Regulations
to WTO ComplianceDate of Implementation
1. Law of the People's Republic of
China on Chinese-foreign Equity Joint
VenturesTo be in compliance with Agreement on
Trade-Related Investment Measures
(TRIMs)Date of accession
2. Regulations for the Implementation
of the Law of the People's Republic of
China on Chinese-foreign Equity Joint
VenturesTo be in compliance with TRIMs Date of accession
3. Law of the People's Republic of
China on Chinese-foreign ContractualJoint VenturesTo be in compliance with TRIMs Date of accession
4. Law of the People's Republic of
China on Foreign Capital Enterprises To be in compliance with TRIMs Date of accession
5. Rules for the Implementation of the
Law of the People's Republic of China
on Foreign Capital EnterprisesTo be in compliance with TRIMs Date of accession
6. Regulations of the People's Republic
of China on the Exploitation of
Offshore Petroleum Resources in
Cooperation with Foreign EnterprisesTo be in compliance with TRIMs At the expiry of the
commitment period
7. Regulations of the People's Republicof China Concerning the Exploitationof On-shore Petroleum Resources in
Cooperation with Foreign EnterprisesTo be in compliance with TRIMs At the expiry of the
commitment period
8. Interim Provisions on GuidingForeign Investment DirectionTo be in compliance with TRIMs At the expiry of the
commitment period
9. Foreign Trade Law of the People'sRepublic of ChinaTo be in compliance with General
Agreement on Tariffs and Trade 1994At the expiry of the
commitment period
10. Regulations of the People'sRepublic of China on Anti-dumping
and Anti-subsidyTo be in compliance with Agreement on
Implementation of Article VI of the
General Agreement on Tariffs and Trade
1994Date of accession
11. Interim Measures for Import
Administration of Machinery andElectronics ProductsTo be in compliance with General
Agreement on Tariffs and Trade 1994At the expiry of the
commitment periodWT/ACC/CHN/20
Page 4
12. Customs Law of the People's
Republic of ChinaTo be in compliance with Agreement on
Implementation of Article VII of the
General Agreement on Tariffs and Trade
1994, Agreement on Rules of OriginDate of accession
13. Regulations of the People's
Republic of China on Import and
Export DutiesTo be in compliance with Agreement on
Implementation of Article VII of the
General Agreement on Tariffs and Trade1994At the expiry of the
commitment period
14. Rules of the People's Republic ofChina on the Origin of Export
CommoditiesTo be in compliance with Agreement on
Rules of OriginAt the expiry of the
commitment period
15. Regulations of the People's
Republic of China on Administrationof Financial Institutions with Foreign
CapitalTo be in compliance with General
Agreement on Trade in ServicesAt the expiry of the
commitment period
16. Regulations on the Administrationof Travel AgenciesTo be in compliance with General
Agreement on Trade in ServicesAt the expiry of the
commitment period
17. Law of the People's Republic ofChina on Import and ExportCommodity InspectionTo be in compliance with General
Agreement on Trade in Services,Agreement on Technical Barriers to TradeAt the expiry of the
commitment period
18. Patent Law of the People’s
Republic of ChinaTo be in compliance with Agreement on
Trade-Related Aspects of Intellectual
Property RightsDate of accessionWT/ACC/CHN/20
Page 5
INFORMATION OF STATE-TRADING
(Draft)
June 12, 2000
    China maintains enterprises covered by th e provisions of Article XVII. The  products listed
in the Annex 2a-1 and Annex 2a-2  in its Protocol are subject to state trading which is carried
out by the following corporations.
I. CHINA NATIONAL CHEMICAL IMPORT AND EXPORT CORPORATION
(SINOCHEM)
1. Reason and Purpose
In order to ensure the stable supply of  chemical fertilizer necessary for domestic
agricultural production and crude  oil and processed oil needed in the domestic market, the
Ministry of Foreign Trade and Economic C ooperation (MOFTEC) authorized SINOCHEM to
have the exclusive right of import and export of chemical fertilizer and the import and exportright of certain amount of crude oil and processed oil.
2. Description and Function
    When there is a shortage of supply in resp ect of chemical fertilizer , crude oil and processed
oil resulting in the increase of the domestic prices in question, SINOCHEM will import these
products. The domestic selling prices of these products are determined by such factors as
import price and operational cost of the corporation.
In light of the demand and supply of crude oil and processed oil in the world market,
SINOCHEM will export these products. The expor t price is mainly composed of product
price and operational cost of the corporation, which is approximately the same as the world
market price.WT/ACC/CHN/20
Page 6
3. Statistical information
    Unit: million tons
A. IMPORT1997 1998 1999
Crude oil 1.88 3.97 1.97
Process oil 0.13 0.18 0.038
Chemical fertilizer 1.66 3.21 0.15
B. EXPORT1997 1998 1999
Crude oil 4.33 3.49 2.29
Process oil 0.46 0.20 0.12
II. CHINA NATIONAL CEREALS, OILS AND FOODSTUFF IMPORT & EXPORT
CORPORATION (COFCO)
1. Reason and Purpose
Since the steady supply of grain, including  wheat, corn and soybean, and sugar and
edible oil is directly linked to the liveli hood of the 1.2 billion population of China,  MOFTEC
authorized COFCO to have the import right of wheat, sugar and vegetable oil and the export
right of corn and soybeans.
2. Description and function
When there is a shortage of supply in respec t of wheat, sugar and vegetable oil resulting
in the increase of the domestic prices in question, COFCO will import these products from
the world market. The domestic selling prices of these products are determined by suchfactors as import price and opera tional cost of the corporation.
COFCO will export corn and wheat at price similar to that of the world market, which is
determined by such factors as cultivation cost of corn and soybean and operational cost of thecorporation.WT/ACC/CHN/20
Page 7
3. Statistical information
    Unit: million tons
Import 1997 1998 1999
Wheat 0.59 0.89 0.25
Sugar 0.11 0.092 0.0998
Vegetable oil 0.19 0.28 0.299
Export 1997 1998 1999
Corn 3.63 2.58 2.37
Soybeans 0.10 0.08 0.10WT/ACC/CHN/20
Page 8
III. CHINA NATIONAL TEXTILES IMPORT & EXPORT CORPORATION
(CHINATEX)
1. Reason and Purpose
Since the steady supply of cotton is directly related to the livelihood of the 1.2 billion
population of China, MOFTEC authorized Chin atex to have the import and export right of
cotton in light of the demand and suppl y of cotton in the domestic market.
2. Description and function
When there is a shortage of supply in respect of cotton resulting in the increase of the
domestic price, Chinatex will import cotton from abroad. The domestic selling price ismainly determined by such factors as import price and operational cost of the corporation.
The export price of Chinatex with regard to cotton is determined by such factors as
cultivation cost and operational cost of the corporation.
3. Statistical information
Import 1997 1998 1999
Cotton 947 tons 0 0
Export 1997 1998 1999
Cotton 413 tons 45,000 tons 238,000 tons
Raw cotton fabric 88,000 m282,000 m2104,000 m2WT/ACC/CHN/20
Page 9
IV. CHINA NATIONAL TOBACCO IMPORT & EXPORT CORPORATION (CTC)
1. Reason and Purpose
In order to alleviate the adverse effect of tobacco and its products on the public health of
the Chinese people, the State Administration on Tobacco Monopoly authorized the CTC to bethe sole importer of tobacco and its products in accordance with the Law of the People's
Republic of China on Tobacco Monopoly .
2. Description and Function
The domestic selling prices of tobacco and its  products are determined by import price,
import tariff and operational price of the corporation.
3. Statistical information
4. 
Import 1997 1998 1999
Tobacco 12000 tons 4000 tons 7000 tonsWT/ACC/CHN/20
Page 10
V. CHINA NATIONAL METALS AND MINERALS IMPORT & EXPORT
CORPORATION (MINMETAL)
1. Reason and Purpose
    In order to ensure the reasonable and orderly exploitation of mineral resources and to
preserve environment, MOFTEC authorized Mi nmetal to have the export right of tungsten
ores, ammonium paratungstate , tungsten products, antimony products and antimony oxides.
 2. Description and Function
    The export prices of these products are determined by exploitation cost, export duty and
operational cost of the corpora tion and will be adjusted in response to the fluctuations of
world market prices.
3. Statistical information
Unit: tons
Export 1997 1998 1999
tungsten ores 413 105 44
ammonium
paratungstate8000 7000 6000
tungsten products 5000 7000 8000
antimony products 18,000 12,000 25,000
antimony oxides. 16,000 15,000 20,000WT/ACC/CHN/20
Page 11
VI. CHINA NATIONAL SILK IMPORT & EXPORT CORPORATION
   1. Reason and Purpose
   Since the primary raw materials of silk a nd greig are provided by farmers in remote regions
of China and in order to assist the farmers in these regions to alleviate property, MOFTEC
authorized China National Silk Import & Export Corporation to have the export right of silkand greig.
   2. Description and Function
   The export prices of these products are ma inly determined by cost of raw materials,
processing cost and operti onal cost of the cooperation.
   3. Statistical information
Export 1997 1998 1999
Greig 13,000 meters 45,000 meters 238,000 meters
Silk 22,000 tons 18,000 tons 24,000 tonsWT/ACC/CHN/20
Page 12
VII. CHINA NATIONAL NON-FERROUS IMPORT & EXPORT CORPORATION
    1. Reason and Purpose
In order to ensure the reasonable and orde rly exploration of mineral resources and to
preserve environment, MOFTEC authorized  China National Non-ferrous Import & Export
Corporation to have the export right of tung sten ores, ammonium paratungstate, tungsten
products, antimony products and antimony oxides.
    2. Description and Function
    The export prices of these products are determined by exploitation cost, export uty and
operational cost of the cooperati on and will be adjusted in response to the fluctuations of
world market prices.
    3. Statistical information
   Unit: tons
A. EXPORT1997 1998 1999
tungsten ores 388 86 36
ammonium
paratungstate7000 6000 5000
tungsten products 4000 6000 6000
antimony products 14,000 10,000 20,000
antimony oxides. 13,000 13,000 17,000WT/ACC/CHN/20
Page 13
VIII.  CHINA NATIONAL UNITED OIL CORPORATION
    1. Reason and Purpose
In order to ensure the steady supply of energy products, including crude oil and
processed oil, MOFTEC authorized China National United Oil Coope ration to have the
import and export right of cr ude oil and processed oil.
2. Description and Function
When there is a shortage of supply in resp ect of crude oil and pr ocessed oil resulting in
the increase of the domestic price, China National United Oil Corporation will import theseproducts. The domestic selling price of these pr oducts are determined by such factors as
import price and operational cost of the corporation.
In light of the demand and supply of crude oil and processed oil in the world market,
China International United Oil Corporation will export these pr oducts. The export prices are
mainly composed of product price and operati onal cost, which is appr oximately the same as
the world market price.
    3. Statistical information
     Unit: million tons
Import 1997 1998 1999
Crude oil 0.23 0.47 1.69
Process oil 0.24 0.19 0.10
A. EXPORT1997 1998 1999
Crude oil 9.75 7.84 5.13
Process oil 1.03 0.44 0.27WT/ACC/CHN/20
Page 14
IX. CHINA INTERNATIONAL UNITED PETROLEUM & CHEMICALS
CORPORATION
    1. Reason and Purpose
In order to ensure the steady supply of energy products, including crude oil and
processed oil, MOFTEC authorized China International United Petroleum & ChemicalsCorporation to have the im port and export right of cr ude oil and processed oil.
2. Description and Function
When there is a shortage of supply in resp ect of crude oil and pr ocessed oil resulting in
the increase of the domestic price, China International United Petroleum & ChemicalsCorporation will import these products. The domestic selling price of these products are
determined by such factors as import pri ce and operational cost of the corporation.
In light of the demand and supply of crude oil and processed oil in the world market,
China International United Petroleum & Che micals Corporation will export these products.
The export price is mainly composed of the price of these products and operational cost,
which is approximately the same as the world market price.
    3. Statistical information
    Unit: million tons
A. IMPORT1997 1998 1999
Crude oil 14.61 10.51 18.77
Process oil 1.53 0.34 0.14
Export 1997 1998 1999
Crude oil 7.58 6.10 3.40
Process oil 0.8 0.34 0.21WT/ACC/CHN/20
Page 15
X. CHINA LIANGFENG CEREALS IMPORT AND EXPORT CORPORATION
 1. Reason and Purpose
    Since the steady supply of vegetable oil is directly related to the livelihood of the 1.2
billion population of China, MOFTEC authorized China Liangfeng Cereals Import andExport Corporation to have the im port right of vegetable oil and the export right  of corn and
soybeans.
    2. Description and function
When there is a shortage of supply in respec t of vegetable oil resulting in the increase of
the domestic price, China Liangfeng Cereals Import and Export Corporation will import theseproducts from world market. The domestic selling prices of these products are determined by
such factors as import price and ope rational cost of the corporation.
China Liangfeng Cereals Import and Export Corporation will export corn and wheat at
prices similar to the world market prices, which are determined by such factors as cultivationcost of corn and soybean as well as the operational cost of the corporation.
    3. Statistical information
  unit: million tons
Import 1997 1998 1999
Vegetable oil 0.14 0.31 0.73
Export 1997 1998 1999
Corn 2.97 2.11 1.94
soybeans 0.8 0.7 0.8WT/ACC/CHN/20
Page 16
XI. CHINA NATIONAL COAL INDUSTRY IMPORT & EXPORT CORPORATION
    1. Reasons and Purpose
In order to ensure reasonable and orderl y exploitation of mineral resources and to
preserve environment, MOFTEC authorized China National Coal Industry Import & Export
Corporation to have the export right of coal.
    2. Description and Function
The export price of coal is determined by  exploitation cost, export duty and operational
cost of the corporation and will be adjusted in  response to the fluctuations of world market
prices.
    3. Statistical information
Unit: milions tons
Export 1997 1998 1999
Coal 264.3 280 374.1WT/ACC/CHN/20
Page 17
XII. CHINA NATIONAL NATIVE PRODUCTS AND ANIMAL BY-PRODUCT IMPORT
& EXPORT CORPORATION
    1. Reason and Purpose
    Since the steady supply of vegetable oil is directly related to the livelihood of the 1.2
billion population of China, MOFTEC author ized China National Native Products and
Animal By-product Import & Expor t Corporation to have the im port right of vegetable oil.
Since the primary raw materials of tea are provided by farmers in remote regions of
China and in order to assist the farmers in  these regions to alleviate property, MOFTEC
authorized China National Native Products  and Animal By-product Import & Export
Corporation to have the export right of tea.
    2. Description and Function
When there is a shortage of supply in respec t of vegetable oil resulting in the increase of
the domestic price, China National Native Pr oducts and Animal By-product Import & Export
Corporation will import such product from the world market. The domestic selling price is
determined by such factors as import pri ce and operational cost of the corporation.
The export price of tea is determined by the cost of raw materials, processing cost and
opertional cost of the corporation.
    3. Statistical information
  unit: tons
Import 1997 1998 1999
Vegetable oil 15,000 48,000 196,000
Export 1997 1998 1999
Tea 12,000 15,000 17,000WT/ACC/CHN/20
Page 18
CHECKLIST OF ILLUSTRATIVE TBT ISSUES FOR CONSIDERATION IN ACCESSIONS
The People's Republic of China
June 12, 2000
Commitments (by the time of accession) Compliance by China
1. Standstill: the introduction of new
standards, technical regulations and
conformity assessment procedures should be
fully compatible with the TBT Agreement.The Chinese Government has made commitments on
many occasions that once China gets its WTO
membership, it shall observe relevant principles of WTO
agreements including principles of TBT Agreement.
Currently, TBT agreement in China are related to three
laws, namely, the Law of the People’s Republic of China
on Import and Export Commodity Inspection, Food
Hygiene Law of the People’s Republic of China, andMethods for Working out Regulations of State
Administration for Entry-Exit Inspection and Quarantine
which was promulgated in 1999. These laws made
stipulations on the development and implementation of
inspection standards and technical regulations for importand export commodities as well as corresponding
implementing procedures, which are basically in
compliance with the principles of TBT Agreement. The
Chinese Government is deliberating laws, rules and
regulations related to the contents of TBT Agreement inaccordance with the principles of TBT Agreement in order
to make sure that newly-developed standards, technical
regulations and conformity assessment procedures are in
compliance with the principles of TBT Agreement.
2. Submission of Statement on
ImplementationOnce China gets its WTO membership, Ministry of
Foreign Trade and Economic Cooperation  (MOFTEC) orState Administration for Entry-Exit Inspection and
Quarantine of the People’s Republic of China (CIQ SA)
shall inform WTO/TBT Committee measures taken to
assure the implementation and administration of TBT
Agreement. China is now getting ready to fulfil theobligation of notification.
3. Establishment and operation of a single
Contact Point for Information("inquiry
point")China has informed WTO secretariat that China has set up
TBT Inquiry Points. This has been filed with TBT
Committee.
4. Identification of authority responsible for
notifications, publications and other internal
procedures to ensure transparency obligationsare met on an ongoing basis:WT/ACC/CHN/20
Page 19
Commitments (by the time of accession) Compliance by China
  (a)identification of publication where
notices of proposed technical regulations and
conformity assessment procedures will
appear;Article 23 and Article 41 of Law of Legislation of the
People’s Republic of China (hereinafter referred as
Legislation Law) stipulate that laws passed by the
National People’s Congress and its Standing Committee
are signed by the President and promulgated as Order of
President. Article 62 of the Legislation Law stipulates thatthe administrative regulations published on the Bulletin of
the State Council are authoritative texts. Article 77 of the
Legislation Law stipulates that regulations published on
the Bulletin of the State Council and on the Gazettes of
government agencies are authoritative texts. Article 28 ofMethods for Working out Regulations of State
Administration for Entry-Exit Inspection and Quarantine
stipulates that regulations worked out by  CIQ shall be
sent to the Gazette of MOFTEC or China Inspection and
Quarantine or other news agencies for promulgation. Allthese publications on technical regulations and conformity
assessment procedures concerned are also available from
China’s TBT Inquiry Points.
  (b)identification of authority responsible for
making notifications to the WTO.MOFTEC and CIQ SA
  (c)guidance/law to ensure regulatory
authorities afford non-discriminatoryconsideration of comments in the preparation
of a final regulation;China’s regulatory authorities involved in working out the
final versions of relevant TBT laws and regulations shalltake non-discriminatory considerations of public
comments. Article 34 and Article 35 of Legislation Law
stipulate that the operational arm of National people’s
Congress shall distribute the drafts of the legal document
under deliberation to government agencies andorganizations concerned as well as experts for comments.
Drafts of legal documents of special importance shall be
made public for extensive comments. Article 4, Article5,
Article6 and Article 7 of Law of the People’s Republic of
China on Foreign Trade have provisions about non-
discrimination, national treatment and Most-Favored
Nation status. Article 9 of Provisional Rules ofImplementation for Procedures of Administrative
Regulations promulgated by the State Council also has
similar content.
  (d)guidance/law to ensure regulatory
authorities allow a reasonable period of time
between the final publication of a technicalregulation and conformity assessment
procedure and its entry into force so that
suppliers can adapt;For all the technical regulations and conformity
assessment procedures current in effect in China, there has
been a reasonable period of time between their finalpublication and entry into force so that the suppliers could
adapt.WT/ACC/CHN/20
Page 20
Commitments (by the time of accession) Compliance by China
  (e)publication and notification of work
program for standards and non-governmental
conformity assessment procedures, including
publication of notices of draft standards and
an opportunity for public comment.(a) Before standards and conformity
assessment procedures as well as their
corresponding work programs for import
and export commodity inspection are
promulgated, public comments are widelysolicited.
5. Development and Application of Technical
Regulations and Conformity Assessment
Procedures: Existence of legal and/or
administrative underpinnings(or reasonable
measures” as appropriate) to ensure ongoing
compliance with provisions of the agreement
concerning, in particular:Article 56 of the Legislation Law stipulates that the State
Council shall work out administrative regulations
according to the Constitution and other laws. Article 71 of
the Legislation Law stipulates that ministries and
commissions shall work out regulations within their
respective authorities based on the laws and the
administrative regulations, decisions and orders of theState Council.
  (a)non-discrimination with respect to thetreatment of products;China applies same technical regulations and conformity
assessment procedures to import products from all
countries as for domestic products.
  (b)the prohibition of unnecessary obstacles
to international trade and the consideration of
less trade-restrictive alternatives to fulfilling
legitimate objectives;According to the principles of WTO/TBT agreement, only
to those entry-exit products concerning national security,
human life and health, life and health of animals and
plants, and environment protection as well as fraudulentpractices are subject to the reasonable and necessary
statutory inspection and quarantine measures of China.
  (c)the ongoing review of technical
regulations to ensure they are appropriate to
achieve the desired legitimate objective;Chinese departments competent for developing technical
regulations review the existing regulations on a regular
basis so as to ensure their conformity with the expected
legislative objectives. Article 74 of Legislation Law hasexplicit provisions concerning the procedures for the
ministries and commissions to work out their respective
regulations, that is, by drawing references from
procedures for working out the administrative regulations
by State Council.
  (d)the consideration of appropriateinternational standards, guides and
recommendations as a basis for technical
regulations and conformity assessment
procedures;For many years, China has been following the principle
that the international standards, guidelines and
recommendations serve as basis for national technical
regulations and conformity assessment procedures.
  (e)the consideration of equivalent technicalregulations of other Members;China considers equivalent technical regulations of other
Members.WT/ACC/CHN/20
Page 21
Commitments (by the time of accession) Compliance by China
  (f)the acceptance of the results of
conformity assessment procedures conductedby bodies in an exporting Member country;China shall accept the conformity assessment results by
the competent bodies of the exporting parties, so long assuch bodies and their conformity assessment procedures
are recognized by competent Chinese authorities.
  (g)non-discriminatory and cost-based feestructure.China applies same charges and same conformity
assessment procedures to import products from all
countries as for domestic products. All the related chargesare on cost-recovery basis.
6. Development and Application of Standards
and Conformity Assessment Procedures:
Existence of legal and/or administrative
underpinnings(or “reasonable measures” as
appropriate) to ensure ongoing compliancewith provisions of the agreement concerning,
in particular;
  (a)non-discrimination with respect to the
treatment of products;China applies same inspection standards and conformity
assessment procedures to import products from all
countries as for domestic products.
  (b)the prohibition of unnecessary obstacles
to international trade;According to the principles of WTO/TBT agreement, only
those entry-exit products concerning national security,human life and health, life and health of animals and
plants, and environment protection as well as fraudulent
practices are subject to the reasonable and necessary
statutory inspection and quarantine measures of China.
  (c)the consideration of appropriate
international standards, guides andrecommendations as a basis for standards;In the past several years, China has been following the
principle that the international standards, guidelines andrecommendations serve as basis of national technical
regulations and conformity assessment procedures.
  (d)non-discriminatory and cost-based fee
structure.China applies same charges and same conformity
assessment procedures to import products from all
countries as for domestic products. All the related charges
are on cost-recovery basis.WT/ACC/CHN/20
Page 22NOTIFICATIONS PURSUANT TO ARTICLE 5 OF
THE AGREEMENT ON TRADE-RELATED INVESTMENT MEASURES
THE PEOPLE'S REPUBLIC OF CHINA
June 12, 2000
Table I: Local Content Requirement
Measures
FormatLaw of the People’s
Republic of China on
Foreign Capital
Enterprises
Article 15Law of the People’s
Republic of China on
Chinese-Foreign Equity
Joint Ventures
Article 9Regulations for the
Implementation of the Law
of the People’s Republic of
China on Chinese-Foreign
Equity Joint Ventures
Article 57Automobile Industrial
Policy
Article 31, 42, 43, 44
1. The category in the illustrative
list under which the measure fallsLocal Content Requirement Local Content Requirement Local Content Requirement Local Content Requirement
2. Whether the Trim is applied by
the government of the Member
under discretionary authority or
mandatory legislationMandatory legislation Mandatory legislation Mandatory legislation Mandatory Legislation
3. The criteria for determining to
which enterprises it applies in
sufficient detail to enable thoseenterprises to be identifiedWholly foreign owned
enterprisesChinese-Foreign Equity Joint
VenturesChinese-Foreign Equity Joint
VenturesChinese-Foreign Equity Joint
Ventures and Contractual
Enterprises in the automobile
industry.
4. Whether the legislation requiresthe measure to be applied to new
enterprises or new investments of
existing enterprises.It applied. It applied. It applied. It applied.
5. Whether compliance with the
measure by the enterprise
is(a)mandatory or (b)necessary to
obtain an advantageEnforceable under domestic
lawEnforceable under domestic
lawEnforceable under domestic
lawIt is necessary to obtain an
advantage as preferential
tariffs on imports
6. Detail on the specific productsRaw and semi-processed
materials, fuels and other
materials.Raw and semi-processed
materials, fuels, auxiliary
equipment, etc.Required machinery,
equipment, raw materials,
fuel, parts, means of
transport and office
equipment, etc.Auto parts
7. The date of implementation Apr. 12, 1986 Apr. 4, 1990 Sep. 20, 1983 Feb. 19, 1994
8. Provision for its phasing-down
and/or eliminationUnder modification Under modification Under modification It’s under modification now.WT/ACC/CHN/20
Page 23Measures
FormatLaw of the People’s
Republic of China on
Foreign Capital
Enterprises
Article 15Law of the People’s
Republic of China on
Chinese-Foreign Equity
Joint Ventures
Article 9Regulations for the
Implementation of the Law
of the People’s Republic of
China on Chinese-Foreign
Equity Joint Ventures
Article 57Automobile Industrial
Policy
Article 31, 42, 43, 44
9. The domestic law, regulation or
administrative guideline under
which the TRIM is appliedLaw of the People’s Republic
of China on Foreign Capital
EnterprisesLaw of the People’s Republic
of China on Chinese-Foreign
Equity Join VenturesRegulations for the
Implementation of the Law
of the People’s Republic of
China on Chinese-Foreign
Equity Joint VenturesAutomobile Industry Policy
10. The level of government
applying the TRIMCentral government Central government Central government Central governmentWT/ACC/CHN/20
Page 24Table II: Foreign Exchan ge Balance Requirement
Measures
FormatProvisions of the State
Council for the
Encouragement for foreign
Investment
Article 2Rules for the
Implementation of the Law
of The People’s Republic of
China on Foreign-Capital
Enterprises
Article 3 (2), 56Rules for the
Implementation of the Law
of the People’s Republic of
China on Chinese-Foreign
Equity Joint Ventures
Article 75Automobile Industrial
Policy
Article 31(3)
1. The category in the illustrative
list under which the measure fallsForeign Exchange Balance
RequirementForeign Exchange Balance
RequirementForeign Exchange Balance
RequirementForeign Exchange Balance
Requirement
2. Whether the Trim is applied bythe government of the Member
under discretionary authority or
mandatory legislationMandatory Legislation Mandatory Legislation Mandatory Legislation Mandatory Legislation
3. The criteria for determining to
which enterprises it applies insufficient detail to enable those
enterprises to be identifiedForeign investment
enterprises whose products
are mainly for export, which
have a foreign exchange
surplus after deducting from
their total annual foreign
exchange revenues the
annual foreign exchange
expenditures incurred in
production and operation and
the foreign exchange needed
for the remittance abroad of
the profits earned by foreign
investors.Wholly foreign owned
enterprisesChinese-Foreign Equity Joint
VenturesChinese-Foreign Equity Joint
Ventures and Contractual
Enterprises in the automobile
industry.
4. Whether the legislation requiresthe measure to be applied to new
enterprises or new investments of
existing enterprises.It applied. It applied. It applied. It applied.
5. Whether compliance with the
measure by the enterprise
is(a)mandatory or (b)necessary toobtain an advantageTo obtain an advantage as
preferential policies on
income taxes.Mandatory under domestic
lawMandatory under domestic
lawMandatory under domestic
law
6. Detail on the specific products No specific products. No specific products No specific products Auto and auto parts
7. The date of implementation Oct. 11, 1986 Dec. 12, 1990 Sep. 20, 1983 Feb. 19, 1994WT/ACC/CHN/20
Page 25Measures
FormatProvisions of the State
Council for the
Encouragement for foreign
Investment
Article 2Rules for the
Implementation of the Law
of The People’s Republic of
China on Foreign-Capital
Enterprises
Article 3 (2), 56Rules for the
Implementation of the Law
of the People’s Republic of
China on Chinese-Foreign
Equity Joint Ventures
Article 75Automobile Industrial
Policy
Article 31(3)
8. Provision for its phasing-down
and/or eliminationUnder modification Under modification Under modification
9. The domestic law, regulation or
administrative guideline under
which the TRIM is appliedProvisions of the State
Council for the
Encouragement of Foreign
InvestmentRules for the Implementation
of the Law of The People’s
Republic of China on
Foreign-Capital EnterprisesRules for the Implementation
of the Law of the People’s
Republic of China on
Chinese-Foreign Equity Joint
VenturesAutomobile Industry Policy
10. The level of government
applying the TRIMCentral government Central government Central government Central governmentWT/ACC/CHN/20
Page 26
IMPLEMENTATION OF THE AGREEMENT ON
TRADE-RELATED ASPECTS OF IN TELLECTUAL PROPERTY RIGHTS
The People's Republic of China
June 12, 2000
PART 1
TRIPS AGREEMENT CHINA
General Obligations IP Agreements to which China acceded and effected
Article 2
Compliance with Articles 1
through 12 and Article 19
of the Paris Convention for
the Protection of Industrial
Property in respect of PartsII, III, and VI of the TRIPS
Agreement.Convention Establishing the World Intellectual Property Organization
since June 3, 1980.
Paris Convention for the Protection of Industrial Property since March 19,
1985.
Madrid Agreement Concerning the International Registration of Marks
since October 4,1989.
Berne Convention for the Protection of Literary and Artistic Works since
October 15,1992.
Universal Copyright Convention since October 30,1992.
Geneva Phonograms Convention for the Protection of Producers of
Phonograms against Unauthorized Duplication of Their Phonograms since
April 30,1993.
Patent Cooperation Treaty since January 1, 1994.Nice Agreement Concerning the International Classification of Goods and
Service for the Purpose of the Registration of Marks since August 5, 1994.
Budapest Treaty on the International Recognition of the Deposit of
Microorganisms for the purposes of Patent Procedure since July 1,1995.
Protocol Relating to the Madrid Agreement concerning the International
Registration of Marks since December 1, 1995.
Locarno Agreement Establishing an International Classification of
Industrial Designs since September 19, 1996.
Strasbourg Agreement Concerning the International Patent Classification
since June 19,1997.
International Convention for the Protection of New Plant Varieties since
April 23,1999
Domestic legislation on IP rights protection
Trademarks, service marks, collective marks, identifying marks and trade
names are protected by the Trademark Law that took effect on March 1,
1983, and other regulations or rules related.WT/ACC/CHN/20
Page 27
TRIPS AGREEMENT CHINA
Inventions-creations including patents, utility models and industrial
designs are protected by the Patent Law that took effect on April 1, 1985
Literary, artistic and scientific works including computer software are
protected by the Copyright Law that took effect on June 1, 1991.
Repression of unfair competition is governed by the Unfair Competition
Law that took effect on December 1, 1993.
Regulation on Custom Protection of Intellectual Property Rights was
promulgated on July 5,1995 and effective as of October 1,1995.
New plant varieties are protected by the Provisions on Protection of New
Plant Varieties that took effect on October 1, 1997.
At present no legislation on protection of indications of source or
appellations of origin except some administrative orders.
Article 3.
Requires members to
provide national treatment
to the other member
nationals.Patent Law
Article 18
Where any foreigner, foreign enterprise or other foreign organization
having no habitual residence or business office in China files an
application for a patent in China, the application sha1l be treated under this
Law in accordance with any agreement concluded between the country towhich the applicant belongs and China, or in accordance with any
international treaty to which both countries are party, or on the basis of the
principle of reciprocity.
Copyrights Law
Article 2
Works of Chinese citizens, legal persons or entities without legal
personality, whether published or not, shall enjoy copyright in accordance
with this Law. Works of foreigners first published in the territory of the
People's Republic of China shall enjoy copyright in accordance with thisLaw.
Any work of a foreigner published outside the territory of the People's
Republic of China which is eligible to enjoy copyright under an agreement
concluded between the country to which the foreigner belongs and China,
or under an international treaty* to which both countries are parties, shallbe protected in accordance with this Law.
(* Berne Convention etc.)
Trademark Law
Article 9
Any foreigner or foreign enterprise intending to apply for the registration
of a trademark in China shall file an application in accordance with anyagreement concluded between the People’s Republic of China and the
country to which the applicant belongs, or according to the international
treaty to which both countries are parties, or on the basis of the principle of
reciprocity.WT/ACC/CHN/20
Page 28
TRIPS AGREEMENT CHINA
Industrial Designs Citation to appropriate law
Art.25
Requirements for
Protection.
1. Members shall provide
for the protection of
independently created
industrial designs that
are new or original.Members may provide
that designs are not new
or original if they do not
significantly differ from
known designs orcombinations of known
design features.
Members may provide
that such protection shall
not extend to designs
dictated essentially by
technical or functionalconsiderations.
2. Each Member shal1
ensure that requirements
for securing protectionfor textile designs, in
particular in regard to
any cost, examination or
publication, do not
unreasonably impair theopportunity to seek and
obtain such protection.
Members shall be free to
meet this obligation
through industrial designlaw or through copyright
law.Patent Law:
Article 23.
Any design for which patent right may be granted must not be identical
with or similar to any design which, before the date of filing, has beenpublicly disclosed in publications in the country or abroad or has been
publicly used in the country.
Implementing Regulations of the Patent Law
Rule 2.
“Design” in the Patent Law means any new design of shapes, pattern,
color, or their combination, of a product, which creates an aesthetic feeling
and is fit for industrial application.
(Textile designs are included in the scope of protection provided in the
Patent Law and it’s Implementing Regulations.)
Article 26.3
Protection should last at
least 10 years.Patent Law
Article 45
The duration of patent right for inventions shall be twenty years, the
duration of patent right for utility models and patent right for designs shall
be ten years, counted from the date of filing.WT/ACC/CHN/20
Page 29
TRIPS AGREEMENT CHINA
Patent Citation to appropriate law
Article 27
Provide patents protection
for any inventions, whether
products or processes, in all
fields of technology,
provided that they are new,involve an inventive step
and are industrially
applicable. Exceptions are
permitted for diagnostic,
therapeutic and surgicalmethods, and for plants and
animals, except for
microorganisms and non-
biological and
microbiological processes.Exceptions are also
permitted for reasons of
order public or morality.Patent law
Article 2
In this Law, “Inventions-creations” mean Inventionsutility models and
designs.
Patent law
Article 22.1
Any invention or utility model for which patent right may be granted must
possess novelty, inventiveness and practical app1icability.
Patent law
Article 25
For any of the following, no patent right shall be granted:
(1) scientific discoveries;
(2) rules and methods for mental activities;
(3) methods for the diagnosis or for the treatment of diseases;(4) animal and plant varieties;
(5) substances obtained by means of nuclear transformation.
For processes used in producing products referred to in item (4) of the
preceding paragraph, patent right may be granted in accordance with the
provisions of this Law.
Patent law
Article 5
No patent right shall be granted for any invention-creation that is contrary
to laws of the State or social morality or that is detrimental to public
interest.
Article 28.1
A patent shall confer on its
owner the rights to preventthird parties from making,
using, offering for sale,
selling, or importing a
patented product, or from
using a patent process orusing, offering for sale,
selling or importing a
product obtained direct1y
by that process.Patent law
Article 11
1.After the grant of the patent right for an invention or utility model,
except as otherwise provided for in the law, no entity or individual may,
without the authorization of the patentee, make, use or sell the patented
product, or use the patented process and use or sell the product directly
obtained by the patented process, for production or business purposes.
3.After the grant of the patent right,  except as otherwise provided for
in the law, the patentee has the right to prevent any other person from
importing, without its or his authorization, the patented product, or the
product directly obtained by its or his patented process, for the uses
mentioned in the preceding two paragraphs.
The drafted amendment of the Patent Law will confer on patent
owners the right of “offering for sale”.WT/ACC/CHN/20
Page 30
TRIPS AGREEMENT CHINA
Article 28.2
Provide patent owner the
right of assign or transfer
by succession the patent
and to conclude licensing
contracts.Patent Law
Article 10
1.The right to apply for a patent and the patent right may be assigned.
Law of Succession (Article 3)
    Estate denotes the lawful property owned by a citizen personally at the
time of his death, which consists of:
(6) property rights pertaining to copyright and patent rights.
Article 29
Members shall require the
applicant to disclose the
invention clearly so that a
person skilled in the art can
carry it out, and may
require the app1icant toindicate the best mode and
information concerning
corresponding foreign
applications and grants.Patent Law
Article 26
Where an application for a patent for invention or utility model is filed, a
request, a description and its abstract, and claims shall be submitted.
……
The description shall set forth the invention or utility model in a manner
sufficiently clear and complete so as to enable a person ski11ed in there1evant field of techno1ogy to carry it out; where necessary, drawings are
required. The abstract shall state briefly the main technical points of the
invention or utility model.
Regulations of Patent Law
Rule l8
1.The description of an application for a patent for invention or uti1ity
model shall be presented in the following manner and order:
(8) describe in detail the best mode contemplated by the applicant for
carrying out the invention or utility model; this shall be done in terms ofexamples, where appropriate, and with reference to the drawings, if any.
Article 30
Ensure that exceptions to
exclusive patent rights do
not unreasonably conflict
with a normal exploitationof the patent and do not
unreasonably prejudice the
1egitimate interests of the
patent owner, taking
account of the legitimate
interests of third parties.Patent Law
Article 62
None of the following shall be deemed an infringement of the patent right:
    (l) Where, after the sale of a patented product that was made by the
patentee or with the authorization of the patentee, any other person uses orsells that product;
    (2) Where any person uses or sells a patented product not knowing that
it was made and sold without the authorization of the patentee;
    (3) Where, before the date of filing of the application for patent, any
person who has already made the identical product, used the identical
process, or made necessary preparations for its making or using, continues
to make or use it within the original scope only;    (4) Where any foreign means of transport which temporarily passes
through the territory, territorial waters or territorial airspace of China uses
the patent concerned, in accordance with any agreement concluded
between the country to which the foreign means of transport belongs and
China, or in accordance with any international treaty to which bothcountries are party, or on the basis of the principle of reciprocity, for its
own needs, in its devices and installations;
(5) Where any person uses the patent concerned solely for the purposes of
scientific research and experimentation.WT/ACC/CHN/20
Page 31
TRIPS AGREEMENT CHINA
Article 31
Compulsory licenses can be
issued only when
enumerated conditions are
met, including such things
as notice, remuneration,limitations on use and
transfer of the licenses, etc.Patent Law
Article 51
Where any entity which is qualified to exploit the invention or utility
model has made requests for authorization from the patentee of an
invention or utility model to exploit its or his patent on reasonable terms
and such efforts have not been successful within a reasonable period oftime, the Patent Office may, upon the application of that entity, grant a
compulsory license to exploit the patent for invention or utility model.
Article 52
Where a national emergency or any extraordinary state of affairs occurs, or
where the public interest so requires, the Patent Office may grant a
compulsory license to exploit the patent for invention or utility model.
Article 53
Where the invention or utility model for which the patent right was granted
is technically more advanced than another invention or utility model for
which a patent right has been granted earlier and the exploitation of the
later invention or utility model depends on the exploitation of the earlier
invention or utility model, the Patent Office may, upon the request of the
later patentee, grant a compulsory license to exploit the earlier invention or
utility model.
Where, according to the preceding paragraph, a compulsory license isgranted, the Patent Office may, upon the request of the earlier patentee,
also grant a compulsory license to exploit the later invention or utility
model.
Article 54
The entity or individual requesting, in accordance with the provisions of
this Law, a compulsory license for exploitation shall furnish proof that it
or he has not been able to conclude with the patentee a license contract for
exploitation on reasonable terms.
Article 55
The decision made by the Patent Office granting a compulsory license for
exploitation shall be registered and announced.
Article 56
Any entity or individual that is granted a compulsory license for
exploitation shall not have an exclusive right to exploit and shall not have
the right to authorize exploitation by any others.
Article 57
The entity or individual that is granted a compulsory license for
exploitation shall pay to the patentee a reasonable exploitation fee, the
amount of which shall be fixed by both parties in consultations' Where the
parties fail to reach an agreement, the Patent Office shall adjudicate.
Article 58
Where the patentee is not satisfied with the decision of the Patent Office
granting a compulsory license for exploitation or with the adjudicationWT/ACC/CHN/20
Page 32
TRIPS AGREEMENT CHINA
regarding the exploitation fee payable for exploitation, he or it may, within
three months from the receipt of the notification, institute legal
proceedings in the people s court.
Article 32
Provide an opportunity for
judicial review of any
decision to revoke or forfeita patent.Patent Law
Article 43
2. Where the applicant for a patent for invention, the patentee of an
invention or the Person who made the request for revocation of the patentright for invention is not satisfied with the decision of the Patent
Reexamination Board, he or it may, within three months from the date of
receipt of the notification, institute legal proceedings in the people’s court.
Article 49
2. Where any party is not satisfied with the decision of the Patent
Reexamination Board declaring the patent right for invention invalid or
upholding the patent right for invention, such party may, within three
months from receipt of the notification of the decision, institute legal
proceedings in the people's court.
Article 33
Provide the term of patent
at least 20 years from thefiling date.Patent Law
Article 45
The duration of patent right for inventions shall be twenty years, the
duration of patent right for utility models and patent right for designs shall
be ten years, counted from the date of filing.
Article 34
Shift the burden of proof in
patent infringement action
to the defendants in the
case that the product
obtained by the patented
process is new, or where itis a substantial 1ikelihood
that the identical product
was made by the process
and patent owner has been
unable through reasonableefforts to determine the
process actually used.Patent Law
Article 60
2. When any infringement dispute arises, if the patent for invention is a
process for the manufacture of a new product, any entity or individual
manufacturing the identical product shall furnish proof of the process used
in the manufacture of its or his product.
In the drafted amendment of the Patent Law, this provision will be
revised as “where any infringement dispute concerns a patented
process for the manufacture of a new product, any entity or individual
manufacturing the identical product shall prove that the process he
used is different from the patented process”.
Plant Varieties Remarks
Article 27
Members shall provide for
the protection of plant
varieties either by patents
or by an effective sui
generis  system or by any
combination thereof.Provisions on Protection of New Plant Varieties entered into force on
October 1, 1997.WT/ACC/CHN/20
Page 33
TRIPS AGREEMENT CHINA
Integrated-Circuits
Layout DesignsRemarks
Article 35, Article 36 and
Article 38
Require members to
provide protection for
layout designs of integrated
circuits.Regulations on this subject are being drafted.
                                                               (to be continued)
__________